Corteva (CTVA) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 results with low single-digit top-line growth, double-digit operating EBITDA growth, and margin expansion above 22%, supported by disciplined execution and demand for differentiated technologies.

• Seed and crop protection businesses delivered organic growth and share gains across major regions, with robust cash generation and over $1.5 billion returned to shareholders.

• Announced a comprehensive agreement with Bayer, accelerating licensing opportunities, expanding technology access, and resolving litigation, with royalty neutrality expected in 2026.

• Progressed on planned separation into two companies, targeting completion in the second half of 2026, with key milestones and leadership announcements expected in 2025 and 2026.

• Strong global demand for grain, oilseeds, and biofuels expected to continue in 2026, with steady on-farm demand and government support for U.S. farmers.

Financial highlights

• Full-year 2025 net sales increased 3% to $17.4B; organic sales up 4% year-over-year, with gains in all regions.

• Operating EBITDA up 14% to $3.85B, with margin expansion of 215 basis points to over 22%.

• Operating EPS increased to $3.34 from $2.57 in 2024, up 30% year-over-year.

• Free cash flow improved by $1.2B to $2.9B, up 69% year-over-year, with 74% FCF/EBITDA conversion.

• Returned $1.5B to shareholders in 2025 via dividends and share repurchases.

Outlook and guidance

• 2026 operating EBITDA guidance of $4.0–$4.2B, a 7% increase at the midpoint, with margin of 22–23%.

• Operating EPS expected at $3.45–$3.70, up 7% at the midpoint.

• Free cash flow in 2026 will be impacted by separation costs and the Bayer agreement, with ~$80M in estimated global tariff impacts.

• Targeting $500M in share repurchases in the first half of 2026.

• Guidance does not factor in extreme weather, major operational disruptions, or significant macroeconomic shocks.