Executive Summary

Q2 2025 delivered broad-based strength: Net sales $6.46B (+6% YoY), GAAP diluted EPS from continuing operations $2.02, and Operating EPS (non-GAAP) $2.20, driven by 6% volume growth and 1% price uplift with notable Seed and Crop Protection contributions .
Versus Wall Street consensus (S&P Global), Corteva posted beats on revenue ($6.46B vs. $6.27B*) and Operating EPS ($2.20 vs. $1.88*), and beat on EBITDA ($2.16B vs. $2.01B*). Q1 2025 saw an EPS and EBITDA beat with a modest revenue miss; Q4 2024 was near in-line on revenue/EPS with a softer EBITDA (S&P definition)*.
Management raised full-year 2025 guidance: net sales to $17.6–$17.8B, Operating EBITDA to $3.75–$3.85B, and Operating EPS to $3.00–$3.20, citing record 1H performance, controllable cost actions, and favorable setup in Latin America .
Additional catalysts: increased free cash flow guidance to ~$1.9B (~50% conversion) , authorized ~$1.0B 2025 buybacks , and lifted the quarterly dividend to $0.18 (+~6%) .

What Went Well and What Went Wrong

What Went Well

Operating margin expansion: Q2 Operating EBITDA rose 13% YoY to $2.16B with ~215 bps margin improvement, reflecting price execution, mix, and productivity .
Seed strength: Q2 Seed net sales $4.54B (+5% YoY) and Operating EBITDA $1.86B (+10% YoY), powered by North America corn acreage, share gains, price for value strategy, and reduced net royalties . “Farmers’ drive to get the most out of every acre led to higher demand…resulted in impressive margin expansion” — Chuck Magro, CEO .
Crop Protection acceleration: Q2 CP net sales $1.92B (+8% YoY) with Operating EBITDA up 31% to $334M; volume +11% led by Latin America new products, fungicides, spinosyns, and biologicals; raw material deflation and productivity helped offset price pressure .

What Went Wrong

Pricing headwinds in LatAm: Crop Protection price declined 2% in Q2, with competitive pricing in Brazil expected to persist into H2 (low-to-mid single-digit declines) .
FX drag and exchange losses: Company flagged larger FY currency headwind (~$275MM) and noted Q2 net after-tax exchange loss of $(36)MM; Brazilian real sensitivity weighted to H2 .
Timing/mix friction points: Argentina’s just-in-time seed purchases and portfolio gaps delayed Seed sales to H2; management expects gradual portfolio improvement over the next 1–2 years .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Billions)	$3.978	$4.417	$6.456
GAAP Diluted EPS – Continuing Ops ($)	$(0.08)	$0.97	$2.02
Operating EPS (Non-GAAP) ($)	$0.32	$1.13	$2.20
Operating EBITDA ($USD Billions)	$0.525	$1.189	$2.164

Segment	Q4 2024	Q1 2025	Q2 2025
Seed Net Sales ($USD Billions)	$1.772	$2.707	$4.537
Seed Operating EBITDA ($USD Billions)	$0.093	$0.842	$1.863
Crop Protection Net Sales ($USD Billions)	$2.206	$1.710	$1.919
Crop Protection Operating EBITDA ($USD Billions)	$0.461	$0.377	$0.334

Price/Volume/Currency Drivers (Total Company)	Q4 2024	Q1 2025	Q2 2025
Organic Sales Change (%)	13%	3%	7%
Price & Product Mix (%)	(4%)	1%	1%
Volume (%)	17%	2%	6%
Currency (%)	(6%)	(5%)	(1%)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY 2025	$17.2–$17.6B	$17.6–$17.8B	Raised
Operating EBITDA	FY 2025	$3.6–$3.8B	$3.75–$3.85B	Raised
Operating EPS	FY 2025	$2.70–$2.95	$3.00–$3.20	Raised
Free Cash Flow	FY 2025	40–45% conversion	~$1.9B (~50% conversion)	Raised
Share Repurchases	FY 2025	~$1.0B	~$1.0B	Maintained
Dividend	Current	$0.17/qtr (implied prior)	$0.18/qtr (+~6%)	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Crop Protection pricing/mix	Recovery underway, still price pressure; CP margin +800 bps in Q4; flattish market outlook for 2025	Low-to-mid single-digit price declines in Brazil expected H2; stabilization in major markets; generics pricing stable for 4 quarters	Improving/stabilizing
Seed pricing & share	Strong NA corn share gains; price-for-value strategy; ~65% Enlist penetration	Low single-digit NA price cards; continued gains via VorSeed/PowerCore; strong order books in Brazil	Positive momentum
Volume drivers (new products/biologicals)	Double-digit volume growth in new products; biologicals mid-single-digit growth	Double-digit volume gains continue; strong fungicides (up 40% YoY); FMC collaboration for Fluendipere brand	Strong/accelerating
Tariffs/supply chain resilience	FX/BRL a headwind; in-year hedging approach	Tariffs manageable (~$50MM); multi-sourcing in place; major franchises manufactured in U.S.	Manageable risk
FX headwinds and hedging	Larger currency headwind (~$275MM) flagged; BRL exposure back-half loaded	H2 BRL headwind expected; hedged >80% Q3 and ~20% Q4	Headwind; mitigated
R&D and cost actions	R&D ~8% of sales; ~$500MM self-help benefits in 2024	Exceeded 2025 net cost target in 1H; raised to $450MM for year; path to royalty neutrality by 2028	Ahead of plan

