Business Operations - Corteva operates in approximately 110 countries, providing a broad portfolio of agriculture solutions to enhance farmer productivity[27]. - The company plans to separate its Seed and Crop Protection segments into two standalone, publicly traded companies by October 1, 2025[29]. - Corteva's supply chain strategy emphasizes managing global supplies of active ingredients with a flexible global footprint to support future growth[46]. - The company leverages a multi-channel distribution strategy, including direct sales to farmers, regional seed brands, and retail channels[38]. - Corteva operates 95 production sites globally, with 61 dedicated to Seed and 34 to Crop Protection[178]. - The company has 38 production sites in North America, 12 in EMEA, 8 in Latin America, and 3 in Asia Pacific[178]. Financial Performance - The company reported net sales of $17,401 million for the year ended December 31, 2025, a 3% increase compared to 2024, driven by a 1% increase in price and a 3% increase in volume[211]. - Cost of goods sold (COGS) decreased to $9,172 million from $9,529 million in 2024, attributed to ongoing cost and productivity actions, raw material deflation, and lower commodity prices[211]. - Income from continuing operations after income taxes was $1,204 million, up from $863 million in 2024[211]. - Operating EBITDA increased to $3,848 million from $3,376 million in 2024, primarily due to volume growth and favorable product mix[211]. - The company returned approximately $1.5 billion to shareholders in 2025 through share repurchase programs and dividends[211]. - The quarterly common stock dividend was increased by approximately 6% from $0.17 to $0.18 per share[211]. - The company experienced a 2% decrease in net sales from 2023 to 2024, with net sales of $16,908 million in 2024 compared to $17,226 million in 2023, primarily due to a 1% decrease in price and a 3% unfavorable currency impact[222][225]. Research and Development - Corteva's investments in R&D focus on customer-driven innovation to enhance seed quality and respond to changing customer needs[40]. - Research and development (R&D) expenses increased to $1,474 million (8% of net sales) in 2025 from $1,402 million (8% of net sales) in 2024, reflecting higher employee compensation and contractor costs[229][230]. - Corteva owns about 5,900 U.S. patents and approximately 10,200 active patents outside of the U.S. as of December 31, 2025[58]. - The company has approximately 3,400 patent applications pending as of December 31, 2025[59]. - Corteva's intellectual property estate, including patents and trade secrets, is considered a valuable asset that provides a competitive advantage[56]. Market Challenges - The company faces intense competition from key players like BASF, Bayer, and Syngenta in the global agriculture market[62]. - Input costs, including raw materials and production costs, are variable and can significantly impact Corteva's financial results[104]. - Changes in agricultural policies and government subsidies may inhibit market growth for Corteva's products, affecting growers' purchasing power[87]. - Public acceptance of Corteva's biotechnology products can affect sales and operations, with growing societal demands for product safety and environmental protection potentially leading to regulatory challenges[84]. - Regulatory scrutiny may increase as Corteva's business grows, potentially resulting in fines, penalties, or restrictions that could significantly impact operations[86]. Risk Management - The company actively manages risks associated with supply chain disruptions, cybersecurity threats, and industrial espionage, which could adversely affect its operations[109]. - Corteva anticipates that future pandemics or epidemics could disrupt its global supply chain and operations, impacting its financial condition and results[136]. - The company relies on third parties for raw materials and commercialization, and disruptions in these relationships could delay product development and commercialization[123]. - Corteva's ability to raise capital through the capital markets or short-term debt borrowings could be impaired, negatively affecting its liquidity[128]. - The prevalence of counterfeit products poses significant risks to Corteva's reputation and consumer trust, potentially leading to lost sales[145]. Corporate Governance - Corteva's management team averages about 20 years of experience in agriculture, supporting the execution of its strategy and product pipelines[55]. - The company has implemented safety programs to promote a culture of safety, with no work stoppages due to strikes or lockouts reported in 2025[51][52]. - Corteva maintains nine global employee business resource groups to foster an inclusive work environment[53]. - The Audit Committee conducts a minimum of two cybersecurity program updates per year, reviewing capital spend and staffing[175]. - Corteva's Chief Information Officer and Chief Information Security Officer regularly report on cybersecurity risks to the Board[177]. Strategic Initiatives - The Crop Protection Operations Strategy Restructuring Program is expected to achieve $180 million in savings on a run rate basis by 2027[215]. - The company recorded net pre-tax restructuring and asset-related charges of $611 million under the Crop Protection Operations Strategy Restructuring Program[213]. - Cash payments related to restructuring charges are anticipated to be between $330 million and $360 million, with $177 million paid through December 31, 2025[214]. - The proposed separation of Corteva's Seed and Crop Protection businesses is intended to be a tax-free spin-off, but it is subject to customary conditions and risks[161]. - Corteva is evaluating acquisition candidates and strategic investments, with potential risks associated with integration and achieving expected financial results[127].

