Executive Summary

Solid Q4 finish with 7% GAAP net sales growth and significant non‑GAAP improvement; Operating EBITDA rose 36% to $525M and Operating EPS more than doubled to $0.32, driven by 17% volume growth and strong Crop Protection performance; GAAP EPS from continuing ops was a loss of $(0.08) as FX and tax items weighed on reported results .
Crop Protection delivered the upside: Q4 operating EBITDA up 73% to $461M with ~800 bps margin expansion, helped by raw material deflation, productivity savings, and volume growth in Brazil; Seed grew sales 8% on volume but saw EBITDA decline on pricing pressure in LatAm and higher costs .
2025 outlook refined for FX: Net sales $17.2–$17.6B (lowered vs Nov), Operating EBITDA $3.6–$3.8B (top end trimmed), Operating EPS $2.70–$2.95; company anticipates ~$275M EBITDA FX headwind (BRL, TRY, CAD) and plans ~$1B share repurchases .
Set‑up into 2025: management sees “year of corn,” stabilization in Crop Protection pricing, mid‑single‑digit CP volume growth led by new products/biologicals, improving Seed COGS (notably Brazil), and continued royalty benefits; initial 2025 sales/EBITDA heavily 1H‑weighted (≈60% sales, ≈80% EBITDA in 1H) .

What Went Well and What Went Wrong

What Went Well
- Crop Protection outperformance: Q4 operating EBITDA +73% to $461M with ~800 bps margin expansion on deflation, productivity, and robust Brazil demand for new products and spinosyns . “Q4 … was a record performance for the company” in CP, signaling stabilization .
- Strong Q4 volume across both businesses (+17% total; Seed +19%, CP +16%); organic sales +13% despite price pressure .
- Cash flow strength: FY24 free cash flow $1.7B (+40% y/y), supported $1.5B returns to shareholders; “operating free cash flow in 2024 improved by almost $500 million, coming in at about $1.7 billion” .
What Went Wrong
- Seed margin pressure in Q4: Seed operating EBITDA fell 36% to $93M; pricing pressure in Latin America and higher commodity/R&D spend outweighed volume gains; segment margin contracted ~360 bps .
- FX/tax drag: Q4 GAAP EPS from continuing ops $(0.08) vs $(0.33) prior year; Q4 included a $120M Brazil DTA valuation allowance charge and exchange losses; Operating EPS was $0.32, highlighting non‑GAAP add‑backs .
- FX forces guide refinement: 2025 net sales/EBITDA ranges trimmed vs November on stronger USD; management now embeds ~$275M EBITDA FX headwind (BRL, TRY, CAD) .

Financial Results

Overall comparisons (oldest → newest)

Metric	Q4 2023	Q3 2024	Q4 2024
Net Sales ($B)	$3.707	$2.326	$3.978
GAAP Diluted EPS – Continuing Ops ($)	$(0.33)	$(0.76)	$(0.08)
Operating EBITDA (Non‑GAAP, $M)	$386	$(100)	$525
Operating EPS (Non‑GAAP, $)	$0.15	$(0.49)	$0.32

FY comparison

Metric	FY 2023	FY 2024
Net Sales ($B)	$17.226	$16.908
Income from Cont. Ops (After Tax, $M)	$941	$863
GAAP Diluted EPS – Continuing Ops ($)	$1.30	$1.22
Operating EBITDA (Non‑GAAP, $B)	$3.381	$3.376
Operating EPS (Non‑GAAP, $)	$2.69	$2.57

Non‑GAAP reconciliation snapshot (EPS)

Item (EPS diluted)	Q4 2023	Q4 2024
GAAP EPS – Continuing Ops	$(0.33)	$(0.08)
Less: Non‑operating benefits (costs), after tax	(0.04)	(0.04)
Less: Amortization of intangibles (existing as of Separation), after tax	(0.17)	(0.16)
Less: FX MTM on undesignated hedges, after tax	0.04	(0.01)
Less: Significant items (after tax)	(0.31)	(0.19)
Operating EPS (Non‑GAAP)	$0.15	$0.32

Segment results (Q4)

