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 and an operating loss, reflecting challenging dynamics in Latin America and competitive pricing pressures.

• Crop Protection delivered earnings and margin growth, benefiting from demand for differentiated technology, initial deflation benefits, and volume gains in new products and biologicals.

• Seed business showed strong year-to-date performance, with pricing gains and share growth in North America, but faced significant declines in Latin America and a Q3 EBITDA loss.

• Over $400 million in controllable cost savings targeted for 2024, supporting margin stability despite lower revenue expectations.

• 2025 is expected to return to double-digit operating EBITDA growth and margin expansion, driven by cost improvements, innovation, and a robust product pipeline.

Financial highlights

• Q3 2024 net sales declined 10% year-over-year to $2.33B; YTD net sales down 4% to $12.93B.

• Q3 2024 operating EBITDA was $(100)M, with a margin of (4.3)% and a net loss from continuing operations of $519M; YTD operating EBITDA was $2.85B, down 5% year-over-year, with a 22% margin.

• Q3 2024 GAAP EPS was $(0.76); YTD GAAP EPS was $1.29, down 21% year-over-year.

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

• Operating EPS expected at $2.50–$2.60, down 5% year-over-year; free cash flow guidance reaffirmed at $1.5–$2.0B.

Outlook and guidance

• 2024 full-year EBITDA margin expected at ~20%, with free cash flow conversion rate of 45%–50%.

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

• Seed pricing expected to grow low single digits; crop protection industry expected to be flat in 2025.

• $400M in cost improvements anticipated for 2025, with continued benefits from deflation and productivity.

• Guidance excludes impacts from extreme weather, major operational disruptions, or further macroeconomic shocks.