SEABOARD CORP /DE/

Previous wording

As of July 4, 2026, Seaboard had cash and short-term investments of nearly $1.2 billion and additional net working capital of $1.2 billion. Of the total cash and short-term investments balances, $136 million was held by foreign subsidiaries.

Current wording

As of October 3, 2026, Seaboard had cash and short-term investments of nearly $1.5 billion and additional net working capital of $947 million. Of the total cash and short-term investments balances, $148 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. Seaboard will continue to evaluate opportunities to access cost-effective financing in the markets where it operates, leveraging low-cost funding sources 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 third quarter of 2026, Seaboard exercised the accordion feature under its committed line of credit agreement, increasing the borrowing capacity under that facility from $300 million to $400 million. Seaboard will continue to evaluate opportunities to access cost-effective financing in the markets where it operates, leveraging low-cost funding sources to support its operations.

Previous wording

Seaboard had long-term debt of $972 million as of July 4, 2026, which included a Term Loan due 2033 of $948 million. Current maturities of long-term debt were $11 million as of July 4, 2026. See Note 4 to the condensed consolidated financial statements for more discussion of Seaboard’s lines of credit and long-term debt.

Current wording

Seaboard had long-term debt of $969 million as of October 3, 2026, which included a Term Loan due 2033 of $945 million. Current maturities of long-term debt were $10 million as of October 3, 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 used in operating activities was $30 million for the six months ended July 4, 2026, compared to cash provided by operating activities of $61 million for the same period in 2025. This change was primarily due to a $160 million increase in cash used for working capital, partially offset by a $59 million increase in dividend payments received from equity method investments. The increase in cash used for working capital was attributable to increases in inventory, primarily due to the timing of sales and inventory purchases in Seaboard’s CT&M segment, and accounts receivable, related to higher sales in the Liquid Fuels and CT&M segments. The CT&M segment handles large shipments of grain, so the timing of these deliveries can result in significant working capital fluctuations across periods. During the second quarter of 2026, Seaboard sold 2025 production tax credits, accounted for as inventory, and received proceeds of $55 million, net of discount and transaction fees. The increases in inventory and accounts receivable were partially offset by the timing of accounts payable disbursements.

Current wording

Cash provided by operating activities was $236 million for the nine months ended October 3, 2026, compared to $380 million for the same period in 2025. This change was primarily due to a $172 million increase in cash used for working capital, partially offset by a $79 million increase in dividend payments received from affiliates. The increase in cash used for working capital was attributable to increases in inventory, primarily due to the timing of sales and inventory purchases in Seaboard’s CT&M segment. The CT&M segment handles large shipments of grain, so the timing of these deliveries can result in significant working capital fluctuations across periods. During the second quarter of 2026, Seaboard sold 2025 production tax credits, which were accounted for as inventory, generating net cash proceeds of $55 million after discount and transaction fees.

Previous wording

Cash used in investing activities was $137 million for the six months ended July 4, 2026, compared to $201 million for the same period in 2025. This change was primarily due to lower capital expenditures of $62 million. During the six months ended July 4, 2026, Seaboard invested $198 million in property, plant and equipment, including $79 million in the Power segment, consisting primarily of installment payments for EDM IV, a 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 result from the investment of excess cash, asset allocation decisions arising from the active management of the portfolio and re-investment of matured securities. Seaboard continues to explore strategic acquisitions and investments to further grow and diversify its operations.

Current wording

Cash used in investing activities was $465 million for the nine months ended October 3, 2026, compared to $401 million for the same period in 2025. This change was primarily due to a $280 million increase in net purchases of short-term investments, partially offset by lower capital expenditures of $128 million. Cash flows from investing activities for short-term investments are part of Seaboard’s overall liquidity management strategy. Short-term investment purchases result from the investment of excess cash, asset allocation decisions arising from the active management of the portfolio and re-investment of matured securities. During the nine months ended October 3, 2026, Seaboard invested $299 million

Previous wording

Cash provided by financing activities was $133 million for the six months ended July 4, 2026, compared to $150 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. Changes in Seaboard’s borrowing balances are primarily driven by its daily working capital needs. Seaboard did not repurchase any shares under its share repurchase program during the six months of 2026. As of July 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 wording

Cash provided by financing activities was $209 million for the nine months ended October 3, 2026, compared to $117 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. Changes in Seaboard’s borrowing balances are primarily driven by its daily working capital needs. Seaboard did not repurchase any shares under its share repurchase program during the first nine months of 2026 compared to repurchases of $38 million during the first nine months of 2025. As of October 3, 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.

Previous wording

For the remainder of 2026, management has budgeted capital expenditures totaling approximately $305 million, including approximately $60 million for the Power segment’s construction of EDM IV, with the remainder allocated to several individually immaterial projects across the remaining segments. Management anticipates funding these capital expenditures through a combination of available cash, proceeds from sales of short-term investments and Seaboard’s available borrowing capacity.

