Corteva Q4 2025 Corteva Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Corteva Inc Earnings Call
I refinance 4 q 2025 rings.
Operator: to Corteva Agriscience Q4 2025 Earnings. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Kim Booth, VP, Investor Relations. Please go ahead.
Operator: to Corteva Agriscience Q4 2025 Earnings. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Kim Booth, VP, Investor Relations. Please go ahead.
All lines have been placed on YouTube prevent any background noise.
After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again, thank you. I would now like to turn the call over to Kim Booth. VP investor relations. Please go ahead.
Kimberly Booth: Good morning, and welcome to Corteva's Q4 2025 Earnings Conference Call. Our prepared remarks today will be led by Chuck Magro, Chief Executive Officer, and David Johnson, Executive Vice President and Chief Financial Officer. Additionally, Judd O'Connor, Executive Vice President, Seed Business Unit, and Robert King, Executive Vice President, Crop Protection Business Unit, will join the Q&A session. We have prepared presentation slides to supplement our remarks during this call, which are posted on the investor relations section of the Corteva website and through the link to our webcast. During this call, we will make forward-looking statements, which are our expectations about the future. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties.
Kim Booth: Good morning, and welcome to Corteva's Q4 2025 Earnings Conference Call. Our prepared remarks today will be led by Chuck Magro, Chief Executive Officer, and David Johnson, Executive Vice President and Chief Financial Officer. Additionally, Judd O'Connor, Executive Vice President, Seed Business Unit, and Robert King, Executive Vice President, Crop Protection Business Unit, will join the Q&A session. We have prepared presentation slides to supplement our remarks during this call, which are posted on the investor relations section of the Corteva website and through the link to our webcast. During this call, we will make forward-looking statements, which are our expectations about the future. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties.
Good morning and welcome to Cortez, fourth quarter 2025 earnings conference. Call our prepared remarks, today will be led by Chuck magro, chief executive officer and David Johnson, Executive Vice President and Chief Financial Officer. Additionally, Judo Connor Executive, Vice President seed business unit and Robert King Executive Vice President, crop protection business. Unit will join the Q&A session
We have prepared presentation, slides to supplement our remarks. During this call, which are posted on the investor relations section of the corteva website and through the link to our webcast.
Kimberly Booth: Our actual results could materially differ from these statements due to these risks and uncertainties, including but not limited to, those discussed on this call and in the Risk Factors section of our reports filed with the SEC. We do not undertake any duty to update any forward-looking statement. Please note, in today's presentation, we'll be making references to certain non-GAAP financial measures. Reconciliations of the non-GAAP measures can be found in our earnings press releases and related schedules, along with our supplemental financial summary slide deck, available on our investor relations website. It's now my pleasure to turn the call over to Chuck.
Kim Booth: Our actual results could materially differ from these statements due to these risks and uncertainties, including but not limited to, those discussed on this call and in the Risk Factors section of our reports filed with the SEC. We do not undertake any duty to update any forward-looking statement. Please note, in today's presentation, we'll be making references to certain non-GAAP financial measures. Reconciliations of the non-GAAP measures can be found in our earnings press releases and related schedules, along with our supplemental financial summary slide deck, available on our investor relations website. It's now my pleasure to turn the call over to Chuck.
During this call, we will make forward-looking statements which are our expectations about the Future. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties. Our actual results could materially differ from these statements, due to these risks and uncertainties, including but not limited to those discussed on this call, and in the risk factor section of our reports filed with the SEC. We do not undertake any due. Due to update any forward-looking statements,
Please note in today's presentation, we'll be making references to certain non-gaap Financial measures. Reconciliations of the non-gaap. Measures can be found in our earnings press releases and related schedules, along with our supplemental Financial summary, slide deck available on our investor relations website. It's now my pleasure to turn the call over to Chuck.
Chuck Magro: Thanks, Kim. Good morning, everyone, and thanks for joining us. I hope your year is off to a great start. Before we get into our results, I'd like to provide a quick update on our separation and what you can expect this year. It is still early in our overall planning, but we remain on track for a second-half separation, most likely sometime in Q4. Now for some details. Over the past several months, a subset of our board has been very busy with a global CEO search for new Corteva. We are making good progress and expect to make an announcement on that in the first half. At or around the same time, we intend to launch the official name and brand identity of SpinCo, which is very exciting for me at least, and will really bring this transition to life.
Chuck Magro: Thanks, Kim. Good morning, everyone, and thanks for joining us. I hope your year is off to a great start. Before we get into our results, I'd like to provide a quick update on our separation and what you can expect this year. It is still early in our overall planning, but we remain on track for a second-half separation, most likely sometime in Q4. Now for some details. Over the past several months, a subset of our board has been very busy with a global CEO search for new Corteva. We are making good progress and expect to make an announcement on that in the first half. At or around the same time, we intend to launch the official name and brand identity of SpinCo, which is very exciting for me at least, and will really bring this transition to life.
Thanks, Kim. Good morning everyone. And thanks for joining us. I hope your Year is off to a great start.
Before we get into our results, I'd like to provide a quick update on our separation and what you can expect this year.
It is still early in our overall planning but we remain on track for a second half separation. Most likely sometime in the fourth quarter.
now, for some details,
Over the past several months, a subset of our board has been very busy with a global CEO search for new qurtaba. We are making good progress and expect to make an announcement on that in the first half.
At, or around the same time, we intend to launch the official name and brand identity of spinco, which is very exciting for me, at least, and we'll really bring this transition to life.
Chuck Magro: As we progress into the latter part of the first half, we'll be announcing the core executive leadership teams for both companies. We'll be working with the credit agencies on our capital structure submissions, and we will likely have filed the initial and first amendment of our Form 10 with the SEC. The second half is where we'll essentially be getting the separation to the finish line. We expect to go effective on the Form 10, announce our board appointments, and receive the final approval on the capital structures of the two companies. We'll also be completing the separation of our IT systems. And last but not least, we currently expect to hold our Investor Day events in mid-September. As for net divestiture synergies, we are still estimating roughly $100 million, $50 million of which is built into this year's guide.
Chuck Magro: As we progress into the latter part of the first half, we'll be announcing the core executive leadership teams for both companies. We'll be working with the credit agencies on our capital structure submissions, and we will likely have filed the initial and first amendment of our Form 10 with the SEC. The second half is where we'll essentially be getting the separation to the finish line. We expect to go effective on the Form 10, announce our board appointments, and receive the final approval on the capital structures of the two companies. We'll also be completing the separation of our IT systems. And last but not least, we currently expect to hold our Investor Day events in mid-September. As for net divestiture synergies, we are still estimating roughly $100 million, $50 million of which is built into this year's guide.
As we progress into the latter part of the first half, will be announcing the core executive leadership teams for both companies.
We'll be working with the Credit Agencies on our capital structure submissions.
And we will likely have filed the initial and first amendment of our form 10 with the SEC.
The second half is where we'll essentially be getting the separation to the finish line.
We expect to go effective on the Forum 10 announce, our board appointments and receive the final approval on the capital structures of the 2 companies.
We'll also be completing the separation of our it systems. And last but not least, we currently expect to hold our investor Day events in mid-september
We are still estimating, roughly 100 million.
50 million of which is built into this year's guide.
We'll keep you informed on our progress on a timely basis over the coming months.
Chuck Magro: We'll keep you informed on our progress on a timely basis over the coming months. Now let's move to our financial performance. Let me start by saying, by all accounts, 2025 was a strong year for Corteva. Our results for Q4 were in line with our expectations, with the exception of outperformance on our controllables and even stronger cash flow generation than we anticipated. We grew the top line low single digits while improving operating EBITDA low double digits, leading to over 200 basis points of margin expansion, pushing us over the 22% mark for the first time as a public company. This is a testament to growing demand of our technology, exceptional performance of our dedicated commercial teams, and combined with disciplined execution on operational efficiency in both businesses.
Chuck Magro: We'll keep you informed on our progress on a timely basis over the coming months. Now let's move to our financial performance. Let me start by saying, by all accounts, 2025 was a strong year for Corteva. Our results for Q4 were in line with our expectations, with the exception of outperformance on our controllables and even stronger cash flow generation than we anticipated. We grew the top line low single digits while improving operating EBITDA low double digits, leading to over 200 basis points of margin expansion, pushing us over the 22% mark for the first time as a public company. This is a testament to growing demand of our technology, exceptional performance of our dedicated commercial teams, and combined with disciplined execution on operational efficiency in both businesses.
So now, let's move to our financial performance.
Let me start by saying, by all accounts 2025 was a strong year for corteva.
Our results for the fourth quarter were in line with our expectations with the exception of outperformance on our controllables and even stronger cash flow generation than we anticipated.
We grew the Topline low, single digits, while improving operating ibitta low, double digits leading to over 200 basis points of margin expansion, pushing us over the 22% Mark for the first time as a public company.
This is a testament to Growing demand of our technology exceptional performance of our dedicated commercial teams.
And combined with disciplined execution on operational efficiency in both businesses.
Chuck Magro: Our seed business performed well again this year, with organic growth in every region, as well as share gains in both corn and soybeans. Seed delivered about $340 million of net cost improvements, as well as $90 million in royalty improvement, reflecting our growing position in North America corn and progress in soybean licensing in Brazil. As noted last quarter, we're expecting to cross double-digit trait penetration for Conkesta this year in Brazil, the largest soybean market on the planet. With over 300 basis points to margin expansion this year alone and our out-licensing business just catching its stride, I have to say it's fun to imagine what things might look like in another few years, with our growth platforms, including gene editing and hybrid wheat, really starting to take off.
Chuck Magro: Our seed business performed well again this year, with organic growth in every region, as well as share gains in both corn and soybeans. Seed delivered about $340 million of net cost improvements, as well as $90 million in royalty improvement, reflecting our growing position in North America corn and progress in soybean licensing in Brazil. As noted last quarter, we're expecting to cross double-digit trait penetration for Conkesta this year in Brazil, the largest soybean market on the planet. With over 300 basis points to margin expansion this year alone and our out-licensing business just catching its stride, I have to say it's fun to imagine what things might look like in another few years, with our growth platforms, including gene editing and hybrid wheat, really starting to take off.
Our seed business performed. Well again this year with our organic growth in every region, as well as share gains in both corn and soybeans.
Seed delivered about 340 million of net cost improvements as well as 90 million in royalty Improvement, reflecting our growing position in North America corn and progress in soybean Licensing in Brazil.
For concessa this year, in Brazil, the largest soybean Market on the planet.
with over 300 basis points of margin expansion this year alone,
And our out licensing business, just catching its stride. I have to say it's fun to imagine what things might look like in another few years with our growth platforms, including Gene editing in hybrid Wheat, really starting to take off.
Chuck Magro: Our crop protection business is also performing well, delivering top and bottom line growth, as well as margin expansion this year, in what I'd still describe as less than ideal market conditions. As we updated you last quarter, this business already has an incredible $9 billion pipeline of differentiated technologies. But in order to remain ahead of the curve, we are in the process of ongoing asset and sourcing optimization. For the full year, our CP business generated over $300 million of productivity and cost benefits, which improves our resilience as we make our way towards what we still expect to be improving market conditions in 2026. From an industry perspective, the overall ag fundamentals remain mixed. We're still seeing record demand for food and fuel, and major crop inventories are within normal ranges, despite large crops in Brazil and North America.
Chuck Magro: Our crop protection business is also performing well, delivering top and bottom line growth, as well as margin expansion this year, in what I'd still describe as less than ideal market conditions. As we updated you last quarter, this business already has an incredible $9 billion pipeline of differentiated technologies. But in order to remain ahead of the curve, we are in the process of ongoing asset and sourcing optimization. For the full year, our CP business generated over $300 million of productivity and cost benefits, which improves our resilience as we make our way towards what we still expect to be improving market conditions in 2026. From an industry perspective, the overall ag fundamentals remain mixed. We're still seeing record demand for food and fuel, and major crop inventories are within normal ranges, despite large crops in Brazil and North America.
Our crop protection business is also performing well, delivering top and bottom line growth as well as margin expansion this year and what I'd still described as less than Ideal Market conditions.
As we updated, you last quarter, this business already has an incredible 9 billion pipeline of differentiated Technologies.
But in order to remain ahead of the curve, we are in the process of ongoing assets and sourcing optimization.
for the full year, our CP business generated over 300 million of productivity and cost benefits, which improves our resilience as we make our way towards what we still expect to be improving market conditions in 2026,
From an industry perspective. The overall egg fundamentals. Remain mixed
We're still seeing record demand for food and fuel and major crop inventories are within normal ranges, despite large crops in Brazil and North America.
Chuck Magro: Farmers continue to prioritize top-tier seed technologies while managing tighter margins. Given the high corn area in the US last year, it's logical to assume we'll see a few million acres shift back to soybeans in 2026, all of which is factored into our guide. In the crop protection market, most notable is that we are expecting modest growth in 2026, something we haven't seen in a while. Although we continue to experience competitive pricing dynamics in some major markets, including Latin America, and Asia Pacific, underlying farmer demand in terms of applications remains consistent with historical levels. So what does all this mean for 2026? We are reiterating our preliminary operating EBITDA midpoint of $4.1 billion, which is 7% growth versus the prior year.
Chuck Magro: Farmers continue to prioritize top-tier seed technologies while managing tighter margins. Given the high corn area in the US last year, it's logical to assume we'll see a few million acres shift back to soybeans in 2026, all of which is factored into our guide. In the crop protection market, most notable is that we are expecting modest growth in 2026, something we haven't seen in a while. Although we continue to experience competitive pricing dynamics in some major markets, including Latin America, and Asia Pacific, underlying farmer demand in terms of applications remains consistent with historical levels. So what does all this mean for 2026? We are reiterating our preliminary operating EBITDA midpoint of $4.1 billion, which is 7% growth versus the prior year.
Farmers continue to prioritize top tier seed Technologies while managing tighter margins.
Given the high corn area in the US last year. Its logical to assume. We'll see a few million Acres, shift back to soybeans in 2026.
All of which is factored into our guide.
In the crop protection Market, most notable is that we are expecting modest growth in 2026. Something we haven't seen in a while
Although we continue to experience competitive pricing Dynamics in some major markets, including Latin, America and Asia Pacific.
Underlying farmer demand in terms of applications remains consistent with historical levels.
So what does all this mean for 2026?
We are reiterating our preliminary operating ebita midpoint of 4.1 billion which is 7% growth versus the prior year.
Chuck Magro: Included in that estimate is momentum in our seed licensing business, growth in crop protection volumes driven by new products and biologicals, and productivity benefits in both businesses. It's still quite early in the year, with winter still firmly in place, but we feel good about how 2026 is shaping up. Now, before I turn the call over to David, I'd like to address some new developments since we last spoke in November. We recently reached a comprehensive resolution with Bayer related to our seed freedom to operate. Not only does this agreement allow SpinCo to remain focused on its forward trajectory and value creation opportunities, including continued investment in innovation, it also provides business certainty from ongoing litigation. We are pleased to have reached an agreement which solidifies the use of existing technology rights in our own corn, canola, and cotton product portfolios, including our own germplasm.
Chuck Magro: Included in that estimate is momentum in our seed licensing business, growth in crop protection volumes driven by new products and biologicals, and productivity benefits in both businesses. It's still quite early in the year, with winter still firmly in place, but we feel good about how 2026 is shaping up. Now, before I turn the call over to David, I'd like to address some new developments since we last spoke in November. We recently reached a comprehensive resolution with Bayer related to our seed freedom to operate. Not only does this agreement allow SpinCo to remain focused on its forward trajectory and value creation opportunities, including continued investment in innovation, it also provides business certainty from ongoing litigation. We are pleased to have reached an agreement which solidifies the use of existing technology rights in our own corn, canola, and cotton product portfolios, including our own germplasm.
Included in that estimate is momentum in our seed licensing. Business growth and crop protection volumes driven by new products and Biologicals and productivity benefits in both businesses.
It's still quite early in the year with winter, still firmly in place but we feel good about how 2026 is shaping up.
Now, before I turn the call over to David, I'd like to address some new developments since we last spoke in November.
Chuck Magro: This means for 2026. We are reiterating our preliminary Operating EBITDA midpoint of $4.1 billion, which is 7% growth versus the prior year. Included in that estimate is momentum in our seed licensing business, growth in crop protection volumes driven by new products and biologicals, and productivity benefits in both businesses. It's still quite early in the year, with winter still firmly in place, but we feel good about how 2026 is shaping up. Now, before I turn the call over to David, I'd like to address some new developments since we last spoke in November. We recently reached a comprehensive resolution with Bayer related to our seed freedom to operate. Not only does this agreement allow SpinCo to remain focused on its forward trajectory and value creation opportunities, including continued investment in innovation, it also provides business certainty from ongoing litigation.
Chuck Magro: This means for 2026. We are reiterating our preliminary Operating EBITDA midpoint of $4.1 billion, which is 7% growth versus the prior year. Included in that estimate is momentum in our seed licensing business, growth in crop protection volumes driven by new products and biologicals, and productivity benefits in both businesses. It's still quite early in the year, with winter still firmly in place, but we feel good about how 2026 is shaping up. Now, before I turn the call over to David, I'd like to address some new developments since we last spoke in November. We recently reached a comprehensive resolution with Bayer related to our seed freedom to operate. Not only does this agreement allow SpinCo to remain focused on its forward trajectory and value creation opportunities, including continued investment in innovation, it also provides business certainty from ongoing litigation.
We recently reached the comprehensive resolution with Bayer related to our seed, freedom to operate.
Not only does this agreement. Allow spin code to remain focused on its forward, trajectory and value creation opportunities, including continued investment in Innovation. It also provides business certainty from ongoing litigation
Included in that estimate is momentum in our seed licensing. Business growth and crop protection volumes driven by new products and Biologicals and productivity benefits in both businesses.
We are pleased to have reached an agreement which solidifies the use of existing technology rights in our own corn, canola and cotton product portfolios, including our own germ plastic.
It's still quite early in the year, with winter still firmly in place, but we feel good about how 2026 is shaping up.
Chuck Magro: As a result of this resolution and the progress we've been making across the broader out-licensing spectrum, we now expect to achieve royalty neutrality in 2026, which is two years ahead of our most recent expectations. In North America, this agreement will accelerate the introduction of existing Corteva proprietary triple-stack corn technologies for licensing. We now expect to be licensing as early as 2027, an acceleration of five years. This resolution also facilitates the introduction of our third-gen above-ground trait platform in North America corn, which will be available for branded sales and licensing by the end of the decade. This is an acceleration of two years. Finally, this resolution includes a new licensing arrangement, which allows us to expand our addressable market by entering the cotton licensing market in the US, a space in which we do not currently participate.
Chuck Magro: As a result of this resolution and the progress we've been making across the broader out-licensing spectrum, we now expect to achieve royalty neutrality in 2026, which is two years ahead of our most recent expectations. In North America, this agreement will accelerate the introduction of existing Corteva proprietary triple-stack corn technologies for licensing. We now expect to be licensing as early as 2027, an acceleration of five years. This resolution also facilitates the introduction of our third-gen above-ground trait platform in North America corn, which will be available for branded sales and licensing by the end of the decade. This is an acceleration of two years. Finally, this resolution includes a new licensing arrangement, which allows us to expand our addressable market by entering the cotton licensing market in the US, a space in which we do not currently participate.
As a result of this resolution and the progress we've been making across the broader out licensing Spectrum. We now expect to achieve royalty neutrality in 2026.
Now, before I turn the call over to David, I'd like to address some new developments since we last spoke in November.
Which is 2 years ahead of our most recent expectations.
We recently reached the comprehensive resolution with Bayer related to our seed, freedom to operate.
In North America, this agreement will accelerate the introduction of existing cortiva proprietary, triple stack corn Technologies for licensing.
We now expect to be licensing as early as 2027 and acceleration of 5 years.
Chuck Magro: We are pleased to have reached an agreement which solidifies the use of existing technology rights in our own corn, canola, and cotton product portfolios, including our own germplasm. As a result of this resolution and the progress we've been making across the broader out-licensing spectrum, we now expect to achieve royalty neutrality in 2026, which is two years ahead of our most recent expectations. In North America, this agreement will accelerate the introduction of existing Corteva proprietary triple stack corn technologies for licensing. We now expect to be licensing as early as 2027, an acceleration of five years. This resolution also facilitates the introduction of our third-gen above-ground trait platform in North America corn, which will be available for branded sales and licensing by the end of the decade. This is an acceleration of two years.
Chuck Magro: We are pleased to have reached an agreement which solidifies the use of existing technology rights in our own corn, canola, and cotton product portfolios, including our own germplasm. As a result of this resolution and the progress we've been making across the broader out-licensing spectrum, we now expect to achieve royalty neutrality in 2026, which is two years ahead of our most recent expectations. In North America, this agreement will accelerate the introduction of existing Corteva proprietary triple stack corn technologies for licensing. We now expect to be licensing as early as 2027, an acceleration of five years. This resolution also facilitates the introduction of our third-gen above-ground trait platform in North America corn, which will be available for branded sales and licensing by the end of the decade. This is an acceleration of two years.
Not only does this agreement. Allow spin code to remain focused on its forward, trajectory and value creation opportunities, including continued investment and Innovation. It also provides business, certainty from ongoing litigation
This resolution also facilitates the introduction of our third gen above ground trait platform in North America corn, which will be available for Branded sales and Licensing by the end of the decade.
We are pleased to have reached an agreement which solidifies the use of existing technology rights in our own corn, canola and cotton product portfolios, including our own germ plastic.
This is an acceleration of 2 years.
As a result of this resolution and the progress we've been making across the broader out licensing Spectrum. We now expect to achieve royalty neutrality in 2026.
Which is 2 years ahead of our most recent expectations.
Finally this resolution includes a new licensing Arrangement which allows us to expand our addressable Market by entering the cotton licensing Market in the US a space in which we do not currently participate.
Chuck Magro: Leveraging our strong 2025 free cash flow, we committed to a payment of $610 million, which was largely completed last month. However, over the course of the next 10 years, we believe this agreement will generate about $1 billion of aggregate earnings upside for Corteva across our corn, cotton, and canola portfolios through both out-licensing and branded sales. In summary, we consider this resolution to be a win for our long-term strategic objectives. But more importantly, this is a win for farmers and for agriculture at large, as this resolution strengthens competition and offers farmers more choices when making purchasing decisions.
Chuck Magro: Leveraging our strong 2025 free cash flow, we committed to a payment of $610 million, which was largely completed last month. However, over the course of the next 10 years, we believe this agreement will generate about $1 billion of aggregate earnings upside for Corteva across our corn, cotton, and canola portfolios through both out-licensing and branded sales. In summary, we consider this resolution to be a win for our long-term strategic objectives. But more importantly, this is a win for farmers and for agriculture at large, as this resolution strengthens competition and offers farmers more choices when making purchasing decisions.
In North America, this agreement will accelerate the introduction of existing corteva proprietary triple stack, corn Technologies for licensing.
Leveraging, our strong 2025, free cash flow, we committed to a payment of 610 million which was largely completed last month.
We now expect to be licensing as early as 2027 and acceleration of 5 years.
However, over the course of the next 10 years, we believe this agreement will generate about a billion of aggregate earnings upside for corteva across our corn cotton and canola portfolios, through both out licensing and branded sales.
This resolution also facilitates the introduction of our third gen above ground trait platform in North America corn, which will be available for Branded sales and Licensing by the end of the decade.
Chuck Magro: Finally, this resolution includes a new licensing arrangement, which allows us to expand our addressable market by entering the cotton licensing market in the US, a space in which we do not currently participate. Leveraging our strong 2025 free cash flow, we committed to a payment of $610 million, which was largely completed last month. However, over the course of the next 10 years, we believe this agreement will generate about $1 billion of aggregate earnings upside for Corteva across our corn, cotton, and canola portfolios through both out-licensing and branded sales. In summary, we consider this resolution to be a win for our long-term strategic objectives. But more importantly, this is a win for farmers and for agriculture at large, as this resolution strengthens competition and offers farmers more choices when making purchasing decisions.
Chuck Magro: Finally, this resolution includes a new licensing arrangement, which allows us to expand our addressable market by entering the cotton licensing market in the US, a space in which we do not currently participate. Leveraging our strong 2025 free cash flow, we committed to a payment of $610 million, which was largely completed last month. However, over the course of the next 10 years, we believe this agreement will generate about $1 billion of aggregate earnings upside for Corteva across our corn, cotton, and canola portfolios through both out-licensing and branded sales. In summary, we consider this resolution to be a win for our long-term strategic objectives. But more importantly, this is a win for farmers and for agriculture at large, as this resolution strengthens competition and offers farmers more choices when making purchasing decisions.
This is an acceleration of 2 years.
In summary, we consider this resolution to be a win for our long-term strategic objectives, but more importantly, this is a win for farmers and for agriculture at large as this resolution, strengthens competition and offers Farmers more choices when making purchasing decisions.
6.
Filing this resolution includes a new licensing Arrangement, which allows us to expand our addressable Market by entering the cotton licensing Market in the US the space in which we do not currently participate.
Chuck Magro: Getting back to 2026, let me wrap up by saying what I say to our employees: "We are one team until we're not." Based on our latest timeline, we'll spend more time together than apart in 2026, and we're gonna stay focused on controlling the controllables. Our intended separation is about sharpening focus, accelerating innovation, and unlocking value that has been earned through performance, and we are committed to delivering results like this past year throughout this transition period. With that, I'll turn the call over to David.
Chuck Magro: Getting back to 2026, let me wrap up by saying what I say to our employees: "We are one team until we're not." Based on our latest timeline, we'll spend more time together than apart in 2026, and we're gonna stay focused on controlling the controllables. Our intended separation is about sharpening focus, accelerating innovation, and unlocking value that has been earned through performance, and we are committed to delivering results like this past year throughout this transition period. With that, I'll turn the call over to David.
Let me wrap up by saying what I say to our employees.
We are 1 team until we're not.
Leveraging, our strong 2025, free cash flow, we committed to a payment of 610 million which was largely completed last month.
Based on our latest timeline, we'll spend more time together than apart in 2026. And we're going to stay focused on controlling the controllables.
However, over the course of the next 10 years, we believe this agreement will generate about $1 billion of aggregate earnings upside for Corteva across our corn, cotton, and canola portfolios, through both out-licensing and branded sales.
Our intended separation is about sharpening Focus accelerating Innovation and unlocking value that has been earned through performance and we are committed to delivering results like this past year throughout this transition period.
With that, I'll turn the call over to David.
David Johnson: Thanks, Chuck, and welcome, everyone, to the call. Let's start on slide 7, which provides the financial results for the fourth quarter, second half, and full year. While it's more meaningful to look at our business in halves, I'll briefly touch on the quarter. Sales and operating EBITDA for the quarter were down versus prior year, largely due to lower volume in seeds and crop protection, coupled with higher compensation expense. While it's worth noting that the fourth quarter of 2024 was a record quarter for Corteva, and this year was the second highest fourth quarter on record for us as a public company. Organic sales for the quarter were down 4% compared to prior year. Crop protection saw volume and price declines of 2% and 1%, respectively. Price declines were largely due to competitive pricing dynamics in Latin America and in line with expectations.
David Johnson: Thanks, Chuck, and welcome, everyone, to the call. Let's start on slide 7, which provides the financial results for the fourth quarter, second half, and full year. While it's more meaningful to look at our business in halves, I'll briefly touch on the quarter. Sales and operating EBITDA for the quarter were down versus prior year, largely due to lower volume in seeds and crop protection, coupled with higher compensation expense. While it's worth noting that the fourth quarter of 2024 was a record quarter for Corteva, and this year was the second highest fourth quarter on record for us as a public company. Organic sales for the quarter were down 4% compared to prior year. Crop protection saw volume and price declines of 2% and 1%, respectively. Price declines were largely due to competitive pricing dynamics in Latin America and in line with expectations.
Thanks Chuck and welcome everyone to the call. Let's start on slide 7 which provides a financial results for the fourth quarter.
In summary, we consider this resolution to be a win for our long-term strategic objectives, but more importantly, this is a win for farmers and for agriculture at large as this resolution, strengthens competition and offers Farmers more choices when making purchasing decisions.
Chuck Magro: Getting back to 2026, let me wrap up by saying what I say to our employees: We are one team until we're not. Based on our latest timeline, we'll spend more time together than apart in 2026, and we're gonna stay focused on controlling the controllables. Our intended separation is about sharpening focus, accelerating innovation, and unlocking value that has been earned through performance, and we are committed to delivering results like this past year throughout this transition period. With that, I'll turn the call over to David.
Chuck Magro: Getting back to 2026, let me wrap up by saying what I say to our employees: We are one team until we're not. Based on our latest timeline, we'll spend more time together than apart in 2026, and we're gonna stay focused on controlling the controllables. Our intended separation is about sharpening focus, accelerating innovation, and unlocking value that has been earned through performance, and we are committed to delivering results like this past year throughout this transition period. With that, I'll turn the call over to David.
Second half and full year.
Getting back to 2026.
Well, it's more meaningful to look at our business and have a briefly touch on the quarter.
Let me wrap up by saying what I say to our employees.
We are 1 team until we're not.
Sales. And operating IA for the quarter were down versus prior year, largely due to lower volume in seed and crop protection coupled with higher compensation expense.
Based on our latest timeline, we'll spend more time together than apart in 2026. And we're going to stay focused on controlling the controllables.
Our intended separation is about sharpening focus.
While it's worth knowing that the fourth quarter of 2024 was a record quarter for corteva. And this year was the second highest fourth quarter on record for us as a public company.
Organic sales for the quarter were down, 4% compared to Prior year.
Accelerating Innovation and unlocking value that has been earned through performance and we are committed to delivering results like this past year. Throughout this transition period.
David Johnson: Thanks, Chuck, and welcome everyone to the call. Let's start on slide 7, which provides the financial results for the fourth quarter, second half, and full year. While it's more meaningful to look at our business in halves, I'll briefly touch on the quarter. Sales and Operating EBITDA for the quarter were down versus prior year, largely due to lower volume in seed and crop protection, coupled with higher compensation expense. While it's worth noting that the fourth quarter of 2024 was a record quarter for Corteva, and this year was the second highest fourth quarter on record for us as a public company. Organic sales for the quarter were down 4% compared to prior year. Crop protection saw volume and price declines of 2% and 1%, respectively. Price declines were largely due to competitive pricing dynamics in Latin America, and in line with expectations.
