Seaboard (NYSE: SEB) posts strong Q1 2026 rebound led by Liquid Fuels
Seaboard Corporation delivered a much stronger first quarter of 2026. Net sales rose to $2,400 million from $2,316 million, while net earnings attributable to Seaboard climbed to $119 million from $32 million. Earnings per share were $124.24 versus $32.95 a year earlier.
Performance improved across several segments. The Liquid Fuels segment swung to operating income of $37 million from a loss of $26 million on higher renewable fuel volumes, better pricing and more production tax credits. The Pork segment moved from a loss to $7 million of operating income on better margins and lower feed costs, and the Turkey affiliate Butterball generated $24 million of equity income as turkey prices and volumes improved.
Cash used in operating activities increased to $54 million, mainly from inventory builds in Liquid Fuels, while capital expenditures reached $96 million, including significant spend on a new power barge. Seaboard ended the quarter with $111 million in cash, $1,050 million in short-term investments and $793 million of available borrowing capacity, and budgeted about $460 million of additional 2026 capital spending.
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Insights
Strong Q1 rebound driven by fuels, pork and turkey earnings.
Seaboard’s Q1 2026 results show a sharp recovery, with net earnings attributable to Seaboard at $119 million versus $32 million and operating income at $96 million versus $38 million. The key driver was the Liquid Fuels segment, which moved to $37 million operating income from a $26 million loss.
Liquid Fuels benefited from higher renewable fuel volumes, better pricing and $12 million more income from production tax credits, despite an 18% increase in feedstock costs. Pork also turned around, helped by lower feed costs of $19 million and reduced legal claims expense, while the Turkey affiliate Butterball produced $46 million of net income, yielding $24 million of equity income.
On the risk side, cash from operations was negative $54 million due to inventory builds, largely in Liquid Fuels, and Seaboard is committing significant capital: $96 million of Q1 capex, a remaining $460 million 2026 capex budget, and an $335 million LNG fuel purchase commitment over an 8-year term. Future filings will clarify how these investments and working capital needs affect cash generation over the rest of 2026.
Key Figures
Key Terms
production tax credits financial
mark-to-market losses financial
Term Loan due 2033 financial
One Big Beautiful Bill Act regulatory
Liquid Fuels segment financial
accumulated other comprehensive loss financial
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
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For the transition period from __________________________ to __________________________
Commission File Number:
(Exact name of registrant as specified in its charter)
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Registrant’s telephone number, including area code
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(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Non-Accelerated Filer ◻ | Smaller Reporting Company |
| Emerging Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
There were
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
SEABOARD CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
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| Three Months Ended | | ||||
| April 4, | | March 29, | | ||
(Millions of dollars except share and per share amounts) | 2026 | | 2025 |
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Net sales: | | | | | | |
Products (includes sales to affiliates of $ | $ | | | $ | | |
Services (includes sales to affiliates of $ |
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Other |
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Total net sales |
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Cost of sales and operating expenses: | | | | | | |
Products |
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Services |
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Other |
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Total cost of sales and operating expenses |
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Gross income |
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Selling, general and administrative expenses |
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Operating income |
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Interest expense |
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Income from affiliates |
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Other income (loss), net | | | | | ( | |
Earnings before income taxes |
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Income tax expense |
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Net earnings | $ | | | $ | | |
Less: Net earnings attributable to noncontrolling interests |
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Net earnings attributable to Seaboard | $ | | | $ | | |
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Earnings per common share | $ | | | $ | | |
Average number of shares outstanding |
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Other comprehensive income (loss): | | | | | | |
Foreign currency translation adjustment |
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Unrecognized pension benefit |
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Other comprehensive income (loss), net of tax | $ | | | $ | ( | |
Comprehensive income |
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Less: Comprehensive income attributable to noncontrolling interests |
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Comprehensive income attributable to Seaboard | $ | | | $ | | |
See accompanying notes to condensed consolidated financial statements.
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SEABOARD CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
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| April 4, | | December 31, |
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(Millions of dollars except share and per share amounts) | 2026 | | 2025 |
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Assets | | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | $ | | | $ | | |
Short-term investments |
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Receivables, net of allowance for credit losses of $ |
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Inventories |
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Other current assets |
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Total current assets |
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Property, plant and equipment, net of accumulated depreciation of $ |
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Operating lease right-of-use assets, net | | | | | | |
Investments in and advances to affiliates |
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Goodwill |
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Long-term investments | | | | | | |
Deferred tax asset | | | | | | |
Other non-current assets (includes $ |
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Total assets | $ | | | $ | | |
Liabilities and Stockholders’ Equity | | | | | | |
Current liabilities: | | | | | | |
Lines of credit | $ | | | $ | | |
Accounts payable (includes $ |
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Deferred revenue (includes $ | | | | | | |
Operating lease liabilities | | | | | | |
Other current liabilities |
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Total current liabilities |
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Long-term debt, less current maturities |
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Long-term operating lease liabilities | | | | | | |
Accrued pension liability | | | | | | |
Deferred tax liability | | | | | | |
Other non-current liabilities |
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Total liabilities |
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Commitments and contingent liabilities | | | | | | |
Stockholders’ equity: | | | | | | |
Common stock of $ |
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Accumulated other comprehensive loss |
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Retained earnings |
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Total Seaboard stockholders’ equity |
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Noncontrolling interests |
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Total equity |
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Total liabilities and stockholders’ equity | $ | | | $ | | |
See accompanying notes to condensed consolidated financial statements.
3
SEABOARD CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
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| | | | | Accumulated | | | | | | | | | | | |
| | | | | Other | | | | | | | | | | | |
| | Common | | Comprehensive | | Retained | | Noncontrolling | | | | | ||||
(Millions of dollars) | | Stock | | Loss | | Earnings | | Interests | | Total | | |||||
Balances, December 31, 2024 | | $ | | | $ | ( | | $ | | | $ | | | $ | | |
Comprehensive income: | | | | | | | | | | | | | | | | |
Net earnings | | | — | | | — | | | | | | — | | | | |
Other comprehensive loss, net of tax | | | — | | | ( | | | — | | | — | | | ( | |
Dividends on common stock ($ | | | — | | | — | | | ( | | | — | | | ( | |
Balances, March 29, 2025 | | $ | | | $ | ( | | $ | | | $ | | | $ | | |
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Balances, December 31, 2025 | | $ | | | $ | ( | | $ | | | $ | | | $ | | |
Comprehensive income: | | | | | | | | | | | | | | | | |
Net earnings | | | — | | | — | | | | | | | | | | |
Other comprehensive income, net of tax | | | — | | | | | | — | | | — | | | | |
Dividends on common stock ($ | | | — | | | — | | | ( | | | — | | | ( | |
Balances, April 4, 2026 | | $ | | | $ | ( | | $ | | | $ | | | $ | | |
See accompanying notes to condensed consolidated financial statements.
