Corteva(US:CTVA)2025-11-05 22:13Financial 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].