Financial Analysis

Note 8 - Commitments and Contingencies Legal Proceedings Seaboard is subject to various legal proceedings and claims that arise in the ordinary course of business and otherwise, including those matters described below. Seaboard accrues liabilities for loss contingencies when it is deemed probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, Seaboard accrues the minimum amount in the range. For such matters where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, no accrual has been made. Seaboard has made appropriate and adequate accruals for loss contingencies where necessary as of December 31, 2025. Substantially all of Seaboards contingencies are subject to uncertainties and, therefore, determining the likelihood of a loss or the measurement of any loss can be complex. Consequently, Seaboard is unable to estimate the range of reasonably possible loss in excess of the amounts accrued. Seaboards assessments, which result from a complex series of judgments about future events and uncertainties, are based on estimates and assumptions deemed reasonable by management, including an expected probable loss associated with settlin …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 7 - Debt Lines of Credit The outstanding balances under uncommitted lines of credit were $274 million and $139 million as of December 31, 2025 and 2024, respectively. Of the outstanding balance as of December 31, 2025, $139 million was denominated in foreign currencies, with $94 million denominated in the euro. Of the outstanding balance as of December 31, 2024, $83 million was denominated in foreign currencies, with $62 million denominated in the South African rand. The uncommitted lines of credit are due on demand. Seaboard has an uncommitted line of credit agreement with up to $100 million of borrowing capacity that is secured by eligible accounts receivable. There were no borrowings outstanding under this uncommitted line as of December 31, 2025. During 2025, Seaboard amended its committed line of credit agreement. The amendment decreased the amount available under the facility from $450 million to $300 million and extended the maturity date of the facility to March 23, 2026. This line of credit is secured by certain short-term investments and bears interest at the Secured Overnight Financing Rate (SOFR) plus an applicable spread. The outstanding balances under the committed line of credit were $184 million and $175 million as of December 31, 2025 and 2024, respectively. The weighted-average interest rate for outstanding lines of credit was 4.79% and 6.47% as of December 31, 2025 and 2024, respectively. Long-Term Debt The following table is a summary of long-term deb …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 12 - Income Taxes Earnings before income taxes were as follows: Years ended December 31, (Millions of dollars) 2025 2024 2023 U.S. $ 56 $ (41) $ (403) Foreign 354 287 510 Total earnings before income taxes $ 410 $ 246 $ 107 The components of total income taxes were as follows: Years ended December 31, (Millions of dollars) 2025 2024 2023 Current: U.S. federal $ (82) $ (38) $ (36) U.S. state and local 5 Foreign 67 64 65 Total current income tax expense (benefit) $ (15) $ 26 $ 34 Deferred: U.S. federal $ 13 $ 63 $ (118) U.S. state and local (89) 67 (35) Foreign (1) Total deferred income tax expense (benefit) $ (76) $ 130 $ (154) Total income tax expense (benefit): U.S. federal $ (69) $ 25 $ (154) U.S. state and local (89) 67 (30) Foreign 67 64 64 Total income tax expense (benefit) $ (91) $ 156 $ (120) Unrealized changes in other comprehensive income 4 Total income taxes $ (91) $ 156 $ (116) After adoption of the new FASB guidance discussed in Note 1 to the consolidated financial statements, a reconciliation of income taxes for the year ended December 31, 2025, to the amount computed by applying the statutory U.S. federal income tax rate of 21% to earnings before income taxes is as follows: Year ended December 31, (Millions of dollars) 2025 Amount Percent U.S. federal statutory income tax rate $ 86 21.0 % U.S. federal: Tax credits: Investment tax credits, net (11) (2.7) Research and development credits (6) (1.5) Foreign tax credits (10) (2.4) Non-taxable and nondeductible i …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards Adopted For the year ended December 31, 2025, Seaboard adopted Financial Accounting Standards Board (FASB) guidance that requires additional detailed income tax disclosures related to standardization and disaggregation of information in the rate reconciliation and income taxes paid by jurisdiction. This accounting standard was applied prospectively to the current annual period, and prior period disclosures were not adjusted. See Note 12 to the consolidated financial statements for expanded disclosures. Recently Issued Accounting Standards Not Yet Adopted In December 2025, the FASB issued guidance on the recognition, measurement and presentation of government grants. The standard is effective for interim and annual reporting periods beginning January 1, 2029. Seaboard is assessing the impact this guidance will have on its financial statements , including the accounting for production tax credits. Based on preliminary analysis, Seaboard does not expect significant changes, as the U.S. GAAP model under the new standard is largely aligned with international accounting standards applicable for Seaboards facts and circumstances. In November 2024, the FASB issued guidance which requires disclosure of incremental income statement expense information on an annual and interim basis, primarily through additional expense disclosures including disaggregation of specific expense categories including, but not limited to, purchases of inventory, employee …

