Corteva, Inc. — Call Transcript 2026

Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to Corteva Agriscience 4Q 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 1 again. Thank you. I would now like to turn the call over to Kim Booth, VP Investor Relations. Please go ahead. Good morning and welcome to Corteva's 4th 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, 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. 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. 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 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. 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 this 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 dis-synergies, 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. 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 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. 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 of margin expansion this year alone and our outlicensing 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 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. Farmers continue to prioritize top-tier seed technologies while managing tighter margins. Given the high corn area in the U.S. 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. 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. As a result of this resolution and the progress we've been making across the broader outlicensing 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 U.S., 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 outlicensing 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. 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 going to stay focused on controlling the controllables. Our intended separation is about sharpening focus, accelerating innovation, and unlocking value that has been earned through performance. We are committed to delivering results like this past year throughout this transition period. With that, I'll turn the call over to David. 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 on 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 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. 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 volume declines 8%, largely due to timing shift of Safrinha sales into third quarter of 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. 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. 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 cost and productivity. Moving on to slide 8 for a summary of the year. Operating EBITDA was up more than $470 million-$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 outlicensing 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. 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. This is driven by our increased EBITDA, lower cash taxes, and working capital discipline. With that, let's go to slide nine 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-$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 deck. Meaningful margin expansion is expected to be driven by organic sales growth, together with benefits from improved net royalty expense and productivity actions. Operating EPS is expected to be in the range of $3.45-$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 deck. We remain committed to returning cash to shareholders as we progress through the separation. We announced the first quarter dividend last week, and we are targeting about $500 million of share repurchases in the first half of 2026. 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 a 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. 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 dis-synergies. 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. 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. 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 actions. 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. 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. 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 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. 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. Yeah. Good morning. Let me start, and then I'm going to have Judd unpack some of the finer details. First, we're very pleased with the agreement. I personally view this as being extremely strategic in terms of what our overall licensing ambitions can be. This is a comprehensive agreement. We've been working with Bayer for quite some time. These things are very scientifically based. 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. 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 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 our farmer customers simply just more choice. So now we're going to have a 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. The second thing that this agreement does is it resolves all the outstanding litigation with Bayer. I think that's very helpful from a clarity and risk management perspective. 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. Yeah. Thanks, Chuck, and thanks, Chris, for the question. I think Chuck captured it all extremely well. 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 from around the world where that's very important to us. Number two, 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 and the ability to line up and provide additional volumes with our licensees. We've got a 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. We also provided Bayer 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. 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, if 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. Your next question comes from the line of Vincent Andrews with Morgan Stanley. Your line is open. 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 the $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. Okay, Vincent. This is David. I'll handle the first part of that question. Perhaps Judd can follow up with the end. 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. 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. Your next question comes from the line of Joel Jackson. Wait. Please go ahead. So maybe I jump in here. Joel, thanks, just a little bit of time to answer 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. 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 to the marketplace. So thanks. Thank you for that. I'll ask my question now. So I want to follow up on that a bit too. I went out to your investor day deck from late 2024. And if I compare 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, for next decade. You're pointing 2 years forward, 5 years forward. But it looks the same through 2030 and more of incremental 2031, 2032, 2033, 2034, 2035. Can you reconcile that, please? 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. 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 going to see is that we've really put our licensing business in a much higher gear than what we could have done in the absence of clarity around this comprehensive agreement. So we'll have to go back and we'll look at the numbers. But the acceleration from a freedom to operate is real. It's pulling our corn, in many cases, many years ahead. 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 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 this was a matter of clearing up the access to the freedom to operate. 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. Your next question comes from the line of Kevin McCarthy with Vertical Research. Your line is open. 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 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 U.S. market and when we might expect commercialization of MDR? Thanks. Yeah. Good morning, Kevin. Sure. So look, 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. We are expecting that, hopefully soon, I'd say by the first half of this year. We are very supportive of what we've seen so far. We think it's science-based. We think that it's going to be quite practical. It's going to 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. And the regulatory framework that is being proposed, I think, will 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'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. And 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 product, so that's right. We have a gene-edited fungal, disease-resistant corn hybrid. We call it a Disease Super Locus. I've seen the test plots. It continues to look fantastic in our test fields. We will be able to bring that to the market, most likely, within a year or two after receiving our overall regulatory approvals. We're pretty excited about that. We'll first bring it to the U.S. market, but then we'll quickly move that technology around the world. Your next question comes from the line of David Begleiter with Deutsche Bank. Your line is open. Thank you. Good morning. Chuck, can you discuss your U.S. order books for the upcoming year and how the pressure on the farmers is manifesting itself into this year's buying activities? Thank you. Sure. Well, why don't we start with seed, and then Robert can talk about CP. Go ahead, Judd. Yes. Thanks for the question. Our order books are 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 going to shift a little bit. There'd be a little bit of weight towards some more soy acres in place of corn. It's all very well manageable and within the guide that we've provided, so. But feel really good about the start to the year, both with our direct Pioneer as well as our Brevant retail brand. Hey, 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 having a strong movement now. Keep in mind, both of these markets this last year grew a few tenths, and that momentum continues as we're moving forward here. Thank you. Your next question comes from the line of Josh Spector with UBS. Your line is open. 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. Thank you, Josh, for the question. We obviously had a very strong end of the year with free cash flow. 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 2025 and a headwind into 2026. When you look at it really, though, the major portion of why we were favorable is our working capital management. Where we ended this particular year was down probably 300-400 basis points lower than typical in our net working capital as a percentage of sales. So I would say the team did a really good job. That's also reflected in the fact that 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%-50%. And you might ask if it's definitely a few points lower than 2025. 