Executive Summary

Q4 2024 delivered a sharp rebound: net sales $2.48B, operating income $114M (4.6% margin), and EPS $158.58, up materially vs Q3’s tax-driven loss, and well above Q4 2023’s EPS of $64.67 .
Annual commentary points to drivers: Pork profitability recovered on higher pork prices, lower feed costs (−$181M YoY), and the removal of LCNRV reserves; Marine volume improved but rate pressure persisted; Liquid Fuels posted losses on lower RIN/LCFS pricing; Power remained profitable albeit with higher maintenance costs .
Board maintained the $2.25 quarterly dividend; declared on Feb 13, 2025, payable Mar 6, 2025 (continuity from prior quarter) .
2025 capex budget is ~$630M (Marine vessels and Pork projects), setting capital allocation context; management expects Pork to be profitable and Liquid Fuels near break-even in 2025, but notes significant commodity and policy uncertainty as key swing factors .

What Went Well and What Went Wrong

What Went Well
- Pork margin recovery: Operating income rose $475M YoY in 2024 on higher pork prices, lower feed costs (−$181M), and $42M favorable LCNRV reserve adjustment; management “anticipates this segment to be profitable in 2025,” while cautioning on market uncertainty .
- Marine volume improved: Cargo volumes grew 7% YoY in 2024; despite rate pressure, the segment posted $82M operating income for the year .
- Balance sheet/liquidity: Nearly $1.2B of cash and short-term investments and ~$0.9B of additional working capital at 12/31/24 support capex/flexibility .
What Went Wrong
- Liquid Fuels headwinds: 2024 operating loss widened to $(100)M as average LCFS fell 17% and RINs fell 56% YoY; management expects near break-even in 2025 but notes policy/market risk, with new 2025 clean fuel production credits less than prior blender’s credits .
- Marine rate pressure and cost inflation: Lower freight rates and higher stevedoring/terminal costs pressured profitability vs 2023 despite higher volumes .
- Taxes: A U.S. deferred tax valuation allowance increased to $242M by year-end (charge +$212M in 2024), contributing to 2024’s effective tax headwind; Q3’s quarterly net loss was driven by a $176M allowance charge .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Net Sales ($USD Billions)	$2.282	$2.209	$2.218	$2.482
Operating Income ($USD Millions)	$(87)	$30	$32	$114
Net Earnings Attributable to SEB ($USD Millions)	$64	$61	$(149)	$154
Diluted EPS ($USD)	$64.67	$62.82	$(153.44)	$158.58
Operating Margin %	−3.8% (calc)	1.4% (calc)	1.4% (calc)	4.6% (calc)
Net Income Margin %	2.8% (calc)	2.8% (calc)	−6.7% (calc)	6.2% (calc)

Notes: Margins are calculated from cited net sales and operating income/net earnings.

Estimates comparison: S&P Global consensus for Q4 2024 EPS and revenue was unavailable at time of retrieval; we were unable to pull estimates due to data access limits. As a result, vs-consensus comparisons are not shown.

Segment context (FY 2024, for mix and trend insight):

Segment	Net Sales ($USD Millions)	Operating Income ($USD Millions)	Notes
Pork	$2,055	$20	Higher pork prices, lower feed costs (−$181M YoY), LCNRV reserve removal
CT&M	$4,717	$132	Lower commodity prices; $22M MTM derivative losses
Marine	$1,388	$82	+7% cargo volumes; lower freight rates; higher terminal costs
Liquid Fuels	$556	$(100)	LCFS −17%, RIN −56% YoY; policy transition in 2025
Power	$239	$61	Lower spot rates on fuel prices; higher maintenance
Turkey (Equity Income)	N/A	$37	Lower pricing; plant closure in 2025 not material

Selected KPIs and drivers (FY 2024):

Pork feed cost reduction: −$181M YoY; LCNRV reserve removal added ~$42M to operating income .
Marine cargo volume: +7% YoY; rates down; higher stevedoring/terminal costs .
Liquid Fuels credit prices: LCFS −17% YoY; RIN −56% YoY; blender’s credits ended 12/31/24 .
Liquidity: Cash + short-term investments nearly $1.2B at 12/31/24 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Disclosure	Change
Dividend per share (quarterly)	Next payable Mar 6, 2025	$2.25 (Q3 2024 declaration)	$2.25 declared Feb 13, 2025 (record Feb 24)	Maintained
Capital Expenditures	FY 2025	N/A	~$630M budget (Marine ~$290M; Pork ~$215M)	New disclosure
Pork outlook	FY 2025	N/A	Management anticipates profitability (not formal guidance)	Outlook only
Liquid Fuels outlook	FY 2025	N/A	Management anticipates near break-even (not formal guidance)	Outlook only
Clean fuel incentives	2025+	Blender’s credit through 12/31/24	New clean fuel production credit (less than blender’s)	Program change

Note: SEB does not provide formal revenue/EPS guidance; management comments above are directional and not formal outlooks.

