Corteva, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 12 November 2026: press release. Guidance figures: 3 lowered. The quarter’s numbers.

Read the filing

Key takeaways

• Third-quarter sales fell 9%: Third-quarter net sales were $1,591 million, down 9% from $1,742 million, with organic sales also down 9%. Source
• Adjusted EBITDA fell 17% in quarter: Adjusted Pro Forma Operating EBITDA was $222 million, down 17% from $268 million. Operating EPS was $0.06, down 57%, and the EBITDA margin fell about 140 basis points. Source
• Latin America sales fell 28%: Latin America net sales were $570 million, down 28% from $791 million. Organic sales fell 31%, which management attributed to challenging market dynamics in Brazil. Source
• Price fell 7% in the quarter: Pricing declined 7% and volume declined 2% in the third quarter. Price pressure came from competition on late-lifecycle molecules in Brazil and from U.S. acetochlor. Source
• Pro forma GAAP loss in quarter: Pro forma GAAP loss from continuing operations after tax was $(54) million, against $60 million a year earlier, with EPS of $(0.08). The margin declined 680 basis points. Source
• Brazil market softer than anticipated: Management described Brazil Crop Protection demand as weaker than previously expected, citing farmer liquidity constraints, elevated financing costs, just-in-time purchasing and pricing pressure. Source
• Guidance update tied to Brazil: Management said the full-year guidance update reflects market dynamics, primarily the deterioration in Brazil. Source

“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.”

Luke Kissam CEO

Guidance

What changed from last quarter

• Guidance lowered: Full-year Adjusted Pro Forma Operating EBITDA guidance was updated to $1.1 billion to $1.125 billion, from $4.1 billion to $4.3 billion in the prior release. Source
• Guidance lowered: Full-year Adjusted Pro Forma Operating EPS guidance was updated to $0.76 to $0.80 per share, from $3.60 to $3.80 per share for Operating EPS in the prior release. Source
• Guidance lowered: The 2026 net pre-tax restructuring charge range for Crop Protection network optimization narrowed to $130 million to $140 million, from $140 million to $150 million. Source
• New: Luke Kissam is named as CEO in the third-quarter release. The second-quarter release named Chuck Magro as CEO.
• New: The Board of Directors authorized the company's first common dividend after the spin-off. The release gives no dividend amount or payment date. Source
• New: The third-quarter release reports Pro Forma GAAP and Adjusted Pro Forma Operating measures, where the second-quarter release reported Operating EBITDA and Operating EPS. The adjusted measure adds management's cost-saving estimates. Source

Results and growth drivers

• Third-quarter sales fell 9%: Third-quarter net sales were $1,591 million, down 9% from $1,742 million, with organic sales also down 9%. Source
• Adjusted EBITDA fell 17% in quarter: Adjusted Pro Forma Operating EBITDA was $222 million, down 17% from $268 million. Operating EPS was $0.06, down 57%, and the EBITDA margin fell about 140 basis points. Source
• Year-to-date sales down 1%: Year-to-date net sales were $5,357 million, down 1%, and organic sales were down 4%, with the first half of the year covering most of the decline. Source

Segments and regions

• Latin America sales fell 28%: Latin America net sales were $570 million, down 28% from $791 million. Organic sales fell 31%, which management attributed to challenging market dynamics in Brazil. Source
• North America grew on volume: North America net sales were $574 million, up 7%. Volume rose 19%, offsetting pricing headwinds from U.S. acetochlor. Source
• EMEA grew on new products: EMEA net sales were $239 million, up 12%. Organic sales rose 14% on demand for new and differentiated products, with price held flat. Source
• Asia Pacific grew on new products: Asia Pacific net sales were $208 million, up 3%. Organic sales rose 5%, led by new products that supported 7% volume growth. Source
• Year-to-date regional sales mixed: Year-to-date North America was flat at $1,826 million and EMEA rose 7% to $1,438 million. Latin America fell 12% to $1,403 million and Asia Pacific rose 6% to $690 million. Source

“While those conditions are reflected in our updated outlook, our strategy has not changed.”

