Corteva to split into two companies by second half of 2026

INDIANAPOLIS - Agricultural technology company Corteva Inc (NYSE:CTVA), currently valued at $45.93 billion and maintaining a strong financial health score according to InvestingPro, announced Wednesday its board has unanimously approved a plan to separate into two independent, publicly traded companies, dividing its crop protection and seed businesses.

The tax-free separation, expected to be completed in the second half of 2026, will create "New Corteva" comprising the current crop protection business, and "SpinCo" containing the seed business, including the Pioneer brand. The company’s current revenue stands at $17.18 billion, with InvestingPro data showing consistent dividend growth of 12.5% and historically low price volatility, suggesting stable market performance.

Current Corteva CEO Chuck Magro will become CEO of SpinCo, while current Chair Greg Page will serve as Chair of New Corteva. The company plans to announce full management teams for both entities at a later date.

"As we look to the future, we want to best position both businesses to win in their respective markets and accelerate value for shareholders," Magro said in the press release. "The seed and crop protection markets have evolved, and as a result, we see the opportunities ahead for both companies diverging."

New Corteva, with estimated 2025 net sales of $7.8 billion (44% of current Corteva sales), will focus on operational excellence and differentiated solutions, including biologicals. The company described it as operating in an industry that "will need to compete differently in the future." Operating with moderate debt levels and maintaining a healthy current ratio of 1.68, the company appears well-positioned for this strategic shift. For detailed analysis and additional insights, investors can access comprehensive Pro Research Reports available on InvestingPro.

SpinCo, with projected 2025 net sales of $9.9 billion (56% of current Corteva sales), will leverage advanced genetics and the century-old Pioneer brand. The company characterized SpinCo as "a classic growth compounder" that will pursue opportunities in out-licensing, hybrid wheat, biofuels and gene editing.

Both companies will target investment-grade credit ratings with capital allocation strategies tailored to their respective business models.

Corteva reaffirmed its full-year 2025 guidance and said its 2027 value framework remains intact. The separation will be structured as a spin-off of the seed business that is intended to qualify as tax-free for U.S. federal tax purposes. Based on current market conditions and the company’s strong financial metrics, including positive net income growth expectations and an Altman Z-Score of 3.31 indicating financial stability, analysts maintain a bullish consensus on the stock’s prospects.

Lazard and Morgan Stanley are serving as financial advisors on the transaction.

In other recent news, Corteva announced plans to divide into two independent companies, separating its Crop Protection and Seed businesses. The company intends to execute this separation through a spin-off of the Seed business. This development has sparked discussions and concerns among investors about potential operational disruptions and value dilution. Despite these concerns, several analyst firms have maintained their positive outlook on Corteva. Jefferies reiterated its Buy rating with a $92 price target, addressing market discussions about the split possibly being motivated by glyphosate-related risk concerns. UBS also maintained its Buy rating with a $91 price target, highlighting potential benefits such as increased focus and liability shielding for the Seed business. Additionally, KeyBanc Capital Markets kept its Overweight rating and $85 price target, though it expressed skepticism about the benefits of the rumored separation. These analyst ratings suggest a continued confidence in Corteva’s future prospects amid the potential business split.

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