Corteva (CTVA -1.58%), an agriculture technology company specializing in seeds and crop protection products, posted its earnings for the second quarter of 2025 on August 6, 2025, delivering results that topped analyst expectations and raised its financial outlook for the year. The company announced earnings per share (EPS) of $2.20 on a Non-GAAP basis, well ahead of the $1.89 non-GAAP consensus estimate, and GAAP revenue of $6.46 billion, surpassing the $6.27 billion non-GAAP estimate. EPS (non-GAAP) and revenue (non-GAAP) also marked substantial growth compared to the same period last year. Management cited growth in both its Seed and Crop Protection divisions as key drivers. The period was marked by improved profitability, strong market adoption for new products, and robust execution in key regions. Based on these trends, Corteva lifted its financial forecast for full-year 2025, reflecting both solid first-half performance and heightened optimism about the rest of the year.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $2.20 | $1.89 | N/A | N/A |
| Revenue (GAAP) | $6.46 billion | $6.27 billion | $6.11 billion | 5.7% |
| Operating EBITDA (Non-GAAP) | $2.16 billion | N/A | N/A | |
| Seed Net Sales | $4.54 billion | $4.33 billion | 4.8% | |
| Crop Protection Net Sales | $1.92 billion | $1.78 billion | 7.9% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
Corteva provides solutions for farmers globally through its main businesses: seeds and crop protection products. Its Seed segment offers advanced hybrid seeds for crops such as corn and soybeans, designed to improve yields and resilience. The Crop Protection segment delivers crop defense products, such as herbicides, fungicides, insecticides, and biologicals, which help safeguard crops from pests and disease.
Innovation is paramount for the company. By developing new seed genetics and crop protection technologies, it stays competitive within the industry. Expanding its product pipeline, growing its market presence, managing regulatory requirements, and improving supply chain efficiency are all critical for ongoing success. The company also emphasizes its global scale, operating in around 110 countries and serving the varied needs of farmers worldwide.
Quarter Highlights: Growth Across Segments and Regions
The quarter saw another strong performance for Corteva across both business lines. Seed net sales rose to $4.54 billion, representing a 4.8% increase compared to the prior year, driven by higher volumes and prices. Corn was a standout, with North American seed sales up 5% year over year, reflecting more planted area and share gains. Despite a dip in soybean area in some regions, ongoing demand for advanced technology and increased out-licensing income supported results. The company continued to expand its out-licensing of proprietary seed traits, helping reduce net royalty expense and broaden access to its technology.
Crop Protection also performed well, with net sales up 8.0% to $1.92 billion. The segment’s sales volume increased by 11%, although pricing was down 2%, mainly due to market pressure in Latin America. Higher demand for new products and biologicals, along with cost reductions from raw material deflation, helped boost operating margins. Operating EBITDA in Crop Protection rose 31% from last year, fueled by double-digit volume gains, especially in Latin America, where the business saw 17% sales growth in the region.
Regionally, North America remained the largest and strongest contributor. Seed sales in North America were $3.95 billion, up 5%, while Crop Protection sales reached $675 million in North America, up 4%. EMEA (Europe, Middle East, Africa) contributed with an 11% increase in net sales, while Asia Pacific also achieved a 5% rise in net sales. Although Latin America reported only a 3% increase in total net sales, organic growth in the region was 11%, with Crop Protection growth driven by demand for new products. These gains more than offset currency headwinds, particularly from the Brazilian Real and Canadian Dollar in the first half of 2025.
During the period, Corteva advanced strategic priorities. It ramped up new product launches, with about 500 introductions planned for 2025, including nearly 300 new seed hybrids and varieties. The innovation pipeline includes the upcoming launch of hybrid wheat, targeted for 2027, which management estimates could represent a potential $1 billion opportunity at maturity. The company also pushed forward with supply chain improvements, reporting cost productivity benefits and margin expansion from both raw material cost reductions and efficiency measures. Management described overall market conditions as supportive, with global demand for grain and oilseeds remaining robust despite some softness in crop prices and ongoing currency volatility.
One-time or exceptional items included announced share repurchases totaling approximately $1.0 billion for 2025 and an increase in the quarterly dividend. While the exact size of the dividend increase was not specified, the board’s action followed improved profitability in the first half of calendar year 2025. These factors together signaled management’s continued focus on capital allocation and shareholder returns.
Looking Ahead: Revised Guidance and Key Areas for Monitoring
Corteva raised its full-year 2025 outlook following the quarter’s results, now expecting net sales in the range of $17.6 billion to $17.8 billion, operating EBITDA (non-GAAP) of $3.75 billion to $3.85 billion, and operating EPS (non-GAAP) of $3.00 to $3.20 per share. It now projects net sales of $17.6–$17.8 billion for the year, operating EBITDA (non-GAAP) of $3.75–$3.85 billion, and operating EPS (non-GAAP) is expected to be between $3.00 and $3.20. The company also expects to realize about $400 million in net cost improvements in 2025, split evenly between the seed and crop protection segments. Looking forward, management highlights robust order books and strong demand for corn in both North America and Latin America, as well as continued expansion efforts for products like hybrid wheat and biological crop protection solutions.
Management pointed to several external factors that could shape performance in the quarters ahead. Ongoing price pressure in Crop Protection—particularly in Latin America—remains a watch item for the first half of 2025, although robust volumes and improved product mix have so far counteracted this. Currency impacts, especially from the Brazilian Real, Turkish Lira, and Canadian Dollar, are expected to continue in the first half of 2025, but are being actively managed with hedging strategies. Modest tariff impacts remain manageable in the context of the company’s full-year outlook, and supply chain productivity is anticipated to offset cost inflation. The quarterly dividend was increased, and the announced share repurchase program remains on track.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