Earnings Call Themes & Trends

We searched for a Q4 2024 earnings call transcript but found none in our document set for the period. For trend tracking, we reference Q2 and Q3 earnings press releases and Q4’s 10-K.

Topic	Q2 2024 (press release)	Q3 2024 (press release)	Q4 2024 (10-K/press release)	Trend
Taxes/valuation allowance	No notable tax commentary	$176M U.S. deferred tax valuation allowance drove quarterly loss	Year-end valuation allowance totaled $242M; 2024 charge +$212M	Headwind peaked in Q3; framework set at YE
Pork margins/feed costs	Limited detail in PR	Limited detail in PR	Lower feed costs (−$181M YoY), LCNRV reserve removed; 2025 profitability anticipated	Improving
Liquid Fuels (RIN/LCFS, policy)	Not detailed	Not detailed	LCFS −17%, RIN −56% YoY; blender’s credit ended; new 2025 credit lower; near break-even targeted	Challenged but stabilizing aim
Marine volumes/rates	Not detailed	Not detailed	Volumes +7% YoY; lower freight rates; higher terminal costs	Mixed
Capex/fleet	Not discussed	Not discussed	2025 capex ~$630M; 2 dual-fuel vessels delivered in 2024; 6 due 2025	Investment up
Regulatory/tax (Pillar Two)	Not discussed	Not discussed	Pillar Two enacted in more countries; 2025 impact not expected to be material	Manageable

Management Commentary

Pork: “The increase in operating income for the year ended December 31, 2024… [was] primarily due to higher sale prices and lower hog production costs, including lower feed costs of $181 million… LCNRV reserve was not needed as of December 31, 2024. While management anticipates this segment to be profitable in 2025, it is difficult to predict market prices for pork products [and] the cost of feed…” .
Liquid Fuels: “Average LCFS and RIN credit market values decreased 17% and 56%, respectively… This clean fuel production credit will be less than the federal blender’s credit, but Seaboard is still evaluating… [Management] anticipates this segment will be near break-even in 2025” .
Marine: “The decrease in operating income… was primarily the result of lower voyage revenue and increases in stevedoring and terminal costs… it is difficult to predict changes in fuel costs… cargo volumes or cargo rates” .
Power: “Operating income… decreased… primarily a result of an increase in maintenance costs… it is difficult to predict fuel costs or the extent that spot market rates will fluctuate” .

Q&A Highlights

We could not locate a Q4 2024 earnings call transcript for SEB in our document set; no Q&A themes available from a call for this quarter. We relied on the 8-K press release and 10-K for management commentary .

Estimates Context

S&P Global (Capital IQ) consensus estimates for Q4 2024 EPS and revenue were not available to us at the time of retrieval due to access limits, so vs-consensus comparisons are not shown. SEB’s press releases provide actuals but no guidance .

Key Takeaways for Investors

Q4 inflection: Operating margin improved to 4.6% as Pork recovery outweighed ongoing Liquid Fuels and Marine rate pressures; EPS rebounded to $158.58 vs Q3’s tax-driven loss, resetting the trajectory into 2025 .
2025 setup: Pork expected profitable; Liquid Fuels targeting near break-even as incentive regime shifts; watch commodity feed costs, pork prices, and RIN/LCFS markets for earnings sensitivity .
Marine leverage: Volume growth is encouraging, but earnings sensitivity to freight rates and terminal costs remains; new dual-fuel vessels arriving in 2025 could enhance efficiency/capacity over time .
Policy transition risk: Replacement of blender’s credits with a lower clean fuel production credit in 2025 is a headwind for Liquid Fuels; policy clarity and LCFS/RIN pricing will be key .
Balance sheet strength: Nearly $1.2B in cash/short-term investments plus available borrowing capacity support a $630M 2025 capex plan without compromising flexibility .
Dividend stability: Quarterly $2.25 dividend maintained; consistent capital return amid volatile commodity cycles .
Tax considerations: YE valuation allowance establishes a conservative baseline; potential reversals in future periods could benefit EPS if conditions improve, but timing is uncertain .

Citations

Q4 2024 press release and 8-K:
Q3 2024 press release and 8-K:
Q2 2024 press release and 8-K:
FY 2024 10-K (MD&A, segments, liquidity, capex, tax, policy):

SEABOARD CORP /DE/ (SEB)·Q4 2024 Earnings Summary