Separation Overview - Corteva plans to separate into two independent public companies by October 1, 2025 [1] - The separation aims to create two market-leading entities with distinct market opportunities and tailored business models [16, 17, 21] - The transaction is expected to be completed in H2 2026, subject to customary conditions [24] New Corteva (Crop Protection) - 2025E Revenue is projected to be $78 billion [21] - 2025E Operating EBITDA margin is expected to be approximately 17%, with $135 billion Operating EBITDA [21] - The company's business mix includes 49% Herbicides, 23% Insecticides, 15% Fungicides, 6% Biologicals, and 7% Other [29] - Differentiated products account for 65% in 2024A [31] SpinCo (Seed) - 2025E Revenue is projected to be $99 billion [21] - 2025E Operating EBITDA margin is expected to be approximately 26%, with $26 billion Operating EBITDA [21] - The company holds approximately 8000 patents [40] - The company holds leadership positions across geographies, including 1 in Corn in North America, EMEA, and APAC [38] Financial Performance - Corteva has delivered $7 billion to shareholders through June 2025 [13] - Total Shareholder Return is approximately 200% through June 2025 [13] - Cumulative R&D Investment is $89 billion [13] - Operating EBITDA Growth CAGR is 11% [13] - Operating EBITDA Margin Improvement is over 700 bps [13]

Core Viewpoint - Corteva announced plans to separate its seed and pesticide businesses into two publicly traded companies to enhance strategic focus and increase shareholder value [1] Group 1: Company Strategy - The separation aims to sharpen the strategic focus of Corteva, allowing each entity to concentrate on its core operations [1] - This move is expected to boost shareholder value by creating two distinct investment opportunities [1] Group 2: Market Implications - The decision reflects a broader trend in the agrichemicals industry where companies are seeking to streamline operations and enhance competitiveness [1] - The separation could lead to increased market efficiency and innovation within both the seed and pesticide sectors [1]

