Corteva's Q3 revenue misses on price declines; forecasts FY26 EBITDA, EPS below expectations

Overview

• Crop protection firm's Q3 revenue fell 9% yr/yr, missing analyst expectations

• Adjusted EPS for Q3 was $0.06, down 57% yr/yr

• Company updated full-year outlook, citing weaker market in Brazil

• Shares fell 4.7% in after-hours trading

Outlook

• Corteva expects FY26 adjusted pro forma operating EBITDA of $1.1 bln to $1.125 bln, vs analysts' estimate of $1.82 bln

• Sees FY26 adjusted pro forma operating EPS of $0.76 to $0.80, vs analysts' estimate of $1.64

• Corteva says market conditions in Brazil are weaker than previously anticipated

Result Drivers

• NEW PRODUCT SALES - Strong demand for new and differentiated products contributed to growth in North America, EMEA, and Asia Pacific, according to the company

• BRAZIL MARKET WEAKNESS - Challenging market dynamics in Brazil, including elevated channel inventory, delayed purchasing, and high interest rates, led to a 31% decline in Latin America organic sales, per company

• PRICING PRESSURE - Price declined 7% in Q3, driven by competitive pressure on molecules late in their lifecycle in Brazil and U.S. acetochlor, according to the company

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the agricultural chemicals peer group is "buy"

• Wall Street's median 12-month price target for Corteva, Inc. is $17.00, about 39.7% above its November 10 closing price of $12.17

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 3 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)