Corteva's Strong Q4: Driven by Record Crop Demand and Disciplined Execution

Corteva, Inc. (NYSE: CTVA), a global leader in seed and crop protection products, reported strong financial results for the fourth quarter and full-year 2024, driven by record crop demand and disciplined execution. The company's focus on technology and innovation, coupled with its ability to navigate market dynamics, has positioned it for continued growth and success in the agricultural sector.



In the fourth quarter of 2024, Corteva's net sales increased by 7% year-over-year, reaching $4.0 billion. The company's organic sales grew by 13%, reflecting strong volume gains in both the Crop Protection and Seed segments. Notably, Crop Protection volume increased by 16% over the prior year, driven primarily by Latin America on demand for new products, spinosyns, and biologicals. Seed volume increased by 19% versus the prior year due to the expected increase in Safrinha corn planted area in Brazil.

Despite a 4% decline in pricing, primarily due to competitive pressures in Latin America, Corteva's disciplined execution resulted in a 36% increase in Operating EBITDA for the fourth quarter of 2024, translating into approximately 280 basis points of Operating EBITDA margin improvement. The company's GAAP income from continuing operations after income taxes was a loss of $50 million in the fourth quarter of 2024, compared to a loss of $231 million in the fourth quarter of 2023.

For the full year 2024, Corteva's net sales declined by 2% versus the prior year, with organic sales increasing by 1% in the same period. Seed net sales increased by 1%, and organic sales increased by 4%. Price was up 3% led by North America and EMEA, with continued execution on the Company's price for value strategy. Volume increased by 1%, primarily reflecting the expected increase in Safrinha corn planted area in Brazil and market share gains in North America.

Crop Protection net sales decreased by 5%, and organic sales decreased by 2%. Price declined by 5% primarily due to the market dynamics in Latin America. Volume increased by 3%, driven by growth in Latin America on demand for new products and spinosyns, partially offset by weather and destocking impacts in EMEA, as well as just-in-time purchasing behavior in North America.

Corteva's GAAP income and earnings per share (EPS) from continuing operations were $863 million and $1.22 per share, respectively. Operating EBITDA and Operating EPS were $3.4 billion and $2.57 per share, respectively. Cash provided by operating activities – continuing operations increased by 27% to $2.3 billion, and free cash flow improved by 40% to $1.7 billion. This strong cash performance supported total cash returned to shareholders of $1.5 billion.

Looking ahead, Corteva has refined its full-year 2025 guidance to account for currency impacts, expecting net sales in the range of $17.2 to $17.6 billion. Operating EBITDA is expected to be $3.6 to $3.8 billion, and Operating EPS is anticipated to be $2.70 to $2.95 per share. The company expects to repurchase approximately $1 billion of shares during 2025.

Corteva's strong performance in the fourth quarter of 2024 highlights the company's ability to drive volume growth, particularly in Latin America, despite facing pricing pressures. The company's focus on disciplined execution, operational efficiency, and margin improvement has enabled it to generate strong financial performance in 2024, despite challenging market conditions. As Corteva continues to innovate and expand its product portfolio, it sees opportunities for further growth in the agricultural sector, supported by its disciplined execution and focus on improving market fundamentals.