Matson, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS ​ MATSON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, (In millions, except per share amounts) ​ ​ ​ 2026 ​ ​ ​ 2025 Operating Revenue: ​ ​ ​ ​ ​ ​ Ocean Transportation ​ $ 606.5 ​ $ 637.4 Logistics ​ 151.3 ​ 144.6 Total Operating Revenue ​ 757.8 ​ 782.0 ​ ​ ​ ​ ​ ​ ​ Costs and Expenses: ​ ​ ​ ​ ​ ​ Operating costs ​ ( 623.9 ) ​ ( 631.1 ) Income from SSAT ​ 5.0 ​ 6.6 General and administrative ​ ( 77.5 ) ​ ( 75.4 ) Total Costs and Expenses ​ ( 696.4 ) ​ ( 699.9 ) ​ ​ ​ ​ ​ ​ ​ Operating Income ​ 61.4 ​ 82.1 Interest income ​ ​ 6.1 ​ ​ 9.4 Interest expense, net ​ ( 1.6 ) ​ ( 1.7 ) Other income (expense), net ​ 2.0 ​ 2.4 Income before Taxes ​ 67.9 ​ 92.2 Income taxes ​ ( 11.3 ) ​ ( 19.9 ) Net Income ​ $ 56.6 ​ $ 72.3 ​ ​ ​ ​ ​ ​ ​ Comprehensive Income (Loss), Net of Income Taxes: ​ ​ ​ ​ ​ ​ Net Income ​ $ 56.6 ​ $ 72.3 Other Comprehensive Income (Loss): ​ ​ ​ ​ ​ ​ Net change in pension and post-retirement liabilities ​ ​ ( 0.5 ) ​ ​ ( 0.8 ) Other adjustments ​ — ​ 0.5 Total Other Comprehensive Income (Loss), Net of Income Taxes ​ ( 0.5 ) ​ ( 0.3 ) Total Comprehensive Income ​ $ 56.1 ​ $ 72.0 ​ ​ ​ ​ ​ ​ ​ Basic Earnings Per Share ​ $ 1.86 ​ $ 2.20 Diluted Earnings Per Share ​ $ 1.85 ​ $ 2.18 ​ ​ ​ ​ ​ ​ ​ Weighted Average Number of Shares Outstanding: ​ ​ ​ ​ ​ ​ Basic ​ 30.4 ​ 32.8 Diluted ​ 30.6 ​ 33.2 ​ See Notes to Condensed Consolidated Financial Statements. ​ 1 Table of Contents MATSON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, (In millions) ​ ​ ​ 2026 ​ ​ ​ 2025 ASSETS ​ ​ ​ ​ ​ ​ Current Assets: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 100.1 ​ $ 141.9 Accounts receivable, net of allowance for credit losses of $ 8.2 million and $ 8.6 million, respectively ​ 257.9 ​ 256.8 Prepaid expenses and other assets ​ 78.4 ​ 73.2 Total current assets ​ 436.4 ​ 471.9 Long-term Assets: ​ ​ ​ ​ ​ ​ Investment in SSAT ​ 101.5 ​ 96.2 Property and equipment, net ​ 2,510.6 ​ 2,499.4 Operating lease right-of-use assets ​ ​ 345.6 ​ ​ 369.6 Goodwill ​ 327.8 ​ 327.8 Intangible assets, net ​ ​ 143.5 ​ ​ 146.6 Capital Construction Fund ​ ​ 521.5 ​ ​ 532.7 Deferred dry-docking costs, net ​ ​ 99.1 ​ ​ 94.7 Other long-term assets ​ 97.0 ​ 96.7 Total long-term assets ​ ​ 4,146.6 ​ ​ 4,163.7 Total Assets ​ $ 4,583.0 ​ $ 4,635.6 ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND SHAREHOLDERS’ EQUITY ​ ​ ​ ​ ​ ​ Current Liabilities: ​ ​ ​ ​ ​ ​ Current portion of debt ​ $ 39.7 ​ $ 39.7 Accounts payable and accruals ​ 254.3 ​ 244.9 Operating lease liabilities ​ ​ 125.3 ​ ​ 128.5 Other liabilities ​ 110.6 ​ 114.3 Total current liabilities ​ 529.9 ​ 527.4 Long-term Liabilities: ​ ​ ​ ​ ​ ​ Long-term debt, net of deferred loan fees ​ 302.2 ​ 312.1 Long-term operating lease liabilities ​ ​ 230.0 ​ ​ 246.8 Deferred income taxes, net ​ 702.7 ​ 701.9 Other long-term liabilities ​ ​ 88.1 ​ ​ 88.4 Total long-term liabilities ​ 1,323.0 ​ 1,349.2 Commitments and Contingencies (see Note 16) ​ ​ ​ ​ ​ ​ Shareholders’ Equity: ​ ​ ​ ​ ​ ​ Common stock ​ 22.7 ​ 22.8 Additional paid in capital ​ 274.6 ​ 295.2 Accumulated other comprehensive income (loss), net ​ 1.1 ​ 1.6 Retained earnings ​ 2,431.7 ​ 2,439.4 Total shareholders’ equity ​ 2,730.1 ​ 2,759.0 Total Liabilities and Shareholders’ Equity ​ $ 4,583.0 ​ $ 4,635.6 ​ See Notes to Condensed Consolidated Financial Statements. ​ 2 Table of Contents MATSON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ (In millions) ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Cash Flows From Operating Activities: ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 56.6 ​ $ 72.3 ​ Reconciling adjustments: ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 42.2 ​ 40.6 ​ Amortization of operating lease right-of-use assets ​ ​ 33.7 ​ ​ 34.5 ​ Deferred income taxes, net ​ 0.7 ​ 0.4 ​ Share-based compensation expense ​ 5.5 ​ 5.8 ​ Income from SSAT ​ ( 5.0 ) ​ ( 6.6 ) ​ Other ​ ​ 0.3 ​ ​ ( 1.9 ) ​ Changes in assets and liabilities: ​ ​ ​ ​ ​ ​ ​ Accounts receivable, net ​ ( 1.1 ) ​ ( 1.6 ) ​ Deferred dry-docking payments ​ ( 11.9 ) ​ ( 10.4 ) ​ Deferred dry-docking amortization ​ 7.7 ​ 6.6 ​ Prepaid expenses and other assets ​ ( 4.0 ) ​ ( 6.9 ) ​ Accounts payable, accruals and other liabilities ​ 1.0 ​ ( 5.3 ) ​ Operating lease assets and liabilities, net ​ ​ ( 29.8 ) ​ ​ ( 35.1 ) ​ Other long-term liabilities ​ ( 1.9 ) ​ ( 3.4 ) ​ Net cash provided by operating activities ​ 94.0 ​ 89.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: ​ ​ ​ ​ ​ ​ ​ Vessel construction expenditures ​ ​ ( 18.0 ) ​ ​ ( 66.7 ) ​ Capital expenditures (excluding vessel construction expenditures) ​ ( 30.3 ) ​ ( 22.5 ) ​ Proceeds from disposal of property and equipment, net ​ ( 0.1 ) ​ ​ 0.2 ​ Cash and interest deposited into the Capital Construction Fund ​ ( 5.8 ) ​ ( 105.4 ) ​ Withdrawals from Capital Construction Fund ​ ​ 17.4 ​ ​ 65.0 ​ Net cash used in investing activities ​ ( 36.8 ) ​ ( 129.4 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash Flows From Financing Activities: ​ ​ ​ ​ ​ ​ ​ Repayments of debt ​ ( 10.1 ) ​ ( 10.1 ) ​ Dividends paid ​ ​ ( 11.0 ) ​ ( 11.3 ) ​ Repurchase of Matson common stock ​ ​ ( 52.8 ) ​ ( 66.9 ) ​ Tax withholding related to net share settlements of restricted stock units ​ ​ ( 25.1 ) ​ ​ ( 16.1 ) ​ Net cash used in financing activities ​ ( 99.0 ) ​ ( 104.4 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Decrease in Cash and Cash Equivalents ​ ( 41.8 ) ​ ( 144.8 ) ​ Cash and Cash Equivalents, Beginning of the Period ​ 141.9 ​ 266.8 ​ Cash and Cash Equivalents, End of the Period ​ $ 100.1 ​ $ 122.