Corteva, Inc.
CTVA · NYSE
Next quarter
Reports Nov 3, 2026.
Consensus is -$0.41 EPS for Sep 2026 across 7 estimates, ranging -$0.55 to -$0.30.
CTVA Jun 2026
- 2.68%
- -11.90%
- $2.24
- $2.30
- —
- $6.38B
Reported results
- $6.38B
- 57.39%
- $1.16B
- $1.73
Highlights
- Operating earnings: Operating EPS was $2.30, up from $2.20 a year ago and $1.07 in Q1, beating the $2.24 consensus by 2.68%; operating EBITDA rose 4% to $2.261 billion.
- GAAP result: Net income attributable to Corteva was $1.161 billion, or $1.73 diluted EPS, versus $1.314 billion and $1.92 a year ago; the prior quarter reported $720 million and $1.07 per share.
- Sales: Revenue was $6.379 billion, down 1% year over year from $6.456 billion but up from $4.91 billion in Q1; a 3% volume decline outweighed 1% price and 1% currency benefits.
- Seed resilience: Seed sales were essentially flat at $4.532 billion, while operating EBITDA increased 6% to $1.966 billion, supported by technology mix, out-licensing income and productivity actions.
- Crop Protection pressure: Crop Protection sales fell 4% to $1.847 billion, although operating EBITDA rose 2% to $342 million; pricing pressure in Latin America, lower North American demand and dry weather in EMEA weighed on volumes.
- Margin actions: Cost of goods sold declined to $2.718 billion from $2.932 billion, reducing COGS to 43% of sales from 45%; savings came from productivity actions and lower net royalty expense.
- Separation and restructuring: The proposed Seed/Crop Protection separation generated $79 million of Q2 costs and $131 million year to date; 2026 restructuring actions are expected to deliver $115 million-$125 million of annual run-rate savings by 2027.
- Cash and funding: Operating cash flow was negative $3.357 billion in the first half, including a $1.061 billion June pension contribution; cash fell to $2.365 billion while short-term borrowings rose to $3.193 billion.
- Legal charges: FTC-related settlements generated a $36 million pretax Q2 charge and $121 million year to date; discontinued operations also recorded a $52 million after-tax PFAS and environmental charge.
Analysis
Corteva’s June quarter was an operating beat beneath a softer GAAP headline. Operating EPS of $2.30 exceeded the $2.24 consensus by 2.68% and rose from $2.20 a year ago, while operating EBITDA increased 4% to $2.261 billion. GAAP diluted EPS was $1.73, down from $1.92 in Q2 2025 but well above Q1’s $1.07; net income attributable to Corteva was $1.161 billion versus $1.314 billion a year ago and $720 million in the prior quarter. Revenue of $6.379 billion declined 1% year over year, reflecting a 3% volume decline partly offset by price and currency, but rose seasonally from $4.91 billion in Q1.
The print was defined by a widening operating contrast between the segments. Seed sales were flat at $4.532 billion, but EBITDA grew 6% to $1.966 billion on technology mix, licensing and productivity. Crop Protection sales fell 4% to $1.847 billion, though EBITDA edged up 2% to $342 million as cost actions offset volume and pricing pressure. The separation of the businesses is already affecting the cost base: separation expenses were $79 million in the quarter, with $131 million incurred year to date. Cash conversion was weak, with first-half operating cash flow of negative $3.357 billion after a $1.061 billion pension contribution, while litigation and PFAS charges further depressed GAAP earnings.
Operating performance
Underlying profitability improved despite lower sales. Operating EBITDA increased to $2.261 billion from $2.164 billion, and operating EPS rose to $2.30 from $2.20. Cost of goods sold fell $214 million year over year to $2.718 billion, reducing COGS as a share of revenue to 43% from 45%. Management attributed the improvement to cost and productivity actions, lower net royalty expense, favorable price and mix, and currency, partly offset by lower volume and higher R&D.
- Sales bridge: Revenue declined $77 million, or 1%, as a 3% volume decline outweighed 1% price and mix improvement and a 1% favorable currency effect.
- Research investment: R&D increased to $388 million from $375 million, driven by salaries, contract labor, field, lab and facilities costs, and unfavorable currency.
- Tax and below-the-line items: The GAAP effective tax rate was 25.1%, versus 23.4% a year earlier; other expense was $115 million compared with $103 million of other income last year.
Seed performance
Seed was the quarter’s main source of operating strength. Sales of $4.532 billion were nearly unchanged from $4.537 billion despite lower corn revenue, as soybean and other oilseed sales increased. Operating EBITDA rose $103 million to $1.966 billion, with pricing and mix benefiting from demand for leading technology and increased out-licensing income.
- Corn: Sales fell to $2.868 billion from $2.961 billion, with a 3% organic decline driven mainly by lower volume.
- Soybean: Sales increased to $1.318 billion from $1.257 billion, a 5% organic increase supported by price and volume.
- Geography: North American Seed sales were stable at $3.955 billion, while Latin America increased to $160 million from $154 million; EMEA declined to $272 million from $282 million.
Crop Protection pressure
Crop Protection remained commercially challenged, but profitability held up better than sales. Revenue declined $72 million, or 4%, to $1.847 billion, with organic sales down 6% as price and mix and volume both deteriorated. Operating EBITDA nonetheless rose to $342 million from $334 million because productivity and cost actions offset the weaker top line.
- North America: Sales fell to $593 million from $675 million, reflecting a 12% decline driven by lower price and volume and channel purchase timing.
- Latin America: Sales were broadly flat at $519 million, but the region faced competitive pricing pressure.
- Asia Pacific: Sales rose to $277 million from $261 million, with broad-based volume growth helping offset currency.
- Product mix: Herbicides declined to $932 million from $995 million, fungicides to $263 million from $342 million, while Crop Protection “Other” sales rose to $167 million from $49 million.
Separation and restructuring
Corteva is actively preparing to separate Seed and Crop Protection into two independent public companies, and the transition is visible in both expenses and the organization. Separation costs were $79 million in Q2 and $131 million in the first half, mainly for financial advisory, IT, legal, accounting and consulting work. The company also recorded $141 million of restructuring and asset-related charges in the first half.
- 2026 actions: The workforce and support-function program recorded $78 million of charges through June and is expected to be substantially complete by December 2026.
- Expected savings: The 2026 actions are expected to produce $115 million-$125 million of annual run-rate savings by 2027.
- Crop Protection footprint: The manufacturing restructuring program, including the planned Asturias, Spain cessation and the Pittsburg, California exit, is expected to generate total pretax charges of $750 million-$815 million; $674 million had been recorded through Q2.
Cash, capital and liabilities
Cash generation was the weakest part of the quarter’s financial profile. First-half operating cash flow was negative $3.357 billion, compared with negative $1.162 billion a year earlier, primarily reflecting working-capital movements and a $1.140 billion pension contribution. Corteva continued shareholder returns but relied more heavily on short-term funding.
- Liquidity: Cash and cash equivalents were $2.365 billion at June 30, down from $4.521 billion at December 31, 2025; total cash including restricted amounts was $2.619 billion.
- Borrowings: Short-term borrowings increased to $3.193 billion from $1.942 billion a year earlier, including $2.422 billion of commercial paper and $600 million drawn under a 364-day revolving facility.
- Pension: Corteva contributed $1.061 billion to its principal U.S. pension plan in June and made a further $399 million contribution in July, for an intended total discretionary contribution of approximately $1.5 billion.
- Capital returns: The company repurchased $500 million of stock and paid $241 million of dividends in the first half, returning approximately $740 million to shareholders.
Legal and environmental charges
Litigation and legacy environmental matters continued to separate GAAP earnings from operating performance. FTC-related settlements produced a $36 million pretax Q2 charge, or $27 million after tax and $0.04 per share, taking the first-half pretax charge to $121 million. Discontinued operations also recorded a $52 million after-tax charge in Q2 for PFAS litigation and remediation matters.
- FTC matters: Corteva reached agreements covering the FTC, Arkansas and multidistrict litigation claims; the settlements were entered without admitting wrongdoing and remained subject to court approval as of June 30.
- Bayer settlement: Corteva agreed to pay Bayer $610 million in January 2026; approximately $546 million had been paid through Q1, with the remainder due by September 15, 2026.
- PFAS exposure: The company reported $580 million of accrued environmental obligations and $586 million of potential exposure above accrued amounts, partly offset by $363 million of indemnification assets.
