Corteva — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third-quarter 2026 Net Sales were $1.59 billion, a 9% decrease year-over-year; Organic Sales were $1.58 billion, also down 9%.
• Year-to-date 2026 Net Sales were $5.36 billion, a 1% decrease year-over-year; Organic Sales were $5.20 billion, down 4%.
• Third-quarter Pro Forma GAAP income from continuing operations after taxes was a loss of $54 million, compared to $60 million in the prior year period (a 190% decline).
• Year-to-date Pro Forma GAAP income from continuing operations after taxes was $112 million, a 68% decrease from the prior year.
• Third-quarter Adjusted Pro Forma Operating EBITDA was $222 million, down 17% year-over-year, with a margin erosion of 140 basis points.
• Year-to-date Adjusted Pro Forma Operating EBITDA was $943 million, flat year-over-year, with a margin expansion of 30 basis points to 17.6%.
• Third-quarter Adjusted Pro Forma Operating EPS was $0.06, down 57% year-over-year.
• Year-to-date Adjusted Pro Forma Operating EPS was $0.76, up 49% year-over-year.
• Third-quarter volume declined 2% year-over-year, while price declined 7%.
• Year-to-date volume was flat, while price declined 4%.

Guidance and Future Outlook:

• Full-year 2026 Adjusted Pro Forma Operating EBITDA guidance updated to a range of $1.1 billion to $1.125 billion.
• Full-year 2026 Adjusted Pro Forma Operating EPS guidance updated to a range of $0.76 to $0.80 per share.
• Guidance reflects weaker market conditions than previously anticipated, specifically in Brazil.
• The Company expects to record approximately $130 million to $140 million in net pre-tax restructuring charges during 2026 for Crop Protection network optimization activities, expected to be substantially complete in 2028.
• The Company is unable to reconcile forward-looking non-GAAP financial measures to the most comparable U.S. GAAP measures due to the inability to predict items outside its control, such as Significant Items, with reasonable certainty.

Business Segments and Product Lines:

• North America reported 7% Organic Sales growth in Q3 2026, driven by 19% volume growth from new products and early demand offsetting U.S. acetochlor pricing headwinds.
• EMEA reported 14% Organic Sales growth in Q3 2026, driven by strong demand for new and differentiated products while holding price flat.
• Latin America reported a 31% Organic Sales decline in Q3 2026, with volume down 24% due to elevated channel inventory, delayed purchasing from farmer liquidity constraints, and high interest rates; price declined 7% due to competitive pressure on mature molecules.
• Asia Pacific reported 5% Organic Sales growth in Q3 2026, led by 7% volume growth from strong demand for new products, though price declined 2% due to a competitive environment.
• New product sales growth was strong across all regions except Latin America.
• Pricing pressure was concentrated in North America (acetochlor) and Latin America (molecules late in lifecycle).

Market and Competitive Landscape:

• Crop Protection market conditions have become more challenging, particularly in Brazil, due to farmer liquidity constraints, elevated financing costs, just-in-time purchasing, and increased pricing pressure.
• Demand for differentiated new products remains strong, and regional performance outside Latin America has been resilient.
• Agricultural fundamentals continue to be supported by the need for growers to improve productivity and protect yield.
• The Company faces competitive dynamics on molecules late in their lifecycle in Brazil and U.S. acetochlor.

Risks and Challenges:

• Risks include failure to obtain regulatory approvals, failure to commercialize the pipeline, and public acceptance of technology.
• Risks related to competition, regulatory compliance costs, and environmental laws.
• Risks include climate change, unpredictable weather, and changes in agricultural policies.
• Risks related to geopolitical conflict, input cost volatility, and supply chain disruptions.
• Risks include dependence on third parties for raw materials and the potential for customer payment failures.
• Risks related to the separation from DowDuPont and the separation of the Seed business, including unexpected costs, litigation, and fraudulent conveyance claims.
• Risks include intellectual property disputes, counterfeit products, and risks related to sustainability matters.

Management Commentary and Tone:

• CEO Luke Kissam stated, "We executed well against the things we can control. New products performed strongly, productivity delivered, and we generated broad-based organic growth outside Latin America."
• Management noted that while conditions in Brazil were materially weaker than anticipated, the strategy has not changed, with innovation, productivity, and disciplined execution remaining the foundation for sustainable long-term growth.
• Management characterized the pressure as concentrated, with U.S. acetochlor pricing consistent with expectations but Brazil significantly weaker.

Other Key Points:

• The Board of Directors authorized the first common dividend post-spin.
• The Company will host a live webcast of its third quarter 2026 earnings conference call on November 12, 2026, at 10:30 a.m. ET.
• The Company is a global crop protection company with a portfolio including conventional chemistries, advantaged biologicals, seed-applied technologies, and nature-inspired products.
• Non-GAAP measures used include Organic Sales, Adjusted Pro Forma Operating EBITDA, and Adjusted Pro Forma Operating EPS, which exclude currency, portfolio impacts, significant items, and separation costs.