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[Financial Statements](index=1&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=1&type=section&id=Consolidated%20Statements%20of%20Operations) Corteva reported strong year-over-year growth in net sales, net income, and diluted EPS for Q2 and H1 2025 Q2 & H1 2025 vs 2024 Performance (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $6,456 | $6,112 | +5.6% | $10,873 | $10,604 | +2.5% | | **Income from Continuing Operations** | $1,382 | $1,056 | +30.9% | $2,049 | $1,432 | +43.1% | | **Net Income (to Corteva)** | $1,314 | $1,053 | +24.8% | $1,966 | $1,472 | +33.6% | | **Diluted EPS (Continuing Ops)** | $2.02 | $1.51 | +33.8% | $2.98 | $2.03 | +46.8% | [Consolidated Balance Sheets](index=2&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $41.76 billion, driven by receivables, and total equity rose to $26.15 billion Key Balance Sheet Items (in millions) | Account | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $16,004 | $15,097 | $15,359 | | **Total Assets** | $41,759 | $40,825 | $41,464 | | **Total Current Liabilities** | $9,516 | $10,386 | $8,953 | | **Total Liabilities** | $15,608 | $16,795 | $16,043 | | **Total Equity** | $26,151 | $24,030 | $25,421 | [Consolidated Statements of Cash Flows](index=3&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash outflow from operating activities improved to $1.16 billion, while overall cash position decreased by $1.11 billion in H1 2025 Six Months Ended June 30 Cash Flow Summary (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Cash from Operating Activities** | $(1,162) | $(2,158) | | **Cash from Investing Activities** | $(198) | $(305) | | **Cash from Financing Activities** | $187 | $1,518 | | **Effect of Exchange Rate Changes** | $68 | $(72) | | **Net Change in Cash** | $(1,105) | $(1,017) | [Consolidated Segment Information](index=4&type=section&id=Consolidated%20Segment%20Information) [Segment Net Sales](index=4&type=section&id=Segment%20Net%20Sales) Both Seed and Crop Protection segments reported sales growth in H1 2025, with Seed sales up 2.3% and Crop Protection up 3.0% H1 Net Sales by Segment and Product (in millions) | Segment / Product | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Seed (Total)** | **$7,244** | **$7,082** | **+2.3%** | | Corn | $5,030 | $4,770 | +5.5% | | Soybean | $1,562 | $1,609 | -2.9% | | **Crop Protection (Total)** | **$3,629** | **$3,522** | **+3.0%** | | Herbicides | $1,855 | $1,832 | +1.3% | | Fungicides | $646 | $545 | +18.5% | [Geographic Net Sales](index=4&type=section&id=Geographic%20Net%20Sales) North America led H1 2025 sales growth in both segments, while Latin America saw strong Crop Protection growth despite Seed declines H1 2025 Net Sales by Geography (in millions) | Region | Seed Sales | Seed YoY | Crop Protection Sales | Crop Protection YoY | | :--- | :--- | :--- | :--- | :--- | | **North America** | $5,551 | +6.3% | $1,288 | +2.0% | | **EMEA** | $1,108 | -5.2% | $1,116 | +2.2% | | **Latin America** | $339 | -29.1% | $775 | +12.8% | | **Asia Pacific** | $246 | +16.6% | $450 | -6.3% | [Reconciliation of Non-GAAP Measures](index=5&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [Operating EBITDA and Organic Sales Reconciliation](index=5&type=section&id=Operating%20EBITDA%20and%20Organic%20Sales%20Reconciliation) Operating EBITDA increased by 12.9% in Q2 and 13.6% in H1 2025, while Organic Sales grew 7% in Q2 and 5% in H1 Operating EBITDA by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Seed | $1,863 | $1,698 | $2,705 | $2,446 | | Crop Protection | $334 | $255 | $711 | $565 | | **Total Operating EBITDA** | **$2,164** | **$1,917** | **$3,353** | **$2,951** | - Organic Sales (Non-GAAP) for H1 2025 were **$11.15 billion**, an increase of **5%** compared to the prior year, after adjusting for a **$274 million** negative impact from currency and portfolio changes[10](index=10&type=chunk) [Price-Volume-Currency Analysis](index=6&type=section&id=Price-Volume-Currency%20Analysis) Organic sales growth was primarily volume-driven, with H1 2025 total organic sales up 5% from 4% volume and 1% price [Q2 2025 vs. Q2 2024 Analysis](index=6&type=section&id=Q2%202025%20vs.%20Q2%202024%20Analysis) Q2 2025 organic sales grew 7%, driven by volume, with Crop Protection up 9% and Fungicides surging 40% organically Q2 2025 Organic Sales Growth vs. Q2 2024 | Segment / Product | Organic Change | Price & Mix | Volume | | :--- | :--- | :--- | :--- | | **Total Company** | **+7%** | **+1%** | **+6%** | | **Seed Segment** | +6% | +3% | +3% | | Corn | +12% | +4% | +8% | | **Crop Protection Segment** | +9% | -2% | +11% | | Fungicides | +40% | +2% | +38% | [First Half 2025 vs. First Half 2024 Analysis](index=8&type=section&id=First%20Half%202025%20vs.%20First%20Half%202024%20Analysis) H1 2025 organic sales grew 5%, driven by volume, with Seed up 5% and Crop Protection up 6%, led by Fungicides' 23% growth H1 2025 Organic Sales Growth vs. H1 2024 | Segment / Product | Organic Change | Price & Mix | Volume | | :--- | :--- | :--- | :--- | | **Total Company** | **+5%** | **+1%** | **+4%** | | **Seed Segment** | +5% | +3% | +2% | | Corn | +8% | +3% | +5% | | **Crop Protection Segment** | +6% | -2% | +8% | | Fungicides | +23% | -2% | +25% | [Significant Items](index=10&type=section&id=Significant%20Items) Corteva reported a net pre-tax benefit of $33 million from significant items in Q2 2025, reversing a prior-year charge Significant Items Summary (Pre-tax, in millions) | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Q1 Total** | $(59) | $(127) | | **Q2 Total** | $33 | $(137) | | **Year-to-Date Total** | **$(26)** | **$(264)** | - Key significant items in Q2 2025 included **$98 million** in insurance proceeds and **$(79) million** in restructuring and asset-related charges In Q1 2025, notable items were a **$(37) million** charge for AltEn facility remediation and a **$(22) million** restructuring charge[29](index=29&type=chunk) [Operating Earnings Per Share (EPS) Reconciliation](index=11&type=section&id=Operating%20Earnings%20Per%20Share%20(EPS)%20Reconciliation) Non-GAAP Operating EPS increased significantly, rising 20.2% to $2.20 in Q2 2025 and 22.4% to $3.33 in H1 2025 GAAP vs. Operating EPS Reconciliation | Period | GAAP Diluted EPS (Continuing Ops) | Operating EPS (Non-GAAP) | YoY Change (Operating EPS) | | :--- | :--- | :--- | :--- | | **Q2 2025** | $2.02 | $2.20 | +20.2% | | **Q2 2024** | $1.51 | $1.83 | N/A | | **H1 2025** | $2.98 | $3.33 | +22.4% | | **H1 2024** | $2.03 | $2.72 | N/A | [Base Income Tax Rate Reconciliation](index=13&type=section&id=Base%20Income%20Tax%20Rate%20Reconciliation) Corteva's GAAP effective income tax rate was 20.8% for H1 2025, reconciling to a non-GAAP base rate of 22.0% Tax Rate Reconciliation (Six Months Ended June 30) | Tax Rate | 2025 | 2024 | | :--- | :--- | :--- | | **Effective Income Tax Rate (GAAP)** | 20.8% | 21.3% | | Effect of Non-GAAP Adjustments | +1.2% | +1.1% | | **Base Income Tax Rate (Non-GAAP)** | 22.0% | 22.4% | [Exchange Gains/Losses Analysis](index=14&type=section&id=Exchange%20Gains%2FLosses%20Analysis) A hedging program generated a $149 million gain, offsetting a $201 million loss, resulting in a net pre-tax exchange loss of $52 million Pre-tax Exchange Gain (Loss) Summary (in millions) | Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Subsidiary Monetary Position Loss | $(201) | $(43) | | Hedging Program Gain (Loss) | $149 | $(94) | | **Total Exchange Loss** | **$(52)** | **$(137)** |