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. We will be going into one-time separation cost. We'll likely also want some flexibility because we're committed to have two strong investment-grade balance sheets for the separated companies. We'll 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 comes from the line of Jeff Zekauskas with J.P. Morgan. Your line is open. Thanks very much. A two-part question. First, 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 $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, and Brazil? Where's your share, or what are your revenues? What share do you expect for next year? What kind of revenues do you expect? Okay. Yeah. So 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 in total, we're up about 8%. And certainly, that's not really much timing on sales our 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 was probably a little bit more impactful in Q4, especially against a small revenue number. Is that Judd? Yeah. And Jeff, as far as Enlist E3, Conkesta, Conkesta E3 in Latin America, and particularly in Brazil, we're going to 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 going to 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. Your next question comes from the line of Aleksey Yefremov with KeyBanc Capital Markets. Your line is open. Thank you. Good morning, everyone. Could you discuss in your CP business what share of your business will be off-patent versus patented and new products in 2026, given that there is quite a bit of difference between gross in these two categories? Aleksey, this is Robert. We will remain about flat with what we've been in the past. Keep in mind, we're about two-thirds differentiated on our overall portfolio now, getting 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 few things coming to play, though, that are going to help us out a little bit more. And we're waiting on registration, but we hope to have a visa launch later part of this year, which will augment that differentiated portfolio. 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. Your next question comes from the line of Duffy Fischer with Goldman Sachs. Your line is open. Yeah. Good morning, guys. With 2025 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 soybeans. Is that correct? 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. 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. Your next question comes from the line of Kristen Owen with Oppenheimer. Your line is open. Hi. Good morning. Thank you for the question. I wanted to ask about the 2026 EBITDA guide. 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 4Q into 1Q. 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 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. Okay, Kristen. So we'll have Judd answer that. David, we'll 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. 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 going to show growth in both seed and CP, very much like we were able to do in 2025. And two-thirds of the EBITDA increase year-over-year will accrue to the seed business and about a third to CP. Again, very similar to what we've seen. 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 declines. So not much of a major difference from 2025. We already talked a little bit about net royalties, but that will be a positive. We expect somewhere in the range of $120 million versus $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 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 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 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 flat in 2026. That's a major difference there. Now, we also have an $80 million kind of headwind in tariffs. Those are the major elements. Then when you go to other, if you look at other between the two, they're about the same. When I think about it, price is fairly balanced. Royalties are 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 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 in 2025. Conkesta? 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 also is part of that $120 million that's in the plan that David just mentioned as well, so. Your next question comes from the line of Laurence Alexander with Jefferies. Your line is open. Hi, everyone. This is Carol Jiang for Laurence Alexander. Actually, my question has been asked already, but just a 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 markets like Brazil? Yes. I believe the question is, does this include secondary impacts like impacts from Brazil? Is that the question? Yes. Just the $80 million figure. 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. If it's helpful, almost all of it is CP, and almost all of it is China actives coming into the United States. That's the biggest part. That is by far the biggest part of the tariff impact. Correct. Your next question comes from the line of Arun Viswanathan with RBC. Your line is open. 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 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. 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, 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 in the future. 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 going to far and exceed the original $700 million that we put into our financial framework. 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. Your next question comes from the line of Patrick Cunningham with Citi. Your line is open. Hi. Good morning. As we look at the Latin American CP market for 2026, 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? 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 one. As far as LatAm goes, we're expecting the year as we move into this year. Crops are in the ground now. Looking at 2026, we're going to 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. We expect growth to continue to happen there. Pricing pressures, like I said, will continue. That just has to do with there is more than enough supply in the market nowadays. That'll eventually tighten back up. From a channel standpoint, the channels are about normal right now for this time of year. 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, farmers in Latin America are stressed. Very high interest rates. Commodity prices are 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. Keep in mind, or you will have seen that our barter program this year between crop and seed will be near $1 billion in total for revenue there. 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. Your next question comes from the line of Matthew DeYoe with Bank of America. Your line is open. Morning. You talked openly about in 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 cotton on the back of the Bayer agreement. But how do you prioritize the new markets? Is there anything beyond that? Are you looking at fruits and veggies more broadly? Do you need acquisitions to get to where you think you want to be in 5, 10 years on the seed business from a portfolio perspective? 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 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 going to 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. I think gene editing, the capability, if we can provide differentiated technology 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 going to do that conventionally, but also with gene-edited hybrid wheat. And that market is the largest 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. 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. Your next question comes from the line of Michael Sisson with Wells Fargo. Your line is open. 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. 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. We'll continue to grow. There's going to be some pricing pressures against that. But by and large, we're seeing positive signs around the world. And earlier question this morning about how things look 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, etc., a couple of things happening in Brazil. When you look at the overall market, there is ample supply of product coming in. 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, two-thirds differentiated around the world, for us, those products command about a 10%-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. Your next question comes from the line of Edlain Rodriguez with Mizuho. Your line is open. Okay. Thank you. And good morning, everyone. Quick one. This is a follow-up to the CP question. 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, how well protected are these markets from the generics? 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, 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 going to grow. And there's more area going into production, as we've already said. 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 going to drive up the cost to export outside 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 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 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 going to be quite healthy. I will turn the call back over to Kim Booth, VP Investor Relations, for closing remarks. Great. Well, thanks for joining and for your interest in Corteva. We hope you have a safe and wonderful day. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Speaker 19: Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to Corteva Agriscience 4Q 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 1 again. Thank you. I would now like to turn the call over to Kim Booth, VP Investor Relations. Please go ahead. Thank you for standing by. thank you for standing by My name is Kate, and I will be your conference operator today. my name is kate and i will be your conference operator today At this time, I would like to welcome everyone to Corteva Agriscience 4Q 2025 earnings. at this time i would like to welcome everyone to corteva agriscience 4q 2025 earnings All lines have been placed on mute to prevent any background noise. 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. 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 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 1 again. if you would like to withdraw your question press star 1 again Thank you. thank you I would now like to turn the call over to Kim Booth, VP Investor Relations. i would now like to turn the call over to kim booth vp investor relations Please go ahead. please go ahead

