Corteva Cuts 2026 Outlook After EPS Falls 57% to $0.06
Key Facts
Corteva reported results on November 11 for the third quarter and the nine months ended September 30, and cut its fiscal 2026 outlook after results came under pressure from a downturn in the Brazilian market. Pro forma organic sales were $1.58 billion, down 9% from the year-earlier period. Pro forma adjusted operating EBITDA fell 17% to $222 million, while adjusted operating EPS dropped 57% to $0.06. CEO Luke Kissam said Brazil was "materially weaker than expected," while stressing that the company's strategy had not changed. The weakness showed up in a lower full-year outlook, despite organic sales growth in other regions.
On a reported basis, Corteva posted quarterly net sales of $1.59 billion and an after-tax loss from continuing operations of $54 million, or $0.08 per share. The company had reported income from continuing operations of $60 million in the third quarter of 2025. On operating metrics, total sales volume fell 2% and prices declined 7% year over year. The company linked pricing pressure to competition from molecules in the late stages of their life cycles in Brazil and from acetochlor in the United States. Weak volumes in Latin America and pricing pressure in more than one market therefore weighed on quarterly results.
Latin America was the main source of the decline, with organic sales down 31% in the quarter, as volume fell 24% and prices declined 7%. Corteva attributed the volume decline to higher inventories at distribution channels and delayed purchases. It said farmers' liquidity constraints and higher interest rates contributed to demand being deferred. Competition from mature molecules also pressured prices in the region. Kissam described Brazil's performance as materially weaker than expected, while the company said developments there had not changed its strategy.
By contrast, organic sales in North America rose 7%, with volume growth of 19%. The company attributed the performance to growth in new products and early demand, which offset the impact of unfavorable pricing related to acetochlor in the United States. In Europe, the Middle East and Africa, organic sales rose 14%, driven by demand for new and differentiated products, while prices were stable. In Asia-Pacific, organic sales increased 5%, supported by volume growth of 7%, despite a 2% decline in prices due to competition. Kissam said new products "performed strongly" and productivity "delivered," pointing to organic sales growth outside Latin America.
Corteva cut its 2026 outlook to pro forma adjusted operating EBITDA of between $1.1 billion and $1.125 billion, and adjusted operating EPS of between $0.76 and $0.80. The company said the revision reflected market conditions, led by deterioration in the Brazilian market. In the second quarter, it had announced an earlier range of $4.1 billion to $4.3 billion for operating EBITDA and $3.60 to $3.80 for EPS, but that outlook was issued before the seed business separation and therefore relates mainly to a different basis than post-separation Corteva. The seed business separation was completed on October 1, 2026, leaving Corteva to continue as a crop protection specialist. For the nine months ended September 30, the company reported organic sales of $5.20 billion, down 4% year over year, adjusted operating EBITDA of $943 million, which was flat, and adjusted operating EPS of $0.76, up 49%.
In after-hours trading following the results announcement, Corteva shares fell 6.4% to $11.36, according to Investing.com. The stock had closed at $12.14 on November 11, according to EL7 data. The company is scheduled to hold its third-quarter earnings call on November 12 at 10:30 a.m. Eastern time to discuss results and guidance. The call follows the cut to the annual outlook and the company's attribution of the revision to market conditions, particularly in Brazil. Management is expected to provide details on the results and updated outlook range during the call.