SEABOARD CORP /DE/
For the period ended Apr 4, 2026. Filed May 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 4, 2026 · Filed May 5, 2026
SEB$3,528.16+3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-27; filed 2025-10-28.
0000088121-25-000079
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-04-04; filed 2026-05-05.
0000088121-26-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 48 previous paragraphs and 47 current paragraphs.
20 unchanged; 14 reworded; 12 added; 14 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Seaboard did not repurchase any shares under its share repurchase program during the first quarter of 2026. As of April 4, 2026, $62 million remained available for repurchase under the program. Seaboard is not obligated to repurchase a minimum number of shares under the program, and Seaboard cannot predict when, or if, it will repurchase any shares or the amount of any such repurchases. See Note 6 to the condensed consolidated financial statements for more discussion of Seaboard’s share repurchase program.
Current report
During the first quarter of 2026, the Marine segment entered into an amended and restated LNG fuel supply contract for its LNG-fueled vessels. The total minimum fuel purchase commitment over the 8-year contract term beginning in February 2026 is approximately $335 million, based on market prices at quarter end for the variable price component. There were no other material updates to Seaboard’s obligations as discussed in the 2025 10-K.
Current report
Seaboard’s operations are heavily commodity-driven and financial performance for certain subsidiaries is very cyclical based on respective global commodity markets and trends in economic activity. The recent conflict involving Iran that began in late February has resulted in higher fuel prices, increased volatility in commodity markets and broader macroeconomic uncertainty, among other factors. Where possible, Seaboard’s segments pass on higher fuel costs through a fuel surcharge or other pricing mechanism. These conditions did not have a material impact on Seaboard’s first quarter 2026 results; however, the extent and duration of the conflict remain uncertain, and management continues to monitor developments. See Item 1A. Risk Factors for an update to the risk factors set forth in Seaboard’s 2025 10-K.
Current report
Net sales increased $84 million for the three-month period of 2026 compared to the same period in 2025. The increase primarily reflected higher sales of $76 million in the Liquid Fuels segment driven by increased volumes of fuel sold. See the net sales discussion by reportable segment below for more details.
Current report
Operating income increased $58 million for the three-month period of 2026 compared to the same period in 2025. The change primarily reflected an increase of $63 million in Liquid Fuels segment operating income and a $38 million increase in Pork segment operating income driven primarily by higher margins on products sold. These increases were partially offset by a $24 million decrease in CT&M segment operating income due to losses on mark-to-market derivative contracts and a $23 million decrease in Marine segment operating income due to lower freight rates and higher voyage-related costs. See the operating income discussion by reportable segment below for more details.
Current report
Seaboard computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income and adjusts for discrete items recorded during the period. The effective tax rate for the three-month period of 2026 decreased compared to the three-month period of 2025, with no material drivers for the decrease. A rate reconciling item can have a disproportionate impact on the effective tax rate when applied against a relatively low level of pre-tax earnings, such as for the first quarter of 2025. In July 2025, the U.S. signed into law the One Big Beautiful Bill Act (“OBBBA”). The OBBBA imposed various changes to U.S. federal income tax regulation, including restoring 100% bonus depreciation, removing the requirement to capitalize and amortize domestic research and development expenditures, increasing interest deductibility and reducing certain international deductions. The international effects of the OBBBA, effective beginning on January 1, 2026, were not material to Seaboard’s first quarter of 2026 income tax expense.
Current report
Net sales remained relatively flat for the three-month period of 2026 compared to 2025. The decrease in the volume of market hogs sold due to availability of hogs during the current period was mostly offset by an increase in the volume of pork products sold. This segment sells hogs to a non-consolidated affiliate for processing. Sale price fluctuations did not have a material impact on results during the current period.
