Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

8aea5ec0aa8a2c7d369807dbe6e5d1c98b9c8cc707ac03a4ec3be5a98627eb30

| Metric [USD Millions] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|-----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Seed Segment          | **2,700**  **[CTVA_3249165_2]** **[0001755672-23-000009_draft_1qx2023xearningsxn.htm:3]**  | **4,300**  **[0001755672-23-000015_draft_2qx2023xearningsxn.htm:3]**  | **878**  **[0001755672-23-000022_a3q_2023xearningsxnewsxr.htm:2]**  | **1,640**  **[0001755672-24-000002_a4q_23xearningsxnewsxrel.htm:2]**  | **2,800**  **[0001755672-24-000006_final_1qx2024xearningsxn.htm:1]**  | **4,330**  **[0001755672-24-000017_final_2qx2024xearningsxn.htm:2]**  | **691**  **[0001755672-24-000021_final_3qx2024xearningsxn.htm:2]**  | N/A |
| Crop Protection Segment | **2,200**  **[CTVA_3249165_2]** **[0001755672-23-000009_draft_1qx2023xearningsxn.htm:3]**  | **1,800**  **[0001755672-23-000015_draft_2qx2023xearningsxn.htm:4]**  | **1,700**  **[0001755672-23-000022_a3q_2023xearningsxnewsxr.htm:3]**  | **2,100**  **[0001755672-24-000002_a4q_23xearningsxnewsxrel.htm:3]**  | **1,700**  **[0001755672-24-000006_final_1qx2024xearningsxn.htm:1]**  | **1,780**  **[0001755672-24-000017_final_2qx2024xearningsxn.htm:3]**  | **1,635**  **[0001755672-24-000021_final_3qx2024xearningsxn.htm:3]**  | N/A |

95e509dd947887694c91fe4f2474b0b6780e97654da7eea9be290e3320e2d48e

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

a5f5e3655ddfba1b2c4d1c613e9ffca9797070ee0236d3de428caaded28ad136

Current Assets [USD, Millions]

Cash and Cash Equivalents [USD, Millions]

Accounts Receivable [USD, Millions]

Inventory [USD, Millions]

Non-Current Assets [USD, Millions]

PP&E [USD, Millions]

Goodwill [USD, Millions]

Intangible Assets [USD, Millions]

Current Liabilities [USD, Millions]

Accounts Payable [USD, Millions]

Short-term Debt [USD, Millions]

Accrued Expenses [USD, Millions]

Non-Current Liabilities [USD, Millions]

Long-term Debt [USD, Millions]

Deferred Tax Liabilities [USD, Millions]

Shareholders' Equity [USD, Millions]

Retained Earnings [USD, Millions]

Common Stock [USD, Millions]

Additional Paid-in Capital [USD, Millions]

cee1112ea1490a9860e14fadada41bdee8c315564b72efd5cafc6456f9432527

Number of new products launched (products)

Volume change for Seeds in North America (percent)

Volume change for Seeds in EMEA (percent)

Volume change for Seeds in Latin America (percent)

Volume change for Seeds in Asia Pacific (percent)

Volume change for Seeds – Total (percent)

Volume change for Corn (Seeds) (percent)

Volume change for Soybeans (Seeds) (percent)

Volume change for Other oilseeds (Seeds) (percent)

Volume change for Other (Seeds) (percent)

Volume change for Crop Protection in North America (percent)

Volume change for Crop Protection in EMEA (percent)

Volume change for Crop Protection in Latin America (percent)

Volume change for Crop Protection in Asia Pacific (percent)

Volume change for Crop Protection – Total (percent)

Volume change for Herbicides (Crop Protection) (percent)

Volume change for Insecticides (Crop Protection) (percent)

Volume change for Fungicides (Crop Protection) (percent)

Volume change for Other (Crop Protection) (percent)

c965c0586d1f20b90e0e1a1d70a8d75a34d2c0ff16022350b1c01bd74ca43e0c

Agriculture

Packaging and Specialty Plastics

Electronics and Imaging

Nutrition and Health

Industrial Biosciences

Transportation and Advanced Polymers

Safety and Construction

Other

Total Revenue

8179f6949fe084b54d28546dcf890068d407fce2a28e697f06aa95c834cfed83

Corteva, Inc. is a global agriculture company specializing in the development and sale of seeds and crop protection products. The company operates primarily in two segments: Seed and Crop Protection, offering a range of products that support agricultural productivity and sustainability. Corteva's Seed segment includes corn, soybean, and other oilseeds, while the Crop Protection segment provides herbicides, insecticides, and fungicides to safeguard crops from various threats **[0001755672-24-000024_ctva-20240930.htm:12]**. The company is committed to innovation, having launched over 400 new products in 2023, including new seed hybrids and crop protection solutions **[CTVA_3371710_1]** **[CTVA_3389435_0]**.

1. **Seed** - Develops and sells a variety of seeds, including corn, soybean, and other oilseeds, with corn being the largest contributor to this segment.
   - **Corn** - Offers a range of corn seed products designed to enhance yield and resilience.
   - **Soybean** - Provides soybean seeds that are engineered for improved performance and disease resistance.
   - **Other Oilseeds** - Includes seeds for various oilseed crops, supporting diverse agricultural needs.

2. **Crop Protection** - Offers a comprehensive range of products designed to protect crops from weeds, insects, and diseases.
   - **Herbicides** - Supplies herbicides that effectively manage weed growth and enhance crop health.
   - **Insecticides** - Provides insecticides aimed at controlling pest populations and minimizing crop damage.
   - **Fungicides** - Delivers fungicides that prevent and control fungal diseases, ensuring crop quality and yield.