Current wording

For the remainder of 2026, management has budgeted capital expenditures totaling approximately $145 million. Management anticipates funding these capital expenditures through a combination of available cash, proceeds from sales of short-term investments and Seaboard’s available borrowing capacity.

Previous wording

Seaboard’s operations are heavily commodity-driven, and the financial performance for certain subsidiaries is highly cyclical, depending on trends in the applicable global commodity markets and broader economic activity. The conflict involving Iran, which began in late February 2026 and continued through the second quarter, has resulted in higher fuel prices, higher shipping costs, 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. See Item 1A. Risk Factors for an update to the risk factors set forth in Seaboard’s 2025 10-K.

Current wording

Seaboard’s operations are heavily commodity-driven, and the financial performance for certain subsidiaries is highly cyclical, depending on trends in the applicable global commodity markets and broader economic activity. The conflict involving Iran, which began in late February 2026 and continues, has primarily impacted Seaboard’s results through higher fuel prices. See Item 1A. Risk Factors for an update to the risk factors set forth in Seaboard’s 2025 10-K.

Previous wording

Net sales increased $442 million and $526 million for the three- and six-month periods of 2026, respectively, compared to the corresponding periods in 2025. These increases were driven primarily by higher Liquid Fuels segment sales of $224 million and $300 million, respectively, due to increased environmental credit and fuel sales, and higher CT&M segment sales of $208 million and $188 million, respectively, due to increased volumes of commodities sold. See the net sales discussion by reportable segment below for more details.

Current wording

Net sales increased $231 million and $757 million for the three- and nine-month periods of 2026, respectively, compared to the corresponding periods in 2025. These increases were driven primarily by higher CT&M segment sales of $151 million and $339 million, respectively, due to increased volumes of commodities sold, and higher Liquid Fuels segment sales of $134 million and $434 million, respectively, due to increased fuel and environmental credit sales, partially offset by lower Pork segment sales of $73 million and $101 million, respectively, due to decreased prices of pork products and market hogs sold. See the net sales discussion by reportable segment below for more details.

Previous wording

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, adjusted for discrete items recorded during the period. The effective tax rate for the three- and six-month periods of 2026 increased compared to the corresponding periods of 2025, primarily because Seaboard recognized less U.S. income tax expense in 2025 due to its U.S. valuation allowance position. In July 2025, the U.S. enacted the One Big Beautiful Bill Act (“OBBBA”). The international effects of the OBBBA, effective beginning on January 1, 2026, were not material to the three- and six-month periods ended July 4, 2026.

Current wording

The effective tax rate for the three- and nine-month periods of 2026 increased compared to the corresponding periods of 2025, primarily because Seaboard recognized less U.S. income tax expense in 2025 due to its U.S. valuation allowance position.

Previous wording

The decrease in net sales for the three- and six-month periods of 2026 compared to corresponding periods in 2025 primarily reflected lower prices and volumes of pork products sold. Lower market prices decreased sales by $18 million and $19 million, respectively, and lower volumes, driven by reduced availability of hogs, decreased sales by $17 million and $13 million, respectively. Market hog sales were relatively flat for both the three- and six-month periods, as a slight increase in volumes sold to a non-consolidated affiliate for processing were mostly offset by decreased prices. Market prices for pork products and hogs remain inherently volatile and can fluctuate significantly in response to shifts in domestic and global supply and demand.

Current wording

The decrease in net sales for the three- and nine-month periods of 2026 compared to the corresponding periods in 2025 primarily reflected lower prices, and to a lesser extent, lower volumes of pork products sold. Lower market prices for pork products decreased sales by $49 million and $64 million, respectively, and lower volumes, driven by reduced availability of hogs, decreased sales by $8 million and $25 million, respectively. Market hog sale prices decreased net sales for the three- and nine-month periods of 2026 by $16 million and $19 million, respectively. Market prices for pork products and hogs remain inherently volatile and can fluctuate significantly in response to shifts in domestic and global supply and demand.

Previous wording

The decrease in operating income for the three-month period of 2026 compared to the same period in 2025 primarily reflected lower sales prices and higher costs per unit of pork products sold, partially offset by lower production costs due to the decrease in volumes. The increase in operating income for the six-month period of 2026 compared to the same period in 2025 primarily reflected a decrease in legal claims expense, and to a lesser extent, a decrease in feed costs of $23 million primarily due to volumes, partially offset by lower prices on pork products sold. Margins on market hog sales for the three- and six-month periods compared to the corresponding periods in 2025 were primarily flat as lower sales prices were largely offset by lower production costs, including feed. Based on current market conditions, management is uncertain whether this segment will be profitable for the remainder of 2026, and no assurances can be made as it is difficult to predict market prices for pork products, the cost of production or third-party hogs, the effect of disease and the impact of geopolitical events for future periods.

