Matthews International Corporation (MATW): Business Model Canvas [Dec-2025 Updated]

You're digging into how Matthews International Corporation (MATW) is reshaping its core business, and honestly, it's a fascinating pivot away from Brand Solutions toward Memorialization and Industrial Tech. After years of balancing different segments, the company is clearly doubling down, evidenced by strategic moves like the recent $160 million cash infusion from divesting Warehouse Automation. With Memorialization still driving significant revenue at $809.5 million in fiscal year 2025, and a clear focus on proprietary assets like their dry battery electrode IP, understanding their new engine-from key partnerships to a cost structure targeting $50 million in annual savings-is crucial for valuing the 'new' MATW, which posted $1.50 billion in consolidated sales. This canvas breaks down exactly where their money is coming from and what resources they are banking on for the next chapter; read on to see the blueprint.

Matthews International Corporation (MATW) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Matthews International Corporation solidified in 2025 to reshape its business structure and drive growth in key areas. These aren't just casual agreements; they are strategic equity stakes and technology integrations that directly impact the financial reporting.

Equity Ownership in Propelis

Matthews International Corporation contributed most of its SGK Brand Solutions business to a newly-formed entity, Propelis, on May 1, 2025, in exchange for a 40% ownership interest in common equity and other consideration. This move shifted the Brand Solutions segment to focus on cylinders and the equity-method investment in Propelis. The initial recognition of this investment totaled $263,000, broken down into $213,000 equity-method and $50,000 preferred equity. Propelis is projected to have initial annual adjusted EBITDA of about $100 million. Matthews targets $60 million in total synergies from this partnership, aiming for a run rate of $10 million by the end of 2025 and $40 million by the end of calendar '26. For the fiscal 2025 third quarter (May and June 2025), Propelis' preliminary adjusted EBITDA estimate was $16.8 million, meaning Matthews' 40% share was estimated at $6.7 million.

Here's a look at the initial investment structure:

The full-year fiscal 2025 guidance for adjusted EBITDA of at least $180 million includes the estimated 40% share of Propelis' adjusted EBITDA from May 1, 2025, through September 30, 2025.

Strategic Suppliers for Memorialization Raw Materials

The Memorialization segment, which accounted for $809,514,000 in sales for fiscal 2025, relies on a supply chain for its core products. This segment includes bronze and granite memorials, as well as caskets.

• Bronze and granite memorials supply chain.
• Casket raw material sourcing.
• Cremation-related product inputs.

Technology Alliances for Industrial Automation

Matthews International Corporation established a global commercial partnership with Mobile Industrial Robots (MiR), a Teradyne Robotics company, in February 2025. This alliance integrates MiR's autonomous mobile robots (AMRs) with Matthews' Warehouse Execution System (WES) software and picking systems. The collaboration is positioned to benefit from the projected 30% CAGR in the AGV/AMR market through 2028. Matthews' Warehouse Automation solutions are currently deployed in over 2,000 manufacturing and distribution centers globally.

Integration of Acquired Companies

Matthews International integrated The Dodge Company into the Memorialization segment in May 2025. The purchase price for The Dodge Company was $55,624 (net of cash acquired). Prior to the acquisition, annual sales for The Dodge Company were approximately $43,000. The acquisition contributed to higher Memorialization segment adjusted EBITDA of $42.8 million for the fiscal 2025 third quarter.

Key acquisition metrics include:

The company also announced the acquisition of B. Heynck GmbH in 2025.

Matthews International Corporation (MATW) - Canvas Business Model: Key Activities

You're looking at the core actions Matthews International Corporation (MATW) is taking to reshape its business, focusing heavily on portfolio management and high-growth technology areas as of late 2025. The company is actively shedding non-core assets while pushing forward with specialized manufacturing capabilities.

Manufacturing and distributing memorial products globally.

The Memorialization segment remains a foundational part of Matthews International Corporation's operations, contributing over half of the total revenue base for fiscal year 2025. This activity involves the manufacturing and distribution of cemetery products, markers, and caskets, bolstered by recent strategic additions.