Speaker 15: Good morning and welcome to Corteva's 4th 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, 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 Corteva's 4th quarter 2025 earnings conference call. good morning and welcome to corteva's 4th 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. 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. 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. 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. 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. 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 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. 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. 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. 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. 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. 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. it's now my pleasure to turn the call over to chuck

Speaker 5: 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 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. thanks kim Good morning, everyone, and thanks for joining us. good morning everyone and thanks for joining us I hope your year is off to a great start. 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. 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. 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. 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. 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. 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. 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 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 this 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 dis-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, we'll be announcing the core executive leadership teams for both companies. 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. 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 this separation to the finish line. the second half is where we'll essentially be getting this 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 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. 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. and last but not least we currently expect to hold our investor day events in mid-september As for net dis-synergies, we are still estimating roughly $100 million, $50 million of which is built into this year's guide. as for net dis-synergies 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. 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 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. We'll keep you informed on our progress on a timely basis over the coming months. we'll keep you informed on our progress on a timely basis over the coming months So now let's move to our financial performance. so now let's move to our financial performance Let me start by saying, by all accounts, 2025 was a strong year for Corteva. 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. 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 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. 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. 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 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 of margin expansion this year alone and our outlicensing 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 organic growth in every region as well as share gains in both corn and soybeans. 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. 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. 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 of margin expansion this year alone and our outlicensing 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. with over 300 basis points of margin expansion this year alone and our outlicensing 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 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 in what I'd still describe as less than ideal market conditions. 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. 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. 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. 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. 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. 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 Farmers continue to prioritize top-tier seed technologies while managing tighter margins. Given the high corn area in the U.S. 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. farmers continue to prioritize top-tier seed technologies while managing tighter margins Given the high corn area in the U.S. 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. given the high corn area in the u.s 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. 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. 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? 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. 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 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 in crop protection volumes driven by new products and biologicals, and productivity benefits in both businesses. 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. 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. 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. 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. 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. 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 outlicensing 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 U.S., 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 outlicensing spectrum, we now expect to achieve royalty neutrality in 2026, which is two years ahead of our most recent expectations. as a result of this resolution and the progress we've been making across the broader outlicensing 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. 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. 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 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. 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 U.S., a space in which we do not currently participate. finally this resolution includes a new licensing arrangement which allows us to expand our addressable market by entering the cotton licensing market in the u.s 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 outlicensing 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. 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 going to stay focused on controlling the controllables. Leveraging our strong 2025 free cash flow, we committed to a payment of $610 million, which was largely completed last month. 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 outlicensing and branded sales. 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 outlicensing and branded sales In summary, we consider this resolution to be a win for our long-term strategic objectives. 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. 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 Getting back to 2026, let me wrap up by saying what I say to our employees. getting back to 2026 let me wrap up by saying what i say to our employees We are one team until we're not. 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 going to stay focused on controlling the controllables. 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, accelerating innovation, and unlocking value that has been earned through performance. We are committed to delivering results like this past year throughout this transition period. With that, I'll turn the call over to David. Our intended separation is about sharpening focus, accelerating innovation, and unlocking value that has been earned through performance. our intended separation is about sharpening focus accelerating innovation and unlocking value that has been earned through performance We are committed to delivering results like this past year throughout this transition period. we are committed to delivering results like this past year throughout this transition period With that, I'll turn the call over to David. with that i'll turn the call over to david

Speaker 7: 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 on 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 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. 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. 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 on halves, I'll briefly touch on the quarter. while it's more meaningful to look at our business on 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. 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 2024 was a record quarter for Corteva, and this year was the second highest fourth quarter on record for us as a public company. while it's worth noting 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 Organic sales for the quarter were down 4% compared to prior year. organic sales for the quarter were down 4% compared to prior year Crop protection saw volume and price declines of 2% and 1% respectively. 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. price declines were largely due to competitive pricing dynamics in latin america and in line with expectations 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 volume declines 8%, largely due to timing shift of Safrinha sales into third quarter of 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. Crop protection saw volume growth of 1% offset by price declines of 2%, largely driven by competitive pricing in Latin America. 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. 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 volume declines 8%, largely due to timing shift of Safrinha sales into third quarter of 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. seed had pricing gains of 3% versus prior year evidencing our price-for-value strategy with volume declines 8% largely due to timing shift of safrinha sales into third quarter of 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. 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. organic sales were up 2% 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. 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. 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 cost and productivity. Seed had price, mix, and volume gains of 3% and 2% respectively versus prior year. 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. 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%. 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 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. 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. notably new products saw strong demand and biologicals delivered double-digit volume gains compared to prior year Operating EBITDA was up 14% over prior year. 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 cost and productivity. operating ebitda margins of over 22% was up about 215 basis points driven by organic sales growth coupled with significant benefits from lower input cost and productivity Moving on to slide 8 for a summary of the year. Operating EBITDA was up more than $470 million-$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 outlicensing 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. 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. Moving on to slide 8 for a summary of the year. moving on to slide 8 for a summary of the year Operating EBITDA was up more than $470 million- $3.85 billion. operating ebitda was up more than $470 million- $3.85 billion Price and mix, volume gains, and cost benefits more than offset currency headwinds. 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. 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 outlicensing income in North American corn and lower royalty expense in soybeans. this improvement was driven by increased outlicensing 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. we finished the year with a net royalty expense position of around $120 million 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. 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. 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. 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. This is driven by our increased EBITDA, lower cash taxes, and working capital discipline. With that, let's go to slide nine 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-$4.2 billion, or approximately 7% improvement over prior year at the midpoint. As expected, currency was $217 million headwind on EBITDA, driven by the Brazilian real, Canadian dollar, and Turkish lira. 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. 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. 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. in addition free cash flow has improved by about $1.2 billion from prior year to $2.9 billion This is driven by our increased EBITDA, lower cash taxes, and working capital discipline. this is driven by our increased ebitda lower cash taxes and working capital discipline With that, let's go to slide nine and transition to the updated outlook for 2026 and the key metrics we are tracking. with that let's go to slide nine 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-$4.2 billion, or approximately 7% improvement over prior year 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 2026 operating ebitda is expected to be in the range of $4 billion-$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 deck. Meaningful margin expansion is expected to be driven by organic sales growth, together with benefits from improved net royalty expense and productivity actions. Operating EPS is expected to be in the range of $3.45-$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 deck. We remain committed to returning cash to shareholders as we progress through the separation. This would put us at the low end of the 2027 EBITDA framework we outlined in our last investor deck. this would put us at the low end of the 2027 ebitda framework we outlined in our last investor deck Meaningful margin expansion is expected to be driven by organic sales growth, together with benefits from improved net royalty expense and productivity actions. meaningful margin expansion is expected to be driven by organic sales growth together with benefits from improved net royalty expense and productivity actions Operating EPS is expected to be in the range of $3.45-$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. operating eps is expected to be in the range of $3.45-$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. 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 deck. absent these we would be in line with our long-term target we communicated at our 2024 investor deck We remain committed to returning cash to shareholders as we progress through the separation. we remain committed to returning cash to shareholders as we progress through the separation We announced the first quarter dividend last week, and we are targeting about $500 million of share repurchases in the first half of 2026. 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 a 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. We announced the first quarter 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 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. 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. total company pricing is expected to be slightly up with pricing gains in seed partially offset by declines in crop protection While we expect a crop protection market to grow, we expect prices to be down low single digits for the year. while we expect a 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. 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. 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 dis-synergies. 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. 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. 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 $120 million improvement in net royalty expense, driven by the continued ramp-up of Conkesta E3 soybeans and PowerCore Enlist corn licensing. 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. 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. 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 dis-synergies. keep in mind this includes approximately $50 million of net dis-synergies We are expecting a currency tailwind versus 2025. we are expecting a currency tailwind versus 2025 This is largely driven by the Brazilian real, euro, and Canadian dollar. 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. 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. 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. Together, this translates to approximately 7% operating EBITDA growth at the midpoint and about 50 basis points of margin expansion. 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. 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. 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. 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. 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. 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. 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 actions. With that, let me turn it back to Kim. Tighter operational discipline and greater year-end cash collections improved cash conversion. 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. 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. 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. 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 actions. 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. with that let me turn it back to kim

