Seaboard (SEB) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 increased to $2.32 billion, up from $2.19 billion in Q1 2024, driven by higher Marine, CT&M, and Liquid Fuels segment sales.

• Operating income improved by $58 million compared to Q1 2024, with significant gains in Marine and CT&M segments, partially offset by a decline in Pork segment profitability.

• Net earnings rose to $32 million from $22 million in the prior year quarter; EPS increased to $32.95 from $22.66.

• Cash and short-term investments totaled nearly $1.1 billion as of March 29, 2025, with net working capital of $1 billion.

Financial highlights

• Q1 2025 net sales: $2.32 billion, up from $2.19 billion in Q1 2024.

• Operating income: $38 million, compared to a loss of $20 million in Q1 2024.

• Net earnings: $32 million, up from $22 million year-over-year.

• Cash used in operating activities: $20 million, versus $19 million provided in Q1 2024, mainly due to inventory timing in CT&M.

• Capital expenditures: $109 million, with $74 million in Marine for vessel construction.

Outlook and guidance

• Management anticipates positive operating income for CT&M and Marine segments, but notes ongoing volatility in commodity and freight markets.

• Liquid Fuels segment expected to be near break-even for the remainder of 2025; scheduled maintenance will halt production for about one month in Q2.

• Pork segment profitability remains uncertain due to tariffs and market volatility; China imposed new retaliatory tariffs on U.S. pork in April 2025.

• Capital expenditures for the remainder of 2025 are budgeted at $451 million, mainly for Marine vessel payments and Pork segment investments.