Financial Data and Key Metrics Changes - Corteva reported top and bottom line growth with over 200 basis points of operating EBITDA margin expansion in Q2 2025 compared to the same period last year [5] - Organic sales increased by 7% year-over-year for the quarter, driven by gains in both seed and crop protection [15] - Operating EBITDA for the quarter grew by 13%, with a margin expansion of 215 basis points compared to the prior year [16] Business Line Data and Key Metrics Changes - The Seed business unit experienced a 32% increase in price and volume gains, contributing significantly to the first half results [16] - Crop Protection saw an 8% increase in volume, with double-digit growth in new products and biologicals [17] - The Seed and Crop Protection units combined delivered over $400 million in productivity and cost benefits, including lower commodity costs and raw material deflation [19] Market Data and Key Metrics Changes - Overall agricultural fundamentals remain mixed, with growing demand for grains and oilseeds, but moderated crop prices and margins [10] - The U.S. is expected to see a record harvest, with corn futures reflecting above-average crop condition ratings [11] - The stocks-to-use ratio for corn is expected to remain below historical averages despite the anticipated large crop [12] Company Strategy and Development Direction - Corteva is focused on investing in growth platforms and delivering top-tier technology to enhance farmer productivity and sustainability [14] - The company raised its full-year operating EBITDA guidance to $3.8 billion, reflecting confidence in continued performance [9] - There is an emphasis on out-licensing opportunities, with a projected $4 billion market potential in corn and soybeans [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit bottom line growth and meaningful margin improvement for the year [9] - The company anticipates low to mid-single-digit pricing headwinds in the Crop Protection segment for the second half of the year [8] - Management remains optimistic about growth in 2026, with expectations for continued strong performance in key markets [13] Other Important Information - Corteva announced a nearly 6% increase in the annual dividend, marking the fifth consecutive annual increase [27] - The company is on track for $1 billion in share repurchases in 2025, reflecting a strong balance sheet and cash flow outlook [27] Q&A Session Summary Question: What factors are influencing the forecast for the back half of the year? - Management acknowledged the tough comparisons in Crop Protection and negative pricing pressures in Brazil, while also highlighting expectations for mid-single-digit acreage increases in Latin America [30][34] Question: Can you elaborate on the free cash flow guidance? - The increase in free cash flow guidance to approximately $1.9 billion is attributed to earnings growth and lower cash taxes from recent legislation [40][41] Question: What are the expectations for share gains in corn and soy? - Management indicated strong performance in both corn and soy, with significant market share gains driven by product performance and licensing opportunities [68][70] Question: How are tariffs affecting the supply chain? - The impact of tariffs has been minimal due to proactive strategies in multisourcing and supply chain management [89] Question: What are the expectations for Crop Protection pricing? - Management expects low single-digit pricing declines in Crop Protection, particularly in Brazil, but sees signs of stabilization and potential improvement in 2026 [82][83]

Financial Performance - Q2 2025 - Net sales increased by 6% to $6.456 billion compared to $6.112 billion in 2Q 2024[35] - Operating EBITDA increased by 13% to $2.164 billion with an Operating EBITDA margin of 33.5%, a 215 bps increase[35] - Operating EPS increased by 20% to $2.20[35] Financial Performance - 1H 2025 - Net sales increased by 3% to $10.873 billion compared to $10.604 billion in 1H 2024[20, 94] - Operating EBITDA increased by 14% to $3.353 billion with an Operating EBITDA margin of 30.8%, a 301 bps increase[20, 92] Segment Performance - Seed - Seed net sales for 2Q 2025 increased by 5% to $4.537 billion[38] - Seed Operating EBITDA margin for 2Q 2025 was 41.1%, an increase of 186 bps[38] - Seed net sales for 1H 2025 increased by 2% to $7.244 billion[50] - Seed Operating EBITDA margin for 1H 2025 was 37.3%, an increase of 280 bps[50] Segment Performance - Crop Protection - Crop Protection net sales for 2Q 2025 increased by 8% to $1.919 billion[60] - Crop Protection Operating EBITDA margin for 2Q 2025 was 17.4%, an increase of 309 bps[60] - Crop Protection net sales for 1H 2025 increased by 3% to $3.629 billion[69] - Crop Protection Operating EBITDA margin for 1H 2025 was 19.6%, an increase of 355 bps[69] FY 2025 Guidance - Revised Operating EBITDA guidance to $3.75 - $3.85 billion, a 13% increase at the mid-point[27] - Expecting ~150 bps improvement in Operating EBITDA margin[12, 27] - Operating EPS guidance revised to $3.00 - $3.20, a 21% increase at the mid-point[27] - Free Cash Flow Conversion expected to be ~50%[27]