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Note 9 - Employee Benefits During 2025, Seaboard merged its two qualified defined benefit plans into one qualified defined benefit pension plan for its domestic salaried and clerical employees. The plan has been frozen to new participants since January 1, 2014. Benefits are generally based upon the number of years of service and a percentage of final average pay. Seaboard did not make any contributions in 2025, 2024 and 2023 and does not intend to make any contributions in 2026. Also, Seaboard sponsors non-qualified, unfunded supplemental executive plans. Management has no plans to provide funding for these supplemental executive plans in advance of when the benefits are paid. Pursuant to Seaboards updated investment policies for the qualified pension plan, assets are invested to achieve a diversified target allocation of approximately 65% in equities and 35% in fixed-income securities. For 2024, the allocation was approximately 80% in equities and 20% in fixed-income securities. The investment strategy is periodically reviewed by management for adherence to policy and performance. The following tables show the qualified plans assets measured at estimated fair value as of December 31, 2025 and 2024, respectively, and the level within the fair value hierarchy used to measure each category of assets: December 31, (Millions of dollars) 2025 Level 1 Level 2 Level 3 Assets: Domestic equity securities $ 86 $ 86 $ $ Foreign equity securities 58 58 Domestic fixed-income mutual funds …

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Note 13 - Segment Information Seaboard manages its business under six reportable segments: Pork, CT&M, Marine, Liquid Fuels, Power and Turkey. Each of the six reportable segments is separately managed based on its diverse product or service. All Other primarily represents a sugar and alcohol production and processing operation in Argentina. The Pork segment primarily produces hogs to process and sells pork products to further processors, food service operators, distributors and grocery stores throughout the U.S. and to foreign markets. The CT&M segment is an integrated agricultural commodity trading, processing and logistics operation that internationally markets wheat, corn, soybean meal and other agricultural commodities in bulk to third-party customers and to consolidated subsidiaries and non-consolidated affiliates. The Marine segment provides cargo shipping services in the U.S., the Caribbean and Central and South America. The Liquid Fuels segment produces biodiesel and renewable diesel from pork fat and other animal fats and vegetable oils, and generates related environmental credits and production tax credits. The Power segment is an independent power producer in the Dominican Republic that owns two power-generating barges. The Turkey segment holds an equity method investment that produces and processes turkey products. See Note 6 for additional information on this segment. Seaboards Chief Executive Officer serves as the CODM. The CODM assesses performance and …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 11 - Stockholders Equity and Accumulated Other Comprehensive Loss During 2025, Seaboards Board of Directors approved a share repurchase program authorizing the repurchase of up to $100 million of its outstanding shares of common stock (Shares) through December 31, 2027, unless extended or earlier terminated. Under the share repurchase program, Seaboard is authorized to repurchase Shares from time-to-time in the open-market, through block trades, in privately negotiated purchases, pursuant to a trading plan, or by other means, in accordance with federal securities laws and other applicable laws. For the year ended December 31, 2025, Seaboard repurchased 13,261 Shares, and retained earnings decreased $39 million as a result of the purchases and related U.S. excise taxes. Shares repurchased were retired and became authorized and unissued shares. As of December 31, 2025, $62 million remained available for repurchase under this program. During 2023, in a privately negotiated transaction, Seaboard repurchased an aggre gate of 189,724 Shar es from certain affiliates at a price below the traded market price for an aggregate purchase price of $600 million. Shares repurchased were retired and retained earnings decreased $608 million for the purchase and related U.S. excise taxes for the year ended December 31, 2023. The excise taxes were paid during 2024. The components of accumulated other comprehensive loss (AOCL), net of related taxes, were as follows: Cumulative Foreign Cumula …

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Note 4 Lines of Credit, Long-Term Debt, Commitments and Contingencies Lines of Credit As of September 27, 2025, the outstanding balances under committed and uncommitted lines of credit were $175 million and $338 million, respectively. Of the total outstanding balance as of September 27, 2025, $192 million was denominated in foreign currencies with $117 million in euro, $58 million in South African rand and the remaining in various other currencies. As of December 31, 2024, the outstanding balances under committed and uncommitted lines of credit were $175 million and $139 million, respectively. Of the total outstanding balance as of December 31, 2024, $83 million was denominated in foreign currencies, with $62 million in South African rand and the remaining in various other currencies. The weighted average interest rate for outstanding lines of credit was 5.03% and 6.47% as of September 27, 2025 and December 31, 2024, respectively. Seaboard has an uncommitted line of credit agreement with up to $100 million of borrowing availability that is secured by certain eligible accounts receivable. There were no borrowings outstanding under this uncommitted line as of September 27, 2025. In March 2025, Seaboard amended its committed line of credit agreement. The amendment decreased the amount available under the facility from $450 million to $300 million and extended the maturity date of the facility to March 23, 2026. This line of credit is secured by certain short-term investments and …