Current report
The increase in operating income for the three-month period of 2026 compared to 2025 reflected higher margins on pork products and market hogs sold, due to a decrease in legal claims expense and, to a lesser extent, a decrease in feed costs of $19 million largely offset by increases in other production costs, driven by hog health. While management anticipates the Pork segment will be profitable for the remainder of 2026, no assurances can be made as it is difficult to predict market prices for pork products, the cost of production or third-party hogs, diseases and the impact of geopolitical events for future periods.
Current report
Net sales increased for the three-month period of 2026 compared to 2025 primarily due to a 10% increase in cargo volumes due to modest growth in several markets, partially offset by a 4% decrease in average freight rates due to competitive factors.
Current report
The increase in net sales for the three-month period of 2026 compared to the same period in 2025 primarily reflected higher fuel sales of $72 million, driven by sales volumes and fuel prices, which contributed $59 million and $13 million, respectively. The increase in volumes sold was attributable to higher production levels due to less downtime at the renewable diesel plant as compared to 2025, and increased prices reflected improved market conditions. Environmental credit sales were relatively flat due to higher sales prices, which increased sales $24 million, partially offset by lower volumes sold that decreased sales $19 million.
Current report
The increase in operating income for the three-month period of 2026 compared to 2025 primarily reflected higher margins on fuel sales and more income of $12 million from production tax credits related to higher production. Feedstock costs, used to produce biofuels, increased 18% as compared to 2025. Based on current market conditions, management anticipates this segment will be profitable for the remainder of 2026, but no assurances can be made as it is difficult to predict market prices for biodiesel, renewable diesel and credits, the cost of feedstock or production levels for future periods.
Current report
The increase in net sales for the three-month period of 2026 compared to 2025 reflected more power generation and higher spot market rates, due to a decrease in generation from lower variable-cost producers.
Removed paragraphs (14)
Previous report
Cash used in investing activities was $401 million for the nine months ended September 27, 2025, compared to $321 million in the same period of 2024. During the nine months ended September 27, 2025, Seaboard invested $427 million in property, plant and equipment, an increase of $54 million from the same period in the prior year. Of the total investment in 2025, $253 million was in the Marine segment, consisting primarily of installment payments on vessels under construction. Five new dual-fueled vessels were completed and delivered during the first nine months of 2025, and
Previous report
In the third quarter of 2025, the Power segment entered into an agreement to construct another power-generating barge for operation in the Dominican Republic that is expected to commence operations in 2028. The total cost estimate of this capital project is approximately $315 million, with installment payments due based on milestones achieved. A related fuel agreement was also signed during the third quarter with an estimated $1.3 billion commitment over the 10-year contract term beginning in 2028. There were no other material updates to Seaboard’s obligations as discussed in the 2024 10-K.
Previous report
Seaboard’s operations are heavily commodity-driven and financial performance for certain subsidiaries is cyclical based on respective global commodity markets and trends in economic activity. During 2025, the U.S. government imposed tariffs and trade restrictions on certain goods from some foreign jurisdictions, and in response to these actions, some countries imposed retaliatory tariffs on certain goods produced in the U.S. The impact of tariffs has not been material to Seaboard’s 2025 results; however, Seaboard continues to monitor the current uncertainties with tariffs. Seaboard cannot be certain of the outcome, which could indirectly or directly adversely impact its future financial condition and results of operations. See Item 1A. Risk Factors for further discussion of risks associated with tariffs.
Previous report
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. The increase for the three-month period primarily reflected higher CT&M segment sales of $235 million due to higher volumes of commodities sold, Marine segment sales of $51 million driven by higher cargo volumes and freight rates, and Pork segment sales of $41 million attributable to higher selling prices on pork products. The increase for the nine-month period primarily reflected higher CT&M segment sales of $482 million driven by higher volumes of commodities sold and Marine segment sales of $180 million due to higher cargo volumes and freight rates. See the net sales discussion by reportable segment below for more details.
