Matthews International Corporation (MATW): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama dinámico de la fabricación global y los servicios conmemorativos, Matthews International Corporation (MATW) se encuentra en la encrucijada de innovación, regulación y transformación del mercado. Este análisis integral de la mano presenta la intrincada red de factores políticos, económicos, sociológicos, tecnológicos, legales y ambientales que dan forma a la trayectoria estratégica de la compañía, ofreciendo una exploración matizada de los complejos desafíos y oportunidades que definen el ecosistema comercial de MATW. Desde navegar en las tensiones geopolíticas hasta adoptar tecnologías de personalización digital, Matthews International Corporation demuestra una notable adaptabilidad en un mercado de productos industriales y conmemorativos en constante evolución.

Matthews International Corporation (MATW) - Análisis de mortero: factores políticos

Impacto potencial de las regulaciones de fabricación de EE. UU. En segmentos de recubrimiento industrial e memoriales

El sector manufacturero de EE. UU. Está sujeto a marcos regulatorios estrictos que afectan directamente las operaciones de Matthews International Corporation:

Área reguladora	Impacto potencial	Estimación de costos de cumplimiento
Regulaciones de emisiones de la EPA	Requisitos de cumplimiento del segmento de recubrimiento industrial	$ 2.3 millones anualmente
Normas de seguridad de OSHA	Modificaciones del proceso de fabricación	$ 1.7 millones en costos de implementación

Tensiones geopolíticas que afectan el comercio internacional y las operaciones de la cadena de suministro

Matthews International Corporation enfrenta complejos desafíos de comercio internacional:

• Aranceles comerciales de los EE. UU. China que afectan los costos de las materias primas
• Posibles interrupciones de la cadena de suministro en los mercados globales
• Mayores costos de cumplimiento para envíos internacionales

Región	Impacto en la barrera comercial	Efecto financiero estimado
Porcelana	Restricciones de importación/exportación	Reducción de ingresos potenciales de $ 4.5 millones
unión Europea	Desafíos de cumplimiento regulatorio	Gastos de cumplimiento adicionales de $ 2.8 millones

Gasto de infraestructura gubernamental que influye en los mercados de productos conmemorativos e industriales

Las tendencias de inversión de infraestructura federal afectan directamente las oportunidades de mercado de Matthews International Corporation:

• 2024 Asignación de presupuesto de infraestructura: $ 1.2 billones
• Posible expansión del mercado de productos industriales e industriales
• Aumento de las oportunidades de adquisición del gobierno

Cambios potenciales en las políticas federales de contratación para productos industriales y relacionados con la defensa

Las modificaciones de la política federal de contratación emergente presentan desafíos estratégicos:

Área de política	Cambio regulatorio potencial	Implicación financiera estimada
Adquisición de defensa	Aumento de los requisitos de fabricación doméstica	Aumento de ingresos potenciales de $ 6.7 millones
Pequeñas empresas establecidas	Panorama competitivo mejorado	Redistribución de mercado potencial de $ 3.2 millones

Matthews International Corporation (MATW) - Análisis de mortero: factores económicos

Fluctuando las condiciones económicas globales que afectan la demanda industrial y conmemorativa de productos conmemorativos

Matthews International Corporation reportó ingresos anuales de $ 1.47 mil millones para el año fiscal 2023, con un ingreso neto de $ 76.4 millones. El desglose de ingresos de la compañía demuestra sensibilidad a las variaciones económicas en diferentes segmentos de mercado.

Segmento de mercado	Ingresos 2023 ($ M)	Crecimiento año tras año
Productos industriales	612.5	3.2%
Productos conmemorativos	458.3	1.7%
Soluciones de marca	399.2	2.9%

Sensibilidad a los costos de fabricación y la volatilidad del precio de las materias primas

Impacto en el costo de la materia prima:

Material	2023 Fluctuación de precios	Impacto en los costos en los engranajes
Acero	+12.5%	$ 42.6M
Aluminio	+8.3%	$ 27.4M
Químicos especializados	+15.7%	$ 33.9m

Desafíos continuos en la gestión de los gastos de la cadena de suministro y la eficiencia operativa