Current wording

The decrease in operating income for the three-month period of 2026 compared to the same period in 2025 primarily reflected lower sales prices, a $51 million lower of cost and net realizable value (“LCNRV”) inventory adjustment, and to a lesser extent, higher overall hog production costs, of which a portion is driven by reduced availability of hogs. During the third quarter of 2026, the Pork segment recorded an LCNRV inventory adjustment resulting from a decline in forecasted pork prices and higher forecasted production costs, including feed. The decrease in operating income for the nine-month period compared to the same period in 2025 primarily reflected lower sales prices and the inventory adjustment discussed above. Higher overall hog production costs also decreased operating income but were offset by a decrease in legal claims expense for the nine-month period of 2026 compared to the same period in 2025. Based on current market conditions, management anticipates this segment will not be profitable for the remainder of 2026, and no assurances can be made regarding future results as it is difficult to predict market prices for pork products, the cost of production or third-party hogs, the effect of disease and the impact of geopolitical events for future periods.

Previous wording

Net sales increased for the three- and six-month periods of 2026 compared to the corresponding periods in 2025, primarily due to higher volumes of certain commodities sold, which increased sales by $196 million and $148 million, respectively. A 1% increase in average sales prices further increased sales by $12 million and $40 million, respectively, for the three- and six-month periods of 2026 compared to the corresponding periods in 2025. 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 increased for the three- and nine-month periods of 2026 compared to the corresponding periods in 2025, primarily due to higher volumes of certain commodities sold, which increased sales by $101 million and $249 million, respectively. Increases of 3% and 2% in average sales prices further increased sales by $50 million and $90 million for the three- and nine-month periods of 2026 compared to the corresponding periods in 2025, 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.

Previous wording

Operating income remained relatively flat for the three-month period of 2026 compared to the same period in 2025, as slightly higher margins at certain mills were mostly offset by reduced trading margins. Operating income decreased for the six-month period of 2026 compared to the same period in 2025 due to increases in costs, including $20 million of mark-to-market losses on derivative contracts, which will continue to fluctuate until final delivery of the product. While management anticipates positive operating income for this segment for the remainder of 2026, excluding the effects of mark-to-market adjustments, 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 increased for the three-month period of 2026 compared to the same period in 2025, primarily due to an increase of $15 million in mark-to-market gains on commodity derivative contracts, which will continue to fluctuate until final product delivery. Operating income decreased for the nine-month period of 2026 compared to the same period in 2025 due to increases of $5 million in mark-to-market losses on commodity derivative contracts and $13 million in selling, general and administrative expenses primarily due to salaries and benefits, partially offset by higher margins at certain mills due to higher selling prices and lower commodity costs. While management anticipates positive operating income for this segment for the remainder of 2026, excluding the effects of mark-to-market adjustments, no assurances can be

Previous wording

The decrease in operating income for the three- and six-month periods of 2026 compared to the corresponding periods in 2025 was primarily due to higher overall voyage-related costs, including port and canal, stevedoring, terminal services and trucking costs. Many of this segment’s costs are variable in nature, and overall expense amounts will fluctuate as volumes increase or decrease. Vessel fuel costs increased $19 million and $26 million for the three- and six-month periods of 2026, respectively, compared to the corresponding periods in 2025, primarily due to higher market 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 changes in cargo volumes, cargo rates, fuel costs or other voyage costs for future periods.

Current wording

The increase in operating income for the three-month period of 2026 compared to the same period in 2025 was primarily the result of higher voyage revenue. The decrease in operating income for the nine-month period of 2026 compared to the same period in 2025 was primarily the result of higher overall voyage-related costs, including bunkers, port, canal, stevedoring, terminal services and trucking costs. Many of this segment’s costs are variable in nature, and overall expense amounts will fluctuate as volumes increase or decrease. Vessel fuel costs increased $12 million and $37 million for the three- and nine-month periods of 2026, respectively, compared to the corresponding periods in 2025, primarily due to higher market 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 changes in cargo volumes, cargo rates, fuel costs or other voyage costs for future periods.

Previous wording

The increase in net sales for the three- and six-month periods of 2026 compared to the corresponding periods in 2025 reflected higher environmental credit sales of $138 million and $143 million, respectively, and higher fuel sales of $86 million and $157 million, respectively. Higher environmental credit market prices increased net sales by $81 million and $105 million, respectively, while higher environmental credit volumes sold, primarily due to more production and inventory, increased net sales by an additional $57 million and $38 million, respectively. On March 27, 2026, the Environmental Protection Agency finalized the 2026 and 2027 renewable volume obligations, which increased demand and, in turn, certain environmental credit prices during the second quarter of 2026. Higher fuel prices increased sales by $70 million and $83 million, respectively, and higher fuel sale volumes increased sales $16 million and $74 million, respectively, for the three- and six-month periods of 2026. The increased fuel prices reflected market conditions, while the increase in sales volumes was attributable to higher production levels resulting from more consistent production at the renewable diesel plant as compared to 2025.