709920ce84a014e290126ecdf7cabda5578bf07f7c0d2812dc60e49b9a063a4c

1. Given the 18% price decline in crop protection products in Brazil during the quarter, can you elaborate on the specific factors driving this deterioration and how you plan to navigate the ongoing competitive pressures in this key market?
2. With organic sales down 5% and seed sales down 17% in the quarter, particularly a 25% decline in North American seed prices due to end-of-season settlements, what strategies are you implementing to reverse the downward trend in seed pricing and improve margins?
3. Your initial outlook for 2025 suggests only moderate benefits from seed and crop protection cost deflation, despite industry expectations for larger deflationary impacts; can you explain why your estimates appear conservative and whether there is potential for greater upside?
4. Considering the adjustment of your full-year operating EBITDA guidance to $3.4 billion at the midpoint due to unfavorable Latin American market conditions, what specific measures are you taking to mitigate these issues, and how confident are you in achieving this updated target?
5. With the upcoming retirement of Tim Glenn and the transition to new leadership in your Seed business, how do you anticipate this change will impact your strategic execution in the Seed segment, especially given the current market challenges and the importance of innovation in driving growth?

5af760c604dc5eddc4b557755af284b5e0b02e4c4b5c3f7413347f4a71a1766b

8ee15bc320184ab734796377553f92943cfea3ad33f51d35895a908777645bb0

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  - **FY 2024**:
    - **Net Sales**: $17 billion to $17.2 billion, down 1% at the midpoint  **[CTVA_3406591_4]** .
    - **Operating EBITDA**: $3.35 billion to $3.45 billion, up 1% at the midpoint  **[CTVA_3406591_4]** .
    - **Operating EBITDA Margin**: About 20% at the midpoint  **[CTVA_3406591_4]** .
    - **Operating EPS**: $2.50 to $2.60, down 5%  **[CTVA_3406591_4]** .
    - **Free Cash Flow**: $1.5 billion to $2.0 billion, approximately $1.75 billion at the midpoint  **[CTVA_3406591_4]** .
    - **Cash Flow to EBITDA Conversion Rate**: 45% to 50%  **[CTVA_3406591_4]** .
    - **Share Repurchases**: Approximately $1 billion  **[CTVA_3406591_1]** .
  - **FY 2025**:
    - **Net Sales**: $17.3 billion to $17.7 billion  **[CTVA_3406591_4]** .
    - **Operating EBITDA**: $3.6 billion to $4.0 billion  **[CTVA_3406591_4]** .
    - **Operating EBITDA Growth**: 12% at the midpoint  **[CTVA_3406591_5]** .
    - **Operating EBITDA Margin**: 21% to 23%  **[CTVA_3406591_2]** .
    - **Cost Improvements**: Approximately $400 million  **[CTVA_3406591_5]** .
    - **Currency Headwind**: Driven by the Turkish lira and Brazilian real  **[CTVA_3406591_5]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Net Sales**: $17.2 billion to $17.5 billion, 1% increase at the midpoint  **[CTVA_3395990_4]** .
  - **Operating EBITDA**: $3.4 billion to $3.6 billion, 4% increase at the midpoint  **[CTVA_3395990_4]** .
  - **Operating EBITDA Margin**: Approximately 20% at the midpoint  **[CTVA_3395990_4]** .
  - **Operating EPS**: $2.60 to $2.80 per share, roughly flat  **[CTVA_3395990_4]** .
  - **Free Cash Flow**: $1.5 billion to $2 billion, approximately $1.75 billion at the midpoint  **[CTVA_3395990_4]** .
  - **Share Repurchases**: $1 billion, including $500 million completed in the first half  **[CTVA_3395990_4]** .
  - **Annual Dividend**: 6.25% increase  **[CTVA_3395990_4]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Full Year Operating EBITDA**: $3.5 billion to $3.7 billion  **[CTVA_3382423_6]** .
  - **Free Cash Flow**: Midpoint of $1.75 billion, with 50% conversion  **[CTVA_3382423_6]** .
  - **Sales and Earnings Growth**: On track for growth  **[CTVA_3382423_6]** .
  - **Seed Business**: Organic sales up 5%, price up 6%  **[CTVA_3382423_1]** .
  - **Crop Protection**: Volume growth expected, focus on new products  **[CTVA_3382423_1]** .
  - **Cost Savings**: $100 million reduction in net royalty expense, $100 million in input cost deflation, $200 million from productivity actions  **[CTVA_3382423_6]** .
  - **Foreign Exchange**: Small benefit anticipated  **[CTVA_3382423_12]** .
  - **Second Half 2024**: Double-digit sales and EBITDA growth expected  **[CTVA_3382423_4]** .
  - **2025 Financial Framework**: EBITDA range of $3.9 billion to $4.4 billion  **[CTVA_3382423_18]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  - **FY 2024**:
    - **Net Sales**: $17.4 billion to $17.7 billion, 2% growth at the midpoint  **[CTVA_3371710_4]** .
    - **Operating EBITDA**: $3.5 billion to $3.7 billion, more than 6% improvement  **[CTVA_3371710_4]** .
    - **Operating EPS**: $2.70 to $2.90 per share, 4% increase  **[CTVA_3371710_4]** .
    - **Free Cash Flow**: $1.5 billion to $2 billion, 50% conversion rate  **[CTVA_3371710_4]** .
    - **SG&A Spend**: Increase expected  **[CTVA_3371710_5]** .
    - **R&D Investment**: Approximately 8% of sales  **[CTVA_3371710_5]** .
    - **Biologicals Franchise**: $90 million of operating EBITDA  **[CTVA_3371710_5]** .
    - **Sales and Earnings Timing**: Over 60% of sales and 80% of EBITDA in the first half  **[CTVA_3371710_5]** .
    - **Seed Pricing**: Low single-digit growth  **[CTVA_3371710_6]** .
    - **Crop Protection Pricing**: Declines expected  **[CTVA_3371710_4]** .
    - **Volume Growth**: Mid-single-digit growth in Crop Protection  **[CTVA_3371710_4]** .
    - **Cost Deflation**: Low single-digit deflation  **[CTVA_3371710_5]** .
    - **Productivity and Cost Actions**: $300 million of benefits  **[CTVA_3371710_5]** .
    - **Royalty Expense**: $100 million improvement  **[CTVA_3371710_5]** .
    - **EBITDA Growth**: $800 million additional growth by 2025  **[CTVA_3371710_5]** .