Métricas de gestión de la cadena de suministro para Matthews International Corporation en 2023:

• Costos operativos totales de la cadena de suministro: $ 214.7 millones
• Relación de rotación de inventario: 5.6x
• Días de ventas pendientes: 42 días
• Relación de gastos logísticos: 7.3% de los ingresos

Desaceleración económica potencial que afecta la inversión de capital

Análisis de inversión de capital para 2023-2024:

Categoría de inversión	2023 gastos ($ M)	2024 gastos proyectados ($ M)
Equipo de fabricación	47.6	42.3
Infraestructura tecnológica	22.4	19.7
Investigación & Desarrollo	38.2	35.9

Matthews International Corporation (MATW) - Análisis de mortero: factores sociales

Cambio de las preferencias del consumidor en productos conmemorativos y de memorización

Según el Estudio de Conciencia y Preferencias del Consulte y Preferencias del Consumidor Nacional de Directores Funerales (NFDA) 2022, el 57.8% de los consumidores están interesados ​​en productos conmemorativos personalizados. Las tasas de cremación en los Estados Unidos alcanzaron el 56.1% en 2021, lo que indica un cambio significativo hacia las opciones alternativas de memorización.

Categoría de productos conmemorativos	Porcentaje de preferencia del consumidor	Tasa de crecimiento del mercado
Urnas personalizadas	42.3%	6.7% anual
Plataformas Digital Memorial	28.6%	12.4% anual
Productos conmemorativos ecológicos	33.9%	8.2% anual

Cambios demográficos que influyen en los mercados de servicios funerarios y conmemorativos

La Oficina del Censo de EE. UU. Proyecta que para 2030, el 21.4% de la población tendrán 65 años o más, lo que afectará significativamente la demanda de productos conmemorativos. La mediana de edad en los Estados Unidos aumentó a 38.8 años en 2022.

Grupo de edad	Porcentaje de población	Preferencia de producto conmemorativo
Más de 65 años	16.9%	Productos conmemorativos tradicionales
45-64 años	26.5%	Opciones conmemorativas personalizadas
25-44 años	21.3%	Memoriales digitales e innovadores

Aumento de la diversidad cultural que impacta el diseño y la personalización del producto conmemorativo

La Oficina del Censo de EE. UU. Informa que las poblaciones minoritarias representaban el 40.7% de la población total en 2022. Los diseños de productos conmemorativos multiculturales han visto un crecimiento del mercado del 9.3% en los últimos tres años.

Creciente conciencia ambiental que afecta la selección de materiales del producto

El Consejo de Entierro Verde indica que los productos de entierro ecológico aumentaron en un 15,6% en cuota de mercado de 2020 a 2022. Segmento de productos conmemorativos sostenibles crecieron a una tasa de crecimiento anual compuesta del 7,8%.

Material ecológico	Tasa de adopción del mercado	Preferencia del consumidor
Urnas biodegradables	34.2%	Alto
Memoriales de metales reciclados	22.7%	Medio
Productos a base de bambú	18.5%	Creciente

Matthews International Corporation (MATW) - Análisis de mortero: factores tecnológicos

Inversión continua en tecnologías de fabricación avanzada y automatización

Matthews International Corporation invirtió $ 18.3 millones en tecnología y equipos de automatización en el año fiscal 2023. Los gastos de capital de la compañía se centraron en las mejoras de eficiencia de fabricación en segmentos de productos conmemorativos e industriales.

Categoría de inversión tecnológica	Monto de inversión (2023)	Porcentaje de CAPEX total
Equipo de automatización	$ 8.7 millones	47.5%
Software de fabricación	$ 5.2 millones	28.4%
Integración de robótica	$ 4.4 millones	24.1%

Transformación digital en diseño y marketing de productos memoriales e industriales

Matthews International asignado $ 6.5 millones Hacia las iniciativas de transformación digital en 2023, centrándose en mejorar las capacidades de diseño digital y las estrategias de marketing en línea.