David Johnson: Thanks, Chuck, and welcome everyone to the call. Let's start on slide 7, which provides the financial results for the fourth quarter, second half, and full year. While it's more meaningful to look at our business in halves, I'll briefly touch on the quarter. Sales and Operating EBITDA for the quarter were down versus prior year, largely due to lower volume in seed and crop protection, coupled with higher compensation expense. While it's worth noting that the fourth quarter of 2024 was a record quarter for Corteva, and this year was the second highest fourth quarter on record for us as a public company. Organic sales for the quarter were down 4% compared to prior year. Crop protection saw volume and price declines of 2% and 1%, respectively. Price declines were largely due to competitive pricing dynamics in Latin America, and in line with expectations.
With that, I'll turn the call over to David.
Crop protection. Saw volume and price declines of 2% and 1% respectively.
price declines were largely due to competitive pricing, Dynamics Latin America and in line with expectations
Thanks, Chuck, and welcome everyone to the call. Let's start on slide 7, which provides the financial results for the fourth quarter, second half, and full year.
David Johnson: Volume declines in crop protection were primarily driven by a seasonal shift in timing for North America to first half 2026, along with timing of fungicide demand in Latin America. Seed had pricing gains of 3% versus prior year, evidencing our price for value strategy, with volumes declines 8%, largely due to timing shift of Safrinha sales into Q3 2025, and the shift of North America deliveries into the first half of 2026 as a result of freight optimization and weather across the Midwest. Looking back at the second half, sales were up 4% and operating EBITDA was up 16%, driven by better price and mix in seed, continued execution on controlling the controllables, and volume gains in both segments. Organic sales were up 2% compared to prior year.
David Johnson: Volume declines in crop protection were primarily driven by a seasonal shift in timing for North America to first half 2026, along with timing of fungicide demand in Latin America. Seed had pricing gains of 3% versus prior year, evidencing our price for value strategy, with volumes declines 8%, largely due to timing shift of Safrinha sales into Q3 2025, and the shift of North America deliveries into the first half of 2026 as a result of freight optimization and weather across the Midwest. Looking back at the second half, sales were up 4% and operating EBITDA was up 16%, driven by better price and mix in seed, continued execution on controlling the controllables, and volume gains in both segments. Organic sales were up 2% compared to prior year.
Well, it's more meaningful to look at our business and briefly touch on the quarter.
Volume declines, in crop protection were primarily driven by a seasonal shift and timing for North America to first half 2026.
Along with timing of fungicide demand in Latin America.
Sales. And operating evida for the quarter were down versus prior year, largely due to lower volume in seed and crop protection coupled with higher compensation expense.
Well, it's worth knowing that the fourth quarter 2024 was a record quarter for corteva and this year was the second highest fourth quarter on record for us as a public company.
Seed had pricing gains of 3% versus prior Year Evidence in our price for value strategy, which volumes declined 8% largely due to timing shift of Premium sales into third quarter of 2025.
Organic sales for the quarter were down, 4% compared to Prior year.
And the shift of North America, deliveries into the first half of 2026.
Crop protections on volume and price, declines of 2% and 1% respectively.
as a result of freight optimization and weather across the Midwest,
David Johnson: Volume declines in crop protection were primarily driven by a seasonal shift in timing for North America to the first half of 2026, along with timing of fungicide demand in Latin America. Seed had pricing gains of 3% versus prior year, evidencing our price-for-value strategy, with volume declines of 8%, largely due to timing shift of Safrinha sales into Q3 2025, and the shift of North America deliveries into the first half of 2026, as a result of freight optimization and weather across the Midwest. Looking back at the second half, sales were up 4% and operating EBITDA was up 16%, driven by better price and mix in seed, continued execution on controlling the controllables, and volume gains in both segments. Organic sales were up 2% compared to prior year.
David Johnson: Volume declines in crop protection were primarily driven by a seasonal shift in timing for North America to the first half of 2026, along with timing of fungicide demand in Latin America. Seed had pricing gains of 3% versus prior year, evidencing our price-for-value strategy, with volume declines of 8%, largely due to timing shift of Safrinha sales into Q3 2025, and the shift of North America deliveries into the first half of 2026, as a result of freight optimization and weather across the Midwest. Looking back at the second half, sales were up 4% and operating EBITDA was up 16%, driven by better price and mix in seed, continued execution on controlling the controllables, and volume gains in both segments. Organic sales were up 2% compared to prior year.
price declines were largely due to competitive pricing, Dynamics Latin America and in line with expectations
Volume decline in crop protection, were primarily driven by a seasonal shift in timing for North America to first half 2026.
Looking back at the second half sales were up 4% and offering even though it was up, 16% driven by better price and mixing seeds, continued execution on controlling the controllables and volume gains in both segments.
Along with timing of fungicide demand in Latin America.
Organic sales were up 2% compared to Prior year.
David Johnson: Crop protection saw volume growth of 1%, offset by price declines of 2%, largely driven by competitive pricing in Latin America. Seed had price, mix, and volume gains of 3% and 2% respectively, versus prior year. Focusing on the full year, organic sales were up 4% over last year, with growth in both seed and crop protection. A continuation of our price for value strategy, along with increased corn acres in North America and Latin America, drove seed, price mix, and volume gains of 3% and 2%. Crop protection price was down 2% for the year, as expected, driven by competitive market dynamics, mostly in Brazil. Crop protection volume was up 5%, with gains in nearly every region. Notably, new products saw strong demand and biologicals delivered double-digit volume gains compared to prior year.
David Johnson: Crop protection saw volume growth of 1%, offset by price declines of 2%, largely driven by competitive pricing in Latin America. Seed had price, mix, and volume gains of 3% and 2% respectively, versus prior year. Focusing on the full year, organic sales were up 4% over last year, with growth in both seed and crop protection. A continuation of our price for value strategy, along with increased corn acres in North America and Latin America, drove seed, price mix, and volume gains of 3% and 2%. Crop protection price was down 2% for the year, as expected, driven by competitive market dynamics, mostly in Brazil. Crop protection volume was up 5%, with gains in nearly every region. Notably, new products saw strong demand and biologicals delivered double-digit volume gains compared to prior year.
Crop protection. Saw volume growth of 1% offset by Price. Declines of 2%. Largely driven by competitive pricing in Latin America.
seed had pricing gains at 3% versus prior year evidencing our price for value strategy, with volumes declined 8% largely due to timing shift as of 3 sales into third quarter of 2025
Seed had price mixed and volume gains of 3% and 2% respectively versus prior year.
and the shift of North America, deliveries into the first half of 2026.
Great optimization. And whether across the Midwest,
Focusing on the full year, organic sales were up 4% over last year with growth in both seed and crop protection.
A continuation of our price for value strategy along with increased corn, acres in North America. And Latin America grows seed price next and volume gains of 3% and 2%.
Looking back at the second half, sales were up 4%, and offering EBITDA that was up 16%, driven by better price and mix and Seed. Continued execution on controlling the controllables and volume gains in both segments.
David Johnson: Crop protection saw volume growth of 1%, offset by price declines of 2%, largely driven by competitive pricing in Latin America. Seed had price, mix, and volume gains of 3% and 2%, respectively, versus prior year. Focusing on the full year, organic sales were up 4% over last year, with growth in both seed and crop protection. A continuation of our price for value strategy, along with increased corn acres in North America and Latin America, drove seed, price, mix, and volume gains of 3% and 2%. Crop protection price was down 2% for the year, as expected, driven by competitive market dynamics, mostly in Brazil.... Crop protection volume was up 5%, with gains in nearly every region. Notably, new products saw strong demand, and biologicals delivered double-digit volume gains compared to prior year.
David Johnson: Crop protection saw volume growth of 1%, offset by price declines of 2%, largely driven by competitive pricing in Latin America. Seed had price, mix, and volume gains of 3% and 2%, respectively, versus prior year. Focusing on the full year, organic sales were up 4% over last year, with growth in both seed and crop protection. A continuation of our price for value strategy, along with increased corn acres in North America and Latin America, drove seed, price, mix, and volume gains of 3% and 2%. Crop protection price was down 2% for the year, as expected, driven by competitive market dynamics, mostly in Brazil.... Crop protection volume was up 5%, with gains in nearly every region. Notably, new products saw strong demand, and biologicals delivered double-digit volume gains compared to prior year.
Organic sales were up 2% compared to prior year.
Crop protection price was down 2% for the year as expected driven by competitive market dynamics, mostly in Brazil.
Crop protection. Saw volume growth of 1% offset by Price. Declines of 2%. Largely driven by competitive pricing in Latin America.
Crop protection volume was up 5%, but gains in nearly every region. Notably new products have strong demand and Biologicals delivered double-digit volume gains compared to Prior year.
Seed had price mixed and volume gains of 3% and 2% respectively versus prior year.
Offering ibido was up 14% over prior year.
David Johnson: Operating EBITDA was up 14% over prior year. Operating EBITDA margins of over 22% was up about 215 basis points, driven by organic sales growth, coupled with significant benefits from lower input costs and productivity. Moving on to slide eight for a summary of the year. Operating EBITDA was up more than $470 million to $3.85 billion. Price and mix, volume gains, and cost benefits more than offset currency headwinds. Seed continues to make progress on its path to royalty neutrality, with about $90 million in reduced net royalty expense. This improvement was driven by increased out-licensing income in North American corn and lower royalty expense in soybeans. We finished the year with a net royalty expense position of around $120 million.
David Johnson: Operating EBITDA was up 14% over prior year. Operating EBITDA margins of over 22% was up about 215 basis points, driven by organic sales growth, coupled with significant benefits from lower input costs and productivity. Moving on to slide eight for a summary of the year. Operating EBITDA was up more than $470 million to $3.85 billion. Price and mix, volume gains, and cost benefits more than offset currency headwinds. Seed continues to make progress on its path to royalty neutrality, with about $90 million in reduced net royalty expense. This improvement was driven by increased out-licensing income in North American corn and lower royalty expense in soybeans. We finished the year with a net royalty expense position of around $120 million.
Focusing on the full year, organic sales were up 4% over last year, with growth in both seed and crop protection.
I'll bring even the margins of over 22% was up about 215 basis points, driven by organic sales growth, coupled with significant benefits from lower input costs and productivity.
Moving on to slide 8 for a summary of the year.
A continuation of our price-for-value strategy, along with increased corn acres in North America and Latin America, drove seed price, mix, and volume gains of 3% and 2%.
I'll bring even though was up more than 470 million to 3.85 billion.
Crop protection price was down 2% for the year, as expected, driven by competitive market dynamics, mostly in Brazil.
Price and mix, Vol gains and cost benefits more than offset currency, headwinds.
If he continues to make progress on its path to royalty, neutrality with about 90 million in reduced, net royalty expense.
David Johnson: Operating EBITDA was up 14% over prior year. Operating EBITDA margins of over 22% was up about 215 basis points, driven by organic sales growth, coupled with significant benefits from lower input costs and productivity. Moving on to Slide 8, for a summary of the year. Operating EBITDA was up more than $470 million to $3.85 billion. Price and mix, volume gains, and cost benefits more than offset currency headwinds. Seed continues to make progress on its path to royalty neutrality, with about $90 million in reduced net royalty expense. This improvement was driven by increased out-licensing income in North American corn and lower royalty expense in soybeans. We finished the year with a net royalty expense position of around $120 million.
David Johnson: Operating EBITDA was up 14% over prior year. Operating EBITDA margins of over 22% was up about 215 basis points, driven by organic sales growth, coupled with significant benefits from lower input costs and productivity. Moving on to Slide 8, for a summary of the year. Operating EBITDA was up more than $470 million to $3.85 billion. Price and mix, volume gains, and cost benefits more than offset currency headwinds. Seed continues to make progress on its path to royalty neutrality, with about $90 million in reduced net royalty expense. This improvement was driven by increased out-licensing income in North American corn and lower royalty expense in soybeans. We finished the year with a net royalty expense position of around $120 million.
Crop protection volume was up 5%, with gains in nearly every region. Notably, new products have strong demand, and Biologicals delivered double-digit volume gains compared to the prior year.
Offering IBA was up 14% over prior year.
This Improvement was driven by increase out licensing income in North American corn and lower royalty expenses in soybeans.
We finished the year with a net royalty, expense position of around 120 million dollars.
I'll bring even the margins of over 22% was up about 215 basis points, driven by organic sales growth, coupled with significant benefits from lower input costs and productivity.
David Johnson: Seed and crop protection combined to deliver over $650 million in net cost improvement, including lower seed commodity costs, raw material deflation, and continued productivity actions. SG&A for the year was up compared to prior year, driven by higher commissions and compensation expense. The increased investment in R&D aligns with our target, just over 8% of sales for the full year. As expected, currency was $217 million headwind on EBITDA, driven by the Brazilian real, Canadian dollar, and Turkish lira. Both seed and crop protection finished the year with impressive EBITDA growth and meaningful margin expansion over prior year. Together, this translated to over 22% operating EBITDA margin. In addition, free cash flow has improved by about $1.2 billion from prior year to $2.9 billion.
David Johnson: Seed and crop protection combined to deliver over $650 million in net cost improvement, including lower seed commodity costs, raw material deflation, and continued productivity actions. SG&A for the year was up compared to prior year, driven by higher commissions and compensation expense. The increased investment in R&D aligns with our target, just over 8% of sales for the full year. As expected, currency was $217 million headwind on EBITDA, driven by the Brazilian real, Canadian dollar, and Turkish lira. Both seed and crop protection finished the year with impressive EBITDA growth and meaningful margin expansion over prior year. Together, this translated to over 22% operating EBITDA margin. In addition, free cash flow has improved by about $1.2 billion from prior year to $2.9 billion.
Moving on to slide 8 or a summary of the year.
It's even crop protection combined to deliver over 650 million in net cost improvements including lower C commodity costs, raw material, deflation and continued productivity actions.
I bring even though was up more than 4007 million dollars to 3.85 billion.
Scna for the year was up compared to Prior year, driven by higher commissions and compensation expense.
Price and mix, Vol gains and cost benefits more than offset currency, headwinds.
The increase investment in R&D aligns with our Target. Just over 8% of sales for the full year.
He continues to make progress on its path to royalty neutrality, with about $90 million in reduced net royalty expense.
With.
That driven by the Brazil, Real Canadian dollar and Turkish lira.
This Improvement was driven by increase out licensing income in North American corn and the lower royalty expense in soybeans.
We finished the year with a net royalty, expense position of around 120 million dollars.
David Johnson: Seed and crop protection combined to deliver over $650 million in net cost improvement, including lower seed commodity costs, raw material deflation, and continued productivity action. SG&A for the year was up compared to prior year, driven by higher commissions and compensation expense. The increased investment in R&D aligns with our target, just over 8% of sales for the full year. As expected, currency was a $217 million headwind on EBITDA, driven by the Brazilian real, Canadian dollar, and Turkish lira. Both seed and crop protection finished the year with impressive EBITDA growth and meaningful margin expansion over prior year. Together, this translated to over 22% operating EBITDA margin. In addition, free cash flow has improved by about $1.2 billion from prior year to $2.9 billion.
David Johnson: Seed and crop protection combined to deliver over $650 million in net cost improvement, including lower seed commodity costs, raw material deflation, and continued productivity action. SG&A for the year was up compared to prior year, driven by higher commissions and compensation expense. The increased investment in R&D aligns with our target, just over 8% of sales for the full year. As expected, currency was a $217 million headwind on EBITDA, driven by the Brazilian real, Canadian dollar, and Turkish lira. Both seed and crop protection finished the year with impressive EBITDA growth and meaningful margin expansion over prior year. Together, this translated to over 22% operating EBITDA margin. In addition, free cash flow has improved by about $1.2 billion from prior year to $2.9 billion.
Those seed and crop protection, finish the year, with impressive IBA, the growth and meaningful margin expansion of our prior year.
Together this translated to over 22% operating, Eva the margin.
In addition.
so, even crop protection, combined to deliver over 650 million in net cost Improvement including lower C commodity costs, raw material, deflation and continued productivity action,
Free cash flow has improved by about 1.2 billion dollars from prior year to 2.9 billion.
This is driven by our increase Ava.
David Johnson: This is driven by our increased EBITDA, lower cash taxes, and working capital discipline. With that, let's go to slide 9 and transition to the updated outlook for 2026 and the key metrics we are tracking. Our updated 2026 guidance reflects the continued momentum from our 2025 performance and continued confidence in delivering on productivity and cost benefits. 2026 operating EBITDA is expected to be in the range of $4 to 4.2 billion, or approximately 7% improvement over prior year at the midpoint. This would put us at the low end of the 2027 EBITDA framework we outlined in our last Investor Day. Meaningful margin expansion is expected to be driven by organic sales growth, together benefits from improved net royalty expense and productivity action.
David Johnson: This is driven by our increased EBITDA, lower cash taxes, and working capital discipline. With that, let's go to slide 9 and transition to the updated outlook for 2026 and the key metrics we are tracking. Our updated 2026 guidance reflects the continued momentum from our 2025 performance and continued confidence in delivering on productivity and cost benefits. 2026 operating EBITDA is expected to be in the range of $4 to 4.2 billion, or approximately 7% improvement over prior year at the midpoint. This would put us at the low end of the 2027 EBITDA framework we outlined in our last Investor Day. Meaningful margin expansion is expected to be driven by organic sales growth, together benefits from improved net royalty expense and productivity action.
Scna for the year was up compared to Prior year, driven by higher commissions and compensation expense.
Lower cash taxes and working capital discipline?
The increase investment in R&D aligned with our Target, just over 8% of sales for the full year.
With that. Let's go to slide 9 in transition to the updated outlook for 2026. And the key metrics we are tracking
As expected, currency was 207 million, Headway on ibida.
Driven by the Brazilian real, Canadian dollar, and Turkish lira.
Our updated 2026 guidance. Reflects the continued momentum from our 2025 performance and continued confidence in, delivering on productivity and cost benefits.
Those seed, and crop protection patients, who are with impressive, EBA growth and meaningful margin expansion of our prior year.
Together this translated to over 22% operating, even the margin.
In addition.
2026, operate ibida is expected to be in the range of 4 billion and 4.2 billion or approximately 7% improvement over prior year at the midpoint.
David Johnson: This is driven by our increased EBITDA, lower cash taxes, and working capital discipline. With that, let's go to Slide 9 and transition to the updated outlook for 2026 and the key metrics we are tracking. Our updated 2026 guidance reflects the continued momentum from our 2025 performance and continued confidence in delivering on productivity and cost benefits. 2026 operating EBITDA is expected to be in the range of $4 billion to $4.2 billion, or approximately 7% improvement over prior year at the midpoint. This would put us at the low end of the 2027 EBITDA framework we outlined in our last Investor Day. Meaningful margin expansion is expected to be driven by organic sales growth, together with benefits from improved net royalty expense and productivity action.
David Johnson: This is driven by our increased EBITDA, lower cash taxes, and working capital discipline. With that, let's go to Slide 9 and transition to the updated outlook for 2026 and the key metrics we are tracking. Our updated 2026 guidance reflects the continued momentum from our 2025 performance and continued confidence in delivering on productivity and cost benefits. 2026 operating EBITDA is expected to be in the range of $4 billion to $4.2 billion, or approximately 7% improvement over prior year at the midpoint. This would put us at the low end of the 2027 EBITDA framework we outlined in our last Investor Day. Meaningful margin expansion is expected to be driven by organic sales growth, together with benefits from improved net royalty expense and productivity action.
Free cash flow has improved by about 1.2 billion dollars from prior year to 2.9 billion.
This would pose at the low end of the 2027 ibida framework. We outlined in our last investor day.
This is driven by our increase ibida.
Lower cash taxes and working capital discipline?
Meaningful, margin expansion is expected to be driven by organic sales growth.
Together benefits from improved net. Royalty expense in productivity action.
With that. Let's go to slide 9 in transition to the updated outlook for 2026. And the key metrics we are tracking
David Johnson: Operating EPS is expected to be in the range of $3.45 to 3.70 per share, an increase of 7% at the midpoint, which reflects higher earnings growth and lower average share count, partially offset by higher net interest expense. Free cash flow in 2026 will be impacted by separation items and the Bayer agreement. Absent these, we would be in line with our long-term target we communicated at our 2024 Investor Day. We remain committed to returning cash to shareholders as we progress through the separation. We announced the Q1 dividend last week, and we are targeting about $500 million of share repurchases in the first half of 2026.
David Johnson: Operating EPS is expected to be in the range of $3.45 to 3.70 per share, an increase of 7% at the midpoint, which reflects higher earnings growth and lower average share count, partially offset by higher net interest expense. Free cash flow in 2026 will be impacted by separation items and the Bayer agreement. Absent these, we would be in line with our long-term target we communicated at our 2024 Investor Day. We remain committed to returning cash to shareholders as we progress through the separation. We announced the Q1 dividend last week, and we are targeting about $500 million of share repurchases in the first half of 2026.
Operating EPS expected to be in the range of 3.45 to 3.70 cents per share.
An increase of 7% at the midpoint.
Our updated 2026 guidance. Reflects the continued momentum from our 2025 performance and continued confidence in, delivering on productivity and cost benefits.
Which reflects higher earnings growth and lower, average share count partially offset by higher net. Interest expense.
Free cash flow in 2026, will be impacted by separation items and the bear agreement.
2026, operate ibida is expected to be in the range of 4 billion and 4.2 billion or approximately 7% improvement over prior year at the midpoint.
Absent. These we would be in line with our long-term Target. We communicated at our 2024 investor day.
This would pose at the low end of the 2027 ibida framework. We outlined in our last investor day.
We remain committed to returning cash to shareholders as we progress through the separation.
Meaningful, margin expansion is expected to be driven by organic sales growth.
Together, benefits from improved net royalty expense in productivity action.
David Johnson: Operating EPS is expected to be in the range of $3.45 to 3.70 per share, an increase of 7% at the midpoint, which reflects higher earnings growth and lower average share count, partially offset by higher net interest expense. Free cash flow in 2026 will be impacted by separation items and the Bayer agreement. Absent these, we would be in line with our long-term target we communicated at our 2024 Investor Day. We remain committed to returning cash to shareholders as we progress through the separation. We announced the Q1 dividend last week, and we are targeting about $500 million of share repurchases in the first half of 2026.
David Johnson: Operating EPS is expected to be in the range of $3.45 to 3.70 per share, an increase of 7% at the midpoint, which reflects higher earnings growth and lower average share count, partially offset by higher net interest expense. Free cash flow in 2026 will be impacted by separation items and the Bayer agreement. Absent these, we would be in line with our long-term target we communicated at our 2024 Investor Day. We remain committed to returning cash to shareholders as we progress through the separation. We announced the Q1 dividend last week, and we are targeting about $500 million of share repurchases in the first half of 2026.
We announced the first quarter dividend last week and we are targeting about $500 million of share repurchases. In the first half of 2026
David Johnson: Turning to slide 10, in the 2026 operating EBITDA bridge, growing from approximately $3.8 billion in 2025 to $4.1 billion at the midpoint. Total company pricing expected to be slightly up, with pricing gains in seed partially offset by declines in crop protection. While we expect the crop protection market to grow, we expect prices to be down low single digits for the year. We are expecting volumes to be relatively flat in seed, as North America share gains are expected to be offset by the corn-to-soy planted area shift and have a full year under our Brazil soybean shift to licensing. Crop protection volume is expected to be up mid-single digits, driven by demand for new products and biologicals, which are expected to outperform the rest of the portfolio.
David Johnson: Turning to slide 10, in the 2026 operating EBITDA bridge, growing from approximately $3.8 billion in 2025 to $4.1 billion at the midpoint. Total company pricing expected to be slightly up, with pricing gains in seed partially offset by declines in crop protection. While we expect the crop protection market to grow, we expect prices to be down low single digits for the year. We are expecting volumes to be relatively flat in seed, as North America share gains are expected to be offset by the corn-to-soy planted area shift and have a full year under our Brazil soybean shift to licensing. Crop protection volume is expected to be up mid-single digits, driven by demand for new products and biologicals, which are expected to outperform the rest of the portfolio.
according to slide 10 in the 2026, operating EBA Bridge.
Operating EPS expected to be in the range of $3.45 to $3.70 per share an increase of 7% at the midpoint.
Growing from approximately 3.8 billion in 2025.
To 4.1 billion at the midpoint.
Which reflects higher earnings growth and lower, average share counts, partially offset by higher net, interest expense.
Total company pricing expected to be slightly up with pricing gains in seed partially offset by declines in crop protection.
Free cash flow in 2026 will be impacted by separation items and the BARE agreement.
While we expect a crop protection Market to grow. We expect prices to be down low single digits for the year.
Absent. These we would be in line with our long-term Target. We communicated at our 2024 investor day.
Through the separation.
We are expecting volumes to be relatively flat and Seed as North America share gains are expected to be offset by the corn to Soy planted area shift.
We announced the first quarter dividend last week, and we are targeting about $500 million of share repurchases in the first half of 2026.
And at a full year, under our Brazil, soybean shift to licensing.
David Johnson: Turning to Slide 10, in the 2026 Operating EBITDA bridge, growing from approximately $3.8 billion in 2025 to $4.1 billion at the midpoint. Total company pricing is expected to be slightly up, with pricing gains in seed partially offset by declines in crop protection. While we expect the crop protection market to grow, we expect prices to be down low single digits for the year. We are expecting volumes to be relatively flat in seed, as North America share gains are expected to be offset by the corn-to-soy planted area shift and have a full year under our Brazil soybean shift to licensing. Crop protection volume is expected to be up mid-single digits, driven by demand for new products and biologicals, which are expected to outperform the rest of the portfolio.
David Johnson: Turning to Slide 10, in the 2026 Operating EBITDA bridge, growing from approximately $3.8 billion in 2025 to $4.1 billion at the midpoint. Total company pricing is expected to be slightly up, with pricing gains in seed partially offset by declines in crop protection. While we expect the crop protection market to grow, we expect prices to be down low single digits for the year. We are expecting volumes to be relatively flat in seed, as North America share gains are expected to be offset by the corn-to-soy planted area shift and have a full year under our Brazil soybean shift to licensing. Crop protection volume is expected to be up mid-single digits, driven by demand for new products and biologicals, which are expected to outperform the rest of the portfolio.
According to slide 10 in the 2026 operating IBAA bridge.
Our protecting volume is expected to be up mid single digits driven by demand for new products and Biologicals which are expected to outperform the rest of the portfolio.
Growing from approximately 3.8 billion in 2025 to 4.1 billion at the midpoint.
David Johnson: We expect approximately $120 million improvement in net royalty expense, driven by the continued ramp-up of Conkesta E3 soybeans and PowerCore Enlist corn licensing. We expect to deliver around $200 million of productivity savings in 2026, partially offset by approximately $80 million in tariffs. SG&A and R&D as a percentage of sales are expected to be relatively flat with 2025 levels. Keep in mind, this includes approximately $50 million of net disparities. We are expecting a currency tailwind versus 2025. This is largely driven by the Brazilian real, euro, and Canadian dollar. The appreciating foreign currencies are expected to translate to a low single-digit tailwind on net sales and approximately $75 million tailwind on operating EBITDA.
David Johnson: We expect approximately $120 million improvement in net royalty expense, driven by the continued ramp-up of Conkesta E3 soybeans and PowerCore Enlist corn licensing. We expect to deliver around $200 million of productivity savings in 2026, partially offset by approximately $80 million in tariffs. SG&A and R&D as a percentage of sales are expected to be relatively flat with 2025 levels. Keep in mind, this includes approximately $50 million of net disparities. We are expecting a currency tailwind versus 2025. This is largely driven by the Brazilian real, euro, and Canadian dollar. The appreciating foreign currencies are expected to translate to a low single-digit tailwind on net sales and approximately $75 million tailwind on operating EBITDA.
We expect a approximately 120 million Improvement in net royalty, expense.
Total company pricing is expected to be slightly up, with price and gains in seed partially offset by a decline in crop protection.
Driven by the continued ramp up of concessa, e3 soybeans and power core, and less corn licensing.
While we expect a crop protection Market to grow. We expect prices to be down low single digits for the year.
We expect to deliver around 200 million, in productivity, Savings in 2026, partially offset by approximately 80 million in tariffs.
We are expecting volumes to be relatively flat and Seed as North America share gains are expected to be offset by the corn to Soy planted area shift.
And at the full year under our Brazil, soybean shift to licensing.
Scna and R&D, as a percentage of sales are expected to be relatively flat with 2025 levels. Keep in mind, this includes approximately 50 million of net disease,
We are expecting a currency Tailwind versus 2025.
This is largely driven by the Brazilian real gyro and Canadian dollar.
David Johnson: We expect approximately $120 million improvement in net royalty expense, driven by the continued ramp-up of Conkesta E3 soybeans and PowerCore Enlist corn licensing. We expect to deliver around $200 million of productivity savings in 2026, partially offset by approximately $80 million in tariffs. SG&A and R&D as a percentage of sales are expected to be relatively flat with 2025 levels. Keep in mind, this includes approximately $50 million of net disparities. We are expecting a currency tailwind versus 2025. This is largely driven by the Brazilian real, euro, and Canadian dollar. The appreciating foreign currencies are expected to translate to a low single-digit tailwind on net sales and approximately $75 million tailwind on operating EBITDA.
David Johnson: We expect approximately $120 million improvement in net royalty expense, driven by the continued ramp-up of Conkesta E3 soybeans and PowerCore Enlist corn licensing. We expect to deliver around $200 million of productivity savings in 2026, partially offset by approximately $80 million in tariffs. SG&A and R&D as a percentage of sales are expected to be relatively flat with 2025 levels. Keep in mind, this includes approximately $50 million of net disparities. We are expecting a currency tailwind versus 2025. This is largely driven by the Brazilian real, euro, and Canadian dollar.
Crop protection volume is expected to be up mid single digits driven by demand for new products and Biologicals which are expected to outperform the rest of the portfolio.
We expect approximately a $120 million improvement in net royalty expense.