4cdd812d9b80eee370239e58a86ceaaeeec27726c4fd4540c811f327b5281a98

| Name               | Position                                           | Start Date          | Short Bio                                                                                                                                                                                                                   |
|--------------------|----------------------------------------------------|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Charles V. Magro   | Chief Executive Officer                            | November 1, 2021    | Charles V. Magro has been the CEO and a director of Corteva since November 1, 2021. He has over 20 years of experience in the agricultural and chemical industries, previously serving as CEO of Nutrien Ltd. and Agrium Inc.  **[0001193125-24-069255_d543319ddef14a.htm:36]** **[0001193125-24-059330_d543319dpre14a.htm:36]** **[0001193125-23-067536_d309467ddef14a.htm:34]** . |
| David J. Anderson  | Executive Vice President & Chief Financial Officer | N/A                 | David J. Anderson served as the EVP and CFO at Corteva. He announced his retirement effective September 16, 2024, and was succeeded by David P. Johnson. Anderson will remain as an advisor to the CEO until February 2025  **[0001755672-24-000017_ctva-20240731.htm:2]** **[0001755672-24-000017_pressrelease-exhibit993.htm:0]** . |
| Samuel R. Eathington| Executive Vice President, Chief Technology & Digital Officer | N/A                 | The documents do not provide specific details on the start date for Samuel R. Eathington. He is listed as one of the Named Executive Officers for the fiscal years 2022 and 2023  **[0001193125-24-069255_d543319ddef14a.htm:59]** **[0001193125-24-059330_d543319dpre14a.htm:59]** **[0001193125-23-067536_d309467ddef14a.htm:44]** **[0001193125-24-059330_d543319dpre14a.htm:42]** **[0001193125-24-069255_d543319ddef14a.htm:42]** .                             |
| Timothy P. Glenn   | Executive Vice President, Seed Business Unit       | N/A                 | Timothy P. Glenn announced his intent to retire effective December 1, 2024, and will transition to a strategic advisor role until his retirement in Q1 2025. He has been with Corteva and its heritage companies for over 30 years  **[0001193125-24-237616_d840674d8k.htm:1]** **[0001193125-24-237616_d840674dex991.htm:0]** . |
| Robert D. King     | Executive Vice President, Crop Protection Business Unit | April 4, 2022      | Robert D. King serves as the EVP of the Crop Protection Business Unit at Corteva, starting his role on April 4, 2022  **[0001193125-23-067536_d309467ddef14a.htm:55]** .                                                                                                   |
| Judd O'Connor      | Executive Vice President, Seed Business Unit       | December 1, 2024    | Judd O'Connor assumed the position of EVP of the Seed Business Unit on December 1, 2024, succeeding Timothy Glenn. He has over 25 years of experience in the agriculture industry and has held various leadership roles within Corteva  **[0001193125-24-237616_d840674dex991.htm:0]** **[0001193125-24-237616_d840674d8k.htm:1]** . |
| David Johnson      | Executive Vice President & Chief Financial Officer | September 16, 2024  | David Johnson joined Corteva as the EVP and CFO on September 16, 2024. He previously served as CFO at Atkore and has nearly three decades of experience in financial management  **[CTVA_3395990_6]** .                                         |
| Tim Glenn          | Strategic Advisor to the Executive Leadership Team | December 1, 2024    | Tim Glenn is serving as a Strategic Advisor to the Executive Leadership Team at Corteva until his retirement in Q1 2025. He announced his intent to retire effective December 1, 2024  **[0001193125-24-237616_d840674dex991.htm:0]** **[0001193125-24-237616_d840674d8k.htm:1]** .                               |