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental Cash Flow Information: ​ ​ ​ ​ ​ ​ ​ Interest paid, net of capitalized interest ​ $ 1.7 ​ $ 1.7 ​ Income taxes paid, net of income tax refunds ​ $ 2.8 ​ $ 1.6 ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-cash Information: ​ ​ ​ ​ ​ ​ ​ Capital expenditures included in accounts payable, accruals and other liabilities ​ $ 3.2 ​ $ 7.6 ​ ​ See Notes to Condensed Consolidated Financial Statements. ​ 3 Table of Contents MATSON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stated ​ Paid In ​ Comprehensive ​ ​ ​Retained ​ ​ ​ (In millions, except per share amounts) ​ ​ ​ Shares ​ ​ ​ Value ​ ​ ​ Capital ​ ​ ​ Income (Loss) ​ ​ ​ Earnings ​ ​ ​ ​ ​ ​ ​ ​Total Balance at December 31, 2025 30.4 ​ $ 22.8 $ 295.2 ​ $ 1.6 ​ $ 2,439.4 ​ $ 2,759.0 Net income — ​ — — ​ — ​ 56.6 ​ 56.6 Other comprehensive income (loss), net of tax — ​ — — ​ ( 0.5 ) ​ — ​ ( 0.5 ) Share-based compensation — ​ — 5.5 ​ — ​ — ​ 5.5 Shares issued, net of shares withheld for employee taxes 0.3 ​ ​ 0.2 ​ ( 25.3 ) ​ — ​ — ​ ( 25.1 ) Shares repurchased ( 0.4 ) ​ ​ ( 0.3 ) ​ ​ ( 0.8 ) ​ ​ — ​ ​ ( 53.3 ) ​ ​ ( 54.4 ) Dividends ( $ 0.36 per share) — ​ — — ​ — ​ ( 11.0 ) ​ ( 11.0 ) Balance at March 31, 2026 30.3 ​ $ 22.7 ​ $ 274.6 ​ $ 1.1 ​ $ 2,431.7 ​ $ 2,730.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stated ​ Paid In ​ Comprehensive ​ ​ ​Retained ​ ​ ​ (In millions, except per share amounts) ​ ​ ​ Shares ​ ​ ​ Value ​ ​ ​ Capital ​ ​ ​ Income (Loss) ​ ​ ​ Earnings ​ ​ ​ ​ ​ ​ ​ ​Total Balance at December 31, 2024 33.0 ​ $ 24.7 $ 296.7 ​ $ ( 6.5 ) ​ $ 2,337.1 ​ $ 2,652.0 Net income — ​ — — ​ — ​ 72.3 ​ 72.3 Other comprehensive income (loss), net of tax — ​ — — ​ ( 0.3 ) ​ — ​ ( 0.3 ) Share-based compensation — ​ — 5.8 ​ — ​ — ​ 5.8 Shares issued, net of shares withheld for employee taxes 0.1 ​ ​ 0.1 ( 16.2 ) ​ — ​ — ​ ( 16.1 ) Shares repurchased ( 0.5 ) ​ ​ ( 0.3 ) ​ ​ ( 1.6 ) ​ ​ — ​ ​ ( 67.3 ) ​ ​ ( 69.2 ) Dividends ( $ 0.34 per share) — ​ — — ​ — ​ ( 11.3 ) ​ ( 11.3 ) Balance at March 31, 2025 32.6 ​ $ 24.5 $ 284.7 ​ $ ( 6.8 ) ​ $ 2,330.8 ​ $ 2,633.2 ​ See Notes to Condensed Consolidated Financial Statements. ​ 4 Table of Contents MATSON, INC. AND SUBSIDIARIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) ​ 1. DESCRIPTION OF THE BUSINESS ​ Matson, Inc., a holding company incorporated in the State of Hawaii, and its subsidiaries (“Matson” or the “Company”), is a leading provider of ocean transportation and logistics services. The Company consists of two segments, Ocean Transportation and Logistics. ​ Ocean Transportation: Matson’s Ocean Transportation business is conducted through Matson Navigation Company, Inc. (“MatNav”), a wholly-owned subsidiary of Matson, Inc. Founded in 1882, MatNav provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska and Guam, and to other island economies in Micronesia. MatNav also operates premium, expedited services from China to Long Beach, California, which includes cargo from other Asia origins, provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Alaska to Asia. In addition, subsidiaries of MatNav provide stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav in Hawaii and Alaska. ​ Matson has a 35 percent ownership interest in SSA Terminals, LLC (“SSAT”), a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc. SSAT currently provides terminal and stevedoring services to various carriers at seven terminal facilities on the U.S. West Coast, including three facilities dedicated for MatNav’s use. Matson records its share of income from SSAT in costs and expenses in the Condensed Consolidated Statements of Income and Comprehensive Income, and within the Ocean Transportation segment due to the nature of SSAT’s operations. ​ Logistics: Matson’s Logistics business is conducted through Matson Logistics, Inc. (“Matson Logistics”), a wholly-owned subsidiary of MatNav. Established in 1987, Matson Logistics extends the geographic reach of Matson’s transportation network throughout North America and Asia, and provides a variety of logistics services to its customers including: (i) multimodal transportation brokerage of domestic and international rail intermodal services, long-haul and regional highway trucking services, specialized hauling, flat-bed and project services, less-than-truckload services, and expedited freight services (collectively, “Transportation Brokerage” services); (ii) less-than-container load (“LCL”) consolidation and freight forwarding services (collectively, “Freight Forwarding” services); (iii) warehousing, trans-loading, value-added packaging and distribution services (collectively, “Warehousing” services); and (iv) purchase order management, booking services, and non-vessel operating common carrier (“NVOCC”) freight forwarding services (collectively, “Supply Chain Management” services). ​ ​ 2. GENERAL AND SIGNIFICANT ACCOUNTING POLICIES ​ Basis of Presentation: The Condensed Consolidated Financial Statements are unaudited and include the accounts of Matson, Inc. and all wholly-owned subsidiaries, after elimination of intercompany amounts and transactions. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. The Company accounts for its investment in SSAT using the equity method of accounting. ​ Due to the nature of the Company’s operations, the results for interim periods are not necessarily indicative of results to be expected for the year. These Condensed Consolidated Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim periods, and do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete consolidated financial statements. ​ The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. ​ 5 Table of Contents Fiscal Period: The period end for Matson covered by this report is March 31, 2026. The period end for MatNav and its subsidiaries covered by this report is March 27, 2026. ​ Significant Accounting Policies: The Company’s significant accounting policies are described in Note 2 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. ​ Use of Estimates: The preparation of the interim Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates and assumptions are used for but not limited to: useful lives of property and equipment, impairment of investments; impairment of long-lived assets, intangible assets and goodwill; capitalized interest; allowance for credit losses; legal contingencies; insurance reserves and other related liabilities; accrual estimates; pension and post-retirement estimates; multi-employer withdrawal liabilities; operating lease assets and liabilities; estimates of income (loss) from SSAT; and income tax estimates. Future results could be materially affected if actual results differ from these estimates and assumptions. ​ Recognition of Revenues and Expenses: Revenue and expenses in the Company’s Condensed Consolidated Financial Statements are presented net of elimination of intercompany amounts and transactions. The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue and expense recognition policy for each activity for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, Ocean Transportation (in millions) (1) ​ 2026 ​ ​ ​ 2025 Ocean Transportation services ​ $ 601.4 ​ $ 632.9 Terminal and other related services ​ ​ 2.2 ​ ​ 2.5 Fuel sales ​ ​ 2.9 ​ ​ 2.0 Total ​ $ 606.5 ​ $ 637.4 (1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation services revenue and fuel sales revenue categories which are denominated in foreign currencies. ​ ◾ Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and general and administrative expenses, are charged to operating costs as incurred. ◾ Terminal and other related services revenue is recognized as the services are performed. Terminal and other related service costs are recognized as incurred. ◾ Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, Logistics (in millions) (1) ​ 2026 ​ 2025 Transportation Brokerage and Freight Forwarding services ​ $ 134.9 ​ $ 127.3 Warehousing services ​ ​ 9.3 ​ ​ 9.0 Supply Chain Management services ​ 7.1 ​ 8.3 Total ​ $ 151.3 ​ $ 144.6 (1) Logistics revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Transportation Brokerage and Freight Forwarding services revenue, and Supply Chain Management services revenue categories which are denominated in foreign currencies. ​ ◾ Transportation Brokerage and Freight Forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, agent commissions, labor and equipment. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor, agent commissions, and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices. ◾ Warehousing services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the 6 Table of Contents customer. Storage related costs are recognized as incurred. Other Warehousing services revenue and related costs are recognized in proportion to the services performed. ◾ Supply Chain Management and other services revenue, and related costs are recognized in proportion to the services performed. ​ The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are invoiced in advance to the customer. Deferred revenue is included in other liabilities in the Company’s Condensed Consolidated Financial Statements. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year. The Company expenses sales commissions and contract acquisition costs as incurred because the amounts are generally immaterial. These expenses are included in general and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income. ​ Capitalized Interest: The Company capitalizes interest costs during the period as the qualified assets are being readied for their intended use. The Company determined that vessel construction costs are considered qualifying assets for the purposes of capitalizing interest on these assets. The amount of capitalized interest is calculated based on the amount of expenditures incurred related to the construction of these vessels using a weighted average interest rate. The weighted average interest rate is determined using the Company’s average borrowings outstanding during the period. Capitalized interest is included in vessel construction in progress in property and equipment in the Company’s Condensed Consolidated Balance Sheets (see Note 5). The Company capitalized $ 0.9 million and $ 1.1 million of interest related to the construction of new vessels for the three months ended March 31, 2026 and 2025, respectively. ​ Dividends: The Company’s first quarter 2026 cash dividend of $ 0.36 per share was paid on March 5, 2026. On April 23, 2026 , the Company’s Board of Directors declared a cash dividend of $ 0.36 per share payable on June 4, 2026 to shareholders of record on May 7, 2026 . ​ Repurchase of Shares: During the three months ended March 31, 2026 and 