The appreciating foreign currencies are expected to translate to a low single digit, Tailwind on net sales and approximately 75 million Tailwind on operating IA.
Driven by the continued ramp up but concussed at E3 soybeans and power core unless corn licensing.
David Johnson: Together, this translates to approximately 7% operating EBITDA growth at the midpoint and about 50 basis points of margin expansion. Regarding the timing of sales and earnings in 2026, we are expecting about 60% of sales and roughly 85% of EBITDA to be delivered in the first half of the year. With that, let's go to slide 11 and summarize the key takeaways for the year. 2025 was a record year for Corteva, with strong organic growth across both crop protection and seed. Performance was driven by volume, favorable mix, and continued adoption of our differentiated technologies. In crop protection, demand for our novel modes of action and biologicals remained strong, while seed benefited from our price for value strategy and solid execution across key markets. Importantly, this growth reflects underlying demand and execution.
David Johnson: Together, this translates to approximately 7% operating EBITDA growth at the midpoint and about 50 basis points of margin expansion. Regarding the timing of sales and earnings in 2026, we are expecting about 60% of sales and roughly 85% of EBITDA to be delivered in the first half of the year. With that, let's go to slide 11 and summarize the key takeaways for the year. 2025 was a record year for Corteva, with strong organic growth across both crop protection and seed. Performance was driven by volume, favorable mix, and continued adoption of our differentiated technologies. In crop protection, demand for our novel modes of action and biologicals remained strong, while seed benefited from our price for value strategy and solid execution across key markets. Importantly, this growth reflects underlying demand and execution.
Together this translates to approximately 7%, operating EBA growth at the midpoint and about 50 basis points of margin expansion.
We expect to deliver around $200 million in productivity savings in 2026, partially offset by approximately $80 million in tariffs.
Regarding the timing of sales and earnings in 2026. We are expecting about 60% of sales and roughly 85% of the IBA to be delivered. In the first half of the year.
Scna and RD as a percentage of sales are expected to be relatively flat with 2025 levels. Keep in mind, this includes approximately 50 million of net disease,
With that. Let's go to slide 11 and summarize the key takeaways for the year.
We are expecting a current currency tailwind versus 2025.
David Johnson: The appreciating foreign currencies are expected to translate to a low single-digit tailwind on net sales and approximately $75 million tailwind on operating EBITDA. Together, this translates to approximately 7% operating EBITDA growth at the midpoint and about 50 basis points of margin expansion. Regarding the timing of sales and earnings in 2026, we are expecting about 60% of sales and roughly 85% of EBITDA to be delivered in the first half of the year.
This is largely driven by the Brazilian real gyro and Canadian dollar.
2025 was a record year for kurta with strong organic growth across both crop protection and Seed.
Performance was driven by volume favorable mix and continued adoption of our differentiated Technologies.
David Johnson: Together, this translates to approximately 7% operating EBITDA growth at the midpoint and about 50 basis points of margin expansion. Regarding the timing of sales and earnings in 2026, we are expecting about 60% of sales and roughly 85% of EBITDA to be delivered in the first half of the year.
The appreciating foreign currencies are expected to translate to a low single digit, Tailwind on net sales and approximately 75 million dollars Tailwind by an operating EA.
In crop protection, demand for our novel modes of action and Biologicals remain strong.
Together this translates to approximately 7%, operating EBA growth at the midpoint and about 50 basis points of margin expansion.
Solid execution, across key markets.
Importantly, this growth reflects underlying demand and execution.
David Johnson: We also delivered record free cash flow in 2025, driven primarily by higher earnings and working capital improvements. Tighter operational discipline and greater year-end cash collections improved cash conversion. As a result, we returned approximately $1.5 billion to shareholders in fiscal 2025, through a combination of dividends and share repurchases. Our capital allocation priorities remain unchanged, investing in the business, maintaining a strong balance sheet for Corteva and the future independent companies, and returning excess cash to shareholders in a disciplined manner. Looking ahead, our 2026 guidance reflects growth in sales, operating EBITDA, and margins. We expect continued demand from our differentiated technology, supported by our innovation pipeline and ongoing productivity and cost action. With that, let me turn it back to Kim.
David Johnson: We also delivered record free cash flow in 2025, driven primarily by higher earnings and working capital improvements. Tighter operational discipline and greater year-end cash collections improved cash conversion. As a result, we returned approximately $1.5 billion to shareholders in fiscal 2025, through a combination of dividends and share repurchases. Our capital allocation priorities remain unchanged, investing in the business, maintaining a strong balance sheet for Corteva and the future independent companies, and returning excess cash to shareholders in a disciplined manner. Looking ahead, our 2026 guidance reflects growth in sales, operating EBITDA, and margins. We expect continued demand from our differentiated technology, supported by our innovation pipeline and ongoing productivity and cost action. With that, let me turn it back to Kim.
Judd O'Connor: ...With that, let's go to slide 11 and summarize the key takeaways for the year. 2025 was a record year for Corteva, with strong organic growth across both crop protection and seed. Performance was driven by volume, favorable mix, and continued adoption of our differentiated technologies. In crop protection, demand for our novel modes of action and biologicals remained strong, while seed benefited from our price for value strategy and solid execution across key markets. Importantly, this growth reflects underlying demand and execution. We also delivered record free cash flow in 2025, driven primarily by higher earnings and working capital improvements. Tighter operational discipline and greater year-end cash collections improved cash conversion. As a result, we returned approximately $1.5 billion to shareholders in fiscal 2025, through a combination of dividends and share repurchases.
David Johnson: ...With that, let's go to slide 11 and summarize the key takeaways for the year. 2025 was a record year for Corteva, with strong organic growth across both crop protection and seed. Performance was driven by volume, favorable mix, and continued adoption of our differentiated technologies. In crop protection, demand for our novel modes of action and biologicals remained strong, while seed benefited from our price for value strategy and solid execution across key markets. Importantly, this growth reflects underlying demand and execution. We also delivered record free cash flow in 2025, driven primarily by higher earnings and working capital improvements. Tighter operational discipline and greater year-end cash collections improved cash conversion. As a result, we returned approximately $1.5 billion to shareholders in fiscal 2025, through a combination of dividends and share repurchases.
Regarding the timing of sales and earnings in 2026, we are expecting about 60% of sales and roughly 85% of EBA to be delivered in the first half of the year.
We also delivered record free, cash flow in 2025 driven primarily by higher earnings and working Capital Improvements.
With that. Let's go to slide 11 and summarize the key takeaways for the year.
As a result, we returned approximately 1.5 billion to shareholders in fiscal 2025.
2025 was a record year for corteva with strong organic growth across both crop protection and Seed.
So a combination of dividends and share repurchases.
Performance was driven by volume favorable mix and continued adoption of our differentiated Technologies.
Our Capital allocation priorities remain unchanged investing in the business.
In crop protection, demand for our novel modes of action and biologicals remains strong.
Maintaining a strong balance sheet for CVA and the future independent companies and returning excess cash to shareholders in a disciplined manner.
While Seed benefits from our price-for-value strategy and solid execution across key markets.
Looking ahead are 2026 guidance. Reflects growth in sales.
Importantly, this growth reflects underlying demand and execution.
I'll bring Ava and margins.
We also delivered record free cash flow in 2025, driven primarily by higher earnings and working capital improvements.
We expect continued demand from our differentiated technology supported by our Innovation Pipeline and ongoing productivity and cost actions.
With that, let me turn it back to Kim.
Peter operational discipline and greater year-end cash collections, improved cash conversion.
Kimberly Booth: Thanks, David. Now let's move on to your questions. I would like to remind you that our cautions on forward-looking statements and non-GAAP measures apply to both our prepared remarks and the following Q&A. Operator, please provide the Q&A instructions.
Kim Booth: Thanks, David. Now let's move on to your questions. I would like to remind you that our cautions on forward-looking statements and non-GAAP measures apply to both our prepared remarks and the following Q&A. Operator, please provide the Q&A instructions.
As a result, we returned approximately 1.5 billion to shareholders in fiscal 2025.
Judd O'Connor: Our capital allocation priorities remain unchanged, investing in the business, maintaining a strong balance sheet for Corteva and the future independent companies, and returning excess cash to shareholders in a disciplined manner. Looking ahead, our 2026 guidance reflects growth in sales, Operating EBITDA and margins. We expect continued demand from our differentiated technology, supported by our innovation pipeline and ongoing productivity and cost action. With that, let me turn it back to Kim.
David Johnson: Our capital allocation priorities remain unchanged, investing in the business, maintaining a strong balance sheet for Corteva and the future independent companies, and returning excess cash to shareholders in a disciplined manner. Looking ahead, our 2026 guidance reflects growth in sales, Operating EBITDA and margins. We expect continued demand from our differentiated technology, supported by our innovation pipeline and ongoing productivity and cost action. With that, let me turn it back to Kim.
Their combination of dividends and share repurchases.
Thanks David. Now, let's move on to your questions. I would like to remind you that our cautions on forward-looking statements and non-gaap measures, apply to both our prepared remarks and the following Q&A operator, please provide the Q&A instructions.
Our Capital allocation priorities remain unchanged investing in the business.
Operator: At this time, I would like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. We request that you limit yourself to one question. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Chris Parkinson with Wolfe Research. Your line is open.
Operator: At this time, I would like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. We request that you limit yourself to one question. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Chris Parkinson with Wolfe Research. Your line is open.
Maintaining a strong balance sheet for kurteva and the future independent companies and returning excess cash to shareholders in a discipline manner.
At this time, I would like to remind everyone in order to ask a question. Please press star then the number 1 on your telephone keypad. We request that you limit yourself to 1 question.
Looking ahead are 2026 guidance. Reflects growth in sales.
We will pause for just a moment to compile the Q&A roster.
I'll bring Ava and margins.
Your first question comes from the line of Chris Parkinson with wolf research, your line is open.
We expect continued demand from our differentiated technology supported by our Innovation Pipeline and ongoing productivity and cost action.
Chris Parkinson: Great. Thank you so much. Chuck, could you just kind of help us break down slide 27 a little bit more with the Bayer litigation? It seems like, you know, there are two or three key buckets of what this accelerates as it leads into the chart that you published across triple-stack, insect resistance and cotton. You know, I'd love to hear if it actually affects the acceleration of E3 or Conkesta in terms of the next gen stuff. So I'd love to hear the breakdown of that. And then also in that chart, do you assume any gene editing assumptions, or is that purely a corollary of what was announced yesterday evening? Thank you.
Chris Parkinson: Great. Thank you so much. Chuck, could you just kind of help us break down slide 27 a little bit more with the Bayer litigation? It seems like, you know, there are two or three key buckets of what this accelerates as it leads into the chart that you published across triple-stack, insect resistance and cotton. You know, I'd love to hear if it actually affects the acceleration of E3 or Conkesta in terms of the next gen stuff. So I'd love to hear the breakdown of that. And then also in that chart, do you assume any gene editing assumptions, or is that purely a corollary of what was announced yesterday evening? Thank you.
Kim Booth: Thanks, David. Now let's move on to your questions. I would like to remind you that our cautions on forward-looking statements and non-GAAP measures apply to both our prepared remarks and the following Q&A. Operator, please provide the Q&A instructions.
Kim Booth: Thanks, David. Now let's move on to your questions. I would like to remind you that our cautions on forward-looking statements and non-GAAP measures apply to both our prepared remarks and the following Q&A. Operator, please provide the Q&A instructions.
With that, let me turn it back to Kim.
Thanks David. Now, let's move on to your questions. I would like to remind you that our cautions on forward-looking statements and non-gaap measures, apply to both our prepared remarks and the following Q&A operator, please provide the Q&A instructions.
Operator: At this time, I would like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. We request that you limit yourself to one question. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Chris Parkinson with Wolfe Research. Your line is open.
Operator: At this time, I would like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. We request that you limit yourself to one question. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Chris Parkinson with Wolfe Research. Your line is open.
At this time, I would like to remind everyone that in order to ask a question, please press star, then the number 1 on your telephone keypad. We request that you limit yourself to one question.
Great, thank you so much chuck. Could you just kind of help us break down slide 27, a little bit more with the uh with the a buyer litigation? It seems like you know, there are 2 or 3 key, buckets of what this accelerates as it leads into the chart that you published across, triples, insect resistance and cotton. Uh, you know, I'd love to hear if it actually affects the acceleration of E3 or contesta in terms of the NextGen stuff. Um, so I'd love to hear that the breakdown of that. And then also, in that chart do you assume any uh Gene editing assumptions? Or is that purely a corollary of what was announced? Uh yesterday evening. Thank you.
We will pause for just a moment to compile the Q&A roster.
Chuck Magro: Yeah, good morning. So let me start, and then I'm gonna have Judd unpack some of the finer details. So first, we're very pleased with the agreement. You know, and I personally view this as being extremely strategic in terms of what our overall licensing ambitions can be. And so this is a comprehensive agreement. We've been working with Bayer for quite some time. These things are very scientifically based. They're very, there's a lot of legal precedent here for us to work through. But I'd say what the agreement does is it provides two broad things. The first is, we now have freedom to operate and an increased access to the licensing market, which is extremely important to us.
Chuck Magro: Yeah, good morning. So let me start, and then I'm gonna have Judd unpack some of the finer details. So first, we're very pleased with the agreement. You know, and I personally view this as being extremely strategic in terms of what our overall licensing ambitions can be. And so this is a comprehensive agreement. We've been working with Bayer for quite some time. These things are very scientifically based. They're very, there's a lot of legal precedent here for us to work through. But I'd say what the agreement does is it provides two broad things. The first is, we now have freedom to operate and an increased access to the licensing market, which is extremely important to us.
[Analyst] (Wolfe Research): Great. Thank you so much. Chuck, could you just kind of help us break down slide 27 a little bit more with the Bayer litigation? It seems like, you know, there are two or three key buckets of what this accelerates as it leads into the chart that you published across triples, insect resistance, and cotton. You know, I'd love to hear if it actually affects the acceleration of E3 or Conkesta in terms of the next gen stuff. So I'd love to hear the breakdown of that. And then also in that chart, do you assume any gene editing assumptions, or is that purely a corollary of what was announced yesterday evening? Thank you.
Christopher Parkinson: Great. Thank you so much. Chuck, could you just kind of help us break down slide 27 a little bit more with the Bayer litigation? It seems like, you know, there are two or three key buckets of what this accelerates as it leads into the chart that you published across triples, insect resistance, and cotton. You know, I'd love to hear if it actually affects the acceleration of E3 or Conkesta in terms of the next gen stuff. So I'd love to hear the breakdown of that. And then also in that chart, do you assume any gene editing assumptions, or is that purely a corollary of what was announced yesterday evening? Thank you.
Your first question comes from the line of Chris Parkinson with wolf research, your line is open.
Good morning. So let let me start and then I'm going to have Jude uh unpack some of the the finer details.
So first we're very pleased with the agreement. Um, you know, and I personally view this as being extremely strategic uh, in terms of what our overall licensing Ambitions can be. Um and so this is a comprehensive agreement. We've been working with Bayer for quite some time. These things are very scientifically based. They're very uh there's
A lot of legal precedent here for us to work through, but I'd say what the agreement does is it provides 2 broad things.
The first is, we now have freedom to operate.
And, and increased access to the licensing Market.
Chuck Magro: Good morning. So let me start, and then I'm gonna have Judd unpack some of the finer details. So first, we're very pleased with the agreement. You know, and I personally view this as being extremely strategic in terms of what our overall licensing ambitions can be. And so this is a comprehensive agreement. We've been working with Bayer for quite some time. These things are very scientifically based. They're very. There's a lot of legal precedent here for us to work through. But I'd say what the agreement does is it provides two broad things. The first is, we now have freedom to operate and an increased access to the licensing market, which is extremely important to us.
Chuck Magro: Good morning. So let me start, and then I'm gonna have Judd unpack some of the finer details. So first, we're very pleased with the agreement. You know, and I personally view this as being extremely strategic in terms of what our overall licensing ambitions can be. And so this is a comprehensive agreement. We've been working with Bayer for quite some time. These things are very scientifically based. They're very. There's a lot of legal precedent here for us to work through. But I'd say what the agreement does is it provides two broad things. The first is, we now have freedom to operate and an increased access to the licensing market, which is extremely important to us.
Cotton. Um, you know, I'd love to hear if it actually affects the acceleration of E3 or Conkesta in terms of the NextG stuff. Um, so I'd love to hear the breakdown of that, and then also, in that chart, do you assume any gene editing assumptions, or is that purely a corollary of what was announced, uh, yesterday evening? Thank you.
Chuck Magro: You know our ambition when it comes to our licensing business, and it's really centered around the expectation to accelerate our corn licensing business at, to as early as 2027, which is years ahead of our original plans. We're also gonna enter the cotton licensing market, another big opportunity for Corteva. But I'd say more importantly, this is great for farmers and for agriculture in general, because it's gonna give our farmer customers simply just more choice. So now we're gonna have strong licensing portfolio for soybeans, for corn, and for cotton. And if you look at it financially, the big picture, it really does set us on a path, as we said today, to deliver about $1 billion in licensing income in the next decade.
Chuck Magro: You know our ambition when it comes to our licensing business, and it's really centered around the expectation to accelerate our corn licensing business at, to as early as 2027, which is years ahead of our original plans. We're also gonna enter the cotton licensing market, another big opportunity for Corteva. But I'd say more importantly, this is great for farmers and for agriculture in general, because it's gonna give our farmer customers simply just more choice. So now we're gonna have strong licensing portfolio for soybeans, for corn, and for cotton. And if you look at it financially, the big picture, it really does set us on a path, as we said today, to deliver about $1 billion in licensing income in the next decade.
Yeah, good morning. So let let me start and then I'm going to have Jude unpack some of the the finer details.
which is extremely important to us, you know, our ambition, when it comes to our licensing business and it's really centered around the expectation, to accelerate our corn licensing business,
At to, as early as 2027, which is years ahead of our original plans.
We're also going to enter the cotton licensing Market. Another big opportunity for corteva but I'd say more importantly this is great for farmers and for agriculture in general because it's going to give uh our farmer customers simply just more choice.
So now we're going to have
strong licensing portfolio for soybeans.
So first we're very pleased with the agreement. Um, you know, and I personally view this as being extremely strategic uh, in terms of what our overall licensing Ambitions can be. Um and so this is a comprehensive agreement. We've been working with Bayer for quite some time. These things are very scientifically based. They're very there's a lot of legal precedent here for us to work through but I'd say what the agreement does is it provides 2 broad things.
The first is, we now have freedom to operate.
And, and increased access to the licensing Market.
Chuck Magro: You know our ambition when it comes to our licensing business, and it's really centered around the expectation to accelerate our corn licensing business to as early as 2027, which is years ahead of our original plans. We're also gonna enter the cotton licensing market, another big opportunity for Corteva. But I'd say more importantly, this is great for farmers and for agriculture in general, because it's gonna give our farmer customers simply just more choice. So now we're gonna have strong licensing portfolio for soybeans, for corn, and for cotton. And if you look at it financially, the big picture, it really does set us on a path, as we said today, to deliver about $1 billion in licensing income in the next decade.
Chuck Magro: You know our ambition when it comes to our licensing business, and it's really centered around the expectation to accelerate our corn licensing business to as early as 2027, which is years ahead of our original plans. We're also gonna enter the cotton licensing market, another big opportunity for Corteva. But I'd say more importantly, this is great for farmers and for agriculture in general, because it's gonna give our farmer customers simply just more choice. So now we're gonna have strong licensing portfolio for soybeans, for corn, and for cotton. And if you look at it financially, the big picture, it really does set us on a path, as we said today, to deliver about $1 billion in licensing income in the next decade.
For corn and for cotton and if you look at it financially, the big picture, it really does set us on a path As We Said Today to deliver about a billion in licensing income, in the next decade.
Chuck Magro: The second thing that this does, this agreement does, is it resolves all the outstanding litigation with Bayer, and I think that's very helpful from a clarity, and risk management perspective. So that's what this agreement is intended to do. Like I said, I'm very pleased with the agreement. Judd, you want to just talk about some of the finer details?
Chuck Magro: The second thing that this does, this agreement does, is it resolves all the outstanding litigation with Bayer, and I think that's very helpful from a clarity, and risk management perspective. So that's what this agreement is intended to do. Like I said, I'm very pleased with the agreement. Judd, you want to just talk about some of the finer details?
which is extremely important to us, you know, our ambition, when it comes to our licensing business, and it's really centered around the expectation, to accelerate our corn licensing business,
At to, as early as 2027, which is years ahead of our original plans.
The second thing that this does, this agreement does, is it resolves. All the outstanding litigation with Bayer? And I think that's very helpful from a Clarity and risk management perspective. So that's what this agreement is intended to do. Like I said, I'm very pleased with the agreement judge. You want to just talk about some of the finer details.
David Johnson: Yeah. Thanks, Chuck, and thanks, Chris, for the question. I think Chuck captured it all extremely well. You know, we're still needing to bring product through the R&D pipeline, but maybe let me touch on it. One, we've got freedom to operate in canola, in specific markets around the world where that's very important to us. Number two, we're gonna be able to bring, as you see here, triple stack options into the market five years earlier than what our previous plan was, with complete freedom to operate.
Judd O'Connor: Yeah. Thanks, Chuck, and thanks, Chris, for the question. I think Chuck captured it all extremely well. You know, we're still needing to bring product through the R&D pipeline, but maybe let me touch on it. One, we've got freedom to operate in canola, in specific markets around the world where that's very important to us. Number two, we're gonna be able to bring, as you see here, triple stack options into the market five years earlier than what our previous plan was, with complete freedom to operate.
We're also going to enter the cotton licensing Market. Another, uh, big opportunity for corteva, but I'd say more importantly, this is great for farmers and for agriculture in general because it's going to give uh our farmer customers simply just more choice.
So now we're going to have
strong licensing portfolio for soybeans.
Yeah. Thanks Chuck and thanks Chris for the question and I think Chuck captured it all extremely well. Um, and and, you know, we're, we're still needing to bring product through the R&D pipeline, but maybe let me touch on it 1. We've got freedom to operate in canola in specific markets from around the world where that's very important to us.
Chuck Magro: The second thing that this does, this agreement does, is it resolves all the outstanding litigation with Bayer, and I think that's very helpful from a clarity and risk management perspective. So that's what this agreement is intended to do. Like I said, I'm very pleased with the agreement. Judd, you want to just talk about some of the finer details?
Chuck Magro: The second thing that this does, this agreement does, is it resolves all the outstanding litigation with Bayer, and I think that's very helpful from a clarity and risk management perspective. So that's what this agreement is intended to do. Like I said, I'm very pleased with the agreement. Judd, you want to just talk about some of the finer details?
Or corn and for cotton. And if you look at it financially, the big picture, it really does set us on a path As We Said Today to deliver about a billion in licensing income, in the next decade.
Judd O'Connor: ... and the ability to line up and provide additional volumes with our licensees, that we've got tremendous amount of demand building with licensees today. Number three, we get to bring our next proprietary third gen above ground product two years forward into the marketplace. We also provided Bayer a license for Enlist cotton. They provided us an opportunity to license their HT4, and this provides us an opportunity to license in cotton, which we had no freedom to do previously. So comprehensively, it creates a tremendous amount of opportunity for us to, to continue to accelerate our ambitions in this space. We've got our germplasm funnel that has continued to widen so that we've got the access or the germplasm that we need to be able to provide these traits. And it just puts us in a really great spot.
Judd O'Connor: ... and the ability to line up and provide additional volumes with our licensees, that we've got tremendous amount of demand building with licensees today. Number three, we get to bring our next proprietary third gen above ground product two years forward into the marketplace. We also provided Bayer a license for Enlist cotton. They provided us an opportunity to license their HT4, and this provides us an opportunity to license in cotton, which we had no freedom to do previously. So comprehensively, it creates a tremendous amount of opportunity for us to, to continue to accelerate our ambitions in this space. We've got our germplasm funnel that has continued to widen so that we've got the access or the germplasm that we need to be able to provide these traits. And it just puts us in a really great spot.
Judd O'Connor: Yeah. Thanks, Chuck, and thanks, Chris, for the question. I think Chuck captured it all extremely well. You know, we're still needing to bring product through the R&D pipeline, but maybe let me touch on it. One, we've got freedom to operate in canola, in specific markets around the world where that's very important to us. Number two, we're gonna be able to bring, as you see here, Triple stack options into the market 5 years earlier than what our previous plan was, with complete freedom to operate and the ability to line up and provide additional volumes with our licensees, we've got tremendous amount of demand building with licensees today. Number three, we get to bring our next proprietary third gen above ground product, 2 years forward into the marketplace.
Judd O'Connor: Yeah. Thanks, Chuck, and thanks, Chris, for the question. I think Chuck captured it all extremely well. You know, we're still needing to bring product through the R&D pipeline, but maybe let me touch on it. One, we've got freedom to operate in canola, in specific markets around the world where that's very important to us. Number two, we're gonna be able to bring, as you see here, Triple stack options into the market 5 years earlier than what our previous plan was, with complete freedom to operate and the ability to line up and provide additional volumes with our licensees, we've got tremendous amount of demand building with licensees today. Number three, we get to bring our next proprietary third gen above ground product, 2 years forward into the marketplace.
The second thing that this does, this agreement does, is it resolves. All the outstanding litigation with Bayer? And I think that's very helpful from a Clarity, uh, and risk management perspective. So that's what this agreement is intended to do. Like I said, I'm very pleased with the agreement judge. You want to just talk about some of the finer details.
We get to bring our next proprietary. Third gen above ground product. Uh, 2 years forward into the marketplace.
Yeah. Thanks Chuck and thanks Chris for the question and I think Chuck he captured it all extremely well. Um, in in, you know, we're we're still needing to bring product through the R&D pipeline, but maybe let me touch on it 1. We've got freedom to operate in canola in specific markets from around the world where that's very important to us. Um, number 2, we're going to be able to bring as you see here, triple stack options into the market 5 years earlier than what our previous plan was with complete freedom to operate.
Judd O'Connor: It's a great investment for all of our constituents, whether that be farmers, whether that be investors, whether that be our licensees, as we work closely with them going forward. And we're excited to be able to put this certainty, and freedom to operate, in the hands of our R&D team, so they can start streamlining the lines that they're bringing forward as well. So thanks.
Judd O'Connor: It's a great investment for all of our constituents, whether that be farmers, whether that be investors, whether that be our licensees, as we work closely with them going forward. And we're excited to be able to put this certainty, and freedom to operate, in the hands of our R&D team, so they can start streamlining the lines that they're bringing forward as well. So thanks.
Judd O'Connor: We also provided Bayer a license for Enlist cotton. They provided us an opportunity to license their HT4, and this provides us an opportunity to license in cotton, which we had no freedom to do previously. So comprehensively, it creates a tremendous amount of opportunity for us to continue to accelerate our ambitions in this space. We've got our germplasm funnel that has continued to widen so that we've got the germplasm that we need to be able to provide these traits.
Judd O'Connor: We also provided Bayer a license for Enlist cotton. They provided us an opportunity to license their HT4, and this provides us an opportunity to license in cotton, which we had no freedom to do previously. So comprehensively, it creates a tremendous amount of opportunity for us to continue to accelerate our ambitions in this space. We've got our germplasm funnel that has continued to widen so that we've got the germplasm that we need to be able to provide these traits.
Great, and the ability to, uh, line up and provide additional volumes with our licenses that, uh, we've got tremendous amount of demand building with licenses today. Number three, we get to bring our next proprietary, third-gen above ground product, uh, two years forward into the marketplace.
Um, we also provided bare license for enlisted cotton. They provided us an opportunity to license their ht4 and this provides us an opportunity to license in Cotton, which we had no freedom to do previously. So comprehensively it creates a tremendous amount of opportunity for us to continue to accelerate, um, our Ambitions in this space, we've got our germplasm funnel, that is continued to widen so that we've got the access or the germplasm that we need to be able to provide these traits. Um, and it just puts us in a really great spot, it's a great investment for all of our constituents, whether that be Farmers or whether they be investors, um, whether that be our licenses, if we work closely with them going forward. Um, and we're excited to be able to put this certainty, um, and freedom to operate, um, in the hands of our R&D team. So they can start streamlining the, uh, the, the lines that they're bringing forward as well. So,
Thanks.
Operator: Your next question comes from the line of Vincent Andrews with Morgan Stanley. Your line is open.
Operator: Your next question comes from the line of Vincent Andrews with Morgan Stanley. Your line is open.
Your next question comes from the line of Vincent Andrews with Morgan Stanley. Your line is open
Chuck Magro: Thank you, and good morning, everyone. Some more clarification on the Bayer agreement. Firstly, it sounds like there's some existing licensing expense that was going through the income statement that, with the payment of $610, you will no longer expense. So number one, is that true? And can you tell us how much it is and whether you had contemplated that back in October when you gave the original guidance? And then secondarily, you referenced HT4 having a license on that from Bayer. Can you clarify whether in future years, if you do elect to use that, whether you'll have to pay any per acre royalties to Bayer in the future for that? Or is that all encompassed in the $610, and you kind of have an all you can eat on that? Thanks.
Vincent Andrews: Thank you, and good morning, everyone. Some more clarification on the Bayer agreement. Firstly, it sounds like there's some existing licensing expense that was going through the income statement that, with the payment of $610, you will no longer expense. So number one, is that true? And can you tell us how much it is and whether you had contemplated that back in October when you gave the original guidance? And then secondarily, you referenced HT4 having a license on that from Bayer. Can you clarify whether in future years, if you do elect to use that, whether you'll have to pay any per acre royalties to Bayer in the future for that? Or is that all encompassed in the $610, and you kind of have an all you can eat on that? Thanks.
Judd O'Connor: ... and it just puts us in a really great spot. It's a great investment for all of our constituents, whether that be farmers, whether that be investors, whether that be our licensees, as we work closer with them going forward. And we're excited to be able to put this certainty and freedom to operate in the hands of our R&D team, so they can start streamlining the lines that they're bringing forward as well. So thanks.
Judd O'Connor: ... and it just puts us in a really great spot. It's a great investment for all of our constituents, whether that be farmers, whether that be investors, whether that be our licensees, as we work closer with them going forward. And we're excited to be able to put this certainty and freedom to operate in the hands of our R&D team, so they can start streamlining the lines that they're bringing forward as well. So thanks.
