Full-year 2024 results in-line with expectations on technology demand and controllable levers Strong 4Q volume gains across both businesses, notably in Brazil, reflects growing momentum Full-year 2025 guidance3 refined for currency impact from the strengthening U.S. dollar INDIANAPOLIS, Feb. 5, 2025 /PRNewswire/ -- Corteva, Inc. (NYSE: CTVA) ("Corteva" or the "Company") today reported financial results for the fourth quarter and full-year ended December 31, 2024. 4Q 2024 Results Overview   Net Sale ...

Corteva, Inc. (NYSE: CTVA ) is a global leader in seeds and crop protection products. Investors should know that Corteva is a play on agricultural commodity prices that is also a long-term bet on the growing needI am an investment professional with a background in both equity and real estate markets. I specialize in identifying long-only opportunities that offer safe and growing dividends, aiming to outperform the broader market on a risk-adjusted return basis. In addition to managing my family's investment ...

The return of President Trump to the White House in 2025 comes with all kinds of speculation regarding his trade policies and import tariffs. The United States agriculture industry is bracing for change. Trump signed the Agriculture Improvement Act of 2018 (aka the Farm Bill) into law, but it technically expired on Sept. 30, 2024. Congress has extended the bill through crop season 2025. While Trump looks to trim down government regulatory agencies, including the USDA and FDA, his priority is to bolster indu ...

Core Insights - Corteva, Inc. (CTVA) is implementing strategic initiatives to enhance growth and maximize shareholder value by addressing global challenges such as food security, climate change, and the transition to biofuels [1][3] Financial Strategy - The company has introduced a new financial framework targeting $1 billion in higher net sales from growth platforms, approximately $1 billion in cost deflation and productivity gains, and nearly $4.5 billion in shareholder returns by 2027 [3] - A new $3 billion share repurchase authorization has been approved, effective immediately, in addition to the existing $2 billion program [2][7] Growth Platforms - CTVA has defined six growth platforms: 1. Seed and trait out-licensing aiming for royalty-neutral status by 2028 2. Biologicals targeting $1 billion in annual revenues by 2030 3. New crop protection technologies to combat increasing pest pressures 4. Gene editing to revolutionize farming practices 5. Biofuels to meet rising demand in long-haul transportation 6. Hybrid wheat with potential yield advantages of up to 20% in water-stressed areas [4][5] Innovation and R&D - The company invests 8% of its sales into research and development, equating to nearly $4 million per day, to tackle significant challenges faced by farmers [6] Shareholder Returns - In the nine months ending September 30, 2024, Corteva repurchased $757 million in shares and paid $340 million in dividends, with an anticipated repurchase of approximately $1 billion in 2024 [9][10] - The company has also increased its dividend earlier this year, reinforcing its commitment to enhancing shareholder value [10] Market Performance - CTVA's shares have increased by 22.6% year-to-date, outperforming the industry average decline of 10.4% [11] - The Crop Protection business is performing well, driven by strong demand and cost deflation, with expected savings of over $400 million in 2024 [12] Technological Advancements - Corteva has introduced a proprietary non-GMO hybrid wheat technology that could potentially increase yields by 10% while using the same land and resources, and improve drought resistance [13]

Core Viewpoint - Corteva aims to address global challenges such as food security, climate change, and the energy transition through innovation, thereby creating value for farmers and shareholders [1][3]. Financial Framework - The company has set a financial framework through 2027, targeting $1 billion in incremental net sales from growth platforms, approximately $1 billion in cost deflation and productivity benefits, and around $4.5 billion in shareholder returns [2]. - Key growth platforms include: 1. Seed and trait out-licensing to achieve royalty-neutral status by the end of 2028 2. Biologicals aiming for $1 billion in annual revenues by the end of the decade 3. New Crop Protection technologies to combat increasing pressures from pests and diseases 4. Gene editing leveraging advanced industry capabilities 5. Biofuels to meet rising demand in the transportation sector 6. Hybrid wheat with potential yield advantages of 10% to 20% in water-stressed environments [2]. Commitment to Innovation - Corteva reinvests approximately 8% of its sales into research and development, equating to about $4 million per day, to address farmers' challenges [2]. - The company emphasizes its agronomic expertise and technology to provide comprehensive solutions for farmers [3][4]. Market Position - Corteva is positioned as a critical technology provider in the agriculture industry, with a strong track record of delivering value to farmers, shareholders, and society [3]. - The company combines innovation with a unique distribution strategy and a balanced mix of seed, crop protection, and digital products [4].

Core Viewpoint - Corteva, Inc. has authorized a new $3 billion share repurchase program, reflecting the company's focus on disciplined capital deployment and confidence in its future [1][3]. Summary by Sections Share Repurchase Program - The new $3 billion share repurchase program is effective immediately and does not have an expiration date, allowing management discretion in share purchases [1]. - This program is in addition to the existing $2 billion program announced in September 2022, which had approximately $750 million remaining as of September 30, 2024 [2]. Financial Strategy and Outlook - The timing, number, and value of shares repurchased will depend on various factors, including market price, economic conditions, legal requirements, and other capital uses such as organic growth, dividends, and acquisitions [2]. - The CEO of Corteva emphasized that the new share repurchase program, along with a dividend increase earlier in the year, demonstrates the company's strong financial outlook and commitment to disciplined capital deployment [3]. Company Overview - Corteva, Inc. is a global pure-play agriculture company focused on delivering innovative solutions to agricultural challenges, with a diverse mix of seed, crop protection, and digital products [4]. - The company aims to maximize productivity for farmers while engaging with stakeholders throughout the food system, ensuring progress for future generations [4].