Key financial metrics for this activity in fiscal year 2025:

The growth in the fourth quarter of fiscal 2025, which reached $209.6 million, reflects the benefit of the recent acquisition of The Dodge Company, which closed in May 2025 for $57 million. Management anticipates the Dodge acquisition will eventually add around $12 million in annual EBITDA to this segment. Still, overall segment revenue for the full fiscal year 2025 was $809.5 million, down slightly from $829.7 million in fiscal 2024.

Developing proprietary dry battery electrode (DBE) production technology.

Matthews International Corporation is heavily engaged in commercializing its proprietary Dry Battery Electrode (DBE) technology within the Industrial Technologies segment. This activity is supported by a favorable arbitration ruling that affirmed the company's right to market these solutions to customers beyond Tesla, Inc.

The market response has been strong, leading to significant quoting activity:

• Customer quotes for DBE solutions have exceeded $100 million since mid-February 2025.
• The company launched the new Axian printhead in October 2025, targeting an addressable market of approximately $2 billion.

For the full fiscal year 2025, the Industrial Technologies segment generated sales of $342.2 million. While Q4 2025 sales for this segment were lower year-over-year due to ongoing litigation challenges, management anticipates that strong customer interest in DBE solutions will start converting to orders in fiscal 2026.

Executing strategic portfolio divestitures and debt reduction.

A major focus has been simplifying the corporate structure through divestitures, with proceeds primarily directed toward deleveraging the balance sheet. The company executed the sale of its Warehouse Automation unit to Duravant LLC for $230 million, expecting $160 million of that to be applied to debt reduction after taxes and fees.

Debt reduction milestones achieved in the latter half of fiscal 2025 include:

• Debt reduction of $120 million in the third quarter of fiscal 2025.
• Further debt reduction of $66 million in the fourth quarter of fiscal 2025.

As of September 30, 2025, outstanding debt stood at $711 million, with net debt at $678 million, resulting in a net leverage ratio of 3.6. The company also realized year-over-year corporate cost reductions of $8.5 million, with ongoing cost reduction programs targeting annual savings exceeding $50 million.

Providing brand creative and packaging solutions via Propelis.

This activity is now primarily managed through Matthews International Corporation's 40% equity stake in Propelis, the joint venture formed from the May 1, 2025, divestiture of the majority of the SGK business. The upfront consideration for the SGK transaction included $250 million in cash and a $50 million preferred equity investment.

Propelis is outperforming initial expectations; its current estimated EBITDA run rate is significantly higher than the $100 million assumed at the deal closing. For the fourth quarter of fiscal 2025 (July 1 through September 30, 2025), Propelis' preliminary adjusted EBITDA estimate was $32.2 million, representing $12.9 million in recognized income for Matthews' 40% interest. The total targeted synergies for the Propelis arrangement are $60 million, with a run rate expected to reach $40 million by the end of calendar 2026.

The remaining Brand Solutions segment sales for the full fiscal year 2025 were $345.9 million, which now centers on the cylinders business plus the equity-method income from Propelis.

Matthews International Corporation (MATW) - Canvas Business Model: Key Resources

You're looking at the core assets Matthews International Corporation relies on to run its business as of late 2025. These aren't just line items; they are the hard-won advantages that underpin their operations across Industrial Technologies and Memorialization.

The intellectual property surrounding the proprietary all-in-one dry battery electrode technology is a major asset. This technology, which streamlines lithium-ion battery production and cuts costs, is validated by a favorable arbitration ruling and subsequent court decisions affirming Matthews International Corporation's right to sell its solutions globally, despite legal challenges from Tesla, Inc.. Matthews International Corporation holds US patent number 12,136,727 related to this work.

Operationally, the company maintains a significant global manufacturing and distribution footprint. Matthews International Corporation has over 5,400 employees in 19 countries on four continents committed to service delivery. This physical reach helps support their global customer base across their specialized segments.

The financial strength derived from the Memorialization segment is critical, especially given the strategic portfolio shifts, like the SGK divestiture. This segment is the bedrock supporting shareholder returns, evidenced by the company announcing its 32nd consecutive quarterly dividend increase, which management explicitly cited as being supported by the strong cash flow from Memorialization.

