Financial Performance - The company reported net sales of $2,618 million for Q3 2025, a 13% increase compared to $2,326 million in Q3 2024, driven by a 12% increase in volume and a 2% favorable currency impact, partially offset by a 1% decline in price [212][213]. - For the nine months ended September 30, 2025, net sales were $13,491 million, up 4% from $12,930 million in the same period last year, reflecting a 5% increase in volume and a 1% increase in price, partially offset by a 2% unfavorable currency impact [216][217]. - Income from continuing operations after income taxes for Q3 2025 was $(308) million, an improvement from $(519) million in the same quarter last year [212]. - Income from continuing operations after income taxes for the nine months ended September 30, 2025, was $1,741 million, up from $913 million in the same period of 2024 [271]. - The company reported a diluted earnings per share of $(0.46) for Q3 2025, compared to $(0.76) in Q3 2024, while for the nine months ended September 30, 2025, it was $2.54, up from $1.29 in 2024 [276]. Cost and Expenses - Cost of goods sold (COGS) for Q3 2025 was $1,644 million, representing 63% of net sales, compared to $1,565 million (67% of net sales) in Q3 2024, driven by higher volumes and lower commodity prices [220]. - COGS for the nine months ended September 30, 2025, was $6,918 million (51% of net sales), down from $7,033 million (54% of net sales) in the same period last year, due to ongoing cost and productivity actions and lower commodity prices [221]. - Research and Development (R&D) expenses were $351 million (13% of net sales) for Q3 2025, slightly up from $348 million (15% of net sales) in Q3 2024, reflecting increased employee compensation costs [222]. - Selling, General and Administrative (SG&A) expenses were $725 million (28% of net sales) for Q3 2025, compared to $671 million (29% of net sales) in Q3 2024, primarily due to increased commissions and variable compensation [223]. - SG&A expenses increased to $2,632 million (20% of net sales) for the nine months ended September 30, 2025, compared to $2,461 million (19% of net sales) for the same period in 2024 [224]. Shareholder Returns - The company returned approximately $1.1 billion to shareholders during the nine months ended September 30, 2025, through share repurchase programs and common stock dividends [211]. - In January 2025, the company authorized a common stock dividend of $0.17 per share, increasing to $0.18 per share in July 2025, reflecting a 5.9% increase [294]. - Corteva, Inc. announced a $3 billion share repurchase program on November 19, 2024, with 3,401,000 shares repurchased for $250 million and 3,681,000 shares for $270 million during the three and nine months ended September 30, 2025, respectively [295]. - The company completed a $2 billion share repurchase program in Q2 2025, repurchasing 7,815,000 shares for $500 million during the nine months ended September 30, 2025 [296]. - For the full year 2025, the company expects approximately $1 billion in share repurchases under the 2024 and 2022 Share Buyback Plans [297]. Segment Performance - Seed segment net sales increased to $917 million for the three months ended September 30, 2025, from $691 million in 2024, and $8,161 million for the nine months ended September 30, 2025, compared to $7,773 million in 2024 [251]. - Segment operating EBITDA for the Seed segment improved to $(193) million for the three months ended September 30, 2025, from $(320) million in 2024, and increased to $2,512 million for the nine months ended September 30, 2025, compared to $2,126 million in 2024 [251]. - Crop Protection net sales were $1,701 million in Q3 2025, a 4% increase from $1,635 million in Q3 2024, driven by a 5% increase in volume and a 1% favorable currency impact [261]. - Segment operating EBITDA for Crop Protection was $279 million in Q3 2025, up 13% from $246 million in Q3 2024, with margin improvement of approximately 135 basis points [263]. - Crop Protection net sales for the first nine months of 2025 were $5,330 million, up 3% from $5,157 million in the same period of 2024, with a 7% increase in volume [264]. Cash Flow and Liquidity - Cash provided by operating activities for continuing operations was $(941) million for the nine months ended September 30, 2025, an improvement from $(1,871) million in the same period of 2024 [290]. - Cash used for investing activities was $(355) million for the nine months ended September 30, 2025, compared to $(466) million in 2024, driven by reduced capital expenditures [292]. - Cash provided by financing activities was $554 million for the nine months ended September 30, 2025, a decrease from $2,137 million in 2024, primarily due to higher borrowings in 2024 [293]. - The company had access to approximately $6.3 billion in unused credit lines as of September 30, 2025, providing support for short-term liquidity needs [280]. - Total debt increased to $4,373 million as of September 30, 2025, from $2,703 million at December 31, 2024, primarily due to the issuance of Senior Notes in May 2025 [278]. Tax and Other Financial Metrics - The effective tax rate for the nine months ended September 30, 2025, was 21.5% on pre-tax income of $2,218 million, compared to 23.1% on pre-tax income of $1,187 million for the same period in 2024 [234][235]. - Significant items after tax for the nine months ended September 30, 2025, resulted in a benefit of $14 million, compared to a charge of $(219) million in the same period of 2024 [272]. - Other income (expense) improved to $(23) million for the three months ended September 30, 2025, compared to $(107) million in 2024, and $95 million for the nine months ended September 30, 2025, versus $(319) million in 2024 [228][229]. - Interest expense decreased to $46 million for the three months ended September 30, 2025, down from $66 million in 2024, and $134 million for the nine months ended September 30, 2025, compared to $173 million in 2024 [231]. Corporate Developments - The company announced its intent to separate its seed and crop protection businesses into two standalone, publicly traded companies, intended to be a tax-free spin-off for U.S. federal income tax purposes [210]. - The company has not reported any material changes to its contractual obligations outside the ordinary course of business since the 2024 Annual Report [304]. - The company is subject to market risk and utilizes financial instruments, with disclosures available in the 2024 Annual Report [305].

Core Insights - Corteva has announced the launch of two new crop protection solutions, Goltrevo and Varpelgo, aimed at combating destructive pests affecting various crops [2][3] Group 1: Product Details - Goltrevo is a bioinsecticide based on a novel strain of the fungus Beauveria bassiana 203, targeting sap-feeding insects like corn leafhoppers, whiteflies, and aphids, as well as chewing insects such as root-feeding worms and caterpillars [3][9] - Varpelgo provides effective control of chewing insects, including diamondback moths and armyworms, and is designed for key crops like soybeans, corn, and rice [5][6] Group 2: Market and Regulatory Aspects - Commercial sales of Goltrevo are expected to begin in 2027 in Latin America, pending regulatory approvals [4] - Varpelgo is anticipated to see its first commercial sales in the early 2030s in Asia Pacific and Latin America, subject to field trials and regulatory reviews [6] Group 3: Strategic Importance - The introduction of these products aligns with Corteva's commitment to innovation in crop protection, enhancing farmer productivity and supporting global food security [3][8] - Both products are designed to fit within integrated pest management programs, offering farmers new rotational choices for pest control [6]

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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]