Financial Data and Key Metrics Changes - Organic sales increased by 11% year-over-year in Q3, with both seed and crop protection contributing to this growth [20] - Year-to-date organic sales were up 6%, driven by a 3% increase in price mix and a 4% increase in volume for seeds [21] - Operating EBITDA for the quarter was positive, showing over 600 basis points of margin expansion compared to the previous year [20] - Full-year operating EBITDA is now expected to be in the range of $3.8 billion to $3.9 billion, reflecting a 14% growth at the midpoint [13][24] Business Line Data and Key Metrics Changes - The seed business achieved $200 million in productivity and deflation benefits, alongside $90 million in royalty improvements [9] - Crop protection business is expected to see full-year EBITDA growth in the high single digits, driven by demand for differentiated technology [10] - New products and biologicals in crop protection delivered double-digit volume gains compared to the prior year [21] Market Data and Key Metrics Changes - The overall agricultural market fundamentals remain mixed, with record demand for food and fuel, and major crop inventories within normal ranges [12] - In Brazil, the crop protection market is expected to stabilize pricing, moving from high single-digit losses to mid-single-digit growth [60] - The crop protection industry is anticipated to see low single-digit growth in 2026, with high single-digit growth in biologicals [16] Company Strategy and Development Direction - The company plans to separate into two public entities by the second half of 2026 to better position its seed and crop protection businesses for long-term growth [6][8] - Focus on differentiated technologies and collaborations is expected to drive innovation and market success [7] - The introduction of hundreds of new products is anticipated to enhance returns for farmers and contribute to volume growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong early demand for safrinha seeds in Brazil and a robust R&D pipeline valued at $9 billion [8][30] - The company is raising its full-year operating EBITDA guidance due to broad-based organic sales growth and cost improvements [24] - Management noted that the agricultural market is experiencing competitive pricing dynamics, particularly in Brazil, but underlying demand remains strong [12][60] Other Important Information - The company expects to achieve a free cash flow conversion rate of approximately 50% for the year, alongside $1 billion in share repurchases [15][26] - The anticipated separation is aimed at sharpening focus and accelerating innovation, with a commitment to delivering strong results during the transition [18] Q&A Session Summary Question: What should the independent company focus on post-separation? - Management highlighted the importance of their strong R&D pipeline and differentiated technology as key areas for growth and margin improvement [30] Question: Will there be further pruning of the AI portfolio? - Management expressed satisfaction with the current portfolio and indicated openness to partnerships and collaborations to enhance offerings [36] Question: How are credit market conditions evolving for growers in Latin America? - Management noted that while there are higher borrowing costs and increased bankruptcies, Corteva is managing risks effectively with minimal losses [40][41] Question: What are the expectations for biologicals growth? - Management reported strong growth in biologicals, with expectations for continued high single- to low double-digit growth rates in the future [53] Question: How is the company managing working capital? - Management indicated that working capital improvements have contributed significantly to free cash flow, with expectations for typical inventory builds in Q4 [73]

