Group 1 - Corteva, Inc. reported mixed fourth-quarter results, with adjusted earnings of 32 cents per share, exceeding market estimates of 31 cents per share, while quarterly sales were $3.978 billion, falling short of estimates of $4.008 billion [1][2] - The CEO highlighted that despite challenging market conditions, Corteva generated strong cash from operations and achieved record results in the fourth quarter [2] - For FY25, Corteva projects operating earnings between $2.70 to $2.95 per share and net sales ranging from $17.2 billion to $17.6 billion [2] Group 2 - Following the earnings announcement, analysts adjusted their price targets for Corteva, with Keybanc raising it from $68 to $70, Oppenheimer from $70 to $72, and RBC Capital from $72 to $73 [3][4] - Corteva shares experienced a slight increase of 0.1%, trading at $62.42 [2]

Financial Data and Key Metrics Changes - In Q4 2024, organic sales increased by 13% year-over-year, with seed sales up 16% and crop protection up 11% [37] - Operating EBITDA for the full year 2024 was approximately $3.4 billion, essentially flat compared to the prior year, with an operating EBITDA margin of 20%, which is more than 30 basis points higher [41][44] - Free cash flow improved by almost $500 million in 2024, totaling about $1.7 billion, representing a 50% conversion rate on EBITDA [16][63] Business Line Data and Key Metrics Changes - The seed business maintained strong performance, with Pioneer ranked as the number one corn and soybean brand in the US, gaining corn market share despite a reduction in planted area [14] - Crop protection saw double-digit organic sales growth and an 800 basis points margin improvement in Q4, largely driven by demand in Brazil [13][62] - Enlist E3 soybeans reached 65% market penetration, with sales of the Enlist system, including herbicide offerings, totaling $1.9 billion in 2024 [15] Market Data and Key Metrics Changes - Global consumption of corn and soybeans reached record levels, with strong production contributing to improved farmer margins in key markets like the US and Brazil [19][20] - The corn market is currently tight, with the stocks-to-use ratio being the tightest in over a decade, excluding China [21] - The crop protection industry is showing signs of stabilization, with channel inventory levels becoming more balanced globally [22] Company Strategy and Development Direction - The company aims for sustained value creation through a financial framework targeting $1 billion in incremental net revenues from 2025 to 2027, focusing on increased out-licensing income, ramp-up of crop protection products, and biological growth [33][36] - The strategy includes a commitment to productivity and cost improvement initiatives, with a goal of achieving $1 billion in gross productivity, cost, and deflation benefits across seed and crop protection [34] - The company plans to launch 300 new seed hybrids and varieties, emphasizing a price-for-value strategy to enhance yields [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2025 outlook, expecting another year of top and bottom-line growth with meaningful margin expansion despite currency headwinds [25][54] - The operational plan remains intact, with expectations of mid-single-digit organic sales growth in crop protection and continued strong demand for seed technology [31][50] - Management highlighted the importance of farmer margins improving due to strong production and demand, which is expected to drive increased planted areas, particularly for corn [27][71] Other Important Information - The company returned approximately $1.5 billion to shareholders in 2024 through dividends and share repurchases, with a commitment to another $1 billion in share repurchases in 2025 [17] - The company is facing currency headwinds primarily from the Brazilian real and Canadian dollar, which are expected to impact reported results [24][54] Q&A Session Summary Question: How should we think about potential positives evolving into the season versus FX risks? - Management noted that market fundamentals have turned more positive, with expectations for good demand in 2025, particularly for corn and soybeans, and improving farmer margins [71] Question: Can you comment on production costs in crop protection and seed? - Management indicated that crop protection costs were lower than expected due to structural improvements, while seed costs were higher due to previous high-cost inventory that needed to be cleared [78][82] Question: What is the expected cadence of earnings growth across the year? - Management expects slight growth in the first half of 2025 compared to the first half of 2024, with better performance anticipated in the second half [91][95] Question: What drove the significant increase in crop protection EBITDA margins? - The increase was attributed to strong performance in Brazil, new product sales, and cost reductions, with a record quarter for the crop protection business [97][100] Question: Why was the top end of the guidance cut by $200 million? - The reduction was primarily due to currency impacts, with a stronger US dollar affecting the guidance, while the lower end remained unchanged to account for potential risks [104][110] Question: Is there a possibility of separating crop protection from seeds to enhance equity value? - Management stated that while nothing is off the table, the integrated approach of offering both seeds and crop protection provides significant synergies and value to farmers [113][115] Question: What is the outlook for dicamba and its impact on the 2025 plan? - Management confirmed that no upside from dicamba is built into the 2025 plan, but the order book for E3 soybeans is healthy [120][122] Question: Will just-in-time purchasing behavior continue? - Management indicated that this behavior is likely to persist due to economic conditions, and the company is prepared for it moving forward [126] Question: What is driving competitive pressure in seed pricing in Latin America? - Management noted that competitive markets and previous high-cost inventory were factors, but they expect pricing to improve in 2025 with better technology and increased safrinha acres [128][130]

4Q 2024 Earnings Conference Call February 6, 2025 Safe Harbor Regarding Forward-Looking Statements Forward-Looking Statements This presentation contains certain estimates and forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and ...