Um, we also provided bare license for enlisted cotton. They provided us an opportunity to license their ht4 and this provides us an opportunity to license in Cotton, which we had no freedom to do previously. So comprehensively it creates a tremendous amount of opportunity for us to, to continue to accelerate. Um, our Ambitions in this space, we've got our germplasm funnel that is continued to widen so that we've got the access or the germplasm that we need to be able to provide these traits. Um, and it just puts us in a really great spot, it's a great investment for all of our constituents, whether that be Farmers or the be investors, um, whether that be our licenses, if we work closely with them going forward. Um, and we're excited to be able to put this certainty um, and freedom to operate um, in the hands of our R&D team. So they can start streamlining the, uh, the, the lines that they're bringing for as well. So thanks.
Operator: Your next question comes from the line of Vincent Andrews with Morgan Stanley. Your line is open.
Operator: Your next question comes from the line of Vincent Andrews with Morgan Stanley. Your line is open.
Chuck Magro: Thank you, and good morning, everyone. Some more clarification on the Bayer agreement. Firstly, it sounds like there's some existing licensing expense that was going through the income statement that, with the payment of $610, you will no longer expense. So number one, is that true? And can you tell us how much it is and whether you had contemplated that back in October when you gave the original guidance? And then secondarily, you referenced, HT4, having a license on, on that from Bayer. Can you clarify whether in future years, if you do elect to use that, whether you'll have to pay any per acre, royalties to Bayer in the future for that? Or is that all encompassed in the $610, and you kind of have an all-you-can-eat on that? Thanks.
Chuck Magro: Thank you, and good morning, everyone. Some more clarification on the Bayer agreement. Firstly, it sounds like there's some existing licensing expense that was going through the income statement that, with the payment of $610, you will no longer expense. So number one, is that true? And can you tell us how much it is and whether you had contemplated that back in October when you gave the original guidance? And then secondarily, you referenced, HT4, having a license on, on that from Bayer. Can you clarify whether in future years, if you do elect to use that, whether you'll have to pay any per acre, royalties to Bayer in the future for that? Or is that all encompassed in the $610, and you kind of have an all-you-can-eat on that? Thanks.
Your next question comes from the line of Vincent Andrews with Morgan Stanley. Your line is open.
Uh, thank you and good morning everyone. Um, to some more clarification on the Bayer agreement. Um, firstly, um, it sounds like there's some existing licensing expense that was going through the income statement that uh, with the payment of the 610, uh, you will no longer expense. So number 1 is that true? And can you tell us how much it is and whether you had contemplated that back in October? When you gave the original guidance and then secondarily you referenced, uh, ht4, uh, having a license on on that from Bayer. Uh, can you clarify whether in future years, if you do elect to use that? Uh, whether you'll have to pay any per acre, uh, royalties today or in the future for that, or is that all encompassed in the 610 and you kind of have an all you can eat on that. Thanks.
David Johnson: Okay, Vincent, this is David. I'll handle the first part of that question. Perhaps Judd can follow up with the end. So in our current guide, we have $120 million of net royalty benefit in 2026. A portion of that is the fact that there were some Bayer royalties that we will not be paying now in 2026 and 2027. So that's what accelerated us to a net neutral position in 2026, which is two years ahead. The rest of the benefit of the entire overall agreement is really later, past 2027, when it adds over $100 million a year. And that gets more into the freedom to operate and more on the offensive on the licensing income piece.
David Johnson: Okay, Vincent, this is David. I'll handle the first part of that question. Perhaps Judd can follow up with the end. So in our current guide, we have $120 million of net royalty benefit in 2026. A portion of that is the fact that there were some Bayer royalties that we will not be paying now in 2026 and 2027. So that's what accelerated us to a net neutral position in 2026, which is two years ahead. The rest of the benefit of the entire overall agreement is really later, past 2027, when it adds over $100 million a year. And that gets more into the freedom to operate and more on the offensive on the licensing income piece.
Okay Vincent this is David. I'll handle the the first part of that question perhaps dead can follow up with with day and so in our current guide we have a 120 million of net royalty benefit in 26. A portion of that is the fact that there were some bear royalties that we will not be paying now in 26 and 27. So that's what accelerated us to a net neutral position in 26 which is 2 years ahead. The rest of the benefit of the entire overall agreement.
David Johnson: Okay, Vincent, this is David. I'll handle the first part of that question. Perhaps Judd can follow up with the end. So in our current guide, we have $120 million of net royalty benefit in 2026. A portion of that is the fact that there were some Bayer royalties that we will not be paying now in 2026 and 2027. So that's what accelerated us to a net neutral position in 2026, which is 2 years ahead. The rest of the benefit of the entire overall agreement is really later, past 2027, when it adds over $100 million a year. And that gets more into the freedom to operate and more on the offensive on the licensing income piece.
David Johnson: Okay, Vincent, this is David. I'll handle the first part of that question. Perhaps Judd can follow up with the end. So in our current guide, we have $120 million of net royalty benefit in 2026. A portion of that is the fact that there were some Bayer royalties that we will not be paying now in 2026 and 2027. So that's what accelerated us to a net neutral position in 2026, which is 2 years ahead. The rest of the benefit of the entire overall agreement is really later, past 2027, when it adds over $100 million a year. And that gets more into the freedom to operate and more on the offensive on the licensing income piece.
Is really later passed 2027 when it adds over a hundred million dollars a year and that gets more into the freedom to operate and more on the offensive on the licensing income piece.
Your next question comes from the line of Joel Jackson.
Operator: Your next question comes from the line of Joel Jackson.
Operator: Your next question comes from the line of Joel Jackson.
Wait.
Please go ahead.
Judd O'Connor: Wait. Oh, oh, okay.
Judd O'Connor: Wait. Oh, oh, okay.
Operator: Please go ahead.
Operator: Please go ahead.
Judd O'Connor: Maybe I jump in here. Joel, thanks for just a little bit of time to answer Vincent, the second piece of Vincent's questions on access to HT4. Does that come royalty-free? No, it doesn't come royalty-free. I mean, we would, we would have a royalty that's associated with that, as they would with the license that, that, we would provide reciprocally with them. But it puts in a really good position with certainty in terms of the path forward and making sure that we can continue to bring our products on the marketplace. Thanks.
Judd O'Connor: Maybe I jump in here. Joel, thanks for just a little bit of time to answer Vincent, the second piece of Vincent's questions on access to HT4. Does that come royalty-free? No, it doesn't come royalty-free. I mean, we would, we would have a royalty that's associated with that, as they would with the license that, that, we would provide reciprocally with them. But it puts in a really good position with certainty in terms of the path forward and making sure that we can continue to bring our products on the marketplace. Thanks.
Okay, Vincent, this is David. I'll handle the, the first part of that question, perhaps Doug can follow up with with the end. So in our current guide, we have a 120 million of net royalty benefit in 26. A portion of that is the fact that there were some bear royalties that we will not be paying now in 26 and 27. So that's what accelerated us to a net neutral position in 26 which is 2 years ahead. The rest of the benefit of the entire overall agreement.
So, maybe I jumped in here, Joel. Thanks for just a little bit of time to answer. Vincent the second piece of Vincent's questions on access to ht4. Um, does that come royalty-free? No, no, it doesn't come royalty-free. I mean, we would, we would have a royalty that's associated with that, as they would with the license that that um, we would prefer
Is really later passed 2027 when it adds over a hundred million dollars a year and that gets more into the freedom to operate and more on the offensive on the licensing income piece.
Operator: Your next question comes from the line of Joel Jackson.
Operator: Your next question comes from the line of Joel Jackson.
Provide reciprocally with them. So, um, but it puts in a really good position with certainty in terms of path forward and making sure that we can continue to bring our products on the marketplace. So thanks.
Your next question comes from the line.
Judd O'Connor: Wait. Oh, okay.
Josh Spector: Wait. Oh, okay.
Joel Jackson.
Wait.
Operator: Please go ahead.
Operator: Please go ahead.
Joel Jackson: Thank you for that. I'll ask my question now. So I wanna follow up on that a bit, too. I went to your Investor Day deck from late 2024, and if I compare your, you know, how you were showing you going from a net outflow payer of royalties to becoming positive, and I look at that chart versus the chart you presented last night in your deck, it looks the same through 2030, and now you show a 2035, where it's $1 billion. I'm just trying to reconcile that with statements that you're pulling forward things to this decade, you know, from the next decade, you're pulling things two years forward, five years forward, but it looks the same through 2030 and more, if incorrect, to 2031, 2032, 2033, 2034, 2035. Can you reconcile that, please?
Joel Jackson: Thank you for that. I'll ask my question now. So I wanna follow up on that a bit, too. I went to your Investor Day deck from late 2024, and if I compare your, you know, how you were showing you going from a net outflow payer of royalties to becoming positive, and I look at that chart versus the chart you presented last night in your deck, it looks the same through 2030, and now you show a 2035, where it's $1 billion. I'm just trying to reconcile that with statements that you're pulling forward things to this decade, you know, from the next decade, you're pulling things two years forward, five years forward, but it looks the same through 2030 and more, if incorrect, to 2031, 2032, 2033, 2034, 2035. Can you reconcile that, please?
Please go ahead.
Judd O'Connor: So maybe I jump in here. Vin, Joel, thanks for just a little bit of time to answer Vincent's - the second piece of Vincent's questions on access to HT4. Does that come royalty-free? No, it doesn't come royalty-free. I mean, we would have a royalty that's associated with that, as they would with the license that we would provide reciprocally with them. So, but it puts in a really good position with certainty in terms of path forward and making sure that we can continue to bring our products on the marketplace. So thanks.
Judd O'Connor: So maybe I jump in here. Vin, Joel, thanks for just a little bit of time to answer Vincent's - the second piece of Vincent's questions on access to HT4. Does that come royalty-free? No, it doesn't come royalty-free. I mean, we would have a royalty that's associated with that, as they would with the license that we would provide reciprocally with them. So, but it puts in a really good position with certainty in terms of path forward and making sure that we can continue to bring our products on the marketplace. So thanks.
Thank you for that. I'll ask my question now. Um, so I want to follow up on that a bit too. I'll have to invest today deck from late 2024. And if I compare your, um, you know, how you were showing you going from a net outflow, payer royalties to, uh, becoming positive. And I look at that chart versus the chart, you presented last night in your deck. Um, it looks the same through 2030 and now you show a 2035 where it's a billion dollars, I'm just trying to reconcile that with state
So, maybe I jumped in here, Joel. Thanks for just a little bit of time to answer Vince's. The second piece of Vincent's questions on access to ht4. Um, does that come royalty-free? No, no, it doesn't come royalty-free. I mean, we would, we would have a royalty that's associated with that, as they would with the license that that um, we would prefer.
That you're pulling forward things to this decade, you know, from La for the next decade, you're pointing them to your forward 5 years forward, but it looks the same through 2030.
And more of incremental 20312345, can you reconcile that please?
Provide reciprocally with them. So, um, but it puts us in a really good position with certainty in terms of the path forward and making sure that we can continue to bring our products to the marketplace. So, thanks.
[Analyst] (BMO Capital Markets): Thank you for that. I'll ask my question now. So I want to follow up on that a bit too. I looked at your Investor Day deck from late 2024, and if I compare your, you know, how you were showing you going from a net outflow payer of royalties to, becoming positive, and I look at that chart versus the chart you presented last night in your deck, it looks the same through 2030, and now you show a 2035, where it's $1 billion. I'm just trying to reconcile that with statements that you're pulling forward things to this decade, you know, from last or next decade. You're pulling things 2 years forward, 5 years forward, but it looks the same through 2030 and more incremental 2031, 2032, 2033, 2034, 2035. Can you reconcile that, please?
Judd O'Connor: Thank you for that. I'll ask my question now. So I want to follow up on that a bit too. I looked at your Investor Day deck from late 2024, and if I compare your, you know, how you were showing you going from a net outflow payer of royalties to, becoming positive, and I look at that chart versus the chart you presented last night in your deck, it looks the same through 2030, and now you show a 2035, where it's $1 billion. I'm just trying to reconcile that with statements that you're pulling forward things to this decade, you know, from last or next decade. You're pulling things 2 years forward, 5 years forward, but it looks the same through 2030 and more incremental 2031, 2032, 2033, 2034, 2035. Can you reconcile that, please?
Chuck Magro: Joel, look, I'd have to look at the details that you're going back to, back to the Investor Day, but it should not be the same. The acceleration that this agreement gives us is pretty powerful. You know, when we were thinking about our original royalty journey, we were really talking about soybeans and then corn starting in late next decade. And now we're talking about corn starting now, basically in 2027, and then the introduction of cotton now. So when you put all that together, I think that what you're gonna see is that we've really put our licensing business in a much higher gear than what we could have done absence of clarity around this comprehensive agreement.
Chuck Magro: Joel, look, I'd have to look at the details that you're going back to, back to the Investor Day, but it should not be the same. The acceleration that this agreement gives us is pretty powerful. You know, when we were thinking about our original royalty journey, we were really talking about soybeans and then corn starting in late next decade. And now we're talking about corn starting now, basically in 2027, and then the introduction of cotton now. So when you put all that together, I think that what you're gonna see is that we've really put our licensing business in a much higher gear than what we could have done absence of clarity around this comprehensive agreement.
Thank you for that. I'll ask my question now. Um, so I want to follow up on that a bit too. I have the 'Invest Today' deck from late 2024. And if I compare your, um, you know, how you were showing you going from a net outflow—payer royalties—to, uh, becoming positive, and I look at that chart versus the chart you presented last night in your deck, um, it looks the same through 2030. And now you show a 2035 where it's a billion dollars. I'm just trying to reconcile that with statements that you're pulling forward things to this decade, you know, from, like, for the next decade. You're pointing them to 2 years forward, 5 years forward, but it looks the same through 2030.
And more of incremental 2031 2 345. Can we reconcile that please
Chuck Magro: Joel, look, I'd have to look at the details that you're going back to, back to the Investor Day, but it should not be the same. The acceleration that this agreement gives us is pretty powerful. You know, when we were thinking about our original royalty journey, we were really talking about soybeans and then corn starting in late next decade. And now we're talking about corn starting now, basically in 2027, and then the introduction of cotton now. So when you put all that together, I think that what you're gonna see is that we've really put our licensing business in a much higher gear than what we could have done absence of clarity around this comprehensive agreement. So I...
Chuck Magro: Joel, look, I'd have to look at the details that you're going back to, back to the Investor Day, but it should not be the same. The acceleration that this agreement gives us is pretty powerful. You know, when we were thinking about our original royalty journey, we were really talking about soybeans and then corn starting in late next decade. And now we're talking about corn starting now, basically in 2027, and then the introduction of cotton now. So when you put all that together, I think that what you're gonna see is that we've really put our licensing business in a much higher gear than what we could have done absence of clarity around this comprehensive agreement. So I...
Chuck Magro: So you know, we'll have to go back, and we'll look at the numbers, but the acceleration of, from a freedom to operate is real, and it's pulling our corn in many cases, many years ahead, and it's also opening up the door on cotton. I think the other thing is, this does not contemplate wheat. So if you start thinking about that, and we've said that our hybrid wheat opportunity, combined with our branded business and our licensing opportunity, would be $1 billion in revenue. So when you start thinking about this strategically as Corteva and then soon to be SpinCo, this provides, you know, a huge amount of value creation for our shareholders.
Chuck Magro: So you know, we'll have to go back, and we'll look at the numbers, but the acceleration of, from a freedom to operate is real, and it's pulling our corn in many cases, many years ahead, and it's also opening up the door on cotton. I think the other thing is, this does not contemplate wheat. So if you start thinking about that, and we've said that our hybrid wheat opportunity, combined with our branded business and our licensing opportunity, would be $1 billion in revenue. So when you start thinking about this strategically as Corteva and then soon to be SpinCo, this provides, you know, a huge amount of value creation for our shareholders.
I think that what you're going to see is that we've, we've really put our our licensing business in a, a much higher gear than what we could have done absence of of clarity around this comprehensive agreement. So I, you know, we'll have to go back and we'll look at the numbers but the acceleration of from a freedom to operate is real. And it's pulling our corn in many cases, many years ahead and it's it's also opening up the door on Cotton.
I think the other thing is this does not contemplate wheat.
Uh, Joel look. I I'd have to look at the the the details that you're going back to back to the investor day, but it's it should not be the same. The, the acceleration that this agreement gives us is is pretty powerful. Um, you know, when we were thinking about our original, uh, uh, royalty Journey. We were really talking about soybeans and then corn starting in late next decade. Um, and now we're talking about corn starting now, basically in 2027, um, and then the introduction of cotton now. Um, so
Chuck Magro: The licensing opportunities continue to grow, and as Judd mentioned, even today, we have more demand than we have supply. So this was a matter of clearing up the access to the freedom to operate, and now that we have that, we can set our R&D and our commercial teams to meet the growing demand that we have for soybeans, for cotton, for corn, and soon to be wheat.
Chuck Magro: The licensing opportunities continue to grow, and as Judd mentioned, even today, we have more demand than we have supply. So this was a matter of clearing up the access to the freedom to operate, and now that we have that, we can set our R&D and our commercial teams to meet the growing demand that we have for soybeans, for cotton, for corn, and soon to be wheat.
Chuck Magro: You know, we'll have to go back, and we'll look at the numbers, but the acceleration of, from a freedom to operate is real, and it's pulling our corn, in many cases, many years ahead, and it's, it's also opening up the door on cotton. I think the other thing is, this does not contemplate wheat. So if you start thinking about that, and we've said that our hybrid wheat opportunity, combined with our branded business and our licensing opportunity, would be $1 billion in revenue. So when you start thinking about this strategically as, as Corteva and then soon to be SpinCo, this provides, you know, a, a, a huge amount of value creation for our shareholders. The licensing opportunities continue to grow, and as Judd mentioned, even today, we have more demand than we have supply.
Chuck Magro: You know, we'll have to go back, and we'll look at the numbers, but the acceleration of, from a freedom to operate is real, and it's pulling our corn, in many cases, many years ahead, and it's, it's also opening up the door on cotton. I think the other thing is, this does not contemplate wheat. So if you start thinking about that, and we've said that our hybrid wheat opportunity, combined with our branded business and our licensing opportunity, would be $1 billion in revenue. So when you start thinking about this strategically as, as Corteva and then soon to be SpinCo, this provides, you know, a, a, a huge amount of value creation for our shareholders. The licensing opportunities continue to grow, and as Judd mentioned, even today, we have more demand than we have supply.
So when you put all that together, I think that what you're going to see is that we've, we've really put our our licensing business in a, a much higher gear than what we could have done absence of of clarity around this comprehensive agreement. So I, you know, we'll have to go back and we'll look at the numbers but the acceleration of from a freedom to operate is real. And it's pulling our corn in many cases, many years ahead and it's it's also opening up the door on Cotton.
So if you start thinking about that and we've said that our hybrid wheat opportunity combined with our branded business, and our licensing opportunity would be a billion of Revenue. So when you start thinking about this, strategically as as corteva, and then soon, to be spinco, this provides, you know, a, a, a huge amount of value creation for our shareholders, the licensing opportunities continue to grow and as Jude mentioned, even today, we have more demand than we have Supply. Um, so this was a matter of clearing up the access to the, to the freedom to operate. And now that we we have that we can set our R&D and our commercial teams to meet the growing demand that we have for soybeans for, for cotton, for corn and soon to be wheat.
I think the other thing is this does not contemplate wheat.
Robert King: Your next question comes from the line of Kevin McCarthy with Vertical Research. Your line is open.
Operator: Your next question comes from the line of Kevin McCarthy with Vertical Research. Your line is open.
Your next question comes from the line of Kevin McCarthy, with vertical research. Your line is open
Kevin McCarthy: Yes, thank you, and good morning. Maybe a two-part question on the subject of gene editing. As we follow the regulatory developments in Europe, it seems as though there is a developing regulatory framework, whereby Europe could open its market to gene-edited seeds. So the first part would be, do you expect that to happen in 2026? And what might it mean for Corteva, you know, over the medium to long term? Then secondly, I think one of your gene-edited products is multi-disease-resistant corn. I was wondering if you could just provide an update on that product for the US market and when we might expect commercialization of MDR. Thanks.
Kevin McCarthy: Yes, thank you, and good morning. Maybe a two-part question on the subject of gene editing. As we follow the regulatory developments in Europe, it seems as though there is a developing regulatory framework, whereby Europe could open its market to gene-edited seeds. So the first part would be, do you expect that to happen in 2026? And what might it mean for Corteva, you know, over the medium to long term? Then secondly, I think one of your gene-edited products is multi-disease-resistant corn. I was wondering if you could just provide an update on that product for the US market and when we might expect commercialization of MDR. Thanks.
Thank you and good morning. Um, maybe a 2-part question on the subject of Gene editing uh as we follow the regulatory developments in Europe, it, it seems as though
Chuck Magro: So this was a matter of clearing up the access to the freedom to operate, and now that we have that, we can set our R&D and our commercial teams to meet the growing demand that we have for soybeans, for cotton, for corn, and soon to be wheat.
Chuck Magro: So this was a matter of clearing up the access to the freedom to operate, and now that we have that, we can set our R&D and our commercial teams to meet the growing demand that we have for soybeans, for cotton, for corn, and soon to be wheat.
There is a developing regulatory framework uh whereby Europe could open its Market uh to Gene edited seeds. So the first part would be do do you expect that to happen in 2026? And what might it mean for corteva?
So if you start thinking about that and we've said that our hybrid wheat opportunity combined with our branded business, and our licensing opportunity would be a billion of Revenue. So when you start thinking about this, strategically as as corteva, and then soon, to be spinco, this provides, you know, a, a, a huge amount of value creation for our shareholders, the licensing opportunities continue to grow and as Jude mentioned, even today, we have more demand than we have Supply. Um, so this was a matter of clearing up the access to the, to the freedom to operate. And now that we we have that we can set our R&D and our commercial teams to meet the growing demand that we have for soybeans for, for cotton, for corn and soon to be wheat.
Operator: Your next question comes from the line of Kevin McCarthy with Vertical Research Partners. Your line is open.
Operator: Your next question comes from the line of Kevin McCarthy with Vertical Research Partners. Your line is open.
[Analyst] (Vertical Research Partners): Yes, thank you, and good morning. Maybe a two-part question on the subject of gene editing. As we follow the regulatory developments in Europe, it seems as though there is a developing regulatory framework, whereby Europe could open its market to gene-edited seeds. So the first part would be, do you expect that to happen in 2026? And what might it mean for Corteva, you know, over the medium to long term? Then secondly, I think one of your gene-edited products is multi-disease resistant corn. I was wondering if you could just provide an update on that product for the US market and when we might expect commercialization of MDR. Thanks.
Kevin W. McCarthy: Yes, thank you, and good morning. Maybe a two-part question on the subject of gene editing. As we follow the regulatory developments in Europe, it seems as though there is a developing regulatory framework, whereby Europe could open its market to gene-edited seeds. So the first part would be, do you expect that to happen in 2026? And what might it mean for Corteva, you know, over the medium to long term? Then secondly, I think one of your gene-edited products is multi-disease resistant corn. I was wondering if you could just provide an update on that product for the US market and when we might expect commercialization of MDR. Thanks.
Your next question comes from the line of Kevin McCarthy with Vertical Research. Your line is open.
You know, over the medium to long term then secondly I think 1 of your Gene edited products is multi- disease, resistance in corn. I was wondering if you could just provide an update on that product for the US market and and when we might, um, expect commercialization of of, um, MDR. Thanks.
Chuck Magro: Yeah. Good morning, Kevin. Sure. So, look, we're, if you, if you step back and you look at the global regulatory framework, we're, we're seeing very good progress on support for gene editing around the world. In fact, most of the major producing countries now have policies firmly in place. To your question with the EU, in December, there was an agreement with an EU framework. It, it still needs to be formally adopted by Parliament and the Council, and we are expecting that, hopefully soon, I'd say, by the first half of this year. And we are very supportive of what we've seen so far. We think it's science-based.
Chuck Magro: Yeah. Good morning, Kevin. Sure. So, look, we're, if you, if you step back and you look at the global regulatory framework, we're, we're seeing very good progress on support for gene editing around the world. In fact, most of the major producing countries now have policies firmly in place. To your question with the EU, in December, there was an agreement with an EU framework. It, it still needs to be formally adopted by Parliament and the Council, and we are expecting that, hopefully soon, I'd say, by the first half of this year. And we are very supportive of what we've seen so far. We think it's science-based.
Thank you, and good morning. Um, maybe a two-part question on the subject of gene editing. Uh, as we follow the regulatory developments in Europe, it—it seems as though
Yeah. Good morning, Kevin sure. So uh look up we're um if if you step back and you look at the global regulatory framework, we're seeing very good progress on support for Gene editing around the world. In fact, most of the major producing
There is a developing regulatory framework whereby Europe could open its market to gene-edited seeds. So, the first part would be, do you expect that to happen in 2026? And what might it mean for Corteva?
Countries now have policies firmly in place to your question with the EU in December, there was an agreement with an EU framework. It, it still needs to be formally adopted by Parliament and and the council and we are expecting that uh, hopefully soon I'd say by the first half of this year.
Chuck Magro: We think that it's gonna be quite practical, and it's gonna allow us to bring much better crop technology to European farmers and really help, I think, the EU from a overall food security and self-sufficiency perspective. In the regulatory framework that is being proposed, I think we'll have some areas where it'll actually be a simplified process, which will allow us to get, I think, products to market a lot more quickly. Now, we still need China approval. It's probably one of the last remaining significant import markets that we need approval, and we're very hopeful that we'll get that soon. If you think about gene editing, and you know, you've heard me talk about this before, there's probably no more important technology right now that we can bring to market to help farmers.
Chuck Magro: We think that it's gonna be quite practical, and it's gonna allow us to bring much better crop technology to European farmers and really help, I think, the EU from a overall food security and self-sufficiency perspective. In the regulatory framework that is being proposed, I think we'll have some areas where it'll actually be a simplified process, which will allow us to get, I think, products to market a lot more quickly. Now, we still need China approval. It's probably one of the last remaining significant import markets that we need approval, and we're very hopeful that we'll get that soon. If you think about gene editing, and you know, you've heard me talk about this before, there's probably no more important technology right now that we can bring to market to help farmers.
Chuck Magro: Yeah. Good morning, Kevin. Sure. So, look, we're, if you, if you step back and you look at the global regulatory framework, we're seeing very good progress on support for gene editing around the world. In fact, most of the major producing countries now have policies firmly in place. To your question with the EU, in December, there was an agreement with an EU framework. It still needs to be formally adopted by parliament and the council, and we are expecting that, hopefully soon, I'd say, by the first half of this year. And we are very supportive of what we've seen so far. We think it's science-based.
Chuck Magro: Yeah. Good morning, Kevin. Sure. So, look, we're, if you, if you step back and you look at the global regulatory framework, we're seeing very good progress on support for gene editing around the world. In fact, most of the major producing countries now have policies firmly in place. To your question with the EU, in December, there was an agreement with an EU framework. It still needs to be formally adopted by parliament and the council, and we are expecting that, hopefully soon, I'd say, by the first half of this year. And we are very supportive of what we've seen so far. We think it's science-based.
Term then secondly I I think 1 of your Gene edited products is multi- disease resistant corn. I was wondering if you could just provide an update on that product for the US market and and when we might, um, expect commercialization of of, um, MDR. Thanks.
Yeah. Good morning, Kevin sure. So uh look up we're um if if you step back and you look at the global regulatory framework, we're seeing very good progress on support for Gene editing around the world. In fact, most of the major producing
Countries now have policies firmly in place to your question with the EU in December, there was an agreement with the EU framework. It, it still needs to be formally adopted by Parliament. And and and the council and we are expecting that uh, hopefully soon. I'd say by the first half of this year.
Chuck Magro: We think that it's gonna be quite practical, and it's gonna allow us to bring much better crop technology to European farmers and really help, I think, the EU from an overall food security and self-sufficiency perspective. In the regulatory framework that is being proposed, I think we'll have some areas where it'll actually be a simplified process, which will allow us to get, I think, products to market a lot more quickly. Now, we still need China approval. It's probably one of the last remaining significant import markets that we need approval, and we're very hopeful that we'll get that soon. If you think about gene editing, and you know, you've heard me talk about this before, there's probably no more important technology right now that we can bring to market to help farmers.
Chuck Magro: We think that it's gonna be quite practical, and it's gonna allow us to bring much better crop technology to European farmers and really help, I think, the EU from an overall food security and self-sufficiency perspective. In the regulatory framework that is being proposed, I think we'll have some areas where it'll actually be a simplified process, which will allow us to get, I think, products to market a lot more quickly. Now, we still need China approval. It's probably one of the last remaining significant import markets that we need approval, and we're very hopeful that we'll get that soon. If you think about gene editing, and you know, you've heard me talk about this before, there's probably no more important technology right now that we can bring to market to help farmers.
Chuck Magro: If you start thinking about how thin farmers' margins are right now, this technology can go a long way to helping farmers improve their profitability. Now, to your second question around our products, that's right. We have a gene-edited fungal disease-resistant corn hybrid. We call it a Disease Super Locus. And I've seen the test plots. It continues to look fantastic in our test fields. And we will be able to bring that to the market, most likely within a year or two after receiving our overall regulatory approvals. And we're pretty excited about that. We'll first bring it to the US market, but then we'll quickly move that technology around the world.
Chuck Magro: If you start thinking about how thin farmers' margins are right now, this technology can go a long way to helping farmers improve their profitability. Now, to your second question around our products, that's right. We have a gene-edited fungal disease-resistant corn hybrid. We call it a Disease Super Locus. And I've seen the test plots. It continues to look fantastic in our test fields. And we will be able to bring that to the market, most likely within a year or two after receiving our overall regulatory approvals. And we're pretty excited about that. We'll first bring it to the US market, but then we'll quickly move that technology around the world.