Financial Data and Key Metrics Changes - Organic sales increased by 11% year-over-year for the third quarter, with both seed and crop protection contributing to this growth [20] - Year-to-date organic sales were up 6%, driven by a 3% increase in seed price mix and a 4% increase in volume [21] - Operating EBITDA for the third quarter showed a significant improvement, with a margin expansion of over 600 basis points compared to the prior year [20][21] - Full year operating EBITDA is now expected to be in the range of $3.8 billion to $3.9 billion, reflecting a 14% growth at the midpoint [13][24] Business Line Data and Key Metrics Changes - The seed business achieved $200 million in productivity and deflation benefits, alongside $90 million in royalty improvements [9] - Crop protection business is expected to see full year EBITDA growth in the high single digits, driven by demand for differentiated technology [10] - New products and biologicals in crop protection delivered double-digit volume gains compared to the prior year [21] Market Data and Key Metrics Changes - The overall agricultural market fundamentals remain mixed, with record demand for food and fuel, and major crop inventories within normal ranges [12] - In the crop protection market, competitive pricing dynamics persist in some major markets, but underlying farmer demand remains strong [12] - Brazil is expected to see mid-single-digit pricing improvements in crop protection, compared to high single-digit losses the previous year [60] Company Strategy and Development Direction - The company plans to separate into two public entities to better position its seed and crop protection businesses for long-term growth [6][8] - The focus will be on leveraging new technologies like gene editing and artificial intelligence to capture market opportunities [7] - The company aims to maintain a strong R&D investment of 6%-7% of revenue to drive innovation [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong current performance and the potential for greater success as separate entities [8] - The company anticipates continued record demand for grains and oilseeds, with farmers prioritizing top-tier technologies [15] - The crop protection industry is expected to see low single-digit growth in 2026, with high single-digit growth in biologicals [16] Other Important Information - The company is on track for $1 billion in share repurchases in 2025, reflecting confidence in its balance sheet and cash flow outlook [26] - Free cash flow is expected to be approximately $1.9 billion, with a cash conversion rate of about 50% [24] Q&A Session Summary Question: What should the independent company focus on post-separation? - Management highlighted the importance of their R&D pipeline and differentiated technology as key growth drivers for the independent crop protection business [30] Question: Will there be further pruning of the AI portfolio? - Management expressed satisfaction with the current portfolio and indicated openness to partnerships for further innovation [36] Question: How are credit market conditions evolving for growers in Latin America? - Management noted that while there are higher borrowing costs and increased bankruptcies, Corteva is managing risks effectively with minimal losses [40] Question: What are the expectations for biologicals growth? - Management is pleased with the current growth in biologicals and expects continued strong growth rates in the future [53] Question: How is the company managing working capital? - Management indicated that working capital improvements have been a significant driver of free cash flow, with expectations for typical inventory builds in Q4 [73]

Financial Data and Key Metrics Changes - Organic sales increased by 11% year-over-year for the third quarter, with both seed and crop protection contributing to this growth [17] - Year-to-date organic sales were up 6%, driven by a 3% increase in seed price mix and a 4% increase in seed volume [18] - Operating EBITDA for the third quarter showed a significant improvement, with a margin expansion of over 600 basis points compared to the prior year [17] - Full year operating EBITDA is now expected to be in the range of $3.8 billion to $3.9 billion, reflecting a 14% growth at the midpoint compared to the previous year [10][21] Business Line Data and Key Metrics Changes - The seed business achieved $200 million in productivity and deflation benefits, alongside $90 million in royalty improvements [7] - Crop protection business is expected to see full year EBITDA growth in the high single digits, driven by demand for differentiated technology [8] - New products and biologicals in crop protection delivered double-digit volume gains compared to the prior year [18] Market Data and Key Metrics Changes - The overall agricultural market fundamentals remain mixed, with record demand for food and fuel, and major crop inventories within normal ranges [10] - Competitive pricing dynamics continue in some major markets, particularly in crop protection [10][15] - In Brazil, crop protection pricing is expected to stabilize, moving from high single-digit losses last year to mid-single-digit losses this year [41] Company Strategy and Development Direction - The company announced plans to separate into two public companies to better position its seed and crop protection businesses for long-term growth [4][6] - Focus on differentiated technologies and new product introductions is expected to drive solid returns for farmers and premium market positioning [15] - The company anticipates rolling out several hundred new hybrids and varieties in 2026 to enhance farmer productivity [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong early safrinha seed demand in Brazil and a robust R&D pipeline valued at $9 billion [6][25] - The company expects low single-digit growth in the crop protection industry, with high single-digit growth in biologicals [14] - Management highlighted the importance of maintaining a strong balance sheet and cash flow outlook, with a commitment to $1 billion in share repurchases [23] Other Important Information - The company is on track for a free cash flow conversion rate of approximately 50% for the year [12] - The anticipated separation is expected to unlock value and sharpen focus on innovation [16] - The company is committed to maintaining R&D investment at 6%-7% of revenue to support ongoing innovation [28] Q&A Session Summary Question: What should the independent company focus on post-separation? - Management emphasized the strength of the crop protection business and the depth of its R&D pipeline, indicating that the focus should remain on differentiated technology and collaboration opportunities [24][25] Question: Are there plans for further pruning of the AI portfolio? - Management expressed satisfaction with the current portfolio and indicated openness to partnerships and collaborations to enhance offerings [29][30] Question: How are credit market conditions evolving for growers in Latin America? - Management noted that while there are higher borrowing costs and increased bankruptcies, Corteva has managed risks effectively, resulting in minimal losses [31][32] Question: What are the expectations for synergy costs post-separation? - Initial estimates for synergy costs were projected at $80 million to $100 million, with ongoing efforts to minimize this number [34][36] Question: How is the biologicals segment performing? - Management reported strong growth in biologicals, with expectations for continued high single-digit to low double-digit growth rates [39] Question: What is the outlook for crop chemical pricing? - Management expects crop chemical pricing to stabilize, with Brazil showing signs of improvement compared to previous years [41][42] Question: How is the seed market share performing? - Management expressed confidence in gaining market share in key crops, particularly corn and soy, with expectations for Conkesta to reach double-digit market penetration in Brazil [50][51]