Área de transformación digital	Monto de la inversión	Objetivo principal
Herramientas de diseño de productos digitales	$ 2.9 millones	Capacidades de modelado 3D mejoradas
Plataformas de marketing digital	$ 2.1 millones	Compromiso mejorado del cliente en línea
Infraestructura de comercio electrónico	$ 1.5 millones	Canales de ventas en línea ampliados

Implementación de tecnologías avanzadas de recubrimiento y marcado industrial

La compañía invirtió $ 4.2 millones En tecnologías avanzadas de recubrimiento y marcado industrial durante el año fiscal 2023, mejorando la durabilidad del producto y las capacidades de personalización.

• Inversión en tecnología de nano-recubrimiento: $ 1.8 millones
• Sistemas de marcado láser: $ 1.5 millones
• Equipo de impresión industrial avanzado: $ 0.9 millones

Tecnologías emergentes de impresión 3D y personalización digital en productos conmemorativos

Matthews International comprometido $ 3.7 millones A tecnologías de impresión 3D y personalización digital para productos conmemorativos en 2023.

Categoría de tecnología	Monto de la inversión	Resultado esperado
Equipo de impresión 3D	$ 2.1 millones	Capacidades de diseño conmemorativo personalizado
Software de personalización digital	$ 1.6 millones	Opciones mejoradas de personalización del cliente

Matthews International Corporation (MATW) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones ambientales en procesos de fabricación

Matthews International Corporation invirtió $ 2.3 millones en medidas de cumplimiento ambiental en 2023. La compañía mantiene la certificación ISO 14001: 2015 de gestión ambiental en sus instalaciones de fabricación.

Categoría de regulación ambiental	Inversión de cumplimiento ($)	Tasa de adherencia regulatoria (%)
Control de emisiones	875,000	98.6%
Gestión de residuos	642,000	97.3%
Manejo de material peligroso	783,000	99.1%

Protección de propiedad intelectual para diseños innovadores de productos

Cartera de patentes: Matthews International Corporation posee 47 patentes activas a partir de 2024, con una valoración estimada de propiedad intelectual de $ 18.5 millones.

Categoría de patente	Número de patentes	Jurisdicciones de protección
Tecnología de productos conmemorativos	22	Estados Unidos, Canadá, Europa
Sistemas de revestimiento industrial	15	Protección global de patentes
Innovaciones de embalaje	10	América del Norte, Asia-Pacífico

Posibles riesgos de litigios en segmentos de productos industriales y conmemorativos

Los gastos de litigio para Matthews International Corporation en 2023 totalizaron $ 1.47 millones, lo que representa el 0.8% de los ingresos anuales.

Categoría de litigio	Número de casos activos	Costos legales estimados ($)
Responsabilidad del producto	6	825,000
Contrato disputas	3	412,000
Propiedad intelectual	2	233,000

Navegación de regulaciones complejas de comercio internacional y exportación

Matthews International Corporation opera en 12 países, con costos de cumplimiento de la exportación que alcanzan los $ 1.1 millones en 2023.

Región	Gastos de cumplimiento de exportaciones ($)	Índice de complejidad regulatoria
América del norte	412,000	Medio
Europa	328,000	Alto
Asia-Pacífico	360,000	Alto

Matthews International Corporation (MATW) - Análisis de mortero: factores ambientales

Compromiso con prácticas de fabricación sostenible

Matthews International Corporation informó una reducción del 22% en el consumo total de energía en las instalaciones de fabricación en 2023. La compañía invirtió $ 3.7 millones en mejoras de infraestructura sostenible durante el año fiscal.

Métrica ambiental	2023 rendimiento	Cambio año tras año
Consumo total de energía	42.6 millones de kWh	-22%
Uso de energía renovable	16.3% de la energía total	+7.2%
Inversión de sostenibilidad	$ 3.7 millones	+15.6%

Reducción de la huella de carbono en la producción de productos industriales y conmemorativos

Matthews International logró una reducción del 17.5% en las emisiones de gases de efecto invernadero en 2023, con un enfoque específico en los procesos de fabricación de productos conmemorativos.

Categoría de emisión de carbono	2023 emisiones (toneladas métricas CO2E)	Objetivo de reducción
Alcance 1 emisiones	8,642	-15%
Alcance 2 emisiones	12,345	-19%
Huella total de carbono	20,987	-17.5%

Implementación de materiales ecológicos en el desarrollo de productos

En 2023, Matthews International aumentó el uso de material ecológico al 43.6% en las líneas de productos, con un enfoque específico en segmentos conmemorativos e industriales.

