Corteva (CTVA) Bank of America 2026 Global Agriculture and Materials Conference summary

Business performance and financial highlights

• Achieved strong 2025 results with $2.9 billion EBITDA, $1.8 billion free cash flow, and 97% asset utilization.

• Ammonia market remains structurally strong, with global demand at 200 million tons and only 15–17 million tons traded seaborne.

• U.S. operations benefit from low-cost production, efficient logistics, and proximity to high-demand agricultural regions.

• DEF (diesel exhaust fluid) is a growing market, driven by higher dosing rates in new equipment and regulatory requirements.

• Nitrogen demand expected to grow in 2026, supported by global dietary improvements, ethanol production, and livestock trends.

Market dynamics and strategic positioning

• New U.S. Gulf Coast ammonia capacity is slow to come online, while demand and pricing remain robust.

• Midwest ammonia supply is constrained by pipeline capacity and storage infrastructure, limiting the ability of new Gulf Coast plants to penetrate the region.

• Urea and UAN markets remain tight, with value creation focused on upgrading ammonia to higher-value products.

• Global trade flows are impacted by policy uncertainty in Europe (CBAM), leading to cautious export strategies and potential shortfalls.

• Low-carbon ammonia is positioned as a future growth area, with strong partnerships and regulatory clarity in markets like Japan.

Operational and investment strategies

• Modular construction and fixed-price contracts are used to manage CapEx inflation for new plant development.

• Trinidad operations face ongoing gas supply and pricing uncertainties, affecting long-term investment decisions.

• Gas hedging strategies focus on minimizing volatility, with a mix of forward contracts and cash market participation.

• Logistics rely on multi-modal transport, with emphasis on pipeline, barge, and rail efficiency; infrastructure maintenance is critical.

• Precision agriculture and multiple nitrogen applications have driven yield improvements, with synthetic nitrogen remaining central to crop productivity.