Corteva (CTVA) Q3 2024 earnings summary

Executive summary

• Third quarter 2024 results were in line with expectations, with net sales down 10% year-over-year to $2.33B, reflecting challenging dynamics in Latin America and competitive pricing pressures.

• Operating loss was reported for Q3, but strong execution led to over $400M in controllable cost savings for the year.

• Seed business showed robust performance in North America with pricing and share gains, while Crop Protection delivered margin growth and benefited from demand for differentiated technology.

• Full-year 2024 guidance was updated to reflect lower revenue expectations due to Latin America headwinds, but margin stability was supported by cost improvements and operational execution.

• Preliminary 2025 outlook anticipates double-digit operating EBITDA growth and margin expansion, driven by new product gains, cost deflation, and continued investment in innovation.

Financial highlights

• Q3 2024 net sales declined 10% year-over-year to $2.33B; YTD net sales down 4% to $12.9B.

• Q3 2024 operating EBITDA was $(100)M, with a margin of (4.3)%; YTD operating EBITDA was $2.85B, down 5%, with a 22% margin.

• Q3 2024 GAAP loss from continuing operations was $519M; YTD net income from continuing operations was $913M, down 22%.

• Q3 2024 diluted loss per share was $(0.76); YTD diluted EPS was $1.29, down 21%.

• Q3 2024 cost of goods sold was $1,565M, down from $1,646M in Q3 2023, mainly due to favorable currency, cost actions, and raw material deflation.

Outlook and guidance

• Full-year 2024 net sales expected at $17.0–$17.2B, down 1% at midpoint; operating EBITDA forecasted at $3.35–$3.45B, up 1% at midpoint.

• Operating EPS expected in the range of $2.50–$2.60, down 5% at midpoint.

• Free cash flow guidance reaffirmed at $1.5–$2.0B; cash from operations projected at $2.1B–$2.6B.

• 2025 preliminary outlook: net sales $17.3–$17.7B, operating EBITDA $3.6–$4.0B, with double-digit EBITDA growth and margin expansion.

• $400M cost improvements expected in 2025, driven by lower commodity costs, deflation, and productivity.