U.S. Premium Beef Swings to Loss on National Beef Investment Hit

TL;DR

**USPB is bleeding cash and profits, dragged down by its struggling National Beef investment – time to bail on this beef play.**

AI Summary

U. S. Premium Beef, LLC (USPB) reported a net loss of $13.983 million for the 39 weeks ended September 27, 2025, a significant decline from a net income of $8.135 million for the same period in 2024. This downturn is primarily driven by a substantial equity in net loss from its 15.0729% investment in National Beef Packing Company, LLC (NBP), which amounted to a loss of $14.453 million for the 39 weeks ended September 27, 2025, compared to an income of $7.270 million in the prior year. NBP itself experienced a net loss of $92.885 million for the 39 weeks ended September 27, 2025, a sharp reversal from a net income of $51.230 million in the corresponding 2024 period, despite NBP's net sales increasing to $10.168 billion from $9.173 billion. USPB's cash and cash equivalents decreased significantly to $11.144 million as of September 27, 2025, from $39.008 million at December 28, 2024, largely due to a $30.146 million purchase of additional membership interests in NBP and $38.075 million in new investments in certificates of deposit and treasury securities. Total assets for USPB declined to $226.238 million from $240.140 million over the same period. The company's strategic outlook remains tied to NBP's performance, with USPB's CEO acting as the Chief Operating Decision Maker for its single reportable segment, the NBP investment.

Why It Matters

This filing reveals a significant financial deterioration for U. S. Premium Beef, LLC, primarily due to its equity investment in National Beef Packing Company, LLC. For investors, the substantial net loss of $13.983 million and the sharp decline in cash to $11.144 million signal potential liquidity concerns and a negative outlook for future distributions. Employees of USPB might face increased scrutiny on operational costs given the overall loss. Customers of National Beef could see indirect impacts if NBP's financial struggles lead to operational changes or price adjustments. The broader beef market may view NBP's performance as indicative of sector-wide pressures, especially given NBP's increased sales but decreased profitability, suggesting margin compression in a competitive landscape.

Risk Assessment

Risk Level: high — The company reported a net loss of $13.983 million for the 39 weeks ended September 27, 2025, a stark contrast to the $8.135 million net income in the prior year. This significant loss, coupled with a substantial decrease in cash and cash equivalents from $39.008 million to $11.144 million, indicates a high financial risk, particularly given its reliance on the performance of National Beef Packing Company, LLC, which also reported a net loss of $92.885 million.

Analyst Insight

Investors should consider divesting from U. S. Premium Beef, LLC given the substantial net loss and significant cash burn, primarily driven by the underperformance of its key investment in National Beef Packing Company, LLC. Monitor NBP's future filings closely for any signs of recovery in profitability, as USPB's financial health is directly tied to it.

Financial Highlights

debt To Equity

0.05

revenue

$0

operating Margin

N/A

total Assets

$226.238M

total Debt

$10.307M

net Income

($13.983M)

eps

($1.90) Class A

gross Margin

N/A

cash Position

$11.144M

revenue Growth

N/A

Key Numbers

• $13.983M — Net Loss (USPB) (For 39 weeks ended Sep 27, 2025, a significant decline from $8.135M net income in prior year.)
• $14.453M — Equity in NBP Net Loss (For 39 weeks ended Sep 27, 2025, a reversal from $7.270M income in prior year.)
• $11.144M — Cash and Cash Equivalents (As of Sep 27, 2025, down from $39.008M at Dec 28, 2024.)
• $30.146M — Purchase of NBP Interests (Cash outflow for additional membership interests in NBP during the period.)
• $92.885M — NBP Net Loss (For 39 weeks ended Sep 27, 2025, a significant loss for the equity investee.)
• $10.168B — NBP Net Sales (For 39 weeks ended Sep 27, 2025, an increase from $9.173B in prior year, despite net loss.)
• 15.0729% — Investment in NBP (USPB's ownership stake in National Beef Packing Company, LLC.)
• $226.238M — Total Assets (USPB) (As of Sep 27, 2025, decreased from $240.140M at Dec 28, 2024.)
• $1.90 — Class A Loss Per Unit (For 39 weeks ended Sep 27, 2025, compared to $1.11 income per unit in prior year.)
• $16.66 — Class B Loss Per Unit (For 39 weeks ended Sep 27, 2025, compared to $9.69 income per unit in prior year.)

