Financial Performance - Corteva reported a strong year in 2025, with fourth-quarter results aligning with expectations, except for stronger cash flow generation than anticipated. The company achieved low single-digit top-line growth and low double-digit operating EBITDA growth, resulting in over 200 basis points of margin expansion, surpassing 22% for the first time as a public company [7][19]. - For the fourth quarter, organic sales decreased by 4% year-over-year, with crop protection experiencing volume and price declines of 2% and 1%, respectively. Seed pricing increased by 3%, but volume declined by 8% due to timing shifts [15][16]. Business Line Performance - The seed business showed organic growth across all regions, with significant net cost improvements of approximately $340 million and $90 million in royalty improvements, particularly in North America corn and soybean licensing in Brazil. The company anticipates crossing double-digit trait penetration for Conkesta in Brazil [8][12]. - The crop protection business also performed well, achieving top and bottom line growth despite challenging market conditions. The business generated over $300 million in productivity and cost benefits, with a strong pipeline of differentiated technologies valued at $9 billion [9][10]. Market Insights - The agricultural fundamentals remain mixed, with record demand for food and fuel, while major crop inventories are within normal ranges despite large crops in Brazil and North America. Farmers are prioritizing top-tier seed technologies while managing tighter margins [10][11]. - The company expects modest growth in the crop protection market for 2026, with competitive pricing dynamics persisting in major markets, including Latin America and Asia-Pacific [10][11]. Strategic Direction - Corteva is on track for a separation in the second half of 2026, with ongoing preparations for executive leadership teams and capital structure submissions. The company aims to sharpen focus, accelerate innovation, and unlock value through this transition [4][5][14]. - A recent agreement with Bayer regarding seed freedom to operate is expected to enhance licensing opportunities and provide business certainty, allowing for accelerated introduction of proprietary technologies [11][12]. Management Commentary - Management expressed confidence in the 2026 outlook, reiterating a preliminary operating EBITDA midpoint of $4.1 billion, reflecting a 7% growth compared to the prior year. The guidance includes momentum in seed licensing, growth in crop protection volumes, and productivity benefits [10][20]. - The company highlighted the importance of gene editing technology and its potential impact on profitability for farmers, with expectations for regulatory approvals in Europe and China [48][49]. Other Important Information - Free cash flow improved significantly to $2.9 billion, driven by increased EBITDA and working capital discipline. The company plans to return approximately $500 million to shareholders through share repurchases in the first half of 2026 [19][21]. - The company anticipates a currency tailwind in 2026, primarily from the Brazilian real, euro, and Canadian dollar, which is expected to positively impact net sales and operating EBITDA [23]. Q&A Session Summary Question: Can you break down the Bayer litigation and its impact on licensing? - Management expressed satisfaction with the agreement, highlighting increased access to the licensing market and freedom to operate, which accelerates corn licensing to 2027 and opens opportunities in cotton [30][31]. Question: What is the impact of the Bayer agreement on existing licensing expenses? - The company confirmed a net royalty benefit of $120 million in 2026, with some Bayer royalties no longer applicable, leading to a net-neutral position two years ahead of expectations [36][40]. Question: How do you view the U.S. order books for the upcoming year? - Management reported strong order books, with prepay collections on par with the prior year, indicating a positive start to the year despite potential shifts in corn and soybean acreage [51][52]. Question: What are the expectations for free cash flow in 2026? - The company anticipates a slight decrease in free cash flow as working capital normalizes, but overall performance is expected to align with long-term targets [55][57]. Question: Can you provide updates on Conkesta soybeans in Brazil? - Management expects to double market share in 2026, with significant contributions to earnings from the Conkesta transition [63][76].