Previous report
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. The three-month period primarily reflected increases in operating income of $46 million in the Pork segment due to higher margins of pork products and market hogs sold. The nine-month period primarily reflected an increase in operating income of $87 million in the Marine segment due to higher voyage revenue and $46 million in the Pork segment attributable to higher third-quarter margins on pork products and market hogs sold. See the operating income discussion by reportable segment below for more details.
Previous report
Seaboard computes its year-to-date provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income and adjusts for discrete items recorded during the period. The effective tax rate for the three- and nine-month periods of 2025 decreased compared to the same periods of 2024 primarily as a result of the $176 million valuation allowance adjustment that was recorded last year, partially offset by a decrease in the amount of investment tax credits generated due to less qualifying capital expenditure projects and the impact of incremental Pillar Two taxes. During the third quarter of 2024, Seaboard established a valuation allowance against its U.S. deferred tax asset balances as Seaboard’s U.S. operations were in a historical three-year cumulative loss position. Additional countries in which Seaboard has material operations, including the Isle of Man and The Bahamas, adopted Pillar Two rules effective in 2025. These jurisdictions had effective tax rates that were lower than 15% prior to implementing the new rules. Seaboard will continue to monitor legislative developments related to Pillar Two in the countries in which it operates and the potential impact on future results. The effective provisions of the OBBBA were reflected in Seaboard’s financial results for the three months ended September 27, 2025, and there was no material impact to income tax expense.
Previous report
The valuation allowance on certain U.S. deferred tax assets discussed above may reverse in the near future based upon forecasted financial results that could affect the realization of the deferred tax assets. An adjustment to reverse the valuation allowance would materially impact Seaboard’s income tax expense and effective tax rate. Given the inherent uncertainty involved with forecasts, there can be no assurance as to the timing or amount of the reversal, if any. See Note 8 to the condensed consolidated financial statements for further discussion of the valuation allowance.
Previous report
Net sales for the three-month period of 2025 compared to 2024 increased $60 million due to higher prices for pork products and market hogs sold, partially offset by lower volumes of pork products and market hogs sold, which decreased sales $17 million. Net sales for the nine-month period of 2025 compared to 2024 increased $97 million due to higher prices for pork products and market hogs sold, partially offset by lower volumes of market hogs and pork products sold, which decreased sales $79 million. Lower sales volumes were primarily due to the availability of hogs and timing of deliveries to the processing plants.
Previous report
The increase in operating income for the three-month period of 2025 compared to 2024 reflected higher margins on pork products and market hogs sold, primarily due to higher selling prices and lower feed costs of $33 million. Operating income for the nine-month period of 2025 compared to 2024 is largely attributable to third quarter results, as operating income was flat for the first half of 2025 compared to 2024. During the first half of 2025, higher margins on pork products and market hogs sold primarily due to higher selling prices and lower feed costs of $94 million were offset by a decrease in favorable adjustments to the lower of cost and net realizable value (“LCNRV”) inventory reserve in 2024 with no adjustments in 2025, and an increase in legal claims expense. With improved pork prices and lower grain commodity costs, the LCNRV inventory reserve decreased $42 million during the first half of 2024 and has not been needed since. While management anticipates the Pork segment will be profitable for the remainder of 2025, no assurances can be made as it is difficult to predict market prices for pork products, the cost of production or third-party hogs and the impact of tariffs for future periods.
Previous report
The increase in net sales for the three- and nine-month periods of 2025 compared to 2024 was primarily due to higher freight rates and cargo volumes. The increase in average freight rates was driven by various freight rate increases and a more favorable mix of cargo types. Cargo volumes increased 4% and 8% for the three- and nine-month periods of 2025 compared to 2024, respectively.