38df466b36eb4f6b095fb785ac88e43a8ecd103d2ff47c6761b190fc3e6e2d84

U.S. & Canada

EMEA

Asia Pacific

Latin America

aa67cd8fa2edc9d490172a63b34de268bedec7865084a5e6f8e488ab246a8038

**Annual guidance for FY 2024:**
- **Net Sales**: $17.0B to $17.2B  **[CTVA_3406591_4]**  (lowered from $17.2B to $17.5B  **[CTVA_3395990_4]** )  
- **Operating EBITDA**: $3.35B to $3.45B  **[CTVA_3406591_4]**  (lowered from $3.4B to $3.6B  **[CTVA_3395990_4]** )  
- **Operating EBITDA Margin**: About 20%  **[CTVA_3406591_4]**  (no change from prior guidance  **[CTVA_3395990_4]** )  
- **Operating EPS**: $2.50 to $2.60  **[CTVA_3406591_4]**  (lowered from $2.60 to $2.80  **[CTVA_3395990_4]** )  
- **Free Cash Flow**: $1.5B to $2.0B, midpoint $1.75B  **[CTVA_3406591_4]**  (no change from prior guidance  **[CTVA_3395990_4]** )  
- **Share Repurchases**: Approximately $1B  **[CTVA_3406591_1]**  (no change from prior guidance  **[CTVA_3395990_4]** )  
- **Cash Flow to EBITDA Conversion Rate**: 45% to 50%  **[CTVA_3406591_4]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Net Sales**: $17.3B to $17.7B  **[CTVA_3406591_4]**  (no prior guidance)  
- **Operating EBITDA**: $3.6B to $4.0B  **[CTVA_3406591_4]**  (no prior guidance)  
- **Operating EBITDA Growth**: 12% at the midpoint  **[CTVA_3406591_5]**  (no prior guidance)  
- **Operating EBITDA Margin**: 21% to 23%  **[CTVA_3406591_2]**  (no prior guidance)  
- **Cost Improvements**: Approximately $400M  **[CTVA_3406591_5]**  (no prior guidance)  
- **Currency Headwind**: Driven by Turkish lira and Brazilian real  **[CTVA_3406591_5]**  (no prior guidance)

9038fb1c61b88185f25b49b2f71315886f84ebdae7fd0895a0ccb890762e3186

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP | 1946  **[0001755672-24-000004_ctva-20231231.htm:224]**    | Present  | Current auditor   |

99c40253e3c0db3d2300459cd4e8ed8b65701d572ac2e5ab6fb5cdbbc8be8888

890f8c9e8f5dfcdd870369658c20d464e63508c737ea40f66e1e35e72bb9b3cb

1. **2025 Guidance Conviction**  
   **Q:** Are you lowering the 2025 EBITDA guidance?  
   **A:** CEO Charles Magro affirmed their **conviction over 2025 targets**, feeling good about controllable factors like royalty improvements and productivity actions, expecting benefits **north of $400 million** for both 2024 and 2025.  **[CTVA_3395990_8]**  He acknowledged concerns around Crop Protection pricing but remains hopeful for market stabilization.  **[CTVA_3395990_8]** 

2. **Crop Protection Pricing Pressure**  
   **Q:** Are you concerned about CP pricing pressures from generics?  
   **A:** Magro acknowledged a **competitive environment** in Crop Protection pricing but is **not overly concerned**.  **[CTVA_3395990_12]**  He cited that high-priced inventory is moving through the market, and fundamentals like **healthy on-farm demand** and normalizing inventories give confidence in a path toward a **healthier CP market**.  **[CTVA_3395990_12]** 

3. **CP Pricing Recovery Timeline**  
   **Q:** When will CP pricing return to flat or positive?  
   **A:** While refraining from specifying a quarter, Magro believes the market is approaching **stabilization**.  **[CTVA_3395990_14]**  With healthy on-farm demand and normalizing inventories, they are on a **path to recovery** and anticipate that the recent trend of organic decline is **unusual**.  **[CTVA_3395990_14]** 

4. **Seed Pricing Strategy**  
   **Q:** How do you view a competitor's early seed price release?  
   **A:** EVP Tim Glenn noted it's hard to speculate on competitors' motivations but mentioned that farmers haven't made buying decisions yet.  **[CTVA_3395990_10]**  Corteva plans to adhere to its usual timing, focusing on **innovation and new technology** like **Vorceed and PowerCore in corn** and **Z-Series soybeans**.  **[CTVA_3395990_10]**  Their philosophy remains **value-driven and technology-driven**, delivering value to customers.  **[CTVA_3395990_10]** 

5. **Free Cash Flow Guidance**  
   **Q:** How is free cash flow guidance stable despite lower net income?  
   **A:** CFO David Anderson explained that benefits from **inventory (nearly $500 million)** and **accounts payable improvements (about $650 million)** are contributing positively.  **[CTVA_3395990_17]**  They expect continued inventory benefits and are encouraged by achieving a **50% free cash flow to EBITDA conversion**, aiming to sustain or improve that in 2025.  **[CTVA_3395990_17]** 

6. **Factors Impacting Guidance**  
   **Q:** What key factors are affecting your guidance?  
   **A:** Magro stated that the **lowering of guidance** was driven by first-half impacts like weather-related missed applications and CP pricing dynamics.  **[CTVA_3395990_11]**  For the second half, they expect CP volume growth and are monitoring **Argentina's corn stunt virus issue** and **Brazil's planted acreage recovery**.  **[CTVA_3395990_11]**  The upside depends on global CP market stabilization and return to growth.  **[CTVA_3395990_11]** 

7. **CP Volume Expectations**  
   **Q:** What are your CP volume expectations for the second half?  
   **A:** EVP Robert King expects **mid-teens volume growth** in the second half, driven by Latin America, with a balanced performance between Q3 and Q4.  **[CTVA_3395990_13]**  CFO David Anderson noted that volumes are returning to a **normal pattern**, comparing favorably against a weaker second half in 2023.  **[CTVA_3395990_13]** 

8. **Dicamba Uncertainty Benefits**  
   **Q:** How does Dicamba's uncertain future benefit Corteva?  
   **A:** Glenn acknowledged uncertainty around Dicamba's availability in 2025.  **[CTVA_3395990_15]**  He expects continued growth in adoption of their **Enlist E3 soybeans**, which captured over **65% of the market**.  **[CTVA_3395990_15]**  With over **100 companies licensed** to sell Enlist E3, there's adequate seed to support substantial growth, potentially benefiting both proprietary brands and licensees.  **[CTVA_3395990_15]** 