4
SEABOARD CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
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| Three Months Ended |
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| April 4, | | March 29, | | ||
(Millions of dollars) | 2026 | | 2025 |
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Operating activities: | | | | | | |
Net earnings | $ | | | $ | | |
Adjustments to reconcile net earnings to cash from operating activities: | | | | | | |
Depreciation and amortization |
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Deferred income taxes |
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Income from affiliates |
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Dividends received from affiliates |
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Investment losses, net |
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Other, net |
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Changes in assets and liabilities: | | | | | | |
Receivables, net of allowance for credit losses |
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Inventories |
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Other assets |
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Accounts payable | | ( | | | ( | |
Other liabilities, exclusive of debt |
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Net cash used in operating activities |
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Investing activities: | | | | | | |
Purchase of short-term investments |
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Proceeds from the sale and maturity of short-term investments |
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Capital expenditures |
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Proceeds from the sale of property, plant and equipment |
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Other, net |
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Net cash used in investing activities |
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Financing activities: | | | | | | |
Uncommitted lines of credit, net | | | | | | |
Draws under committed lines of credit | | | | | | |
Repayments of committed lines of credit |
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Principal payments of long-term debt |
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Finance lease payments | | ( | | | ( | |
Dividends paid |
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Net cash from financing activities |
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Effect of exchange rate changes on cash and cash equivalents |
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Net change in cash and cash equivalents |
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Cash and cash equivalents at beginning of year |
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Cash and cash equivalents at end of period | $ | | | $ | | |
See accompanying notes to condensed consolidated financial statements.
5
SEABOARD CORPORATION
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note 1 – Basis of Presentation and Accounting Policies
Basis of Presentation
The accompanying condensed consolidated financial statements of Seaboard Corporation and its subsidiaries (collectively, “Seaboard”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in Seaboard’s annual report on Form 10-K for the year ended December 31, 2025 (“2025 10-K”). The unaudited financial information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. Seaboard’s first three quarterly periods include approximately 13 weekly periods ending on the Saturday closest to the end of March, June and September. Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year.
Related-Party Transactions
Seaboard has investments in non-consolidated affiliates to further its business strategies and partner with other entities that have expertise in certain industries and countries. These investments are all accounted for using the equity method of accounting. As Seaboard conducts its agricultural commodity trading business with third parties, consolidated subsidiaries and non-consolidated affiliates on an interrelated basis, cost of sales on affiliate sales transactions cannot be distinguished without making numerous assumptions, primarily with respect to mark-to-market accounting for commodity derivatives. Purchases of raw materials or services from related parties included in cost of sales were $
Other Income (Loss), Net
The components of other income (loss), net in the condensed consolidated statements of comprehensive income for the periods presented were as follows:
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| | Three Months Ended | | ||||
| | | April 4, | | | March 29, | |
(Millions of dollars) | | | 2026 | | | 2025 | |
Interest and dividend income | | $ | | | $ | | |
Investment losses, net | | | ( | | | ( | |
Foreign currency gains (losses), net | | | | | | ( | |
Miscellaneous, net | | | | | | — | |
Total other income (loss), net | | $ | | | $ | ( | |
Supplemental Cash Flow Information
Non-cash activities for the three months ended April 4, 2026 and March 29, 2025, included capital expenditures of $
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| | Three Months Ended | |||||
| | April 4, | | March 29, | | ||
(Millions of dollars) | | 2026 | | 2025 | | ||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
Operating cash flows from operating leases | | $ | | | $ | | |
Operating cash flows from finance leases | | | | | | | |
Financing cash flows from finance leases | | | | | | | |
ROU assets obtained in exchange for new lease liabilities: | | | | | | | |
Operating leases | | $ | | | $ | | |
Finance leases | | | | | | | |
6
SEABOARD CORPORATION
Notes to Condensed Consolidated Financial Statements (Unaudited)
Recently Issued Accounting Standards Not Yet Adopted
In November 2024, the Financial Accounting Standards Board (“FASB”) issued guidance that requires disclosure of incremental income statement expense information on an annual and interim basis, primarily through additional expense disclosures including disaggregation of specific expense categories including, but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. Prospective application is required, and retrospective application is permitted. Seaboard will adopt this guidance for the annual reporting period beginning on January 1, 2027, and interim periods within the annual year beginning on January 1, 2028. Seaboard is evaluating the impact this guidance will have on its disclosures.
Note 2 – Investments
The following is a summary of the estimated fair value of short-term investments classified as trading securities:
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| | April 4, | | December 31, | | ||
(Millions of dollars) |
| 2026 | | 2025 | | ||
Domestic equity securities (a) | | $ | | | $ | | |
Foreign equity securities | | | | | | | |
Domestic fixed-income mutual funds | | | | | | | |
Foreign fixed-income mutual funds | | | | | | | |
Domestic debt securities - other | | | | | | | |
Money market funds held in trading accounts | |
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Total short-term investments | | $ | | | $ | | |
| (a) | Includes $ |
The unrealized losses related to trading securities still held at the end of the respective reporting periods were ($
Note 3 – Inventories
The following is a summary of inventories:
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| | April 4, | | December 31, |
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(Millions of dollars) | | 2026 | | 2025 | | ||
At lower of FIFO cost and net realizable value (“NRV”): | | | | | | | |
Hogs and materials | | $ | | | $ | | |
Pork products and materials | |
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Grains, oilseeds and other commodities | |
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Biofuels and related credits | | | | | | | |
Other | |
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Total inventories at lower of FIFO cost and NRV | |
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Grain, flour and feed at lower of weighted average cost and NRV | |
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Total inventories | | $ | | | $ | | |
As of April 4, 2026 and December 31, 2025, Seaboard held production tax credits of $
Note 4 – Lines of Credit, Long-Term Debt, Commitments and Contingencies
Lines of Credit
As of April 4, 2026, the outstanding balance under uncommitted lines of credit was $
7
SEABOARD CORPORATION
Notes to Condensed Consolidated Financial Statements (Unaudited)
February 2026, the maturity date of the facility was extended to February 2027. This line of credit is secured by certain short-term investments, and bears interest at the Secured Overnight Financing Rate (“SOFR”) plus an applicable spread. The outstanding balance under the committed line of credit was $
Long-Term Debt
The following is a summary of long-term debt:
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| | April 4, | | December 31, | | ||
(Millions of dollars) | | 2026 | | 2025 | | ||
Term Loan due 2033 | | $ | | | $ | | |
Foreign subsidiary obligations | | | | | | | |
Other long-term debt | | | | | | | |
Total debt at face value | | | | | | | |
Current maturities and unamortized costs | | | ( | | | ( | |
Long-term debt, less current maturities and unamortized costs | | $ | | | $ | | |
The Term Loan due 2033 interest rate was
Legal Proceedings
Seaboard is subject to various legal proceedings and claims that arise in the ordinary course of business and otherwise, including those matters described below.