Company Developments - Corteva's board approved a plan to split the company into two independent publicly traded entities, expected to be completed in the second half of 2026. "New Corteva" will focus on crop protection (including biopesticides), while "SpinCo" will concentrate on seeds and emerging technologies such as gene editing and biofuels [2] Product Development Progress - The company plans to launch the biostimulant seed treatment Lumidapt Valta LS in the U.S. market for the 2026 planting season, which has completed the regulatory approval phase and aims to enhance crop yields [3] Performance Strategy - Corteva provided preliminary performance outlook for 2026, expecting a midpoint of $4.18 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA), reflecting the company's confidence in its growth potential [4] Strategic Initiatives - Corteva has established a multi-year collaboration with Profluent Bio to leverage AI technologies, such as the OpenCRISPR-1 genome editing tool, to accelerate the development of resilient and high-yield crop varieties, which may drive long-term innovation [5]

Group 1 - The core focus of the article is on CTVA's strategic shift in 2026, particularly the planned divestiture of its seed business to concentrate on crop protection, which aims to optimize resource allocation while monitoring the impact on financials and regulatory approvals [1] Group 2 - In the Q3 2025 earnings report, the company provided preliminary guidance for 2026, projecting an EBITDA midpoint of $4.18 billion, indicating confidence in the growth of both seed and crop protection businesses [2] Group 3 - There is ongoing speculation in the market regarding the potential separation of seed and crop protection businesses into independent entities to address industry liability risks and unlock value, which may lead to increased stock price volatility despite the company's clear intention to divest the seed business [3] - Investors are advised to pay attention to the company's regular financial reports, such as the full-year 2025 earnings announcement, and any potential capital operation dynamics [3]

Core Viewpoint - Corteva Inc. is recognized for its innovations in seed and crop protection, aimed at improving agricultural productivity and sustainability, with a current stock price of $72.60 and a price target set at $80 by UBS analyst Joshua Spector, indicating a potential upside of 10.19% [1] Group 1: Stock Performance - Corteva's stock is currently priced at $72.60, reflecting a slight increase of 0.18% or $0.13 [4] - The stock has experienced fluctuations between $72.16 and $73.87 today, with a 52-week high of $77.41 and a low of $53.40 [4] - The company has a market capitalization of approximately $49.06 billion and a trading volume of 3,455,862 shares on the NYSE [4] Group 2: Technical Analysis - Corteva is in Phase 9 of its 18-phase Adhishthana cycle, which is typically associated with bullish breakouts, but current indicators suggest caution [2] - The stock's Cakra structure, formed between Phases 4 and 8, is crucial for predicting future movements, with the current configuration indicating potential hurdles for the expected breakout [3]

Core Insights - Corteva's stock is currently in a critical phase, having entered Phase 4 in 2022 and forming a Cakra structure that is expected to lead to a bullish breakout in Phase 9, which is yet to materialize [1][2][3] Cakra Structure Analysis - The Cakra structure is visible on charts, but as Corteva transitioned into Phase 9, it was trading near the lower end of the Cakra, which is not ideal for a breakout [2][3] - The stock has faced repeated selling pressure near the upper boundary of the Cakra, indicating a potential risk of a breakdown if a breakout does not occur [3][4] Monthly Chart Insights - On the monthly charts, Corteva is in Phase 2 and has recently moved into the Buddhi segment, which can support bullish momentum, but lacks the necessary consolidation from the previous phase [5] - The absence of this prerequisite consolidation weakens the bullish outlook and adds to the caution observed on the weekly charts [5] Investor Outlook - The repeated rejection near the upper boundary of the Cakra serves as a warning for investors, suggesting that if the stock breaks below the Cakra, downside pressure could increase rapidly [6][7] - Investors are advised to avoid chasing the stock and existing holders should monitor the Cakra structure closely for any signs of a breakdown, which may indicate underlying fundamental risks [7]

