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Seaboard Q1 2025 Earnings Report
Seaboard reported its Q1 2025 earnings with an increase in net sales and operating income, driven by strong performance in the Marine, CT&M, and Liquid Fuels segments, despite a decrease in the Pork segment's operating income.
Key Takeaways
Seaboard Corporation reported a significant increase in net sales and operating income for the first quarter of 2025 compared to the same period in 2024. Net sales rose by $125 million to $2,316 million, and operating income increased by $58 million to $38 million. This growth was primarily fueled by higher voyage revenue in the Marine segment, mark-to-market gains and higher commodity volumes in CT&M, and increased fuel and environmental credits sales in Liquid Fuels. However, the Pork segment experienced a decline in operating income due to lower margins.
Net sales increased by $125 million to $2,316 million in Q1 2025, up from $2,191 million in Q1 2024.
Operating income improved significantly, moving from a loss of $20 million in Q1 2024 to a gain of $38 million in Q1 2025.
The Marine segment saw a $71 million increase in net sales and a $42 million increase in operating income, driven by higher cargo volumes and freight rates.
The Pork segment's operating income decreased by $32 million due to lower margins on pork products and market hogs sold, and increased legal claims expense.
Forward Guidance
Seaboard anticipates continued profitability for the Marine segment and expects the Liquid Fuels segment to be near break-even for the remainder of 2025, despite a scheduled maintenance period. The Pork segment's profitability remains uncertain due to tariffs and market price volatility. Capital expenditures are budgeted at $451 million for the remainder of 2025, primarily for vessel construction in the Marine segment.
Positive Outlook
- Marine segment is anticipated to remain profitable for the remainder of 2025.
- Liquid Fuels segment is expected to be near break-even for the remainder of 2025.
- CT&M segment anticipates positive operating income, excluding mark-to-market adjustments.
- Turkey segment is anticipated to be profitable for the remainder of 2025.
- Management anticipates paying for capital expenditures from available cash, short-term investments, and borrowing capacity.
Challenges Ahead
- Pork segment's profitability for the remainder of 2025 is uncertain due to tariffs and market price volatility.
- Uncertainty regarding changes in fuel costs or other voyage costs, cargo volumes, or cargo rates for future periods in the Marine segment.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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