2025, the Company repurchased approximately 0.4 million and 0.5 million shares for a total cost of $ 54.4 million and $ 69.2 million, respectively. As of March 31, 2026, the maximum number of remaining shares that may be repurchased under the Company’s share repurchase program was approximately 0.8 million shares. On April 23, 2026, the Company’s Board of Directors approved an additional 3.0 million shares of common stock to be added to the Company’s existing share repurchase program and extended the program to December 31, 2029. ​ Recently adopted accounting pronouncements: In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides optional simplified methods for estimating credit losses on current accounts receivable. ASU 2025-05 is effective for interim and annual periods beginning after December 31, 2025. The adoption of ASU 2025-05 during the three months ended March 31, 2026 did not have a material impact on the Company’s consolidated financial statements. ​ New Accounting Pronouncements: In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). ASU 2024-03 requires disclosure of certain expenses in the financial statements including employee compensation and depreciation and amortization of intangible assets on an annual and interim basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. ASU 2024-03 can be adopted either: (i) prospectively to the financial statements issued for reporting periods after the effective date of the ASU or (ii) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the effects of adopting ASU 2024-03 but does not expect it will have a material impact on the Company’s consolidated financial statements. ​ ​ ​ 7 Table of Contents 3. REPORTABLE SEGMENTS ​ Reportable segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company’s CODM is its Chief Executive Officer. ​ The Company identified two reportable segments on the basis of internal information provided to the CODM: Ocean Transportation and Logistics which are described in Note 1. Each segment is managed separately based upon fundamental differences in the operations of each segment. The Company’s Ocean Transportation service primarily involves the transportation of customer cargo on Company owned and chartered vessels. The Company’s Logistics service provides customers with logistics solutions primarily using third-party purchased transportation. The Company’s CODM assesses the performance of each segment using operating income. The Company’s CODM reviews the performance of each segment using monthly internal reports which provide variance analysis of actual results by segment compared to budget, forecast and prior year. The Company’s CODM uses this information when making decisions about the allocation of operating and capital resources to each segment. Segment balance sheet information is not provided to the CODM as capital decisions are based upon the Company’s consolidated balance sheet. ​ Reportable segment financial information for the three months ended March 31, 2026 and 2025 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Three Months Ended ​ ​ March 31, 2026 ​ March 31, 2025 (In millions) ​ ​ ​ Ocean Transportation ​ ​ ​ Logistics ​ Total ​ ​ ​ Ocean Transportation ​ ​ ​ Logistics ​ ​ ​ Total Operating Revenue (1)(2) ​ $ 606.5 ​ $ 151.3 ​ $ 757.8 ​ $ 637.4 ​ $ 144.6 ​ $ 782.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating costs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Direct cargo expense ​ ​ ( 234.8 ) ​ ​ — ​ ​ ( 234.8 ) ​ ​ ( 238.2 ) ​ ​ — ​ ​ ( 238.2 ) Vessel operating expense ​ ​ ( 138.7 ) ​ ​ — ​ ​ ( 138.7 ) ​ ​ ( 147.4 ) ​ ​ — ​ ​ ( 147.4 ) Operating overhead (3) ​ ​ ( 81.7 ) ​ ​ — ​ ​ ( 81.7 ) ​ ​ ( 87.1 ) ​ ​ — ​ ​ ( 87.1 ) Direct operating costs ​ ​ — ​ ​ ( 126.5 ) ​ ​ ( 126.5 ) ​ ​ — ​ ​ ( 117.8 ) ​ ​ ( 117.8 ) Depreciation and amortization ​ ​ ( 39.1 ) ​ ​ ( 3.1 ) ​ ​ ( 42.2 ) ​ ​ ( 37.2 ) ​ ​ ( 3.4 ) ​ ​ ( 40.6 ) Total operating costs ​ ​ ( 494.3 ) ​ ​ ( 129.6 ) ​ ​ ( 623.9 ) ​ ​ ( 509.9 ) ​ ​ ( 121.2 ) ​ ​ ( 631.1 ) Income from SSAT ​ ​ 5.0 ​ ​ — ​ ​ 5.0 ​ ​ 6.6 ​ ​ — ​ ​ 6.6 General and administrative ​ ( 62.6 ) ​ ( 14.9 ) ​ ( 77.5 ) ​ ( 60.5 ) ​ ( 14.9 ) ​ ( 75.4 ) Total Costs and Expenses ​ ​ ( 551.9 ) ​ ​ ( 144.5 ) ​ ​ ( 696.4 ) ​ ​ ( 563.8 ) ​ ​ ( 136.1 ) ​ ​ ( 699.9 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Income: ​ $ 54.6 ​ $ 6.8 ​ ​ 61.4 ​ $ 73.6 ​ $ 8.5 ​ ​ 82.1 Interest income ​ ​ ​ ​ ​ ​ ​ ​ 6.1 ​ ​ ​ ​ ​ ​ ​ ​ 9.4 Interest expense, net ​ ​ ​ ​ ​ ​ ​ ​ ( 1.6 ) ​ ​ ​ ​ ​ ​ ​ ​ ( 1.7 ) Other income (expense), net ​ ​ ​ ​ ​ ​ ​ 2.0 ​ ​ ​ ​ ​ ​ ​ 2.4 Income before Taxes ​ ​ ​ ​ ​ ​ ​ 67.9 ​ ​ ​ ​ ​ ​ ​ 92.2 Income taxes ​ ​ ​ ​ ​ ​ ​ ( 11.3 ) ​ ​ ​ ​ ​ ​ ​ ( 19.9 ) Net Income ​ ​ ​ ​ ​ ​ ​ $ 56.6 ​ ​ ​ ​ ​ ​ ​ $ 72.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital Expenditures (4) ​ $ 47.1 ​ $ 1.2 ​ $ 48.3 ​ $ 88.1 ​ $ 1.1 ​ $ 89.2 (1) Ocean Transportation operating revenue excludes inter-segment revenue of $ 17.8 million and $ 21.4 million for the three months ended March 31, 2026 and 2025, respectively. (2) Logistics operating revenue excludes inter-segment revenue of $ 29.8 million and $ 32.6 million for the three months ended March 31, 2026 and 2025, respectively. (3) Ocean Transportation operating overhead includes dry-docking amortization of $ 7.7 million and $ 6.6 million for the three months ended March 31, 2026 and 2025, respectively. (4) Capital expenditures exclude accrued capital expenditures of $ 3.2 million and $ 7.6 million as of March 31, 2026 and 2025, respectively. ​ Ocean Transportation’s operating expenses includes the following: ● Operating costs includes: o Direct Cargo Expense includes terminal handling costs including labor, stevedoring and wharfage, outside purchased transportation and other related costs. o Vessel Operating Expense includes crew wages and related costs; fuel; pilots, tugs, lines and related costs; vessel charter expenses; and other vessel operating related expenses. 