And we are very supportive of of what we've seen so far. We think it's science-based. We think that that it's going to be quite practical and it's going to allow us to bring much better crop. Uh, technology to European farmers and really help I think the EU from a overall food security and self-sufficiency perspective and in the regulatory framework that is being proposed. I think we'll have some areas where it'll, it'll actually be a simplified process which will allow us to get I think products to Market. Um, a lot more quickly. Now, we still need China approval. It's probably 1 of the. The last remaining significant import markets that we we need approval uh and we're very hopeful that we'll get that soon. If you think about Gene editing and you know, you've heard me talk about this before. There's probably no more important technology right now that we we can bring to Market to help farmers. And if you start thinking about how thin Farmers margins are right now, this technology can go a lot way to helping Farmers improve.
With their profitability.
Now to your second question, around our products. So that's right. We have a a, a gene edited fungal disease, resistant corn hybrid, we call it a disease, super Locust.
And we are very supportive of of what we've seen so far. We think it's science-based. We think that that it's going to be quite practical and it's going to allow us to bring much better crop. Uh technology to European farmers and and really help I think the EU from a overall food security and self-sufficiency perspective and in the regulatory framework that is being proposed. I think will have some areas where it'll, it'll actually be a simplified process which will allow us to get I think products to Market. Um, a lot more quickly. Now, we still need China approval. It's probably 1 of the. The last remaining significant import markets.
Chuck Magro: If you start thinking about how thin farmers' margins are right now, this technology can go a long way to helping farmers improve their profitability. Now, to your second question around our products. So that's right, we have a gene-edited fungal disease-resistant corn hybrid. We call it a Disease super locus. And I've seen the test plots. It continues to look fantastic in our test fields. And we will be able to bring that to the market, most likely within a year or two after receiving our overall regulatory approvals, and we're pretty excited about that. We'll first bring it to the US market, but then we'll quickly move that technology around the world.
Chuck Magro: If you start thinking about how thin farmers' margins are right now, this technology can go a long way to helping farmers improve their profitability. Now, to your second question around our products. So that's right, we have a gene-edited fungal disease-resistant corn hybrid. We call it a Disease super locus. And I've seen the test plots. It continues to look fantastic in our test fields. And we will be able to bring that to the market, most likely within a year or two after receiving our overall regulatory approvals, and we're pretty excited about that. We'll first bring it to the US market, but then we'll quickly move that technology around the world.
Um, and I've seen the the test plots, it continues to look fantastic in in our test Fields, um, and we will be able to bring that to the market, most likely within a year or 2 after receiving our overall, um, regulatory approvals. Um, and we're pretty excited about that. Um, we'll first bring it to the US market but then we'll quickly move that technology around the world.
That we we need approval uh, and we're very hopeful that we'll get that soon. If you think about Gene editing and you know, you've heard me talk about this before. There's probably no more important technology right now that we we can bring to Market to help farmers. And if you start thinking about how thin Farmers margins are right now, this technology can go a lot way to helping Farmers improve their profitability.
Robert King: Your next question comes from the line of David Begleiter with Deutsche Bank. Your line is open.
Operator: Your next question comes from the line of David Begleiter with Deutsche Bank. Your line is open.
Your next question comes from the line of David big, big letter with Deutsche Bank. Your line is open,
Jeffrey Zekauskas: Thank you. Good morning. Chuck, can you discuss your US order books for the upcoming year and how the pressure on the farmers is manifesting itself into this year's buying activities? Thank you.
David Begleiter: Thank you. Good morning. Chuck, can you discuss your US order books for the upcoming year and how the pressure on the farmers is manifesting itself into this year's buying activities? Thank you.
Thank you. Good morning, Chuck. Can you discuss your us order books, uh, for the upcoming year? And how the pressure on the farmer is is uh, is a manifesting itself into this year's buying activities. Thank you.
What CP. Go ahead, Judd.
Chuck Magro: Sure. Well, why don't we start with seed, and then Robert can talk about CP. Go ahead, Judd.
Chuck Magro: Sure. Well, why don't we start with seed, and then Robert can talk about CP. Go ahead, Judd.
Judd O'Connor: Yes, thanks for the question. Our order books are, you know, very strong at this point in time. Our prepay that we've collected is on par with prior year, and our cash credit mix is very, very similar, plus or minus a point or two. So we feel really good about the position we're in. I guess translation may be: What's your guess on corn acres? I'd say it's February, there's still snow on the ground, and that corn versus soy mix, it's gonna shift a little bit. There'd be a little bit of weight towards, you know, some more soy acres in space of corn. It's all very well manageable and within the guide that we've provided, so...
Judd O'Connor: Yes, thanks for the question. Our order books are, you know, very strong at this point in time. Our prepay that we've collected is on par with prior year, and our cash credit mix is very, very similar, plus or minus a point or two. So we feel really good about the position we're in. I guess translation may be: What's your guess on corn acres? I'd say it's February, there's still snow on the ground, and that corn versus soy mix, it's gonna shift a little bit. There'd be a little bit of weight towards, you know, some more soy acres in space of corn. It's all very well manageable and within the guide that we've provided, so...
Now, to your second question, around our products. So that's right. We have a, a, a genetic fungal disease, resistant, corn hybrid. We call it a disease, super Locust. Um, and I've seen the the test plots, it continues to look fantastic in in our test Fields, um, and we will be able to bring that to the market, most likely within a year or 2 after receiving our overall, um, regulatory approvals. Um, and we're pretty excited about that. Um, we'll first bring it to the US market but then we'll quickly move that technology around the world.
Operator: Your next question comes from the line of David Begleiter with Deutsche Bank. Your line is open.
Operator: Your next question comes from the line of David Begleiter with Deutsche Bank. Your line is open.
[Analyst] (Deutsche Bank): Thank you. Good morning. Chuck, can you discuss your US order books for the upcoming year and how the pressure on the farmers is manifesting itself into this year's buying activities? Thank you.
David Begleiter: Thank you. Good morning. Chuck, can you discuss your US order books for the upcoming year and how the pressure on the farmers is manifesting itself into this year's buying activities? Thank you.
Your next question comes from the line of David big, big letter with Deutsche Bank. Your line is open,
Chuck Magro: Sure. Well, why don't we start with Seed and then Robert can talk about CP. Go ahead, Judd.
Chuck Magro: Sure. Well, why don't we start with Seed and then Robert can talk about CP. Go ahead, Judd.
Thank you. Good morning, Chuck. Can you discuss your us order books, uh, for the upcoming year? And how the pressure on the farmers is a is a manifesting itself into this year is buying activities. Thank you.
Judd O'Connor: Yes, thanks for the question. Our order books are, you know, very strong at this point in time. Our prepay that we've collected is on par with prior year, and our cash credit mix is very, very similar, plus or minus a point or two. So we feel really good about the position we're in. I guess translation may be: What's your guess on corn acres? I'd say it's February, there's still snow on the ground, and that corn versus soy mix, it's gonna shift a little bit. There'd be a little bit of weight towards, you know, some more soy acres in space of corn. It's all very well manageable and within the guide that we've provided.
Judd O'Connor: Yes, thanks for the question. Our order books are, you know, very strong at this point in time. Our prepay that we've collected is on par with prior year, and our cash credit mix is very, very similar, plus or minus a point or two. So we feel really good about the position we're in. I guess translation may be: What's your guess on corn acres? I'd say it's February, there's still snow on the ground, and that corn versus soy mix, it's gonna shift a little bit. There'd be a little bit of weight towards, you know, some more soy acres in space of corn. It's all very well manageable and within the guide that we've provided.
Sure, well, why don't we start with Seed, and then Robert can talk about CP. Go ahead, Judd.
Judd O'Connor: But feel really good about the start to the year, both with our direct Pioneer as well as our Brevant, retail brand.
Judd O'Connor: But feel really good about the start to the year, both with our direct Pioneer as well as our Brevant, retail brand.
Yes. Um, thanks for the question. Uh, our order books are, you know, very strong at this point in time or prepaid that we've collected is on par with prior year. Um, and our cash credit mix is very, very similar plus or minus a pointer to. So we feel really good about the position we're in. Um, I guess translation may be what's your guess on corn Acres, I'd say it's February, there's still snow on the ground and, um, that corn versus soy mix. It's going to ship a little bit. There'd be a little bit of weight towards, um, you know, some some more soy acres in space of corn. It's all very well manageable and within the guide that we've provided so, um, but feel really good about the start of the Year, both with our direct pioneer as well as our brovont. Um retail brands.
Robert King: And David, it's Robert for, crop protection. Very similar story. Very strong order books across the northern hemisphere. Europe is in full swing, and North America is moving. As we look into January, we're, you know, we're having a strong, strong, movement now. And keep in mind, both of these markets this last year, you know, grew a few tenths, and that momentum continues as we're, as we're moving forward here. So thank you. Your next question comes from the line of Josh Spector with UBS. Your line is open.
Robert King: And David, it's Robert for, crop protection. Very similar story. Very strong order books across the northern hemisphere. Europe is in full swing, and North America is moving. As we look into January, we're, you know, we're having a strong, strong, movement now. And keep in mind, both of these markets this last year, you know, grew a few tenths, and that momentum continues as we're, as we're moving forward here. So thank you.
And David, it's Robert for crop protection. Very similar story. Um, very strong order books across the Northern Hemisphere, uh, Europe is in full swing and North America is moving. Uh, as we look into January, we, you know, we're having a strong strong, uh, movement now. Um, and keep in mind both of these markets this last year, um, you know, grew a few tenths and that momentum continues as we are, as we're moving forward here. So thank you.
Judd O'Connor: So, but feel really good about the start to the year, both with our direct Pioneer as well as our Brevant retail brands.
Judd O'Connor: So, but feel really good about the start to the year, both with our direct Pioneer as well as our Brevant retail brands.
Operator: Your next question comes from the line of Josh Spector with UBS. Your line is open.
Your next question comes from the line of Joshua Spectre with UBS. Your line is open.
Robert King: And David, it's Robert for crop protection. Very similar story. Very strong order books across the northern hemisphere. Europe is in full swing, and North America is moving. As we look into January, we, you know, we're having a strong, strong movement now. And keep in mind, both of these markets this last year, you know, grew a few temps, and that momentum continues as we're moving forward here. So thank you.
Robert King: And David, it's Robert for crop protection. Very similar story. Very strong order books across the northern hemisphere. Europe is in full swing, and North America is moving. As we look into January, we, you know, we're having a strong, strong movement now. And keep in mind, both of these markets this last year, you know, grew a few temps, and that momentum continues as we're moving forward here. So thank you.
Yes. Um, thanks for the question. Uh, our order books are, you know, very strong at this point in time or prepaid that we've collected is on par with prior year. Um, and our cash credit mix is very, very similar plus or minus a point or 2. So we feel really good about this position. We're in, um, I guess translation may be what's your guess on corn Acres, I'd say it's February. There's still snow on the ground and, um, that corn versus soy mix. It's going to shift a little bit. There'd be a little bit of weight towards, um, you know, some some more soy acres in space of corn. It's all very well manageable and within the guide that we've provided so, um, but feel really good about the start of the Year, both with our direct pioneer as well as our bra brevant um retail brands.
Josh Spector: Yeah. Hi, good morning. I wanted to ask on free cash flow. Obviously, really strong performance last year. I mean, how are you thinking about the conversion into 2026? Is there something one-off last year that gives back, or is this something that you guys build on top of? Thanks.
Josh Spector: Yeah. Hi, good morning. I wanted to ask on free cash flow. Obviously, really strong performance last year. I mean, how are you thinking about the conversion into 2026? Is there something one-off last year that gives back, or is this something that you guys build on top of? Thanks.
Yeah. Hi, good morning. Um, I want to ask on free cash flow obviously really strong performance last year. I mean, how are you thinking about the conversion into 2026? Um, is there something 1 off last year that gives back? Or is this something that you guys build on top of thanks?
Chuck Magro: Yeah, thank you, Josh, for the question. And we obviously had a very strong end of the year with free cash flow. But some of that was, as Judd had mentioned, we did have favorable cash credit mix at the end of the year, so that was certainly a benefit, something that we don't count on every year. So that's probably one element year-over-year, which would be a little bit of a, a tailwind into 2025 and a, and a headwind into 2026.
Chuck Magro: Yeah, thank you, Josh, for the question. And we obviously had a very strong end of the year with free cash flow. But some of that was, as Judd had mentioned, we did have favorable cash credit mix at the end of the year, so that was certainly a benefit, something that we don't count on every year. So that's probably one element year-over-year, which would be a little bit of a, a tailwind into 2025 and a, and a headwind into 2026.
And David is Robert for crop protection. Very similar story. Um, very strong order books across the Northern Hemisphere, uh, Europe is in full swing and North America is moving. Uh, as we look into January, we, you know, we're having a strong strong, uh, movement now. Um, keep in mind both of these markets this last year, um, you know, grew a few
Intense and that momentum continues as we're as we're moving forward here. So thank you.
Operator: Your next question comes from the line of Josh Spector with UBS. Your line is open.
Operator: Your next question comes from the line of Josh Spector with UBS. Your line is open.
your next question comes from the line of
UBS your line is open.
[Analyst] (Vertical Research Partners): Yeah, hi, good morning. I wanted to ask on free cash flow. Obviously, really strong performance last year. I mean, how are you thinking about the conversion into 2026? Is there something one-off last year that gives back, or is this something that you guys build on top of? Thanks.
Kevin W. McCarthy: Yeah, hi, good morning. I wanted to ask on free cash flow. Obviously, really strong performance last year. I mean, how are you thinking about the conversion into 2026? Is there something one-off last year that gives back, or is this something that you guys build on top of? Thanks.
David Johnson: When you look at the major portion of why we were favorable is our working capital management. And where we ended this particular year was down probably 300 to 400 basis points lower than typical in our working capital as a percentage of sales. So I would say the teams did a really good job. That's also reflected in the fact that, you know, in seed, we had very strong sales and what have you, so our inventories are lower than typical. So I would say, going into 2026, absent any type of one-time items, and I'll go into those in a little bit more detail, we would be in the range that we articulated during our investor day. So free cash flow, about 45% to 50%. You might ask that the, you know, definitely a few points lower than 25.
David Johnson: When you look at the major portion of why we were favorable is our working capital management. And where we ended this particular year was down probably 300 to 400 basis points lower than typical in our working capital as a percentage of sales. So I would say the teams did a really good job. That's also reflected in the fact that, you know, in seed, we had very strong sales and what have you, so our inventories are lower than typical. So I would say, going into 2026, absent any type of one-time items, and I'll go into those in a little bit more detail, we would be in the range that we articulated during our investor day. So free cash flow, about 45% to 50%. You might ask that the, you know, definitely a few points lower than 25.
Chuck Magro: Yeah, thank you, Josh, for the question, and we obviously had a very strong end of the year with free cash flow. But some of that was, as Judd had mentioned, we did have favorable cash credit mix at the end of the year, so that was certainly a benefit. Something that we don't count on every year, so that's probably one element year over year, which would be a little bit of a tailwind into 25 and a headwind into 26. When you look at the major portion of why we were favorable is our working capital management. And where we ended this particular year was down probably 300 to 400 basis points lower than typical in our net working capital as a percentage of sales. So I would say the teams did a really good job.
Chuck Magro: Yeah, thank you, Josh, for the question, and we obviously had a very strong end of the year with free cash flow. But some of that was, as Judd had mentioned, we did have favorable cash credit mix at the end of the year, so that was certainly a benefit. Something that we don't count on every year, so that's probably one element year over year, which would be a little bit of a tailwind into 25 and a headwind into 26. When you look at the major portion of why we were favorable is our working capital management. And where we ended this particular year was down probably 300 to 400 basis points lower than typical in our net working capital as a percentage of sales. So I would say the teams did a really good job.
Yeah. Hi, good morning. Um, I wanted to ask on a free cash flow obviously, really strong performance last year. I mean, how are you thinking about the conversion into 2026, um, is, is there something 1 off last year that gives back? Or is this something that you guys build on top of thanks?
Yeah. Thank you. Josh for the question and we obviously had a very strong end of the year with free cash flow, but some of that was a judge had mentioned, we did have favorable cash credit mix at the end of the year. So that was certainly a benefit something that we don't count on every year. So, that's probably 1 element year-over-year, which would be a little bit of a, a Tailwind into 25 and and the head went into 26. When you look at the really, the The major portion of why we were favorable is our working Capital Management and where we ended this particular year was down probably 300 to 400 basis points lower than typical in our networking Capital as a percentage of sales. So I would say the teams did a really good job. That's also reflected in the fact that, you know, in seed we had very strong sales and what have you. So our inventories are are lower than typical. So I would say going into 26
Absent, any type of 1-time items and I'll go into those in a little bit more detail? We would be in the range that we articulated during our investor day. So free cash flow about 45 to 50%,
David Johnson: I would say most of that is because of working capital getting back to normal. So call it another 200 or 300 basis points as a percentage of sales. But this year, when we actually show the number, we will have a few unusual items. We will have the Bayer Agreement, which will be an offset to the free cash flow number. As we get later in the year, we will be looking at separation-type items, so we will be going into, you know, one-time separation costs. We'll likely also want some flexibility because we're committed to have two strong investment-grade balance sheets for the separated companies. So we want flexibility to make sure that we're handling that appropriately and that both companies are set up for success in the future.
David Johnson: I would say most of that is because of working capital getting back to normal. So call it another 200 or 300 basis points as a percentage of sales. But this year, when we actually show the number, we will have a few unusual items. We will have the Bayer Agreement, which will be an offset to the free cash flow number. As we get later in the year, we will be looking at separation-type items, so we will be going into, you know, one-time separation costs. We'll likely also want some flexibility because we're committed to have two strong investment-grade balance sheets for the separated companies. So we want flexibility to make sure that we're handling that appropriately and that both companies are set up for success in the future.
Chuck Magro: That's also reflected in the fact that, you know, in Seed, we had very strong sales and what have you, so our inventories are lower than typical. So I would say, going into 2026, absent any type of one-time items, and I'll go into those in a little bit more detail, we would be in the range that we articulated during our investor day. So free cash flow, about 45 to 50%.
Chuck Magro: That's also reflected in the fact that, you know, in Seed, we had very strong sales and what have you, so our inventories are lower than typical. So I would say, going into 2026, absent any type of one-time items, and I'll go into those in a little bit more detail, we would be in the range that we articulated during our investor day. So free cash flow, about 45 to 50%.
That was certainly a benefit. Something that we don't count on every year. So, that's probably 1 element year-over-year, which would be a little bit of a, a Tailwind into 25 and and a head went into 26. When you look at the really, the The major portion of why we were favorable is our working Capital Management and where we ended this particular year was down probably 300 to 400 basis points lower than typical in our networking Capital as a percentage of sales. So I would say the teams did a really good job. That's also reflected in the fact that, you know, in seed we had very strong sales and what have you. So our inventories are are lower than typical. So I would say going into 26
David Johnson: ... You might ask that the, you know, definitely a few points lower than 25. I would say most of that is because of working capital getting back to normal. So call it another 200 or 300 basis points as a percentage of sales. But this year, when we actually show the number, we will have a few unusual items. We will have the Bayer agreement, which will be an offset to the free cash flow number. As we get later in the year, we will be looking at separation-type items, so we will be going into, you know, one-time separation costs. We'll likely also want some flexibility because we're committed to have two strong investment-grade balance sheets for the separated companies. We want flexibility to make sure that we're handling that appropriately and that both companies are set up for success in the future.
David Johnson: ... You might ask that the, you know, definitely a few points lower than 25. I would say most of that is because of working capital getting back to normal. So call it another 200 or 300 basis points as a percentage of sales. But this year, when we actually show the number, we will have a few unusual items. We will have the Bayer agreement, which will be an offset to the free cash flow number. As we get later in the year, we will be looking at separation-type items, so we will be going into, you know, one-time separation costs. We'll likely also want some flexibility because we're committed to have two strong investment-grade balance sheets for the separated companies. We want flexibility to make sure that we're handling that appropriately and that both companies are set up for success in the future.
Absent any type of one-time items—and I'll go into those in a little bit more detail—we would be in the range that we articulated during our Investor Day. So, free cash flow would be about 45% to 50%.
And you might ask if the you know definitely a few points lower than 25. I would say most of that is because of working capital gain back to normal. So call it another 2 or 300 basis points as a percentage of sales. But this year when we actually show the number we will have a few unusual items we will have the bear agreement which will be an offset to the free cash flow number. As we get later in the year we will be looking at separation type items. So we will be going into, you know, 1 time, separation costs. And we'll likely also want some flexibility because we're committed to have 2, strong investment grade balance sheets for the separated companies. So we want flexibility to make sure that we're handling that appropriately and that both companies are set up for success in the future.
Your next question.
Operator: Your next question comes from the line of Jeff Zekauskas with JP Morgan. Your line is open.
Operator: Your next question comes from the line of Jeff Zekauskas with JP Morgan. Your line is open.
Of the line. That's just zakowska with JP Morgan. Your line is open.
Vincent Andrews: Thanks very much. A two-part question. First, your SG&A, your overall revenues in the fourth quarter were roughly flat year-over-year, down a tiny bit, but your SG&A and R&D really jumped. SG&A went from, you know, $735 million to $860 million, up about $125 million. R&D was up $50 million. What happened? Why are those numbers so unusually high? And then secondly, can you give us an idea of where you stand with Conkesta soybeans in Brazil? You know, where is your share or what are your revenues? What share do you expect for next year? What kind of revenues do you expect?
Uh, thanks very much. Uh, a 2-part question. Um,
Jeffrey Zekauskas: Thanks very much. A two-part question. First, your SG&A, your overall revenues in the fourth quarter were roughly flat year-over-year, down a tiny bit, but your SG&A and R&D really jumped. SG&A went from, you know, $735 million to $860 million, up about $125 million. R&D was up $50 million. What happened? Why are those numbers so unusually high? And then secondly, can you give us an idea of where you stand with Conkesta soybeans in Brazil? You know, where is your share or what are your revenues? What share do you expect for next year? What kind of revenues do you expect?
First your sgn, your overall revenues in the fourth quarter were roughly flat year-over-year depth down a tiny bit, but your sgna and R&D really jumped.
And you might ask us if you know, definitely a few points lower than 25. I would say most of that is because of working capital getting back to normal. So, call it another 200 or 300 basis points as a percentage of sales. But this year, when we actually show the number, we will have a few unusual items. We will have the Bayer agreement, which will be an offset to the free cash flow number. As we get later in the year, we will be looking at separation-type items, so we will be going into, you know, one-time separation costs, and we'll likely also want some flexibility because we're
Tiene went from, you know, 735 to 860 up about 125 million R&D was up 50. What, what happened? Why are those numbers so unusually high?
Committed to have 2, strong investment grade balance sheets for the separated companies. So we want flexibility to make sure that we're handling that appropriately, and that both companies are set up for success in the future.
Operator: Your next question comes from the line of Jeff Zekauskas with J.P. Morgan. Your line is open.
Operator: Your next question comes from the line of Jeff Zekauskas with J.P. Morgan. Your line is open.
Um, and then, secondly, C. Can you give us an idea of where you stand with contesta soybeans in Brazil?
[Analyst] (J.P. Morgan): Thanks very much. A two-part question. First, your SG&A and R&D really jumped. SG&A went from, you know, $735 million to $860 million, up about $125 million. R&D was up $50 million. What happened? Why are those numbers so unusually high? And then secondly, can you give us an idea of where you stand with Conkesta soybeans in Brazil? You know, where is your share or what are your revenues? What share do you expect for next year? What kind of revenues do you expect?
Operator: Thanks very much. A two-part question. First, your SG&A and R&D really jumped. SG&A went from, you know, $735 million to $860 million, up about $125 million. R&D was up $50 million. What happened? Why are those numbers so unusually high? And then secondly, can you give us an idea of where you stand with Conkesta soybeans in Brazil? You know, where is your share or what are your revenues? What share do you expect for next year? What kind of revenues do you expect?
Your next question comes from the line of just zakowska with JP Morgan. Your line is open.
Uh, thanks very much. Uh, a two-part question. Um,
You know, where is your share or what are your revenues? What share do you expect for next year? What kind of revenues do you expect?
David Johnson: Okay. Yes, Jeff, I would handle the first part of the question, and I'm assuming Judd will handle the second part of the question. So on SG&A, R&D, as you can see throughout the year, we have increased our R&D as a percentage of sales, you know, in total, we're up about 8%, and certainly that's not really much timing on sales or fourth quarter. So you've seen that build throughout the year. On SG&A, as we mentioned in the opening comments, we do have some additional compensation expense, variable compensation expense, those sort of items that hit in Q4, also hit in other quarters, but it was probably a little bit more impactful in Q4, especially against the small revenue number. Now, Judd?
David Johnson: Okay. Yes, Jeff, I would handle the first part of the question, and I'm assuming Judd will handle the second part of the question. So on SG&A, R&D, as you can see throughout the year, we have increased our R&D as a percentage of sales, you know, in total, we're up about 8%, and certainly that's not really much timing on sales or fourth quarter. So you've seen that build throughout the year. On SG&A, as we mentioned in the opening comments, we do have some additional compensation expense, variable compensation expense, those sort of items that hit in Q4, also hit in other quarters, but it was probably a little bit more impactful in Q4, especially against the small revenue number. Now, Judd?
First, your SG&A, your overall revenue is in the fourth quarter, or roughly flat year-over-year. It dipped down a tiny bit, but your SG&A and R&D really jumped.
today R&D, as you can see, throughout the year, we have increased our R&D, um,
Tiene went from, you know, $735 million to $860 million, up about $125 million. R&D was up $50 million. What happened? Why are those numbers so unusually high?
Um, and then, secondly, C. Can you give us an idea of where you stand with Concessa soybeans in Brazil? Um, you know, where is your share or what are your revenues, what share do you expect for next year? What kind of revenues do you expect?
David Johnson: Okay. Yes, Jeff, I'll handle the first part of the question, and I'm assuming Judd will handle the second part of the question. So on SG&A, R&D, as you can see throughout the year, we have increased our R&D as a percentage of sales, you know, in total, we're up about 8%, and certainly that's not really much timing on sales or fourth quarter. So you've seen that build throughout the year. On SG&A, as we mentioned in the opening comments, we do have some additional compensation expense, variable compensation expense, those sort of items that hit in Q4, also hit in other quarters, but it was probably a little bit more impactful in Q4, especially against the small revenue number. That Judd?
David Johnson: Okay. Yes, Jeff, I'll handle the first part of the question, and I'm assuming Judd will handle the second part of the question. So on SG&A, R&D, as you can see throughout the year, we have increased our R&D as a percentage of sales, you know, in total, we're up about 8%, and certainly that's not really much timing on sales or fourth quarter. So you've seen that build throughout the year. On SG&A, as we mentioned in the opening comments, we do have some additional compensation expense, variable compensation expense, those sort of items that hit in Q4, also hit in other quarters, but it was probably a little bit more impactful in Q4, especially against the small revenue number. That Judd?
As a percentage of sales, you know, in total, we're up about 8% and certainly that's not really much timing on sales or fourth quarter. So you've seen that build throughout the year on sgna. As we mentioned in, in the opening comments, we do have some additional compensation expense variable compensation expenses. So if items that hit in Q4, also hit another quarter's bit, was probably a little bit more impactful in Q4 especially against the small Revenue number.
Judd O'Connor: Yeah, and Jeff, as far as E3, Conkesta E3 in Latin America, and particularly in Brazil, you know, we're gonna finish the year after just getting started in this space and going through our multipliers and licensing model, somewhere in mid-single digits in 2025. We expect to double or more than double that going into 2026. We will be completely, completely out of our vertically branded business and be 100% focused on licensing through multipliers, and we believe we're gonna be in the mid-teens plus for 2026. So a lot of momentum. We've advanced a number of new genetic platforms and feel really good about how that transition is going.
Judd O'Connor: Yeah, and Jeff, as far as E3, Conkesta E3 in Latin America, and particularly in Brazil, you know, we're gonna finish the year after just getting started in this space and going through our multipliers and licensing model, somewhere in mid-single digits in 2025. We expect to double or more than double that going into 2026. We will be completely, completely out of our vertically branded business and be 100% focused on licensing through multipliers, and we believe we're gonna be in the mid-teens plus for 2026. So a lot of momentum. We've advanced a number of new genetic platforms and feel really good about how that transition is going.
Okay, yes. So I'll handle the, the first part of the question and I'm assuming judge will handle the second part of the question. So on Senate R&D, as you can see, throughout the year, we have increased our R&D, um,
As a percentage of sales, you know, in total we're up about 8%. And certainly, that's not really much timing on sales or fourth quarter. So you've seen that build throughout the year on SG&A. As we mentioned in the opening comments, we do have some additional compensation expense—variable compensation expenses—sort of items that hit in Q4, also hit in other quarters, but it was probably a little bit more impactful in Q4, especially against the small revenue number.
Judd O'Connor: Yeah, Jeff, as far as Enlist E3, Conkesta E3 in Latin America, and particularly in Brazil, you know, we're gonna finish the year after just getting started in this space and going through our multipliers and licensing model, somewhere in mid-single digits in 2025. We expect to double or more than double that going into 2026. We will be completely out of our vertically branded business and be 100% focused on licensing through multipliers, and we believe we're gonna be in the mid-teens plus for 2026. So a lot of momentum. We've advanced a number of new genetic platforms and feel really good about how that transition is going.
Judd O'Connor: Yeah, Jeff, as far as Enlist E3, Conkesta E3 in Latin America, and particularly in Brazil, you know, we're gonna finish the year after just getting started in this space and going through our multipliers and licensing model, somewhere in mid-single digits in 2025. We expect to double or more than double that going into 2026. We will be completely out of our vertically branded business and be 100% focused on licensing through multipliers, and we believe we're gonna be in the mid-teens plus for 2026. So a lot of momentum. We've advanced a number of new genetic platforms and feel really good about how that transition is going.
That judge. Yeah. And Jeff as far as um E3 concisa C3 and and uh Latin America and particularly in Brazil. Um, you know, we're going to finish the year after just getting started in this space and going through our multipliers and Licensing model. Um, somewhere in mid single digits in 2025, we expect to double or more than double that going into 2026. Um, we will be completely completely out of our, our vertically branded business and be 100% focused on licensing through multipliers. And we believe we're going to be in the mid teens plus um for 2026. So a lot of momentum we've Advanced a number of new genetic platforms and and feel a really good about how that transition is going.