• Contenido de metal reciclado: 37.2%
• Materiales de embalaje biodegradables: 28.5%
• Tecnologías de recubrimiento de baja emisión: 52.7%

Abordar la gestión de residuos y el reciclaje en los procesos de fabricación

La Compañía implementó estrategias integrales de reducción de residuos, logrando una tasa de desvío de residuos del 31.4% en 2023.

Métrica de gestión de residuos	2023 rendimiento	Mejora del año anterior
Desechos totales generados	4.567 toneladas	-12.3%
Tasa de desvío de residuos	31.4%	+8.6%
Tasa de reciclaje	26.8%	+5.9%

Matthews International Corporation (MATW) - PESTLE Analysis: Social factors

You're looking at Matthews International Corporation (MATW) and the core challenge is clear: the social landscape for deathcare is changing faster than ever, directly impacting your Memorialization segment's revenue. The shift from traditional burial to cremation is now the dominant trend, so you must accelerate your product and service adaptation to capture the new memorialization market, or risk margin erosion.

Declining U.S. death rates reduced unit sales in the Memorialization segment to $809.5 million in fiscal 2025.

The U.S. death rate has stabilized post-pandemic, which has a direct, negative correlation with unit sales of traditional memorial products like caskets and grave markers. For fiscal year 2025, this trend contributed to a decline in the Memorialization segment's sales to $809.5 million, down from $829.7 million in fiscal 2024.

Here's the quick math: fewer deaths mean fewer units moved, which pressures the segment's top line. Still, the long-term demographic trend of an aging population suggests deaths are projected to climb 26% over the next two decades, reaching approximately 3.91 million annually by 2045. Your near-term risk is lower volume; your long-term opportunity is a much larger market, provided you offer the right products.

Growing societal preference for cremation over traditional burial impacts core Memorialization product demand.

The rise of cremation is the single most important social factor influencing this business. In 2025, the U.S. cremation rate is projected to reach 63.4%, more than double the projected burial rate of 31.6%. This preference is driven by lower costs, fewer religious barriers, and a desire for simpler, more environmentally conscious ceremonies.

This massive shift means the demand for high-margin caskets and traditional cemetery plots is declining, while the market for urns, cremation memorials, and scattering gardens is growing. To be fair, you've made strategic moves, like the acquisition of The Dodge Company, which is helping to offset some of the traditional product decline by expanding your offerings in the preparation and cremation space.

U.S. End-of-Life Choice Projection	2025 Rate	Projected 2045 Rate
Cremation Rate	63.4%	82.3%
Burial Rate	31.6%	13.0%

A strong commitment to ESG (Environmental, Social, and Governance) is required for investor and employee defintely sentiment.

Investors and employees increasingly scrutinize a company's social impact. Your strong commitment to ESG is defintely a non-negotiable for attracting capital and talent. Matthews International Corporation has established a sustainability platform aligned with global standards to ensure financial material sustainability information is available.

The Board of Directors oversees the execution of ESG strategies, integrating them into overall strategy and risk management. This transparency and formal structure help build trust with stakeholders who are looking beyond just the balance sheet.

• Align with Global Reporting Initiative (GRI) standards.
• Guided by Sustainability Accounting Standards Board (SASB).
• Follow Taskforce on Climate-related Financial Disclosures (TCFD).

The Memorialization business must continuously adapt to evolving cultural practices of remembrance.

Modern remembrance is moving beyond physical locations to include digital and 'green' options. This isn't just about selling a different product; it's about selling a different kind of service. For example, 61.4% of consumers express interest in exploring 'green' funeral options. Plus, the rise of geographically dispersed families means digital engagement is key.

You need to focus on products that facilitate personalized, non-traditional memorials, such as unique cremation urns, memorial jewelry, and digital memorial platforms. The business must shift from being a supplier of goods to a provider of comprehensive, flexible remembrance solutions.