Previous report
The decrease in net sales for the three-month period of 2025 compared to 2024 was primarily due to the expiration of the federal blender’s tax credit as of December 31, 2024, as $41 million of credits were recognized during the three-month period of 2024 compared to none in 2025. This decrease was partially offset by increases in environmental credit sales of $36 million, which was primarily due to higher prices on RINs and LCFS credits. Fuel sales were relatively flat with higher prices that increased sales $20 million, offset by lower volumes that decreased sales $19 million. With the passage of the Inflation Reduction Act of 2022, the expired federal blender’s tax credit was replaced by a new clean fuel production tax credit that is recorded as a reduction to cost of sales. The increase in net sales for the nine-month period of 2025 compared to 2024 was driven by increases in fuel and environmental credit sales, partially offset by the expiration of the federal blender’s tax credit, as $88 million of credits were recognized during the nine-month period of 2024 compared to none in 2025. Higher prices and volumes of fuel sold increased sales $51 million and $21 million, respectively, for the nine-month period of 2025 compared to 2024. Higher volumes and prices of environmental credits sold increased sales $39 million
Previous report
and $35 million, respectively. The increase in volume of fuel and credits primarily related to renewable diesel sales as the renewable diesel plant was not operational for approximately four months during the first half of 2024 due to repairs as compared to regularly scheduled maintenance performed during June 2025.
Previous report
The increase in operating loss for the three-month period of 2025 compared to 2024 was primarily due to lower income recognized from the production tax credits as compared to the federal blender’s tax credits and 10% higher feedstock costs, partially offset by higher environmental credit revenue. The production tax credit for the three-month period in 2025 accounted for 40% of the total income generated by federal blender’s tax credits in the same three-month period in 2024, inclusive of volume fluctuations. The production tax credit value varies based on the greenhouse gas emissions factor of fuel produced. The decrease in operating loss for the nine-month period of 2025 compared to 2024 primarily reflected more consistent production and higher market prices for fuel and environmental credits, partially offset by less income recognized from production tax credits and 20% higher feedstock costs. Production tax credit income for the nine-month period in 2025 accounted for 54% of the total income generated by federal blender’s tax credits in the same nine-month period in 2024, inclusive of volume fluctuations. Based on current market conditions, management is uncertain whether this segment will be profitable for the remainder of 2025, and no assurances can be made as it is difficult to predict market prices for biodiesel, renewable diesel, environmental credits, production tax credits, the cost of feedstock, or production levels for future periods.
Previous report
Net sales increased slightly for both the three- and nine-month periods of 2025 compared to 2024, reflecting fairly stable power generation and limited impact from fluctuations in spot market rates.
Reworded paragraphs (14)
Previous wording
As of September 27, 2025, Seaboard had total net working capital of $2.1 billion, which includes $1.2 billion of cash and short-term investments. Of the total cash and short-term investments balance, $158 million was held by foreign subsidiaries. Seaboard considers substantially all foreign profits permanently reinvested in its foreign operations, except for previously-taxed undistributed earnings of Seaboard Marine. For all other foreign subsidiaries, Seaboard intends to continue permanently reinvesting their funds outside the U.S. as they continue to demonstrate no need to repatriate them to fund Seaboard’s U.S. operations for the foreseeable future. Seaboard has not recorded deferred taxes for state or foreign withholding taxes that would result upon repatriation of these funds to the U.S. as determination of the tax is not practical due to the complexity of the multi-jurisdictional tax environment in which Seaboard operates.
Current wording
As of April 4, 2026, Seaboard had cash and short-term investments of nearly $1.2 billion and additional net working capital of $1 billion. Of the total cash and short-term investments balance, $102 million was held by foreign subsidiaries.
Previous wording
Available borrowing capacity fluctuates based on changes to the terms of line of credit agreements and draws needed to fund operations. During the first quarter of 2025, Seaboard reduced its borrowing capacity under the committed line of credit from $450 million to $300 million and extended the maturity date to March 23, 2026. See Note 4 to the condensed consolidated financial statements for more discussion. Seaboard will continue to evaluate opportunities to access efficient financing in the markets where it operates, leveraging low-cost funding to support its operations.
