Company Overview - Corteva reported a strong start to the year with a 15% increase in EBITDA year-over-year, reaching $1.2 billion [2] - The increase in EBITDA was primarily driven by volume growth, particularly in new products and biologicals, which saw double-digit growth [3] Pricing and Revenue - Pricing for seeds was in line with expectations, while crop protection experienced a slight decline in single digits [2] - There was a slight uptick in royalty income, contributing positively to overall revenue [3]

Corteva (CTVA) Conference Call Summary Company Overview - Corteva is a leading seed and crop protection company [1] - The conference featured CFO David Johnson and CTO Sam Eathington discussing the company's performance and outlook [2] Financial Performance - Corteva reported a 15% year-over-year increase in EBITDA for Q1, totaling $1.2 billion [3] - Pricing for seeds was in line with expectations, while crop protection prices saw a slight decline [3] - New products and biologicals in crop protection experienced double-digit growth [4] - The company anticipates $400 million in cost improvements for the year, with $200 million already realized in Q1 [5] - Foreign exchange (FX) impacts were significant, with a $90 million headwind in Q1 and an expected total negative impact of $275 million for the year [6][11] Market Outlook - Corteva's guidance for the year includes a 10% increase in EBITDA, projecting $3.7 billion [9] - Crop protection pricing is expected to be low single-digit negative in the second half of the year, contrasting with earlier expectations of flat pricing [10] - The company is optimistic about volume growth, particularly in biologicals and new products [11] Industry Dynamics - Corteva's performance in Q1 was notably better than competitors like FMC and Bayer, attributed to increased planted acres and successful new product launches [14][15] - The company is monitoring grower sentiment, which remains positive, with corn acres being planted as expected [24][25] - In South America, there is potential for growth, particularly in Brazil, with expectations of a low to mid single-digit price mix lift [30] Strategic Initiatives - Corteva is focused on mitigating tariff impacts, estimating a potential $50 million effect, but believes it can manage this through supply chain options and pricing adjustments [17][21] - The company is investing in gene editing and other technologies to enhance crop yields and disease resistance, with significant potential for future growth [49][52] - Corteva aims to achieve royalty neutrality by 2028, transitioning from paying royalties to licensing its own traits [80][82] Research and Development - R&D spending is stable at about 8% of sales, with a focus on efficiency and effectiveness [76][79] - The integration of recent acquisitions, such as Stoller and Symborg, is progressing well, with positive yield results in Brazil [72][73] Long-term Growth Drivers - Key future products include the fungicide Aviza and hybrid wheat, both expected to contribute significantly to revenue [58][60] - Gene editing is anticipated to double yield gains, creating substantial value in the agricultural sector [62] Conclusion - Corteva is positioned as a technology-driven company with multiple growth opportunities, focusing on innovation in seed and crop protection [93][96] - The management emphasizes the importance of long-term strategies and the potential for significant market impact through advancements in agricultural technology [96]

Group 1 - Corteva, Inc. announced a public offering of $500 million principal amount of 5.125% Senior Notes due in 2032, with interest paid semi-annually [1] - The net proceeds from the sale will be used for general corporate purposes, including the redemption of $500 million outstanding 1.700% Senior Notes due 2025 [1] - The offering is expected to close on May 14, 2025, subject to customary closing conditions [2] Group 2 - BNP Paribas Securities Corp., Citigroup Global Markets Inc., and HSBC Securities (USA) Inc. are acting as joint book-running managers for the offering [2] - The Notes are being offered through a prospectus supplement as part of an effective shelf registration statement filed with the SEC [3] Group 3 - Corteva is a global pure-play agriculture company focused on delivering solutions for agriculture challenges through innovation and customer engagement [6] - The company has a diverse mix of seed, crop protection, and digital products, aiming to maximize productivity for farmers [6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-38710 Corteva, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 82-4979096 ...