Seaboard accrues liabilities for loss contingencies when it is deemed probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, Seaboard accrues the minimum amount in the range. For such matters where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, no accrual has been made.
Seaboard has made appropriate and adequate accruals for loss contingencies where necessary as of April 4, 2026. Substantially all of Seaboard’s contingencies are subject to uncertainties and, therefore, determining the likelihood of a loss or the measurement of any loss can be complex. Consequently, Seaboard is unable to estimate the range of reasonably possible loss in excess of the amounts accrued. Seaboard’s assessments, which result from a complex series of judgments about future events and uncertainties, are based on estimates and assumptions deemed reasonable by management, including an expected probable loss associated with settling or otherwise resolving such contingencies. These estimates and assumptions may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might change such estimates and assumptions.
At the end of each reporting period, Seaboard reviews information with respect to its legal proceedings, claims and other related loss contingencies and updates its accruals, disclosures and estimates of reasonably possible loss or range of loss based on such reviews. Costs for defending claims are expensed as incurred. Any receivable for insurance recoveries is recorded separately from the corresponding liability, and only if recovery is determined to be probable and reasonably estimable.
Seaboard believes that it has meritorious defenses to the claims asserted in the matters described below, and it intends to defend them vigorously, but litigation is inherently unpredictable and there can be no assurances as to their outcomes. Seaboard does not currently believe that any of these matters will have a material adverse effect on its business or its consolidated financial position, results of operations or cash flows. However, Seaboard could incur judgments, enter into settlements or revise its expectations regarding the outcome of matters, which could have a material adverse effect in the particular annual or quarterly period in which the amounts are accrued or paid.
Pork Price-Fixing Antitrust Litigation
On June 28, 2018,
8
SEABOARD CORPORATION
Notes to Condensed Consolidated Financial Statements (Unaudited)
class action complaints with similar claims on behalf of putative classes of direct and indirect purchasers were later filed in the Minnesota District Court, and additional actions by standalone plaintiffs (including the Commonwealth of Puerto Rico) were filed in or transferred to the Minnesota District Court. The consolidated actions are styled In re Pork Antitrust Litigation. The complaints allege, among other things, that beginning in January 2009, the defendants conspired and combined to fix, raise, maintain and stabilize the price of pork products in violation of U.S. antitrust laws by coordinating output and limiting production, allegedly facilitated by the exchange of non-public information about prices, capacity, sales volume and demand through Agri Stats, Inc. The complaints on behalf of the putative classes of indirect purchasers also assert claims under various state laws, including state antitrust laws, unfair competition laws, consumer protection statutes, and common law unjust enrichment. The relief sought in the respective complaints includes treble damages, injunctive relief, pre- and post-judgment interest, costs and attorneys’ fees. On October 16, 2020, the Minnesota District Court denied the defendants’ motions to dismiss the amended complaints. On March 3, 2023, the Minnesota District Court granted the plaintiffs’ motions to certify the classes with respect to all three classes.
Additional standalone “direct action” plaintiffs filed similar actions in federal courts throughout the country, several of which named Seaboard Corporation as a defendant. Those actions filed in courts other than the District of Minnesota have been conditionally transferred to Minnesota for pretrial proceedings pursuant to an order by the Judicial Panel on Multidistrict Litigation. The states of New Mexico and Alaska filed civil cases in state court against substantially the same defendants, including Seaboard Foods and Seaboard Corporation, based on substantially similar allegations.
On June 12, 2023, Seaboard Foods entered into a settlement agreement with the putative direct purchaser plaintiff class (the “DPP Class”). The settlement with the DPP Class does not cover the claims of (a) “direct action” plaintiffs (“DPPs”) that opted-out of Seaboard’s settlement with the DPP Class and are continuing direct actions; (b) other direct purchasers that opted-out of the settlement (“Other Opt-Outs”) and may in the future file actions against Seaboard; (c) the Commercial and Industrial Indirect Purchaser Class (the “CIIP Class”); or (d) the End User Consumer Indirect Purchaser Plaintiff Class (the “EUCP Class”). Subsequent to the settlement with the DPP Class, Seaboard settled with some of the DPPs and Other Opt-Outs. Seaboard continues to litigate against the DPPs it has not settled with, but Seaboard will consider additional reasonable settlements where they are available. On June 18, 2024 and June 20, 2024, Seaboard Foods entered into settlement agreements with the CIIP Class and the EUCP Class. The settlement with the EUCP Class remains subject to court approval. Seaboard Foods entered into settlement agreements with the state of Alaska on August 7, 2024, the Commonwealth of Puerto Rico on January 2, 2025, and the State of New Mexico on September 26, 2025. Seaboard believes that these settlements were in the best interests of Seaboard and its stakeholders in order to avoid the uncertainty, risk, expense and distraction of protracted litigation.
On March 31, 2025, the Minnesota District Court denied the defendants’ motion for summary judgment. Absent reconsideration or another change in circumstance, cases pending in the Minnesota District Court will proceed to trial and cases pending in other jurisdictions will be remanded to the courts in which the actions were brought. Seaboard has settled all actions originally brought in the Minnesota District Court. It is uncertain when the Minnesota District Court will remand the cases, including Seaboard’s, pending in other jurisdictions or when trials for those cases will be scheduled.
Seaboard believes that it has meritorious defenses to the claims alleged in these matters and intends to vigorously defend any matters not resolved by settlement. However, the outcome of litigation is inherently unpredictable and subject to significant uncertainties and, if unfavorable, could result in a material liability.
Commitments
During the first quarter of 2026, the Marine segment entered into an amended and restated liquefied natural gas (“LNG”) fuel supply contract for its LNG-fueled vessels. The total minimum fuel purchase commitment over the
9
SEABOARD CORPORATION
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note 5 – Derivatives and Fair Value of Financial Instruments
The following tables show assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy used to measure each category of assets and liabilities. Investments valued using net asset value (“NAV”) as a practical expedient are excluded from the fair value hierarchy.
