The group has two main segments, Seed and Crop Protection, creating one of the broadest portfolios of agriculture solutions in the industry:

The Seed segment develops and delivers high-performance seed products by combining germplasm with proprietary trait technologies - such as insect and herbicide resistance, drought tolerance, and nutritional enhancements - to support crop productivity across a wide range of geographies, including dominant positions in US corn and soybeans, European sunflower and corn, and Latin American and South African corn markets; its portfolio includes well-known brands like Pioneer® and Brevant®, digital seed treatment platforms like LumiGEN™, and a hybrid production model.

The Crop Protection segment provides a portfolio of herbicides, insecticides, fungicides, nitrogen stabilizers, and biologicals designed to protect yields and promote plant health above and below ground; it holds leading positions in global markets with differentiated technologies like the Enlist™ weed control system and novel actives such as Inatreq™, Reklemel™, and Arylex®, sourcing key materials - including chlorinated pyridines, specialty intermediates, and technical-grade ingredients - through multi-supplier agreements and contract manufacturing, ensuring regional production agility, supply resilience, and alignment with shifting customer demands and regulatory conditions.

The global agriculture industry is projected to reach a gross production value of $4.82 trillion in 2025, with steady growth expected to bring it to $5.52 trillion by 2029 (CAGR 3.44%). Imports and exports are also significant, projected at $939.5 billion and $865.2 billion respectively in 2025. Growth is fueled by rising global demand driven by population increases, urbanization, and dietary shifts. The sector faces significant structural challenges including climate change impacts, water scarcity, regulatory pressures on chemical inputs, and consumer demand for more sustainable farming practices, while access to advanced technologies like precision agriculture and AI remains uneven - especially in developing regions. Recent global shocks like COVID-19 and the war in Ukraine have exposed the fragility of food supply chains, with Ukraine’s reduced grain exports contributing to global price volatility. Despite these hurdles, technological innovation and expanding demand - particularly for cereals - position the sector for strong long-term growth, especially in emerging markets.

Statista – Agriculture Gross Production Value

Global agrifood supply chains are increasingly under strain due to overlapping pressures from climate change, geopolitical conflict, and overreliance on a small number of crops or production regions. According to BCG, up to 35% of global crop production could be lost by 2050 due to extreme weather, with rice alone projected to drop 9% globally and up to 18% in top-producing countries like India and Bangladesh. Events such as the war in Ukraine and severe droughts in South America have shown how simultaneous shocks can disrupt entire commodity markets - like vegetable oil - triggering price spikes and food insecurity. Addressing these challenges requires a shift toward climate-smart farming, supply chain diversification, and targeted innovation, such as developing more resilient crop varieties and AI-powered monitoring systems.

BCG – Building Resilience in Agrifood Supply Chains – Production Impacts for Major Crops by 2050

 

Corteva operates in a highly competitive environment including BASF, Bayer, FMC, Syngenta and ChemChina, as well as companies trading in generic crop protection chemicals and regional seed companies. Bayer AG, following its $63 billion acquisition of Monsanto in 2018, leads the industry with agricultural division revenues of €22.3 billion in 2024, and EBITDA margin of 21.72%, exceeding Corteva's 19.97%. Syngenta Group, owned by ChemChina, reported 2024 sales of $28.8 billion, while ChemChina, according to Forbes, reported $60.5 billion in revenue for 2023. BASF's Agricultural Solutions segment generated $10.2B in 2024 while FMC Corporation, more specialized in crop protection with minimal seed presence, reported $4.25 billion in 2024 revenue and an EBITDA margin of 21.26%.

In 2024, Corteva reported $16.9B in net sales, down 2% YoY, but organic growth still rose 1%, with gains in North America, Latin America, and Asia Pacific offsetting EMEA softness. Seed sales grew 1% to $9.5B, with a 3% price increase and 1% volume growth driven by Brazil’s Safrinha corn and U.S. share gains. Segment EBITDA rose 5% to $2.2B, with margin up 90 bps on strong pricing and cost controls. Crop Protection sales fell 5% to $7.4B due to lower prices (–5%) and FX headwinds (–3%), despite 3% volume growth from new products in Latin America. EBITDA dropped 7% to $1.3B, with margin contracting 45 bps under pricing pressure. Corteva delivered $2.3B in operating cash flow and $1.7B in free cash flow (+40% YoY), returning $1.5B to shareholders. Operating EPS was $2.57; GAAP EPS came in at $1.22.

Corteva delivered a solid Q1 2025 performance despite ongoing market pressures. Net sales fell 2% to $4.42B, but organic growth rose 3%, led by strong core execution. Seed sales declined 2% but saw a 3% price boost, especially in North America, offsetting volume drops and FX headwinds. Seed EBITDA rose 13% to $842M on better pricing, lower costs, and higher royalties. Crop Protection sales slipped 2%, with volume up 5% on new product demand, while pricing fell 2%. Still, EBITDA for the segment jumped 22% to $377M, helped by cost efficiencies. North America grew 6%, while other regions declined due to FX and seasonal shifts. EPS was $0.97 GAAP, $1.13 adjusted. Corteva reaffirmed its full-year outlook and plans $1B in buybacks, supported by strong seed demand and steady execution.

Corteva’s sales are highly seasonal, generating ~65% of annual sales in the first half, tied to northern hemisphere planting. The remaining 35% comes later, driven by southern hemisphere demand. Its direct-to-farmer model is weather-sensitive, with delays impacting sales timing and mix. Receivables peak early, while most cash is collected in Q4.

Corteva’s profitability has improved steadily since 2019. ROA rose from 1.42% to 4.27% in 2024, with forecasts reaching 5.65% by 2027. ROE followed a similar trend, increasing from 2.17% to 7.25%, with expectations of 11.07% in 2027. Free cash flow (FCF) margin is expected to return to 2020 levels by 2026 but remain below the 2021 peak of 13.76%. FCF itself is back at $1.5B - matching 2020 - and is projected to reach $2B by 2027, slightly below the $2.1B record in 2021. EPS continues to climb, up from $1.03 in 2023 and projected to hit $3 by 2027 - a 130% increase from 2024 levels. The dividend has also grown from $0.39 in 2019 to $0.66 in 2024, with forecasts of $0.69, $0.75, and $0.78 for 2025, 2026, and 2027.

In terms of valuation, the company trades at a high 43.8x earnings for 2024, above its 5-year average of 37.6x, though this is expected to drop to 32.8x in 2025. For comparison, Bayer trades at -7.43x, BASF at 29.3x, and FMC at 17.9x for 2024. Its P/B ratio stands at 1.67x, above the 6-year average of 1.4x, while its EV/EBITDA is 11.5x - right in line with the historical average.

Corteva holds a strong position in U.S. seed markets, alongside Bayer, accounting for over half of corn, soybean, and cotton seed sales from 2018-2020. While dominant in North America, its market share is lower in China and parts of Europe. Growth opportunities stem from rising global food demand, with the population expected to hit 9.7B by 2050, requiring 50% more agricultural output. Key risks include tighter pesticide regulations - like the EU’s plan to cut chemical use by 50% by 2030 - and rising generic competition as patents on major herbicides expire between 2024-2028.