Corteva (NYSE:CTVA) 2026 Conference February 25, 2026 09:00 AM ET Company ParticipantsBert Frost - EVP and Chief Commercial OfficerChuck Magro - CEODavid Johnson - EVP and CFOMartin Jurasik - VP of Treasury and Investor RelationsConference Call ParticipantsNone - AnalystNone - AnalystNone - AnalystNoneWelcome back, everyone. Delighted to have both the CEO and CFO, Chuck Magro and David Johnson from Corteva, with us this morning. I'm gonna let Chuck and David make some comments, but in general, you know, it' ...

About FMC PHILADELPHIA, Feb. 23, 2026 /PRNewswire/ -- FMC Corporation (NYSE: FMC) announced that the Herbicide Resistance Action Committee (HRAC) has classified rimisoxafen as a dual mode of action herbicide, designated under HRAC Groups 12 and 32. This is the first dual mode of action classification in HRAC's history, a significant milestone for the global crop protection industry and validation of FMC's innovative approach to combating herbicide-resistant weeds. The unprecedented classification recognizes ...

Financial Data and Key Metrics Changes - In Q4 2025, the company reported sales of $1.08 billion, an 11% decline year-over-year, or a 5% decline on a like-for-like basis excluding India [17][18] - Adjusted EBITDA for Q4 was $280 million, a 17% decline compared to the prior year quarter, down 8% on a like-for-like basis excluding India [18] - Adjusted earnings per share for the quarter was $1.20, reflecting a 33% decline due to lower adjusted EBITDA and higher interest [18] - Free cash flow for Q4 was $623 million, with GAAP cash from operations of $657 million, up $230 million from the prior year [18][19] - The company ended 2025 with net debt of approximately $3.5 billion, down over $550 million from the third quarter [19] Business Line Data and Key Metrics Changes - Sales of the core product portfolio, excluding Rynaxypyr, were approximately $2.2 billion in 2025, with nearly $1 billion from high-cost facilities [9] - Rynaxypyr sales were just over $800 million in 2025, with expectations for generic offerings to begin in 2026 [10] - Sales of new active ingredients increased from approximately $130 million in 2024 to approximately $200 million in 2025, but fell short of the $250 million expectation [11] Market Data and Key Metrics Changes - The company anticipates a 5% decline in full-year sales for 2026, with price expected to be a mid-single-digit headwind driven by Rynaxypyr [12] - The removal of India is expected to represent a 2% full-year headwind, impacting only the first half of 2026 [12] - The company expects modest volume growth in 2026, driven by new actives and branded Rynaxypyr [12] Company Strategy and Development Direction - The company is focused on strengthening its balance sheet, targeting over $1 billion in debt reduction through asset sales and licensing agreements [8] - A formal strategic review process has been initiated to explore options, including a potential sale of the company [6][7] - The company aims to improve the competitiveness of its off-patent portfolio and drive growth of new active ingredients [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenging market conditions, including intense competition from generics and weaker grower margins affecting product mix [17] - The company expects 2026 to be a bottom for performance, with growth anticipated starting in 2027 [62] - Management expressed confidence in the growth portfolio and the ability to stabilize the core portfolio by addressing manufacturing costs [56][62] Other Important Information - The company has retained financial and legal advisors to assist with the strategic review process [8] - The strategic review does not impact the ongoing process to sell the India commercial business, with binding bids expected in the second quarter [8] Q&A Session Summary Question: Can you help us understand the contributions from different product groups to the $700 million EBITDA target? - Management indicated that they do not break out profitability by product line but noted that the core portfolio is a significant contributor to profitability [29][30] Question: What gives you confidence in achieving mid-teens EBITDA growth in 2027 and 2028? - Management highlighted confidence in the growth portfolio and the need to improve the competitiveness of the core portfolio [34][36] Question: Can you clarify the strategic review process and potential outcomes? - Management explained that the strategic review is separate from the base operating plan, which includes debt reduction and improving competitiveness [42][43] Question: How confident are you in understanding the challenges facing the company? - Management acknowledged the challenges in the core portfolio outside of Rynaxypyr and expressed confidence in the ongoing restructuring efforts [55][56] Question: Why initiate a sale process now rather than waiting for restructuring results? - Management stated that both paths are valid and could benefit shareholders, emphasizing the importance of exploring all options [62][63] Question: Can you provide an update on upcoming debt maturities and plans? - Management confirmed plans to refinance $500 million in bonds maturing in October and emphasized a focus on reducing total debt [65][66] Question: What factors contributed to the shortfall in new product revenue? - Management attributed the shortfall to registration delays and lower-than-expected direct sales in Brazil [70][71]

Safe Harbor Statement Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements made in this presentation are forward- looking statements that are based on our current views and assumptions regarding future events, future business conditions and the outlook for our company based on currently available information. In some cases, you can identify these forward-looking statements by such words or phrases as "outlook", "will likely result," "is confident that," "expec ...