9. **CP Volume vs. Pricing**  
   **Q:** Is there a relationship between CP volume recovery and pricing pressure?  
   **A:** Magro explained that while farmers are prioritizing investments due to tighter margins, they are still applying necessary crop protection.  **[CTVA_3395990_18]**  Lower-priced products may require more frequent application, but overall **on-farm demand remains healthy**.  **[CTVA_3395990_18]**  Corteva aims to provide farmers with a proper **return on investment** through technology.  **[CTVA_3395990_18]** 

10. **Corn Royalties and Product Mix**  
    **Q:** Did doubles grow faster than triples in corn, and what's the royalty contribution?  
    **A:** Glenn stated that their corn mix remains **stable**, with no significant changes between doubles and triples.  **[CTVA_3395990_16]**  Anderson mentioned that total royalty income increased by about **$35 million**, driven by licensing of **PowerCore traits**.  **[CTVA_3395990_16]** 

4dcdf4202509ccf13c103ec270b60b4c0b0c60371204cefd6d239a8ca26ffe84

1. **2024 vs 2025 EBITDA Growth Drivers**  
   **Q:** Why is EBITDA growth accelerating in 2025 versus 2024?  
   **A:** Management explained that while **2024** will still be impacted by destocking in Crop Protection, they expect significant EBITDA growth in **2025** due to the CP market stabilizing and resuming growth.  **[CTVA_3371710_8]**  They also anticipate **$350 million to $450 million** of self-help measures, including cost savings and improved royalties, contributing to 2025 earnings.  **[CTVA_3371710_8]**  Additionally, deflation benefits will have a greater positive impact in **2025**, especially in Seed.  **[CTVA_3371710_8]** 

2. **Input Cost Relief Timing in CP and Seed**  
   **Q:** When will input cost relief benefit Crop Protection and Seed segments?  
   **A:** In Crop Protection, the company expects a low single-digit percentage benefit on direct materials in **2024**, around **2–3%**.  **[CTVA_3371710_10]**  For Seed, due to hedging strategies, there will be no meaningful cost relief in **2024**, but they'll see benefits in **2025** from lower commodity prices.  **[CTVA_3371710_10]** 

3. **2024 Cost Increases vs Cost Benefits**  
   **Q:** Why aren't cost benefits driving earnings growth in 2024?  
   **A:** Despite significant cost benefits of around **$250 million** from productivity and **$100 million** from net royalties, these are offset by higher R&D expenses (**$100 million**) and over **$200 million** in SG&A increases in **2024**.  **[CTVA_3371710_9]**  Increases include merit raises, incentive compensation accruals, and costs shifting from capital expense to SG&A.  **[CTVA_3371710_9]**  Management expects these headwinds won't recur in **2025**, aiding earnings growth.  **[CTVA_3371710_9]** 

4. **Crop Protection Destocking Impact**  
   **Q:** How is destocking affecting Crop Protection volume and price?  
   **A:** Destocking is still ongoing in **Brazil** and parts of **Europe**, but largely complete in the **U.S.**, where the market is functioning normally.  **[CTVA_3371710_7]**  The global Crop Protection market is expected to be down **low single digits** in **2024** due to price pressure, with volumes stable and growing.  **[CTVA_3371710_7]**  They anticipate normalization in the second half of the year and a return to normal growth in **2025**.  **[CTVA_3371710_7]** 

5. **Free Cash Flow Outlook and Working Capital**  
   **Q:** What is the outlook for free cash flow and working capital in 2024?  
   **A:** The company expects continued progress in working capital in **2024**, with both receivables and payables contributing to cash flow.  **[CTVA_3371710_13]**  They anticipate near **50% conversion** of cash flow to EBITDA in their **2024** guidance.  **[CTVA_3371710_13]** 

6. **Latin America Challenges and Generic Competition**  
   **Q:** What challenges are you facing in Latin America, especially Brazil?  
   **A:** **Brazil** has been impacted by severe weather, destocking, and macroeconomic challenges, leading to a **double-digit reduction** in corn planting area.  **[CTVA_3371710_11]**  Destocking in Crop Protection will last longer in Brazil, and market dynamics include competitive pressure from generics.  **[CTVA_3371710_11]**  However, management remains optimistic about long-term growth in the region.  **[CTVA_3371710_11]** 

7. **North America Seed: Enlist Adoption and Royalties**  
   **Q:** How is Enlist adoption progressing, and what's the impact on royalties?  
   **A:** Enlist E3 soybeans are expected to reach about **60%** market share in **2024**.  **[CTVA_3371710_12]**  The majority of the **$100 million** net royalty benefit this year comes from reduced royalty payments, primarily in soybeans.  **[CTVA_3371710_12]**  In future years, they expect greater benefits from in-licensing royalties.  **[CTVA_3371710_12]** 

8. **Corn to Soy Shift Impact on Profitability**  
   **Q:** How does the shift from corn to soy affect profitability?  
   **A:** While corn remains more profitable than soybeans in North America, the difference has decreased due to higher profitability in soybeans from Enlist E3 adoption.  **[CTVA_3371710_15]**  The anticipated acreage shift is already factored into their projections, and the impact is less significant than in the past.  **[CTVA_3371710_15]** 