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| | April 4, | | | | | | | | | |
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(Millions of dollars) | | 2026 | | Level 1 | Level 2 | Level 3 |
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Assets: | | | | | | | | | | | | | |
Trading securities – short-term investments: | | | | | | | | | | | | | |
Domestic equity securities | | $ | | | $ | | | $ | — | | $ | — | |
Foreign equity securities | | | | | | | | | — | | | — | |
Domestic fixed-income mutual funds | | | | | | | | | — | | | — | |
Foreign fixed-income mutual funds | | | | | | | | | — | | | — | |
Domestic debt securities – other | |
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| — | |
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Money market funds held in trading accounts | | | | | | | | | — | | | — | |
Trading securities – other current assets | | | | | | | | | — | | | — | |
Derivatives – other current assets | | | | | | | | | | | | — | |
Total assets | | $ | | | $ | | | $ | | | $ | — | |
Liabilities: | | | | | | | | | | | | | |
Derivatives – other current liabilities | | $ | | | $ | | | $ | — | | $ | — | |
Total liabilities | | $ | | | $ | | | $ | — | | $ | — | |
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| | December 31, | | | | | | | | | |
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(Millions of dollars) | | 2025 | | Level 1 | Level 2 | Level 3 |
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Assets: | | | | | | | | | | | | | |
Trading securities – short-term investments: | | | | | | | | | | | | | |
Domestic equity securities | | $ | | | $ | | | $ | — | | $ | — | |
Foreign equity securities | | | | | | | | | — | | | — | |
Domestic fixed-income mutual funds | | | | | | | | | — | | | — | |
Foreign fixed-income mutual funds | | | | | | | | | — | | | — | |
Domestic debt securities – other | | | | | | — | | | | | | — | |
Money market funds held in trading accounts | |
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| — | |
| — | |
Trading securities – other current assets | | | | | | | | | — | | | — | |
Derivatives – other current assets | | | | | | | | | | | | — | |
Total assets | | $ | | | $ | | | $ | | | $ | — | |
Liabilities: | | | | | | | | | | | | | |
Derivatives – other current liabilities | | $ | | | $ | | | $ | | | $ | — | |
Total liabilities | | $ | | | $ | | | $ | | | $ | — | |
Seaboard has equity interests in private funds that invest in high-quality debt securities. These investments are measured using NAV as a practical expedient for fair value as they do not have readily determinable fair values. The NAV of the investments, based on the market value of the underlying securities in the portfolios, included in the condensed consolidated balance sheets is as follows:
| | | | | | | |
| | | | | | | |
| | April 4, | | December 31, | | ||
(Millions of dollars) | | | 2026 | | | 2025 | |
Short-term investments | | $ | | $ | | ||
Long-term investments | | $ | | $ | | ||
Financial instruments consisting of cash and cash equivalents, net receivables, lines of credit and accounts payable are carried at cost, which approximates fair value as a result of the short-term nature of the instruments.
The fair value of long-term debt is estimated by comparing interest rates for debt with similar terms and maturities. As Seaboard’s long-term debt is mostly variable-rate, the carrying amount approximates fair value. If Seaboard’s long-term
10
SEABOARD CORPORATION
Notes to Condensed Consolidated Financial Statements (Unaudited)
debt was measured at fair value on its condensed consolidated balance sheets, it would have been classified as level 2 in the fair value hierarchy.
Derivatives
Seaboard’s operations are exposed to market risks from changes in commodity prices, foreign currency exchange rates, interest rates and equity prices. Seaboard uses various derivatives to manage some of its risks. Although management believes its derivatives are primarily economic hedges, Seaboard does not perform the extensive record-keeping required to account for these types of transactions as hedges for accounting purposes. These derivative contracts are recorded at fair value, with any changes in fair value recognized in the condensed consolidated statements of comprehensive income.
Seaboard had the following aggregated outstanding notional amounts related to derivative financial instruments:
| | | | | | | | | |
| | | | | | | | | |
| | | | | April 4, | | December 31, | ||
(Millions) | | Metric | | | 2026 | | 2025 | ||
Commodities: | | | | | | | | | |
Grain | | Bushels | | | | | | | |
Hogs and pork products | | Pounds | | | | | | | |
Soybean oil | | Pounds | | | | | | | |
Heating oil | | Gallons | | | | | | — | |
Foreign currencies | | U.S. dollar | | | | | | | |
The following table provides the fair value of each type of derivative held and where each derivative is included in the condensed consolidated balance sheets:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | Asset | | | | Liability | | ||||||||
| | | | April 4, | | December 31, | | | | April 4, | | December 31, | | ||||
(Millions of dollars) | | | | 2026 | | 2025 | | | | 2026 | | 2025 | | ||||
Commodities |
| Other current assets | | $ | | | $ | |
| Other current liabilities | | $ | | | $ | | |
Foreign currencies | | Other current assets | | | | | | — | | Other current liabilities | | | — | | | | |
Seaboard’s commodity derivative assets and liabilities are presented in the condensed consolidated balance sheets on a net basis, including netting the derivatives with the related margin accounts. As of April 4, 2026 and December 31, 2025, the commodity derivatives had a margin account balance of $
The following table provides the amount of gain (loss) recognized in income for each type of derivative and where it was recognized in the condensed consolidated statements of comprehensive income:
| | | | | | | | | |
| | | | | | | | | |
| | | | Three Months Ended | | ||||
| | | | April 4, | | March 29, | | ||
(Millions of dollars) | | | | 2026 | | 2025 |
| ||
Commodities |
| Cost of sales | | $ | ( | | $ | ( | |
Foreign currencies | | Cost of sales | | | ( | | | ( | |
Foreign currencies |
| Other income (loss), net | |
| | |
| ( | |
11
SEABOARD CORPORATION
Notes to Condensed Consolidated Financial Statements (Unaudited)
Note 6 – Stockholders’ Equity and Accumulated Other Comprehensive Loss
During 2025, Seaboard’s Board of Directors approved a share repurchase program authorizing the repurchase of up to $
The components of accumulated other comprehensive loss (“AOCL”), net of related taxes, were as follows:
| | | | | | | | | | |
| | | | | | | | | | |
| | Cumulative | | | | | | | | |
| | Foreign | | Cumulative | | | | | ||
| | Currency | | Unrecognized | | | | | ||
| | Translation | | Pension | | | | | ||
(Millions of dollars) | | Adjustment | | Benefit | | Total | | |||
Balance, December 31, 2024 | | $ | ( | | $ | | | $ | ( | |
Other comprehensive income (loss), net of tax | |
| ( | |
| | |
| ( | |
Balance, March 29, 2025 | | $ | ( | | $ | | | $ | ( | |
| | | | | | | | | | |
Balance, December 31, 2025 | | $ | ( | | $ | | | $ | ( | |
Other comprehensive income, net of tax | |
| | |
| — | |
| | |
Balance, April 4, 2026 | | $ | ( | | $ | | | $ | ( | |
Note 7 – Segment Information
Seaboard manages its business under
Seaboard’s Chief Executive Officer serves as the CODM. The CODM assesses performance and makes key operating decisions based on total operating income and income from affiliates. The CODM uses this measure to compare to historical trends and forecasts to assess segment results, allocate capital, make strategic decisions and identify areas of opportunity. Operating income and income from affiliates for segment reporting is prepared on the same basis as that used for consolidated purposes under U.S. GAAP. The CODM does not receive proportionate consolidation information for equity method investments.