Current wording
Available borrowing capacity fluctuates based on changes to the terms of line of credit agreements and draws needed to fund operations. During the first quarter of 2026, an uncommitted line of credit agreement, secured by eligible accounts receivable, that had up to $100 million of borrowing availability expired. Seaboard will continue to evaluate opportunities to access efficient financing in the markets where it operates, leveraging low-cost funding to support its operations.
Previous wording
Seaboard had long-term debt of $982 million as of September 27, 2025, which included a Term Loan due 2033 of $958 million. Current maturities of long-term debt were $14 million as of September 27, 2025.
Current wording
Seaboard had long-term debt of $988 million as of April 4, 2026, which included a Term Loan due 2033 of $950 million. Current maturities of long-term debt were $11 million as of April 4, 2026. See Note 4 to the condensed consolidated financial statements for more discussion of Seaboard’s lines of credit and long-term debt.
Previous wording
Cash from operating activities was $380 million for the nine months ended September 27, 2025, compared to $219 million in the same period of 2024. The change in operating cash flows was due to an increase in earnings, adjusted for non-cash items, of $147 million and $77 million of proceeds from investment tax credit sales, partially offset by an increase in cash used for working capital of $70 million. The working capital fluctuation was primarily inventory-related due to production tax credits in Seaboard’s Liquid Fuels segment, and to a lesser extent, timing of sales and inventory purchases in Seaboard’s CT&M segment. There have been no sales of production tax credits to monetize this inventory during 2025. The CT&M segment primarily handles large shipments of grain, and the associated timing of deliveries can result in significant working capital fluctuations across periods.
Current wording
Cash used in operating activities was $54 million for the first quarter of 2026, compared to $20 million for the same period in 2025. The change in operating activities cash flows was due to more cash used for working capital of $111 million, partially offset by an increase in net earnings, adjusted for non-cash items, of $56 million and more dividend payments received from equity method investments of $21 million. The increase in cash used for working capital was primarily due to increases in inventory balances, primarily in the Liquid Fuels segment. This segment’s fuel and tax credits inventory increases were driven by improved market conditions, more production and timing of sales.
Previous wording
the last of the original eight ordered vessels is expected to be delivered during the fourth quarter of 2025. In August 2025, Seaboard Marine entered into an agreement to build a ninth new vessel at approximately $75 million. The new dual-fueled vessels bring greater fuel efficiency, increased tonnage capacity and a host of other advantages to the Marine segment’s fleet and create a better overall fleet balance of owned and chartered vessels. Cash flows from investing activities for short-term investments are part of Seaboard’s overall liquidity management strategy. Short-term investment purchases are a result of the investment of excess cash, asset allocation from the active management of the portfolio and re-investment of matured securities. More cash proceeds from sale of investments partially funded increased cash used for long-term investments of $66 million, including $50 million in acompany that owns corporate debt securities discussed in Note 2 to the condensed consolidated financial statements.
Current wording
Cash used in investing activities was $87 million for the first quarter of 2026, compared to $55 million for the same period in 2025. During the three months ended April 4, 2026, Seaboard invested $96 million in property, plant and equipment, of which $44 million was in the Power segment, consisting primarily of installment payments for EDM IV, the new barge currently under construction. Cash flows from investing activities for short-term investments are part of Seaboard’s overall liquidity management strategy. Short-term investment purchases are a result of the investment of excess cash, asset allocation from the active management of the portfolio and re-investment of matured securities.
Previous wording
Cash from financing activities was $117 million for the nine months of 2025, compared to $152 million in the same period of 2024. Cash flows from financing activities primarily include draws and repayments under committed and uncommitted revolving facilities held with financial institutions across multiple jurisdictions and currencies. The daily needs for working capital primarily influence changes in Seaboard’s borrowing balances. During the second quarter of 2025, Seaboard’s Board of Directors approved a share repurchase program authorizing the repurchase of up to $100 million of its Shares. As of September 27, 2025, Seaboard had repurchased $38 million of Shares. The share repurchase program does not obligate Seaboard to acquire a minimum amount of Shares, and Seaboard cannot predict when, or if, it will repurchase any Shares or the amount of any such repurchases.
