On this page of StockholderLetter.com we present the latest annual shareholder letter from SEABOARD CORP /DE/ — ticker symbol SEB. Reading current and past SEB letters to shareholders can bring important insights into the investment thesis.
2024 ANNUAL REPORT
Letter to Stockholders Dear Stockholders: Overall net income was down in 2024 compared to 2023, principally due to a noncash tax adjustment of $212 million to deferred tax assets required by GAAP. We believe this valuation allowance will reverse in future years when domestic income rises. Operating income, however, was up from 2023. Operating income in 2024 increased by over $240 million compared to 2023, largely attributable to our Pork segment improving by $475 million. Although the Pork segment improved dramatically from the prior year, they still experienced some commodity headwinds that resulted in them recording only $20 million in operating income. Feed prices had been historically high in 2023 and into the start of 2024. That, along with some hog health issues, decreased earnings during this period. During this past year, we have seen corn and soybean meal prices return to more normal levels. We do not expect to see the full effects of the improvements in grain prices until 2025 as it takes time for lower feed prices to work their way through our integrated live production system. In the meantime, we are working diligently to increase efficiencies throughout this business with a focus on our live production system. Seaboard Overseas achieved the highest operating income of any segment in 2024. Over the last few years management has been able to implement a disciplined strategy that has helped bring more consistent and healthy profitability levels to this business. Fiscal 2024 had particularly strong results from our flour mills, while the trading business had slightly lower gross margins. We see a lot of areas of potential growth in the various markets this segment serves and will continue to evaluate additional investment opportunities as they arise. Seaboard Marine s profitability was down in 2024 compared to the prior three years but still strong from a historical perspective and we saw higher volumes than in the prior year. Seaboard Marine has definitive plans for the construction of eight container vessels. Six of these will be the largest in our fleet. Seaboard Marine has taken delivery of three of these vessels. The remaining five are expected to be delivered between now and the end of the year. We are excited for these dual-fueled vessels to join our fleet. They bring greater fuel efficiency, increased tonnage capacity and a host of other advantages. This is a fundamental improvement to Marine s fleet of vessels and one we believe is well timed and that will pay dividends for many years to come. Our Liquid Fuels segment continued to underperform in 2024 due to fuel and credit markets but there are many reasons to be optimistic about the future of this business. Downtime during the beginning of the year allowed for important repairs and upgrades which led to production at levels above nameplate capacity for a period of time. Management is working hard to make that level of production a new consistent baseline and we feel confident in achieving this goal. The replacement of the federal blender s tax credit with the production tax credit will likely bring a bit of volatility to the related markets but overall we believe we are positioned well for advantageous feedstocks for our fuels. Our Power segment in the Dominican Republic had another solid year with consistent profitability. Our assets there are very efficient and provide a reliable source of power to the country. In a year of depressed commodity prices for turkey, Butterball was still able to maintain profitability, albeit at a lower level than in the prior year. A continued focus on value-added products helps cushion some of the inherent commodity swings in that business. We believe that this current year is off to a good start, and we are hopeful commodity markets will continue to operate in more normal ranges. We look forward to our company s bright future. I am extremely proud of our 14,000-person workforce that bring passion and commitment to their jobs every day. Our ability to succeed and thrive is dependent on their efforts. Robert L. Steer President and Chief Executive Officer
 • shareholder letter icon 3/7/2025 Letter Continued (Full PDF)
 • stockholder letter icon 3/10/2023 SEB Stockholder Letter
 • stockholder letter icon 3/8/2024 SEB Stockholder Letter
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 • Benford's Law Stocks icon SEB Benford's Law Stock Score = 96


SEB Shareholder/Stockholder Letter Transcript:

2024
ANNUAL REPORT

Letter to Stockholders
Dear Stockholders:
Overall net income was down in 2024 compared to 2023, principally due to a noncash tax adjustment of $212 million
to deferred tax assets required by GAAP. We believe this valuation allowance will reverse in future years when
domestic income rises. Operating income, however, was up from 2023. Operating income in 2024 increased by over
$240 million compared to 2023, largely attributable to our Pork segment improving by $475 million.
Although the Pork segment improved dramatically from the prior year, they still experienced some commodity
headwinds that resulted in them recording only $20 million in operating income. Feed prices had been historically
high in 2023 and into the start of 2024. That, along with some hog health issues, decreased earnings during this period.
During this past year, we have seen corn and soybean meal prices return to more normal levels. We do not expect to
see the full effects of the improvements in grain prices until 2025 as it takes time for lower feed prices to work their
way through our integrated live production system. In the meantime, we are working diligently to increase efficiencies
throughout this business with a focus on our live production system.
Seaboard Overseas achieved the highest operating income of any segment in 2024. Over the last few years
management has been able to implement a disciplined strategy that has helped bring more consistent and healthy
profitability levels to this business. Fiscal 2024 had particularly strong results from our flour mills, while the trading
business had slightly lower gross margins. We see a lot of areas of potential growth in the various markets this
segment serves and will continue to evaluate additional investment opportunities as they arise.
Seaboard Marine   s profitability was down in 2024 compared to the prior three years but still strong from a historical
perspective and we saw higher volumes than in the prior year. Seaboard Marine has definitive plans for the
construction of eight container vessels. Six of these will be the largest in our fleet. Seaboard Marine has taken delivery
of three of these vessels. The remaining five are expected to be delivered between now and the end of the year. We
are excited for these dual-fueled vessels to join our fleet. They bring greater fuel efficiency, increased tonnage capacity
and a host of other advantages. This is a fundamental improvement to Marine   s fleet of vessels and one we believe is
well timed and that will pay dividends for many years to come.
Our Liquid Fuels segment continued to underperform in 2024 due to fuel and credit markets but there are many reasons
to be optimistic about the future of this business. Downtime during the beginning of the year allowed for important
repairs and upgrades which led to production at levels above nameplate capacity for a period of time. Management is
working hard to make that level of production a new consistent baseline and we feel confident in achieving this goal.
The replacement of the federal blender   s tax credit with the production tax credit will likely bring a bit of volatility to
the related markets but overall we believe we are positioned well for advantageous feedstocks for our fuels.
Our Power segment in the Dominican Republic had another solid year with consistent profitability. Our assets there
are very efficient and provide a reliable source of power to the country.
In a year of depressed commodity prices for turkey, Butterball was still able to maintain profitability, albeit at a lower
level than in the prior year. A continued focus on value-added products helps cushion some of the inherent commodity
swings in that business.
We believe that this current year is off to a good start, and we are hopeful commodity markets will continue to operate
in more normal ranges. We look forward to our company   s bright future.
I am extremely proud of our 14,000-person workforce that bring passion and commitment to their jobs every day. Our
ability to succeed and thrive is dependent on their efforts.
Robert L. Steer
President and
Chief Executive Officer



shareholder letter icon 3/7/2025 Letter Continued (Full PDF)
 

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