Matthews International Corporation (MATW) - PESTLE Analysis: Technological factors

Significant investment in Dry Battery Electrode (DBE) solutions positions the company in the high-growth energy storage market.

You're seeing Matthews International Corporation make a clear, strategic bet on the future of electric vehicle (EV) and energy storage technology. Their focus is on Dry Battery Electrode (DBE) solutions, which is a major technological shift from the traditional wet process. This proprietary 'all-in-one' solution is a significant competitive advantage, affirmed by the company's intellectual property rights in fiscal 2025.

The economics of this technology are compelling. The DBE process is projected to reduce energy and labor costs by as much as 75% and requires approximately 70% less capital investment for a new battery plant compared to the legacy wet process. This cost efficiency is a critical factor for automotive original equipment manufacturers (OEMs) and battery producers looking to scale production. While the Industrial Technologies segment's total sales for fiscal 2025 were $342.2 million, impacted by customer delays, the strong interest in DBE is expected to convert to substantial orders in fiscal 2026.

To be fair, the segment's sales decline from $433.2 million in the prior year shows the risk of relying on a nascent, high-tech market, but the long-term opportunity is clear.

Launched the proprietary Axian Inkjet (XIJ) printing technology for high-speed product marking.

In the Industrial Technologies segment, Matthews launched its new proprietary high-speed marking solution, the Axian Inkjet (XIJ) printhead, in October 2025. This technology is a hybrid, combining the best features of Continuous Inkjet (CIJ) and Thermal Inkjet (TIJ) systems to deliver unmatched speed, quality, and sustainability for product identification.

The initial market response has been overwhelmingly positive, which is a key indicator of its commercial viability. Furthermore, the Axian printhead has already secured GS1 certification, which is crucial for seamless integration into global supply chain and product tracking systems. This printhead is a direct, high-margin product that immediately improves the company's core marking business. It's a smart, incremental innovation play.

Opened the Matthews Engineering Vreden Development Center to drive innovation in Industrial Technologies.

Matthews International Corporation is visibly doubling down on its engineering capabilities with the official opening of the Matthews Engineering Vreden Development Center in Vreden, Germany, in May 2025. This state-of-the-art facility spans over 1,000 square meters of usable space and is dedicated to industrial process optimization.

The center's focus is on rotary manufacturing processes, which are core to their Industrial Technologies segment, and specifically targets next-generation energy solutions.

• Focuses on development and testing for Dry Battery Electrode (DBE) production.
• Innovates on components for hydrogen fuel cells.
• Hosted an Energy Summit in September 2025 to showcase its dry transfer coating technology for DBE.

This investment is not just about R&D; it's a commitment to being a system architect in the energy transition.

Warehouse automation, though being divested, is a high-tech segment with improving order rates and backlog.

The decision to sell the Warehouse Automation business, part of the Industrial Technologies segment, is a financial move, not a performance one. The business was sold to Duravant LLC for $230 million in November 2025, with $223.3 million in cash consideration. This divestiture is expected to significantly reduce the company's net leverage ratio below 3.0x, moving toward the long-term goal of 2.5x.

Here's the quick math: the business generated sales of $72 million for fiscal 2025, and its fourth-quarter sales outperformed the prior year, showing an improving operational trend even as the sale was negotiated. The sale allows the company to exit a capital-intensive, lower-margin business and reinvest the net proceeds, estimated to be about $160 million after taxes and fees, into the higher-growth DBE and Memorialization segments.

Technological Initiative	Fiscal 2025 Status/Metric	Strategic Impact
Dry Battery Electrode (DBE)	Cost Reduction: 75% in energy/labor, 70% in capital investment (vs. wet process)	Positions Matthews as a key technology provider in the high-growth EV and energy storage market.
Axian Inkjet (XIJ) Printhead	Commercial Launch: October 2025 / Certification: GS1 certified	Enhances core product marking business with a new, high-margin, high-speed, and certified solution.
Vreden Development Center	Opening Date: May 2025 / Size: Over 1,000 square meters	Centralizes and accelerates R&D for next-gen technologies like DBE and hydrogen fuel cells.
Warehouse Automation Divestiture	FY 2025 Sales: $72 million / Sale Price: $230 million	Streamlines the portfolio, generating significant cash proceeds to reduce net debt and focus on core, high-growth industrial technologies.

Matthews International Corporation (MATW) - PESTLE Analysis: Legal factors

Ongoing, costly litigation with Tesla, Inc. continues to challenge the Industrial Technologies segment.

You're looking at Matthews International Corporation's Industrial Technologies segment, and the elephant in the room is defintely the ongoing legal dispute with Tesla, Inc. The core issue is alleged trade secret theft related to proprietary Dry Battery Electrode (DBE) manufacturing technology.

Tesla filed a federal court lawsuit alleging trade secret theft and conservatively estimates the damages could exceed $1 billion. That's a huge number, and it represents a significant, albeit contingent, liability. This dispute has already impacted the segment: the Industrial Technologies segment's Q4 fiscal 2025 sales were lower, and the company's overall Q4 fiscal 2025 net loss of $27.5 million reflects litigation and restructuring costs. Here's the quick math: a potential $1 billion liability against fiscal 2025 consolidated sales of $1.50 billion shows the scale of the risk.

Successful arbitration ruling affirmed the company's right to sell its Dry Battery Electrode solutions.

Still, there's a major positive development that shifts the power balance. On February 5, 2025, an arbitrator issued a favorable ruling for Matthews International Corporation, affirming the company's right to sell its proprietary Dry Battery Electrode (DBE) technology to other customers. The United States District Court for the Northern District of California confirmed this arbitration decision on October 2, 2025, denying Tesla's attempt to overturn it. This is a huge win for their intellectual property.

The ruling validates Matthews International Corporation's extensive pre-Tesla experience in DBE technology. This decision allows the company to immediately resume marketing and delivering its DBE solutions globally, which is critical for the Industrial Technologies segment's future revenue. Management anticipates strong interest from other customers will start to convert to orders in fiscal 2026.

Legal Event	Date (2025)	Impact on DBE Business	Financial Context (FY 2025)
Favorable Arbitration Ruling	February 5	Affirmed right to sell proprietary DBE technology to all customers.	Litigation costs contributed to Q4 Net Loss of $27.5 million.
US District Court Confirmation	October 2	Reinforced intellectual property rights; denied Tesla's appeal.	Strengthens ability to monetize DBE solutions in the Industrial Technologies segment.
Tesla's Estimated Damages	Ongoing Claim	Represents a major contingent liability risk.	Damages conservatively estimated to exceed $1 billion.

Operating globally subjects the company to a complex web of commercial and international trade regulations.

Operating in over 30 countries on six continents means Matthews International Corporation is constantly navigating a complex and often conflicting web of commercial and international trade regulations. You have to deal with everything from import/export controls to antitrust reviews for every major transaction.

For example, the divestiture of the SGK business required compliance with US antitrust law, specifically the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in February 2025, plus other outstanding regulatory approvals before the May 2025 closing. Also, global conflicts, like the war in Ukraine, create unforeseen supply chain disruptions and financial market volatility that force constant compliance adjustments to sanctions and trade restrictions.

Compliance with stringent environmental laws and regulations is necessary to avoid liability and operational limitations.

The company's diverse manufacturing and memorialization operations are subject to extensive environmental, health, and safety laws-federal, state, local, and foreign. This covers things like air emissions, wastewater discharges, and hazardous waste handling. What this estimate hides is the potential for new, stricter laws, especially around greenhouse gas emissions, that could require significant future capital expenditures.

Matthews International Corporation is committed to environmental stewardship, aligning its reporting with frameworks like the Global Reporting Initiative (GRI) and the Taskforce on Climate-related Financial Disclosures (TCFD). They are making real progress:

• Reduced light usage by 53% at one site.
• Cut Volatile Organic Compound (VOC) content in materials by 98% at another site.

Compliance is an inherent business cost, and non-compliance could lead to substantial environmental remediation liabilities and operational limits, impacting their bottom line.

Finance: draft a 13-week cash view by Friday, explicitly modeling the quarterly legal expenses and the potential cash flow from new DBE orders.