Financial Performance - Corteva reported a strong year in 2025, with fourth-quarter results meeting expectations, except for stronger cash flow generation than anticipated [6] - The company achieved low single-digit top-line growth and low double-digit operating EBITDA growth, resulting in over 200 basis points of margin expansion, reaching over 22% for the first time as a public company [6][18] - Organic sales for the fourth quarter were down 4% year-over-year, with crop protection experiencing volume and price declines of 2% and 1% respectively [14][15] - For the full year, organic sales increased by 4%, with crop protection volume up 5% and seed price, mix, and volume gains of 3% and 2% respectively [16][18] Business Line Performance - The seed business showed organic growth in every region, with significant net cost improvements and royalty improvements, particularly in North America corn and Brazil soybean licensing [7][17] - The crop protection business also delivered growth and margin expansion, generating over $300 million in productivity and cost benefits [8][18] - The company expects to see modest growth in crop protection in 2026, despite competitive pricing dynamics in major markets [9][19] Market Insights - Overall agricultural fundamentals remain mixed, with record demand for food and fuel, and major crop inventories within normal ranges [8][9] - Farmers are prioritizing top-tier seed technologies while managing tighter margins, leading to a potential shift back to soybeans in 2026 [9][19] Strategic Direction - Corteva is on track for a separation in the second half of 2026, with ongoing preparations for executive leadership teams and capital structure submissions [4][5] - The company reached a resolution with Bayer regarding seed freedom to operate, which is expected to accelerate licensing opportunities and provide business certainty [10][11] - The resolution is anticipated to generate about $1 billion in aggregate earnings upside over the next decade through outlicensing and branded sales [12] Management Commentary - Management expressed confidence in the company's performance and outlook for 2026, reiterating a preliminary operating EBITDA midpoint of $4.1 billion, representing a 7% growth compared to the prior year [9][19] - The company is focused on controlling operational efficiencies and maintaining strong cash flow, with a commitment to returning cash to shareholders [23] Other Important Information - Free cash flow improved significantly to $2.9 billion, driven by increased EBITDA and working capital discipline [18][23] - The company plans to target approximately $500 million in share repurchases in the first half of 2026 [19] Q&A Session Summary Question: Can you break down the Bayer litigation impact? - Management highlighted that the agreement provides freedom to operate and increased access to the licensing market, accelerating corn licensing to as early as 2027 and entering the cotton licensing market [26][28] Question: Is there existing licensing expense that will no longer be incurred? - Management confirmed that a portion of the $120 million net royalty benefit in 2026 comes from Bayer royalties that will not be paid, leading to a net-neutral position two years ahead of expectations [33][34] Question: What is the status of Conkesta soybeans in Brazil? - Management indicated that they expect to double market share in 2026, transitioning to a focus on licensing through multipliers [61][64] Question: How do you view the productivity benefits for 2026? - Management stated that the $200 million productivity benefits are split equally between seed and crop protection, with ongoing opportunities for improvements [89]

February 4, 2026 CTVA 4Q25 EARNINGS Safe Harbor Regarding Forward-Looking Statements Forward-Looking Statements This presentation contains certain estimates and forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and may be identif ...

