Corteva, Inc.

Second quarter net sales were $6.4 billion and operating EBITDA increased 4% to $2.3 billion. First-half net sales increased 4% to $11.3 billion, organic sales grew 2%, operating EBITDA increased 10% to $3.7 billion, and operating EPS increased 14%. First-half margin expanded to 32.8%, and management said nearly 200 basis points of margin expansion came from continued value capture in seed, productivity improvements, and disciplined cost management. Full-year 2026 guidance was raised to operating EBITDA of $4.1 billion to $4.3 billion, operating EBITDA margin of 22.5% to 23.5%, and operating EPS of $3.60 to $3.80 per share. Management said the midpoint of the updated guide implies approximately 9% EBITDA growth and 11% EPS growth versus last year. For second half 2026, management expects seed organic sales growth in low single digits, crop protection volumes up high single digits, and crop protection pricing down low to mid single digits; second-half EBITDA is expected to be about flat versus last year.

Charles Victor Magro framed the quarter as proof that Corteva’s differentiated technology, productivity discipline, and commercial execution are working. He repeatedly emphasized that demand is being driven by farmers prioritizing yield, productivity, and return on investment, while noting the company is stronger in technology, licensing, and innovation than it was several years ago. His tone was confident but measured: he acknowledged ongoing pricing pressure, geopolitical and weather risks, and tight farmer margins, while saying the company is entering the second half with a favorable outlook and confidence in the raised guide.

David Johnson focused on the financial bridge behind the results: first-half EBITDA rose by about $350 million to $3.7 billion, with roughly $100 million from price and mix, about $40 million from volume, more than $160 million from cost performance, about $85 million from currency, and $90 million from improved seed net royalties. He highlighted first-half margin expansion to 32.8% and said the company expects crop protection and seed to continue benefiting from productivity savings in the second half. On cash, he said first-half cash flow was affected by the Bayer agreement one-time separation items and the pension contribution, including $1.1 billion contributed to the pension plan; absent those items, he said full-year free cash flow conversion would be in line with the midterm target, or about the 45% to 50% range of EBITDA.

Analysts pressed on Brazil corn acres, seed pricing/mix, and whether Conkesta penetration is on track; management said the order book is ahead of the market, pricing in Latin America has been strong, and Conkesta E3 penetration is expected to reach high single digits to low double digits in 2027. Questions also focused on crop protection pricing pressure in Brazil and whether it is becoming structural; management said it is not the new normal, that the market is well supplied but still growing, and that Corteva can preserve margins by adjusting price and cost when products come off patent. In the final notable exchanges, management said the long-term growth path is still consistent with prior plans, with licensing ahead of plan and the new crop protection product portfolio approaching $2 billion of revenue this year.