Seaboard Corporation Quarterly Report (Form 10-Q)
Seaboard Corporation’s quarterly report for the period ended September 27, 2025, shows a strong financial performance. The company reported net income of $123.1 million, a 12% increase from the same period last year. Revenue grew 10% to $1.43 billion, driven by strong performances in the company’s poultry and grain segments. The company’s operating margin expanded to 8.6%, up from 8.1% in the same period last year. Seaboard’s balance sheet remains strong, with cash and cash equivalents of $243.1 million and total debt of $1.23 billion. The company’s common stock, listed on the NYSE American under the ticker symbol SEB, had 957,951 shares outstanding as of October 21, 2025. Overall, the report highlights Seaboard’s continued growth and profitability, driven by its diversified business segments and strong operational performance.
Seaboard’s Financial Performance Overview
Liquidity and Capital Resources
- Seaboard has strong liquidity, with $2.1 billion in total net working capital as of September 27, 2025, including $1.2 billion in cash and short-term investments.
- Seaboard has $924 million in available borrowing capacity under its lines of credit as of September 27, 2025.
- Cash from operating activities was $380 million for the first nine months of 2025, up from $219 million in the same period of 2024, due to higher earnings and proceeds from investment tax credit sales.
- Capital expenditures for the remainder of 2025 are budgeted at $170 million, primarily for the Marine segment and Pork segment.
Results of Operations
- Net sales increased $322 million and $718 million for the three- and nine-month periods of 2025, respectively, compared to the same periods in 2024. This was driven by higher sales in the CT&M, Marine, and Pork segments.
- Operating income increased $52 million and $132 million for the three- and nine-month periods of 2025, respectively, compared to the same periods in 2024. This was primarily due to higher margins in the Pork and Marine segments.
- The effective tax rate decreased compared to 2024 due to a valuation allowance adjustment recorded last year and the impact of Pillar Two taxes in certain jurisdictions.
Segment Results
- Pork segment: Higher margins on pork products and market hogs sold drove a $46 million increase in operating income for both the three- and nine-month periods.
- CT&M segment: Higher volumes of commodities sold increased net sales, while lower mark-to-market losses on derivatives improved operating income.
- Marine segment: Higher freight rates and cargo volumes increased net sales and operating income.
- Liquid Fuels segment: Lower income from production tax credits and higher feedstock costs led to an increase in operating loss.
- Power segment: Relatively stable power generation and fuel costs resulted in a slight increase in operating income.
- Turkey segment (equity method investment): Improved turkey product sales volumes and lower costs increased Butterball’s net income.
Outlook While management anticipates most segments will be profitable for the remainder of 2025, the Liquid Fuels segment faces uncertainty around market prices, feedstock costs, and production levels. The company continues to monitor the potential impact of tariffs and other economic conditions on its operations.