Core Insights - Corteva, Inc. reported revenue of $3.91 billion for the quarter ended December 2025, reflecting a 1.7% decline year-over-year and a surprise of -7.49% compared to the Zacks Consensus Estimate of $4.23 billion [1] - The company's EPS was $0.22, down from $0.32 in the same quarter last year, with a positive surprise of +3.14% over the consensus estimate of $0.21 [1] Revenue Performance - Crop Protection revenue was $2.17 billion, below the average estimate of $2.41 billion, marking a year-over-year decrease of -1.5% [4] - Seed revenue totaled $1.74 billion, also below the average estimate of $1.82 billion, with a year-over-year decline of -2% [4] - Revenue from Seed-Other oilseeds was $94 million, exceeding the estimate of $89.86 million, representing an increase of +8.1% year-over-year [4] - Crop Protection revenue from Biologicals was $191 million, slightly above the estimate of $186.79 million [4] - Herbicides revenue was $1.06 billion, below the estimate of $1.14 billion, but showed a year-over-year increase of +3% [4] - Insecticides revenue was $488 million, below the estimate of $557.11 million, reflecting a year-over-year change of -0.4% [4] - Fungicides revenue was $272 million, significantly below the estimate of $357.43 million, with a year-over-year decline of -15% [4] - Other Crop Protection revenue was $160 million, below the estimate of $213.87 million, representing a year-over-year decrease of -18.4% [4] - Seed revenue from Soybean was $164 million, exceeding the estimate of $155.13 million, with a year-over-year increase of +6.5% [4] - Seed revenue from Corn was $1.39 billion, slightly below the estimate of $1.41 billion, reflecting a -1.8% change year-over-year [4] - Seed revenue from Other was $93 million, significantly below the estimate of $138.89 million, with a year-over-year decline of -22.5% [4] - Operating EBITDA for Seed was $124 million, above the average estimate of $103.5 million [4] Stock Performance - Corteva, Inc. shares have returned +7.9% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - Corteva, Inc. reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, but down from $0.32 per share a year ago, representing an earnings surprise of +3.14% [1] - The company posted revenues of $3.91 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 7.49%, compared to $3.98 billion in the same quarter last year [2] - Corteva, Inc. shares have increased approximately 9.2% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $4.65 billion, and for the current fiscal year, it is $3.61 on revenues of $18.47 billion [7] - The Agriculture - Operations industry, to which Corteva belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Performance - Net sales for Q4 2025 were $3,910 million, a decrease of 1.7% from $3,978 million in Q4 2024; total net sales for 2025 reached $17,401 million, up 2.9% from $16,908 million in 2024[2] - Net income attributable to Corteva for 2025 was $1,094 million, a 20.6% increase from $907 million in 2024; however, Q4 2025 showed a net loss of $552 million compared to a loss of $41 million in Q4 2024[2] - Basic earnings per share from continuing operations for 2025 was $1.75, up from $1.23 in 2024; Q4 2025 reported a loss per share of $0.80 compared to a loss of $0.08 in Q4 2024[2] - The company reported a net loss from discontinued operations of $99 million for 2025, compared to a gain of $56 million in 2024, impacting overall profitability[2] - The total operating earnings for 2025 were reported at $2,276 million, with an EPS of $3.34, compared to $1,788 million and an EPS of $2.57 in 2024[38] - Operating Earnings for Q4 2025 were $151 million, compared to $221 million in Q4 2024, with full year earnings rising to $2,276 million from $1,788 million[41] - Operating Earnings Per Share (EPS) for Q4 2025 was $0.22, down from $0.32 in Q4 2024, while the full year EPS increased to $3.34 from $2.57[41] Expenses and Investments - Research and development expenses increased to $413 million in Q4 2025 from $365 million in Q4 2024, totaling $1,474 million for the year, compared to $1,402 million in 2024[2] - Capital expenditures for 2025 were $591 million, slightly down from $597 million in 2024, reflecting continued investment in growth initiatives[6] - The company incurred $(434) million in amortization of intangibles for 2025, impacting the EPS by $(0.64)[38] Assets and Liabilities - Total assets increased to $42,845 million in 2025 from $40,825 million in 2024, driven by higher cash and cash equivalents, which rose to $4,521 million from $3,106 million[4] - Total current liabilities rose to $12,125 million in 2025, up from $10,386 million in 2024, primarily due to increases in accounts payable and deferred revenue[4] - Corteva's total stockholders' equity increased to $24,144 million in 2025 from $23,789 million in 2024, indicating a strengthening balance sheet[4] Cash Flow - Cash provided by operating activities for 2025 was $3,406 million, significantly higher than $2,145 million in 2024, indicating improved operational efficiency[6] - Free Cash Flow for the