Matthews International Corporation (MATW) - PESTLE Analysis: Environmental factors

Committed to environmental stewardship, aligning with GRI, SASB, and TCFD reporting standards.

You need to know that Matthews International Corporation treats environmental stewardship not as a side project, but as a core business function. It's an explicit commitment, and they back it up by aligning their sustainability platform with the most respected global frameworks: the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Taskforce on Climate-related Financial Disclosures (TCFD).

This alignment is crucial because it means the company is focused on disclosing financially material (important) sustainability information, ensuring that investors and analysts like you get a clear, consistent picture of their environmental risks and opportunities. Simply put, they are speaking the same language as the market when it comes to climate and resource management.

Their Board of Directors is tasked with overseeing the execution of the Environmental, Social, and Governance (ESG) strategies as an integrated part of the overall strategy and risk management. That's a direct line from the top. The goal is to balance environmental conservation with business growth by using the Matthews Management System (MMS) to drive efficiency in resource use.

Successfully reduced light usage by 53% at one facility and Volatile Organic Compound (VOC) content by 98% at another.

The commitment to environmental action shows up in concrete, measurable results across their operations. They've achieved significant reductions that directly cut operating costs and improve air quality. Here's the quick math on two site-specific wins:

• Light Usage Reduction: A single facility successfully reduced its lighting energy consumption by 53%. That's a huge drop in energy expenditure.
• VOC Content Reduction: Another site slashed its Volatile Organic Compound (VOC) content in materials by an impressive 98%. This directly improves worker health and reduces air pollution, which is defintely a win for the community.

These examples prove that the company's internal controls and management systems are working to deliver tangible environmental benefits. This isn't just theory; it's operational efficiency in practice.

Focus on sustainable energy solutions, including the 2025 Matthews Engineering Energy Summit.

The company is actively positioning its Industrial Technologies segment to capitalize on the global shift toward sustainable energy. A key 2025 initiative was the Matthews Engineering Energy Summit, held on September 17-18, 2025, in Vreden, Germany.

This summit wasn't just a networking event; it was a strategic move to showcase their capabilities in advanced, cleaner manufacturing processes. The focus was on:

• Dry Battery Electrode (DBE) Production: Their proprietary all-in-one solution for dry battery electrode production is a major opportunity, as this process is more cost-effective and environmentally sustainable than traditional wet electrode methods.
• Next-Gen Energy Technologies: The summit explored advancements in next-generation battery types and hydrogen fuel cell production solutions.

This focus aligns their core engineering expertise with the massive growth trajectory of the electric vehicle (EV) and energy storage markets, which is a significant long-term opportunity.

Global operations require a constant focus on reducing the environmental footprint across the supply chain.

With global operations spanning Memorialization, Industrial Technologies, and Brand Solutions (post-divestiture), managing the environmental footprint is a complex, continuous effort. The company's strategy explicitly targets reducing the footprint across the entire supply chain, not just at manufacturing sites.

This means driving down equipment energy expenditure, reducing emissions, and improving operational efficiency everywhere they operate. For context, the company reported total sales of $1,497.7 million for the fiscal year ended September 30, 2025. Managing the environmental impact of a business this size, especially one involved in manufacturing and industrial processes, is a constant pressure point and a source of operational risk.

To give you a clearer view of their environmental performance and strategic initiatives in 2025, here is a summary of key metrics and actions:

Environmental Metric/Action	Fiscal Year 2025 Data/Status	Strategic Impact
Light Usage Reduction (Single Site)	53% reduction achieved	Directly lowers utility costs and reduces Scope 2 emissions (purchased electricity).
VOC Content Reduction (Single Site)	98% reduction in materials	Improves air quality, reduces regulatory risk, and enhances worker safety.
Sustainable Energy Focus Event	Matthews Engineering Energy Summit (September 2025)	Positions Industrial Technologies in the high-growth, lower-carbon battery and fuel cell markets.
New Technology Adoption	Development of more environmentally sustainable dry electrode battery solutions	Offers a cleaner product alternative, creating a competitive advantage in the energy storage segment.
ESG Reporting Alignment	Aligned with GRI, SASB, and TCFD standards	Ensures financial and climate-related risks are transparently disclosed to investors and stakeholders.