Luke Kissam CEO

Pricing and volume

• Price fell 7% in the quarter: Pricing declined 7% and volume declined 2% in the third quarter. Price pressure came from competition on late-lifecycle molecules in Brazil and from U.S. acetochlor. Source
• Pricing pressure sat in two regions: The release ties North America pricing pressure to an anticipated acetochlor headwind, and Latin America pressure to competitive dynamics on late-lifecycle molecules. Source
• Year-to-date price down 4%: For the nine months, volume was flat with growth in all regions except Latin America, while price declined 4%, mainly on Brazil late-lifecycle molecules and U.S. acetochlor. Source

Margins and earnings

• Pro forma GAAP loss in quarter: Pro forma GAAP loss from continuing operations after tax was $(54) million, against $60 million a year earlier, with EPS of $(0.08). The margin declined 680 basis points. Source
• Year-to-date GAAP income and margin: Year-to-date pro forma GAAP income from continuing operations after tax was $112 million, a 2.1% margin, with EPS from continuing operations of $0.16. Source
• Operational excellence helped mitigate headwinds: Management said new product sales growth and operational excellence helped mitigate broader market headwinds in the third quarter. Source
• Year-to-date adjusted margin rose: Year-to-date Adjusted Pro Forma Operating EBITDA was $943 million, flat against the prior year, and its margin rose 30 basis points to 17.6%. Source

Demand and the Brazil market

• Brazil market softer than anticipated: Management described Brazil Crop Protection demand as weaker than previously expected, citing farmer liquidity constraints, elevated financing costs, just-in-time purchasing and pricing pressure. Source
• Latin America volume fell 24%: Latin America volume fell 24% on elevated channel inventory and delayed buying. Price in the region fell 7% amid competitive pressure on mature molecules. Source
• Differentiated product demand continued: Management said demand for the company's differentiated new products continues, and regional performance outside Latin America has held up. Source
• Farm fundamentals supported demand: Management said agricultural fundamentals continue to support demand, as growers need to improve productivity and protect yield. Source

Full-year guidance and restructuring

• Guidance update tied to Brazil: Management said the full-year guidance update reflects market dynamics, primarily the deterioration in Brazil. Source
• Restructuring charges for 2026: Net pre-tax restructuring charges for 2026 are expected at $130 million to $140 million, tied to optimizing the Crop Protection manufacturing and external-partner network. Source
• Non-GAAP guidance not reconciled: Management said it cannot reconcile forward-looking non-GAAP guidance to the comparable GAAP measures, because it cannot predict items such as significant items with reasonable certainty. Source

Separation, capital and strategy

• First common dividend after spin: The Board authorized the company's first common dividend after the spin-off. The release does not state a dividend amount or payment date. Source
• Separation planned for October 1: The prior release said the separation remained on track for October 1, 2026, with Vylor to operate as a separate public company from that date.
• Capital structures reviewed with agencies: The prior release said both companies had reviewed capital structure submissions with credit rating agencies, with final structures still subject to board approval.
• Innovation and execution as foundation: The CEO said innovation, productivity and disciplined execution remain the foundation for long-term growth. Source

Coming up, as management said on 12 November 2026

• Crop Protection restructuring completes 2028: The restructuring of the Crop Protection manufacturing and external-partner network is expected to be substantially complete in 2028. Source

Figures management reported

Risks management discussed

• Demand: Management cited Brazil farmer financing and purchasing conditions as a source of softer crop protection demand. Source
• Demand: Latin America volumes fell on elevated channel inventory and delayed purchasing by farmers facing liquidity and interest rate constraints. Source
• External: Competitive pressure on mature molecules pushed Latin America prices lower in the quarter. Source
• External: Management described an anticipated acetochlor headwind as the source of North America pricing pressure. Source

Earlier plans management reported on

• Met: Management said U.S. acetochlor pricing was consistent with its expectations, while Brazil was materially weaker than anticipated. Source
• Not stated: Management said the Brazil Crop Protection market has been significantly softer than previously anticipated. Source
• On track: The prior release said the separation remained on track for October 1, 2026. The third-quarter release refers to a dividend authorized after the spin.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.