Question · Q3 2025
Aaron Viswanathan focused on Corteva's strong margin performance, noting the progression from mid-teens to mid-20s company-wide and up to 30% in seeds. He asked if continued margin growth is expected into 2026, what the key drivers would be (price, volume, cost), and if there are any royalty considerations.
Answer
CEO Chuck Magro affirmed that the margin expansion journey is expected to continue, targeting 24% at the midpoint by 2027, with an approximate annual improvement of 100-150 basis points across both seed and crop protection. He identified new products (seed hybrids/varieties and crop protection), high-margin seed out-licensing moving towards royalty neutrality and income, and ongoing cost and productivity initiatives as major drivers. Magro noted that the company is trending better than its $700 million cost/productivity/deflation target for $1 billion EBITDA growth over three years.