Financial Performance & Outlook - 3Q 2025 net sales reached $2.618 billion, a 13% increase compared to 3Q 2024[33] - YTD 2025 net sales totaled $13.5 billion, a 4% increase year-over-year[21] - The company is raising its FY 2025 Operating EBITDA guidance to $3.80 - $3.90 billion, reflecting a 14% growth at the mid-point[18] - The company anticipates ~$1 billion in share repurchases for FY 2025[18] - Preliminary view for 2026 indicates a full-year Operating EBITDA of $4.1 billion at the mid-point[20] Segment Performance - Seed net sales in 3Q 2025 increased by 33% to $917 million, with organic sales growth of 31%[37] - Crop Protection net sales in 3Q 2025 increased by 4% to $1.701 billion, with organic sales growth of 3%[59] - YTD 2025 Seed net sales increased by 5% to $8.161 billion, with organic sales growth of 7%[49] - YTD 2025 Crop Protection net sales increased by 3% to $5.330 billion, with organic sales growth of 5%[71] Strategic Initiatives - The company is on track to separate into two market-leading public companies in 2H 2026[14] - Restructuring activities in the Crop Protection network are expected to result in approximately $160 million to $175 million net pre-tax restructuring charges during 2025[8]

Core Insights - Corteva, Inc. reported $2.62 billion in revenue for Q3 2025, a year-over-year increase of 12.6%, with an EPS of -$0.23 compared to -$0.49 a year ago, exceeding the Zacks Consensus Estimate of $2.49 billion by 5.2% and delivering an EPS surprise of 53.06% [1] Revenue Breakdown - Seed revenue was $917 million, surpassing the estimated $765.33 million, reflecting a 32.7% increase year-over-year [4] - Crop Protection revenue totaled $1.7 billion, slightly below the estimated $1.76 billion, with a year-over-year increase of 4% [4] - Other Crop Protection revenue was $110 million, significantly lower than the estimated $149.2 million, showing a year-over-year decline of 55.3% [4] - Other Seed revenue was $38 million, below the estimated $75.13 million, representing a year-over-year decrease of 50.7% [4] - Herbicides revenue reached $813 million, slightly above the estimated $800.99 million, with a year-over-year increase of 10.5% [4] - Insecticides revenue was $409 million, below the estimated $447.85 million, reflecting a year-over-year decline of 6.4% [4] - Fungicides revenue was $222 million, below the estimated $272.74 million, with a year-over-year increase of 2.8% [4] - Soybean Seed revenue was $152 million, below the estimated $174.91 million, showing a year-over-year decline of 7.3% [4] - Corn Seed revenue was $586 million, exceeding the estimated $411.07 million, representing an 86% year-over-year increase [4] - Other oilseeds Seed revenue was $141 million, above the estimated $122.51 million, with a year-over-year increase of 4.4% [4] Operating Performance - Operating EBITDA for Seed was -$193 million, better than the estimated -$310.39 million [4] - Operating EBITDA for Corporate was -$37 million, slightly worse than the estimated -$29.64 million [4] Stock Performance - Corteva, Inc. shares returned -3.5% over the past month, while the Zacks S&P 500 composite increased by 2.1%, indicating potential underperformance relative to the broader market [3]