12
SEABOARD CORPORATION
Notes to Condensed Consolidated Financial Statements (Unaudited)
The following tables include certain segment information for the respective periods presented. The significant segment expense categories align with the information regularly provided to the CODM.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended April 4, 2026 | |||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | All | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | Other | | | Inter- | | | | |
| | | | | | | | | | | | Liquid | | | | | | | | | and | | | Segment | | | | |
(Millions of dollars) | | | Pork | | | CT&M | | | Marine | | | Fuels | | | Power | | | Turkey | | | Corporate | | | Elims | | | Total | |
External net sales: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Products | | $ | | | $ | | | $ | — | | $ | | | $ | — | | | | | $ | | | $ | — | | $ | | |
Transportation | | | | | | — | | | | | | — | | | — | | | | | | | | | — | | | | |
Energy | | | — | | | — | | | — | | | — | | | | | | | | | — | | | — | | | | |
Other | | | | | | | | | — | | | — | | | — | | | | | | — | | | — | | | | |
Total external net sales | | | | | | | | | | | | | | | | | | | | | | | | — | | | | |
Intersegment net sales (a) | | | | | | — | | | | | | — | | | — | | | | | | — | | | ( | | | — | |
Total segment/consolidated net sales | | $ | | | $ | | | $ | | | $ | | | $ | | | | | | $ | | | $ | ( | | $ | | |
Less significant segment expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales | | | | | | | | | | | | | | | | | | | | | | | | ( | | | | |
Selling, general and administrative expenses | | | | | | | | | | | | | | | | | | | | | | | | — | | | | |
Total segment/consolidated operating income (loss) | | $ | | | $ | | | $ | | | $ | | | $ | | | | | | $ | ( | | $ | — | | $ | | |
Income from affiliates | | | | | | | | | | | | | | | — | | | | | | — | | | — | | | | |
Total operating income (loss) and income from affiliates | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | ( | | $ | — | | $ | | |
Depreciation and amortization expense | | $ | | | $ | | | $ | | | $ | | | $ | | | | | | $ | | | $ | — | | $ | | |
Capital expenditures | | $ | | | $ | | | $ | | | $ | | | $ | | | | | | $ | | | $ | — | | $ | | |
Total assets as of April 4, 2026(b) | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | — | | $ | | |
Investments in affiliates as of April 4, 2026 | | $ | | | $ | | | $ | | | | | | $ | | | $ | | | $ | | | $ | — | | $ | | |
13
SEABOARD CORPORATION
Notes to Condensed Consolidated Financial Statements (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended March 29, 2025 | |||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | All | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | Other | | | Inter- | | | | |
| | | | | | | | | | | | Liquid | | | | | | | | | and | | | Segment | | | | |
(Millions of dollars) | | | Pork | | | CT&M | | | Marine | | | Fuels | | | Power | | | Turkey | | | Corporate | | | Elims | | | Total | |
External net sales: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Products | | $ | | | $ | | | $ | — | | $ | | | $ | — | | | | | $ | | | $ | — | | $ | | |
Transportation | | | | | | — | | | | | | — | | | — | | | | | | — | | | — | | | | |
Energy | | | — | | | — | | | — | | | — | | | | | | | | | — | | | — | | | | |
Other | | | | | | | | | — | | | — | | | — | | | | | | — | | | — | | | | |
Total external net sales | | | | | | | | | | | | | | | | | | | | | | | | — | | | | |
Intersegment net sales (a) | | | | | | — | | | | | | — | | | — | | | | | | — | | | ( | | | — | |
Total segment/consolidated net sales | | $ | | | $ | | | $ | | | $ | | | $ | | | | | | $ | | | $ | ( | | $ | | |
Less significant segment expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales | | | | | | | | | | | | | | | | | | | | | | | | ( | | | | |
Selling, general and administrative expenses | | | | | | | | | | | | | | | | | | | | | | | | — | | | | |
Total segment/consolidated operating income (loss) | | $ | ( | | $ | | | $ | | | $ | ( | | $ | | | | | | $ | ( | | $ | — | | $ | | |
Income from affiliates | | | | | | | | | | | | | | | — | | | — | | | — | | | — | | | | |
Total operating income (loss) and income from affiliates | | $ | ( | | $ | | | $ | | | $ | ( | | $ | | | $ | — | | $ | ( | | $ | — | | $ | | |
Depreciation and amortization expense | | $ | | | $ | | | $ | | | $ | | | $ | | | | | | $ | | | $ | — | | $ | | |
Capital expenditures | | $ | | | $ | | | $ | | | $ | | | $ | | | | | | $ | | | $ | — | | $ | | |
Total assets as of December 31, 2025(b) | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | — | | $ | | |
Investments in affiliates as of December 31, 2025 | | $ | | | $ | | | $ | | | | | | $ | | | $ | | | $ | | | $ | — | | $ | | |
| (a) | The Pork segment’s intersegment sales primarily represent the sale of pork fat to the Liquid Fuels segment, which uses it as a feedstock in the renewable diesel and biodiesel production processes. The Marine segment’s intersegment sales primarily represent shipping services provided to another Seaboard subsidiary. Intercompany transactions are eliminated in consolidation. |
| (b) | The Turkey segment’s total assets represent Seaboard’s investment in Butterball, LLC (“Butterball”). All Other and Corporate’s total assets primarily represent short-term investments held by Corporate; these investments were $ |
14
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This Management Discussion and Analysis is provided as a supplement to, and should be read in conjunction with, Seaboard’s consolidated financial statements and the accompanying notes included in this quarterly report on Form 10-Q and within Seaboard’s 2025 10-K. Certain statements in this report contain forward-looking statements. See the section entitled “Forward-looking Statements” for more information on these forward-looking statements, including a discussion of the most significant factors that could cause actual results to differ materially from those in the forward-looking statements.
LIQUIDITY AND CAPITAL RESOURCES
The primary objectives of Seaboard’s financing strategy are to effectively manage financial risks, ensure efficient liquidity for daily global operations and maintain balance sheet strength. Seaboard’s principal funding sources are generated from operating activities, short-term investments and borrowings from revolving lines of credit and term loans. Seaboard’s cash requirements primarily include funding for working capital, capital expenditures, strategic investments and other needs. Seaboard evaluates its overall liquidity at least on a quarterly basis, and management believes Seaboard’s combination of internally-generated cash, liquidity and borrowing capabilities will be adequate to meet all short-term and long-term commitments.
