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SEABOARD CORP /DE/ (SEB)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 net sales rose 12% year over year to $2.48B, with operating income at $52M and EPS at $105.22; sequentially, EPS rebounded sharply from $32.95 in Q1 2025 as Marine strength and Pork margin improvement offset CT&M mark-to-market headwinds .
  • Segment drivers: Marine delivered 144% YoY operating income growth (to $44M) on higher volumes and freight rates; Pork swung to $28M OI from a loss; Liquid Fuels narrowed losses on higher volumes/prices of fuel and credits, while CT&M’s OI fell on derivative mark-to-market .
  • Board declared a $2.25 dividend (payable Aug 18, 2025), and the company executed $24M of buybacks under the new $100M repurchase authorization; $910M borrowing capacity and $1.1B cash/short-term investments support capex and vessels under construction .
  • No formal guidance; management highlighted commodity/tariff uncertainty and continued marine fleet modernization (dual-fuel vessels) and a new $315M power barge commitment—key medium-term catalysts alongside operational improvements in Pork and Marine .

What Went Well and What Went Wrong

What Went Well

  • Marine strength: “The increase in operating income…was primarily the result of higher voyage revenue,” with volumes +9% and freight rates +9% YoY in Q2 .
  • Pork margin recovery: “Operating income…reflected higher margins on pork products and market hogs sold, primarily due to higher selling prices and lower feed costs” .
  • Liquidity and capital returns: Net working capital $2.1B with $1.1B cash/short-term investments; $24M buybacks executed with $76M remaining under the $100M authorization .

What Went Wrong

  • CT&M mark-to-market: “Operating income decreased…primarily due to an increase of $20 million in mark-to-market losses on derivative contracts,” reflecting commodity volatility .
  • Liquid Fuels still loss-making: Q2 operating loss of $(26)M despite higher volumes/prices; production tax credits are less valuable than expired blender’s credits per gallon .
  • Power margin pressure: OI decreased on lower/flat sales and higher heavy fuel consumption; EDM II strategic alternatives (sale/relocation) being explored .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Net Sales ($USD Billions)$2.482 $2.316 $2.480
Operating Income ($USD Millions)$114 $38 $52
Net Earnings Attributable to Seaboard ($USD Millions)$154 $32 $102
EPS ($USD)$158.58 $32.95 $105.22
Margin MetricQ4 2024Q1 2025Q2 2025
EBIT Margin %4.47%*1.64%*2.10%*
Net Income Margin %6.20%*1.38%*4.11%*
EBITDA Margin %8.34%*5.01%*5.32%*

Values with an asterisk were retrieved from S&P Global.

Segment net sales and operating income (external; YoY comparison):

Segment ($USD Millions)Q2 2024 Net SalesQ2 2025 Net SalesQ2 2024 Operating IncomeQ2 2025 Operating Income
Pork$540 $529 $(4) $28
CT&M$1,131 $1,343 $34 $7
Marine$325 $383 $18 $44
Liquid Fuels$118 $146 $(27) $(26)
Power$59 $54 $18 $9
Corporate/All Other$36 $25 $(9) $(10)

Selected KPIs and operational items:

KPIQ2 2024Q2 2025
Marine cargo volumes (YoY change)—+9%
Marine average freight rates (YoY change)—+9%
Shares repurchased (Q2)—8,579 shares; $24M
Short-term investments$1,075M (Dec 31, 2024) $986M (Jun 28, 2025)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ3 2025$2.25 (Q1 declaration) $2.25 payable Aug 18, 2025; record Aug 8, 2025 Maintained
Share repurchase authorizationThrough 2027None$100M authorized (May 21, 2025); $76M remaining as of Q2 New
Capex budget (remainder of 2025)H2 2025Not disclosed~$385M planned, primarily Marine vessels and Pork investments New/updated plan
Power barge project (Dominican Republic)2025–CompletionN/A~$315M total; ~$40M H2 2025 payments New commitment

Earnings Call Themes & Trends

Note: Seaboard did not provide an earnings call transcript; management disclosures were via 10-Q and press release – .