Core Insights - Corteva reported strong Q2 2025 earnings, exceeding analyst expectations with a Non-GAAP EPS of $2.20 and GAAP revenue of $6.46 billion, reflecting significant year-over-year growth [1][2] - The company raised its full-year 2025 financial outlook, driven by solid performance in both Seed and Crop Protection segments [1][11] Financial Performance - Non-GAAP EPS was $2.20, surpassing the consensus estimate of $1.89 [2] - GAAP revenue reached $6.46 billion, exceeding the estimate of $6.27 billion and marking a 5.7% increase from Q2 2024 [2] - Seed net sales were $4.54 billion, a 4.8% increase year-over-year, while Crop Protection net sales rose to $1.92 billion, up 8.0% [2][5][6] Business Segments - The Seed segment's growth was driven by higher volumes and prices, particularly in North America, where corn seed sales increased by 5% [5][7] - Crop Protection sales volume increased by 11%, although pricing decreased by 2%, primarily due to market pressures in Latin America [6][12] Regional Performance - North America was the largest contributor, with seed sales of $3.95 billion and Crop Protection sales of $675 million [7] - EMEA saw an 11% increase in net sales, while Asia Pacific achieved a 5% rise [7] Strategic Focus and Innovation - Corteva emphasized innovation, planning approximately 500 new product launches for 2025, including nearly 300 new seed hybrids [8][9] - The company is also focusing on supply chain improvements and cost productivity benefits [9][10] Future Outlook - The revised full-year 2025 guidance includes net sales of $17.6 billion to $17.8 billion and operating EBITDA (non-GAAP) of $3.75 billion to $3.85 billion [11] - Management highlighted strong demand for corn and ongoing expansion efforts for hybrid wheat and biological crop protection solutions [11]

Core Insights - Corteva, Inc. reported revenue of $6.46 billion for the quarter ended June 2025, marking a year-over-year increase of 5.6% and exceeding the Zacks Consensus Estimate by 3.36% [1] - The company's EPS for the same period was $2.20, up from $1.83 a year ago, representing a surprise of 16.4% over the consensus estimate of $1.89 [1] Revenue Breakdown - Seed revenue reached $4.54 billion, surpassing the estimated $4.46 billion, with a year-over-year increase of 4.8% [4] - Crop Protection revenue was $1.92 billion, exceeding the $1.8 billion estimate, reflecting a 7.8% year-over-year increase [4] - Crop Protection - Other revenue was $49 million, significantly below the $88.17 million estimate, showing a decline of 71.2% year-over-year [4] - Seed - Other revenue was $133 million, lower than the estimated $168.43 million, representing an 8.3% decrease year-over-year [4] - Crop Protection - Herbicides revenue was $995 million, above the $951.43 million estimate, with a year-over-year increase of 5.2% [4] - Crop Protection - Insecticides revenue was $436 million, exceeding the $413.11 million estimate, reflecting a 5.1% year-over-year increase [4] - Crop Protection - Fungicides revenue was $342 million, surpassing the estimated $261.53 million, with a significant year-over-year increase of 36.8% [4] - Seed - Soybean revenue was $1.26 billion, slightly below the estimated $1.31 billion, showing a decline of 4.6% year-over-year [4] - Seed - Corn revenue was $2.96 billion, exceeding the estimated $2.74 billion, with a year-over-year increase of 10.4% [4] - Seed - Other oilseeds revenue was $186 million, below the estimated $218.94 million, with no change year-over-year [4] Operating Performance - Operating EBITDA for Seed was $1.86 billion, above the average estimate of $1.77 billion [4] - Operating EBITDA for Corporate was reported at -$33 million, slightly worse than the estimated -$32.4 million [4] Stock Performance - Corteva, Inc. shares have returned -5.4% over the past month, compared to a +0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Corteva, Inc. reported quarterly earnings of $2.2 per share, exceeding the Zacks Consensus Estimate of $1.89 per share, and up from $1.83 per share a year ago, representing an earnings surprise of +16.40% [1] - The company posted revenues of $6.46 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.36%, compared to $6.11 billion in the same quarter last year [2] - Over the last four quarters, Corteva has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Group 2: Stock Performance and Outlook - Corteva shares have increased approximately 27% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at -$0.39 on $2.43 billion in revenues for the upcoming quarter and $3.00 on $17.31 billion in revenues for the current fiscal year [4][7] Group 3: Industry Context - The Agriculture - Operations industry, to which Corteva belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges ahead [8] - Alico, another company in the same industry, is expected to report a quarterly loss of $1.09 per share, reflecting a year-over-year change of -303.7%, with revenues anticipated to be $8.9 million, down 34.6% from the previous year [9][10]

