Executive Summary

Q3 2025 results outperformed on core controllables: revenue rose 13% to $2.62B (organic +11%) with volume +12% and price -1%; Operating EPS was $(0.23) and Operating EBITDA was $49M, a 149% YoY improvement . Versus S&P Global consensus, Corteva beat on revenue ($2.62B vs $2.47B*) and Operating EPS ($(0.23) vs $(0.47)) (consensus via S&P Global).
Seed strength drove upside (volume +27% on early safrinha deliveries; operating EBITDA up 40% YoY) while Crop Protection delivered volume-led growth with pricing pressure concentrated in Latin America and 13% EBITDA growth .
Management raised FY25 guidance: net sales to $17.7–$17.9B (from $17.6–$17.8B), Operating EBITDA to $3.8–$3.9B (from $3.75–$3.85B), and Operating EPS to $3.25–$3.35 (from $3.00–$3.20); FCF guidance ≈$1.9B and ~$1B buybacks unchanged .
Strategic backdrop: planned separation into two public companies in 2H 2026 remains on track; management emphasizes margin trajectory, controllable cost savings (> $600M in 2025), and robust CP/seed innovation pipelines as key narrative drivers for the stock .

What Went Well and What Went Wrong

What Went Well
- Seed momentum: Q3 Seed net sales +33% to $0.92B on +27% volume and +4% price/mix, with operating EBITDA loss narrowing 40% YoY on higher corn volumes, royalty benefits and productivity/deflation . “We delivered a strong third quarter across the company… Seed continues to benefit from its strength in advanced genetics, growth in out-licensing and ongoing cost discipline.” — CEO Chuck Magro .
- Crop Protection execution: CP operating EBITDA +13% YoY to $279M as productivity savings and volume gains offset price/currency headwinds; volume +5% with demand for new products, herbicides, and biologicals .
- Controllables and margin trajectory: management now expects >$600M controllable benefits in 2025; YTD Operating EBITDA margin >25% (+~320 bps YoY), underpinning a path to ~24% company margin by 2027 midpoint .
What Went Wrong
- Pricing in Latin America: CP price declined 2% in Q3 and YTD due to competitive dynamics in Brazil, partially offset by NA price increases .
- FX headwinds: currency was an EBITDA headwind (Brazilian real, Turkish lira, Canadian dollar) YTD; Q3 included after-tax exchange losses of $(50)M .
- Seasonal GAAP loss persists: Q3 GAAP diluted EPS from continuing operations was $(0.46) amid seasonal mix and exchange impacts, though Operating EPS improved to $(0.23) .

Financial Results

Quarterly results (oldest → newest):

Metric	Q1 2025	Q2 2025	Q3 2025
Net Sales ($USD Billions)	$4.42B	$6.46B	$2.62B
GAAP Diluted EPS – Continuing Ops ($)	$0.97	$2.02	$(0.46)
Operating EPS ($)	$1.13	$2.20	$(0.23)
Operating EBITDA ($USD Billions)	$1.19B	$2.16B	$0.05B

Q3 actuals vs S&P Global consensus:

Metric	Actual	Consensus (S&P Global)*
Revenue ($USD Billions)	$2.62B	$2.47B*
Operating EPS ($)	$(0.23)	$(0.47)*
EBITDA ($USD Billions)	$0.05B (Operating)	$(0.11)B*

Values marked with * retrieved from S&P Global.

Q3 segment performance:

Segment	Net Sales ($USD Billions)	YoY %	Operating EBITDA ($USD Millions)	YoY %
Seed	$0.92B	33%	$(193)	40% improvement
Crop Protection	$1.70B	4%	$279	13%

Q3 KPIs (company-level YoY drivers):

KPI	Q3 2025
Organic Sales Growth (%)	11%
Volume Change (%)	+12%
Price Change (%)	(1)%
Currency Impact (%)	+2% (total YoY mix table)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY 2025	$17.6–$17.8B	$17.7–$17.9B	Raised
Operating EBITDA	FY 2025	$3.75–$3.85B	$3.8–$3.9B	Raised
Operating EPS	FY 2025	$3.00–$3.20	$3.25–$3.35	Raised
Free Cash Flow	FY 2025	≈$1.9B	≈$1.9B	Maintained
Share Repurchases	FY 2025	≈$1.0B	≈$1.0B	Maintained