9. **Generic Imports into Latin America**  
   **Q:** Has the influx of generic Crop Protection imports into Latin America changed?  
   **A:** Elevated imports of generics into Latin America have slowed down since the third quarter.  **[CTVA_3371710_14]**  A rebalancing is occurring as movements need to be profitable, and while generics remain part of the market, they are not the primary focus for the company.  **[CTVA_3371710_14]** 

a0271ef3f7fb7049a5a7dbf02bfb962b714c5658cded1aefd7991c5de66bd6fc

- **Strong performance of new products and biologicals:** The company achieved about **20% organic growth in new products** in Q3, with **biologicals expected to be up double digits in EBITDA growth** for 2024. These are the growth engines for the Crop Protection business and are expected to continue driving growth into 2025.  **[CTVA_3406591_15]**
- **Significant EBITDA growth in Crop Protection business:** The Crop Protection segment saw its **second consecutive quarter of volume growth**, with **over 30% EBITDA growth** in Q3, driven by new technologies and biological investments. For 2025, they expect to outperform the flat industry with **mid-single-digit volume growth**, propelled by new technology.  **[CTVA_3406591_12]**
- **Strong free cash flow and shareholder returns:** The company is generating robust cash flow, expecting **$1.5 billion to $2 billion in free cash flow** for the year, and returning approximately **$1.5 billion** to shareholders through buybacks and dividends, while investing in growth opportunities.  **[CTVA_3406591_18]**

8db2ec704ae21ee9e60d5b5ce69831ff9c9d09c9a29d81a09552a76579b93765

1. **Confidence in 2025 Guidance**  
   **Q:** How confident are you in the 2025 guidance?  
   **A:** While acknowledging that the 2025 guidance depends on several factors, especially the Crop Protection (CP) industry, management feels confident in delivering double-digit earnings growth and margin expansion. The seed business is on plan, and cost productivity is strong. Although the CP industry has faced challenges, signs point to stabilization. Their current view is based on a flattish CP market in 2025, and they have been candid in updating assumptions as industry conditions change. They believe the range provided reflects their best perspective at this time.  **[CTVA_3406591_16]** 

2. **2025 Guidance on Cost Deflation**  
   **Q:** Why does 2025 cost deflation benefit seem low?  
   **A:** Of the **$600 million** gross benefit expected in 2025, about half is due to deflation in seed and Crop Protection costs. Seed deflation is a **three-year journey**, with benefits anticipated in **2025 through 2027**. Management indicates that the current estimate aligns with their best perspective and it's early to predict possible upsides. They emphasize that a large part of this benefit is under their control, driven by cost management and productivity.  **[CTVA_3406591_9]** 

3. **EBIT Outlook Risks**  
   **Q:** Are FX and CPC pricing risks to EBIT outlook?  
   **A:** Currency impacts, primarily from Brazil, are considered in the outlook, with management feeling comfortable with the current estimate of a **$150 million** impact. While predicting currency movements is challenging, they believe their assumptions are reasonable. They also express confidence regarding CPC pricing and other factors in the EBIT outlook, noting that achieving the higher end of their guidance would require overachieving on deliverables and some market strength.  **[CTVA_3406591_11]** 

4. **Crop Protection Expectations 2025**  
   **Q:** What's baked into 2025 Cropchem guidance?  
   **A:** Management expects the CP market to be flat in 2025 but anticipates their business will perform better due to **mid-single-digit volume growth** driven by new technologies and biological investments. While pricing may be down low single digits, sales are expected to grow slightly, with new products leading the growth in volume. They believe their offerings will outperform the market despite the flat industry outlook.  **[CTVA_3406591_12]** 

5. **Argentina Seed Sales Impact**  
   **Q:** How will Argentina seed sales affect earnings?  
   **A:** The company faces a **20%** reduction in corn planting area in Argentina, from **8 million** down to **6.5 million hectares**, impacting a profitable and significant market where they hold an above-average market share of nearly **40%**. This reduction represents lost sales rather than deferred business, affecting earnings. For 2025, they are prudently not assuming a significant rebound due to ongoing agronomic pressures but remain optimistic over the next few years.  **[CTVA_3406591_10]** ,  **[CTVA_3406591_17]** 

6. **Brazil Cropchem Pricing Decline**  
   **Q:** Why did Brazil crop chemical prices drop 18%?  
   **A:** In a competitive and flat-to-down market, Brazil experienced an **18%** price decline in crop chemicals for the quarter due to intense competition for volume. The company aims to hold share by focusing on products that drive value, particularly new and differentiated offerings. They expect to finish the year with mid-single-digit price declines overall and believe their strategy positions them well despite market pressures.  **[CTVA_3406591_14]** 

7. **New Products and Biologicals Performance**  
   **Q:** How are new products and biologicals performing?  
   **A:** Biologicals are performing well, expected to achieve **double-digit EBITDA growth** for the year, serving as a strong complement to the synthetics business. New products saw about a **20%** organic growth in Q3, continuing to perform above the market. Management anticipates that these offerings will continue to drive growth into 2025 and beyond, contributing significantly to the company's performance.  **[CTVA_3406591_15]** 

8. **Balance Sheet and Debt Consideration**  
   **Q:** Would you consider taking on more debt?  
   **A:** Management's views remain consistent; they do not foresee meaningful changes in their capital structure. With strong free cash flow of **$1.5 billion to $2 billion**, they aim to invest in growth while maintaining capital returns to shareholders, and they regard their investment-grade rating as a strategic asset. They believe their current approach appropriately balances growth investments and shareholder returns.  **[CTVA_3406591_18]** ,   

9. **North American Seed Price Drop**  
   **Q:** Why was seed price down 25% year-over-year?  
   **A:** The **25%** year-over-year drop in North American seed price reflects the timing of end-of-season settlements, specifically replant settlements that occurred later than usual. While it appears as a significant price concession, it's a normal part of the business influenced by the timing of when these settlements are recognized. This year, replants were within the normal range but settled in the third quarter rather than the second.  **[CTVA_3406591_13]** 

10. **$150 Million Cost Breakdown**  
    **Q:** Can you break down the $150 million costs?  
    **A:** Of the **$150 million** in inflation and other costs, about **75%** is in the Seed business, primarily related to trait transition costs in corn traits in North America. These costs are due to ramping up new technologies and incurring additional expenses until they reach a steady state. The company expects to manage these transition costs over the next couple of years as they complete the technology shift.  **[CTVA_3406591_8]** 