Current wording
Cash provided by financing activities was $74 million for the first quarter of 2026, compared to $62 million for the same period in 2025. Cash flows from financing activities primarily include draws and repayments under committed and uncommitted revolving facilities held with financial institutions across multiple jurisdictions and currencies. The daily needs for working capital primarily influence changes in Seaboard’s borrowing balances.
Previous wording
For the remainder of 2025, management has budgeted capital expenditures totaling approximately $170 million. The planned expenditures primarily include Marine segment installment payments on vessels under construction and various Pork segment investments. Management anticipates paying for these capital expenditures from a combination of available cash, use of available short-term investments and Seaboard’s available borrowing capacity.
Current wording
For the remainder of 2026, management has budgeted capital expenditures totaling approximately $460 million, which includes approximately $125 million for the Power segment’s expenditures related to the construction of EDM IV with the remainder relating to several individually immaterial projects across the remaining segments. Management anticipates funding these capital expenditures from a combination of available cash, the use of available short-term investments and Seaboard’s available borrowing capacity.
Previous wording
See Note 7 to the condensed consolidated financial statements for a reconciliation of net sales and operating income (loss) by reportable segment to consolidated net sales and consolidated operating income, respectively.
Current wording
See Note 7 to the condensed consolidated financial statements for a reconciliation of net sales and operating income (loss) by reportable segment to consolidated net sales and consolidated operating income (loss), respectively.
Previous wording
Net sales increased for the three- and nine-month periods of 2025 compared to 2024, primarily due to higher volumes of commodities sold, which increased sales $265 million and $768 million, respectively, partially offset by lower average sales prices on certain commodities, which decreased sales $30 million and $286 million, respectively. Sales prices for many of Seaboard’s products are directly affected by both domestic and worldwide supply and demand for commodities and competing products, all of which are determined by constantly changing market forces.
Current wording
Net sales decreased for the three-month period of 2026 compared to 2025, primarily due to lower volumes of certain commodities sold, which decreased sales $48 million, partially offset by higher average sales prices of 2%, which increased sales $28 million. Sales prices for many of Seaboard’s products are directly affected by both domestic and worldwide supply and demand for commodities and competing products, all of which are determined by constantly changing market forces.
Previous wording
Operating income increased for the three- and nine-month periods of 2025 compared to 2024, primarily due to decreases of $11 million and $29 million, respectively, in mark-to-market losses on derivative contracts, which continue to fluctuate until final delivery of product, partially offset by lower margins on certain commodities sold. While management anticipates positive operating income, excluding the effects of mark-to-market adjustments, for this segment for the remainder of 2025, no assurances can be made as it is difficult to predict worldwide commodity price fluctuations and the uncertain political and economic conditions in the countries in which this segment operates.
Current wording
Operating income decreased for the three-month period of 2026 compared to 2025, primarily due to an increase of $18 million in mark-to-market losses on derivative contracts, which continue to fluctuate until final delivery of product. While management anticipates positive operating income, excluding the effects of mark-to-market adjustments, for this segment for the remainder of 2026, no assurances can be made as it is difficult to predict worldwide commodity price fluctuations and the uncertain political and economic conditions in the countries in which this segment operates.
Previous wording
The increase in operating income for the three- and nine-month periods of 2025 compared to 2024 was primarily the result of higher voyage revenue, partially offset by higher voyage-related costs, such as stevedoring and slot costs, which are primarily driven by higher cargo volumes. Many of this segment’s costs are variable in nature and the overall expense amounts will fluctuate as volumes increase or decrease. While management anticipates this segment will be profitable for the remainder of 2025, no assurances can be made as it is difficult to predict changes in cargo volumes, cargo rates, fuel costs or other voyage costs for future periods.