Financial Performance - For Q2 2025, net sales reached $6.46 billion, a 6% increase compared to Q2 2024, with organic sales up 7% [11][8] - GAAP income from continuing operations was $1.38 billion, translating to an EPS of $2.02, while operating EBITDA was $2.16 billion, reflecting a 13% increase year-over-year [10][2] - For the first half of 2025, net sales totaled $10.87 billion, a 3% increase from the same period in 2024, with organic sales up 5% [7][2] Segment Performance - Seed segment net sales for Q2 2025 were $4.54 billion, up from $4.33 billion in Q2 2024, driven by a 3% increase in volume and a 3% increase in price [12][17] - Crop Protection segment net sales were approximately $1.92 billion in Q2 2025, reflecting an 11% increase in volume, although offset by a 2% price decline [20][21] - For the first half of 2025, Crop Protection net sales were approximately $3.63 billion, an 8% volume increase compared to the same period in 2024 [24][25] Market Outlook and Guidance - The company raised its full-year 2025 guidance, expecting net sales between $17.6 billion and $17.8 billion, with operating EBITDA projected at $3.75 billion to $3.85 billion [30][8] - The outlook for the Crop Protection market remains stable, with expectations of double-digit volume gains despite low-single-digit pricing headwinds [28][29] - Global corn area is projected to increase by 5% in North America, driven by favorable economics compared to other crops [27][8] Strategic Initiatives - The company plans to repurchase approximately $1 billion of shares during 2025, reflecting strong cash flow and balance sheet [6][30] - Continued focus on cost discipline and operational excellence has led to margin expansion and improved profitability [5][6] - The company emphasizes the importance of top-tier seed and crop protection technologies to meet global demand for grain and oilseeds [27][8]

Group 1 - Corteva, Inc. has shown strong performance in the Consumer Staples sector, returning approximately 26.3% year-to-date, significantly outperforming the sector average of 2.7% [4] - The Zacks Rank for Corteva, Inc. is currently 2 (Buy), indicating a positive earnings outlook with a 0.9% increase in the consensus estimate for full-year earnings over the past quarter [3] - Corteva, Inc. belongs to the Agriculture - Operations industry, which has an average gain of 9.9% this year, further highlighting its strong performance relative to its industry [5] Group 2 - The Consumer Staples sector, which includes 178 individual stocks, is ranked 14 in the Zacks Sector Rank, reflecting the overall strength of the group [2] - Another notable stock in the Consumer Staples sector is New York Times Co., which has also outperformed the sector with a year-to-date increase of 3.3% [4][6] - The Agriculture - Operations industry, where Corteva operates, currently ranks 191 in the Zacks Industry Rank, indicating a relatively lower position compared to other industries [5]