As of April 4, 2026, Seaboard had cash and short-term investments of nearly $1.2 billion and additional net working capital of $1 billion. Of the total cash and short-term investments balance, $102 million was held by foreign subsidiaries.
The following table presents a summary of Seaboard’s available borrowing capacity under lines of credit.
| | | | |
| | | | |
| | Total amount |
| |
(Millions of dollars) | | available | | |
Short-term uncommitted and committed lines | | $ | 1,339 | |
Amounts drawn against lines | |
| (546) | |
Available borrowing capacity as of April 4, 2026 | | $ | 793 | |
Available borrowing capacity fluctuates based on changes to the terms of line of credit agreements and draws needed to fund operations. During the first quarter of 2026, an uncommitted line of credit agreement, secured by eligible accounts receivable, that had up to $100 million of borrowing availability expired. Seaboard will continue to evaluate opportunities to access efficient financing in the markets where it operates, leveraging low-cost funding to support its operations.
Seaboard had long-term debt of $988 million as of April 4, 2026, which included a Term Loan due 2033 of $950 million. Current maturities of long-term debt were $11 million as of April 4, 2026. See Note 4 to the condensed consolidated financial statements for more discussion of Seaboard’s lines of credit and long-term debt.
Cash Flows
Cash used in operating activities was $54 million for the first quarter of 2026, compared to $20 million for the same period in 2025. The change in operating activities cash flows was due to more cash used for working capital of $111 million, partially offset by an increase in net earnings, adjusted for non-cash items, of $56 million and more dividend payments received from equity method investments of $21 million. The increase in cash used for working capital was primarily due to increases in inventory balances, primarily in the Liquid Fuels segment. This segment’s fuel and tax credits inventory increases were driven by improved market conditions, more production and timing of sales.
Cash used in investing activities was $87 million for the first quarter of 2026, compared to $55 million for the same period in 2025. During the three months ended April 4, 2026, Seaboard invested $96 million in property, plant and equipment, of which $44 million was in the Power segment, consisting primarily of installment payments for EDM IV, the 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 are a result of the investment of excess cash, asset allocation from the active management of the portfolio and re-investment of matured securities.
Cash provided by financing activities was $74 million for the first quarter of 2026, compared to $62 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. The daily needs for working capital primarily influence changes in Seaboard’s borrowing balances.
15
Seaboard did not repurchase any shares under its share repurchase program during the first quarter of 2026. As of April 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.
Capital Expenditures
For the remainder of 2026, management has budgeted capital expenditures totaling approximately $460 million, which includes approximately $125 million for the Power segment’s expenditures related to the construction of EDM IV with the remainder relating to several individually immaterial projects across the remaining segments. Management anticipates funding these capital expenditures from a combination of available cash, the use of available short-term investments and Seaboard’s available borrowing capacity.
Future Contractual Obligations
During the first quarter of 2026, the Marine segment entered into an amended and restated LNG fuel supply contract for its LNG-fueled vessels. The total minimum fuel purchase commitment over the 8-year contract term beginning in February 2026 is approximately $335 million, based on market prices at quarter end for the variable price component. There were no other material updates to Seaboard’s obligations as discussed in the 2025 10-K.
RESULTS OF OPERATIONS
Seaboard’s operations are heavily commodity-driven and financial performance for certain subsidiaries is very cyclical based on respective global commodity markets and trends in economic activity. The recent conflict involving Iran that began in late February has resulted in higher fuel prices, 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. These conditions did not have a material impact on Seaboard’s first quarter 2026 results; however, the extent and duration of the conflict remain uncertain, and management continues to monitor developments. See Item 1A. Risk Factors for an update to the risk factors set forth in Seaboard’s 2025 10-K.
Net Sales
Net sales increased $84 million for the three-month period of 2026 compared to the same period in 2025. The increase primarily reflected higher sales of $76 million in the Liquid Fuels segment driven by increased volumes of fuel sold. See the net sales discussion by reportable segment below for more details.
Operating Income
Operating income increased $58 million for the three-month period of 2026 compared to the same period in 2025. The change primarily reflected an increase of $63 million in Liquid Fuels segment operating income and a $38 million increase in Pork segment operating income driven primarily by higher margins on products sold. These increases were partially offset by a $24 million decrease in CT&M segment operating income due to losses on mark-to-market derivative contracts and a $23 million decrease in Marine segment operating income due to lower freight rates and higher voyage-related costs. See the operating income discussion by reportable segment below for more details.
Income Tax Expense
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 and adjusts for discrete items recorded during the period. The effective tax rate for the three-month period of 2026 decreased compared to the three-month period of 2025, with no material drivers for the decrease. A rate reconciling item can have a disproportionate impact on the effective tax rate when applied against a relatively low level of pre-tax earnings, such as for the first quarter of 2025. In July 2025, the U.S. signed into law the One Big Beautiful Bill Act (“OBBBA”). The OBBBA imposed various changes to U.S. federal income tax regulation, including restoring 100% bonus depreciation, removing the requirement to capitalize and amortize domestic research and development expenditures, increasing interest deductibility and reducing certain international deductions. The international effects of the OBBBA, effective beginning on January 1, 2026, were not material to Seaboard’s first quarter of 2026 income tax expense.
16
Segment Results
See Note 7 to the condensed consolidated financial statements for a reconciliation of net sales and operating income (loss) by reportable segment to consolidated net sales and consolidated operating income (loss), respectively.
Pork Segment
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | Three Months Ended | | | | | ||||
| | | April 4, | | March 29, | | | $ | | ||
(Millions of dollars) | | | 2026 | | 2025 | | | Change | | ||
Net sales | | | $ | 485 | | $ | 486 | | $ | (1) | |
Operating income (loss) | | | $ | 7 | | $ | (31) | | $ | 38 | |
Income from affiliates | | | $ | 12 | | $ | 8 | | $ | 4 | |
Net sales remained relatively flat for the three-month period of 2026 compared to 2025. The decrease in the volume of market hogs sold due to availability of hogs during the current period was mostly offset by an increase in the volume of pork products sold. This segment sells hogs to a non-consolidated affiliate for processing. Sale price fluctuations did not have a material impact on results during the current period.