Core Insights - FMC Corporation announced its 2026 operational priorities, focusing on strengthening its balance sheet and exploring strategic options to enhance shareholder value [2][3][5] Financial Performance - For the fourth quarter of 2025, FMC reported revenue of $1.08 billion, a decline of 12% compared to the fourth quarter of 2024, with a 6% price decline primarily due to Rynaxypyr® [13][14] - The full year 2025 revenue was $3.47 billion, an 18% decrease from 2024, driven by a 6% price decline and competitive pressures [16][17] - Adjusted EBITDA for 2025 was $843 million, down 7% year-over-year, with favorable costs offset by price declines and the removal of India sales [18] 2026 Outlook - FMC's revenue guidance for 2026 is projected between $3.60 billion and $3.80 billion, reflecting a 5% decline at the midpoint compared to the previous year [6] - Adjusted EBITDA for 2026 is expected to be between $670 million and $730 million, a 17% decrease from the prior year [7] - Adjusted EPS for 2026 is forecasted to be between $1.63 and $1.89, a decrease of 41% compared to the previous year [7] Strategic Initiatives - The company plans to pay down $1 billion in debt through asset sales and licensing agreements, including the sale of its India commercial business [3][4] - FMC aims to improve the competitiveness of its core portfolio and manage the post-patent transition for Rynaxypyr® while advancing the commercialization of new active ingredients [3][4] Market Dynamics - The anticipated decline in revenue is attributed to lower prices and reduced orders from diamide partners, with India representing a 2% headwind [6] - Sales of new active ingredients are expected to grow significantly, projected between $300 million and $400 million, marking over 75% growth at the midpoint compared to the previous year [6]

Financial Performance - For Q4 2025, Corteva reported net sales of $3.91 billion, a decrease of 2% compared to Q4 2024, with organic sales down 4% [2][8] - Full-year 2025 net sales reached $17.40 billion, an increase of 3% from FY 2024, with organic sales up 4% [2][12] - GAAP income from continuing operations for Q4 2025 was $1.20 billion, with an EPS of $1.75, reflecting a 43% increase compared to FY 2024 [2][12] - Operating EBITDA for Q4 2025 was $446 million, down 15% year-over-year, while full-year operating EBITDA was $3.85 billion, up 14% from the previous year [2][19] Segment Performance - Seed segment net sales for Q4 2025 were $1.74 billion, down from $1.77 billion in Q4 2024, primarily due to an 8% decrease in volume [14][15] - Crop Protection segment net sales for Q4 2025 were approximately $2.17 billion, a decrease from $2.21 billion in Q4 2024, driven by a 2% decrease in volume and a 1% price decline [22][23] - For the full year 2025, Crop Protection net sales were approximately $7.50 billion, an increase of 2% from FY 2024, with a 5% increase in volume [22][28] Cash Flow and Shareholder Returns - Cash provided by operating activities for continuing operations was $3.5 billion, a 51% increase compared to the prior year, with free cash flow improving by 69% to $2.9 billion [5][12] - The company returned over $1.5 billion to shareholders, reflecting strong cash generation [5][12] Future Guidance - Corteva expects operating EBITDA for FY 2026 to be between $4.0 billion and $4.2 billion, indicating a growth of 7% at the midpoint [30] - Operating EPS for FY 2026 is projected to be between $3.45 and $3.70 per share, also reflecting a growth of 7% at the midpoint [30] Strategic Updates - The company is on track to complete its planned separation in the second half of 2026, with key milestones expected in the first half of 2026 [11][6] - A resolution with Bayer is anticipated to enhance Corteva's freedom to operate and out-licensing flexibility, supporting its strategic objective of achieving a $1 billion net royalty income position by 2035 [11][6]