Core Insights - Corteva has announced a proprietary non-GMO hybrid technology for wheat, marking a significant advancement in wheat production, which has historically lagged behind other crops like corn in terms of hybridization benefits [1][3]. Group 1: Technology and Innovation - The new hybrid wheat technology is expected to increase yield potential by 10% while utilizing the same land and resources, enhancing food security for farmers globally [2]. - Corteva's hybrid wheat exhibits approximately 20% higher yields than elite varieties in drought conditions, aiding farmers in adapting to climate change [2]. - The proprietary technology allows for rapid genetic gains and commercial-scale seed delivery, working effectively across 100% of wheat germplasm [3]. Group 2: Market Impact - Wheat is cultivated on about 550 million acres globally, accounting for 20% of calories consumed worldwide, highlighting its importance in the food supply [4]. - Corteva plans to launch hybrid Hard Red Winter wheat in North America by 2027, expanding its product portfolio over time [4]. Group 3: Company Overview - Corteva, Inc. is a global agriculture company focused on innovation and customer engagement, aiming to address significant agricultural challenges while maximizing productivity for farmers [5].

Core Insights - Corteva Inc. and bp announced a collaboration to form a joint venture focused on producing crop-based biofuel feedstocks to meet the growing demand for sustainable aviation fuel (SAF) [1][3] - The joint venture aims to deliver one million metric tons per year of biofuel feedstocks for SAF production by the mid-2030s [3] - The partnership is positioned to leverage Corteva's agricultural technology and bp's refining capabilities to support the decarbonization of the aviation sector [5][6] Company and Industry Overview - Corteva plans to contract with farmers in North and South America and Europe to grow proprietary crops such as mustard seed, sunflower, and canola, which are suitable for SAF production [4] - The joint venture will introduce new cropping systems that meet EU RED III criteria and qualify for US Low Carbon Intensity policy incentives, creating new revenue streams for farmers [4] - The European Union is implementing a SAF mandate that requires at least 20% SAF in fuel uplift at EU airports by 2035 and 70% by 2050, indicating a significant market opportunity for biofuel feedstocks [2]

Industry Overview - The Zacks Agriculture – Operations industry is expected to benefit from innovations and increasing consumer demand for healthy products, with positive agricultural export projections for fiscal 2024 supporting a favorable near-term outlook [1] - The industry includes companies involved in the production, transportation, storage, processing, and distribution of agricultural commodities, as well as those engaged in dairy operations and food ingredient development using gene-editing technology [3][4] Market Trends - Agricultural export projections for fiscal 2025 are estimated at $169.5 billion, a decline of $4 billion from fiscal 2024, primarily due to reduced unit values of soybeans, corn, and cotton, along with lower beef volumes [5][6] - The industry is experiencing a shift towards organic production techniques driven by growing consumer demand for healthier food, which is reducing the use of chemicals and pesticides [7][8] Challenges - Industry participants face significant challenges including fluctuating commodity prices, rising input costs, trade uncertainties, and increased operational expenses, all of which are impacting productivity and profitability [2][9] - Elevated costs due to inflation and supply chain challenges are squeezing profit margins, leading companies to implement pricing strategies and partnerships to mitigate these pressures [10][11] Performance Metrics - The Zacks Agriculture – Operations industry currently holds a Zacks Industry Rank of 86, placing it in the top 35% of over 250 Zacks industries, indicating bright near-term prospects [12][13] - Over the past year, the industry has underperformed the S&P 500 and the Zacks Consumer Staples sector, with a collective decline of 8.4% compared to a 5.8% increase for the sector and a 33.8% increase for the S&P 500 [15] Valuation - The agriculture – operations industry is trading at a forward 12-month price-to-earnings (P/E) ratio of 12.41X, significantly lower than the S&P 500's 22.7X and the sector's 17.33X [16] Company Highlights - **Calavo Growers**: A leader in the avocado industry, with a Zacks Rank 1 (Strong Buy). The company has seen a 14.1% stock rally in the past year, and its fiscal 2024 earnings estimate has increased by 13.9% [18][19] - **Corteva**: A pure-play agriculture company with a Zacks Rank 3 (Hold). The company has experienced a 23.4% stock increase over the past year, although its fiscal 2024 earnings estimate has decreased by 2.3% [20][21] - **Dole**: A global leader in fresh produce with a Zacks Rank 3 (Hold). The company has seen a 40.8% stock increase in the past year, with its fiscal 2024 sales estimate showing a growth of 0.5% [22][23] - **Adecoagro**: Engaged in various agricultural activities in South America, with a Zacks Rank 3 (Hold). The company’s shares have risen 10% in the past year, although its fiscal 2024 earnings estimate has decreased by 6.5% [24][26]

Core Insights - The article discusses the investment position of the analyst in CTVA, indicating a beneficial long position through various means such as stock ownership and options [1]. Group 1 - The analyst expresses personal opinions regarding CTVA and clarifies that no compensation is received for the article, aside from Seeking Alpha [1]. - There is no business relationship disclosed with any company mentioned in the article, emphasizing the independence of the analysis [1].