The increase in operating income for the three-month period of 2026 compared to 2025 reflected higher margins on pork products and market hogs sold, due to a decrease in legal claims expense and, to a lesser extent, a decrease in feed costs of $19 million largely offset by increases in other production costs, driven by hog health. While management anticipates the Pork segment will be profitable for the remainder of 2026, no assurances can be made as it is difficult to predict market prices for pork products, the cost of production or third-party hogs, diseases and the impact of geopolitical events for future periods.
CT&M Segment
| | | | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended | | | | | ||||
| | April 4, | | March 29, | | | $ | | ||
(Millions of dollars) | | 2026 | | 2025 | | | Change | | ||
Net sales | | $ | 1,205 | | $ | 1,225 | | $ | (20) | |
Operating income | | $ | 17 | | $ | 41 | | $ | (24) | |
Income from affiliates | | $ | 5 | | $ | 4 | | $ | 1 | |
Net sales decreased for the three-month period of 2026 compared to 2025, primarily due to lower volumes of certain commodities sold, which decreased sales $48 million, partially offset by higher average sales prices of 2%, which increased sales $28 million. 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.
Operating income decreased for the three-month period of 2026 compared to 2025, primarily due to an increase of $18 million in mark-to-market losses on derivative contracts, which continue to fluctuate until final delivery of product. While management anticipates positive operating income, excluding the effects of mark-to-market adjustments, for this segment for the remainder of 2026, 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.
Marine Segment
| | | | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended | | | | | ||||
| | April 4, | | March 29, | | | $ | | ||
(Millions of dollars) | | 2026 | | 2025 | | | Change | | ||
Net sales | | $ | 428 | | $ | 403 | | $ | 25 | |
Operating income | | $ | 34 | | $ | 57 | | $ | (23) | |
Net sales increased for the three-month period of 2026 compared to 2025 primarily due to a 10% increase in cargo volumes due to modest growth in several markets, partially offset by a 4% decrease in average freight rates due to competitive factors.
The decrease in operating income for the three-month period of 2026 compared to 2025 was primarily the result of lower freight rates and higher voyage-related costs primarily due to higher cargo volumes. Many of this segment’s costs are
17
variable in nature and the overall expense amounts will fluctuate as volumes increase or decrease. 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.
Liquid Fuels Segment
| | | | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended | | | | | ||||
| | April 4, | | March 29, | | | $ | | ||
(Millions of dollars) | | 2026 | | 2025 | | | Change | | ||
Net sales | | $ | 197 | | $ | 121 | | $ | 76 | |
Operating income (loss) | | $ | 37 | | $ | (26) | | $ | 63 | |
The increase in net sales for the three-month period of 2026 compared to the same period in 2025 primarily reflected higher fuel sales of $72 million, driven by sales volumes and fuel prices, which contributed $59 million and $13 million, respectively. The increase in volumes sold was attributable to higher production levels due to less downtime at the renewable diesel plant as compared to 2025, and increased prices reflected improved market conditions. Environmental credit sales were relatively flat due to higher sales prices, which increased sales $24 million, partially offset by lower volumes sold that decreased sales $19 million.
The increase in operating income for the three-month period of 2026 compared to 2025 primarily reflected higher margins on fuel sales and more income of $12 million from production tax credits related to higher production. Feedstock costs, used to produce biofuels, increased 18% as compared to 2025. 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.
Power Segment
| | | | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended | | | | | ||||
| | April 4, | | March 29, | | | $ | | ||
(Millions of dollars) | | 2026 | | 2025 | | | Change | | ||
Net sales | | $ | 60 | | $ | 53 | | $ | 7 | |
Operating income | | $ | 9 | | $ | 7 | | $ | 2 | |
The increase in net sales for the three-month period of 2026 compared to 2025 reflected more power generation and higher spot market rates, due to a decrease in generation from lower variable-cost producers.
Operating income remained relatively flat for the three-month period of 2026 compared to 2025, as the increase in net sales was mostly offset by higher fuel costs due to increased consumption and 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 fuel costs or the extent that spot market rates will fluctuate due to fuel costs or other power producers for future periods.
Turkey Segment
| | | | | | | | | | |
| | | | | | | | | | |
| | Three Months Ended | | | | | ||||
| | April 4, | | March 29, | | | $ | | ||
(Millions of dollars) | | 2026 | | 2025 | | | Change | | ||
Income from affiliates | | $ | 24 | | $ | — | | $ | 24 | |
The Turkey segment represents Seaboard’s non-controlling 52.5% investment in Butterball, LLC (“Butterball”), which is accounted for using the equity method. The improvement in Butterball’s net income for the three-month period of 2026 compared to 2025 primarily reflected increased margins on turkey products sold due to higher sales prices of 10% as commodity markets strengthened and the product sales mix shifted toward a greater concentration of value-added products, while production and processing costs were relatively flat. Volumes sold increased 8% during the current period. 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.
18
Butterball’s summarized income statement information was as follows:
| | | | | | | |
| | | | | | | |
| | | Three Months Ended | | |||
| | | April 4, | | March 29, | ||
(Millions of dollars) | | | 2026 | | 2025 | ||
Net sales | | $ | 443 | | $ | 375 | |
Operating income (loss) | | $ | 48 | | $ | (3) | |
Net income | | $ | 46 | | $ | — | |
CRITICAL ACCOUNTING ESTIMATES
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 three months ended April 4, 2026.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Seaboard is exposed to various types of market risks in its day-to-day operations. Primary market risk exposures result from changing commodity prices, foreign currency exchange rates, interest rates and equity prices. Occasionally, Seaboard utilizes derivative instruments to manage these overall market risks. The nature of Seaboard’s market risk exposure related to these items has not changed materially since December 31, 2025. See Note 5 to the condensed consolidated financial statements for further discussion of market risk exposure.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures — Seaboard’s management evaluated, under the direction of the Chief Executive and Chief Financial Officers, the effectiveness of Seaboard’s disclosure controls and procedures as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of April 4, 2026. Based upon and as of the date of that evaluation, Seaboard’s Chief Executive and Chief Financial Officers concluded that Seaboard’s disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in the reports it files and submits under the Exchange Act is recorded, processed, summarized and reported as and when required. It should be noted that any system of disclosure controls and procedures, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. In addition, the design of any system of disclosure controls and procedures is based in part upon assumptions about the likelihood of future events. Due to these and other inherent limitations of any such system, there can be no assurance that any design will always succeed in achieving its stated goals under all potential future conditions.
Change in Internal Control Over Financial Reporting — There have been no changes in Seaboard’s internal control over financial reporting required by Exchange Act Rule 13a-15(f) that occurred during the fiscal quarter ended April 4, 2026, that have materially affected, or are reasonably likely to materially affect, Seaboard’s internal control over financial reporting.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
For information related to Seaboard’s legal proceedings, see Note 4 to the condensed consolidated financial statements.