Key Players & Entities

• U. S. Premium Beef, LLC (company) — registrant
• National Beef Packing Company, LLC (company) — equity method investee
• SEC (regulator) — Securities and Exchange Commission
• CoBank, ACB (company) — bank where cash is invested
• CEO (person) — Chief Operating Decision Maker for USPB
• Ohio Beef (company) — company acquired by NBP in 2019
• $13.983 million (dollar_amount) — USPB's net loss for 39 weeks ended Sep 27, 2025
• $8.135 million (dollar_amount) — USPB's net income for 39 weeks ended Sep 28, 2024
• $14.453 million (dollar_amount) — USPB's equity in net loss of NBP for 39 weeks ended Sep 27, 2025
• $92.885 million (dollar_amount) — NBP's net loss for 39 weeks ended Sep 27, 2025

FAQ

Risk Factors

• Dependence on National Beef Packing Company (NBP) Performance [high — financial]: USPB's financial results are heavily influenced by its 15.0729% investment in NBP. For the 39 weeks ended September 27, 2025, USPB reported an equity in net loss of $14.453 million from NBP, a significant reversal from $7.270 million in income in the prior year. NBP itself incurred a net loss of $92.885 million on net sales of $10.168 billion, despite increased sales.
• Deterioration of Investment Value [high — financial]: The equity method of accounting for the NBP investment means that operating losses, diminished cash flows, and economic events at NBP can directly impact USPB's reported net income. A significant decrease in NBP's value, if deemed other than temporary, could lead to an impairment charge for USPB.
• Declining Cash Position [medium — financial]: USPB's cash and cash equivalents decreased from $39.008 million at December 28, 2024, to $11.144 million as of September 27, 2025. This reduction was driven by a $30.146 million purchase of additional NBP interests and $38.075 million in new investments in CDs and treasury securities.
• Industry Volatility in Beef Packing [medium — market]: The beef packing industry is subject to various economic and industry events, including potential impacts from pandemics. NBP's substantial net loss of $92.885 million on $10.168 billion in net sales for the 39 weeks ended September 27, 2025, highlights the inherent volatility and risks within this sector.

Industry Context

The beef packing industry is characterized by significant capital requirements, complex supply chains, and susceptibility to commodity price fluctuations and demand shifts. Companies like National Beef Packing Company (NBP) operate in a highly competitive environment where operational efficiency and scale are crucial for profitability. Recent performance, as seen with NBP's substantial loss despite increased sales, suggests potential margin pressures or unforeseen operational challenges within the sector.

Regulatory Implications

While this filing does not detail specific regulatory issues, the broader agricultural and food processing sectors are subject to various regulations concerning food safety, environmental impact, and labor practices. Changes in these regulations or increased enforcement could impact operational costs and compliance burdens for entities like NBP, indirectly affecting USPB's investment.

What Investors Should Do

1. Monitor NBP's operational and financial recovery closely.
2. Assess the sustainability of USPB's cash position.
3. Evaluate the strategic rationale for increased investment in NBP.

Glossary

Equity Method of Accounting

An accounting technique used when an investor has significant influence over an investee but does not have control. The investment is initially recorded at cost and then adjusted to reflect the investor's share of the investee's net income or loss. (USPB uses this method for its investment in NBP, meaning NBP's financial performance directly impacts USPB's reported earnings.)

Cash and cash equivalents

Highly liquid investments with an original maturity of three months or less. For USPB, these are held in a CoBank overnight investment account. (A significant decrease in this metric from $39.008 million to $11.144 million indicates reduced liquidity for USPB.)