Core Viewpoint - Investors are evaluating FMC and Corteva, Inc. to determine which stock represents a better undervalued investment opportunity in the Agriculture - Operations sector [1] Valuation Metrics - FMC has a forward P/E ratio of 11.66, while Corteva has a forward P/E of 24.03, indicating FMC is more attractively valued [5] - FMC's PEG ratio is 1.26, compared to Corteva's PEG ratio of 1.74, suggesting FMC's expected earnings growth is more favorable [5] - FMC's P/B ratio is 1.1, while Corteva's P/B ratio is 2.01, further highlighting FMC's superior valuation metrics [6] Analyst Outlook - FMC holds a Zacks Rank of 2 (Buy), indicating stronger earnings estimate revision activity, while Corteva has a Zacks Rank of 3 (Hold) [3] - The stronger estimate revision activity for FMC suggests a more positive analyst outlook compared to Corteva [7] Value Grades - FMC has a Value grade of B, while Corteva has a Value grade of D, reflecting FMC's more attractive valuation metrics [6]

Core Viewpoint - Analysts forecast that Corteva, Inc. (CTVA) will report quarterly earnings of $1.89 per share, reflecting a year-over-year increase of 3.3%, with anticipated revenues of $6.23 billion, showing a 1.9% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 3.1% in the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Forecasts - Analysts predict 'Revenue- Seed' at $4.46 billion, a change of +3.1% year-over-year [5]. - 'Revenue- Crop Protection' is expected to be $1.80 billion, reflecting a +1% change from the prior year [5]. - 'Revenue- Crop Protection- Other' is forecasted to reach $88.17 million, indicating a significant decline of -48.1% year-over-year [5]. - 'Revenue- Seed- Other' is estimated at $168.43 million, showing a +16.2% increase from the previous year [6]. - 'Revenue- Crop Protection- Herbicides' is projected at $951.43 million, a slight increase of +0.6% [6]. - 'Revenue- Crop Protection- Insecticides' is expected to be $413.11 million, reflecting a -0.5% change [7]. - 'Revenue- Crop Protection- Fungicides' is forecasted at $261.53 million, indicating a +4.6% change [7]. - 'Revenue- Seed- Soybean' is estimated at $1.31 billion, showing a -0.4% change [7]. - 'Revenue- Seed- Corn' is projected at $2.74 billion, reflecting a +2% change [8]. - 'Revenue- Seed- Other oilseeds' is expected to reach $218.94 million, indicating a +17.7% change [8]. Operating Metrics - 'Operating EBITDA- Seed' is expected to be $1.77 billion, compared to $1.70 billion from the previous year [8]. - 'Operating EBITDA- Crop Protection' is projected at $249.65 million, down from $255.00 million reported in the same quarter last year [9]. Stock Performance - Corteva, Inc. shares have decreased by -6.5% in the past month, contrasting with the Zacks S&P 500 composite's +2.3% performance [10].

Core Viewpoint - Corteva, Inc. has announced a common stock dividend of $0.18 per share, marking an annual increase of nearly 6% over the previous quarterly dividend, payable on September 15, 2025 [1][2] Group 1: Dividend Announcement - The dividend of $0.18 per share is authorized by Corteva's Board of Directors and will be paid to shareholders of record on September 2, 2025 [1] - This marks Corteva's fifth dividend increase since its 2019 spin-off, reflecting the company's commitment to returning capital to shareholders [2] Group 2: Company Strategy and Performance - Corteva focuses on margin expansion and sustainable long-term growth through innovation, customer engagement, and disciplined operational execution [2] - The company aims to address pressing agricultural challenges with a balanced mix of seed, crop protection, and digital products and services [4] - Corteva's unique distribution strategy and recognized brands contribute to its market preference and growth potential [4]