twelve months ended December 31, 2025, was $2,866 million, significantly up from $1,699 million in 2024[52] Segment Performance - Seed segment net sales for the three months ended December 31, 2025, were $1,737 million, down from $1,772 million in 2024, with corn sales at $1,386 million[8] - Crop protection segment net sales for the three months ended December 31, 2025, were $2,173 million, slightly down from $2,206 million in 2024, with herbicides contributing $1,062 million[8] - The Seed product line reported a total net sales increase of $353 million, or 4%, with organic sales up by $453 million, or 5%[25] - In the Crop Protection product line, herbicides saw a net sales increase of $31 million, or 3%, while insecticides and fungicides experienced declines of $2 million and $48 million, respectively[19] - North America seed sales decreased by 15% to $545 million for the three months ended December 31, 2025, compared to $639 million in 2024[8] Significant Items and Charges - The company reported a significant item charge of $602 million for the three months ended December 31, 2025, impacting overall financial performance[10] - Significant items before income taxes totaled $(602) million for the three months ended December 31, 2025, compared to $(18) million in the same period of 2024[28] - The fourth quarter of 2025 reported a significant charge of $(610) million related to the resolution of litigation with Bayer, contributing to an EPS impact of $(0.70) per share[29] - In 2025, the total pre-tax significant items amounted to $(658) million, with an after-tax impact of $(582) million, resulting in an EPS impact of $(0.85) per share[29] Tax and Interest - The effective income tax rate (GAAP) for the full year 2025 was 28.7%, compared to 32.3% in 2024[45] - The base income tax rate from continuing operations for Q4 2025 was 22.0%, slightly down from 23.1% in Q4 2024, with a full year rate of 22.2% compared to 22.8%[41] - Interest income for Q4 2025 was $44 million, up from $39 million in Q4 2024, while interest expense decreased to $46 million from $60 million[41] Currency Impact - The company experienced a currency impact of $(88) million on net sales for the three months ended December 31, 2025[10] - Pre-tax exchange losses for the twelve months ended December 31, 2025, totaled $181 million, compared to $284 million in 2024[49] - The company reported a net after-tax exchange loss of $62 million for Q4 2025, compared to a loss of $43 million in Q4 2024[49]

Financial Performance - For Q4 2025, Corteva reported net sales of $3.91 billion, a decrease of 2% compared to Q4 2024, with organic sales down 4% [2][8] - Full-year 2025 net sales reached $17.40 billion, an increase of 3% from FY 2024, with organic sales up 4% [2][12] - GAAP income from continuing operations for Q4 2025 was $1.20 billion, with an EPS of $1.75, reflecting a 43% increase compared to FY 2024 [2][12] - Operating EBITDA for Q4 2025 was $446 million, down 15% year-over-year, while full-year operating EBITDA was $3.85 billion, up 14% from the previous year [2][19] Segment Performance - Seed segment net sales for Q4 2025 were $1.74 billion, down from $1.77 billion in Q4 2024, primarily due to an 8% decrease in volume [14][15] - Crop Protection segment net sales for Q4 2025 were approximately $2.17 billion, a decrease from $2.21 billion in Q4 2024, driven by a 2% decrease in volume and a 1% price decline [22][23] - For the full year 2025, Crop Protection net sales were approximately $7.50 billion, an increase of 2% from FY 2024, with a 5% increase in volume [22][28] Cash Flow and Shareholder Returns - Cash provided by operating activities for continuing operations was $3.5 billion, a 51% increase compared to the prior year, with free cash flow improving by 69% to $2.9 billion [5][12] - The company returned over $1.5 billion to shareholders, reflecting strong cash generation [5][12] Future Guidance - Corteva expects operating EBITDA for FY 2026 to be between $4.0 billion and $4.2 billion, indicating a growth of 7% at the midpoint [30] - Operating EPS for FY 2026 is projected to be between $3.45 and $3.70 per share, also reflecting a growth of 7% at the midpoint [30] Strategic Updates - The company is on track to complete its planned separation in the second half of 2026, with key milestones expected in the first half of 2026 [11][6] - A resolution with Bayer is anticipated to enhance Corteva's freedom to operate and out-licensing flexibility, supporting its strategic objective of achieving a $1 billion net royalty income position by 2035 [11][6]

Key Takeaways CTVA is seeing strong performance in Crop Protection, driven by new products and volume growth.Corteva's Seed segment benefits from advanced genetics, higher out-licensing and execution across key markets.CTVA faces near-term risks from weak crop prices, pressured farm incomes and macro headwinds.Corteva, Inc. (CTVA) is slated to report fourth-quarter 2025 results on Feb. 3, after market close. The company is likely to report a bottom-line decline when it posts the quarterly results.The Zacks ...