Speaker 15: 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. Thanks, David. thanks david Now let's move on to your questions. 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. 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 please provide the q&a instructions

Speaker 19: 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, in order to ask a question, please press star, then the number one on your telephone keypad. 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 request that you limit yourself to one question We will pause for just a moment to compile the Q&A roster. 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 first question comes from the line of chris parkinson with wolfe research Your line is open. your line is open

Speaker 4: 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 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. 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. Great. great Thank you so much. thank you so much Chuck, could you just kind of help us break down slide 27 a little bit more with the Bayer litigation? chuck could you just kind of help us break down slide 27 a little bit more with the bayer litigation It seems like 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. it seems like 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 I'd love to hear if it actually affects the acceleration of E3 or Conkesta in terms of the next-gen stuff. 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. 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? 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. thank you

Speaker 5: Yeah. Good morning. Let me start, and then I'm going to have Judd unpack some of the finer details. First, we're very pleased with the agreement. I personally view this as being extremely strategic in terms of what our overall licensing ambitions can be. This is a comprehensive agreement. We've been working with Bayer for quite some time. These things are very scientifically based. 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. Yeah. yeah Good morning. good morning Let me start, and then I'm going to have Judd unpack some of the finer details. let me start and then i'm going to have judd unpack some of the finer details First, we're very pleased with the agreement. first we're very pleased with the agreement I personally view this as being extremely strategic in terms of what our overall licensing ambitions can be. i personally view this as being extremely strategic in terms of what our overall licensing ambitions can be This is a comprehensive agreement. this is a comprehensive agreement We've been working with Bayer for quite some time. we've been working with bayer for quite some time These things are very scientifically based. these things are very scientifically based There's a lot of legal precedent here for us to work through. 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. 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. the first is we now have freedom to operate and an increased access to the licensing market 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 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 our farmer customers simply just more choice. So now we're going to have a 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. The second thing that this agreement does is it resolves all the outstanding litigation with Bayer. 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. 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 going to enter the cotton licensing market, another big opportunity for Corteva. 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 our farmer customers simply just more choice. but i'd say more importantly this is great for farmers and for agriculture in general because it's going to give our farmer customers simply just more choice So now we're going to have a strong licensing portfolio for soybeans, for corn, and for cotton. so now we're going to have a 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. 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 The second thing that this agreement does is it resolves all the outstanding litigation with Bayer. the second thing that this agreement does is it resolves all the outstanding litigation with bayer I think that's very helpful from a clarity and risk management perspective. 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. I think that's very helpful from a clarity and risk management perspective. i think that's very helpful from a clarity and risk management perspective That's what this agreement is intended to do. that's what this agreement is intended to do Like I said, I'm very pleased with the agreement. like i said i'm very pleased with the agreement Judd, you want to just talk about some of the finer details. judd you want to just talk about some of the finer details

Speaker 13: Yeah. Thanks, Chuck, and thanks, Chris, for the question. I think Chuck captured it all extremely well. 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 from around the world where that's very important to us. Number two, 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 and the ability to line up and provide additional volumes with our licensees. We've got a 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. We also provided Bayer license for Enlist Cotton. Yeah. yeah Thanks, Chuck, and thanks, Chris, for the question. thanks chuck and thanks chris for the question I think Chuck captured it all extremely well. i think chuck captured it all extremely well We're still needing to bring product through the R&D pipeline, but maybe let me touch on it. 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 from around the world where that's very important to us. one we've got freedom to operate in canola in specific markets from around the world where that's very important to us Number two, 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 and the ability to line up and provide additional volumes with our licensees. number two 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 and the ability to line up and provide additional volumes with our licensees We've got a tremendous amount of demand building with licensees today. we've got a 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. number three we get to bring our next proprietary third-gen above-ground product 2 years forward into the marketplace We also provided Bayer license for Enlist Cotton. we also provided bayer 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. 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, if 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. 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. 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. 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. 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 And it just puts us in a really great spot. 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, if we work closely with them going forward. it's a great investment for all of our constituents whether that be farmers whether that be investors whether that be our licensees if 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. 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. so thanks

Speaker 19: 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 next question comes from the line of vincent andrews with morgan stanley Your line is open. your line is open

Speaker 22: 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 the $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. Thank you, and good morning, everyone. thank you and good morning everyone Some more clarification on the Bayer agreement. 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 the $610, you will no longer expense. firstly it sounds like there's some existing licensing expense that was going through the income statement that with the payment of the $610 you will no longer expense So number one, is that true? 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 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. 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? 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. thanks

Speaker 7: Okay, Vincent. This is David. I'll handle the first part of that question. Perhaps Judd can follow up with the end. 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. 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. okay vincent This is David. this is david I'll handle the first part of that question. i'll handle the first part of that question Perhaps Judd can follow up with the end. perhaps judd can follow up with the end In our current guide, we have $120 million of net royalty benefit in 2026. 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. a portion of that is the fact that there were some bayer royalties that we will not be paying now in 2026 and 2027 That's what accelerated us to a net-neutral position in 2026, which is two years ahead. 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. 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. and that gets more into the freedom to operate and more on the offensive on the licensing income piece

Speaker 19: Your next question comes from the line of Joel Jackson. Your next question comes from the line of Joel Jackson. your next question comes from the line of joel jackson

Speaker 13: Wait. Wait. wait

Speaker 19: Please go ahead. Please go ahead. please go ahead

Speaker 13: So maybe I jump in here. Joel, thanks, just a little bit of time to answer 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. 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 to the marketplace. So thanks. So maybe I jump in here. so maybe i jump in here Joel, thanks, just a little bit of time to answer the second piece of Vincent's questions on access to HT4. joel thanks just a little bit of time to answer the second piece of vincent's questions on access to ht4 Does that come royalty-free? does that come royalty-free No, it doesn't 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. 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 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 to the marketplace. 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 to the marketplace So thanks. so thanks

Speaker 11: Thank you for that. I'll ask my question now. So I want to follow up on that a bit too. I went out to your investor day deck from late 2024. And if I compare 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, for next decade. You're pointing 2 years forward, 5 years forward. But it looks the same through 2030 and more of incremental 2031, 2032, 2033, 2034, 2035. Can you reconcile that, please? Thank you for that. thank you for that I'll ask my question now. i'll ask my question now So I want to follow up on that a bit too. so i want to follow up on that a bit too I went out to your investor day deck from late 2024. i went out to your investor day deck from late 2024 And if I compare 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 if i compare 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. 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, for next decade. i'm just trying to reconcile that with statements that you're pulling forward things to this decade for next decade You're pointing 2 years forward, 5 years forward. you're pointing 2 years forward 5 years forward But it looks the same through 2030 and more of incremental 2031, 2032, 2033, 2034, 2035. but it looks the same through 2030 and more of incremental 2031 2032 2033 2034 2035 Can you reconcile that, please? can you reconcile that please

