Seaboard Corporation (SEB)

Seaboard reported third-quarter net sales of $2,771 million on 3 November 2026, up from $2,540 million a year earlier 1. Operating income fell to $13 million from $84 million, and net earnings attributable to Seaboard were $28 million against $109 million 1. Earnings per common share were $29.23, down from $113.71 1.

Pork operating income was lower by $138 million, mainly on lower sales prices and a $51 million inventory write-down to cost or market, whichever is lower 2. Liquid Fuels offset part of it, with operating income up $52 million on higher fuel and environmental credit sales 2.

Management anticipates that the Pork segment will not be profitable for the remainder of 2026 2. The 10-Q also adds a risk factor on the conflict involving Iran, which began in February 2026 and has raised fuel costs 2.

The board declared a quarterly dividend of $2.25 per share, payable on 23 November 2026 to holders of record on 13 November 1.

Seaboard began in 1918 as a flour brokerage and was organized as a Delaware corporation in 1946 3. Over more than 100 years, under generations of family leadership, it widened into agriculture, energy and ocean transport 3.

Net sales were $9.6 billion in 2023, $9.1 billion in 2024 and $9.8 billion in 2025 3. Operating income moved from a loss of $87 million in 2023 to $156 million in 2024 and $239 million in 2025 3.

With better pork prices and lower grain costs, the pork inventory reserve was cut by $42 million in the first half of 2024 and has not been needed since 3.

In 2025, sales rose $646 million, mainly because the commodity trading and milling segment sold more grain, up $456 million, and the shipping segment earned more on its voyages, up $217 million 3. Shipping also produced an $83 million rise in operating income, though higher voyage costs took back part of it 3.

Pork sold less in 2025 because disease cut the supply of hogs, but better prices and feed costs lower by $160 million raised its operating income 3. Spending stayed high: the shipping segment put $302 million into vessels under construction 3.

Six new dual-fueled ships were delivered in 2025, the last of the original eight ordered 3. In the same year Seaboard agreed to build a new power barge, Estrella Del Mar IV, after the third barge began operating in 2022 3.

A long antitrust case over pork prices also shaped these years 2. Seaboard Foods settled with the direct purchaser class on 12 June 2023 and with two indirect purchaser classes in June 2024 2.

Tariffs imposed in 2025 were not material to that year's results, according to the annual report 3.

Pork

Seaboard Foods is a vertically integrated pork producer, with hog farms, feed mills and a pork processing plant in Oklahoma 3. S&P Global ranked it number three in U.S. hog production and number four in pork processing in 2025 3.

The Oklahoma plant can process about six million hogs a year, and about 25% of sales go abroad, to Mexico, Japan, China and others 3. Nine-month sales were $1,448 million, down from $1,549 million 2.

Commodity trading and milling

This segment buys and sells grain and oilseeds, mills flour and animal feed, and ships the cargo, with facilities in 26 countries, mostly in Africa and South America 3. Nine-month sales were $4,257 million against $3,918 million 2.

Shipping, fuels and power

Seaboard Marine carries cargo between the U.S. and 27 countries in the Caribbean and Central and South America 3. Its cargo volumes rose 9% in the third quarter 2.

Seaboard Energy makes biodiesel in Oklahoma and Missouri and renewable diesel in Kansas 3. The renewable diesel plant was shut for maintenance in the last week of the quarter, with operations expected to resume in November 2026 2.

The Power segment runs two barges that sell electricity to the Dominican Republic grid 3. In mid-July an inspection found turbine damage on EDM III, with repairs not expected to be complete until the end of the year 2.

Turkey and sugar

Seaboard holds a non-controlling 52.5% stake in Butterball, a turkey producer, and counts it by the equity method, so Butterball's sales are not Seaboard's 3. A subsidiary also runs a sugar and alcohol operation in Argentina on nearly 70,000 acres of cultivated land 3.

People, rivals and problems

Robert Steer has been president and chief executive since July 2020, and David Rankin chief financial officer since December 2020 3. Seaboard had about 14,000 employees at the end of 2025 3.

Competition comes from regional, national and international pork producers, and from numerous grain traders around the world 3. The pork price-fixing antitrust cases are still open against direct action plaintiffs Seaboard has not settled with 2.

The umbrella, in words

Brands include Seaboard Foods and Prairie Fresh for pork, Mothers Pride in Zambia for milling, Seaboard Marine for shipping, and Butterball for turkey 3.

Seaboard owns 50% of Seaboard Triumph Foods, a pork plant in Iowa, and 50% of Daily's Premium Meats, a bacon maker, both counted by the equity method 3. It owns 52.5% of Butterball 3.

Seaboard Flour LLC and SFC Preferred, LLC together own about 74% of the common stock 3. The Bresky family, including Chairwoman Ellen Bresky, owns the equity of those two companies 3.

Management budgeted about $145 million of capital spending for the rest of 2026, to be paid from cash, short-term investments and borrowing capacity 2. The annual report put the full-year 2026 budget near $625 million 3.

EDM IV, the new power barge, is expected to start operating in 2028 at a total estimated cost of about $315 million 3. Seaboard Marine also agreed to build a ninth new vessel for about $75 million 3.

For the remainder of 2026, management anticipates positive operating income for commodity trading and milling, excluding mark-to-market effects, and profits for Marine, Liquid Fuels and Turkey 2. It does not expect Pork or Power to be profitable 2.

The company says it is exploring strategic alternatives for the older barge, EDM II, including a sale or relocation 3. Trial dates for the remaining pork antitrust cases are uncertain, the 10-Q says 2.

A share repurchase program has $62 million left, with no minimum purchase required 2.