TopicPrevious Mentions (Q-2: Q4 2024)Previous Mentions (Q-1: Q1 2025)Current Period (Q2 2025)Trend
Marine fleet and pricingLimited disclosure in 8-K Limited disclosure in 8-K Volumes +9%, rates +9%; multiple dual-fuel vessels delivered/expected in 2025 Improving capacity and pricing
Pork margins/feed costsLimited disclosure in 8-K Turned profitable; EPS low Higher margins on pork and hogs driven by prices, lower feed costs Improving margins
CT&M derivative impactsLimited disclosure in 8-K Limited disclosure in 8-K OI down on mark-to-market losses; price/volume mix dynamics Volatile due to derivatives
Liquid Fuels tax creditsN/AClean fuel production tax credit adopted in 2025; plant downtime in 1H24 Loss narrowed; credits less valuable than blender’s credit; volumes/prices up Operational normalization; lower per-gallon credits
Tariffs/macroN/ATariff changes introduced in April 2025 Not material in Q2; continued uncertainty Elevated macro risk
Capital allocationQuarterly dividends maintained Dividend maintained $100M buyback authorized; $24M executed; dividend maintained More shareholder returns
Regulatory/legalN/AN/AHelms-Burton: trial set Feb 2026; Pork antitrust settlements; ongoing litigation –Ongoing legal overhang

Management Commentary

  • “Seaboard’s operations are heavily commodity-driven and financial performance…is very cyclical based on respective global commodity markets and trends in economic activity” .
  • Pork: “Operating income…reflected higher margins on pork products and market hogs sold, primarily due to higher selling prices and lower feed costs” .
  • Marine: “The increase in operating income…was primarily the result of higher voyage revenue, partially offset by higher voyage-related costs,” with volumes and rates both up 9% YoY .
  • Liquid Fuels: “The production tax credit value…is less than the federal blender’s credit on a per-gallon basis” .
  • Power: “Operating income decreased…driven by…higher fuel costs due to increases in heavy fuel consumption…Seaboard continues to explore strategic alternatives for [EDM II]” .
  • Liquidity: “Available borrowing capacity as of June 28, 2025: $910 million,” net working capital $2.1B including $1.1B cash and short-term investments .

Q&A Highlights

No earnings call/Q&A transcript was provided for Q2 2025; disclosures were via the 10-Q and press release – .

Estimates Context

Consensus estimates from S&P Global for Q2 2025 were unavailable for EPS and limited/absent for revenue and EBITDA; we therefore benchmark to actuals only. Values retrieved from S&P Global.

MetricQ2 2025 ActualQ2 2025 Consensus
Revenue ($USD Billions)$2.480 Unavailable
EPS ($USD)$105.22 Unavailable
EBITDA ($USD Millions)$132.0 (actual)*Unavailable
EBIT ($USD Millions)$52.0 Unavailable

Values with an asterisk were retrieved from S&P Global.

Given the lack of consensus, we expect limited sell-side revisions; any adjustments would likely reflect segment mix (Marine upside, CT&M derivative noise) and ongoing commodity/tariff sensitivities .

Key Takeaways for Investors

  • Marine momentum is the primary near-term earnings driver; capacity additions and pricing support further gains if volumes sustain and voyage costs remain manageable .
  • Pork margins are improving on pricing and feed cost relief; watch hog availability and export dynamics amid tariff uncertainty (China exposure modest historically) .
  • CT&M profitability remains susceptible to derivative mark-to-market; expect quarter-to-quarter volatility as commodity markets swing .
  • Liquid Fuels loss narrowed, but per-gallon incentives are structurally lower versus 2024 blender’s credit; track production stability and credit pricing .
  • Capital allocation is turning more shareholder-friendly: $100M buyback and sustained $2.25 dividend, supported by strong liquidity and borrowing capacity .
  • Legal overhangs persist (Helms-Burton trial 1Q26; pork litigation tail), but management does not expect material adverse long-term effects; idiosyncratic risk remains for specific quarters –.
  • Medium-term catalysts include marine fleet modernization, the $315M power barge project, and potential tariff normalization; macro/commodity path will shape earnings trajectory .