To give you a clearer picture of the scale and segment contribution leading into late 2025, here are some key financial markers:

The Memorialization segment's revenue for the full fiscal year 2025 was $809.5 million, compared to $829.7 million in fiscal 2024, representing a drop of about 2.5%. However, the fourth quarter of fiscal 2025 showed segment revenues of $209.6 million, a growth of 6.5% over the prior year's fourth quarter, helped by the Dodge Company acquisition.

The company's overall financial performance for the fiscal year ended September 30, 2025, resulted in consolidated sales of $1.50 billion. This figure is slightly different from the reported $1.497 billion total revenue for the same period.

You should also note the specific operational assets that feed into the Industrial Technologies segment, which includes:

• Proprietary dry battery electrode (DBE) technology IP.
• Global commercial partnership with Mobile Industrial Robots (MiR) for warehouse automation integration.
• Design, manufacturing, and service capabilities for high-tech custom energy storage solutions.
• Intellectual property rights validated by a US patent number 12,136,727.

Finance: draft 13-week cash view by Friday.

Matthews International Corporation (MATW) - Canvas Business Model: Value Propositions

You're looking at the core offerings Matthews International Corporation delivered in Fiscal Year 2025, which ended September 30, 2025. The company has been actively reshaping its portfolio, which is reflected in these value streams.

Comprehensive, high-quality memorialization products and services.

This segment, which includes Aurora Casket, Matthews cremation products, and a complete line of cemetery products and markers, is the largest revenue contributor. For the full Fiscal Year 2025, this segment generated revenues of $809,514,000, a slight decrease from the $829.7 million reported in Fiscal Year 2024. However, the fourth quarter of 2025 showed strength, with Memorialization segment Revenues reaching $209.6 million compared to $196.8 million in the fourth quarter of Fiscal Year 2024.

The value here is in providing products that help families move from grief to remembrance. This includes:

• Bronze memorials and caskets.
• Cremation and incineration equipment.
• Cemetery products and markers.

Precision industrial marking and product identification systems.

The Industrial Technologies segment delivers precision technologies and intelligent processes for product identification. The revenue for this segment in Fiscal Year 2025 was $342,229,000. A key offering in this area is the Product Identification business, which is launching the Axiom printhead chip product, targeting an addressable market of approximately $2 billion.

The company's overall sales distribution for FY2025 shows where these industrial and other solutions are being delivered:

Cutting-edge, efficient dry battery electrode manufacturing solutions.

Within Industrial Technologies, the dry battery electrode (DBE) solutions business has seen very strong customer interest following the resolution of legal proceedings. Since early February 2025, the company has issued customer quotes exceeding $100 million for its DBE equipment across South Korea, Europe, and North America.

Integrated global brand creative and packaging expertise (Propelis).

This value proposition is delivered through Matthews International Corporation's significant investment in Propelis, a brand solutions business formed from the SGK transaction, for which Matthews holds a 40% common equity interest. The Brand Solutions reported revenue for FY2025 was $345,946,000, though this now centers on the cylinders business plus the equity-method income from Propelis.

The projected value from the Propelis investment is substantial:

• Propelis is projecting initial annual adjusted EBITDA of about $100 million.
• Total targeted synergies identified for Propelis are $60 million.
• For the fourth quarter of Fiscal Year 2025 (July 1, 2025, through September 30, 2025), Matthews' 40% portion of Propelis adjusted EBITDA was $12.9 million, based on a preliminary estimate of $32.2 million for the JV.

Overall consolidated adjusted EBITDA for the fiscal year ended September 30, 2025, including the 40% interest in Propelis, was approximately $200 million.

Matthews International Corporation (MATW) - Canvas Business Model: Customer Relationships

You're looking at how Matthews International Corporation (MATW) maintains its connections across its diverse customer base as of late 2025. The relationships are clearly segmented by their two core global businesses: Industrial Technologies and Memorialization.

The Memorialization segment relies on deep, long-standing ties with its core customers. This segment provides memorialization products, including memorials, caskets, cremation-related products, and cremation and incineration equipment, primarily to cemetery and funeral home customers. This relationship base was recently strengthened by the acquisition of the death-care oriented Dodge Company during the fiscal year ending September 30, 2025.