Speaker 5: 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. 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 going to see is that we've really put our licensing business in a much higher gear than what we could have done in the absence of clarity around this comprehensive agreement. So we'll have to go back and we'll look at the numbers. But the acceleration from a freedom to operate is real. 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. 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. the acceleration that this agreement gives us is pretty powerful When we were thinking about our original royalty journey, we were really talking about soybeans and then corn starting in late next decade. 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. 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 going to see is that we've really put our licensing business in a much higher gear than what we could have done in the absence of clarity around this comprehensive agreement. so when you put all that together i think that what you're going to see is that we've really put our licensing business in a much higher gear than what we could have done in the absence of clarity around this comprehensive agreement So we'll have to go back and we'll look at the numbers. so we'll have to go back and we'll look at the numbers But the acceleration from a freedom to operate is real. but the acceleration from a freedom to operate is real It's pulling our corn, in many cases, many years ahead. 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 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 this was a matter of clearing up the access to the freedom to operate. It's pulling our corn, in many cases, many years ahead. it's pulling our corn in many cases many years ahead It's also opening up the door on cotton. it's also opening up the door on cotton I think the other thing is this does not contemplate wheat. 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 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 a huge amount of value creation for our shareholders. so when you start thinking about this strategically as corteva and then soon to be spinco this provides a huge amount of value creation for our shareholders The licensing opportunities continue to grow. the licensing opportunities continue to grow And as Judd mentioned, even today, we have more demand than we have supply. 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. so this was a matter of clearing up the access to the freedom to operate 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. 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. 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

Speaker 19: 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 next question comes from the line of kevin mccarthy with vertical research Your line is open. your line is open

Speaker 14: 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 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 U.S. market and when we might expect commercialization of MDR? Thanks. Yes. yes Thank you and good morning. thank you and good morning Maybe a two-part question on the subject of gene editing. 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. 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? so the first part would be do you expect that to happen in 2026 And what might it mean for Corteva over the medium to long term? and what might it mean for corteva over the medium to long term Then secondly, I think one of your gene-edited products is multi-disease-resistant corn. 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 U.S. market and when we might expect commercialization of MDR? i was wondering if you could just provide an update on that product for the u.s market and when we might expect commercialization of mdr Thanks. thanks

Speaker 5: Yeah. Good morning, Kevin. Sure. So look, 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. We are expecting that, hopefully soon, I'd say by the first half of this year. We are very supportive of what we've seen so far. We think it's science-based. We think that it's going to be quite practical. It's going to 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. Yeah. yeah Good morning, Kevin. good morning kevin Sure. sure So look, 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. so look 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. 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. 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. it still needs to be formally adopted by parliament and the council We are expecting that, hopefully soon, I'd say by the first half of this year. we are expecting that hopefully soon i'd say by the first half of this year We are very supportive of what we've seen so far. we are very supportive of what we've seen so far We think it's science-based. we think it's science-based We think that it's going to be quite practical. we think that it's going to be quite practical It's going to 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. it's going to 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 And the regulatory framework that is being proposed, I think, will 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'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. And 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 product, so that's right. We have a gene-edited fungal, disease-resistant corn hybrid. We call it a Disease Super Locus. And the regulatory framework that is being proposed, I think, will 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. and the regulatory framework that is being proposed i think will 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. now we still need china approval It's probably one of the last remaining significant import markets that we need 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. and we're very hopeful that we'll get that soon If you think about gene editing and 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. if you think about gene editing and 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 And 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. and 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 product, so that's right. now to your second question around our product so that's right We have a gene-edited fungal, disease-resistant corn hybrid. we have a gene-edited fungal disease-resistant corn hybrid We call it a Disease Super Locus. we call it a disease super locus I've seen the test plots. It continues to look fantastic in our test fields. We will be able to bring that to the market, most likely, within a year or two after receiving our overall regulatory approvals. We're pretty excited about that. We'll first bring it to the U.S. market, but then we'll quickly move that technology around the world. I've seen the test plots. i've seen the test plots It continues to look fantastic in our test fields. it continues to look fantastic in our test fields We will be able to bring that to the market, most likely, within a year or two after receiving our overall regulatory approvals. we will be able to bring that to the market most likely within a year or two after receiving our overall regulatory approvals We're pretty excited about that. we're pretty excited about that We'll first bring it to the U.S. market, but then we'll quickly move that technology around the world. we'll first bring it to the u.s market but then we'll quickly move that technology around the world

Speaker 19: 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 Begleiter with Deutsche Bank. your next question comes from the line of david begleiter with deutsche bank Your line is open. your line is open

Speaker 6: Thank you. Good morning. Chuck, can you discuss your U.S. 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. thank you Good morning. good morning Chuck, can you discuss your U.S. order books for the upcoming year and how the pressure on the farmers is manifesting itself into this year's buying activities? chuck can you discuss your u.s 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

Speaker 5: Sure. Well, why don't we start with seed, and then Robert can talk about CP. Go ahead, Judd. Sure. sure Well, why don't we start with seed, and then Robert can talk about CP. well why don't we start with seed and then robert can talk about cp Go ahead, Judd. go ahead judd

Speaker 13: Yes. Thanks for the question. Our order books are 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 going to shift a little bit. There'd be a little bit of weight towards some more soy acres in place of corn. It's all very well manageable and within the guide that we've provided, so. But feel really good about the start to the year, both with our direct Pioneer as well as our Brevant retail brand. Yes. yes Thanks for the question. thanks for the question Our order books are very strong at this point in time. our order books are very strong at this point in time Our prepay that we've collected is on par with prior year. 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. 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. so we feel really good about the position we're in I guess translation may be what's your guess on corn acres. i guess translation may be what's your guess on corn acres I'd say it's February. i'd say it's february There's still snow on the ground. there's still snow on the ground And that corn versus soy mix, it's going to shift a little bit. and that corn versus soy mix it's going to shift a little bit There'd be a little bit of weight towards some more soy acres in place of corn. there'd be a little bit of weight towards some more soy acres in place of corn It's all very well manageable and within the guide that we've provided, so. it's all very well manageable and within the guide that we've provided so But feel really good about the start to the year, both with our direct Pioneer as well as our Brevant retail brand. but feel really good about the start to the year both with our direct pioneer as well as our brevant retail brand