Core Viewpoint - Corteva plans to separate into two independent, publicly traded companies: New Corteva (Crop Protection) and SpinCo (Seed) to enhance focus and growth opportunities for both segments [2][3][4] Company Overview - Corteva has established itself as a leader in the agriculture technology sector, focusing on innovation and operational excellence [4][6] - The separation aims to create two distinct market leaders, each with tailored capital allocation strategies and growth priorities [3][5] Strategic Rationale - The separation is seen as a logical step to maximize long-term value creation by allowing each business to focus on its own market dynamics and growth strategies [5][7] - New Corteva will emphasize differentiated, innovative solutions, particularly in the biologicals segment, which is the fastest-growing market area [6][8] Financial Projections - Estimated net sales for New Corteva in 2025 are projected to be $7.8 billion, accounting for 44% of Corteva's total net sales [6][10] - SpinCo is expected to generate $9.9 billion in net sales in 2025, representing 56% of Corteva's total net sales [10][17] Transaction Details - The separation is expected to be completed in the second half of 2026 and is intended to qualify as a tax-free transaction for U.S. federal tax purposes [6][10][11] - The transaction is subject to various conditions, including board approval and legal opinions regarding its tax-free nature [11] Leadership and Management - Current Corteva Chair Greg Page will lead New Corteva, while CEO Chuck Magro will head SpinCo, with full management teams to be announced later [3][4]

Core Viewpoint - Shares of seed and fertilizer suppliers experienced significant declines following the U.S. government's announcement to investigate competition in the market for essential agricultural inputs [4] Group 1: Company Impact - Corteva Inc. (NYSE:CTVA) was the most affected, with its shares dropping approximately 5.1% [4] - Fertilizer manufacturers also faced declines, indicating a broader impact across the sector [4]

Group 1 - The article recommends buying Corteva, Inc. (NYSE: CTVA) shares with a target price of $80 per share, indicating an upside of approximately 12.7% from current levels [1] - The positive outlook is based on Corteva's leading position in the agricultural sector, which is expected to drive growth [1] Group 2 - The analyst has no current stock or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours [1]

Group 1 - The article recommends buying Corteva, Inc. (NYSE: CTVA) shares with a target price of $80 per share, indicating an upside of approximately 12.7% from current levels [1] - The positive outlook is based on Corteva's leading position in the agricultural sector, which is expected to drive growth [1] Group 2 - The analyst emphasizes the importance of thorough research and analysis in identifying investment opportunities, particularly in emerging markets [1]

Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1][3] - It emphasizes the importance of community and education in investing, suggesting that individuals should not invest alone [3] - The service offers features such as model portfolios, buy/sell alerts, and regular market updates to support investors [3] Group 2 - The article mentions the presence of contributors who support the investment service, indicating a collaborative approach to investment recommendations [5] - It highlights the monitoring of investment positions and the issuance of alerts to members, ensuring active management of portfolios [5]

Core Viewpoint - The agricultural giant Corteva is considering a split into independent seed and crop protection businesses due to inventory pressures and price competition affecting industry profitability [1] Company Summary - Corteva's CEO Chuck Magro acknowledged the poor performance of the crop protection business over the past two years, attributing it to inventory adjustments and price competition [1] - In March 2023, Corteva divested its glyphosate raw material business [1] - For the fiscal year 2024, Corteva reported a 7% year-over-year decline in crop protection business operating EBITDA to $1.3 billion, with sales down 5% to $7.4 billion [1] - Conversely, the seed business saw a 5% year-over-year increase in operating EBITDA to $2.2 billion, with sales of $9.5 billion, reflecting a 1% growth [1] Industry Summary - The agricultural sector is currently facing challenges such as inventory reduction pressures and intense price competition, which are reshaping the global market landscape and squeezing profit margins [1] - Magro expressed optimism for a recovery in 2025, anticipating improved performance compared to 2024 and 2023, as inventory stabilizes and demand in major agricultural markets is expected to recover [1] - However, he noted that weak crop prices in the U.S. are eroding some profit margins [1]