Corteva (CTVA) Q4 2024 earnings summary

Executive summary

• Achieved record 20% operating EBITDA margin for 2024, with $3.4B operating EBITDA, flat year-over-year, and $1.7B free cash flow, a 50% FCF/EBITDA conversion, despite challenging market conditions.

• Returned $1.5B to shareholders in 2024 via dividends and buybacks; planning $1B in share repurchases for 2025.

• Seed segment maintained #1 U.S. brand, gained market share, and reached 65% Enlist E3 soybean penetration; Crop Protection delivered strong Q4 margin expansion, led by Brazil.

• 2025 guidance targets 10% operating EBITDA growth at midpoint, 100–150 bps margin expansion, and operating EPS of $2.70–$2.95.

• Cash from operations reached $2.3B, supporting capital returns and investment flexibility.

Financial highlights

• Q4 2024 net sales rose 7% year-over-year to $4.0B; organic sales up 13%.

• Q4 operating EBITDA increased 36% to $525M; margin expanded 278 bps to 13.2%.

• Full-year 2024 net sales declined 2% to $16.9B; organic sales up 1%.

• Full-year operating EBITDA was $3.4B, margin reached 20.0%, up 34 bps year-over-year.

• Free cash flow improved to $1.7B, a 50% conversion rate.

Outlook and guidance

• 2025 operating EBITDA expected at $3.6–$3.8B, up 10% at midpoint; margin expected at 21.0–21.5%.

• Operating EPS guidance: $2.70–$2.95, up 10% at midpoint; free cash flow/EBITDA conversion expected at 40–45%.

• 2025 net sales expected between $17.2B and $17.6B, up 3% at midpoint.

• 100–150 basis points of margin expansion expected in 2025.

• $1B in share repurchases planned for 2025.