Speaker 21: Hey, 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 having a strong movement now. Keep in mind, both of these markets this last year grew a few tenths, and that momentum continues as we're moving forward here. Thank you. Hey, David. hey david It's Robert for Crop Protection. it's robert for crop protection Very similar story. very similar story Very strong order books across the northern hemisphere. very strong order books across the northern hemisphere Europe is in full swing, and North America is moving. europe is in full swing and north america is moving As we look into January, we're having a strong movement now. as we look into january we're having a strong movement now Keep in mind, both of these markets this last year grew a few tenths, and that momentum continues as we're moving forward here. keep in mind both of these markets this last year grew a few tenths and that momentum continues as we're moving forward here Thank you. thank you

Speaker 19: Your next question comes from the line of Josh Spector with UBS. Your line is open. Your next question comes from the line of Josh Spector with UBS. your next question comes from the line of josh spector with ubs Your line is open. your line is open

Speaker 12: 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. yeah Hi. hi Good morning. good morning I wanted to ask on free cash flow. i wanted to ask on free cash flow Obviously, really strong performance last year. obviously really strong performance last year I mean, how are you thinking about the conversion into 2026? 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? is there something one-off last year that gives back or is this something that you guys build on top of Thanks. thanks

Speaker 7: Yeah. Thank you, Josh, for the question. We obviously had a very strong end of the year with free cash flow. 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 2025 and a headwind into 2026. When you look at it really, though, the major portion of why we were favorable is our working capital management. Where we ended this particular year was down probably 300-400 basis points lower than typical in our net working capital as a percentage of sales. So I would say the team did a really good job. Yeah. yeah Thank you, Josh, for the question. thank you josh for the question We obviously had a very strong end of the year with free cash flow. we obviously had a very strong end of the year with free cash flow Some of that was, as Judd had mentioned, we did have favorable cash-credit mix at the end of the year. 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 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 2025 and a headwind into 2026. so that's probably one element year over year which would be a little bit of a tailwind into 2025 and a headwind into 2026 When you look at it really, though, the major portion of why we were favorable is our working capital management. when you look at it really though the major portion of why we were favorable is our working capital management Where we ended this particular year was down probably 300-400 basis points lower than typical in our net working capital as a percentage of sales. where we ended this particular year was down probably 300-400 basis points lower than typical in our net working capital as a percentage of sales So I would say the team did a really good job. so i would say the team did a really good job That's also reflected in the fact that 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%-50%. And you might ask if it's definitely a few points lower than 2025. 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. That's also reflected in the fact that in seed, we had very strong sales and what have you. that's also reflected in the fact that in seed we had very strong sales and what have you So our inventories are lower than typical. 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 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%-50%. so free cash flow about 45%-50% And you might ask if it's definitely a few points lower than 2025. and you might ask if it's definitely a few points lower than 2025 I would say most of that is because of working capital getting back to normal. 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. 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. 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. 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. We will be going into one-time separation cost. We'll likely also want some flexibility because we're committed to have two strong investment-grade balance sheets for the separated companies. We'll want flexibility to make sure that we're handling that appropriately and that both companies are set up for success in the future. As we get later in the year, we will be looking at separation-type items. as we get later in the year we will be looking at separation-type items We will be going into one-time separation cost. we will be going into one-time separation cost We'll likely also want some flexibility because we're committed to have two strong investment-grade balance sheets for the separated companies. we'll likely also want some flexibility because we're committed to have two strong investment-grade balance sheets for the separated companies We'll want flexibility to make sure that we're handling that appropriately and that both companies are set up for success in the future. we'll want flexibility to make sure that we're handling that appropriately and that both companies are set up for success in the future

Speaker 19: Your next question comes from the line of Jeff Zekauskas with J.P. Morgan. Your line is open. Your next question comes from the line of Jeff Zekauskas with J.P. your next question comes from the line of jeff zekauskas with j.p Morgan. morgan Your line is open. your line is open

Speaker 10: Thanks very much. A two-part question. First, 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 $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, and Brazil? Where's your share, or what are your revenues? What share do you expect for next year? What kind of revenues do you expect? Thanks very much. thanks very much A two-part question. a two-part question First, your overall revenues in the fourth quarter were roughly flat year over year, down a tiny bit. first 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. but your sg&a and r&d really jumped SG&A went from $735 million to $860 million, up about $125 million. sg&a went from $735 million to $860 million up about $125 million R&D was up $50 million. r&d was up $50 million What happened? what happened Why are those numbers so unusually high? why are those numbers so unusually high And then secondly, can you give us an idea of where you stand with Conkesta, soybeans, and Brazil? and then secondly can you give us an idea of where you stand with conkesta soybeans and brazil Where's your share, or what are your revenues? where's your share or what are your revenues What share do you expect for next year? what share do you expect for next year What kind of revenues do you expect? what kind of revenues do you expect

Speaker 7: Okay. Yeah. So 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 in total, we're up about 8%. And certainly, that's not really much timing on sales our 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 was probably a little bit more impactful in Q4, especially against a small revenue number. Is that Judd? Okay. okay Yeah. yeah So I'll handle the first part of the question, and I'm assuming Judd will handle the second part of the question. so 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. so on sg&a r&d as you can see throughout the year we have increased our r&d As a percentage of sales in total, we're up about 8%. as a percentage of sales in total we're up about 8% And certainly, that's not really much timing on sales our fourth quarter. and certainly that's not really much timing on sales our fourth quarter So you've seen that build throughout the year. 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 was probably a little bit more impactful in Q4, especially against a small revenue number. 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 was probably a little bit more impactful in q4 especially against a small revenue number Is that Judd? is that judd

Speaker 13: Yeah. And Jeff, as far as Enlist E3, Conkesta, Conkesta E3 in Latin America, and particularly in Brazil, we're going to 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 going to 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. Yeah. yeah And Jeff, as far as Enlist E3, Conkesta, Conkesta E3 in Latin America, and particularly in Brazil, we're going to finish the year after just getting started in this space and going through our multipliers and licensing model. and jeff as far as enlist e3, conkesta conkesta e3 in latin america and particularly in brazil we're going to 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. 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. we will be completely out of 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 for 2026. and we believe we're going to be in the mid-teens plus for 2026 So a lot of momentum. so a lot of momentum We've advanced a number of new genetic platforms and feel really good about how that transition is going. we've advanced a number of new genetic platforms and feel really good about how that transition is going