Equity in net (loss) income of National Beef Packing Company, LLC

Represents USPB's proportional share of NBP's reported net profit or loss. (This line item is the primary driver of USPB's net loss for the period, showing a $14.453 million loss compared to a $7.270 million gain in the prior year.)

Class A units / Class B units

Different classes of membership units in USPB, each with distinct rights and potentially different per-unit earnings or losses. (The significant losses are reflected in both Class A and Class B per-unit figures, with Class A reporting a loss of $1.90 per unit and Class B a loss of $16.66 per unit for the 39-week period.)

Year-Over-Year Comparison

For the 39 weeks ended September 27, 2025, USPB reported a net loss of $13.983 million, a stark contrast to a net income of $8.135 million in the comparable 2024 period. This reversal is primarily due to a $14.453 million equity in net loss from NBP, compared to a $7.270 million income in the prior year. Total assets decreased to $226.238 million from $240.140 million, and cash and cash equivalents plummeted from $39.008 million to $11.144 million, reflecting significant cash outflows for investments in NBP and securities.

Key Financial Figures

• $0.45 — 691 ) Member distributions Class A ($0.45 per Class A unit) ( 330 ) Class B ($
• $3.93 — 5 per Class A unit) ( 330 ) Class B ($3.93 per Class B unit) ( 2,969 ) Balance
• $0.29 — 5,278 Member distributions Class A ($0.29 per Class A unit) ( 670 ) Class B ($
• $2.55 — 9 per Class A unit) ( 670 ) Class B ($2.55 per Class B unit) ( 6,034 ) Balance

Filing Documents

• uspb_i10q-092725.htm (10-Q) — 586KB
• uspb_ex3101.htm (EX-31.1) — 7KB
• uspb_ex3102.htm (EX-31.2) — 7KB
• uspb_ex3201.htm (EX-32.1) — 3KB
• uspb_ex3202.htm (EX-32.2) — 3KB
• 0001683168-25-008052.txt ( ) — 3981KB
• uspb-20250927.xsd (EX-101.SCH) — 30KB
• uspb-20250927_cal.xml (EX-101.CAL) — 44KB
• uspb-20250927_def.xml (EX-101.DEF) — 112KB
• uspb-20250927_lab.xml (EX-101.LAB) — 231KB
• uspb-20250927_pre.xml (EX-101.PRE) — 196KB
• uspb_i10q-092725_htm.xml (XML) — 792KB

Financial Statements (unaudited)

Financial Statements (unaudited). 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 16 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk. 19 Item 4.

Controls and Procedures

Controls and Procedures. 20 PART II. OTHER INFORMATION Item 1. Legal Proceedings. 21 Item 1A. Risk Factors. 22 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 22 Item 3. Defaults Upon Senior Securities. 22 Item 4. Mine Safety Disclosures. 22 Item 5. Other Information. 23 Item 6. Exhibits. 23 Signatures. 24 Unless the context indicates or otherwise requires, the terms "USPB", "the Company", "we", "our", and "us" refer to U.S. Premium Beef, LLC. As used in this report, the terms "NBP" and "National Beef" refer to National Beef Packing Company, LLC, a Delaware limited liability company. 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited). U.S. PREMIUM BEEF, LLC Balance Sheets (thousands of dollars, except unit information) September 27, 2025 December 28, 2024 (unaudited) Assets Current assets: Cash and cash equivalents $ 11,144 $ 39,008 Investments in certificates of deposit and treasury securities 27,879 30,224 Accrued interest receivable 562 185 Due from affiliates 391 182 Other current assets 697 901 Total current assets 40,673 70,500 Property, plant, and equipment, at cost 274 274 Less accumulated depreciation 254 244 Net property, plant, and equipment 20 30 Right of use assets, net 200 228 Investment in National Beef Packing Company, LLC 185,074 169,381 Other assets 271 1 Total assets $ 226,238 $ 240,140 Liabilities and Members' Capital Current liabilities: Accounts payable - trade $ 44 $ 28 Due to affiliates 137 74 Accrued compensation and benefits 1,990 2,413 Lease obligations 72 61 Other accrued expenses and liabilities 86 293 Distributions payable 316 153 Total current liabilities 2,645 3,022 Long-term liabilities: Lease obligations 128 167 Other liabilities 7,534 7,307 Total long-term liabilities 7,662 7,474 Total liabilities 10,307 10,496 Commitments and contingencies – – Members' capital Members' contributed capital, 735,385 Class A units and 755,385 Class B units authorized, issued and outstanding 215,931 229,644 Total members' capital 215,931 229,644 Total liabilities and members' capital $ 226,238 $ 240,140 See accompanying notes to financial statements. 3 U.S. PREMIUM BEEF, LLC (thousands of dollars, except unit and per unit data) 13 weeks ended 39 weeks ended September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024 (unaudited) (unaudited) (unaudited) (unaudited) Net sales $ – $ – $ – $ – Costs and expenses: Cost of sales – – – – Sellin