Context: Preliminary FY 2026 view calls for Operating EBITDA ~$4.1B (midpoint), ~6% YoY growth .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q1)	Current Period (Q3)	Trend
Separation into two public companies	Full-year guidance reaffirmed alongside separation decision; rationale to sharpen focus and capital allocation (Oct 1 PR) .	“Process on schedule for 2H 2026”; separation expected to unlock more doors (e.g., seed-applied tech, broader channel access) .	Advancing; roadmap clearer.
Controllables/cost & margin	Raised FY25 outlook in Q2 on cost discipline; H1 Operating EBITDA +14% YoY .	>$600M controllable benefits in 2025; YTD margin >25% (+~320 bps); 2027 margin ~24% midpoint target reiterated .	Improving.
Crop Protection pricing & LATAM	Market “flattish”: volume up, pricing headwinds (LATAM) in Q1/Q2 .	2025 Brazil pricing down mid-single digits (vs high-single digits prior year); 2026 stabilizing, CP industry low single-digit growth view .	Stabilizing.
Biologicals & new actives	H1 CP volume +8% with biologicals/new products; CP EBITDA +26% in H1 .	Biologicals ~$600M 2025; new actives pipeline incl. Varpalgo; Spinosad nearing $900M with 5% organic growth .	Expanding.
Seed performance & out-licensing	NA corn strength, royalty improvements; Seed EBITDA +11% H1 .	Q3 Seed volume +27% (early Brazil safrinha); Conkesta Brazil penetration to double digits in 2026; share gains in NA corn/soy .	Strengthening.
FX and working capital/FCF	FX headwinds noted in Q1/Q2; FCF outlook reinforced .	FCF conversion ≈50% for 2025; FCF guidance ~$1.9B; exchange after-tax loss $(50)M in Q3 .	Steady FCF; ongoing FX headwind.
LATAM credit/channel	Noted macro uncertainty; no specific issues highlighted previously.	Credit risk managed well: past dues improved; ~40% of Brazil sales via barter reduces exposure .	Managed risk.

Management Commentary

Strategic message: “We delivered a strong third quarter… our two businesses will continue to thrive as independent public companies… Seed continues to benefit from its strength in advanced genetics, growth in out-licensing and ongoing cost discipline.” — CEO Chuck Magro .
Margin and controllables: “We’re now expecting to deliver over $600 million in controllable benefits this year… Operating EBITDA margin improvement of over 160 bps for the full year; on track toward ~24% by 2027 midpoint.” — Management commentary .
Outlook and pipeline: “We are raising our full year Operating EBITDA range to $3.8–$3.9B… announcing brand name Varpalgo for our next-gen insecticide active… expected to launch early 2030s and cross $750M at peak.” — CEO Chuck Magro .

Q&A Highlights

Crop Protection strategy and margins: Portfolio shift toward differentiated technologies/new actives and biologicals continues; CP margins targeted at 20% by 2027, with more opportunities post-separation via expanded partnerships/channels .
LATAM credit conditions: Despite higher borrowing costs and some bankruptcies in the region, Corteva reported minimal losses, improved past-due metrics, limited exposure to national distributors, and ~40% of Brazil sales via barter .
Biologicals and Spinosad: Biologicals expected to grow high single- to low double-digit; Spinosad near $900M revenue in 2025, aided by its role as a rotation partner amid resistance dynamics .
2026 industry view: CP market seen returning to low single-digit growth driven by volumes; pricing stabilizing globally, with Brazil still slightly down .
Seeds: Conkesta soy to double-digit penetration in 2026; hybrid wheat launch targeted for 2027 with 10–15% yield uplift in trials; sensitivity ~+$10M EBITDA for each +/-1M acre corn→soy shift .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue $2.62B vs $2.47B*; Operating EPS $(0.23) vs $(0.47)* — both beats. EBITDA beat as well versus $(0.11)B* consensus (Corteva Operating EBITDA $0.05B) (consensus via S&P Global*).
Forward consensus (snapshots): Q4 2025 revenue $4.24B*, EPS $0.213*; Q1 2026 revenue $4.64B*, EPS $1.166* (S&P Global*). Raised FY25 guidance implies potential upward estimate revisions in Operating EPS and EBITDA if execution in Brazil and controllables hold .
Note: Corteva reports Operating (non-GAAP) EPS/EBITDA; consensus “Primary EPS” aligns with non-GAAP EPS; differences to GAAP are reconciled in filings .
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Beat-and-raise quarter: Broad-based volume gains (especially Seed) and controllables drove upside; FY25 guide raised across revenue, Operating EBITDA, and Operating EPS — a clear positive for estimate revision momentum .
Seed strength is durable: NA corn share gains, early Brazil safrinha, increased out-licensing, and royalty improvements underpin Seed margins; Conkesta adoption and hybrid wheat provide multi-year growth vectors .
CP stabilization underway: Pricing pressure concentrated in Brazil is moderating; volume growth from new actives and biologicals plus productivity savings support sustainable margin expansion .
2026 setup constructive: Preliminary ~$4.1B Operating EBITDA midpoint and a return to low single-digit CP industry growth suggest continued operating leverage if mix and cost programs persist .
Separation is a catalyst: Greater strategic focus and partnership optionality for both SpinCo (Seed) and New Corteva (CP) should enhance capital allocation and growth, with detailed targets expected at pre-separation investor days .
Watch items: Brazil CP pricing trajectory and FX headwinds; monitor LATAM credit and barter economics; track Q4 execution in Brazil given seasonal concentration .

Appendix: Additional Detail

Q3 2025 geographic sales (for context)

Region	Net Sales ($USD Millions)	YoY %	Organic %
North America	$707	16%	16%
EMEA	$462	11%	7%
Latin America	$1,161	17%	15%
Asia Pacific	$288	(8)%	(5)%

Non-GAAP definitions and adjustments: Corteva’s Operating EPS and Operating EBITDA exclude significant items, separation costs, certain non-operating items, FX mark-to-market on undesignated contracts, and amortization of intangibles existing as of the DowDuPont separation; reconciliations provided in exhibits .

Corteva, Inc. (CTVA)·Q3 2025 Earnings Summary