The direct sales and consultative approach is key for the Industrial Technologies segment, which focuses on precision technologies like high-tech custom energy storage solutions, product identification, and warehouse automation. For these complex industrial projects, the relationship is built on delivering specific, intelligent processes.

Investor confidence, which underpins the company's stability and ability to maintain customer commitments, is evidenced by its commitment to shareholder returns. Matthews International has been paying dividends for the last 32 years. The latest action in November 2025 involved announcing a quarterly dividend of $0.25 per share, payable on December 15, 2025, to shareholders of record as of December 1, 2025. This translates to an annualized dividend of $1.00 per share, representing a trailing dividend yield of approximately 4.08% based on recent figures. The payout ratio is estimated at 55.25% of earnings per share.

Dedicated support for industrial technology customers happens at specialized development centers, helping them integrate precision technologies. The company supports its global footprint with over 5,400 employees across 19 countries.

Here's a look at the financial scale of the customer-facing segments for the fiscal year ended September 30, 2025:

The Memorialization segment's relationship depth can also be seen in its growing contribution to the overall business:

• Memorialization segment share of consolidated sales in Q3 2025: 58.3%
• Memorialization segment share of consolidated sales in Q3 2024: 47.4%

The nature of these relationships involves serving distinct customer groups:

• Funeral homes and cemeteries for memorials, caskets, and cremation equipment.
• Industrial clients needing product identification and warehouse automation.
• Industrial clients requiring high-tech custom energy storage solutions.
• Industrial clients utilizing coating and converting lines for packaging and pharma.

Matthews International Corporation (MATW) - Canvas Business Model: Channels

You're looking at how Matthews International Corporation moves its products and services to customers as of late 2025. The company relies on a mix of direct sales, established networks, and a significant equity-method investment for service delivery across its core segments.

The Memorialization segment channels its products-caskets, cremation products, and cemetery products-primarily through a direct sales force engaging funeral homes and cemetery operators. This channel delivered $\mathbf{\$809,514,000}$ in revenue for the full fiscal year ended September 30, 2025. For the fourth quarter of fiscal 2025 alone, this segment generated $\mathbf{\$209.6}$ million in revenue, up $\mathbf{6.5\%}$ from the $\mathbf{\$196.8}$ million seen in the fourth quarter of fiscal 2024, partially due to the inclusion of The Dodge Company's revenue.

For the Industrial Technologies segment, which includes industrial marking systems, the company utilizes a global network for sales, service, and distribution. This segment generated $\mathbf{\$342,229,000}$ in revenue for fiscal year 2025. Matthews Marking Systems serves customers worldwide through this extensive network, offering solutions for product identification, branding, and traceability. Overall, Matthews International's consolidated sales for fiscal 2025 were $\mathbf{\$1,497,689,000}$.

The global reach of Matthews International is substantial, with its employees operating across $\mathbf{19}$ Countries on $\mathbf{4}$ Continents. Geographically, $\mathbf{71\%}$ of the fiscal 2025 sales originated from North America, $\mathbf{24\%}$ from Europe, $\mathbf{3\%}$ from Asia, and $\mathbf{2\%}$ from other regions.

The Matthews Engineering Vreden Development Center represents a channel for delivering energy solutions, supporting the Industrial Technologies segment's focus on manufacturing processes for hydrogen fuel cell components and lithium-ion batteries. While the center opened, specific revenue figures tied directly to this location's channel contribution for fiscal 2025 aren't explicitly detailed in the latest reports.

Service delivery for creative and digital services is channeled through Propelis, an entity Matthews International contributed most of its SGK Brand Solutions business to on May 1, 2025, retaining a $\mathbf{40\%}$ ownership stake. Propelis is projecting an initial annual adjusted EBITDA of about $\mathbf{\$100}$ million. For the third quarter of fiscal 2025 (July 1, 2025, through September 30, 2025), Matthews International recognized $\mathbf{\$12.9}$ million from its $\mathbf{40\%}$ interest in Propelis' preliminary adjusted EBITDA for that period.

