Seneca Foods Corporation: 2025 10-K Deep Dive

Seneca Foods Corporation (NASDAQ: SENEA/SENEB) published its 2025 Form 10-K on May 23, 2025. As a leading U.S. provider of packaged fruits and vegetables, Seneca operates 26 facilities nationwide, producing canned, frozen, jarred and snack products under private-label, co-pack and well-known brands (Seneca®, Libby’s®, Green Giant®†, Aunt Nellie’s®, CherryMan® and more). In fiscal 2025 (year ended March 31), Seneca achieved net sales of $1.579 billion, up 8.3% from $1.459 billion in 2024, while net earnings declined to $41.2 million from $63.3 million a year ago. This review unpacks the Business, Performance, Cash Flows, Risks and Outlook for Seneca and concludes with an investment score.

Warren.AI 💰 6.5 / 10

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1. Business Overview (Item 1)

• History & Scope. Founded in 1949, Seneca has grown via acquisitions and internal expansion. Today it operates 26 U.S. plants (New York, Michigan, Oregon, Wisconsin, etc.) and warehouses, plus a can manufacturing arm, seed production operation and logistics network. Headquartered in Fairport, NY, Seneca sells primarily in North America, exporting to 55 countries.
• Segments & Products. Seneca reports two packaging segments—Vegetables and Fruit/Snack—plus Other (cans, seed, third-party revenue). In FY 2025, food packaging accounted for 98% of net sales, led by canned vegetables (83%), frozen vegetables (8%), fruit (6%) and snacks (1%). Non-food packaging was 2%.
• Customers & Channels. Major grocery chains, mass merchandisers, dollar and club stores, foodservice distributors, national restaurants, industrial customers, export markets and government programs. Sales are split ~94.5% U.S. / 5.5% international in 2025.
• Brands & Licensing. Permanent, royalty-free license for Green Giant® shelf-stable vegetables; perpetual Libby’s® license through 2081 (royalty-bearing, $0.1 million paid in FY 2025); other trademarks (Seneca®, Aunt Nellie’s®).

2. Performance & Financial Condition (Items 7, 8, 7A)

2.1 Net Sales & Growth

Category	FY 2025 ($ 000s)	FY 2024 ($ 000s)	Change
Canned Vegetables	1,314,315	1,204,823	+9.1%
Frozen Vegetables	124,714	120,795	+3.3%
Fruit Products	92,378	87,435	+5.7%
Snacks	14,995	13,400	+11.9%
Other	32,485	32,150	+1.0%
Total	1,578,887	1,458,603	+8.3%

Seneca enjoyed broad‐based top-line growth, led by core canned vegetables and higher‐margin products like snacks. U.S. sales rose 8.5% to $1.492 billion; international sales increased 3.3% to $86.6 million.

2.2 Profitability & Margins

Gross Profit: $150.1 million (9.5% gross margin) vs. $188.2 million (12.9%) in FY 2024. Commodity inflation and rising energy, packaging and labor costs squeezed margins.

Operating Income: $65.6 million (4.2% operating margin) vs. $106.6 million (7.3%) prior year.

Net Earnings: $41.2 million (2.6% net margin) vs. $63.3 million (4.3%) in FY 2024.

2.3 Balance Sheet & Liquidity

• Inventory: $603.9 million, down from $872.7 million at FY 2024. Seasonal pack cycle peaked mid-year; inventory normalizes in Q4.
• Accounts Receivable: $96.3 million vs. $79.8 million, reflecting strong Q2/Q3 billing.
• Accounts Payable: $43.6 million vs. $40.3 million.
• Revolver Outstanding: $1.0 million at March 31, 2025 (down from $237.2 million), reflecting strong pack cash flow.
• Debt: Senior revolving credit facility and Farm Credit East line; net leverage remains modest (~1.0x EBITDA).
• Book Value: $10.02/share (aggregated from equity of $485.7 million / 48.5 million shares).

2.4 Cash Flows & Capital Expenditures

• Operating CF: Historically $70-$120 million/year. Pack season drives working cap swings; Q4 builds cash for Q2/Q3 harvest.
• Investing CF: $20-$30 million capex/year for productivity, maintenance, automation. No material M&A in FY 2025.
• Financing CF: Revolver repay down to $1.0 million; share repurchases resumed at $0.8 million. Dividends suspended by credit agreement.

3. Risk Factors (Item 1A)

Key industry and operational risks include:

• Commodity Cyclicality. Crop yields, weather and planting intent drive supply & pricing swings; oversupply depresses margins.
• Input Inflation. Raw fruits/veggies, steel, packaging, labor and energy costs remain elevated. Contract pricing lags cost spikes.
• Seasonality & Working Capital. Q2/Q3 pack creates cash needs; reliance on revolver financing.
• Customer & Channel Concentration. Top 10 customers drive over 50% of net sales; private label pricing pressures linger.
• Competition & Consolidation. Retailers’ own brands and large co-packers push pricing; imports intensify pricing pressure.
• Labor & Operational. Seasonal workforce, retention challenges and union risks could disrupt pack cycles.
• Regulatory & Environmental. Food safety, FSMA compliance, ESG/climate regulations, plant expansions.
• Pension & Benefits. Defined benefit plan funding volatility could draw cash.

4. Strategic & Financial Outlook

Seneca’s core strengths include scale in U.S. produce packaging, a diversified plant network, low-cost supply chain and a balanced mix of private-label and branded business. The company continues to invest in automation, supply chain integration and sustainability initiatives (digital traceability, HERO safety, SAVES continuous improvement).

Near-term headwinds: continued input inflation, customer price pushback, seasonal workforce tightness and margin pressure from broader economic uncertainty.

Opportunities: expanded snack and value-added lines, co-pack growth, export channel development, productivity gains and brand-premium initiatives.

5. Net Profit (Loss)

Net Earnings (Loss) for fiscal year ended March 31, 2025: $41.2 million.

6. Investment Score: 6.5/10

Rationale:

• Pros: Leading U.S. packager, strong brand licenses, diversified customers, cashflow generator, moderate leverage.
• Cons: Margin compression from elevated input costs, seasonal working capital demands, limited growth avenues in mature category, private label price sensitivity.

While Seneca is a high-integrity, defensive food business with stable cash flows and attractive brand partnerships, near-term margin headwinds and limited growth catalysts in a mature, cyclical industry constrain a higher score. The 6.5 reflects a moderate risk/reward: suitable for value-oriented, dividend-seeking or defensive core, less so for aggressive growth portfolios.

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Disclaimer: This analysis is based solely on information in Seneca Foods’ public 2025 Form 10-K and industry context as of May 2025. It is not a recommendation to buy or sell securities.