6066f9a538f3d4915d1f737f94484f7d4dfcf0d6ae84925c431bba24ebfc6fd0

- **Corteva's Seed business is showing exceptional performance, with over 400 basis points of margin expansion**, driven by the strategy to become a technology seller instead of a buyer. **Enlist E3 soybeans are now on over 65% of U.S. soybean acres in 2024**, up from over 55% last year, with potential for further growth.  **[CTVA_3395990_15]**
- **Anticipated mid-teens volume growth in the second half in Crop Protection**, led by new products, spinosyns, and biologicals, which are expected to account for about 65% of total growth. The **Brazil order book is very healthy, about 20% ahead of last year**, indicating strong demand.  **[CTVA_3395990_9]** **[CTVA_3395990_18]**
- **Management expresses strong confidence in the company's technology pipeline**, considering it second to none in the industry, and remains comfortable with base assumptions for 2024 and 2025, indicating they are **on a path to achieving growth targets**.  **[CTVA_3395990_8]**

2ab95dc9a629198e1152beb2d3a859b91af116cd07ff6a8ad4144ea10d6cf5ce

- **Continued destocking in the Crop Protection market, particularly in Brazil, is expected to impact Corteva's business in 2024, leading to potential headwinds in volume and pricing.**  **[CTVA_3371710_8]** **[CTVA_3371710_7]** **[CTVA_3371710_11]**
- **Increased SG&A expenses, including higher incentive compensation accruals and other costs, are anticipated in 2024, which may offset some cost benefits and impact earnings growth.**  **[CTVA_3371710_8]** **[CTVA_3371710_9]**
- **Weather challenges and delayed planting in Brazil are resulting in a double-digit reduction in corn planting area, which could negatively affect Seed sales in Latin America.**  **[CTVA_3371710_11]**

059d284cc0ecc56f62c24c3f2635011d7b612e1d3dda6a703455d28cb9d2d351

- **Enlist E3 soybeans are expected to reach 60% market penetration in 2024**, improving profitability due to reduced royalty expenses.  **[CTVA_3371710_12]**
- **Significant EBITDA growth anticipated in 2025** driven by cost deflation benefits, operational improvements, and self-help initiatives, leading to an expected EBITDA of approximately **$4.2 billion** and margin expansion to **22%**.  **[CTVA_3371710_8]**
- **Differentiated Crop Protection products, including new products and Biologicals, are expected to drive growth despite market destocking**, with the Biologicals business expected to **double EBITDA in 2024**.  **[CTVA_3371710_7]**

d5f7d0f8dd73463991be48fb79c46556be5da3dd10e415cd4b122825fb7d2aac

- **Reaffirmed full-year guidance and confidence in achieving 2025 financial targets**: Corteva remains confident in meeting its **2024 operating EBITDA guidance of $3.5 billion to $3.7 billion** and is on track to achieve its **2025 financial targets**, driven by strong Seed performance and anticipated improvements in Crop Protection.  **[CTVA_3382423_8]** ,  **[CTVA_3382423_18]**
- **Strong Seed business with continued growth and market leadership**: The Seed business is experiencing robust demand, particularly in North America, with the **Enlist technology expected to be planted on about 60% of U.S. soybean acres in 2024**, reinforcing its position as the **#1 selling soybean technology in the U.S.**  **[CTVA_3382423_8]** ,  **[CTVA_3382423_15]**
- **Expected improvement in Crop Protection in the second half of 2024**: Corteva anticipates its Crop Protection business to return to volume growth in the second half of 2024 as channel inventory destocking subsides, particularly in Latin America, enhancing margins through new product introductions and cost actions.  **[CTVA_3382423_8]** ,  **[CTVA_3382423_9]** ,  **[CTVA_3382423_16]**

38321f12d61c3e41fac5df60e2438d3c29a8fe31830357407909e740c6cc5a80

- **Corteva's Crop Protection segment is expected to experience year-over-year declines in revenue and EBITDA in the first half of 2024** due to residual impacts of destocking and competitive pressures, with anticipated improvements not sufficient to offset first-quarter losses.  **[CTVA_3382423_8]**
- **Total company pricing is projected to be slightly down for the year**, as **Crop Protection price declines more than offset low single-digit Seed price gains**, potentially leading to increased cost pressures and margin compression.  **[CTVA_3382423_6]**
- **Regulatory uncertainty regarding dicamba may impact Seed demand and sales**, as farmers hesitate to make purchasing decisions, affecting Corteva's seed strategy and potentially impacting sales in the coming seasons.  **[CTVA_3382423_10]**

62ef09542d50913e1a559954f705e21802258cee4fd0f9b3f2012664d01b6375

- **Continued pricing pressure in the Crop Protection (CP) business is impacting margins.** Executives acknowledge ongoing competitive pricing dynamics in CP, with concerns about the uncertainty of market stabilization and timing of recovery.  **[CTVA_3395990_8]** ,  **[CTVA_3395990_11]** ,  **[CTVA_3395990_9]** ,  **[CTVA_3395990_14]**
- **Lowered full-year guidance due to CP market conditions.** The company reduced its full-year net sales guidance by about **1%** and operating EBITDA by about **2%** versus the prior guidance, primarily because of competitive market dynamics and weather-driven missed applications affecting the CP segment.  **[CTVA_3395990_2]** ,  **[CTVA_3395990_8]** ,  **[CTVA_3395990_11]**
- **Uncertainty regarding 2025 outlook and potential impact on earnings.** There is concern about achieving the 2025 operating EBITDA and margin improvement framework, which is contingent upon CP market stabilization. Analysts also question potential pressure on seed pricing due to tighter farmer margins, which could affect future earnings, although executives expect seed demand to remain stable.  **[CTVA_3395990_8]** ,  **[CTVA_3395990_13]**