Operator: Your next question comes from the line of Aleksey Yefremov with KeyBanc Capital Markets. Your line is open.
Operator: Your next question comes from the line of Aleksey Yefremov with KeyBanc Capital Markets. Your line is open.
Your next question comes from the line of Alexey if remove with Key Bank, Capital markets, your line is open.
Aleksey Yefremov: Thank you. Good morning, everyone. Can you discuss in your CP business what share of your business will be off patent versus patent and new products in 2026, given that there is quite a bit of difference between growth in these two categories?
Aleksey Yefremov: Thank you. Good morning, everyone. Can you discuss in your CP business what share of your business will be off patent versus patent and new products in 2026, given that there is quite a bit of difference between growth in these two categories?
Uh, thank you. Good morning everyone. Uh, could you just call in your CP business? Uh, what, what share of your of your business will be off patent versus patent and, and, and new products in 26. Given that there is quite a bit of difference between growth in these 2 categories.
I like to this Robert.
Robert King: Aleksey, this is Robert. We will remain about flat to with what we've been in the past. Keep in mind, you know, we're about two-thirds differentiated on our overall portfolio now, getting good, good growth out of our new products, and biologicals. But we don't have any major shifts coming off patent. Like in the industry, there are some big molecules coming off, but we don't play in those markets. So we should be stable, much like you've seen this past year from a portfolio standpoint. I would keep in mind that there's a, you know, a few things coming to play, though, that'll gonna help us out a little bit more, and, you know, we're waiting on registration, but we hope to have a Adavelt launch latter part of this year, which will augment that, that differentiated portfolio.
Robert King: Aleksey, this is Robert. We will remain about flat to with what we've been in the past. Keep in mind, you know, we're about two-thirds differentiated on our overall portfolio now, getting good, good growth out of our new products, and biologicals. But we don't have any major shifts coming off patent. Like in the industry, there are some big molecules coming off, but we don't play in those markets. So we should be stable, much like you've seen this past year from a portfolio standpoint. I would keep in mind that there's a, you know, a few things coming to play, though, that'll gonna help us out a little bit more, and, you know, we're waiting on registration, but we hope to have a Adavelt launch latter part of this year, which will augment that, that differentiated portfolio.
That jug. Yeah. And Jeff as far as um E3 concisa C3 and and uh Latin America and particularly in Brazil. Um, you know, we're going to finish the year after just getting started in this space and going through our multipliers and Licensing model. Um, somewhere in mid single digits in 2025, we expect to double or more than double that going into 2026. Um, we will be completely completely out of our, our vertically branded business and be 100% focused on licensing through multipliers. And we believe we're going to be in the mid teens plus um, for 2026. So a lot of momentum, we've Advanced another
Number new genetic platforms and and fill a really good about how that transition is going.
Operator: Your next question comes from the line of Aleksey Yefremov with KeyBank Capital Markets. Your line is open.
Operator: Your next question comes from the line of Aleksey Yefremov with KeyBank Capital Markets. Your line is open.
We will remain about flat to with what we've been in the past. Uh, keep in mind, you know, we're about 2/3, differentiated on our overall portfolio. Now, um, getting good. Good growth out of our new products, uh in Biologicals.
Your next question comes from the line of David Johnson.
[Analyst] (KeyBank Capital Markets): Thank you. Good morning, everyone. Could you discuss in your CP business what share of your business will be off patent versus patent and new products in 2026, given that there is quite a bit of difference between growth in these two categories?
Markets, your line is open.
Aleksey Yefremov: Thank you. Good morning, everyone. Could you discuss in your CP business what share of your business will be off patent versus patent and new products in 2026, given that there is quite a bit of difference between growth in these two categories?
Uh, thank you. Good morning everyone. Uh, could you just call in your CPU business? Uh, what, what share of your of your business will be off patent versus patent and, and, and new products in 26. Given that there is quite a bit of difference between growth in these 2 categories.
Robert King: Aleksey, this is Robert. We will remain about flat to what we've been in the past. Keep in mind, you know, we're about two-thirds differentiated on our overall portfolio now, getting good, good growth out of our new products, and biologicals. But we don't have any major shifts coming off patent. Like in the industry, there are some big molecules coming off, but we don't play in those markets. So we should be stable, much like you've seen this past year from a portfolio standpoint. I would keep in mind that there's, you know, a few things coming to play, though, that are gonna help us out a little bit more, and, you know, we're waiting on registration, but we hope to have an Enlist launch later part of this year, which will augment that differentiated portfolio.
Robert King: Aleksey, this is Robert. We will remain about flat to what we've been in the past. Keep in mind, you know, we're about two-thirds differentiated on our overall portfolio now, getting good, good growth out of our new products, and biologicals. But we don't have any major shifts coming off patent. Like in the industry, there are some big molecules coming off, but we don't play in those markets. So we should be stable, much like you've seen this past year from a portfolio standpoint. I would keep in mind that there's, you know, a few things coming to play, though, that are gonna help us out a little bit more, and, you know, we're waiting on registration, but we hope to have an Enlist launch later part of this year, which will augment that differentiated portfolio.
I like to just Robert.
Robert King: And, remember, this is a fungicide that attacks Asian soybean rust, and we're expecting big things out of that molecule as we move forward. Thank you for the question.
Robert King: And, remember, this is a fungicide that attacks Asian soybean rust, and we're expecting big things out of that molecule as we move forward. Thank you for the question.
Um, but we don't have any major shifts coming off patent. Um, like in the industry, there are some big molecules coming off, but we don't play in those markets. So we should be stable, uh, much like you've seen this past year from a portfolio standpoint. I would keep in mind that there's a, you know, a few things coming to play though that are going to help us out a little bit more and you know, we're waiting on registration but we hope to have a, a Visa launched later, part of this year, which will augment that that differentiated portfolio. And uh remember this is a a fungicide that attacks Asian soybean rust. And we're expecting big things out of that molecule as we move forward. Thank you for the question.
Will remain about flat to with what we've been in the past. Uh, keep in mind, you know, we're about 2/3, differentiated on our overall portfolio. Now, um, getting good. Good growth out of our new products, uh, in Biologicals.
Operator: Your next question comes from the line of Duffy Fischer with Goldman Sachs. Your line is open.
Operator: Your next question comes from the line of Duffy Fischer with Goldman Sachs. Your line is open.
Your next question comes from the line is Duffy Fischer with Goldman Sachs. Your line is open.
Duffy Fischer: Yeah, good morning, guys. With 25 in the rearview mirror, can you just go by your major crops on seed in major geographies where you saw either market share gains or if there were any market share losses? And then just I wanted to clarify, on the deal with Bayer, they don't get access to your Enlist in soybeans. Is that correct?
Duffy Fischer: Yeah, good morning, guys. With 25 in the rearview mirror, can you just go by your major crops on seed in major geographies where you saw either market share gains or if there were any market share losses? And then just I wanted to clarify, on the deal with Bayer, they don't get access to your Enlist in soybeans. Is that correct?
Yeah, good morning guys with 25 in the rearview mirror. Can you just go by your major crops on seed in major geographies, where you saw either market, share gains, or if there were any market share losses and then just I want to clarify on the deal with their uh, they don't get access to your enlist in soybeans. Is that correct?
Robert King: And, remember, this is a fungicide that attacks Asian soybean rust, and we're expecting big things out of that molecule as we move forward. Thank you for the question.
Robert King: And, remember, this is a fungicide that attacks Asian soybean rust, and we're expecting big things out of that molecule as we move forward. Thank you for the question.
Judd O'Connor: ... Yeah, thank you, Duffy. So maybe just walk around the world a bit. From a North America perspective, we were able to continue to pick up share in corn and in soy. As we go into Latin America, we picked up mid-single digit share in summer. We picked up mid-single digit share plus in Safrinha, tremendous amount of momentum and share in that Brazilian market as well. And as you look at other markets around the world, we had some nice recovery in India in the rainy corn season market, and we saw some nice share gains in sunflower and corn in EMEA. So we had positive impacts in almost all regions around the world.
Judd O'Connor: ... Yeah, thank you, Duffy. So maybe just walk around the world a bit. From a North America perspective, we were able to continue to pick up share in corn and in soy. As we go into Latin America, we picked up mid-single digit share in summer. We picked up mid-single digit share plus in Safrinha, tremendous amount of momentum and share in that Brazilian market as well. And as you look at other markets around the world, we had some nice recovery in India in the rainy corn season market, and we saw some nice share gains in sunflower and corn in EMEA. So we had positive impacts in almost all regions around the world.
Yeah, I think you Duffy so maybe just walk around the world a bit. Um, from a North American perspective, we were able to continue to pick up, share in corn and in soy.
Um, but we don't have any major shifts coming off patent. Um, like in the industry, there are some big molecules coming off, but we don't play in those markets. So we should be stable, uh, much like you've seen this past year from a portfolio standpoint. I would keep in mind that there is a, you know, a few things coming into play though that are going to help us out a little bit more. And, you know, we're waiting on registration, but we hope to have a Visa launched later part of this year, which will augment that differentiated portfolio. And, uh, remember this is a fungicide that attacks Asian soybean rust. And we're expecting big things out of that molecule as we move forward. Thank you for the question.
Operator: Your next question comes from the line of Duffy Fischer with Goldman Sachs. Your line is open.
Operator: Your next question comes from the line of Duffy Fischer with Goldman Sachs. Your line is open.
[Analyst] (Goldman Sachs): Yeah, good morning, guys. With 25 in the rearview mirror, can you just go by your major crops on seed in major geographies where you saw either market share gains or if there were any market share losses? And then just I wanted to clarify, on the deal with Bayer, they don't get access to your Enlist in soybeans. Is that correct?
Duffy Fischer: Yeah, good morning, guys. With 25 in the rearview mirror, can you just go by your major crops on seed in major geographies where you saw either market share gains or if there were any market share losses? And then just I wanted to clarify, on the deal with Bayer, they don't get access to your Enlist in soybeans. Is that correct?
Your next question comes from the line of Dossi Fisher with Goldman Sachs. Your line is open.
Yeah, good morning guys with 25 in the rearview mirror, can you just go buy your major crops on seed in major geographies where you saw either a market share gains or if there were any market share losses and then just I want to clarify on the deal with their uh, they don't get access to your enlist in soybeans. Is that correct?
Judd O'Connor: Yeah, thank you, Duffy. So maybe just walk around the world a bit. You know, from a North America perspective, we were able to continue to pick up share in corn and in soy. As we go into Latin America, we picked up mid-single-digit share in summer. We picked up mid-single-digit share plus in Safrinha, tremendous amount of momentum and share in that Brazilian market as well. And as you look at other markets around the world, we had some nice recovery in India in the rainy corn season market, and we saw some nice share gains in sunflower and corn in EMEA. We had positive impacts in almost all regions around the world.
Judd O'Connor: Yeah, thank you, Duffy. So maybe just walk around the world a bit. You know, from a North America perspective, we were able to continue to pick up share in corn and in soy. As we go into Latin America, we picked up mid-single-digit share in summer. We picked up mid-single-digit share plus in Safrinha, tremendous amount of momentum and share in that Brazilian market as well. And as you look at other markets around the world, we had some nice recovery in India in the rainy corn season market, and we saw some nice share gains in sunflower and corn in EMEA. We had positive impacts in almost all regions around the world.
Judd O'Connor: Now, in terms of the Bayer agreement, E3 on soy was not part of those discussions at this point in time. Obviously, we have a number of places that we worked with VeraCross, but that was not a part of it. So thanks for that question.
Judd O'Connor: Now, in terms of the Bayer agreement, E3 on soy was not part of those discussions at this point in time. Obviously, we have a number of places that we worked with VeraCross, but that was not a part of it. So thanks for that question.
Yeah, thank you, Duffy. So maybe just walk around the world a bit. Um, from a North American perspective, we were able to continue to pick up share in corn and in soy.
Um, as as we go into Latin America, we picked up mid single digit. Share in summer, we picked up mid, single digit, share, Plus in supria, tremendous amount of momentum and share, um, in that Brazilian Market as well. And as you look at other markets around the world, we had some nice recovery in India, um, and the Rainy corn Season Market and we saw some nice share gains in sunflower and corn. Um, in Amia. So we we had um, positive impacts and and almost all regions around the world. Now, in terms of, um, the bare agreement E3 on soy, was not part of those discussions at this.
Point um, in time obviously uh um we have a we have a number of places that we work with veracross but that was another part of it. So thanks for that question.
Operator: Your next question comes from the line of Kristen Owen with Oppenheimer. Your line is open.
Operator: Your next question comes from the line of Kristen Owen with Oppenheimer. Your line is open.
Your next question comes from the line of Kristen Nolan with oppenheim, your line is open.
Hi, good morning, thank you for the question.
Kristen Owen: Hi, good morning. Thank you for the question. I wanted to ask about the 2026 EBITDA guide. You know, you're in line with the $4.1 billion that you gave us earlier last year, but it seems like maybe some moving pieces around with the pull forward of net royalties, maybe the push in volume from Q4 into Q1. So can you help us sort of frame what the upside case and downside case look like in this bridge? And I do actually have a follow-up on Brazil Conkesta, if I could ask quickly, just what the economics, how we should see that show up, that doubling in market share, how we see that show up in the EBITDA bridge as well? Thank you.
Kristen Owen: Hi, good morning. Thank you for the question. I wanted to ask about the 2026 EBITDA guide. You know, you're in line with the $4.1 billion that you gave us earlier last year, but it seems like maybe some moving pieces around with the pull forward of net royalties, maybe the push in volume from Q4 into Q1. So can you help us sort of frame what the upside case and downside case look like in this bridge? And I do actually have a follow-up on Brazil Conkesta, if I could ask quickly, just what the economics, how we should see that show up, that doubling in market share, how we see that show up in the EBITDA bridge as well? Thank you.
Judd O'Connor: Now, in terms of the Bayer agreement, E3 on soy was not part of those discussions at this point in time. Obviously, we have a number of places that we worked with Bayer, but that was not a part of it. So thanks for that question.
Judd O'Connor: Now, in terms of the Bayer agreement, E3 on soy was not part of those discussions at this point in time. Obviously, we have a number of places that we worked with Bayer, but that was not a part of it. So thanks for that question.
Operator: Your next question comes from the line of Kristen Owen with Oppenheimer. Your line is open.
Operator: Your next question comes from the line of Kristen Owen with Oppenheimer. Your line is open.
Um, as as we go into Latin America, we picked up mid single digit. Share in summer, we picked up mid, single digit, share Plus in supremia, tremendous amount of momentum and share, um, in that Brazilian Market as well. And as you look at other markets around the world, we had some nice recovery in India, um, in the Rainy corn Season Market. And we saw some nice share gains in sunflower and corn. Um, in Amia. So we we had um, positive impacts and and almost all regions around the world. Now, in terms of, um, the bare agreement E3 on soy, was not part of those discussions at this point. Um, in time obviously, uh, um, we have a, we have a number of places that we work with veracross but that was another part of it. So thanks for that question.
Around with the um the pull forward of net royalties, maybe the push in volume from 4 q into 1 Q. So can you help us sort of frame? What the upside case and downside case look like in this bridge and um I I do actually have a follow-up on on Brazil contesta if I could ask quickly, just what the the economics, how we should see that. Show up. That that doubling in market share how we see that show up in the Eva Bridge as well. Thank you.
[Analyst] (Oppenheimer): Hi, good morning. Thank you for the question. I wanted to ask about the 2026 EBITDA guide. You know, you're in line with the $4.1 billion that you gave us earlier last year, but it seems like maybe some moving pieces around with the pull forward of net royalties, maybe the push in volume from Q4 into Q1. So can you help us sort of frame what the upside case and downside case look like in this bridge? And I do actually have a follow-up on Brazil Conkesta, if I could ask quickly, just what the economics, how we should see that show up, that doubling in market share, how we see that show up in the EBITDA bridge as well? Thank you.
Kristen Owen: Hi, good morning. Thank you for the question. I wanted to ask about the 2026 EBITDA guide. You know, you're in line with the $4.1 billion that you gave us earlier last year, but it seems like maybe some moving pieces around with the pull forward of net royalties, maybe the push in volume from Q4 into Q1. So can you help us sort of frame what the upside case and downside case look like in this bridge? And I do actually have a follow-up on Brazil Conkesta, if I could ask quickly, just what the economics, how we should see that show up, that doubling in market share, how we see that show up in the EBITDA bridge as well? Thank you.
Your next question comes from the line of Kristen Nolan with oppenheim, your line is open.
Chuck Magro: Okay, Kristen. So, we'll have Judd answer that. David will take the guide question. But let me just give you my perspective and I guess my philosophy. We're sitting here in February. It's appropriate, I think, given that outside and in the Corn Belt, we have a lot of snow, the ground is still frozen, and we are literally weeks, if not a bit more than that, away from putting a crop in the ground. So we are usually, at this point, looking at the market conditions and needing to see what happens from a crop perspective. But it is generally our philosophy not to do too much with a guide in February. Now, we can talk about the ups and downs, so go ahead, David.
Chuck Magro: Okay, Kristen. So, we'll have Judd answer that. David will take the guide question. But let me just give you my perspective and I guess my philosophy. We're sitting here in February. It's appropriate, I think, given that outside and in the Corn Belt, we have a lot of snow, the ground is still frozen, and we are literally weeks, if not a bit more than that, away from putting a crop in the ground. So we are usually, at this point, looking at the market conditions and needing to see what happens from a crop perspective. But it is generally our philosophy not to do too much with a guide in February. Now, we can talk about the ups and downs, so go ahead, David.
Okay, Kristen so we'll have Jude answer that. David will take the guy question, but let me just give you my perspective. And I, guess my philosophy, we're sitting here in February
Um, it's uh, appropriate. I think given that outside, and in the Corn Belt, we have a lot of snow. Tha ground is still frozen and we are literally weeks, uh, if not a bit more than that away from putting a crop in the ground.
Judd O'Connor: Okay, Kristen. So, we'll have Judd answer that. David will take the guide question. But let me just give you my perspective and I guess my philosophy. We're sitting here in February. It's appropriate, I think, given that outside and in the Corn Belt, we have a lot of snow, the ground is still frozen, and we are literally weeks, if not a bit more than that, away from putting a crop in the ground. So we are usually, at this point, looking at the market conditions and needing to see what happens from a crop perspective. But it is generally our philosophy not to do too much with a guide in February. Now, we can talk about the ups and downs, so go ahead, David.
Judd O'Connor: Okay, Kristen. So, we'll have Judd answer that. David will take the guide question. But let me just give you my perspective and I guess my philosophy. We're sitting here in February. It's appropriate, I think, given that outside and in the Corn Belt, we have a lot of snow, the ground is still frozen, and we are literally weeks, if not a bit more than that, away from putting a crop in the ground. So we are usually, at this point, looking at the market conditions and needing to see what happens from a crop perspective. But it is generally our philosophy not to do too much with a guide in February. Now, we can talk about the ups and downs, so go ahead, David.
Hi, good morning. Thank you for the question. Um, I wanted to ask about the 2026 EBA guide. Um, you know you you you're in line with the 4.1 billion that you gave us earlier last year, but it seems like maybe some moving pieces around with the um, the pull forward of net royalties. Maybe the push in volume from 4 q into 1 Q. So can you help us sort of frame? What the upside case? And downside case look like in this bridge? And um I I do actually have a follow-up on on Brazil concussive. If I could ask quickly, just what the the economics, how we should see that? Show up. That that doubling in market, share how we see that show up in the EBA Bridge as well. Thank you.
David Johnson: Yeah, maybe it'd be helpful to just kind of reiterate what we have in the guide, and then we can go from there. So when we look at the $4.1 billion, it is up 7% from the midpoint. The other interesting thing is that is the beginning or the low end of our 2027 range, which would be a year early. So I think all very positive. I think the other couple of takeaways, one, we are gonna show growth in both seed and CP, very much like we were able to do in 2025. And 2/3 of the EBITDA increase year-over-year will accrue to the seed business and about 1/3 to CP. Again, very similar to what we've seen.
David Johnson: Yeah, maybe it'd be helpful to just kind of reiterate what we have in the guide, and then we can go from there. So when we look at the $4.1 billion, it is up 7% from the midpoint. The other interesting thing is that is the beginning or the low end of our 2027 range, which would be a year early. So I think all very positive. I think the other couple of takeaways, one, we are gonna show growth in both seed and CP, very much like we were able to do in 2025. And 2/3 of the EBITDA increase year-over-year will accrue to the seed business and about 1/3 to CP. Again, very similar to what we've seen.
Okay, Kristen, so we'll have Jude answer that. David will take the guy question, but let me just give you my perspective—and I guess my philosophy. We're sitting here in February.
So we are usually at this point um looking at the market conditions and and needing to see what happens from a a crop perspective. But it is generally our philosophy not to do too much with a guide in February. Now we we can talk about the ups and downs. So, go ahead David. Yeah, maybe it'd be helpful to just kind of reiterate what we have in the guide and then we can go from there. So, when we look at the 4.1 billion, it is up 7% from the midpoint. The other interesting thing is that is the beginning or the low end of our 2027 range, which would be a year early. So I think all very positive
Um, it's, uh, appropriate. I think given that outside, and in the Corn Belt, we have a lot of snow. The ground is still frozen and we are literally weeks, uh, if not a bit more than that, away from putting a crop in the ground.
David Johnson: Yeah, maybe it'd be helpful to just kind of reiterate what we have in the guide, and then we can go from there. So when we look at the $4.1 billion, it is up 7% from the midpoint. The other interesting thing is that is the beginning or the low end of our 2027 range, which would be a year early. So I think all very positive. I think the other couple of takeaways, one, we are gonna show growth in both seed and CP, very much like we were able to do in 2025. And 2/3 of the EBITDA increase year over year will accrue to the seed business and about 1/3 to CP. Again, very similar to what we've seen.
David Johnson: Yeah, maybe it'd be helpful to just kind of reiterate what we have in the guide, and then we can go from there. So when we look at the $4.1 billion, it is up 7% from the midpoint. The other interesting thing is that is the beginning or the low end of our 2027 range, which would be a year early. So I think all very positive. I think the other couple of takeaways, one, we are gonna show growth in both seed and CP, very much like we were able to do in 2025. And 2/3 of the EBITDA increase year over year will accrue to the seed business and about 1/3 to CP. Again, very similar to what we've seen.
I think the other couple takeaways 1, we were going to show growth in both seed and CP very much like we were able to do in 2025 and 2/3 of the ibida increase year-over-year. Well acred to the seed business in about a third of CP again, very similar to what we've seen. So when I think about the, the bridge and the different elements of the bridge,
David Johnson: So when I think about the, the bridge and the different elements of the bridge, right now, we have the price impact will be more or less similar to 2025, so low single-digit seed increases. We have increased royalty income. That will be partially offset by the low single-digit CP declines. So not much of a, a major difference from 2025. We already talked a little bit about net royalties, so that will be a positive. We expect somewhere in the range of $120 million versus the $90 million in 2025. The volume impact in 2026, right now, we have it in as fairly flat for seed. Again, that's mainly due to the amount of the, the acreage differences between corn and soy in the US, that shift.
David Johnson: So when I think about the, the bridge and the different elements of the bridge, right now, we have the price impact will be more or less similar to 2025, so low single-digit seed increases. We have increased royalty income. That will be partially offset by the low single-digit CP declines. So not much of a, a major difference from 2025. We already talked a little bit about net royalties, so that will be a positive. We expect somewhere in the range of $120 million versus the $90 million in 2025. The volume impact in 2026, right now, we have it in as fairly flat for seed. Again, that's mainly due to the amount of the, the acreage differences between corn and soy in the US, that shift.
Right now, we had the price impact would be more or less similar to 2025 so low single digit seed increases.
So we are usually at this point um, looking at the market conditions and needing to see what happens from a crop perspective, but it is generally our philosophy not to do too much with a guide in February. Now we we can talk about the ups and downs. So, go ahead David. Yeah, maybe it'd be helpful to just kind of reiterate what we have in the guide and then we can go from there. So, when we look at the 4.1 billion, it is up 7% from the midpoint. The other interesting thing is that is the beginning or the low end of our 2027 range, which would be a year early. So I think all very positive
We have increased royalty income, that will be partially offset by the low single digit CP declines. So not much of a, a major difference from 2025. We already talked a little bit about net royalties, so that will be a positive. We expect somewhere in the range of 120 million dollars versus the 90 million in 2025.
David Johnson: So when I think about the bridge and the different elements of the bridge, right now, we have the price impact will be more or less similar to 2025, so low single-digit seed increases. We have increased royalty income. That will be partially offset by the low single-digit CP decline. So not much of a major difference from 2025. We already talked a little bit about net royalties, so that will be a positive we expect somewhere in the range of $120 million versus the $90 million in 2025. The volume impact in 2026, right now, we have it in as fairly flat for seed. Again, that's mainly due to the amounts of the acreage differences between corn and soy in the US, that shift.
David Johnson: So when I think about the bridge and the different elements of the bridge, right now, we have the price impact will be more or less similar to 2025, so low single-digit seed increases. We have increased royalty income. That will be partially offset by the low single-digit CP decline. So not much of a major difference from 2025. We already talked a little bit about net royalties, so that will be a positive we expect somewhere in the range of $120 million versus the $90 million in 2025. The volume impact in 2026, right now, we have it in as fairly flat for seed. Again, that's mainly due to the amounts of the acreage differences between corn and soy in the US, that shift.
I think the other couple takeaways 1, we are going to show growth in both seed and CP very much like we were able to do in 2025 and 2/3 of the ibida increase. Year-over-year will ACR to the seed business in about a third to CP again, very similar to what we've seen. So when I think about the, the bridge and the different elements of the bridge,
David Johnson: And then CP, more or less, is forecasted to have a similar benefit in 2026 as we continue to see growth in new products and biologicals. Probably the major difference between our bridge in 2026 versus 2025 would be on the cost improvements. And we still have $200 million built in for cost improvements in 2026. In 2025, we benefit pretty significantly. About half of our $665 million was really a commodity impact that we do not have included in 2026. We think that's gonna be flat in 2026. So that's a major difference there. Then we also have an $80 million kind of headwind in tariffs. So those are the major elements. And then when you go to other, if you look at other between the two, they're about the same.
David Johnson: And then CP, more or less, is forecasted to have a similar benefit in 2026 as we continue to see growth in new products and biologicals. Probably the major difference between our bridge in 2026 versus 2025 would be on the cost improvements. And we still have $200 million built in for cost improvements in 2026. In 2025, we benefit pretty significantly. About half of our $665 million was really a commodity impact that we do not have included in 2026. We think that's gonna be flat in 2026. So that's a major difference there. Then we also have an $80 million kind of headwind in tariffs. So those are the major elements. And then when you go to other, if you look at other between the two, they're about the same.
the volume impact in 2026 right now, we have it in as fairly flat for seed, again, that's mainly due to the Mars, the acreage differences between corn and soy in the US that shift and then CP more or less is forecasted to have a similar benefit in 26 as we continue to see growth in new products and Biologicals
Probably the major difference between our bridge and 26 versus 25 would be on the cost improvements. And
We have increased royalty income, that will be partially offset by the low single digit CP declines. So not much of a, a major difference from 2025. We already talked a little bit about net royalties, so that will be a positive. We expect somewhere in a range of 120 million dollars versus the 90 million in 2025.
David Johnson: CP, more or less, is forecasted to have a similar benefit in 2026 as we continue to see growth in new products and biologicals. Probably the major difference between our bridge in 2026 versus 2025 would be on the cost improvements. We still have $200 million built in for cost improvements in 2026. In 2025, we benefit pretty significantly. About half of our $665 million was really a commodity impact that we do not have included in 2026. We think that's gonna be flat in 2026. So that's a major difference there. We also have an $80 million kind of headwind in tariffs. So those are the major elements. When you go to other, if you look at other between the two, they're about the same.
David Johnson: CP, more or less, is forecasted to have a similar benefit in 2026 as we continue to see growth in new products and biologicals. Probably the major difference between our bridge in 2026 versus 2025 would be on the cost improvements. We still have $200 million built in for cost improvements in 2026. In 2025, we benefit pretty significantly. About half of our $665 million was really a commodity impact that we do not have included in 2026. We think that's gonna be flat in 2026. So that's a major difference there. We also have an $80 million kind of headwind in tariffs. So those are the major elements. When you go to other, if you look at other between the two, they're about the same.
We still have $200 million built in for cost, improvements in 26 and 25. We benefit pretty significantly about half of our 665 million was really a commodity impact that we do not in have included in 2026. We think that's going to be flattened 2026. So that's a major difference there. Now, we also have an 800 million kind of headwind in our in Terrace.
The volume impact in 2026 right now, we have it in as fairly flat, proceed. Again, that's mainly due to the Mazza, the acreage differences between corn and soy in the US that shift, and then CP more or less is forecasted to have a similar benefit in '26 as we continue to see growth in new products and Biologicals.
David Johnson: So when I think about it, you know, price is fairly balanced. Royalty is definitely a positive story. The volume is probably the one that you could argue one way or the other, whether or not we're being conservative or not, but it's very early in the season to be able to make that determination. And we'll keep an eye on being able to offset, you know, tariffs and include additional cost improvements. One other element we did include, and we put this in the notes, is we have $50 million of the synergies in our number in 2026, which obviously we would not have had in 2025.
David Johnson: So when I think about it, you know, price is fairly balanced. Royalty is definitely a positive story. The volume is probably the one that you could argue one way or the other, whether or not we're being conservative or not, but it's very early in the season to be able to make that determination. And we'll keep an eye on being able to offset, you know, tariffs and include additional cost improvements. One other element we did include, and we put this in the notes, is we have $50 million of the synergies in our number in 2026, which obviously we would not have had in 2025.
Probably the major difference between our bridge in '26 versus '25 would be on the cost of improvements. And
So those are the major elements and then when you go to other, if you look at other between the 2, they're about the same. So when I think about it, you know, price is fairly balanced royalties, definitely a a positive story. The volume is part of the 1 that you could argue 1 way, or the other, whether or not we're being conservative or not. But it's very early in the season to be able to make that termination and we'll keep an eye on being able to offset, you know, tear us and include additional costs improvements 1. Other element, we did include and we put this in the notes is we have 50 million of the synergies in our number in 2026. Which obviously, we would not have had in 25.