financial statements

financial statements. 4 U.S. PREMIUM BEEF, LLC (thousands of dollars) 39 weeks ended September 27, 2025 September 28, 2024 (unaudited) (unaudited) Cash flows from operating activities: Net (loss) income $ ( 13,983 ) $ 8,135 Adjustments to reconcile net (loss) income to net cash (used in)/provided by operating activities: Depreciation and amortization 10 10 Equity in net loss (income) of National Beef Packing Company, LLC 14,453 ( 7,270 ) Changes in assets and liabilities: Accounts receivable ( 377 ) ( 229 ) Due from affiliates ( 209 ) 41 Other assets 204 695 Accounts payable 16 ( 21 ) Due to affiliates 63 ( 9 ) Accrued compensation and benefits ( 196 ) ( 1,077 ) Other accrued expenses and liabilities ( 207 ) ( 64 ) Net cash (used in)/provided by operating activities ( 226 ) 211 Cash flows from investing activities: Purchase of additional membership interests in National Beef Packing Company, LLC ( 30,146 ) – Investment in certificates of deposit and treasury securities ( 38,075 ) ( 50,000 ) Redemption of certificates of deposit and treasury securities 40,420 40,000 Net cash used in investing activities ( 27,801 ) ( 10,000 ) Cash flows from financing activities: Member distributions 163 ( 9,850 ) Net cash provided by/(used in) financing activities 163 ( 9,850 ) Net decrease in cash ( 27,864 ) ( 19,639 ) Cash and cash equivalents at beginning of period 39,008 58,481 Cash and cash equivalents at end of period $ 11,144 $ 38,842 See accompanying notes to

financial statements

financial statements. 5 U.S. PREMIUM BEEF, LLC

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (1) Interim Financial Statements Basis of Presentation The accompanying unaudited Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information; therefore, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included using management's best estimates and judgments where appropriate. These estimates and judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Actual results could differ materially from these estimates and judgments. For further information, refer to the audited Financial Statements and Notes to Financial Statements, which are included in the Company's Annual Report on Form 10-K for the year ended December 28, 2024, as amended by Amendment No. 1 on Form 10-K/A filed with the Securities and Exchange Commission ("SEC") on March 19, 2025 (the "2024 Form 10-K"). The results of operations for the interim periods presented are not necessarily indicative of the results for a full fiscal year. (2) Accounting Policies Accounting for Investment in NBP . USPB's 15.0729 % investment in NBP is accounted for using the equity method of accounting, as the Company has the ability to exercise significant influence over NBP, but does not have financial or operational control. Operating losses, diminished cash flows, economic and industry events, pandemics, such as coronavirus disease (COVID-19), and a variety of other factors may result in a decrease in the value of the investment in NBP, which may be other than temporary. Such potential decreases

View Full Filing

View this 10-Q filing on SEC EDGAR