d564e2dba2653afbac9d91ea879e7b58b3952115c60fa13d4bbb389ea663609f

- **Significant price declines in the Brazilian Crop Protection market**, with **prices down 18%** in the third quarter due to intense competition and a flat to down market environment  **[CTVA_3406591_14]** . This pressure may continue to impact margins and profitability.
- **Substantial decrease in seed sales**, with **organic seed sales down 17%** and seed volumes down 12% in Q3, primarily driven by a **20% reduction in Argentina's corn planted area**  **[CTVA_3406591_3]** **[CTVA_3406591_1]** . Additionally, **North American seed prices declined by 25%** year-over-year in Q3 due to elevated replant settlements caused by early season floods  **[CTVA_3406591_13]** .
- The company reported an **operating loss in the third quarter** and adjusted full-year EBITDA guidance downward to **$3.4 billion** at the midpoint  **[CTVA_3406591_1]** . With expectations of a **flat Crop Protection market in 2025** and reliance on a significant fourth-quarter performance in Brazil, there are concerns about the company's growth prospects  **[CTVA_3406591_1]** **[CTVA_3406591_2]** .

5ff2d6d1999928a091def06152f474560646730b734b2e286135e4900de7b0c4

1. **Guidance Confidence**  
   **Q:** How confident are you in meeting targets amid challenges?  
   **A:** Management expressed strong confidence in achieving their full-year EBITDA guidance of **$3.5 billion to $3.7 billion**, citing a healthy agricultural economy, steady on-farm demand, and effective cost reduction initiatives targeting **$350 million to $450 million** this year. They highlighted the strong performance of the Seed business, especially in North America, with organic growth fueled by new technology adoption. They anticipate the Crop Protection business to improve in the second half, with benefits from cost deflation and productivity gains.  **[CTVA_3382423_8]** 

2. **Seed Strategy Amid Dicamba Uncertainty**  
   **Q:** How does dicamba uncertainty affect your seed strategy?  
   **A:** Management is closely monitoring the situation around dicamba labeling for 2025. While this year's impact was minimal, they anticipate some farmers currently using Xtend soybeans may switch to their **Enlist** system next year. They've prepared for potential shifts by increasing supply of their **B-Series and A-Series** products. Despite uncertainties, they emphasize their strong portfolio and ability to meet customer needs, with over 100 licensees accessing their technology.  **[CTVA_3382423_10]** 

3. **Brazil Crop Protection Market**  
   **Q:** What's the outlook for generics in Brazil Crop Protection?  
   **A:** Generic imports into Brazil have stabilized to normal rates after previous fluctuations. While new capacity for active ingredients coming off patent is emerging, Corteva focuses on selling differentiated products and value-added services. Management sees no structural changes in market fundamentals and expects the Brazilian market to trend positively, with global Crop Protection industry growth returning in 2025.  **[CTVA_3382423_16]** 

4. **Impact of Corn Disease in Argentina**  
   **Q:** How does corn stunt disease in Argentina affect you?  
   **A:** While corn stunt disease has impacted some farmers' yields, Corteva's seed production was not affected. Management is working closely with customers as they assess planting decisions for the next season, acknowledging that farmers may reconsider corn acreage. The situation could influence demand, but they are prepared to support farmers with their experience dealing with this disease from Brazil.  **[CTVA_3382423_11]** 

5. **Royalty Benefits and FX Impact**  
   **Q:** Can you update on royalty savings and FX effects?  
   **A:** They are on track to achieve the **$100 million** royalty benefit target for 2024, primarily weighted to the first half due to North American sales. Regarding FX, the first quarter was negatively impacted by the Turkish lira, but pricing mostly offset this. They anticipate a small currency benefit in the second half of the year.  **[CTVA_3382423_12]** 

6. **Crop Protection Pricing Dynamics**  
   **Q:** What's driving Crop Protection pricing and margins?  
   **A:** The Crop Protection market is experiencing competitive pressures due to global destocking. Management notes improved conditions in the U.S. and progressing destocking in Europe and Brazil. Despite price competition, their products, including new innovations and the **Spinosyns** franchise, continue to outperform the market. For **Enlist**, they expect high demand and spray rates around **80%**, with volume growth anticipated this year.  **[CTVA_3382423_15]** 

7. **Farmer Input Trade-Down**  
   **Q:** Are farmers trading down due to tighter budgets?  
   **A:** Management hasn't observed significant trade-down in seed or crop protection inputs. Farmers prioritize maximizing yield per acre, as the last bushels contribute to their profit. Even in challenging conditions, as seen in South America, demand for their **biologicals** remained strong, reflecting their products' core value in crop plans.  **[CTVA_3382423_17]** 

8. **2025 Performance Drivers**  
   **Q:** Are 2025 targets and drivers still intact?  
   **A:** Management reaffirmed their 2025 EBITDA target of **$3.9 billion to $4.4 billion**. Key drivers include net pricing gains led by the Seed business, Crop Protection gains from new products and Biologicals, and controllable cost improvements such as royalty benefits and deflation. They foresee increased R&D investment but maintain that the overall financial framework remains intact, building on the 2024 guidance midpoint.  **[CTVA_3382423_18]** 

518e554f007f5de486616a63390d36d835fa05697424b210d6a8587e07fd2173

Corteva Inc (CTVA)

Financials