Core Insights - Corteva, Inc. reported a quarterly loss of $0.23 per share, outperforming the Zacks Consensus Estimate of a loss of $0.49, and showing improvement from a loss of $0.49 per share a year ago, resulting in an earnings surprise of +53.06% [1] - The company achieved revenues of $2.62 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 5.20% and up from $2.33 billion year-over-year [2] - Corteva's stock has increased approximately 9% since the beginning of the year, while the S&P 500 has gained 16.5% [3] Earnings Outlook - The future performance of Corteva's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $4.25 billion, and for the current fiscal year, it is $3.21 on revenues of $17.61 billion [7] Industry Context - The Agriculture - Operations industry, to which Corteva belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Core Insights - The seed and pesticide producer reported a loss of $320 million in the third quarter, which is an improvement compared to a loss of $524 million in the same period last year [1] Financial Performance - The company experienced a reduction in losses, with the current quarter's loss of $320 million representing a decrease of $204 million from the previous year's loss of $524 million [1]

A-1 Corteva, Inc. Consolidated Statements of Operations (Dollars in millions, except per share amounts) | | | | Three Months Ended | | | | Nine Months Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | September 30, | | | | September 30, | | | | | 2025 | | 2024 | | 2025 | | 2024 | | Net sales | $ | 2,618 | $ | 2,326 | $ | 13,491 | $ | 12,930 | | Cost of goods sold | | 1,644 | | 1,565 | | 6,918 | | 7,033 | | Research and development expense | | 351 | | 348 | | 1,061 | | 1,037 | | Selli ...

Financial Performance - For Q3 2025, net sales were $2.62 billion, a 13% increase compared to Q3 2024, while organic sales rose by 11% [10][14] - Year-to-date (YTD) net sales reached $13.49 billion, reflecting a 4% increase from 2024, with organic sales up 6% [5][14] - The company reported a loss from continuing operations of $308 million in Q3 2025, an improvement from a loss of $519 million in Q3 2024 [12][14] - Operating EBITDA for Q3 2025 was $49 million, a 149% increase year-over-year [12][14] Segment Performance - Crop Protection segment net sales for Q3 2025 were approximately $1.70 billion, up 4% from Q3 2024, driven by a 5% increase in volume [19][21] - Seed segment net sales were $917 million in Q3 2025, up from $691 million in Q3 2024, with a 27% increase in volume [15][21] - Crop Protection YTD net sales were approximately $5.33 billion, a 3% increase from the same period in 2024 [21][24] - Seed YTD net sales reached $8.16 billion, a 5% increase from 2024, with a 3% increase in price/mix and a 4% increase in volume [15][24] Strategic Initiatives - The company plans to separate into two independent public companies by the second half of 2026, with "New Corteva" focusing on crop protection and "SpinCo" on advanced genetics [7][8] - The separation is expected to enhance long-term value through tailored innovation and capital allocation strategies [6][13] - Full-year 2025 guidance has been raised, with net sales expected between $17.7 billion and $17.9 billion, and operating EBITDA projected between $3.8 billion and $3.9 billion [5][26] Market Outlook - The global agricultural outlook remains mixed, with strong demand but pressured commodity prices and farmer margins [25][26] - The company anticipates a large crop production year, with record demand leading to low global corn stock levels [25][26] - Global crop protection industry volumes have stabilized, with signs of price stabilization emerging [26]

Core Viewpoint - Corteva, Inc. is positioned as a leading global agricultural company with strong growth potential and financial health, making it an attractive investment opportunity for growth-oriented investors [1][3][4]. Company Overview - Corteva was established as a spin-off from DowDuPont in 2019 and competes with major agricultural companies like Bayer and Syngenta [1]. Stock Performance - The stock has experienced a recent decline of 3.07% over the past month and a loss of 0.71% over the last 10 days, indicating a short-term downtrend [2]. - Despite the recent decline, the stock presents a strategic entry point for investors looking to capitalize on its growth potential [2]. Growth Potential - Corteva's stock is estimated to have a potential price increase of 31.09%, suggesting substantial appreciation from current levels [3][6]. - Analysts have set a target price of $80.67 for Corteva, indicating significant upside potential from current trading levels [5][6]. Financial Health - The company has a strong Piotroski Score of 8, indicating solid financial strength and positioning for future growth [4][6].