Chuck Magro: Conquesta?
Chuck Magro: Conquesta?
We still have $200 million built in for cost improvements in '26 and '25. We benefited pretty significantly—about half of our $665 million was really a commodity impact that we do not have included in 2026. We think that's going to be flattened in 2026, so that's a major difference there. Now, we also have an $800 million headwind in our inter-areas.
Judd O'Connor: Yeah, maybe just follow up on the Conkesta question. So for 2026, overall earnings for seed in Brazil are up significantly. The Conkesta transition and the additional share is certainly a big part of it. That, that also is a part of that $120 million that's in the plan that David just mentioned as well, so.
Judd O'Connor: Yeah, maybe just follow up on the Conkesta question. So for 2026, overall earnings for seed in Brazil are up significantly. The Conkesta transition and the additional share is certainly a big part of it. That, that also is a part of that $120 million that's in the plan that David just mentioned as well, so.
David Johnson: So when I think about it, you know, price is fairly balanced. Royalty is definitely a positive story. The volume is probably the one that you could argue one way or the other, whether or not we're being conservative or not, but it's very early in the season to be able to make that determination. And we'll keep an eye on being able to offset, you know, tariffs and include additional cost improvements. One other element we did include, and we put this in the notes, is we have $50 million of dis-synergies in our number in 2026, which obviously we would not have had in 2025.
David Johnson: So when I think about it, you know, price is fairly balanced. Royalty is definitely a positive story. The volume is probably the one that you could argue one way or the other, whether or not we're being conservative or not, but it's very early in the season to be able to make that determination. And we'll keep an eye on being able to offset, you know, tariffs and include additional cost improvements. One other element we did include, and we put this in the notes, is we have $50 million of dis-synergies in our number in 2026, which obviously we would not have had in 2025.
Contesta. Yeah, maybe just follow up on the contesta. Um, question. So for 2026 overall earnings for seed in Brazil are up significantly.
The contesta transition and the additional share is certainly a big part of it that that also is a part of that 120 million dollars. That's in the plan that David just mentioned as well. So
Operator: ... Your next question comes from the line of Laurence Alexander with Jefferies. Your line is open.
Operator: ... Your next question comes from the line of Laurence Alexander with Jefferies. Your line is open.
your next question comes from the line of Florence. Alexander with Jeffrey's your line is open.
Chuck Magro: Hi, everyone, this is Carol Jiang on for Laurence Alexander. Actually, my question has been asked already, but just to follow up on the tariff estimation. You estimate $8 million impact from incremental global tariff in 2026. Does this figure also account for the potential secondary effects, such as increased dumping of genetic product in non-tariff market like Brazil?
Carol Jiang: Hi, everyone, this is Carol Jiang on for Laurence Alexander. Actually, my question has been asked already, but just to follow up on the tariff estimation. You estimate $8 million impact from incremental global tariff in 2026. Does this figure also account for the potential secondary effects, such as increased dumping of genetic product in non-tariff market like Brazil?
Judd O'Connor: Conkesta? Yeah, and maybe just follow up on the Conkesta question. So for 2026, overall earnings for seed in Brazil are up significantly. The Conkesta transition and the additional share is certainly a big part of it. That also is a part of that $120 million that's in the plan that David just mentioned as well, so.
Judd O'Connor: Conkesta? Yeah, and maybe just follow up on the Conkesta question. So for 2026, overall earnings for seed in Brazil are up significantly. The Conkesta transition and the additional share is certainly a big part of it. That also is a part of that $120 million that's in the plan that David just mentioned as well, so.
So, those are the major elements and then when you go to other, if you look at other between the 2, there are about the same. So, when I think about it, you know, price is fairly balanced, royalties differently, a positive story. The volume is probably the 1 that you could argue 1 way, or the other, whether or not we're being conservative or not. But it's very early in the season to be able to make that termination and we'll keep an eye on being able to offset, you know, tear us and include additional costs improvements 1. Other element, we did include and we put this in the notes. As we have 50 million of the synergies in our number in 2026, which obviously, we would not have had in 25.
Casta. Yeah, may maybe just follow up on the concessa. Um, question. So for 2026 overall earnings for seed in Brazil are up significantly.
Account for, uh, the potential secondary effects such as increased dumping of genetic product in non-tariff market like Brazil.
David Johnson: Yes, I think, I, I believe the question is, does this include secondary impacts like impacts from Brazil? Is that the question?
David Johnson: Yes, I think, I, I believe the question is, does this include secondary impacts like impacts from Brazil? Is that the question?
The Contesta transition and the additional share is certainly a big part of it, and that also is a part of that $120 million. That's in the plan that David just mentioned as well. So
Operator: Your next question comes from the line of Lawrence Alexander with Jefferies. Your line is open.
Operator: Your next question comes from the line of Lawrence Alexander with Jefferies. Your line is open.
Yes, I think it I believe the question is does this include secondary impacts like, um, impacts from Brazil?
Is that the question?
[Analyst] (Jefferies): Hi, everyone. This is Carol Jiang on for Lawrence Alexander. Actually, my question has been asked already, but just to follow up on the tariff estimation. You estimate $8 million impact from incremental global tariff in 2026. Does this figure also account for the potential secondary effects, such as increased dumping of genetic product in non-tariff market like Brazil?
Laurence Alexander: Hi, everyone. This is Carol Jiang on for Lawrence Alexander. Actually, my question has been asked already, but just to follow up on the tariff estimation. You estimate $8 million impact from incremental global tariff in 2026. Does this figure also account for the potential secondary effects, such as increased dumping of genetic product in non-tariff market like Brazil?
your next question comes from the line of Florence. Alexander with Jeffrey's your line is open.
Uh yes just uh 80 million figure.
Chuck Magro: Yes, just the $80 million figure.
Carol Jiang: Yes, just the $80 million figure.
Robert King: Yeah, the estimate that we've got on the crop protection primarily is where the tariffs all are is encompassing everything we've got for the entire business. So it includes all companies, including all countries, including Brazil.
Robert King: Yeah, the estimate that we've got on the crop protection primarily is where the tariffs all are is encompassing everything we've got for the entire business. So it includes all companies, including all countries, including Brazil.
Chuck Magro: If it's helpful, almost all of it is CP, and almost all of it is China actives coming in to the-
Chuck Magro: If it's helpful, almost all of it is CP, and almost all of it is China actives coming in to the-
Uh, hi everyone. This is Carol John on for Lawrence Alexander. Uh, actually, the question has been asked already, but just to follow up on the, uh, the tariff estimation—you estimate $8 million impact from incremental global territory 2026. Does this figure also account for, uh, the potential secondary effects, such as increased dumping of generic product in non-tariff markets like Brazil.
David Johnson: Yes, I think that... I believe the question is, does this include secondary impacts like impacts from Brazil? Is that the question?
David Johnson: Yes, I think that... I believe the question is, does this include secondary impacts like impacts from Brazil? Is that the question?
Robert King: Right.
Robert King: Right.
Chuck Magro: To the United States.
Chuck Magro: To the United States.
Robert King: That's the biggest part.
Robert King: That's the biggest part.
Yeah, the, the estimate that we've got, um, on the crop protection, primarily is where the tariffs all are, uh, is encompassing everything we've got for the entire business. So it includes all companies in including, uh, all countries, including Brazil. If, if, if it's helpful, almost all of it is CP and almost all of it is China, Act is coming in to the, to the United States. That's the biggest part that that is by far, the the, the biggest part of the Tariff impact is correct.
Chuck Magro: That is by far the biggest part of the tariff impact.
Chuck Magro: That is by far the biggest part of the tariff impact.
Robert King: Correct.
Robert King: Correct.
Operator: Your next question comes from the line of Arun Viswanathan with RBC. Your line is open.
Operator: Your next question comes from the line of Arun Viswanathan with RBC. Your line is open.
Yes, I think it I believe the question is does this include secondary impacts like, um, impacts from Brazil?
Your next question comes from the line of Aaron visual Nathan with RBC, your line is open.
Is that the question?
Operator: ... Yes, just the $80 million figure.
Operator: ... Yes, just the $80 million figure.
Great, thanks for taking my question. Um,
Robert King: Yeah, the estimate that we've got on the crop protection primarily is where the tariffs all are is encompassing everything we've got for the entire business. So it includes all companies including all countries, including Brazil.
Robert King: Yeah, the estimate that we've got on the crop protection primarily is where the tariffs all are is encompassing everything we've got for the entire business. So it includes all companies including all countries, including Brazil.
Uh yes just uh 80 million figure.
Arun Viswanathan: Great. Thanks for taking my question. Excuse me. Most of my questions have been answered as well, but I guess I'll just ask on the $200 million productivity benefits. You guys have obviously been very successful the last few years, bringing up your margins and executing on that productivity. Is that, you know, kind of... Maybe you could break that out between seed and CP, if that's relevant. And then, is that kind of an ongoing - how do we think about the ongoing productivity opportunity? Where are you kind of in that journey? I know there's been a lot of discussion about that in the past, but maybe you can just kind of give us some updated thoughts. Thanks.
Arun Viswanathan: Great. Thanks for taking my question. Excuse me. Most of my questions have been answered as well, but I guess I'll just ask on the $200 million productivity benefits. You guys have obviously been very successful the last few years, bringing up your margins and executing on that productivity. Is that, you know, kind of... Maybe you could break that out between seed and CP, if that's relevant. And then, is that kind of an ongoing - how do we think about the ongoing productivity opportunity? Where are you kind of in that journey? I know there's been a lot of discussion about that in the past, but maybe you can just kind of give us some updated thoughts. Thanks.
Excuse me. Most of my my questions have been answered as well but I guess I'll just ask on the on the 200 million productivity benefits.
Uh you guys have obviously um been very successful. The last few years bringing up your margins and executing on that productivity. Is that
Chuck Magro: If it's helpful, almost all of it is CP, and almost all of it is China actives coming in to the United States.
Chuck Magro: If it's helpful, almost all of it is CP, and almost all of it is China actives coming in to the United States.
Robert King: That's the biggest part.
Robert King: That's the biggest part.
Chuck Magro: That is by far the biggest part of the tariff impact.
Chuck Magro: That is by far the biggest part of the tariff impact.
Robert King: Correct.
Robert King: Correct.
Yeah, the, the estimate that we've got, um, on the crop protection, primarily is where the tariffs all are, uh, is encompassing everything we've got for the entire business. So it includes all companies in including, uh, all countries, including Brazil. If, if it's helpful, almost all of it is CP and almost all of it is China, active coming in to the, to the United States. That's the biggest part that that is, by far, the the, the biggest part of the Tariff impact.
Operator: Your next question comes from the line of Arun Viswanathan with RBC. Your line is open.
Operator: Your next question comes from the line of Arun Viswanathan with RBC. Your line is open.
You know, kind of, maybe you could break that out between seed and CP if that's, uh, relevant and then, uh, is that kind of an ongoing? How do how do we think about the ongoing productivity opportunity? Um, where are you kind of in that Journey? Uh, I I know there's there's been a lot of discussion about that in the past, but maybe you can just kind of give us some updated thoughts. Thanks.
Your next question comes from the line of Aaron visual Nathan with RBC, your line is open.
David Johnson: Yeah, sure. No problem. So yeah, the 200 is split somewhat equally between the two different businesses, and the way I look at that is, it is a running rate. There's opportunities every year in seed, in production, and how we go and grow the seed with our farmers, and how efficient we can be there. In crop protection, typically, your normal productivity, you know, year-over-year improvements. I would say beyond that, though, there is further elements in crop when they look at footprint and different optimization opportunities in the future.
David Johnson: Yeah, sure. No problem. So yeah, the 200 is split somewhat equally between the two different businesses, and the way I look at that is, it is a running rate. There's opportunities every year in seed, in production, and how we go and grow the seed with our farmers, and how efficient we can be there. In crop protection, typically, your normal productivity, you know, year-over-year improvements. I would say beyond that, though, there is further elements in crop when they look at footprint and different optimization opportunities in the future.
[Analyst] (RBC): Great. Thanks for taking my question. Excuse me. Most of my questions have been answered as well, but I guess I'll just ask on the $200 million productivity benefits. You guys have obviously been very successful the last few years, bringing up your margins and executing on that productivity. Is that, you know, kind of-- maybe you could break that out between seed and CP, if that's relevant. And then, is that kind of an ongoing... How do we think about the ongoing productivity opportunity? Where are you kind of in that journey? I know there's been a lot of discussion about that in the past, but maybe you can just kind of give us some updated thoughts. Thanks.
Arun Viswanathan: Great. Thanks for taking my question. Excuse me. Most of my questions have been answered as well, but I guess I'll just ask on the $200 million productivity benefits. You guys have obviously been very successful the last few years, bringing up your margins and executing on that productivity. Is that, you know, kind of-- maybe you could break that out between seed and CP, if that's relevant. And then, is that kind of an ongoing... How do we think about the ongoing productivity opportunity? Where are you kind of in that journey? I know there's been a lot of discussion about that in the past, but maybe you can just kind of give us some updated thoughts. Thanks.
Great, thanks for taking my question. Um, excuse me, most of my my questions have been answered as well but I guess I'll just ask on the on the 200 million productivity benefits.
Uh, you guys have obviously, um, been very successful the last few years bringing up your margins and executing on that productivity. Is that
Chuck Magro: I think the one thing to call out is, when we gave our financial framework for 2027, we said it would be about $700 million of net productivity and cost improvement, and we had almost that last year. So obviously, with David's communication today around another $200 million on a growth basis, so call it... He did outline some of the other headwinds we have. So if you call that $100 million net, and that's only in 2026, and then if you play the framework forward into 2027, we're gonna far and exceed the original $700 million that we put into our financial framework.
Chuck Magro: I think the one thing to call out is, when we gave our financial framework for 2027, we said it would be about $700 million of net productivity and cost improvement, and we had almost that last year. So obviously, with David's communication today around another $200 million on a growth basis, so call it... He did outline some of the other headwinds we have. So if you call that $100 million net, and that's only in 2026, and then if you play the framework forward into 2027, we're gonna far and exceed the original $700 million that we put into our financial framework.
Yeah, sure, no problem. So yeah the 200 is split somewhat equally between the the 2 different businesses. And the way I look at that is is a a running rate. There's opportunities every year and Seed in production and how we go and grow the seed with our farmers and how efficient we can be there and crop protection. Typically your normal productivity, you know, year-over-year improvements. I would say beyond that though, there is further elements in crop when they look at footprint and different optimization opportunities. Um, in the future, I I think the 1 thing to call out is when we gave our financial framework for 2027,
David Johnson: Yeah, sure. No problem. So yeah, the $200 is split somewhat equally between the two different businesses. And the way I look at that is, it is a running rate. There's opportunities every year in seed, in production, and how we go and grow the seed with our farmers, and how efficient we can be there. In crop protection, typically, your normal productivity, you know, year-over-year improvements. I would say beyond that, though, there is further elements in crop when they look at footprint and different optimization opportunities in the future.
David Johnson: Yeah, sure. No problem. So yeah, the $200 is split somewhat equally between the two different businesses. And the way I look at that is, it is a running rate. There's opportunities every year in seed, in production, and how we go and grow the seed with our farmers, and how efficient we can be there. In crop protection, typically, your normal productivity, you know, year-over-year improvements. I would say beyond that, though, there is further elements in crop when they look at footprint and different optimization opportunities in the future.
You know, kind of, maybe you could break that out between seed and CP if that's, uh, relevant and then, uh, is that kind of an ongoing? How do how do we think about the ongoing productivity opportunity? Um, where are you kind of in that Journey? Uh, I I know there's there's been a lot of discussion about that in the past, but maybe you can just kind of give us some updated thoughts. Thanks.
We said it would be about 700 million of of net productivity and cost Improvement and we had almost almost that last year.
So obviously uh with David's communication today around another couple hundred million on a growth basis. So call it he did outline some of the other headwinds we have. So if you call that a 100 million net,
Chuck Magro: I think the one thing to call out is, when we gave our financial framework for 2027, we said it would be about $700 million of net productivity and cost improvement, and we had almost that last year. So obviously, with David's communication today around another couple hundred million on a growth basis, so call it. He did outline some of the other headwinds we have. So if you call that $100 million net, and that's only in 2026, and then if you play the framework forward into 2027, we're gonna far exceed the original $700 million that we put into our financial framework.
Chuck Magro: I think the one thing to call out is, when we gave our financial framework for 2027, we said it would be about $700 million of net productivity and cost improvement, and we had almost that last year. So obviously, with David's communication today around another couple hundred million on a growth basis, so call it. He did outline some of the other headwinds we have. So if you call that $100 million net, and that's only in 2026, and then if you play the framework forward into 2027, we're gonna far exceed the original $700 million that we put into our financial framework.
Chuck Magro: We probably overachieved a little bit in 2025, but I think 2026 and the pipeline that we've got for cost and productivity is still very healthy across the company, and it is more or less split between seed and CP.
Chuck Magro: We probably overachieved a little bit in 2025, but I think 2026 and the pipeline that we've got for cost and productivity is still very healthy across the company, and it is more or less split between seed and CP.
In production, and how we go and grow the seed with our farmers, and how efficiently we can be there in crop protection—typically your normal productivity, you know, year-over-year improvements. I would say beyond that, though, there are further elements in crop when they look at footprint and different optimization opportunities. Um, in the future, I—I…
think the 1 thing to call out is when we gave our financial framework for 2027,
Um, and that's only in 20126. And then if you play the framework forward in the 2027, we're going to far and exceed the original 700 million that we put in into, um, our, our financial framework. We probably over-achieved a little bit in 25, but I, I think 26 in the pipeline that we've got for cost and productivity, it's still very healthy across the company, and it is more or less split between seed and CP.
Operator: Your next question comes from the line of Patrick Cunningham with Citi. Your line is open.
Operator: Your next question comes from the line of Patrick Cunningham with Citi. Your line is open.
Your next question comes from the line of Patrick. Coningham with the city, your line is open.
Patrick Cunningham: Hi, good morning. As you look at the Latin American CP market for 2026, you know, does the current channel inventory position support a return to more normalized purchasing patterns, or should we anticipate continued volatility in some of the order timing? And have you seen any further impact or improvement of credit and liquidity concerns for farmers in the region?
Patrick Cunningham: Hi, good morning. As you look at the Latin American CP market for 2026, you know, does the current channel inventory position support a return to more normalized purchasing patterns, or should we anticipate continued volatility in some of the order timing? And have you seen any further impact or improvement of credit and liquidity concerns for farmers in the region?
We said it would be about $700 million of net productivity and cost improvement, and we had almost that last year. So, obviously with David's communication today around another couple hundred million on a growth basis—so, call it, he did outline some of the other headwinds we have. So if you call that $100 million net,
Chuck Magro: We probably overachieved a little bit in 25, but I think 26 and the pipeline that we've got for cost and productivity is still very healthy across the company, and it is more or less split between seed and CP.
Chuck Magro: We probably overachieved a little bit in 25, but I think 26 and the pipeline that we've got for cost and productivity is still very healthy across the company, and it is more or less split between seed and CP.
Hi. Good morning. Um, as you look at the Latin American CP market for 2026, you know, does the current Channel inventory position, uh, support a return to more normalized, purchasing patterns, or should we anticipate continued volatility in some of the order timing? And have you seen any further impact or Improvement of credit and liquidity concerns for farmers in the region?
Patrick. This is Robert. I'll take that 1.
Robert King: Patrick, this is Robert. I'll take that one. As far as LatAm goes, we're expecting the year as we move into this year, you know, crops are in the ground now. And looking at 2026, we're gonna continue to see pricing pressures in LatAm. We expect volume growth to take place there, much like this year. More lands going in, and the pest and resistance pressures continue to build. So we expect growth to continue to happen there. Pricing pressures, like I said, will continue. And that just has to do with there is more than enough supply in the market nowadays, and so that'll eventually tighten back up. And from a channel standpoint, the channels are about normal right now, for this time of year.
Robert King: Patrick, this is Robert. I'll take that one. As far as LatAm goes, we're expecting the year as we move into this year, you know, crops are in the ground now. And looking at 2026, we're gonna continue to see pricing pressures in LatAm. We expect volume growth to take place there, much like this year. More lands going in, and the pest and resistance pressures continue to build. So we expect growth to continue to happen there. Pricing pressures, like I said, will continue. And that just has to do with there is more than enough supply in the market nowadays, and so that'll eventually tighten back up. And from a channel standpoint, the channels are about normal right now, for this time of year.
as far as a lot to him, uh, goes
Um, and that's only in 2026. And then if you play the framework forward in the 2027, we're going to far and exceed the original 700 million that we put in into, um, our, our financial framework. We probably over-achieved a little bit in 25, but I, I think 26 in the pipeline that we've got for cost and productivity is still very healthy across the company and it is more or less split between seed and CP.
Operator: Your next question comes from the line of Patrick Cunningham with Citi. Your line is open.
Operator: Your next question comes from the line of Patrick Cunningham with Citi. Your line is open.
We're we're expecting the year as we move into this year. You know crops are in the ground now um and looking at 2026.
[Analyst] (Citi): Hi, good morning. As you look at the Latin American CP market for 2026, you know, does the current channel inventory position support a return to more normalized purchasing patterns, or should we anticipate continued volatility in some of the order timing? And have you seen any further impact or improvement of credit and liquidity concerns for farmers in the region?
Patrick Cunningham: Hi, good morning. As you look at the Latin American CP market for 2026, you know, does the current channel inventory position support a return to more normalized purchasing patterns, or should we anticipate continued volatility in some of the order timing? And have you seen any further impact or improvement of credit and liquidity concerns for farmers in the region?
Your next question comes from the line of Patrick Coningham with the Citi. Your line is open.
We're going to continue to see pricing pressures in in latim. Uh, we, we expect volume growth to to take place there, um, much like much like this year. Um, more lands going in and the pest and resistance, pressures continue to build.
Hi. Good morning. Um, as you look at the Latin American CP market for 2026, you know, does the current Channel inventory position, uh, support a return to more normalized, purchasing patterns, or should we anticipate continued volatility in some of the order timing? And have you seen any further impact or Improvement of credit and liquidity concerns for farmers in the region?
Robert King: Patrick, this is Robert. I'll take that one. As far as LatAm goes, we're expecting the year as we move into this year, you know, crops are in the ground now. And looking at 2026, we're gonna continue to see pricing pressures in LatAm. We expect volume growth to take place there, much like this year. More land's going in, and the pest and resistance pressures continue to build. So we expect growth to continue to happen there. Pricing pressures, like I said, will continue. And that just has to do with, there is more than enough supply in the market nowadays. And so that'll eventually tighten back up. And from a channel standpoint, the channels are about normal right now, for this time of year.
Robert King: Patrick, this is Robert. I'll take that one. As far as LatAm goes, we're expecting the year as we move into this year, you know, crops are in the ground now. And looking at 2026, we're gonna continue to see pricing pressures in LatAm. We expect volume growth to take place there, much like this year. More land's going in, and the pest and resistance pressures continue to build. So we expect growth to continue to happen there. Pricing pressures, like I said, will continue. And that just has to do with, there is more than enough supply in the market nowadays. And so that'll eventually tighten back up. And from a channel standpoint, the channels are about normal right now, for this time of year.
Patrick, this Robert ala take that 1.
as far as latim, uh, goes
We were expecting the year as we move into this year. You know, crops are in the ground now, um, and looking at 2026.
Robert King: We need to let let the year play out for the rest of the season to see where we land there. From a farmer standpoint, to touch on that just a little bit, you know, farmers in, in Latin America are stressed. Very high interest rates, commodity prices a little bit suppressed, but they're still making money, by and large. Cash flow is, is tight for them, and we've been working through a lot of those things with them. You know, keep in mind, or you will have seen that, you know, our barter program this year between crop and seed will be near $1 billion in total for revenue there.
Robert King: We need to let let the year play out for the rest of the season to see where we land there. From a farmer standpoint, to touch on that just a little bit, you know, farmers in, in Latin America are stressed. Very high interest rates, commodity prices a little bit suppressed, but they're still making money, by and large. Cash flow is, is tight for them, and we've been working through a lot of those things with them. You know, keep in mind, or you will have seen that, you know, our barter program this year between crop and seed will be near $1 billion in total for revenue there.
So we expect growth to continue to happen there, um, pricing pressures. Um, like I said, we'll we'll continue that and that just has to do with there is more than enough Supply in the market nowadays. Um, and so that'll eventually tighten tighten back up. And from a channel standpoint the channels are about normal right now. Um, for this time of year, we need to let let the year, play out uh for the rest of the season to see where we land there.
Robert King: And so we're doing things to help mitigate risk and to help manage that with farmers, and we think we're in a pretty good position as we head into 2026 to have another good year there in a market that is challenged.
Robert King: And so we're doing things to help mitigate risk and to help manage that with farmers, and we think we're in a pretty good position as we head into 2026 to have another good year there in a market that is challenged.
We're going to continue to see pricing pressures in in latim. Uh, we, we expect volume growth to to take place there, um, much like much like this year. Um, more lands going in and the pest and resistance pressures continue to build. So we expect growth to continue to happen there um pricing pressures. Um like I said, we'll we'll continue that and that just has to do with there is more than enough Supply in the market nowadays. Um, and so that'll eventually tighten tighten back up. And from a channel standpoint the channels are about normal right now.
Robert King: We need to let the year play out for the rest of the season to see where we land there. From a farmer standpoint, to touch on that just a little bit, you know, farmers in Latin America are stressed. Very high interest rates, commodity prices a little bit suppressed, but they're still making money, by and large. Cash flow is tight for them, and we've been working through a lot of those things with them. You know, keep in mind, or you will have seen that, you know, our barter program this year between crop and seed will be near $1 billion in total for revenue there.
Robert King: We need to let the year play out for the rest of the season to see where we land there. From a farmer standpoint, to touch on that just a little bit, you know, farmers in Latin America are stressed. Very high interest rates, commodity prices a little bit suppressed, but they're still making money, by and large. Cash flow is tight for them, and we've been working through a lot of those things with them. You know, keep in mind, or you will have seen that, you know, our barter program this year between crop and seed will be near $1 billion in total for revenue there.
America are stressed very high, interest rates, um commodity prices a little bit suppressed. Um but they're still making money by and large um, cash flow is is tight for them. And we, we've been working through a lot of those things with them, you know. Keep in mind, are you will have seen that, you know, our barter program this year between crop and Seed will be near near billion dollars uh, in total for Revenue there. And so we're doing things to help mitigate risk and to, to help manage that with farmers and we think we're in a pretty good position as we head in 26 to, uh, have a have another good year there in a, in a market. That is challenged
Um, for this time of year, we need to let let the year, play out uh for the rest of the season to see where we land there.
Operator: Your next question comes from the line of Matthew DeYoe with Bank of America. Your line is open.
Operator: Your next question comes from the line of Matthew DeYoe with Bank of America. Your line is open.
Your next question comes from the line is Matthew. Do with Bank of America. Your line is open,
Morning. Um,
Edlain Rodriguez: ... Morning. You talked openly about, and kind of the initial days of the announcement that seed would be looking to expand beyond corn and soy. And I know you have the hybrid wheat coming out next year, which is obviously exciting, and you're talking a little bit about corn- cotton on the back of the Bayer agreement. But what-- how do you prioritize the new, the new markets? Is there anything beyond that? Are you looking at fruits, fruits and veggies more broadly? Do you need acquisitions to get to where you think you're- you wanna be, in five, 10 years in the seed business from a portfolio perspective?
Matthew DeYoe: ... Morning. You talked openly about, and kind of the initial days of the announcement that seed would be looking to expand beyond corn and soy. And I know you have the hybrid wheat coming out next year, which is obviously exciting, and you're talking a little bit about corn- cotton on the back of the Bayer agreement. But what-- how do you prioritize the new, the new markets? Is there anything beyond that? Are you looking at fruits, fruits and veggies more broadly? Do you need acquisitions to get to where you think you're- you wanna be, in five, 10 years in the seed business from a portfolio perspective?
Robert King: So we're doing things to help mitigate risk and to help manage that with farmers, and we think we're in a pretty good position as we head into 2026 to have another good year there in a market that is challenged.
Robert King: So we're doing things to help mitigate risk and to help manage that with farmers, and we think we're in a pretty good position as we head into 2026 to have another good year there in a market that is challenged.
you talked to openly about and, and, and kind of the initial days of the, the announcement that seed would be looking to expand Beyond corn and soy. Uh, and I know you have the hybrid weed coming out next year, which is obviously exciting and you're talking a little bit about corn, uh, cotton on the back of the bear agreement, but what
Um from a, from a farmer standpoint to touch on that just a little bit. You know, farmers in in Latin, America are stressed, very high, interest rates, uh commodity prices a little bit suppressed. Um but they're still making money by and large um, cash flow is is tight for them. And we, we've been working through a lot of those things with them, you know. Keep in mind, our you will have seen that, you know, our barter program this year between crop and Seed will be near near near billion dollars, uh, in total for Revenue there. And so, we're doing things to help mitigate risk and to, to help manage that with farmers and we think we're in a pretty good position as we head into 26, to, uh, have a have another good year there in a, in a market. That is challenged
Operator: Your next question comes from the line of Matthew DeYoe with Bank of America. Your line is open.
Operator: Your next question comes from the line of Matthew DeYoe with Bank of America. Your line is open.
How do you prioritize the new? The new markets are there, anything beyond that? Are you looking at fruits uh fruits and veggies more broadly? Um do you need Acquisitions to get to where you think? You you want to be uh, in 5 10 years on the seed business from a portfolio perspective.
Your next question comes from the line of Matthew with Bank of America. Your line is open.
[Analyst] (Bank of America): Morning. You talked openly about and kind of the initial days of the announcement that seed would be looking to expand beyond corn and soy. I know you have the hybrid wheat coming out next year, which is obviously exciting, and you're talking a little bit about corn, cotton on the back of the Bayer agreement. But what, how do you prioritize the new markets? Are there anything beyond that? Are you looking at fruits, fruits and veggies more broadly? Do you need acquisitions to get to where you think you're you wanna be in five, 10 years in the seed business from a portfolio perspective?