Current wording

The increase in net sales for the three- and nine-month periods of 2026 compared to the corresponding periods in 2025 reflected higher fuel sales of $68 million and $225 million, respectively, and higher environmental credit sales of $66 million and $209 million, respectively. Higher fuel prices increased sales by $61 million and $142 million, respectively, and higher fuel sales volumes increased sales by $7 million and $83 million, respectively, for the three- and nine-month periods of 2026. The increased fuel prices reflected higher prevailing market prices, while the increase in sales volumes was attributable to higher production levels. Higher environmental credit market prices increased net sales by $50 million and $154 million, respectively, while higher environmental credit volumes sold, primarily due to more production and inventory on hand, increased net sales by an additional $16 million and $55 million, respectively.

Previous wording

The increase in operating income for the three- and six-month periods of 2026 compared to the corresponding periods in 2025 primarily reflected higher sales prices, partially offset by higher production costs, including increased feedstock costs of 64% and 77%, respectively, for the three- and six-month periods of 2026 compared to the corresponding periods in 2025. Income from production tax credits increased $5 million and $17 million, respectively, related to more production. 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 wording

The increase in operating income for the three- and nine-month periods of 2026 compared to the corresponding periods in 2025 primarily reflected higher sales prices, partially offset by higher production costs, including feedstock costs, which increased 31% and 57%, respectively, for the three- and nine-month periods of 2026 compared to the corresponding periods in 2025. Income from production tax credits increased $5 million and $21 million, respectively, primarily related to more production. During the last week of the quarter, the renewable diesel plant was shut down for regularly scheduled maintenance, with operations expected to resume in November 2026. Despite the scheduled downtime and 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.

Previous wording

The increase in operating income for the three- and six-month periods of 2026 compared to the corresponding periods in 2025 was driven by the increase in net sales, partially offset by higher fuel costs resulting from increased prices and consumption. Subsequent to quarter end, a routine inspection of EDM III, the power-generating barge that began operations in 2022, identified damage requiring repair. As a result, this barge will be nonoperational for an undetermined period. Based on current circumstances, management is uncertain whether this segment will be profitable for the remainder of 2026, and no assurances can be made as it is difficult to predict the duration of repair for EDM III, fuel costs or the extent that spot market rates will fluctuate due to fuel costs or other power producers for future periods.

Current wording

The decrease in operating income for the three-month period of 2026 compared to the same period in 2025 was driven by lower net sales, partially offset by lower costs, primarily due to less fuel consumption with EDM III being down. The decrease in operating income for the nine-month period of 2026 compared to the same period in 2025 was driven by lower net sales. Lower fuel consumption was offset by higher fuel prices and other operational costs. Based on current circumstances, management anticipates this segment will not be profitable for the remainder of 2026, but no assurance 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 for the three- and six-month periods of 2026 compared to the corresponding periods in 2025 was primarily driven by higher turkey product sales resulting from increases in both sales prices and sales volumes. Sales prices increased 10% for each period reflecting continued strength in commodity markets and a greater concentration of value-added products in the sales mix. Sales volumes increased 6% for each period. Production and plant costs had an immaterial impact on results as improved fixed-cost absorption from higher volumes helped offset any cost increases. Although commodity turkey market prices have continued to decline over the first half of the year, management currently anticipates this segment will be profitable for the remainder of 2026. However, 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 noncontrolling 52.5% investment in Butterball, LLC (“Butterball”) which is accounted for using the equity method. The decrease in Butterball’s net income for the three-month period of 2026 compared to the same period in 2025 was primarily driven by a legal settlement. Higher turkey product sales resulting from increases in both sales prices and sales volumes were partially offset by higher production costs, including feed and transportation costs. The increase in Butterball’s net income for the nine-month period of 2026 compared to the same period in 2025 was primarily driven by higher turkey product sales resulting from increases in both sales prices and sales volumes, partially offset by the legal settlement in the third quarter. Sales prices increased 6% and 9%, respectively, reflecting a greater concentration of value-added products in the sales mix and stronger commodity markets. Sales volumes increased 3% and 5%, respectively. Changes in production and plant costs for all periods presented had an immaterial impact on results as improved fixed-cost absorption from higher volumes helped offset any cost increases. 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 2025 10-K. There were no changes to significant accounting policies or critical accounting estimates during the six months ended July 4, 2026.

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 critical accounting estimates during the nine months ended October 3, 2026.