Corteva (CTVA) Q2 2026 earnings summary

Executive summary

• First-half 2026 net sales rose 4% year-over-year to $11.3B, with operating EBITDA up 10% to $3.7B and operating EPS up 14%, driven by robust execution and strong demand for advanced technology in both Seed and Crop Protection segments.

• Achieved organic growth across all regions, with margin expansion and resilience in both segments.

• On track to complete the planned separation into two independent companies by October 1, 2026, with key milestones, leadership transitions, and regulatory filings progressing as scheduled.

• Raised full-year 2026 guidance for Operating EBITDA to $4.1–$4.3B and Operating EPS to $3.60–$3.80, reflecting confidence in continued operational momentum.

• Innovation and industry recognition advanced through the Biotelliga acquisition and multiple product awards.

Financial highlights

• 1H 2026 net sales reached $11.3B, up 4% year-over-year; 2Q 2026 net sales were $6.38B, down 1% year-over-year; 1H 2026 Operating EBITDA grew 10% to $3.7B, with margin up to 32.8%.

• 2Q 2026 Operating EBITDA rose 4% to $2.26B, margin up 193 bps to 35.4%; 1H 2026 Operating EPS was $3.80, up from $3.33.

• Price/mix, volume, cost performance, and currency all contributed to EBITDA growth; improved seed net royalties and cost actions supported results.

• Returned nearly $8B to shareholders since 2019 and invested $9B in R&D; $740M returned in H1 2026 via share repurchases and dividends.

• Cash flow from operations for 1H 2026 was $(3.35)B, reflecting working capital outflows and pension contributions.

Outlook and guidance

• Full-year 2026 Operating EBITDA guidance raised to $4.1–$4.3B (up 9% at midpoint); Operating EPS expected at $3.60–$3.80 (up 11% at midpoint); margin outlook 22.5%–23.5%.

• Second-half EBITDA expected to be flat year-over-year, with all earnings delivered in Q4 due to seasonal patterns and separation-related costs.

• Guidance assumes LSD-MSD organic growth in both Seed and Crop Protection for 2H 2026; key sensitivities include Brazil demand/pricing, currency, and cost savings.

• Net dis-synergies from separation largely offset, with only a $25M headwind expected in 2026.

• Long-term 2027 EBITDA target of $4.4B reaffirmed.