8 Table of Contents o Operating Overhead Expense includes vessel repair and maintenance costs, inactive vessel costs, dry-docking amortization, equipment lease costs, equipment repair costs, insurance, port engineers and other maintenance costs, other vessel and shoreside related overhead and other indirect costs. o Depreciation and Amortization Expense includes depreciation of property and equipment and amortization of intangible assets. ● Income from SSAT includes the Company’s share of income from its equity investment in SSAT and has been aggregated into the Ocean Transportation segment due to the operations of SSAT being an integral part of the Company’s Ocean Transportation business (see Note 4). ● General and Administrative Expense includes employee salaries, wages and other related costs, equipment maintenance, computer hardware and software, professional fees and other general and administrative expenses. ​ Logistics’ operating expenses includes the following: ● Operating costs includes: o Direct Operating Expense includes transportation costs, transportation brokerage expenses, agency commissions, leases of warehouses, cross-dock and other facility operating costs, wages and other related costs, and other operating overhead. o Depreciation and Amortization Expense includes depreciation of property and equipment and amortization of intangible assets. ● General and Administrative Expense includes employee salaries, wages and other related costs, computer hardware and software, professional fees and other general and administrative expenses. ​ The Company’s Ocean Transportation segment provides ocean transportation services to the Logistics segment, and the Logistics segment provides logistics services to the Ocean Transportation segment in certain transactions. Accordingly, inter-segment revenue of $ 47.6 million and $ 54.0 million for the three months ended March 31, 2026 and 2025, respectively, have been eliminated from consolidated operating revenues. In arrangements where the customer purchases ocean transportation and logistics services, the revenues are allocated to each reportable segment based upon the contractual amounts for each type of service. ​ ​ 4. INVESTMENT IN SSAT ​ The Company’s investment in SSAT is described in Note 4 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Condensed income statement information for SSAT for the three months ended March 31, 2026 and 2025 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, (In millions) ​ 2026 ​ ​ ​ 2025 Operating revenue ​ $ 282.7 ​ $ 311.5 Operating costs and expenses ​ ​ ( 285.4 ) ​ ​ ( 297.5 ) Operating (loss) income ​ ​ ( 2.7 ) ​ ​ 14.0 SSAT’s Net Income (1) ​ $ 4.0 ​ $ 17.7 Company’s Share of SSAT’s Net Income (2) ​ $ 5.0 ​ $ 6.6 (1) Includes earnings and losses from equity method investment held by SSAT less earnings and losses allocated to non-controlling interests. (2) The Company records its share of net income from SSAT in costs and expenses in the Condensed Consolidated Statement of Income and Comprehensive Income due to the nature of SSAT’s operations. ​ The Company’s investment in SSAT was $ 101.5 million and $ 96.2 million at March 31, 2026 and December 31, 2025, respectively. ​ 9 Table of Contents ​ 5. PROPERTY AND EQUIPMENT ​ Property and equipment as of March 31, 2026 and December 31, 2025 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, (In millions) ​ ​ ​ 2026 ​ ​ ​ 2025 Cost: ​ ​ ​ ​ ​ ​ Vessels ​ $ 2,407.7 ​ $ 2,405.0 Containers and equipment ​ ​ 962.1 ​ ​ 943.0 Terminal equipment and other property ​ ​ 171.7 ​ ​ 171.7 New vessel construction in progress ​ ​ 461.1 ​ ​ 443.2 Other construction in progress ​ ​ 49.0 ​ ​ 44.1 Total Property and Equipment ​ ​ 4,051.6 ​ ​ 4,007.0 Less: Accumulated Depreciation ​ ​ ( 1,541.0 ) ​ ​ ( 1,507.6 ) Total Property and Equipment, net ​ $ 2,510.6 ​ $ 2,499.4 ​ ​ ​ New vessel construction in progress at March 31, 2026 and December 31, 2025 includes milestone progress payments, capitalized interest and other costs related to the construction of three new Aloha Class vessels. Delivery of the vessels are expected during the first quarter 2027, the third quarter 2027 and the second quarter 2028. ​ ​ 6. GOODWILL AND INTANGIBLES ​ Goodwill by segment as of March 31, 2026 and December 31, 2025 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2026 ​ As of December 31, 2025 ​ ​ Ocean ​ ​ ​ ​ ​ ​ Ocean ​ ​ ​ ​ ​ (In millions) ​ ​ ​ Transportation ​ ​ ​ Logistics ​ ​ ​ Total ​ ​ ​ Transportation ​ ​ ​ Logistics ​ ​ ​ Total Goodwill ​ $ 222.6 ​ $ 105.2 ​ $ 327.8 ​ ​ $ 222.6 ​ $ 105.2 ​ $ 327.8 ​ ​ Intangible assets as of March 31, 2026 and December 31, 2025 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ (In millions) ​ ​ ​ 2026 ​ ​ ​ 2025 ​ Customer Relationships: ​ ​ ​ ​ ​ ​ ​ Ocean Transportation ​ $ 140.6 ​ $ 140.6 ​ Logistics ​ ​ 106.6 ​ ​ 106.6 ​ Total ​ ​ 247.2 ​ ​ 247.2 ​ Less: Accumulated Amortization ​ ​ ( 131.0 ) ​ ​ ( 