Segment	Q4 2023 Net Sales ($M)	Q4 2024 Net Sales ($M)	Q4 2023 Op. EBITDA ($M)	Q4 2024 Op. EBITDA ($M)
Seed	1,635	1,772	145	93
Crop Protection	2,072	2,206	267	461
Total Operating EBITDA	—	—	386	525

Seed product lines (Q4 net sales)

Product Line	Q4 2023 ($M)	Q4 2024 ($M)
Corn	1,308	1,411
Soybean	145	154
Other Oilseeds	71	87
Other	111	120

Crop Protection product lines (Q4 net sales)

Product Line	Q4 2023 ($M)	Q4 2024 ($M)
Herbicides	991	1,031
Insecticides	442	490
Fungicides	275	320
Biologicals	155	169
Other	209	196

KPIs and mix (Q4 vs Q4)

KPI	Q4 2024
Organic Sales Growth YoY	+13%
Price/Mix Impact	(4%)
Volume Impact	+17%
Currency Impact	(6%)
Base Income Tax Rate (Non‑GAAP)	23.1%
FY Free Cash Flow ($M)	$1,699 vs $1,214 in FY23

Note on estimates: S&P Global consensus data was unavailable via the tool at time of analysis; thus beats/misses vs Wall Street cannot be quantified here. We will update upon availability.

Guidance Changes

Metric	Period	Previous Guidance (Nov 6, 2024)	Current Guidance (Feb 5, 2025)	Change
Net Sales	FY 2025	$17.3–$17.7B	$17.2–$17.6B	Lowered (mid/top)
Operating EBITDA (Non‑GAAP)	FY 2025	$3.6–$4.0B	$3.6–$3.8B	Lowered top end
Operating EPS (Non‑GAAP)	FY 2025	—	$2.70–$2.95	Introduced
Share Repurchases	FY 2025	—	≈$1.0B	Introduced
FX Headwind to Op. EBITDA	FY 2025	—	≈$275M headwind (BRL, TRY, CAD)	Notable headwind

Management timing note: ~60% of 2025 sales and ~80% of EBITDA expected in 1H; some Q1/Q2 timing shifts vs prior year due to 4Q24 record volumes in LatAm/EMEA and normal Northern Hemisphere delivery pattern .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Crop Protection pricing and market	Q1: Industry imbalanced, JIT purchases; H2 improvement expected . Q3: Stabilizing ex‑Brazil; 2025 flattish CP; new products/biologicals to drive growth .	Stabilization continuing; 2025 CP pricing down low single digits, volumes up mid‑single digits; Q4 CP margin +~800 bps .	Improving; price pressure persists
Seed royalty/out‑licensing	2024 $100M benefit; journey to royalty neutrality . Q3: ~$50M 2025 improvement; licensing PowerCore Enlist/Conkesta E3 progress .	~$50M 2025 improvement confirmed .	Positive
FX and BRL hedging	Q1: TRY headwind, 2H benefit expected . Q3: 2025 FX headwind (BRL, TRY) .	Strong USD drives ~$275M 2025 EBITDA headwind; BRL hedged ~6, exposures back‑half weighted .	Worsened
Seed COGS/deflation	Seed COGS deflation to aid 2025–2027; CP deflation H2‑24 . Q3: 2025 cost benefits from lower seed commodities and CP inputs .	Brazil Seed COGS to “materially improve” in 2025; $400M net cost improvements planned .	Improving
Regulatory (Dicamba)	Uncertain 2025 label; monitor .	No Dicamba upside in 2025 plan; strong E3 order book in the South .	Neutral/monitored
Tariffs/trade policy	Q3 guide excludes trade policy impacts .	Scenario‑planning; ~2% of COGS from China, ~80% multi‑sourced; no impact included in 2025 guide .	Monitored
Just‑in‑time purchasing	JIT behavior pressuring CP timing .	Expected to persist given rates/product availability .	Structural
Biologicals growth	Expected H2 growth; Stoller strong . Q3: double‑digit EBITDA growth; new products +~20% volume .	Double‑digit growth expected; targeting $1B biologicals revenue by decade end .	Strengthening

