Corteva (CTVA) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with operating EBITDA margin above 22%, strong free cash flow of $2.9B, and over $1.5B returned to shareholders through dividends and buybacks.

• Demand for differentiated technologies and disciplined execution drove growth in Seed and Crop Protection segments, with global demand for grain, oilseeds, and biofuels expected to continue in 2026.

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

• Finalized comprehensive resolution with Bayer, accelerating licensing opportunities, technology access, and royalty neutrality to 2026, with $610M payment completed.

Financial highlights

• Full-year 2025 net sales grew 3% to $17.4B, with organic sales up 4% and gains in both Seed and Crop Protection segments.

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

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

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

• Operating EPS increased to $3.34 from $2.57 in 2024.

Outlook and guidance

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

• Operating EPS expected at $3.45–$3.70, up 7% at the midpoint, with margin expansion of about 50 basis points.

• Free cash flow in 2026 will be impacted by separation costs and the Bayer agreement, but otherwise expected to align with long-term targets.

• Guidance includes ~$80M in estimated global tariff impacts for 2026.

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