Speaker 19: 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 Aleksey Yefremov with KeyBanc Capital Markets. your next question comes from the line of aleksey yefremov with keybanc capital markets Your line is open. your line is open

Speaker 1: Thank you. Good morning, everyone. Could you discuss in your CP business what share of your business will be off-patent versus patented and new products in 2026, given that there is quite a bit of difference between gross in these two categories? Thank you. thank you Good morning, everyone. good morning everyone Could you discuss in your CP business what share of your business will be off-patent versus patented and new products in 2026, given that there is quite a bit of difference between gross in these two categories? could you discuss in your cp business what share of your business will be off-patent versus patented and new products in 2026 given that there is quite a bit of difference between gross in these two categories

Speaker 21: Aleksey, this is Robert. We will remain about flat with what we've been in the past. Keep in mind, we're about two-thirds differentiated on our overall portfolio now, getting 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 few things coming to play, though, that are going to help us out a little bit more. And we're waiting on registration, but we hope to have a visa launch later part of this year, which will augment that differentiated portfolio. Aleksey, this is Robert. aleksey this is robert We will remain about flat with what we've been in the past. we will remain about flat with what we've been in the past Keep in mind, we're about two-thirds differentiated on our overall portfolio now, getting good growth out of our new products and biologicals. keep in mind we're about two-thirds differentiated on our overall portfolio now getting good growth out of our new products and biologicals But we don't have any major shifts coming off-patent. 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. 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. 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 few things coming to play, though, that are going to help us out a little bit more. i would keep in mind that there's a few things coming to play though that are going to help us out a little bit more And we're waiting on registration, but we hope to have a visa launch later part of this year, which will augment that differentiated portfolio. and we're waiting on registration but we hope to have a visa launch later part of this year which will augment that differentiated portfolio 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. Remember, this is a fungicide that attacks Asian soybean rust, and we're expecting big things out of that molecule as we move forward. 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. thank you for the question

Speaker 19: Your next question comes from the line of Duffy Fischer with Goldman Sachs. Your line is open. Your next question comes from the line of Duffy Fischer with Goldman Sachs. your next question comes from the line of duffy fischer with goldman sachs Your line is open. your line is open

Speaker 8: Yeah. Good morning, guys. With 2025 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 soybeans. Is that correct? Yeah. yeah Good morning, guys. good morning guys With 2025 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? with 2025 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 soybeans. and then just i wanted to clarify on the deal with bayer they don't get access to your enlist soybeans Is that correct? is that correct

Speaker 5: 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. Now, in terms of the Bayer agreement, E3 on soy was not part of those discussions at this point in time. Yeah. yeah Thank you, Duffy. thank you duffy So maybe just walk around the world a bit. 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. 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. 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. 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. 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. so we had positive impacts in almost all regions around the world Now, in terms of the Bayer agreement, E3 on soy was not part of those discussions at this point in time. 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. Obviously, we have a number of places that we worked with Veracross, but that was not a part of it. 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. so thanks for that question

Speaker 19: 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 Owen with Oppenheimer. your next question comes from the line of kristen owen with oppenheimer Your line is open. your line is open

Speaker 16: Hi. Good morning. Thank you for the question. I wanted to ask about the 2026 EBITDA guide. 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 4Q into 1Q. 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 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. Hi. hi Good morning. good morning Thank you for the question. thank you for the question I wanted to ask about the 2026 EBITDA guide. i wanted to ask about the 2026 ebitda guide 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 4Q into 1Q. 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 4q into 1q So can you help us sort of frame what the upside case and downside case look like in this bridge? 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. and i do actually have a follow-up on brazil conkesta If I could ask quickly, just 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. if i could ask quickly just 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. thank you

Speaker 5: Okay, Kristen. So we'll have Judd answer that. David, we'll 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. okay kristen So we'll have Judd answer that. so we'll have judd answer that David, we'll take the guide question. david we'll take the guide question But let me just give you my perspective and, I guess, my philosophy. but let me just give you my perspective and i guess my philosophy We're sitting here in February. 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. 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. 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. 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. 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. now we can talk about the ups and downs So go ahead, David. so go ahead david

Speaker 7: 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 going to show growth in both seed and CP, very much like we were able to do in 2025. And two-thirds of the EBITDA increase year-over-year will accrue to the seed business and about a third to CP. Again, very similar to what we've seen. Yeah. yeah Maybe it'd be helpful to just kind of reiterate what we have in the guide, and then we can go from there. 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. 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. 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. so i think all very positive I think the other couple of takeaways, one, we are going to show growth in both seed and CP, very much like we were able to do in 2025. i think the other couple of takeaways one we are going to show growth in both seed and cp very much like we were able to do in 2025 And two-thirds of the EBITDA increase year-over-year will accrue to the seed business and about a third to CP. and two-thirds of the ebitda increase year-over-year will accrue to the seed business and about a third to cp Again, very similar to what we've seen. again very similar to what we've seen 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 declines. So not much of a major difference from 2025. We already talked a little bit about net royalties, but that will be a positive. We expect somewhere in the range of $120 million versus $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 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 2026 as we continue to see growth in new products and biologicals. 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 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. so low single-digit seed increases We have increased royalty income. we have increased royalty income That will be partially offset by the low single-digit CP declines. that will be partially offset by the low single-digit cp declines So not much of a major difference from 2025. so not much of a major difference from 2025 We already talked a little bit about net royalties, but that will be a positive. we already talked a little bit about net royalties but that will be a positive We expect somewhere in the range of $120 million versus $90 million in 2025. we expect somewhere in the range of $120 million versus $90 million in 2025 The volume impact in 2026, right now, we have it in as fairly flat for seed. the volume impact in 2026 right now we have it in as fairly flat for seed Again, that's mainly due to the acreage differences between corn and soy in the US, that shift. again that's mainly due to 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 2026 as we continue to see growth in new products and biologicals. 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. We still have $200 million built in for cost improvements in 2026. In 2025, 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 flat in 2026. That's a major difference there. Now, we also have an $80 million kind of headwind in tariffs. Those are the major elements. Then when you go to other, if you look at other between the two, they're about the same. When I think about it, price is fairly balanced. Royalties are definitely a positive story. Probably the major difference between our bridge in 2026 versus 2025 would be on the cost improvements. 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. we still have $200 million built in for cost improvements in 2026 In 2025, we benefited pretty significantly. in 2025 we benefited pretty significantly About half of our $665 million was really a commodity impact that we do not have included in 2026. 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 flat in 2026. we think that's going to be flat in 2026 That's a major difference there. that's a major difference there Now, we also have an $80 million kind of headwind in tariffs. now we also have an $80 million kind of headwind in tariffs Those are the major elements. those are the major elements Then when you go to other, if you look at other between the two, they're about the same. then when you go to other if you look at other between the two they're about the same When I think about it, price is fairly balanced. when i think about it price is fairly balanced Royalties are definitely a positive story. royalties are 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 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 in 2025. 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. 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 tariffs and include additional cost improvements. and we'll keep an eye on being able to offset 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 in 2025. 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 in 2025