127.9 ) ​ Total Customer Relationships, net ​ ​ 116.2 ​ ​ 119.3 ​ Trade name – Logistics ​ ​ 27.3 ​ ​ 27.3 ​ Total Intangible Assets, net ​ $ 143.5 ​ $ 146.6 ​ ​ The Company evaluates its goodwill and intangible assets for possible impairment in the fourth quarter, or whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than its carrying amount. The Company has reporting units within the Ocean Transportation and Logistics reportable segments. The Company considered the general economic and market conditions and its impact on the performance of each of the Company’s reporting units. Based on the Company’s assessment of its market capitalization, future forecasts and the amount of excess of fair value over the carrying value of the reporting units in the 2025 annual impairment tests, the Company concluded that an impairment triggering event did not occur during the three months ended March 31, 2026. ​ The Company continues to monitor events and changes in circumstances that could negatively impact the key assumptions used in determining the fair value, including the amount and timing of estimated future cash flows generated by the reporting units, long-term growth and discount rates, comparable company market valuations, and industry and economic trends, including the impact of tariffs. It is possible that future changes in such circumstances, including future changes in the assumptions and estimates used in assessing the fair value of the reporting unit, could require the Company to record a non-cash impairment charge. ​ ​ 10 Table of Contents 7. CAPITAL CONSTRUCTION FUND ​ The Capital Construction Fund (“CCF”) is described in Note 7 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. A summary of the activities within the CCF cash and cash equivalents, and investments account for the three months ended March 31, 2026 and 2025 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ March 31, ​ (In millions) ​ ​ ​ 2026 ​ ​ ​ 2025 ​ CCF Cash and Cash Equivalents: ​ ​ ​ ​ ​ ​ ​ CCF cash and cash equivalents balance at beginning of period ​ $ 307.2 ​ $ 230.7 ​ Proceeds from U.S. Treasury debt securities at maturity ​ ​ 54.9 ​ ​ 20.3 ​ Interest income on cash and cash equivalents, and CCF investments ​ ​ 3.8 ​ ​ 4.1 ​ Repurchase of assigned accounts receivable ​ ​ 1.2 ​ ​ 100.7 ​ Qualifying withdrawal payments for vessel construction expenditures ​ ​ ( 17.4 ) ​ ​ ( 65.0 ) ​ Total CCF cash and cash equivalents balance at end of period ​ ​ 349.7 ​ ​ 290.8 ​ ​ ​ ​ ​ ​ ​ ​ ​ CCF Investments: ​ ​ ​ ​ ​ ​ ​ CCF investments balance at beginning of period ​ ​ 225.5 ​ ​ 411.9 ​ Sale of U.S. Treasury debt securities at maturity ​ ​ ( 54.9 ) ​ ​ ( 20.3 ) ​ Accretion of CCF investments ​ ​ 1.2 ​ ​ 3.0 ​ Total CCF investments balance at end of period ​ ​ 171.8 ​ ​ 394.6 ​ Total CCF cash and cash equivalents, and investments balance at end of period ​ $ 521.5 ​ $ 685.4 ​ ​ CCF Cash and Cash Equivalents: Cash on deposit in the CCF account is invested in a short-term U.S. Treasury obligations fund with daily liquidity. At March 31, 2026, these short-term securities had a weighted average life of 103 days . ​ CCF Investments: The cost of CCF investments accretes to face value on a straight-line basis until maturity. Such accretion is included in interest income in the Condensed Consolidated Statements of Income and Comprehensive Income. ​ As of March 31, 2026, CCF investments maturities are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ ​ ​ March 31, 2026 ​ Year (in millions) ​ ​ ​ Cost ​ Fair Value ​ Remainder of 2026 ​ $ 119.3 ​ $ 119.5 ​ 2027 ​ 52.5 ​ 52.7 ​ Total CCF investments ​ $ 171.8 ​ $ 172.2 ​ ​ CCF cash and cash equivalents, and investments are classified as a long-term asset in the Company’s Condensed Consolidated Balance Sheets as the Company intends to use withdrawals to fund qualified milestone progress payments for the construction of three new Jones Act vessels. ​ CCF Assigned Accounts Receivable: As of March 31, 2026 and December 31, 2025, eligible accounts receivable of $ 82.0 million and $ 82.3 million were assigned to the CCF, respectively. Due to the nature of the assignment of eligible accounts receivable into the CCF, such assigned amounts are classified as part of accounts receivable in the Condensed Consolidated Balance Sheets. ​ ​ 11 Table of Contents 8. DEBT ​ The Company’s debt is described in Note 8 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. As of March 31, 2026 and December 31, 2025, the Company’s debt consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, (In millions) ​ ​ ​ 2026 ​ ​ ​ 2025 Private Placement Term Loans: ​ ​ ​ ​ ​ ​ 3.37 %, payable through 2027 ​ $ 23.1 ​ $ 23.1 3.14 %, payable through 2031 ​ ​ 78.7 ​ ​ 85.8 Title XI Debt: ​ ​ ​ ​ ​ ​ 1.22 %, payable through 2043 ​ ​ 142.4 ​ ​ 142.4 1.35 %, payable through 2044 ​ ​ 106.9 ​ ​ 109.9 Revolving credit facility, maturity date of July 23, 2030 ​ — ​ — Total Debt ​ 351.1 ​ 361.2 Less: Current portion ​ ( 39.7 ) ​ ( 39.7 ) Total Long-term Debt ​ ​ 311.4 ​ ​ 321.5 Less: Deferred loan fees ​ ​ ( 9.2 ) ​ ( 9.4 ) Total Long-term Debt, net of deferred loan fees ​ $ 302.2 ​ $ 312.1 ​ Revolving Credit Facility: As of March 31, 2026, the Company had $ 544.3 million of remaining borrowing availability under its $ 550 million revolving credit facility. The Company used $ 5.7 million of the revolving credit facility for letters of credit outstanding as of March 31, 2026. Borrowings