Seaboard Corporation Reports $32 Million Net Income and $2.316 Billion Revenue in Q1 2025

Seaboard Corporation reported a net income of $32 million for the first quarter of 2025, a significant increase from $22 million in the same period of the previous year. The company's total revenue for the quarter reached $2.316 billion, up from $2.191 billion in the first quarter of 2024, reflecting a $125 million increase primarily driven by higher sales in the Marine, Commodity Trading and Milling (CT&M), and Liquid Fuels segments. The Marine segment alone contributed an additional $71 million in sales due to increased voyage revenue, while the CT&M segment saw a $35 million rise from higher commodity volumes sold.

In terms of operational performance, Seaboard's operating income rose to $38 million, compared to a loss of $1 million in the prior year. This improvement was largely attributed to a $42 million increase in operating income from the Marine segment, alongside gains in the CT&M and Liquid Fuels segments. However, the Pork segment experienced a decline in operating income, dropping from a profit of $1 million to a loss of $31 million, primarily due to lower margins on pork products and market hogs sold, as well as increased legal claims expenses.

Seaboard's balance sheet as of March 29, 2025, showed total assets of $7.633 billion, slightly down from $7.665 billion at the end of 2024. The company maintained a strong liquidity position with cash and short-term investments totaling approximately $1.1 billion. Notably, Seaboard amended its committed line of credit agreement, reducing the available amount from $450 million to $300 million while extending the maturity date to March 2026. The company also entered into a new uncommitted line of credit agreement with a borrowing capacity of up to $100 million.

Looking ahead, Seaboard's management has budgeted approximately $451 million for capital expenditures in 2025, focusing on investments in the Marine and Pork segments. The company anticipates that the Marine segment will remain profitable, although it acknowledges the challenges posed by fluctuating fuel costs and global economic conditions. The Pork segment's profitability remains uncertain due to potential impacts from U.S. trade tariffs and market price volatility. Overall, Seaboard's management is closely monitoring these factors as they navigate the complexities of the current economic landscape.