Matthew DeYoe: Morning. You talked openly about and kind of the initial days of the announcement that seed would be looking to expand beyond corn and soy. I know you have the hybrid wheat coming out next year, which is obviously exciting, and you're talking a little bit about corn, cotton on the back of the Bayer agreement. But what, how do you prioritize the new markets? Are there anything beyond that? Are you looking at fruits, fruits and veggies more broadly? Do you need acquisitions to get to where you think you're you wanna be in five, 10 years in the seed business from a portfolio perspective?
Chuck Magro: Yeah, yeah, Matt, let me give you a teaser, but I want you to join us in September when we do our investor day for both companies, just prior to our separation. So I won't tell you the whole story. But look, I think from a seed perspective, we have a lot of opportunity in our core businesses. And you know, Judd just articulated a little bit here on this call. So we think there's room to grow in corn and soybeans. And with the agreement now that we have in place, the seed licensing business, I think, is gonna be just a great growth platform for us going forward. I think then, we've talked about cotton, so that's another new market for us, and we've already covered gene editing.
Chuck Magro: Yeah, yeah, Matt, let me give you a teaser, but I want you to join us in September when we do our investor day for both companies, just prior to our separation. So I won't tell you the whole story. But look, I think from a seed perspective, we have a lot of opportunity in our core businesses. And you know, Judd just articulated a little bit here on this call. So we think there's room to grow in corn and soybeans. And with the agreement now that we have in place, the seed licensing business, I think, is gonna be just a great growth platform for us going forward. I think then, we've talked about cotton, so that's another new market for us, and we've already covered gene editing.
Morning. Um,
Yeah, yeah, Matt let me give you a teaser but I want you to join us in September when we do our investor day for both companies just prior to our separation. So I won't tell you the whole story but look I I think from a a seed perspective
you talked to openly about and, and, and kind of the initial days of the, the announcement that seed would be looking to expand Beyond corn and soy. Uh, and I know you have the hybrid weed coming out next year, which is obviously exciting and you're talking a little bit about corn, uh, cotton on the back of the bear agreement, but what
Chuck Magro: Yeah, yeah, Matt, let me give you a teaser, but I want you to join us in September when we do our Investor Day for both companies just prior to our separation, so I won't tell you the whole story. But, look, I think from a seed perspective, we have a lot of opportunity in our core businesses. And, you know, Judd just articulated a little bit here on this call. So we think there's room to grow in corn and soybeans. And with the agreement now that we have in place, the seed licensing business, I think is gonna be just a great growth platform for us going forward. I think then, we've talked about cotton, so that's another new market for us, and we've already covered gene editing.
Chuck Magro: Yeah, yeah, Matt, let me give you a teaser, but I want you to join us in September when we do our Investor Day for both companies just prior to our separation, so I won't tell you the whole story. But, look, I think from a seed perspective, we have a lot of opportunity in our core businesses. And, you know, Judd just articulated a little bit here on this call. So we think there's room to grow in corn and soybeans. And with the agreement now that we have in place, the seed licensing business, I think is gonna be just a great growth platform for us going forward. I think then, we've talked about cotton, so that's another new market for us, and we've already covered gene editing.
How do you prioritize the new? The new markets are there—anything beyond that? Are you looking at fruits, uh, fruits and veggies more broadly? Um, do you need acquisitions to get to where you think you want to be, uh, in five, ten years on the seed business from a portfolio perspective?
Um, we we have a lot of opportunity in our core businesses and, uh, you know, judge just articulated a little bit here on this call. So we, we think there's room to grow in, in corn and soybeans. And with the agreement now that we have in place the feed, uh, uh, licensing business, I think is going to be just a great growth platform for us going forward. I think then, uh, we've talked about cotton, so that's another new market for us.
And we've already covered a gene editing. I think, Gene editing the capability if we can provide.
Chuck Magro: I think gene editing, the capability, if we can provide differentiated technology in from our innovation in gene editing, we will consider what I would consider to be tangential or adjacent crops. But we won't go there unless we believe we can provide something that is unique and special to the market. And right now, as we said, our short-term focus is seed licensing in cotton and corn and in soybeans, and then entering the hybrid wheat market. We're gonna do that conventionally, but also with gene-edited hybrid wheat. And that market is the largest row crop market on the planet. 20% of our calories are still consumed there as humanity. And we've got lots of new technology coming in with our proprietary traits as well.
Chuck Magro: I think gene editing, the capability, if we can provide differentiated technology in from our innovation in gene editing, we will consider what I would consider to be tangential or adjacent crops. But we won't go there unless we believe we can provide something that is unique and special to the market. And right now, as we said, our short-term focus is seed licensing in cotton and corn and in soybeans, and then entering the hybrid wheat market. We're gonna do that conventionally, but also with gene-edited hybrid wheat. And that market is the largest row crop market on the planet. 20% of our calories are still consumed there as humanity. And we've got lots of new technology coming in with our proprietary traits as well.
Yeah, yeah, Matt let me give you a teaser but I want you to join us in September when we do our investor day for both companies just prior to our separation. So I won't tell you the whole story but look I I think from a a feed perspective
Differentiated technology and in, in from our innovation, in gene editing. We we will consider what I would consider to be tangential or adjacent crops, but we won't go there. Unless we believe we can provide something that is unique and special to the market. And right now, as we said our, our short term Focus,
Have in place.
The seed uh uh licensing business I think is going to be just a great growth platform for us going forward. I think then uh, we've talked about cotton so that's another new market for us.
Chuck Magro: I think gene editing, the capability, if we can provide differentiated technology and from our innovation in gene editing, we, we will consider what I would consider to be tangential or adjacent crops. But we won't go there unless we believe we can provide something that is unique and special to the market. And right now, as we said, our, our short-term focus is seed licensing in cotton, corn, and soybeans, and then entering the hybrid wheat market. We're gonna do that conventionally, but also with gene-edited hybrid wheat. And that market is the largest row crop market on the planet. 20% of our calories are still consumed there, as humanity. And we've got lots of new technology coming in with our proprietary traits as well.
Chuck Magro: I think gene editing, the capability, if we can provide differentiated technology and from our innovation in gene editing, we, we will consider what I would consider to be tangential or adjacent crops. But we won't go there unless we believe we can provide something that is unique and special to the market. And right now, as we said, our, our short-term focus is seed licensing in cotton, corn, and soybeans, and then entering the hybrid wheat market. We're gonna do that conventionally, but also with gene-edited hybrid wheat. And that market is the largest row crop market on the planet. 20% of our calories are still consumed there, as humanity. And we've got lots of new technology coming in with our proprietary traits as well.
And we've already covered gene editing. I think gene editing is a capability we can provide.
Chuck Magro: So I think we've got a lot to keep our plates full right now, but with the advent of gene editing, and as we get more comfortable with the acceptance of the science around the world, which certainly looks to me like that's what's happening, it should open up other markets for us in the future.
Chuck Magro: So I think we've got a lot to keep our plates full right now, but with the advent of gene editing, and as we get more comfortable with the acceptance of the science around the world, which certainly looks to me like that's what's happening, it should open up other markets for us in the future.
Is seed Licensing in cotton and corn and in soybeans. And then entering the hybrid wheat Market. We're going to do that conventionally but also with Gene edited, uh, hybrid wheat, um, and that market is the largest row crop Market on the planet. 20% of our calories are still consumed there, uh, as humanity. And uh, we've got lots of new technology coming in with our proprietary traits as well. So I I think we've got a lot to keep our plates full right now but with the Advent of Gene editing and as we get more comfortable with the acceptance of the science around the world which certainly looks to me like that's what's happening. It should open up other markets for us in the future.
Operator: Your next question comes from the line of Mike Sison with Wells Fargo. Your line is open.
Operator: Your next question comes from the line of Mike Sison with Wells Fargo. Your line is open.
Your next question comes from the line of my existence with Wells. Fargo, your line is open.
Mike Sison: Hey, good morning. Just a quick follow-up on crop protection. Looks like you expect the markets to rebound in 2026 versus 2025. Anything in particular that gives you confidence there? The double-digit volume growth you have for the year seems to be more biologics than strong demand for new products. And then just a quick follow-up on Brazil pricing pressure and crop protection. Is it stabilized, getting worse, getting better? Just curious on that. Thanks.
Mike Sison: Hey, good morning. Just a quick follow-up on crop protection. Looks like you expect the markets to rebound in 2026 versus 2025. Anything in particular that gives you confidence there? The double-digit volume growth you have for the year seems to be more biologics than strong demand for new products. And then just a quick follow-up on Brazil pricing pressure and crop protection. Is it stabilized, getting worse, getting better? Just curious on that. Thanks.
Chuck Magro: So I think we've got a lot to keep our plates full right now. But with the advent of gene editing, and as we get more comfortable with the acceptance of the science around the world, which certainly looks to me like that's what's happening, it should open up other markets for us in the future.
Chuck Magro: So I think we've got a lot to keep our plates full right now. But with the advent of gene editing, and as we get more comfortable with the acceptance of the science around the world, which certainly looks to me like that's what's happening, it should open up other markets for us in the future.
Hey, good morning. Uh, just a quick follow-up on cloud protection. Looks like you expect Demarcus to rebound and in 26 versus 25, anything in particular that gives you confidence there. The double digit volume goes, you have for the, for the year seems to be more biologic since it's starting to manage to do products and then just a quick follow-up on Brazil pricing pressure and crop protection. Is it stabilized getting worse? Getting better. Just curious on that. Thanks,
Differentiated technology and in, from our innovation in gene editing. We we will consider what I would consider to be tangential or adjacent crops, but we won't go there. Unless we believe we can provide something that is unique and special to the market. And right now, as we said, our our short-term focus is feed Licensing in cotton and corn and in soybeans and then entering the hybrid wheat Market. We're going to do that conventionally but also with Gene edited, uh, hybrid wheat, um, and that market is the largest row crop Market on the planet. 20% of our calories are still consumed there, uh, as humanity. And uh, we've got lots of new technology coming in with our proprietary traits as well. So I I think we've got a lot to keep our plates full right now but with the Advent of Gene editing and as we get more comfortable, with the acceptance of the science around the world,
Robert King: Yeah, Michael, this is Robert again. Let's talk about CP markets for 2026. We expect to see modest growth in the overall CP market around the world this year. It'll be volume will continue to grow. There's gonna be some pricing pressures against that. But by and large, you know, we're seeing positive signs around the world. And you know, earlier question this morning about how things looking in Northern Hemisphere on the order books, and like I said, they're strong. So the year started really well from that standpoint. Specific to Brazil, when you think about pricing there and when do they stabilize, et cetera, a couple of things happening in Brazil. When you look at the overall market, there is ample supply of product coming in.
Robert King: Yeah, Michael, this is Robert again. Let's talk about CP markets for 2026. We expect to see modest growth in the overall CP market around the world this year. It'll be volume will continue to grow. There's gonna be some pricing pressures against that. But by and large, you know, we're seeing positive signs around the world. And you know, earlier question this morning about how things looking in Northern Hemisphere on the order books, and like I said, they're strong. So the year started really well from that standpoint. Specific to Brazil, when you think about pricing there and when do they stabilize, et cetera, a couple of things happening in Brazil. When you look at the overall market, there is ample supply of product coming in.
Which certainly looks to me like that's what's happening. It should open up other markets for us in the future.
Operator: Your next question comes from the line of Michael Sison with Wells Fargo. Your line is open.
Operator: Your next question comes from the line of Michael Sison with Wells Fargo. Your line is open.
[Analyst] (Wells Fargo): Hey, good morning. Just a quick follow-up on crop protection. Looks like you expect the markets to rebound in 2026 versus 2025. Anything in particular that gives you confidence there? The double-digit volume growth you have for the year seems to be more biologicals and strong demand for new products. And then just a quick follow-up on Brazil pricing pressure and crop protection. Is it stabilized, getting worse, getting better? Just curious on that. Thanks.
Michael Sison: Hey, good morning. Just a quick follow-up on crop protection. Looks like you expect the markets to rebound in 2026 versus 2025. Anything in particular that gives you confidence there? The double-digit volume growth you have for the year seems to be more biologicals and strong demand for new products. And then just a quick follow-up on Brazil pricing pressure and crop protection. Is it stabilized, getting worse, getting better? Just curious on that. Thanks.
Your next question comes from the line of my existence with Wells. Fargo, your line is open.
Michael, this is Robert again. Um, let's talk about CP markets for for 2026. We expect to see modest growth, uh, in the overall CP market around the world this year. Um, it'll be volume, we'll continue to grow. Um, there's going to be some pricing pressures against that, but, um, by and large, you know, we're seeing positive signs around the world. And, uh, you know, earlier question this morning about how things look in in northern hemisphere on the order books. And, and like I said, they were they're strong. So uh, the year started really well from that standpoint. Um,
Hey, good morning. Just a quick follow-up on crop protection. It looks like you expect the markets to rebound in '26 versus '25. Is there anything in particular that gives you confidence there? The double-digit volume growth you have for the year seems to be more biologics and strong demand for new products. And then, just a quick follow-up on Brazil pricing pressure in crop protection—is it stabilized, getting worse, or getting better? Just curious on that. Thanks.
Robert King: Yeah, Michael, this is Robert again. Let's talk about CP markets for 2026. We expect to see modest growth in the overall CP market around the world this year. It'll be, volume will continue to grow. There's gonna be some pricing pressures against that. But by and large, you know, we're seeing positive signs around the world. And you know, earlier question this morning about how things looking in Northern Hemisphere on the order books, and like I said, they're strong. So the year started really well from that standpoint. Specific to Brazil, when you think about pricing there and when do they stabilize, et cetera, a couple of things happening in Brazil. When you look at the overall market, there is ample supply of product coming in.
Robert King: Yeah, Michael, this is Robert again. Let's talk about CP markets for 2026. We expect to see modest growth in the overall CP market around the world this year. It'll be, volume will continue to grow. There's gonna be some pricing pressures against that. But by and large, you know, we're seeing positive signs around the world. And you know, earlier question this morning about how things looking in Northern Hemisphere on the order books, and like I said, they're strong. So the year started really well from that standpoint. Specific to Brazil, when you think about pricing there and when do they stabilize, et cetera, a couple of things happening in Brazil. When you look at the overall market, there is ample supply of product coming in.
Coming in.
And so,
Robert King: And so that is a lot of more generics, and formulated generics, but nevertheless, a lot of supply. But when you think about the differentiated products, we're still seeing a need for that technology, and farmers are demanding that. And keep in mind, for us, again, 2/3 differentiated around the world. For us, those products command about a 10% to 15% higher margin than the rest of the portfolio. So, so yeah, we think there continues to be some pricing pressures there from some of the big molecules, but we have a good portfolio to combat that, and we think we're in a pretty good place from a business standpoint as we head into 2026.
Robert King: And so that is a lot of more generics, and formulated generics, but nevertheless, a lot of supply. But when you think about the differentiated products, we're still seeing a need for that technology, and farmers are demanding that. And keep in mind, for us, again, 2/3 differentiated around the world. For us, those products command about a 10% to 15% higher margin than the rest of the portfolio. So, so yeah, we think there continues to be some pricing pressures there from some of the big molecules, but we have a good portfolio to combat that, and we think we're in a pretty good place from a business standpoint as we head into 2026.
That is a lot of more generic uh and formulated generics. But nevertheless um a lot of supply.
but when you think about the differentiated products,
we're still seeing, uh, a need for that technology and farmers are for are demanding that and keep in mind for us, uh, again, 2/3, differentiated around the world,
I'm Michael, this is Robert again. Um, let's talk about CP markets for for 2026. We expect to see modest growth, uh, in the overall CPU market around the world this year. Um, it'll be volume, we'll continue to grow. Um, there's going to be some pricing pressures against that, but, um, by and large, you know, we're seeing positive signs around the world. And, uh, you know, earlier question this morning about how things look in in northern hemisphere on the order books. And, and like I said, they were they're strong. So uh, the year started really well from that standpoint. Um,
Or us. Um those products command about a 10 to 15% higher margin than the rest of the portfolio.
so,
Robert King: And so that is a lot more generics, and formulated generics, but nevertheless, a lot of supply. But when you think about the differentiated products, we're still seeing a need for that technology, and farmers are demanding that. And keep in mind, for us, again, two-thirds differentiated around the world. For us, those products command about a 10 to 15% higher margin than the rest of the portfolio. So yeah, we think there continues to be some pricing pressures there from some of the big molecules, but we have a good portfolio to combat that, and we think we're in a pretty good place from a business standpoint as we head into 2026.
Robert King: And so that is a lot more generics, and formulated generics, but nevertheless, a lot of supply. But when you think about the differentiated products, we're still seeing a need for that technology, and farmers are demanding that. And keep in mind, for us, again, two-thirds differentiated around the world. For us, those products command about a 10 to 15% higher margin than the rest of the portfolio. So yeah, we think there continues to be some pricing pressures there from some of the big molecules, but we have a good portfolio to combat that, and we think we're in a pretty good place from a business standpoint as we head into 2026.
Specific to Brazil, when you think about pricing there and when they stabilize, etc., a couple things are happening in Brazil. When you look at the overall market, there is ample supply of product coming in, and so,
So yeah, we think it continues to be some pricing pressures there from from some of the big molecules but we have uh a good portfolio to combat that and we think we're in a pretty good place from a business standpoint as we head into 2026.
That is a lot of more generic uh and formulated generics. But nevertheless um a lot of supply.
Operator: Your next question comes from the line of Edlain Rodriguez with Mizuho. Your line is open.
Operator: Your next question comes from the line of Edlain Rodriguez with Mizuho. Your line is open.
Your next question comes from the line of Ed lender Rodriguez with mizou, your line is open.
But when you think about the differentiated products,
Edlain Rodriguez: Okay, thank you, and good morning, everyone. Quick one, this is a follow-up to the CP question. Like, the competitive pricing pressure we're seeing in Brazil and in some parts of Asia, can we ever see that happening in North America or Europe? Again, it's like, how well protected are these markets from the generics?
Edlain Rodriguez: Okay, thank you, and good morning, everyone. Quick one, this is a follow-up to the CP question. Like, the competitive pricing pressure we're seeing in Brazil and in some parts of Asia, can we ever see that happening in North America or Europe? Again, it's like, how well protected are these markets from the generics?
We're still seeing, uh, a need for that technology, and farmers are demanding that. And keep in mind for us, uh, again, two-thirds, differentiated around the world,
Okay, thank you and good morning everyone. Uh, quick 1, uh, in. Uh, this is a follow-up to the CP question, like the competitive pricing pressure, we're seeing in Brazil. And in some parts of Asia, can we ever see that happening in North America or Europe? Again, it's like how well protected all these markets from the, from the generics.
For us, those products command about a 10% to 15% higher margin than the rest of the portfolio. So
Chuck Magro: Yeah, Edlain, look, let me take a stab at that one. I think the businesses, the markets are just fundamentally different. They're structurally built differently. The way farmers buy their channel partners, the infrastructure that's in each of the countries or the regions are different. And no market is immune to having generics, right? Generics have been part of the global CP market as long as I've been around... and will always be, and they're in all the markets. I think that what's unique is what's happening in Brazil right now. And look, Brazil's gonna grow, and there's more area going into production, as we've already said.
Chuck Magro: Yeah, Edlain, look, let me take a stab at that one. I think the businesses, the markets are just fundamentally different. They're structurally built differently. The way farmers buy their channel partners, the infrastructure that's in each of the countries or the regions are different. And no market is immune to having generics, right? Generics have been part of the global CP market as long as I've been around... and will always be, and they're in all the markets. I think that what's unique is what's happening in Brazil right now. And look, Brazil's gonna grow, and there's more area going into production, as we've already said.
So, yeah, we think there's continued to be some pricing pressures there from some of the big molecules, but we have a good portfolio to combat that. And we think we're in a pretty good place from a business standpoint as we head into 2026.
Operator: Your next question comes from the line of Edlain Rodriguez with Mizuho. Your line is open.
Operator: Your next question comes from the line of Edlain Rodriguez with Mizuho. Your line is open.
Chuck Magro: Okay, thank you, and good morning, everyone. Quick one, this is a follow-up to the CP question. Like, the competitive pricing pressure we're seeing in Brazil and in some parts of Asia, can we ever see that happening in North America or Europe? Again, it's like, how well protected are these markets from the, from the generics?
Chuck Magro: Okay, thank you, and good morning, everyone. Quick one, this is a follow-up to the CP question. Like, the competitive pricing pressure we're seeing in Brazil and in some parts of Asia, can we ever see that happening in North America or Europe? Again, it's like, how well protected are these markets from the, from the generics?
Your next question comes from the line of Ed lender Rodriguez with mizou, your line is open.
Okay, thank you and good morning everyone. Uh, quick 1, uh, in. Uh, this is a follow up to the CP question. Like, the competitive pricing pressure, we seeing in Brazil, and in some parts of Asia, can we ever see that happening in North America or Europe? Again, it's like how well protected all these markets.
From the, from the generics.
Robert King: Yeah, Edlain, look, let me take a stab at that one. I think, look, the businesses, the markets are just fundamentally different. They're structurally built differently, the way the farmers buy, how their channel partners, the infrastructure that's in each of the countries or the regions are different. And no market is immune to having generics, right? Generics have been part of the global CP market as long as I've been around, and will always be, and they're in all the markets. I think that what's unique is what's happening in Brazil right now. And look, Brazil is gonna grow, and there's more area going into production, as we've already said.
Robert King: Yeah, Edlain, look, let me take a stab at that one. I think, look, the businesses, the markets are just fundamentally different. They're structurally built differently, the way the farmers buy, how their channel partners, the infrastructure that's in each of the countries or the regions are different. And no market is immune to having generics, right? Generics have been part of the global CP market as long as I've been around, and will always be, and they're in all the markets. I think that what's unique is what's happening in Brazil right now. And look, Brazil is gonna grow, and there's more area going into production, as we've already said.
Chuck Magro: But I think what we're seeing is that the channel is being a bit more responsible. It looks to us like the channel is functioning still relatively normally. There's a lot of product currently going to ground, but it is a well-supplied market because of the way that they allow their imports. Now, what we haven't talked about, I think, specific to Brazil is a lot of this product is coming from China, and it looks to us like China may be taking early steps to control some of their exports. They just repealed their export VAT, so that's gonna drive up the cost to export from China into Brazil. That, we think, is constructive for the market overall. We're starting to see M&A, actually, from some of the generics in China.
Chuck Magro: But I think what we're seeing is that the channel is being a bit more responsible. It looks to us like the channel is functioning still relatively normally. There's a lot of product currently going to ground, but it is a well-supplied market because of the way that they allow their imports. Now, what we haven't talked about, I think, specific to Brazil is a lot of this product is coming from China, and it looks to us like China may be taking early steps to control some of their exports. They just repealed their export VAT, so that's gonna drive up the cost to export from China into Brazil. That, we think, is constructive for the market overall. We're starting to see M&A, actually, from some of the generics in China.
Yeah, edlin look, let me take a stab at that 1. Um, I, I, I think, uh, look, the, the businesses, the markets are just fundamentally different. They're they're, they're structurally built differently. Um, the way, the way, the, uh farmers buy how their their Channel Partners the infrastructure. That's in each of the countries or the regions are different. And, um, we know Market is immune to having generics, right? Generics have been part of the global CP Market, as long as I've been around and will always be. And they're in all the markets, I think that what is unique is, is what's happening in Brazil right now, and look Brazil's going to grow and and there's there's more area going into production as we've already said. Uh, but I I think what we're what we're seeing is that the channel is being a bit more responsible. It looks to us like like the the channel is is functioning still relatively. Normally there's a lot of product currently going the ground but it is a well-supplied market because of of the
Yeah, edlin luck. Let, let me take a stab at that 1. Um, I, I, I think, uh, look, the, the businesses, uh, the markets are just fundamentally different. They're they're, they're structurally built differently. Um, the way, the way the, uh, farmers buy who their their Channel Partners the infrastructure, that's in each of the countries or the regions are different. And, um, we know Market is immune to having generics, right? Generics have been part of the global CP Market, as long as I've been around,
Robert King: But I think what we're seeing is that the channel is being a bit more responsible. It looks to us like the channel is functioning still relatively normally. There's a lot of product currently going to ground, but it is a well-supplied market because of the way that they allow their imports. Now, what we haven't talked about, I think, specific to Brazil, is a lot of this product is coming from China, and it looks to us like China may be taking early steps to control some of their exports. They just repealed their export VAT.
Robert King: But I think what we're seeing is that the channel is being a bit more responsible. It looks to us like the channel is functioning still relatively normally. There's a lot of product currently going to ground, but it is a well-supplied market because of the way that they allow their imports. Now, what we haven't talked about, I think, specific to Brazil, is a lot of this product is coming from China, and it looks to us like China may be taking early steps to control some of their exports. They just repealed their export VAT.
Way that they they allow their Imports. Now what we haven't talked about, I think specifically to Brazil is is a lot of this product is coming from China and it looks to us like China may be taking early steps to control some of their exports. They just repealed their export vat. Um so that that's going to drive up the cost to export outside of from China into Brazil that we think is constructive for the market overall, we're starting to see m&a actually from some of the
Chuck Magro: I think that will be constructive overall. So I think that when you start thinking about this, we are comfortable that 2026, now I'm gonna talk about globally, 2026, we should see some slow growth, which is a lot better than we've seen in the last three years. And 2025 was better than 2024, right? It was a flat market driven by volume. But as Robert said, our planning assumption today is some headwinds when it comes to pricing in Brazil, but the rest of the markets, I think, are gonna be quite healthy.
Chuck Magro: I think that will be constructive overall. So I think that when you start thinking about this, we are comfortable that 2026, now I'm gonna talk about globally, 2026, we should see some slow growth, which is a lot better than we've seen in the last three years. And 2025 was better than 2024, right? It was a flat market driven by volume. But as Robert said, our planning assumption today is some headwinds when it comes to pricing in Brazil, but the rest of the markets, I think, are gonna be quite healthy.
Chuck Magro: … So that's gonna drive up the cost to export outside of, from China into Brazil. That we think is constructive for the market overall. We're starting to see M&A actually, from some of the generics in China. I think that will be constructive overall. So I think that when you start thinking about this, we are comfortable that 2026, now I'm gonna talk about globally. 2026, we should see some slow growth, which is a lot better than we've seen in the last three years, and 2025 was better than 2024, right? It was a flat market driven by volume. But as Robert said, our planning assumption today is some headwinds when it comes to pricing in Brazil, but the rest of the markets, I think, are gonna be quite healthy.
Chuck Magro: … So that's gonna drive up the cost to export outside of, from China into Brazil. That we think is constructive for the market overall. We're starting to see M&A actually, from some of the generics in China. I think that will be constructive overall. So I think that when you start thinking about this, we are comfortable that 2026, now I'm gonna talk about globally. 2026, we should see some slow growth, which is a lot better than we've seen in the last three years, and 2025 was better than 2024, right? It was a flat market driven by volume. But as Robert said, our planning assumption today is some headwinds when it comes to pricing in Brazil, but the rest of the markets, I think, are gonna be quite healthy.
The generics in China, I think that will be constructive overall. So I, I think that when you start thinking about this, we are comfortable that 2026. Now, I'm going to talk about globally 2026. We should see some slow growth, which is a lot better than we've seen in the last 3 years. In 2025 was better than 24, right? It was a flat Market driven by volume, but but as Robert said, our planning assumption today is, is some headwinds when it comes to pricing in Brazil, but the rest of the markets I think are going to be quite healthy.
Jeffrey Zekauskas: I will turn the call back over to Kim Booth, VP, Investor Relations, for closing remarks.
Operator: I will turn the call back over to Kim Booth, VP, Investor Relations, for closing remarks.
I will turn the call back over to Kim Booth zp. Investor relations for closing remarks.
Kimberly Booth: Great. Well, thanks for joining and for your interest in Corteva, and we hope you have a safe and wonderful day.
Kim Booth: Great. Well, thanks for joining and for your interest in Corteva, and we hope you have a safe and wonderful day.
Great. Well, thanks for joining and for your interest in corteva and we hope you have a safe and wonderful day.
It is, is what's happening in Brazil right now, and look Brazil's going to grow and and there's there's more area going into production as we've already said. Uh, but I I think what we're what we're seeing is that the channel is being a bit more responsible. It looks to us like like the the channel is is functioning still relatively. Normally there's a lot of product currently going the ground, but it is a well, supplied Market because of of the way that they they allow their Imports. Now, what we haven't talked about, I think specific to Brazil is is a lot of this product is coming from China and it looks to us, like China may be taking early steps to control some of their exports. They just repealed their export that. Um, so that's going to drive up the cost to export outside of from China into Brazil that we think is constructive for the market overall, we're starting to see m&a actually from some of the generics in China. I think that will be constructive overall. So I I think that when
Jeffrey Zekauskas: Ladies and gentlemen, that concludes today's call. Thank you for joining. You may now disconnect.
Operator: Ladies and gentlemen, that concludes today's call. Thank you for joining. You may now disconnect.
Ladies and gentlemen, that concludes today's call, thank you for joining you may now. Disconnect
You start thinking about this, we are comfortable that 2026—now, I'm going to talk about globally, 2026. We should see some slow growth, which is a lot better than we've seen in the last three years. 2025 was better than '24, right? It was a flat market driven by volume, but as Robert said, our planning assumption today is some headwinds when it comes to pricing in Brazil, but the rest of the markets I think are going to be quite healthy.
Operator: I will turn the call back over to Kim Booth, VP, Investor Relations, for closing remarks.
Operator: I will turn the call back over to Kim Booth, VP, Investor Relations, for closing remarks.
Kim Booth: Great! Well, thanks for joining and for your interest in Corteva, and we hope you have a safe and wonderful day.
Kim Booth: Great! Well, thanks for joining and for your interest in Corteva, and we hope you have a safe and wonderful day.
I will turn the call back over to Kim Booth zp. Investor relations for closing remarks.
Great. Well, thanks for joining and for your interest in corteva and we hope you have a safe and wonderful day.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.
Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.
Ladies and gentlemen, that concludes today's call thank you for joining. You may know disconnect.
