Corteva(CTVA) - 2025 Q2 - Quarterly Results

Financial Statements Consolidated Statements of Operations 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 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 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 Segment Net Sales 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 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 Operating EBITDA and Organic Sales Reconciliation 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] Price-Volume-Currency Analysis 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 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 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 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] Operating Earnings Per Share (EPS) Reconciliation 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 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 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) |