Financial Data and Key Metrics Changes - Corteva reported a 15% year-over-year increase in Q1 EBITDA, with nearly 400 basis points of margin expansion driven by strong cost execution [7][20] - Organic sales were up 3% compared to last year, with seed sales increasing by 2% and crop protection sales by 3% [20][22] - Operating EBITDA margin reached nearly 27%, up 390 basis points, supported by organic sales growth and lower input costs [23] Business Line Data and Key Metrics Changes - The seed business saw organic sales increase by 2%, driven by pricing, while crop protection organic sales rose by 3%, supported by double-digit volume growth for new products and biologicals [11][12] - Seed volume decreased by 1% year-over-year, while crop protection volume increased by 5%, with notable double-digit volume gains from new products [21][22] Market Data and Key Metrics Changes - In the U.S., farmers are projected to shift planted area from soybeans to corn, resulting in a projected 5% increase in corn planting [9] - Enlist beans are expected to be planted on over 65% of U.S. soybean acres in 2025, indicating strong market demand [9] - The crop protection market is anticipated to remain flat with low single-digit volume gains, while Corteva expects high single-digit volume gains to offset low single-digit pricing headwinds [12][28] Company Strategy and Development Direction - Corteva aims to become the leading provider of soybean technology in Brazil, having sold over 3 million units of Conquesta E3 soybeans in the last three years [9] - The company is transitioning to a net out-licenser of technology, with expectations of generating $65 million in benefits this year [19] - The focus on operational excellence and cost improvements is expected to generate net cost savings of $400 million [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter performance, noting double-digit EBITDA gains and margin improvements despite potential risks in the second half of the year [18] - The tariff situation is viewed as manageable, with a direct cost impact of approximately $50 million anticipated for 2025 [15][16] - Management highlighted the importance of American farmers and the need for export markets to open up for North American grain and oilseeds [17] Other Important Information - The company plans to introduce approximately 500 new products to the market this year, including around 300 new seed hybrids and varieties [11] - Currency fluctuations posed a significant headwind, impacting sales by approximately 5% [20][24] - Corteva is on track for $1 billion in share repurchases in 2025 [34] Q&A Session Summary Question: Risks in the second half of the year - Management acknowledged the risks but noted that the second half has been derisked since the February guidance, with expectations for crop protection in Brazil to match last year's strong performance [41][42] Question: Price environment in crop protection - Management indicated that while pricing pressures are expected to continue, there are signs of stabilization in the market, particularly with generics from China [66][70] Question: Updates on new growth platforms - Management confirmed that the launch of hybrid red winter wheat is still on track for 2027, with significant revenue potential, and the pilot program for winter canola is expanding [80][81] Question: Tariff impact clarification - Management clarified that the $50 million tariff impact is manageable and not included in the current guidance, as they are working on mitigation strategies [85] Question: Positioning for soybean market shifts - Management noted that U.S. soybean production is essential to meet global demand, despite shifts in imports to Brazil, and emphasized the importance of reopening export markets [92][93]

Financial Data and Key Metrics Changes - Corteva reported a 15% year-over-year increase in Q1 EBITDA, with nearly 400 basis points of margin expansion driven by strong cost execution [6][20] - Organic sales were up 3% compared to last year, with seed sales up 2% and crop protection sales up 3% [20][22] - Operating EBITDA margin reached nearly 27%, reflecting a 390 basis point increase due to organic sales growth and lower input costs [23] Business Line Data and Key Metrics Changes - The seed business saw organic sales increase by 2%, driven by pricing and strong demand, with plans to launch approximately 500 new products this year [10][20] - Crop protection organic sales increased by 3%, supported by double-digit volume growth for new products and biologicals [10][22] - Seed volume was down 1% year-over-year, while crop protection volume was up 5%, with notable gains in nearly every region [21][22] Market Data and Key Metrics Changes - In the U.S., farmers are projected to shift planted area from soybeans to corn, resulting in a projected 5% increase in corn planting [8] - Enlist beans are expected to be planted on over 65% of U.S. soybean acres in 2025, marking it as the number one selling soybean technology in the U.S. [8] - The overall crop protection market is anticipated to remain flat with low single-digit volume gains, while Corteva expects high single-digit volume gains [11][27] Company Strategy and Development Direction - Corteva aims to become the leading provider of soybean technology in Brazil, having sold over 3 million units of Conquesta E3 soybeans in the last three years [8][10] - The company is transitioning to a net out-licenser of technology, expecting to generate $65 million in benefits this year from this strategy [19] - The focus on operational excellence and cost improvements is expected to yield $400 million in net cost savings [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter performance, noting double-digit EBITDA gains and margin improvements despite potential risks in the second half of the year [17][18] - The tariff situation is viewed as manageable, with a projected direct cost impact of about $50 million for 2025 [14][15] - Management highlighted the importance of American farmers and the need for export markets to open up for North American grain and oilseeds [16] Other Important Information - Currency fluctuations posed a $90 million headwind on EBITDA, primarily due to the Turkish lira and Canadian dollar [24] - The company is on track for $1 billion in share repurchases in 2025 [34] - The first half of the year is expected to show stronger performance than initially anticipated, with net sales projected to be flat compared to the prior year [29] Q&A Session Summary Question: Risks in the second half of the year - Management acknowledged the risks but noted that the second half has been derisked since the February guidance, with expectations for crop protection in Brazil to match last year's strong performance [41][42] Question: Future growth potential in seed portfolio - Management emphasized ongoing excitement about the seed business, particularly in North America and Brazil, with significant opportunities in hybrid wheat and canola [55][60] Question: Pricing environment in crop protection - Management indicated that while pricing pressures are expected to continue, there are signs of stabilization in the market, particularly with generics from China [66][70] Question: Update on new growth platforms - Management confirmed that the launch of hybrid red winter wheat is still on track for 2027, with significant revenue potential [78][79] Question: Clarification on tariff impacts - Management clarified that the $50 million tariff impact is manageable and not included in the current guidance, as they are working on mitigation strategies [84][85]

Financial Performance - Q1 2025 - Net sales decreased by 2% to $4.4 billion, but organic sales increased by 3% to $4.6 billion[17] - Operating EBITDA increased by 15% to $1.2 billion[17] - Operating EBITDA margin improved by 390 bps to 26.9%[17] - Operating EPS increased by 27% to $1.13[33] Segment Performance - Q1 2025 - Seed net sales decreased by 2% to $2.707 billion, but organic sales grew by 2%[36] - Seed Operating EBITDA increased by 13% to $842 million, with a margin of 31.1%[36] - Crop Protection net sales decreased by 2% to $1.710 billion, but organic sales grew by 3%[46] - Crop Protection Operating EBITDA increased by 22% to $377 million, with a margin of 22%[46] Full Year 2025 Outlook - The company reaffirms its FY 2025 outlook, expecting Operating EBITDA between $3.6 billion and $3.8 billion, representing 10% growth at the mid-point[11] - The company is on track for approximately $1 billion in share repurchases for FY 2025[11] - Expect ~$50 million direct cost impact from tariffs in FY 2025[15] - The company expects to record approximately $150 million to $165 million net pre-tax restructuring charges during 2025 for restructuring activities[7]

Core Insights - Corteva, Inc. reported revenue of $4.42 billion for the quarter ended March 2025, reflecting a decrease of 1.7% year-over-year and a surprise of -2.04% compared to the Zacks Consensus Estimate of $4.51 billion [1] - The company's EPS was $1.13, which is an increase from $0.89 in the same quarter last year, resulting in an EPS surprise of +29.89% against the consensus estimate of $0.87 [1] Revenue Breakdown - Crop Protection revenue was $1.71 billion, below the four-analyst average estimate of $1.77 billion, with a year-over-year decline of -1.8% [4] - Seed revenue reached $2.71 billion, also below the four-analyst average estimate of $2.77 billion, marking a year-over-year decrease of -1.6% [4] Operating EBITDA Performance - Operating EBITDA for Crop Protection was reported at $377 million, exceeding the three-analyst average estimate of $337.09 million [4] - Operating EBITDA for Seed was $842 million, surpassing the average estimate of $738.94 million based on three analysts [4] Stock Performance - Corteva, Inc. shares have returned +12.5% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Corteva, Inc. (CTVA) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 29.89%. A quarter ago, it was expected that this agriculture would post earnings of $0.34 per share when it actually produced earnings of $0.32, delivering a surprise of -5.88%. Over the last four quarters, the comp ...

A-1 Corteva, Inc. Consolidated Statements of Operations (Dollars in millions, except per share amounts) | | | | Three Months Ende March 31, | | | --- | --- | --- | --- | --- | | | | 2025 | | 202 | | Net sales | $ | 4,417 | $ | 4, | | Cost of goods sold | | 2,342 | | 2, | | Research and development expense | | 335 | | | | Selling, general and administrative expenses | | 751 | | | | Amortization of intangibles | | 162 | | | | Restructuring and asset related charges - net | | 22 | | | | Other income (expense) ...