Financial Performance - Corteva, Inc. reported quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.34 per share, but showing an increase from $0.15 per share a year ago, representing an earnings surprise of -5.88% [1] - The company posted revenues of $3.98 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.80% and increasing from $3.71 billion year-over-year [2] Market Performance - Corteva, Inc. shares have increased approximately 15.3% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.04 on revenues of $4.54 billion, and for the current fiscal year, it is $3.21 on revenues of $17.25 billion [7] - The estimate revisions trend for Corteva, Inc. is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Agriculture - Operations industry, to which Corteva belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Performance - Net sales for Q4 2024 reached $3,978 million, a 7.3% increase from $3,707 million in Q4 2023[2] - Net income attributable to Corteva for the twelve months ended December 31, 2024, was $907 million, compared to a loss of $253 million in the previous year[2] - Basic earnings per share from continuing operations for Q4 2024 was $(0.08), an improvement from $(0.33) in Q4 2023[2] - For the full year 2024, Net Sales totaled $16,908 million, with Organic Sales at $17,398 million, reflecting a 3% increase year-over-year[10] - Income from continuing operations before income taxes for Q4 2024 was $88 million, compared to a loss of $323 million in Q4 2023, representing a significant improvement[45] Sales and Revenue - Net Sales for Q4 2024 reached $3,978 million, a 7% increase compared to Q4 2023, with Organic Sales at $4,194 million, reflecting a 13% growth[10] - Corteva's net sales in North America for seeds increased to $639 million in Q4 2024 from $576 million in Q4 2023[8] - The Crop Protection segment saw a 6% increase in Net Sales to $134 million in Q4 2024, with Organic Sales growing by 11%[16] - North America contributed $66 million to Net Sales in Q4 2024, representing a 4% increase, while EMEA experienced a 21% increase with $77 million in sales[14] - Total crop protection net sales decreased by $391 million, a 5% decline, with herbicides down $435 million, an 11% decline[26] Expenses and Costs - Research and development expenses for Q4 2024 were $365 million, slightly up from $357 million in Q4 2023[2] - Corporate Expenses for Q4 2024 were $29 million, slightly higher than $26 million in Q4 2023, indicating a controlled increase in overhead costs[10] - The company reported significant items totaling a pre-tax loss of $315 million for the year, with crop protection segment losses at $175 million[29] - Restructuring and asset-related charges for the year amounted to $315 million, impacting earnings per share by $0.50[29] Cash Flow and Assets - Cash provided by operating activities for the twelve months ended December 31, 2024, was $2,145 million, up from $1,769 million in 2023[6] - The company reported a significant increase in cash and cash equivalents, rising to $3,422 million in 2024 from $3,158 million in 2023[6] - Total assets decreased to $40,825 million in 2024 from $42,996 million in 2023[4] - Free Cash Flow for the twelve months ended December 31, 2024, was $1,699 million, an increase of 39.9% from $1,214 million in 2023[52] Taxation - The effective income tax rate (GAAP) for Q4 2024 was 156.8%, compared to 28.5% in Q4 2023, indicating a substantial increase[45] - The base income tax rate from continuing operations (Non-GAAP) for the twelve months ended December 31, 2024, was 22.8%, up from 20.3% in 2023[45] - The company recognized a $(120) million tax charge in the fourth quarter 2024 related to a valuation allowance against net deferred tax assets in Brazil[35] Future Outlook - Future outlook remains positive with expectations of continued growth in both Seed and Crop Protection segments, supported by ongoing product innovation and market expansion strategies[10] - Future guidance indicates a cautious outlook due to ongoing market challenges and restructuring efforts, with expectations for gradual recovery in sales[30] Regional Performance - Latin America showed a $16 million decrease in crop protection sales, a 1% decline, but saw a 6% increase in seed sales, up $132 million[23] - The Asia Pacific region reported a $22 million increase in crop protection sales, a 2% growth, and a 5% increase in seed sales, up $43 million[23]

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].