Company Overview - FMC reported a total revenue of $3.61 billion and a net income of -$531.8 million for the trailing twelve months (TTM) [5] - The company's dividend yield stands at 11.4%, with the share price as of January 22 being $16.02 [5] Recent Transaction - On January 22, tru Independence sold all 152,855 shares of FMC, resulting in a complete exit from the position, with a decrease in position value of $5.14 million [2][3][7] - FMC previously represented 1.3% of tru Independence's assets under management (AUM) [4][7] Performance Analysis - FMC's share price has decreased by 69.0% over the past year, significantly underperforming the S&P 500, which gained approximately 14% in the same period [4] - The company's third-quarter results showed a 49% year-over-year revenue decline, primarily due to the India business being held for sale, while adjusted EBITDA increased by 17% to $236 million due to cost controls [11] Strategic Focus - FMC is focusing on cost management by exiting high-cost manufacturing and resizing operations in Asia following the divestiture of its India business [12] - The company aims to prioritize balance sheet repair over income, as indicated by a dividend cut to $0.08 per share and a free cash flow outlook that is expected to hover around breakeven [12] Market Position - FMC specializes in crop protection chemicals and agricultural inputs, serving commercial farmers and agricultural businesses globally [9][10] - The company combines a diverse product portfolio with a broad geographic reach, focusing on research-driven innovation and strategic distribution to enhance crop yields and promote sustainable farming practices [10]

Core Insights - Corteva Agriscience has launched Telbek™ PRO, an innovative fungicide designed to provide unprecedented protection against Fusarium head blight and late-season leaf diseases for Canadian wheat growers [1][3] Product Details - Telbek™ PRO utilizes Adavelt™ active and features dual modes of action, Group 3 and Group 21, which help delay resistance development while effectively controlling Fusarium head blight and other diseases such as Septoria, leaf and stripe rust, tan spot, and glume blotch [2] - Early field trials indicate that Telbek™ PRO enhances yield stability and results in cleaner grain, marking a significant advancement in fungicide technology for Canadian cereal growers [3] Market Availability - Telbek™ PRO is now available through Corteva representatives across Canada, ready for the 2026 planting season [4] Company Overview - Corteva, Inc. is a global pure-play agriculture company focused on delivering innovative solutions to address pressing agricultural challenges, with a diverse mix of seed, crop protection, and digital products [4]

Core Insights - Corteva Inc. has entered a multi-million-dollar joint venture with Hexagon Bio to develop new crop protection solutions inspired by nature [1][2] - The partnership aims to combine Corteva's billion-dollar nature-inspired crop protection franchises with Hexagon Bio's natural product discovery platform, utilizing microbial genetics, AI, chemistry, and synthetic biology [2] - The collaboration is expected to enhance Corteva's crop protection innovation and meet the growing demand for sustainable agricultural solutions [3] Company Overview - Corteva, Inc. is a global pure-play agriculture company that offers innovative seed, crop protection products, and digital solutions to enhance productivity and sustainability in farming [4] - The company's innovations include nitrogen stabilizers, phosphorus-unlocking microbes, and nutrient-guidance platforms, which help improve yields and soil health while reducing fertilizer use [4] Market Analysis - Citi analyst Patrick Cunningham has reaffirmed a Hold rating on Corteva with a price target of $70, while Jefferies has reiterated a Buy rating with a price target of $85 [3] - The positive outlook from analysts follows the European Union's provisional agreement on new genomic techniques, which is expected to accelerate product launches significantly [3]

Core Insights - ADAMA Ltd. and BASF have entered a strategic co-development and commercialization agreement for the fungicide active ingredient Gilboa, aimed at providing new disease management solutions for European cereal growers [1][2][3] Group 1: Partnership Details - The collaboration will leverage ADAMA's innovation and formulation expertise alongside BASF's development capabilities and market access, ensuring faster delivery of next-generation solutions to farmers [2][5] - Each company will independently manage its own concepts, pricing, sales, and market strategies [2] Group 2: Product Development and Launch Timeline - Pending product registration approvals, Gilboa-based formulations for wheat are expected to launch in Great Britain in 2027, followed by broader European launches in 2029 [5] Group 3: Market Context and Need - European farmers are facing increasing regulatory pressures and the phase-out of existing active ingredients, creating a demand for effective and reliable crop protection tools [3] - Gilboa offers a novel mode of action for cereals, classified under FRAC Group 32, and is designed to provide broad-spectrum, long-lasting disease control solutions [3] Group 4: Company Profiles - ADAMA Ltd. is recognized as a global leader in crop protection, focusing on innovative and sustainable solutions to address challenges faced by farmers [6] - BASF Agricultural Solutions emphasizes sustainability and invests significantly in R&D, with a reported sales figure of €9.8 billion in 2024 [8]