Vylor — Q3 2026 Earnings Summary

Financial Performance:

• Pro forma net sales for Q3 2026 were $938 million (GAAP), a 1% decrease year-over-year; pro forma organic sales decreased 3%.
• GAAP pro forma loss from continuing operations was $480 million in Q3 2026, compared to a $391 million loss in Q3 2025.
• Adjusted Pro Forma Operating EBITDA for Q3 2026 was a loss of $269 million, a 33% decline year-over-year, resulting in a margin decline of approximately 730 basis points.
• Pro forma net sales for the nine months ended September 30, 2026, were $8.53 billion (GAAP), a 4% increase year-over-year; pro forma organic sales increased 2%.
• GAAP pro forma income from continuing operations for YTD 2026 was $1.01 billion, a 18% decrease year-over-year; EPS was $1.50, a 17% decrease.
• Adjusted Pro Forma Operating EBITDA for YTD 2026 was $2.66 billion, an 8% increase year-over-year; Adjusted Pro Forma Operating EPS was $2.37, a 6% increase.
• Q3 2026 volume decreased 9% overall, with Americas volume down 6% and Rest of World volume down 16%.
• Q3 2026 price/mix increased 6% overall, with Americas up 7% and Rest of World up 5%.
• Americas segment pro forma net sales were $613 million for Q3 2026 (up 3%); YTD sales were $6.76 billion (up 4%).
• Americas segment Adjusted Pro Forma Operating EBITDA was a loss of $84 million for Q3 2026 (improvement of 19% vs. prior year); YTD EBITDA was $2.88 billion (up 11%).
• Rest of World segment pro forma net sales were $325 million for Q3 2026 (down 7%); YTD sales were $1.77 billion (up 4%).
• Rest of World segment Adjusted Pro Forma Operating EBITDA was $92 million for Q3 2026 (down 31%); YTD EBITDA was $555 million (down 2%).
• Corn sales accounted for $607 million in Q3 2026 (up 4%) and $5.85 billion YTD (up 4%).
• Soybean sales accounted for $133 million in Q3 2026 (down 26%) and $1.80 billion YTD (flat).
• Other Oilseeds sales accounted for $150 million in Q3 2026 (up 11%) and $621 million YTD (up 13%).

Guidance and Future Outlook:

• The company reaffirmed full-year 2026 guidance, expecting Adjusted Pro Forma Operating EBITDA to be approximately $2.8 billion.
• Full-year 2026 Adjusted Pro Forma Operating EPS is expected to be $2.25 to $2.35 per share.
• The 2029 Financial Framework targets net sales of approximately $11.2 billion to $11.9 billion by 2029, representing 3% to 4% annual growth.
• The 2029 Financial Framework targets operating EBITDA of approximately $3.3 billion to $3.7 billion by 2029.
• The 2029 Financial Framework targets approximately 30% operating EBITDA margins by 2029.
• The company expects to deliver approximately $500 million in gross licensing income in 2027 via Vylor One.
• The company expects licensing income to exceed $1 billion by 2035 and approach $2 billion by 2040.

Business Segments and Product Lines:

• Americas YTD results reflected strong demand for latest hybrids and varieties, with price/mix up 3% driven by licensing income and the price-for-value strategy.
• Americas volume was flat YTD, offsetting lower corn acres in North America and Brazil soybean licensing shifts with higher soybean acres in North America and higher corn volumes in Argentina.
• Rest of World YTD results reflected continued demand for top technology, partially offset by weather-related volume impacts.
• Rest of World volume decreased 4% YTD due to reduced corn acreage in Europe and APAC from weather, partially offset by higher sunflower acreage in Europe.
• The company announced a $19 billion technology pipeline anchored by 12 groundbreaking technology platform launches over the next decade.
• Seven new corn technology platforms will launch starting in 2028, including the industry's first trait designed to improve yield and yield stability.
• The company is developing the industry's first gene-edited multi-disease resistant corn platform.
• Four new soybean technology platforms will launch by 2035, including a proprietary next-generation platform for Latin America.
• Xpedite™, the system for proprietary hybrid wheat, is scheduled to launch in North America in 2027.
• Vylor One, the new licensing business, is a key component of the company's growth strategy.

Market and Competitive Landscape:

• The global agricultural environment is described as constructive, supported by strong demand for grains and oilseeds, improved crop prices, and growing demand for renewable fuels.
• Global consumption remains robust, with continued growth in food, feed, and biofuels demand reinforcing the need for agricultural productivity.
• Brazil's expanding production is helping meet rising domestic ethanol demand.
• Farmer margins remain tight, driving focus on maximizing returns per acre and supporting demand for high-performing seed and advanced genetics.
• Weather factors, including El Niño effects, and trade dynamics remain sources of uncertainty and commodity-price volatility.

Risks and Challenges:

• Risks include failure to obtain or maintain necessary regulatory approvals for products.
• Risks include failure to successfully develop and commercialize the company's pipeline.
• Risks include the effect of public understanding and acceptance of biotechnology and agricultural products.
• Risks include the effect of climate change and unpredictable seasonal and weather factors.
• Risks include geopolitical and military conflict, as well as volatility in input costs.
• Risks include dependence on third parties for seed production or licenses and commercialization.
• Risks related to the spin-off include potential liabilities from fraudulent conveyance laws and legal distribution requirements.
• Risks include the effect of competition in the industry and the establishment of intermediary platforms by competitors.

Management Commentary and Tone:

• CEO Chuck Magro stated the separation marked an important milestone, positioning the company to move faster and capitalize on opportunities.
• Management highlighted that strong YTD performance demonstrates the essential nature of the business, the strength of the innovation pipeline, and the benefits of disciplined operational execution.
• Management noted the delivery of meaningful EBITDA growth and margin expansion driven by strong demand for industry-leading technologies and productivity improvements.
• Management expressed confidence in the 2029 financial framework and stated the company remains on track to deliver 2026 commitments.
• The tone emphasized the successful completion of the separation on time and under budget, reflecting the work of the teams.

Other Key Points:

• On October 22, 2026, the Board of Directors authorized a common stock dividend of $0.13 per share, payable December 7, 2026.
• The Board authorized a new $3 billion multi-year share repurchase program, effective immediately with no expiration date.
• Vylor completed its separation from Corteva, Inc. on October 1, 2026, becoming an independent publicly traded company.
• Management adjustments were included in non-GAAP measures to reflect estimated incremental costs and savings associated with operating as a standalone public company.
• One-time and nonrecurring expenses of $21 million associated with the Vylor separation are excluded from Adjusted Pro Forma segment Operating EBITDA and related metrics.
• The company hosts its inaugural Investor Day on September 15, 2026, outlining its strategy and long-term growth opportunities.