Item 1A. Risk Factors
Except for the additional risk factor set forth below, there have been no material changes in the risk factors as previously disclosed in Seaboard’s 2025 10-K:
Operational Risks
| (1) | The Conflict Involving Iran Could Further Indirectly Affect the Business. In February 2026, the U.S. and Israel launched military strikes against Iran. The Middle East is a critical corridor for the global movement of crude oil, refined petroleum products, LNG and other commodities. Overall, the conflict and heightened geopolitical tensions involving Iran have affected, and could continue to affect, global economic conditions, commodity markets, energy and input costs and global supply chains. Although Seaboard does not operate in Iran, |
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| Seaboard’s operations have been indirectly impacted by higher fuel costs and grain prices resulting from the conflict. A prolonged or expanded conflict could negatively impact Seaboard’s business, financial condition and results of operations. |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
There were no purchases of Seaboard’s common stock made by or on behalf of Seaboard or any “affiliated purchaser” (as defined by applicable rules of the Securities and Exchange Commission) during the fiscal quarter ended April 4, 2026. See Note 6 to the condensed consolidated financial statements for further discussion of Seaboard’s share repurchase program.
Item 5. Other Information
During the three months ended April 4, 2026,
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Item 6. | | Exhibits |
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Exhibit No. | | Description |
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10.1* | | Seaboard Corporation Employee Welfare Plan as Amended and Restated effective April 1, 2026 |
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10.2* | | Seaboard Corporation Retiree Medical Benefit Plan as Amended and Restated effective April 1, 2026 |
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31.1 | | Certification of the Chief Executive Officer Pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
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31.2 | | Certification of the Chief Financial Officer Pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
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32.1 | | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
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32.2 | | Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
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101.INS | | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
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101.SCH | | Inline XBRL Taxonomy Extension Schema Document |
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101.CAL | | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
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101.DEF | | Inline XBRL Taxonomy Extension Definition Linkbase Document |
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101.LAB | | Inline XBRL Taxonomy Extension Label Linkbase Document |
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101.PRE | | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
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104 | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* Management contract or compensatory plan or arrangement.
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Forward-looking Statements
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This Form 10-Q contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including with respect to the financial condition, results of operations, plans, objectives, future performance and business of Seaboard. Forward-looking statements generally may be identified as statements that are not historical in nature and statements preceded by, followed by or that include the words “believes,” “expects,” “may,” “will,” “should,” “could,” “anticipates,” “estimates,” “intends,” or similar expressions. In more specific terms, forward-looking statements, include without limitation: statements concerning projection of revenues, income or loss, adequate liquidity levels, capital expenditures, capital structure or other financial items, including the impact of mark-to-market accounting on operating income; statements regarding the plans and objectives of management for future operations; statements of future economic performance; statements regarding the intent, belief or current expectations of Seaboard and its management with respect to: (i) Seaboard’s ability to obtain adequate financing and liquidity; (ii) the price of feed stocks and other materials used by Seaboard; (iii) the sale price or market conditions for pork, agricultural commodities, biofuel and related environmental credits, turkey and other products and services; (iv) the recorded tax effects under certain circumstances and expected changes in tax laws and effects thereof; (v) the volume of business and working capital requirements associated with the competitive trading environment for the CT&M segment; (vi) monetizing biofuel production tax credits; (vii) the charter hire rates and fuel prices for vessels; (viii) the fuel costs and related spot market prices for electricity in the Dominican Republic; (ix) the effect of foreign currency exchange rate fluctuations; (x) the profitability or sales volume of any of Seaboard’s segments; (xi) the anticipated costs and completion timetables for Seaboard’s scheduled capital improvements, acquisitions and dispositions; (xii) the productive capacity of assets that are planned, under construction or in the early development stages, and the timing of the commencement or maturity of operations; (xiii) potential future impact on Seaboard’s business of new legislation, rules or policies; (xiv) adverse results in pending or future litigation matters; (xv) Seaboard’s ability to realize deferred tax assets or the need to record or reverse valuation allowances in future periods; (xvi) expectations regarding future regulatory developments or other matters and whether such matters will or will not have a material adverse effect on Seaboard’s results of operations, business or financial condition, including any preliminary estimates of such effects; (xvii) Seaboard’s ability to trade with foreign customers and operate abroad and the impacts of trade restrictions, tariffs and similar government actions; (xviii) the impact of geopolitical conflicts or changes in geopolitical conditions; (xix) Seaboard’s share repurchase program; or (xx) other trends affecting Seaboard’s financial condition or results of operations, and statements of the assumptions underlying or relating to any of the foregoing statements.
This list of forward-looking statements is not exclusive. Forward-looking statements are based only on Seaboard’s current beliefs, expectations and assumptions regarding its future financial condition, results of operations, plans, objectives, performance and business. Seaboard undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changes in assumptions or otherwise, except as required by law. Forward-looking statements are not guarantees of future performance or results. They involve risks, uncertainties and assumptions. Actual results may differ materially from those contemplated by the forward-looking statements due to a variety of factors. Such factors include risks associated with international operations, including the ongoing conflict between Russia and Ukraine and tensions in the Middle East, deterioration of economic conditions, interest rate fluctuations, inflation, systemic pressures in the banking industry, including potential disruptions in credit markets, supply chain and labor market disruptions, stock price fluctuations, decentralization of operations, investments in non-consolidated affiliates, estimating future income taxes, cyber-attacks and cybersecurity breaches, the food industry, health risks to animals, fluctuations in commodity prices, increases in costs of purchases, difficulties in obtaining and retaining appropriate personnel, the loss or closure of principal properties, disruptions of operations of suppliers and co-packers, ocean transportation, fluctuations in fuel costs, general risks of litigation, compliance with complex rules and regulations, including stringent environmental regulation and measures to address climate change, risks associated with trade restrictions, tariffs and similar government actions, changes in tax laws, adverse weather conditions and specific risks relating to Seaboard’s segments. The information contained in this report, including without limitation the information under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” as well as the information included under the caption “Risk Factors” in Seaboard’s 2025 10-K, as supplemented by the information included under the caption “Risk Factors” in this quarterly report on Form 10-Q, describes these factors and identifies other important factors that could cause such differences.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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| SEABOARD CORPORATION | |
| | (Registrant) |
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| by: | /s/ David H. Rankin |
| | David H. Rankin Executive Vice President, Chief Financial Officer |
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| | (principal financial officer) |
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| Date: May 5, 2026 | |
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| by: | /s/ Barbara M. Smith |
| | Barbara M. Smith Vice President and Corporate Controller |
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| | (principal accounting officer) |
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| Date: May 5, 2026 | |
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