SEB earnings analysis
What we found in SEB's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Seaboard delivered Q2 revenue of $2.922 billion, up $442 million year over year and $522 million sequentially, while operating income increased $48 million year over year. Liquid Fuels and CT&M were the principal growth engines, but Marine profit fell $37 million on higher voyage costs and Pork sales declined $27 million. Liquidity was solid at nearly $1.2 billion in cash and short-term investments, although six-month operating cash flow was a $30 million outflow as working-capital requirements increased.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated to $2.922 billion
- Second-quarter net sales were $2.922 billion, up $442 million year over year. This also implies a $522 million increase from $2.400 billion in Q1 2026.
- Operating income rose $48 million
- Consolidated operating income increased $48 million year over year in the quarter, led by a $79 million increase in Liquid Fuels operating income.
- Liquid Fuels drove the growth
- Liquid Fuels sales increased $224 million year over year, including $138 million from environmental-credit sales and $86 million from fuel sales. The EPA's March 27, 2026 renewable-volume-obligation decision supported credit demand and prices.
- CT&M volume growth lifted sales
- CT&M quarterly sales reached $1.551 billion, up $208 million year over year, as higher commodity volumes added $196 million and a 1% increase in average prices added $12 million.
- Liquidity remains well funded
- Liquidity remained substantial at nearly $1.2 billion of cash and short-term investments plus $1.2 billion of additional net working capital as of July 4, 2026. Long-term debt was $972 million, including a $948 million term loan due in 2033.
- Capital spending moderated
- Six-month capital expenditures fell to $198 million from a prior-year level that was $62 million higher. Of 2026 year-to-date capex, $79 million was invested in the Power segment, primarily for EDM IV.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- New Iran-conflict risk factor
- The sole new risk-factor update concerns the Iran conflict, which began in February 2026 and continued through Q2. Seaboard cites higher fuel prices, shipping costs and grain prices; Marine vessel-fuel costs rose $19 million year over year in the quarter.
- Marine cost inflation cut profit
- Marine operating income declined $37 million year over year despite a 3% increase in average freight rates and a 2% rise in cargo volumes. Higher port, canal, stevedoring, terminal, trucking and fuel expenses pressured profitability.
- Working capital reversed operating cash flow
- Six-month operating cash flow swung to a $30 million use from $61 million of cash provided a year earlier, principally reflecting a $160 million increase in cash used for working capital. Inventory and receivables increased, with CT&M shipment timing a key source of volatility.
- Pork pricing and supply remain weak
- Pork quarterly sales fell $27 million year over year as lower prices reduced sales by $18 million and lower volumes reduced sales by $17 million. Management is uncertain whether the segment will be profitable for the remainder of 2026.
- EDM III outage clouds Power outlook
- Power's EDM III barge was found to have damage in a post-quarter-end inspection and will be nonoperational for an undetermined period. Management is uncertain whether Power will be profitable for the remainder of 2026, while it has budgeted approximately $60 million of remaining 2026 EDM IV construction spending.
What they reported.
What the company itself reported, taken out of the document.
- Segment
- CT&M revenue: $1.551 billion, up $208 million year over year.
- Segment
- Liquid Fuels revenue: up $224 million year over year; the filing does not provide the segment's absolute quarterly revenue in the extracted table.
- Segment
- Pork revenue: down $27 million year over year; the filing does not provide the segment's absolute quarterly revenue in the extracted table.
- Segment
- Marine revenue increased on a 3% rise in average freight rates and a 2% increase in cargo volumes; absolute revenue was not available in the extracted table.
- Segment
- Power revenue increased, driven by higher spot power rates and generation; absolute revenue was not available in the extracted table.
- Segment
- Turkey affiliate sales prices rose 10% and volumes rose 6%; absolute revenue was not available in the extracted table.
What they said about what is next.
No quantitative revenue or EPS guidance was provided in the 10-Q. Management anticipates CT&M, Marine, Liquid Fuels and Turkey will be profitable for the remainder of 2026, while it is uncertain whether Pork and Power will be profitable. Management budgeted approximately $305 million of remaining 2026 capital expenditures, including approximately $60 million for Power's EDM IV project.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- Seaboard Corporation reported strong Q1 2026 results with revenue of $2.4 billion, up from $2.32 billion in Q1 2025, and substantially higher EPS of $124.24 compared to $32.95 a year ago. Significant growth was noted in…
- 10-K · February 12, 2026
- Seaboard reported FY2025 net sales of $9.746 billion (up $646 million vs. 2024) and operating income of $239 million (vs. $156 million in 2024), driven by higher CT&M volumes and stronger Marine voyage revenue. Net…
- 10-Q · April 30, 2024
- Seaboard reported net sales of $2,191,000,000 for the three months ended March 30, 2024, a decrease of $308 million versus the same period in 2023. Operating loss improved (decreased) by $43 million year-over-year…
- 10-Q · October 30, 2023
- Seaboard reported quarterly net sales of $2,388,000,000 (Q3 2023) — a year-over-year decline of $507 million — while operating income for the quarter declined $88 million versus the prior year. Segment performance was…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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