Here's a quick look at the segment revenue breakdown for fiscal 2025, which shows how the channels feed the top line:

The company also manages internal service flows, such as administrative support fees charged to Propelis. As of June 30, 2025, amounts due to Matthews International from Propelis totaled $\mathbf{\$5,887}$ (in thousands, likely) reflecting outstanding administrative fees and net transactional amounts pending settlement under the TSA (Transition Services Agreement).

The company's overall channel strategy is supported by its commitment to innovation, including the launch of Axiom, a new printhead chip product, which targets an addressable market of approximately $\mathbf{\$2}$ billion.

• The Memorialization segment serves cemeteries and funeral homes directly.
• Industrial Technologies leverages an extensive sales, service, and distribution network globally.
• Propelis delivery platforms are accessed via an equity-method investment structure.
• The company maintains a global network of employees across $\mathbf{19}$ countries.

Finance: draft 13-week cash view by Friday.

Matthews International Corporation (MATW) - Canvas Business Model: Customer Segments

Funeral homes and cemetery operators are the primary buyers within the Memorialization segment.

For the fiscal year ended September 30, 2025, the Memorialization segment generated revenues of $809.5 million, a decrease from $829.7 million in Fiscal Year 2024.

This segment represented about 54% of Matthews International Corporation's total revenue in Fiscal Year 2025.

The fourth quarter of Fiscal Year 2025 saw Memorialization segment Revenues reach $209.6 million, showing growth of 6.5% compared to the fourth quarter of Fiscal Year 2024's $196.8 million.

The customer base for the Memorialization segment includes:

• Funeral homes.
• Cemetery operators.
• Monument dealers.

Global manufacturers in consumer-packaged goods (CPG/FMCG) and large brand owners are now primarily served through the Propelis joint venture, which Matthews International Corporation holds a 40% ownership interest in following the May 1, 2025, SGK divestiture.

For the two months of May and June 2025, the preliminary estimated adjusted EBITDA for Propelis was $16.8 million, meaning Matthews International Corporation's 40% portion was estimated at $6.7 million.

Matthews International Corporation has set its consolidated adjusted EBITDA guidance for Fiscal Year 2026, including its 40% share of Propelis, to be at least $180 million.

Emerging electric vehicle (EV) and battery manufacturers are customers within the Industrial Technologies segment, specifically for dry battery electrode solutions.

Interest from other customers in these dry battery electrode solutions remained very strong, with customer quotes exceeding $100 million since early February 2025.

The Fiscal Year 2025 revenue breakdown by the company's reporting segments, post-SGK divestiture, is detailed below:

The consolidated sales for Matthews International Corporation for the Fiscal Year ended September 30, 2025, were $1,497,689,000, down from $1,795,737,000 in 2024.

The fourth quarter consolidated sales for the period ending September 30, 2025, were $318.84 million.

Matthews International Corporation (MATW) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive Matthews International Corporation's operations, which are heavily weighted toward the physical creation of their products and managing a global footprint. The cost structure is clearly dominated by the inputs for their manufacturing processes.

High cost of goods sold for raw materials (bronze, wood, metals).

The Memorialization segment, which accounted for about 54% of revenue in Fiscal Year 2025, relies on materials like bronze and granite, which carry inherent commodity price risk. While specific Cost of Goods Sold (COGS) percentages aren't broken out for raw materials, the segment's reliance on physical goods means material costs are a primary driver of the cost base. For instance, the Industrial Technologies segment's Q2 FY2025 sales were $80,800,000, down from $116,100,000 the prior year, showing how top-line fluctuations directly impact the cost absorption environment.

Manufacturing overhead and global operational expenses.

Global operations mean you're dealing with fixed overhead costs spread across various international facilities. The company has been actively streamlining this, evidenced by the disposal of the European operations which were generating operating losses. Furthermore, the cost reduction programs specifically target savings from engineering and tooling operations in Europe and general and administrative costs.

Significant R&D investment in Industrial Technologies, especially energy.