Core Insights - The report summarizes significant analyst rating adjustments that could influence market trends, highlighting both upgrades and downgrades across various companies [1]. Upgrades - B. Riley upgraded Snap (SNAP) from Neutral to Buy, maintaining a target price of $10, citing strong growth in high-end subscription revenue and the rollout of high-margin advertising formats [5]. - Seaport Research upgraded FuboTV (FUBO) from Neutral to Buy with a target price of $3, viewing current uncertainties as a quality investment opportunity following a significant stock drop post-earnings [5]. - Wolfe Research upgraded Zoom Video Communications (ZM) from Peer Perform to Outperform, setting a target price of $115, anticipating a re-acceleration in growth and strong performance in its contract center and phone business [5]. - Jefferies upgraded Celanese (CE) from Hold to Buy, raising the target price from $43 to $86, suggesting it is a good time to buy despite potential earnings volatility in the first half of 2026 [5]. - Cantor Fitzgerald upgraded DigitalOcean (DOCN) from Neutral to Overweight, increasing the target price from $47 to $68, emphasizing its focus on digital-native enterprises and a strong foundation for market expansion [5]. Downgrades - Stifel downgraded Microsoft (MSFT) from Buy to Hold, reducing the target price from $540 to $392, citing supply issues with Azure and strong competition from Google Cloud [5]. - Susquehanna downgraded Qualcomm (QCOM) from Positive to Neutral, lowering the target price from $210 to $140, recommending a wait-and-see approach due to industry challenges [5]. - Citigroup downgraded Six Flags Entertainment (FUN) from Buy to Neutral, cutting the target price from $25 to $20, citing overvaluation after a 40% increase since November [5]. - Jefferies downgraded Steven Madden (SHOO) from Hold to Underperform, lowering the target price from $37 to $30, highlighting ongoing pressures in its wholesale business [5]. - JPMorgan downgraded Corteva (CTVA) from Overweight to Neutral, raising the target price from $75 to $77, based on valuation considerations [5]. Initiations - Benchmark initiated coverage on Cava Group (CAVA) with a Buy rating and a target price of $80, recognizing its leading position in the Mediterranean dining category [5]. - H.C. Wainwright initiated coverage on Incyte (INCY) with a Buy rating and a target price of $135, noting potential catalysts that could stabilize revenue expectations post-Jakafi patent expiration [5]. - Bernstein initiated coverage on Coupang (CPNG) with an Underperform rating and a target price of $17, favoring companies with strong growth potential driven by online penetration [5]. - Benchmark initiated coverage on Andersons (ANDE) with a Buy rating and a target price of $75, highlighting the growth momentum in its ethanol business [5]. - Bank of America initiated coverage on Wave Life Sciences (WVE) with a Buy rating and a target price of $38, emphasizing the differentiated advantages of its obesity drug WVE-007 [6].

Financial Performance - Corteva reported a strong year in 2025, with 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 [8][10] - 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, while seed saw a 3% price increase but an 8% volume decline [17][18] - For the full year, organic sales were up 4%, with seed and crop protection both contributing to growth, and operating EBITDA increased by 14% [19][20] Business Line Performance - The seed business achieved organic growth in every region, with significant cost improvements and share gains in corn and soybeans, delivering about $340 million in net cost improvements [9][21] - The crop protection business also showed growth, generating over $300 million in productivity and cost benefits, despite challenging market conditions [10][22] Market Insights - The overall agricultural fundamentals remain mixed, with record demand for food and fuel, and major crop inventories within normal ranges despite large crops in Brazil and North America [10][11] - Farmers are prioritizing top-tier seed technologies while managing tighter margins, with expectations of a shift back to soybeans in 2026 due to high corn area in the U.S. [11] Strategic Direction - Corteva is on track for a separation in the second half of 2026, with ongoing preparations for executive leadership announcements and capital structure submissions [6][7] - The company reached a comprehensive resolution with Bayer regarding seed freedom to operate, which is expected to accelerate licensing opportunities and provide business certainty [12][14] 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 [11][23] - The company is focused on controlling costs and maintaining operational efficiency while navigating competitive pricing dynamics in key markets [10][11] Other Important Information - Free cash flow improved significantly, reaching $2.9 billion, driven by increased EBITDA and working capital discipline [22] - The company plans to return approximately $500 million to shareholders through share repurchases in the first half of 2026 [23] Q&A Session Summary Question: Can you break down the Bayer litigation agreement and its impact on licensing? - Management highlighted that the agreement provides freedom to operate and access to the licensing market, accelerating corn licensing to as early as 2027 and entering the cotton licensing market [31][33] Question: What is the impact of the Bayer agreement on existing licensing expenses? - Management confirmed that a portion of the $120 million net royalty benefit in 2026 comes from eliminated Bayer royalties, leading to a net-neutral position two years ahead of expectations [38][39] Question: How do you view the U.S. order books for the upcoming year? - Management reported strong order books with prepay collected on par with the prior year, indicating a positive start to the year despite potential shifts in corn and soybean acreage [54][56] Question: What is the outlook for free cash flow in 2026? - Management indicated that while free cash flow is expected to be lower than 2025 due to working capital normalization, it remains aligned with long-term targets [59][61] Question: Can you provide an update on Conkesta soybeans in Brazil? - Management expects to double market share in 2026, transitioning fully to licensing through multipliers, with significant momentum anticipated [67][81]

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 ...