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Note 8 Income Taxes In July 2025, the U.S. signed into law the One Big Beautiful Bill Act (OBBBA). The OBBBA imposed various changes to U.S. federal income tax regulation, including restoring 100% bonus depreciation, removing the requirement to capitalize and amortize domestic research and development expenditures, increasing interest deductibility and reducing certain international deductions. The OBBBA also included certain modifications to the Inflation Reduction Act of 2022, including extending the clean fuel production tax credit from 2027 through 2029. The effective provisions of the OBBBA were reflected in Seaboards financial results for the three months ended September 27, 2025, and there was no material impact to income tax expense. International provisions will generally be effective beginning in 2026, and Seaboard continues to evaluate the potential impact of the OBBBA on those provisions to its financial statements. Seaboard assesses the realizability of its deferred tax assets each reporting period. If it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established and maintained until there is sufficient evidence to support its reversal. Realizability of deferred tax assets is based on the weight of available positive and negative evidence to estimate whether sufficient future taxable income will be generated. As of September 27, 2025, Seaboards U.S. operations were in a historical three-year cumulative loss positio …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Standards In Seaboards 2024 10-K, Seaboard adopted Financial Accounting Standards Board (FASB) guidance that requires incremental segment disclosures including the disclosure of significant segment expenses regularly provided to Seaboards chief operating decision maker (CODM). These additional disclosures were effective for interim reporting periods beginning on January 1, 2025, and were applied retrospectively to the prior financial periods presented herein. See Note 7 to the condensed consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In December 2023, the FASB issued guidance that requires additional detailed income tax disclosures related to standardization and disaggregation of information in the rate reconciliation and income taxes paid by jurisdiction. Seaboard will adopt this guidance in the Form 10-K for the year ended December 31, 2025 . Seaboard is currently evaluating the impact this guidance will have on its disclosures. In November 2024, the FASB issued guidance that requires disclosure of incremental income statement expense information on an annual and interim basis, primarily through additional expense disclosures including disaggregation of specific expense categories including, but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. Prospective application is required, and retrospective application is permitted. Seaboard will adopt th …

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Note 7 Segment Information Seaboard has six reportable segments: Pork, CT&M, Marine, Liquid Fuels, Power and Turkey. Seaboards remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as All Other. Each of the six reportable segments is separately managed based on its diverse product or service. All Other primarily represents a sugar and alcohol production and processing operation in Argentina and a jalapeno pepper processing operation in Honduras. For details on each segments respective products and services, see Note 13 to the consolidated financial statements included in Seaboards 2024 10-K. Seaboards Chief Executive Officer serves as the CODM. The CODM assesses performance and makes key operating decisions based on total operating income and income from affiliates. The CODM uses this measure to compare to historical trends and forecasts to assess segment results, allocate capital, make strategic decisions and identify areas of opportunity. Operating income and income from affiliates for segment reporting is prepared on the same basis as that used for consolidated purposes under U.S. GAAP. The CODM does not receive proportionate consolidation information for equity method investments. The following tables include certain segment information for the three and nine months ended September 27, 2025 and September 28, 2024, and as of September 27, 2025 and December 31, 2024. The significant segment expense categor …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 6 Stockholders Equity and Accumulated Other Comprehensive Loss During the second quarter of 2025, Seaboards Board of Directors approved a share repurchase program authorizing the repurchase of up to $100 million of its outstanding shares of common stock (Shares) through December 31, 2027, unless extended or earlier terminated. Under the share repurchase program, Seaboard is authorized to repurchase Shares from time-to-time in the open-market, through block trades, in privately negotiated purchases, pursuant to a trading plan, or by other means, in accordance with federal securities laws and other applicable laws. The timing and volume of share repurchases will be determined by management at its discretion and will depend on a number of factors, including constraints specified in any applicable trading plans, the market price of the Shares, general business and market conditions, alternative investment opportunities, Seaboards financial condition and applicable legal requirements. The share repurchase program does not obligate Seaboard to acquire a minimum amount of Shares, and the program may be modified, suspended or terminated at any time at Seaboards discretion. Seaboard repurchased 4,525 and 13,104 Shares, and retained earnings decreased $14 million and $38 million as a result of the purchases and related U.S. excise taxes during the three- and nine-month periods ended September 27, 2025, respectively. Shares repurchased were retired and became authorized and unissue …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing