Corteva Q2 2025 presentation: Raises full-year guidance on strong margin expansion

Introduction & Market Context

Corteva Inc (NYSE:CTVA) presented its second quarter 2025 earnings results on August 7, 2025, highlighting strong financial performance and raising its full-year guidance. The agricultural sciences company reported robust growth in both its Seed and Crop Protection segments, driven by pricing gains, increased volume, and significant cost improvements.

The company’s performance comes amid favorable agricultural market conditions, with record consumption of grains and oilseeds globally and strong on-farm demand. Corteva noted that while the overall agricultural outlook remains positive, some uncertainty persists regarding global trade policy.

Quarterly Performance Highlights

Corteva delivered impressive financial results for Q2 2025, with net sales reaching $6.5 billion, a 6% increase compared to the prior year. Operating EBITDA grew 13% year-over-year to $2.2 billion, while Operating EBITDA margin expanded by 215 basis points to 33.5%.

The company’s strong performance was reflected in its earnings per share metrics, with GAAP EPS of $2.02 representing a 34% increase from Q2 2024, and Operating EPS of $2.20 showing a 20% year-over-year improvement.

As shown in the following detailed quarterly performance breakdown:

First Half 2025 Financial Analysis

For the first half of 2025, Corteva reported net sales of $10.9 billion, a 3% increase versus the prior year, while organic sales grew 5% to $11.1 billion. Operating EBITDA for the period reached $3.4 billion, up 14% year-over-year, with Operating EBITDA margin expanding by 301 basis points to 30.8%.

The strong first-half performance was driven by Seed pricing gains, particularly in North America and EMEA, along with Crop Protection volume growth from new products and biologicals. Productivity improvements and lower input costs also contributed significantly to margin expansion, despite currency headwinds primarily from the Turkish Lira and Canadian Dollar.

The following chart illustrates the key financial metrics for the first half of 2025:

A detailed breakdown of the drivers behind the Operating EBITDA growth shows the positive impact of pricing, volume, and cost improvements, partially offset by currency headwinds:

Segment Performance

Corteva’s Seed segment delivered strong results in the first half of 2025, with net sales of $7.2 billion (+2% year-over-year) and organic sales growth of 5%. Operating EBITDA for the segment increased 11% to $2.7 billion, with margin expanding by 280 basis points to 37.3%.

The performance was driven by pricing gains in most regions due to strong demand for technology, higher corn volumes offsetting lower soybean acres, and cost benefits from productivity and lower commodity costs.

The following chart provides a detailed breakdown of the Seed segment’s performance:

In the Crop Protection segment, Corteva reported continued momentum in new products and biologicals. For the first half of 2025, the segment achieved organic sales growth despite pricing pressures, with Operating EBITDA margin expanding significantly due to volume growth and cost savings.

The segment breakdown shows the diverse product portfolio within Crop Protection:

Updated Guidance

Based on the strong first-half performance and confidence in second-half assumptions, Corteva raised its full-year 2025 guidance. The company now expects Operating EBITDA of $3.75-$3.85 billion, representing 13% growth at the midpoint compared to the previous guidance of $3.6-$3.8 billion.

Operating EBITDA margin is expected to improve by approximately 150 basis points, up from the previous guidance of 100-150 basis points. Operating EPS guidance was raised to $3.00-$3.20 (21% growth at midpoint) from $2.70-$2.95, and Free Cash Flow / EBITDA conversion was increased to approximately 50% from 40-45%.

The following chart details the updated guidance compared to prior expectations:

Strategic Initiatives

Corteva highlighted several key strategic initiatives driving its performance and future growth. The company continues to focus on innovation, with new products and biologicals delivering meaningful growth in the Crop Protection segment.

Productivity and cost improvements remain central to Corteva’s strategy, with net cost of sales improvement increased to $450 million for the full year. The company also remains committed to shareholder returns, with approximately $1 billion in share repurchases planned for 2025.

The CEO’s key messages emphasize the company’s strategic focus and market outlook:

Forward-Looking Statements

Looking ahead to the second half of 2025, Corteva expects continued strong performance with some differences in drivers compared to the first half. The company anticipates increased corn area in Brazil and Argentina, low-single-digit Seed price increases, and double-digit volume growth in Crop Protection.

However, Corteva also expects Crop Protection pricing to decline in the low-to-mid-single digits and currency headwinds to continue, primarily driven by the Brazilian Real hedge impact. Modest productivity and raw material cost savings are expected to partially offset these challenges.

The key takeaways from the presentation highlight Corteva’s confidence in its full-year outlook:

Corteva’s strong performance in the first half of 2025 demonstrates the company’s ability to execute effectively in a favorable agricultural market environment. With raised guidance for the full year and continued focus on innovation, productivity, and shareholder returns, Corteva appears well-positioned to deliver on its strategic objectives for 2025.

Full presentation:

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