Matthews International Corporation is placing heavy bets on its Industrial Technologies segment, particularly the Dry Battery Electrode (DBE) technology. This focus requires substantial investment in development and scaling. You can see the potential future revenue stream driving this cost, as customer quotes for these energy storage solutions have exceeded $100 million since early February 2025. This R&D push is a forward-looking cost necessary to secure future revenue streams.

Here's a quick look at the key financial metrics related to cost control and leverage management as of late 2025:

Interest expense on debt, which is targeted to reduce net leverage below 3.0x.

Debt servicing is a definite cost component. The company's strategy is clear: use proceeds from divestitures, like the SGK transaction (which brought in $250 million cash upfront) and the pending Warehouse Automation sale (expected to yield $223 million in cash consideration), to pay down debt. This aggressive deleveraging is aimed at getting the net leverage ratio below 3.0x post-Warehouse Automation sale, with a long-term goal of 2.5x. The net debt leverage ratio stood at 3.88 at the end of Q1 FY2025, showing the starting point for this cost management effort. Interest expense was noted as higher in Q1 FY2025, contributing to the net loss of $3.5 million for that quarter.

Cost reduction programs targeting at least $50 million in annual savings.

Matthews International Corporation initiated cost reduction programs that are expected to result in annual consolidated savings up to $50,000,000. These programs are defintely on track, with management noting they are expected to generate savings above the initial $50 million estimate. By the end of fiscal 2025, the company anticipated achieving a run rate of $25 to $30 million in savings, with the remainder realized by the end of the next fiscal year.

• Savings are primarily from engineering/tooling in Europe.
• Savings also target general and administrative costs.
• Upfront costs, like severance, impacted current GAAP results.
• Corporate and other non-operating costs were reduced by 11.4%, or $4.9 million, year-to-date in Q3 FY2025.

Finance: draft 13-week cash view by Friday.

Matthews International Corporation (MATW) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Matthews International Corporation's business model as of late 2025, which is definitely in a state of transition following major portfolio moves. The revenue streams are now much more focused after divesting the bulk of the SGK Brand Solutions business into the Propelis joint venture in May 2025, and with the pending sale of the Warehouse Automation unit.

The core, continuing revenue streams are anchored in two main segments, plus the financial benefit from the Propelis stake. For the full fiscal year 2025, which ended September 30, 2025, consolidated sales landed at approximately $1,497,689,000. This figure reflects the reduced scope after the SGK divestiture.

Here's a breakdown of the key revenue-generating activities, keeping in mind that the Brand Solutions segment is now primarily the cylinders business plus the equity-method investment income from Propelis. To be fair, the Q4 2025 segment numbers show the current run-rate better than the full-year number which includes pre-divestiture sales for part of the year.

The Memorialization product sales are a bedrock, showing strength even with the portfolio changes. For the full fiscal year 2025, this segment totaled $809,514,000. This was supported by the recent acquisition of The Dodge Company and good pricing realization.

Industrial Technologies equipment and service sales represent the second major operational stream. For the full fiscal year 2025, this segment brought in $342,229,000 in sales. You should note that the Q4 2025 sales for this segment were $93 million, which was lower year-over-year partly due to challenges in the engineering business related to litigation.

A significant, non-operational revenue component comes from the equity earnings from the 40% stake in Propelis, the entity formed from the SGK divestiture. While the prompt asks for equity earnings, the financial reporting focuses on the equity-method investment income. For the fourth quarter ended September 30, 2025, Matthews recognized its 40% share of Propelis adjusted EBITDA, which amounted to $12.9 million. Management noted Propelis was outperforming expectations.

Finally, you must account for the cash proceeds from strategic divestitures, which are crucial for balance sheet management, even if they aren't recurring revenue. The announced sale of the Warehouse Automation business, which falls under Industrial Technologies, was for $230 million. The expected net proceeds after transaction costs were about $160 million, earmarked primarily to reduce debt. This transaction is expected to bring the net leverage ratio below 3.0x.

The revenue streams can be summarized by their nature:

• Direct product and service sales from Memorialization and Industrial Technologies segments.
• Equity-method income from the 40% retained stake in Propelis.
• One-time cash realization from the sale of the Warehouse Automation business.

Finance: draft 13-week cash view by Friday.