SEBMEDIUM SIGNALOPERATIONAL10-K

Seaboard completed a significant business reorganization, separating its Liquid Fuels operations into a standalone segment while consolidating Sugar and Alcohol operations into "All Other" due to reduced economic impact from Argentine operations.

The segment restructuring reflects management's strategic focus on higher-performing business units, with Liquid Fuels now receiving dedicated reporting attention while the troubled Argentine sugar operations are de-emphasized. This reorganization should provide investors with better visibility into the performance drivers of Seaboard's diverse portfolio and suggests a more disciplined capital allocation approach.

Comparing 2026-02-12 vs 2025-02-13View on EDGAR →
FINANCIAL ANALYSIS

Seaboard's financial performance showed meaningful improvement with operating income substantially higher year-over-year, supported by a 20.3% increase in gross profit. The company significantly strengthened its balance sheet liquidity with cash growing 81.6% to $178M, though total debt increased 53.3% to $739M, resulting in higher interest expense of 45%. R&D spending declined notably by 43.4% to $64M, potentially reflecting the operational restructuring and focus on core business efficiency.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+81.6%
$98.0M→$178.0M

Cash position surged 81.6% — strong cash generation or capital raise providing significant financial cushion.

Total Debt
Balance Sheet
+53.3%
$482.0M→$739.0M

Debt increased 53.3% — substantial leverage increase; assess whether deployed for growth or covering losses.

Operating Income
P&L
+53.2%
$156.0M→$239.0M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Interest Expense
P&L
+45%
$40.0M→$58.0M

Interest expense surged 45% — significant debt increase or rising rates materially impacting earnings.

R&D Expense
P&L
-43.4%
$113.0M→$64.0M

R&D spending cut 43.4% — could signal cost discipline or concerning reduction in innovation investment.

Gross Profit
P&L
+20.3%
$576.0M→$693.0M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Stockholders Equity
Balance Sheet
+10.2%
$4.7B→$5.2B

Equity base grew 10.2% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-13
ADDED
); commodity trading and grain processing in Africa and South America; cargo shipping services in the U.S., Caribbean and Central and South America; and electric power generation in the Dominican Republic.
All Other represents primarily a sugar and alcohol production and processing operation in Argentina.
See Note 13 to the consolidated financial statements for each segment s contribution to net sales and operating income (loss), and its respective assets and capital expenditures.
Description of Segments Pork Segment - Seaboard, through its subsidiary Seaboard Foods LLC ( Seaboard Foods ), is a vertically integrated pork producer.
Seaboard Foods primarily sells pork products to further processors, foodservice operators, distributors and grocery stores in the U.S.
and internationally, with approximately 25% of sales to Mexico, Japan, China and numerous other foreign markets.
This segment also sells swine-derived renewable natural gas, produced from its integrated model of hog operations, covered anaerobic digester lagoons and biomethane upgrading facilities at certain of its hog farms in Texas, Oklahoma and Kansas.
Environmental credits are generated based on gas production and then sold to third parties.
Production tax credits are generated based on the greenhouse gas emissions factor of gas produced.
Most sites are still in the early stages of operation, and sales of renewable natural gas and related credits are not material.
REMOVED
); commodity trading and grain processing in Africa and South America; cargo shipping services in the U.S., Caribbean and Central and South America; electric power generation in the Dominican Republic; and sugar and alcohol production in Argentina.
All Other represents primarily a sugar and alcohol production and processing operation in Argentina and a jalape o pepper processing operation in Honduras.
Liquid Fuels, previously part of the Pork segment, became a separate reportable segment and the previously separate Sugar and Alcohol reportable segment became part of All Other as the economic conditions in Argentina over several years reduced this segment s impact on overall company performance.
See Note 13 to the consolidated financial statements for additional information regarding these changes and each segment s contribution to net sales and operating income (loss), and its respective assets and capital expenditures.
Description of Segments Pork Segment - Seaboard, through its subsidiary Seaboard Foods LLC ( Seaboard Foods ), is a vertically integrated pork producer that primarily produces and sells pork products to further processors, foodservice operators, distributors and grocery stores.
customers and exports to Japan, Mexico, China and numerous other foreign markets.
Seaboard has a 50% investment in Seaboard Triumph Foods, LLC ( STF ), which operates a pork processing plant in Iowa with a capacity to process approximately six million hogs annually.
Seaboard and Triumph Foods, LLC ( Triumph ), an independent pork processor, supply a portion of the hogs processed at the STF plant.
This segment also produces swine-derived renewable natural gas with its integrated model of hog operations, covered anaerobic digester lagoons and biomethane upgrading facilities at certain of its hog farms in Texas, Oklahoma and Kansas.
Environmental credits are generated upon gas production and then sold to third parties.
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