under the revolving credit facility are classified as long-term debt in the Company’s Consolidated Balance Sheets, as principal payments are not required until the maturity date. ​ Debt Maturities: As of March 31, 2026, debt maturities are as follows: ​ ​ ​ ​ ​ ​ ​ As of Year (in millions) ​ ​ ​ March 31, 2026 Remainder of 2026 ​ $ 29.6 2027 ​ 39.7 2028 ​ 28.2 2029 ​ 28.2 2030 ​ 28.2 Thereafter ​ 197.2 Total Debt ​ $ 351.1 ​ ​ ​ 9. LEASES ​ The Company’s leases are described in Note 9 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. ​ Components of Lease Cost: Components of lease cost recorded in the Company’s Condensed Consolidated Statement of Income and Comprehensive Income for the three months ended March 31, 2026 and 2025 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, (In millions) ​ ​ ​ 2026 ​ 2025 Operating lease cost ​ $ 37.8 ​ $ 38.2 Short-term lease cost ​ 1.4 ​ 1.6 Variable lease cost ​ 0.1 ​ 0.1 Total ​ ​ 39.3 ​ ​ 39.9 Sublease income ​ ​ ( 0.3 ) ​ ​ ( 3.6 ) Total lease cost, net ​ $ 39.0 ​ $ 36.3 ​ 12 Table of Contents Future minimum lease payments of operating lease liabilities that have non-cancelable lease terms in excess of one year at March 31, 2026 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ As of Year (in millions) ​ ​ ​ March 31, 2026 Remainder of 2026 ​ $ 107.9 2027 ​ 108.3 2028 ​ 57.9 2029 ​ 35.5 2030 ​ 24.8 Thereafter ​ 73.3 Total lease payments ​ ​ 407.7 Less: Interest ​ ​ ( 52.4 ) Present value of operating lease liabilities ​ ​ 355.3 Less: Short-term portion ​ ​ ( 125.3 ) Long-term operating lease liabilities ​ $ 230.0 ​ ​ ​ 10. INCOME TAXES ​ The Company’s income taxes are described in Note 10 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. ​ On July 4, 2025, new legislation commonly referred to as the One Big Beautiful Bill Act (the “Act”) was signed into law. Among other things, the Act provides for numerous changes to existing tax law including extending or making permanent certain tax provisions of the Tax Cuts and Jobs Act of 2017 that were set to expire. Certain provisions of the Act were effective in fiscal 2025, while others are effective in fiscal 2026 and future years. The application of the Act did not have a material impact on the Company’s effective tax rate during the three months ended March 31, 2026. ​ Income Taxes: Income taxes consist of the following for the three months ended March 31, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, (In millions) ​ ​ ​ 2026 ​ ​ ​ 2025 Current: ​ ​ ​ ​ ​ ​ Federal ​ $ 7.7 ​ $ 16.2 State ​ 1.5 ​ 2.6 Foreign ​ ​ 0.8 ​ ​ 0.7 Total current tax expense ​ 10.0 ​ 19.5 Deferred: ​ ​ ​ ​ ​ ​ Federal ​ ​ 1.2 ​ ​ 0.1 State ​ ​ 0.1 ​ ​ 0.3 Total deferred tax expense ​ ​ 1.3 ​ ​ 0.4 Total income taxes ​ $ 11.3 ​ $ 19.9 ​ ​ 13 Table of Contents ​ 11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ​ Changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended March 31, 2026 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non- ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ Post- ​ Qualified ​ ​ ​ Other ​ ​ ​ Pension ​ Retirement ​ Pension ​ ​ ​ Comprehensive ​ (In millions) ​ ​ ​ Benefits ​ ​ ​ Benefits ​ ​ ​ Benefits ​ ​ ​ Other ​ ​ ​ Income (Loss) Balance at December 31, 2025 ​ $ ( 8.6 ) ​ $ 8.9 ​ $ ( 0.7 ) ​ $ 2.0 ​ $ 1.6 ​ Amortization of prior service credit ​ ​ — ​ ​ ( 0.4 ) ​ ​ — ​ ​ — ​ ​ ( 0.4 ) ​ Amortization of net actuarial gain (loss) ​ ​ — ​ ​ ( 0.1 ) ​ ​ — ​ ​ — ​ ​ ( 0.1 ) ​ Foreign currency exchange ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 0.2 ) ​ ​ ( 0.2 ) ​ Other adjustments ​ ​ — ​ ​ — ​ ​ — ​ ​ 0.2 ​ ​ 0.2 ​ Balance at March 31, 2026 ​ $ ( 8.6 ) ​ $ 8.4 ​ $ ( 0.7 ) ​ $ 2.0 ​ $ 1.1 ​ ​ Changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended March 31, 2025 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non- ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ Post- ​ Qualified ​ ​ ​ Other ​ ​ ​ Pension ​ Retirement ​ Pension ​ ​ ​ Comprehensive ​ (In millions) ​ ​ ​ Benefits ​ ​ ​ Benefits ​ ​ ​ Benefits ​ ​ ​ Other ​ ​ ​ Income (Loss) Balance at December 31, 2024 ​ $ ( 14.0 ) ​ $ 8.1 ​ $ ( 0.4 ) ​ $ ( 0.2 ) ​ $ ( 6.5 ) ​ Amortization of prior service credit ​ ​ — ​ ​ ( 0.7 ) ​ ​ — ​ ​ — ​ ​ ( 0.7 ) ​ Amortization of net actuarial gain (loss) ​ ​ — ​ ​ ( 0.1 ) ​ ​ — ​ ​ — ​ ​ ( 0.1 ) ​ Foreign currency exchange ​ ​ — ​ ​ — ​ ​ — ​ ​ 0.3 ​ ​ 0.3 ​ Other adjustments ​ ​ — ​ ​ — ​ ​ — ​ ​ 0.2 ​ ​ 0.2 ​ Balance at March 31, 2025 ​ $ ( 14.0 ) ​ $ 7.3 ​ $ ( 0.4 ) ​ $ 0.3 ​ $ ( 6.8 ) ​ ​ ​ ​ 12. FAIR VALUE OF FINANCIAL INSTRUMENTS ​ The Company values its financial instruments based on the fair value hierarchy of valuation techniques for fair value measurements. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and inputs other than quoted prices observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability. If the technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy, the lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. ​ The Company uses Level 1 inputs for the fair values of its cash and cash equivalents, and CCF cash and cash equivalents and investments, and Level 2 inputs for fixed rate debt. The fair values of cash and cash equivalents, and CCF cash and cash equivalents approximate their carrying values due to the nature of the instruments. The fair value of CCF investments is calculated based upon quoted prices available in active markets. The fair value of fixed rate debt is calculated based upon interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements. ​ 14 Table of Contents The carrying value and fair value of the Company’s financial instruments as of March 31, 2026 and December 31, 2025 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quoted Prices in ​ Significant ​ Significant ​ ​ ​ Total ​ ​ ​ Active Markets ​ Observable ​ Unobservable ​ ​ ​ ​ ​ ​ ​ ​Carrying Value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​Total ​ ​ ​ (Level 1) ​ ​ ​ Inputs (Level 2) ​ ​ ​ Inputs (Level 3) ​ (In millions) ​ March 31, 2026 ​ Fair Value Measurements at March 31, 2026 ​ Cash and cash equivalents ​ $ 100.1 ​ $ 100.1 ​ $ 100.1 ​ $ — ​ $ — ​ CCF - Cash and cash equivalent ​ $ 349.7 ​ $ 349.7 ​ $ 349.7 ​ $ — ​ $ — ​ CCF - Investments ​ $ 171.8 ​ $ 172.2 ​ $ 172.2 ​ $ — ​ $ — ​ Fixed rate debt ​ $ 351.1 ​ $ 282.6 ​ $ — ​ $ 282.6 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) ​ ​ ​ December 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​Fair Value Measurements at December 31, 2025 ​ Cash and cash equivalents ​ $ 141.9 ​ $ 141.9 ​ $ 141.9 ​ $ — ​ $ — ​ CCF - Cash and cash equivalent ​ $ 307.2 ​ $ 307.2 ​ $ 307.2 ​ $ — ​ $ — ​ CCF - Investments ​ $ 225.5 ​ $ 226.4 ​ $ 226.4 ​ $ — ​ $ — ​ Fixed rate debt ​ $ 361.2 ​ $ 293.6 ​ $ — ​ $ 293.6 ​ $ — ​ ​ ​ ​ 13. EARNINGS PER SHARE ​ Basic earnings per share is determined by dividing net income by the weighted average common shares outstanding during the period. The calculation of diluted earnings per share includes the dilutive effect of non-vested restricted stock units. The computation of weighted average common shares outstanding excluded a nominal amount of anti-dilutive restricted stock units for each period ended March 31, 2026 and 2025. ​ The computations for basic and diluted earnings per share for the three months ended March 31, 2026 and 2025 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2026 ​ Three Months Ended March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ Per ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ Per ​ ​ ​ ​ ​ Average ​ Common ​ ​ ​ ​ Average ​ Common ​ ​ Net ​ Common ​ Share ​ Net ​ Common ​ Share (In millions, except per share amounts) ​ Income ​ Shares ​ Amount ​ Income ​ Shares ​ Amount Basic: ​ $ 56.6 30.4 ​ $ 1.86 ​ $ 72.3 32.8 ​ $ 2.20 Effect of Dilutive Securities: ​ ​ — 0.2 ​ ​ ( 0.01 ) ​ ​ — 0.4 ​ ​ ( 0.02 ) Diluted: ​ $ 56.6 ​ 30.6 ​ $ 1.85 ​ $ 72.3 ​ 33.2 ​ $ 2.18 ​ ​ ​ ​ 14. SHARE-BASED AWARDS ​ The Company’s share-based awards are described in Note 15 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 . During the three months ended March 31, 2026, the Company granted time-based restricted stock units and performance-based shares to certain of its employees totaling approximately 260,900 shares, with a combined weighted average grant date fair value of $ 116.28 per share. ​ Total share-based compensation expense, net of forfeitures recognized in the Condensed Consolidated Statements of Income and Comprehensive Income as a component of general and administrative expenses was $ 5.5 million and $ 5.8 million for the three months ended March 31, 2026 and 2025, respectively. Total unrecognized compensation cost related to non-vested stock units and performance based equity awards was $ 36.5 million at March 31, 2026, and is expected to be recognized over a weighted average period of approximately 2.1 years. ​ ​ 15 Table of Contents 15. PENSION AND POST-RETIREMENT PLANS ​ The Company’s pension and post-retirement plans are described in Note 11 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 . Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Income (Loss) for the qualified pension plans and the post-retirement benefit plans for the three months ended March 31, 2026 and 2025 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Pension Benefits ​ Post-retirement Benefits ​ ​ Three Months Ended March 31, ​ Three Months Ended March 31, (In millions) ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 Components of Net Periodic Benefit Cost (credit): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service cost ​ $ 1.2 ​ $ 1.1 ​ $ 0.1 ​ $ — Interest cost ​ 2.6 ​ 2.6 ​ 0.2 ​ 0.3 Expected return on plan assets ​ ( 4.4 ) ​ ( 4.4 ) ​ — ​ — Amortization of net actuarial loss (gain) ​ — ​ — ​ ( 0.2 ) ​ ( 0.2 ) Amortization of prior service credit ​ — ​ — ​ ( 0.5 ) ​ ( 0.9 ) Net periodic benefit cost (credit) ​ $ ( 0.6 ) ​ $ ( 0.7 ) ​ $ ( 0.4 ) ​ $ ( 0.8 ) ​ ​ ​ 16. COMMITMENTS AND CONTINGENCIES ​ The Company’s commitments and contingencies are described in Note 17 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 . Contingencies and other litigation related matters are described as follows: ​ Environmental Matters: The Company faces certain risks that could result in material expenditures related to environmental remediation. The Company believes that based on all information currently available to it, the Company is currently in compliance, in all material respects, with applicable environmental laws and regulations. ​ Other Matters: The Company and its subsidiaries are parties to, or may be contingently liable in connection with, other legal actions arising in the normal course of their businesses, the outcomes of which, in the opinion of management after consultation with counsel, would not have a material effect on the Company’s financial condition, results of operations, or cash flows. ​ ​ ****** 16 Table of Contents