Core Insights - Corteva, Inc. (CTVA) is expected to report quarterly earnings of $0.21 per share, reflecting a decline of 34.4% year-over-year, while revenues are forecasted to reach $4.23 billion, indicating a 6.3% increase compared to the previous year [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 3.3%, indicating a collective reassessment by analysts of their initial forecasts [2] - Revisions to earnings projections are crucial for predicting investor behavior, as empirical studies show a strong correlation between earnings estimate trends and short-term stock performance [3] Revenue Projections - Analysts estimate 'Revenue- Crop Protection' to be $2.42 billion, a year-over-year increase of 9.8% [5] - 'Revenue- Seed' is projected to reach $1.82 billion, reflecting a 2.6% increase year-over-year [5] - 'Revenue- Seed- Other oilseeds' is expected to be $89.86 million, indicating a 3.3% increase from the previous year [5] Segment Analysis - 'Revenue- Crop Protection- Herbicides' is forecasted at $1.14 billion, a 10.9% increase year-over-year [6] - 'Revenue- Crop Protection- Insecticides' is expected to reach $557.11 million, reflecting a 13.7% increase [6] - 'Revenue- Crop Protection- Fungicides' is projected at $357.43 million, indicating an 11.7% year-over-year change [6] Additional Revenue Insights - 'Revenue- Crop Protection- Other' is estimated at $213.87 million, a 9.1% increase year-over-year [7] - 'Revenue- Seed- Soybean' is expected to be $155.13 million, showing a slight increase of 0.7% [7] - 'Revenue- Seed- Corn' is projected to reach $1.41 billion, indicating a minor decline of 0.1% [7] Operating Metrics - 'Operating EBITDA- Seed' is expected to be $106.13 million, compared to $93.00 million from the previous year [8] - 'Operating EBITDA- Crop Protection' is projected at $430.49 million, down from $461.00 million year-over-year [8] Market Performance - Corteva, Inc. shares have returned +9% over the past month, outperforming the Zacks S&P 500 composite, which saw a +0.8% change [9] - The company holds a Zacks Rank 1 (Strong Buy), indicating expectations to outperform the overall market in the near future [9]

Core Insights - Hardman Johnston Global Equity Strategy reported a return of 2.91% for Q4 2025, underperforming the MSCI AC World Net Index which gained 3.29% [1] - The Financials and Consumer Staples sectors contributed positively to performance, while the Industrials and Consumer Discretionary sectors detracted from it [1] Company Summary: Corteva, Inc. (NYSE:CTVA) - Corteva, Inc. operates in the Seed and Crop Protection segments, with a one-month return of 8.91% and a 12.31% increase over the last 52 weeks [2] - As of January 27, 2026, Corteva's stock closed at $73.00 per share, with a market capitalization of $49.33 billion [2] Investment Decision on Corteva, Inc. - The company liquidated its position in Corteva, Inc. due to management's commentary on a potential separation of its Seeds and Crop Protection businesses, which raised concerns about value creation [3] - The Seeds business, accounting for approximately two-thirds of profits, may command a premium multiple, but this could be offset by a lower valuation for the Chemicals business, limiting net value unlock [3] - Strategic credibility concerns arose from the separation narrative, which contradicted previous management messaging about the complementary nature of Seeds and Chemicals [3] - Deteriorating agricultural fundamentals, such as increased U.S. corn acreage and challenges in soybean markets, could pressure farmer spending on inputs [3] - The combination of elevated valuation, strategic uncertainty, and weakening agricultural fundamentals led to the decision to exit the position in Corteva, Inc. [3]