Current wording
variable in nature and the overall expense amounts will fluctuate as volumes increase or decrease. While management anticipates this segment will be profitable for the remainder of 2026, no assurances can be made as it is difficult to predict changes in cargo volumes, cargo rates, fuel costs or other voyage costs for future periods.
Previous wording
Operating income increased slightly for the three-month period and decreased for the nine-month period of 2025 compared to 2024. The year-to-date decline was driven primarily by higher fuel costs of $11 million due to increases in consumption of heavy fuel oil, which is more expensive than natural gas, partially offset by less maintenance costs of $3 million. While management anticipates this segment will be profitable for the remainder of 2025, no assurances can be made as it is difficult to predict fuel costs or the extent that spot market rates will fluctuate due to fuel costs or other power producers for future periods. While EDM II, the oldest barge placed in service in 2012, remains in operation in the Dominican Republic, Seaboard continues to explore strategic alternatives for this barge, including a sale or relocation.
Current wording
Operating income remained relatively flat for the three-month period of 2026 compared to 2025, as the increase in net sales was mostly offset by higher fuel costs due to increased consumption and prices. While management anticipates this segment will be profitable for the remainder of 2026, no assurances can be made as it is difficult to predict fuel costs or the extent that spot market rates will fluctuate due to fuel costs or other power producers for future periods.
Previous wording
The Turkey segment represents Seaboard’s non-controlling 52.5% investment in Butterball, LLC (“Butterball”) which is accounted for using the equity method. The increase in Butterball’s net income of $40 million for the three-month period of 2025 compared to 2024 was primarily the result of increased sales attributable to 13% higher volumes and 4% higher prices of turkey products sold, combined with lower costs per pound of 4% primarily due to lower feed costs and improved bird health. Net income for the nine-month period of 2025 compared to 2024 was largely due to third quarter results as the first half of 2025 remained relatively flat, primarily driven by 7% higher production costs due to bird health issues offset by increased sales volumes of 8%, as sales prices were not materially different from prior periods. While management anticipates this segment will be profitable for the remainder of 2025, no assurances can be made as it is difficult to predict market prices for turkey products, the cost of production for future periods and impacts from diseases.
Current wording
The Turkey segment represents Seaboard’s non-controlling 52.5% investment in Butterball, LLC (“Butterball”), which is accounted for using the equity method. The improvement in Butterball’s net income for the three-month period of 2026 compared to 2025 primarily reflected increased margins on turkey products sold due to higher sales prices of 10% as commodity markets strengthened and the product sales mix shifted toward a greater concentration of value-added products, while production and processing costs were relatively flat. Volumes sold increased 8% during the current period. While management anticipates this segment will be profitable for the remainder of 2026, no assurances can be made as it is difficult to predict market prices for turkey products, the cost of production for future periods and impacts from diseases.
Previous wording
The preparation of Seaboard’s condensed consolidated financial statements requires Seaboard to make estimates, judgments and assumptions. A summary of significant accounting policies and critical accounting estimates is included in Seaboard’s 2024 10-K. Other than the update to significant accounting policies discussed in Note 1 to the condensed consolidated financial statements, there were no other changes to significant accounting policies or critical accounting estimates during the nine months ended September 27, 2025.
Current wording
The preparation of Seaboard’s condensed consolidated financial statements requires Seaboard to make estimates, judgments, and assumptions. A summary of significant accounting policies and critical accounting estimates is included in Seaboard’s 2025 10-K. There were no changes to significant accounting policies or critical accounting estimates during the three months ended April 4, 2026.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The decrease in operating income for the three-month period of 2026 compared to 2025 was primarily the result of lower freight rates and higher voyage-related costs primarily due to higher cargo volumes. Many of this segment’s costs are