Strong Start to 2025
Corteva reported a 15% increase in Q1 EBITDA and nearly 400 basis points of margin expansion, driven by strong cost execution in Biologicals, CP new products, and seed out-licensing.
Positive Outlook for Seed Business
Organic sales in the seed business were up 2% in Q1, with a strong demand for new products. The company plans to introduce approximately 500 new products, including 300 new seed hybrids and varieties.
Growth in Corn Planting and Ethanol Production
Farmers in the US are projected to increase corn planting by about 5%. Brazil's corn ethanol industry is expected to see significant growth, with corn accounting for nearly a third of the country's total ethanol production by 2026.
Operational Excellence and Cost Improvement
Corteva is tracking well against the $400 million net cost target and expects to generate $65 million in benefits this year from transitioning to a net out-licenser technology.
Resilience in Crop Protection
Organic sales for crop protection were up 3%, with double-digit volume growth for new products and Biologicals. The company expects high single-digit volume gains to offset low single-digit pricing headwinds.