Management Commentary

“We delivered 20% operating EBITDA margins for the first time in 2024, all while maintaining operating EBITDA… in less than ideal market conditions.”
“2025 is setting up to be the year of corn in the ag markets.”
“Enlist E3 soybeans… has reached 65% market penetration… The Enlist system… reached $1.9 billion in sales in 2024.”
“Operating free cash flow in 2024 improved by almost $500 million, coming in at about $1.7 billion… We are committing to another $1 billion in share repurchases in 2025.”
“The stronger U.S. dollar is expected to translate to… approximately $275 million headwind on operating EBITDA [in 2025].”
“In Q4, we took $170 million of cost out… drivers came from… biologicals, new products… spinosyns… [and] fungicides/insecticides mix.”
“Our COGS position in Brazil [Seed] is going to materially improve [in 2025]… and we see a pricing opportunity.”

Q&A Highlights

CP margin drivers and sustainability: Mix toward higher‑margin fungicides/insecticides, strong Brazil demand for new products and spinosyns, and $170M Q4 cost takeout were key; management expects progress to continue into 2025 though at a slower deflation rate .
Seed costs and LatAm pricing: 2024 Seed was weighed by high‑cost inventory/competitive pricing in LatAm; company “cleared the decks” for 2025 with materially improved Brazil COGS and pricing opportunities on better technology/mix .
Guidance range logic: Top end lowered more than midpoint due to narrowing and CP market assumptions; $275M FX headwind at midpoint partly offset by slight price/volume improvements; upside would require CP growth and/or weaker USD .
Just‑in‑time behavior: Expected to persist given rate environment and ample availability; company positioned operationally for this demand pattern .
Trade/tariffs risk: Only ~2% of COGS sourced from China, ~80% multi‑sourced; scenarios appear manageable; no tariff impact in guidance .
Hedging: BRL hedged near ~6, with exposures skewed to 2H; FX main 2025 headwind .

Estimates Context

S&P Global consensus for Q4/FY/2025 was unavailable via the tool at the time of analysis; therefore, we cannot quantify beats/misses versus Wall Street or compare 2025 guidance to consensus at this time. We will update with S&P Global consensus once accessible.

Key Takeaways for Investors

Fourth‑quarter momentum was CP‑led with strong volume and margin expansion; Seed grew sales but margin was pressured by LatAm pricing/costs—watch for Seed COGS tailwinds and pricing normalization in 2025, especially Brazil .
2025 guide embeds sizable FX headwind (~$275M EBITDA) and a flattish CP market, yet still targets ~~10% EBITDA growth and margin expansion via price/mix in Seed, net royalty improvements (~~$50M), and ~$400M net cost actions—execution on controllables is the core thesis .
“Year of corn” setup supports Seed volume/mix in North America; management plans ~300 new hybrids/varieties in 2025, reinforcing pricing power of technology .
Biologicals and new CP products remain structural growth vectors with premium mix; double‑digit biologicals growth expected and $1B revenue target by decade end underpin CP outperformance vs industry .
Timing matters: ~60% of 2025 sales and ~80% of EBITDA targeted in 1H with potential Q1/Q2 delivery shifts—plan around seasonal and FX exposures (BRL‑heavy back half) .
Monitor Brazil: pricing environment and FX (BRL) are the biggest swing factors; stabilization continued into Q4 but remains the key risk/opportunity for CP and Seed .
Capital returns remain supportive (~$1B buybacks in 2025) alongside continued investment in R&D (~8% of sales) and CP footprint optimization—provides ballast amid macro/FX volatility .

Additional supporting data

Q4 regional sales: North America $1,563M (+4% organic +5%), EMEA $448M (+21% organic +22%), LatAm $1,622M (+7% organic +20%), APAC $345M (+9% organic +10%) .
Price/Volume mix (Total Q4): Price/Mix −4%, Volume +17%, Currency −6% (organic +13%) .
Free Cash Flow FY24: $1,699M vs $1,214M FY23; operating cash flow (cont. ops) $2,296M .

Corteva, Inc. (CTVA)·Q4 2024 Earnings Summary