Matthews International shareholders elect directors, approve plans

PITTSBURGH – Matthews International Corporation (NASDAQ:MATW), a manufacturing company with a market capitalization of $750 million and current trading price of $24.25, announced the results of its Annual Meeting of Shareholders held on February 20, 2025. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value calculations. The meeting saw the election of three directors and the approval of several key proposals.

Approximately 90.9% of eligible shares were represented at the meeting, ensuring a quorum for the proceedings. Shareholders re-elected Terry L. Dunlap, Alvaro Garcia-Tunon, and J. Michael Nauman as directors for a three-year term, serving until the 2028 Annual Meeting. Notable for investors, Matthews International has maintained dividend payments for 32 consecutive years and raised dividends for 27 straight years, demonstrating strong shareholder commitment.

The election results indicated a clear preference for the company’s nominees, with Barington Capital’s nominees receiving fewer votes. Dunlap led with over 16 million votes for, followed by Nauman and Garcia-Tunon.

Additionally, the shareholders approved the Second Amended and Restated 2017 Equity Incentive Plan with over 26 million votes in favor. This plan is designed to provide equity-based incentives to employees and directors.

The appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending September 30, 2025, was ratified with a significant majority of over 26 million votes for.

Furthermore, an advisory vote on the executive compensation of the company’s named executive officers passed with over 25 million votes in favor. This non-binding vote reflects shareholder support for the company’s executive compensation policies.

The outcomes of the Annual Meeting are detailed in Matthews International’s 8-K filing with the SEC, which provides the official record of the event. The company, headquartered in Pittsburgh, Pennsylvania, is known for its work in nonferrous foundries and manufacturing.

The decisions made at the Annual Meeting are expected to guide Matthews International’s corporate governance and strategic direction for the coming years.

In other recent news, Matthews International Corporation reported a decline in consolidated sales for fiscal year 2024, with Q4 sales falling to $447 million from $480 million in the same period last year. Despite this downturn, the company achieved its revised adjusted EBITDA guidance of $205 million for the year. Matthews International faced a significant net loss of $68.2 million in Q4, contrasting with the net income of $17.7 million reported in the previous year. The company reduced its debt by over $50 million during the quarter and projects fiscal 2025 adjusted EBITDA to be between $205-$215 million.

Meanwhile, Barington Capital Group, an activist investor, has called for changes in Matthews International’s leadership and strategy, citing concerns over underperformance and a stagnant share price. Barington proposes focusing on the Memorialization business and suggests divesting the SGK Brand Solutions segment, among other strategic reviews. Matthews International has retained J.P. Morgan to evaluate potential strategic alternatives as part of its commitment to long-term value creation. The company has also declared its 31st consecutive annual dividend increase and is engaged in ongoing discussions with Barington. The Board plans to present recommendations for the election of directors at the 2025 Annual Meeting.

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