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SEABOARD CORP /DE/ (SEB)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 delivered broad-based improvement: net sales $2.54B (+14.5% YoY) and operating income $84M (vs. $32M) as Pork margins recovered on higher prices and lower feed, Marine benefited from stronger freight rates/volumes, and CT&M volume gains offset commodity price headwinds .
  • EPS of $113.71 rose sequentially (+8% QoQ) and swung from a loss in Q3’24 (valuation allowance last year), aided by higher operating profit and investment/affiliate income; dividend maintained at $2.25 per share (payable Nov 17) .
  • Liquid Fuels remained the primary drag as the new production tax credit yields materially less income than the prior blender’s credit and feedstock costs rose; management remains uncertain on segment profitability for the rest of 2025 .
  • Strategic/cycle drivers: Marine fleet renewal and utilization (five dual-fueled vessels delivered YTD) underpin earnings quality; Pork margins improved on feed costs; Turkey (Butterball) delivered outsized equity income on better volume/price and costs; watch 2026 legal calendar (Helms–Burton trial window begins Feb 2026) and capex/commitments tied to Marine and Power growth .

What Went Well and What Went Wrong

  • What Went Well

    • Pork margin recovery: “higher margins on pork products and market hogs sold, primarily due to higher selling prices and lower feed costs of $33 million” in Q3; segment operating income rose to $58M (vs. $12M) .
    • Marine momentum: Net sales +$51M on “higher freight rates and cargo volumes” with volumes +4% YoY; operating income improved to $18M (vs. $(1)M) .
    • Turkey (Butterball) outsized contribution: equity income $26M (vs. $6M), driven by “13% higher volumes and 4% higher prices” and “lower costs per pound of 4%” .

  • What Went Wrong

    • Liquid Fuels headwinds: Operating loss widened to $(37)M (vs. $(24)M) as the new clean fuel production tax credit produced ~40% of prior blender’s credit value in the quarter and feedstock costs were ~10% higher; RIN/LCFS strength only partially offset .
    • Working capital intensity: No sales of production tax credits to monetize Liquid Fuels inventory in 2025; CT&M timing of large grain shipments continues to drive working capital volatility .
    • Legal overhang: Helms–Burton case partially revived on appeal with trial window beginning Feb 9, 2026; Pork antitrust direct actions remain pending despite broad settlements (timing of remands/trials uncertain) .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Net Sales ($USD Billions)$2.218 $2.316 $2.480 $2.540
Operating Income ($USD Millions)$32 $38 $52 $84
Net Earnings Attributable to Seaboard ($USD Millions)$(149) $32 $102 $109
EPS ($/share)$(153.44) $32.95 $105.22 $113.71
  • QoQ change (Q3 vs Q2): Net Sales +2.4% ], Operating Income +61.5% ], EPS +8.1% ].
  • YoY change (Q3’25 vs Q3’24): Net Sales +14.5% ], Operating Income +162.5% ], EPS NM vs loss ].

Segment breakdown – External Net Sales and Operating Income (Q3):

SegmentNet Sales Q3 2024 ($M)Net Sales Q3 2025 ($M)YoY $Operating Income Q3 2024 ($M)Operating Income Q3 2025 ($M)YoY $
Pork493 534 +4112 58 +46
CT&M1,115 1,350 +23531 37 +6
Marine324 375 +51(1) 18 +19
Liquid Fuels182 178 (4)(24) (37) (13)
Power66 69 +320 21 +1
Turkey (equity income)N/AN/A—6 26 +20

KPIs and operational drivers:

KPIQ3 2024Q3 2025Commentary
Marine cargo volume change—+4% YoY Also higher freight rates on more favorable mix
Pork margin drivers—+$33M margin tailwind from lower feed costs in Q3 Prices higher; some volume constraints from hog availability/timing
Liquid Fuels – Env. credit salesBaseline+$36M YoY increase in Q3 RIN/LCFS prices higher; tax credit regime shift reduces income
Turkey volume/price/cost—Vol +13%, Price +4%, Cost/ lb −4% YoY Drove large equity pickup

Estimates vs actuals (S&P Global):

Metric (Q3 2025)ActualS&P Global ConsensusBeat/Miss
Revenue$2.540B N/A (no consensus published)*N/A
EPS$113.71 N/A (no consensus published)*N/A

*Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/CommentaryChange
DividendNext payment$2.25 per share $2.25 per share declared; payable Nov 17, 2025 Maintained
Pork profitabilityRemainder 2025—Management “anticipates the Pork segment will be profitable for the remainder of 2025,” with caution on prices/costs/tariffs Qualitative positive
Marine profitabilityRemainder 2025—Management anticipates profitability to continue; volumes/rates/fuel costs remain variables Qualitative positive
Liquid Fuels profitabilityRemainder 2025—Management is “uncertain whether this segment will be profitable” given credit regime and feedstock costs Cautious/negative
Power profitabilityRemainder 2025—Management anticipates profitability; fuel mix costs are a swing factor Qualitative positive
Turkey profitabilityRemainder 2025—Management anticipates profitability; disease/cost risks remain Qualitative positive
FY25 Capex4Q25 + full-year—~$170M budgeted for remainder of 2025; Marine vessels and Pork investments New/affirmed plan
Share repurchaseThrough 2027$100M authorization (announced Q2) $62M remaining; repurchased $38M YTD Ongoing

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was found in our document set; themes below draw on MD&A and filings.

TopicPrevious Mentions (Q2 & Q1)Current Period (Q3 2025)Trend
Marine rates/volumesLimited narrative in Q1/Q2 press releases Rates up; cargo volumes +4% YoY; profit improved Improving
Pork margins/feed costsLimited narrative in Q1/Q2 press releases Higher selling prices and lower feed costs (+$33M effect) drove margin expansion Improving
Liquid Fuels policy & credits—Production tax credit ~40% of prior blender’s credit in Q3; higher feedstock costs; uncertainty on profitability Negative vs 2024 credit regime
Capital deployment (Marine fleet)—Five dual-fueled vessels delivered YTD; ninth vessel ordered (~$75M) Increasing asset base/efficiency
Power growth & commitments—New 150MW barge (~$315M), fuel contract ~$1.3B over 10 years from 2028 Investment ramp for 2028 start
Legal/regulatory—Helms–Burton trial window set Feb 2026; pork antitrust direct actions pending; settlements progressed Overhang persists

Management Commentary

  • “Net sales increased $322 million… primarily [CT&M] higher volumes, [Marine] higher cargo volumes and freight rates, and [Pork] higher selling prices” .
  • “Operating income increased $52 million… increases in operating income of $46 million in the Pork segment… higher margins of pork products and market hogs sold” .
  • “The increase in average [Marine] freight rates was driven by various freight rate increases and a more favorable mix of cargo types… cargo volumes increased 4%” .
  • “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” .
  • “Management has budgeted capital expenditures totaling approximately $170 million [for the remainder of 2025]” .

Q&A Highlights

No Q3 2025 earnings call transcript was identified; the company’s press release and 10‑Q constitute the primary disclosures for this quarter .

Estimates Context

  • S&P Global shows no published Wall Street consensus for EPS or revenue for Q3 2025, indicating limited analyst coverage for SEB; therefore, no beat/miss determination is available.*
  • Actuals: Revenue $2.540B; EPS $113.71 (both per company filings) .

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Mix/price and cost tailwinds lifted profitability: Pork margin recovery and Marine pricing/volume supported a clean sequential step-up in operating income to $84M (+62% QoQ) .
  • Liquid Fuels remains the main drag; policy shift to production tax credits meaningfully reduced credit income vs 2024, and higher feedstock costs tightened economics; management non-committal on profitability near term .
  • Structural earnings quality improving in Marine with new dual‑fuel vessels delivered (efficiency, capacity, fleet balance); ninth vessel signed at ~$75M extends the cycle into 2026+ .
  • Equity income from Turkey (Butterball) is a notable upside lever given double‑digit volume gains, pricing, and lower costs per lb; watch for sustainability into holiday seasonality .
  • Capital intensity rising near to mid‑term: $170M capex planned in 4Q25; Power barge ($315M) and $1.3B fuel commitment (2028–2038) add future optionality but increase forward obligations .
  • Balance sheet/liquidity remain strong with $1.2B cash and short‑term investments and $924M revolver availability, providing flexibility for fleet, Power, and Pork investments .
  • Legal overhang persists (Helms–Burton trial window February 2026; pork antitrust direct actions), but broad settlements reduce tail risk; timing and outcomes remain uncertain .