Management Commentary

“We are raising our full year guidance as a result of the strength of our global business and the setup for our Latin American business in the second half.” — Chuck Magro, CEO .
“We exceeded our 2025 net cost improvement target in the first half alone, allowing us to raise our full year target to $450MM from $400MM.” — CEO .
“We are increasing our free cash flow guidance to approximately $1.9B with a cash conversion rate of about 50%, primarily driven by earnings growth and lower cash taxes from recent legislation.” — CFO .
“Crop Protection…we expect low to mid single digit pricing headwinds in the second half…this is now our fifth consecutive quarter of CP volume gains.” — CEO .
“Seed continues to make progress on its path to royalty neutrality…we achieved a $70MM benefit in net royalties versus prior year.” — CEO .

Q&A Highlights

Back-half setup and sensitivities: CP tough comps and pricing in Brazil; Seed acreage increases (mid-single-digit) in Latin America; FX impacts to be managed via hedging .
Seed pricing cards: Low single-digit price increases supported by mix improvement (VorSeed/PowerCore) and strong germplasm performance .
Fungicides/new products: Brazil re-entry at acceptable returns; FMC partnership broadens premium fungicide offering in NA corn .
Dicamba label: No upside assumed; Enlist/E3 penetration remains strong; germplasm drives competitiveness .
Tariffs and multi-sourcing: Tariffs seen as manageable; multi-sourcing and domestic manufacturing footprint mitigate risk .

Estimates Context

Metric (S&P Global consensus)	Q4 2024	Q1 2025	Q2 2025
Revenue – Estimate ($USD)	4,011,593,620	4,548,807,110	6,267,024,590
Revenue – Actual ($USD)	3,978,000,000	4,417,000,000	6,456,000,000
Primary EPS – Estimate ($)	0.31215	0.88118	1.8789
Primary EPS – Actual ($)	0.32	1.13	2.2
EBITDA – Estimate ($USD)	526,263,690	1,052,911,340	2,014,879,860
EBITDA – Actual ($USD)	485,000,000	1,117,000,000	2,127,000,000

All S&P Global values shown above are provided for comparison to reported results; differences in EBITDA definitions versus company Operating EBITDA may lead to variances (e.g., company-reported Operating EBITDA for Q4 2024 was $525MM vs. S&P EBITDA actual $485MM) . Values retrieved from S&P Global.*

Where estimates may need to adjust: Q2 beats on revenue, EPS, and EBITDA reflect stronger volume/mix and cost productivity; analysts may revise FY 2025 Operating EPS trajectory upward following the guidance raise .

Key Takeaways for Investors

Q2 beat-and-raise quarter: Revenue/Operating EPS/EBITDA above consensus, with FY guidance raised across sales, Operating EBITDA, and Operating EPS — a positive sentiment driver . Values retrieved from S&P Global.*
Seed is the engine: NA corn acreage and share gains plus price-for-value strategy and net royalty progress underpin margin expansion; Brazil order books ahead of pace .
CP stabilization with pricing caution: Volume strength (new products/biologicals/fungicides) continues, but pricing headwinds in Brazil likely persist H2; watch LatAm pricing cadence .
FX and tariffs monitored, but manageable: Larger FY FX headwind (~$275MM) and BRL exposure weighted to H2; tariff exposure viewed as manageable with multi-sourcing and U.S. manufacturing .
Cash returns supportive: FCF guidance raised to ~$1.9B and ~50% conversion, ~$1.0B buybacks planned, dividend increased to $0.18/qtr (+~6%) .
Non-GAAP clarity: Operating EPS of $2.20 excludes significant items (e.g., insurance proceeds +$0.11, restructuring −$0.09), non-operating costs, and mark-to-market FX impacts; investors should anchor on Operating metrics for trend .
Medium-term thesis intact: Management reiterated 2027 framework (EBITDA +$1B over 3 years, ~100 bps margin expansion per year) with controllable levers ahead of plan (raised 2025 net cost improvement target) .

Appendix: Prior Quarter Context (for trend analysis)

Q1 2025: Net sales $4.42B (−2% YoY), Operating EBITDA $1.19B (+15%), Operating EPS $1.13 (+27%); reaffirmed FY guidance at the time .
Q4 2024: Net sales $4.0B (+7% YoY), Operating EBITDA $525MM (+36%), Operating EPS $0.32 (+113%); refined early FY 2025 guidance and detailed FX headwinds .

Important press releases in Q2 window:

Dividend increase to $0.18 per share (payable Sep 15, 2025) .
PFAS-related settlement framework with NJ (shared obligations; Corteva’s share per MOU ~14.5% present value) .

Sourcing and definitions: company financials (GAAP and Operating/non-GAAP reconciliations) per Q2 2025 8-K and press release; consensus estimates per S&P Global; Operating metrics exclude significant items, certain non-operating costs, and FX mark-to-market as defined by Corteva . Values retrieved from S&P Global.*

Corteva, Inc. (CTVA)·Q2 2025 Earnings Summary