Speaker 13: Conkesta? 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 also is part of that $120 million that's in the plan that David just mentioned as well, so. Conkesta? conkesta Yeah. yeah Maybe just follow up on the Conkesta question. maybe just follow up on the conkesta question So for 2026, overall earnings for seed in Brazil are up significantly. 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. the conkesta transition and the additional share is certainly a big part of it That also is part of that $120 million that's in the plan that David just mentioned as well, so. that also is part of that $120 million that's in the plan that david just mentioned as well so

Speaker 19: Your next question comes from the line of Laurence Alexander with Jefferies. Your line is open. Your next question comes from the line of Laurence Alexander with Jefferies. your next question comes from the line of laurence alexander with jefferies Your line is open. your line is open

Speaker 3: Hi, everyone. This is Carol Jiang for Laurence Alexander. Actually, my question has been asked already, but just a 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 markets like Brazil? Hi, everyone. hi everyone This is Carol Jiang for Laurence Alexander . this is carol jiang for laurence alexander Actually, my question has been asked already, but just a follow-up on the tariff estimation. actually my question has been asked already but just a follow-up on the tariff estimation You estimate $8 million impact from incremental global tariff in 2026. 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 markets like Brazil? does this figure also account for the potential secondary effects such as increased dumping of genetic product in non-tariff markets like brazil

Speaker 7: Yes. I believe the question is, does this include secondary impacts like impacts from Brazil? Is that the question? Yes. yes I believe the question is, does this include secondary impacts like impacts from Brazil? i believe the question is does this include secondary impacts like impacts from brazil Is that the question? is that the question

Speaker 3: Yes. Just the $80 million figure. Yes. yes Just the $80 million figure. just the $80 million figure

Speaker 21: 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. Yeah. 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. 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. so it includes all companies including all countries including brazil

Speaker 5: If it's helpful, almost all of it is CP, and almost all of it is China actives coming into the United States. If it's helpful, almost all of it is CP, and almost all of it is China actives coming into the United States. if it's helpful almost all of it is cp and almost all of it is china actives coming into the united states

Speaker 21: That's the biggest part. That's the biggest part. that's the biggest part

Speaker 5: That is by far the biggest part of the tariff impact. That is by far the biggest part of the tariff impact. that is by far the biggest part of the tariff impact

Speaker 21: Correct. Correct. correct

Speaker 19: Your next question comes from the line of Arun Viswanathan with RBC. Your line is open. Your next question comes from the line of Arun Viswanathan with RBC. your next question comes from the line of arun viswanathan with rbc Your line is open. your line is open

Speaker 2: 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 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. great Thanks for taking my question. thanks for taking my question Excuse me. excuse me Most of my questions have been answered as well, but I guess I'll just ask on the $200 million productivity benefits. 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. you guys have obviously been very successful the last few years bringing up your margins and executing on that productivity Is that kind of maybe you could break that out between seed and CP if that's relevant. is that 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? 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? 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. 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. thanks

Speaker 7: 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, 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 in the future. Yeah. yeah Sure. sure No problem. no problem So yeah, the $200 is split somewhat equally between the two different businesses. 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. 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. 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, year-over-year improvements. in crop protection typically your normal productivity 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 in the future. i would say beyond that though there are further elements in crop when they look at footprint and different optimization opportunities in the future

Speaker 5: 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 going to far and exceed the original $700 million that we put into our financial framework. 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. 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. 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. 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 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 going to far and exceed the original $700 million that we put into our financial framework. 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 going to far and exceed the original $700 million that we put into our financial framework 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. 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. and it is more or less split between seed and cp

Speaker 19: 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 Cunningham with Citi. your next question comes from the line of patrick cunningham with citi Your line is open. your line is open

Speaker 20: Hi. Good morning. As we look at the Latin American CP market for 2026, 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? Have you seen any further impact or improvement of credit and liquidity concerns for farmers in the region? Hi. hi Good morning. good morning As we look at the Latin American CP market for 2026, 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? as we look at the latin american cp market for 2026 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 Have you seen any further impact or improvement of credit and liquidity concerns for farmers in the region? have you seen any further impact or improvement of credit and liquidity concerns for farmers in the region

Speaker 21: 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. Crops are in the ground now. Looking at 2026, we're going to 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. We expect growth to continue to happen there. Pricing pressures, like I said, will continue. That just has to do with there is more than enough supply in the market nowadays. That'll eventually tighten back up. From a channel standpoint, the channels are about normal right now for this time of year. We need to let the year play out for the rest of the season to see where we land there. Patrick, this is Robert. patrick this is robert I'll take that one. i'll take that one As far as LatAm goes, we're expecting the year as we move into this year. as far as latam goes we're expecting the year as we move into this year Crops are in the ground now. crops are in the ground now Looking at 2026, we're going to continue to see pricing pressures in LatAm. looking at 2026 we're going to continue to see pricing pressures in latam We expect volume growth to take place there, much like this year. 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. more land's going in and the pest and resistance pressures continue to build We expect growth to continue to happen there. we expect growth to continue to happen there Pricing pressures, like I said, will continue. pricing pressures like i said will continue That just has to do with there is more than enough supply in the market nowadays. that just has to do with there is more than enough supply in the market nowadays That'll eventually tighten back up. that'll eventually tighten back up From a channel standpoint, the channels are about normal right now for this time of year. from a channel standpoint the channels are about normal right now for this time of year We need to let the year play out for the rest of the season to see where we land there. 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, farmers in Latin America are stressed. Very high interest rates. Commodity prices are 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. Keep in mind, or you will have seen that our barter program this year between crop and seed will be near $1 billion in total for revenue there. 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. From a farmer standpoint, to touch on that just a little bit, farmers in Latin America are stressed. from a farmer standpoint to touch on that just a little bit farmers in latin america are stressed Very high interest rates. very high interest rates Commodity prices are a little bit suppressed, but they're still making money, by and large. commodity prices are a little bit suppressed but they're still making money by and large Cash flow is tight for them. cash flow is tight for them And we've been working through a lot of those things with them. and we've been working through a lot of those things with them Keep in mind, or you will have seen that our barter program this year between crop and seed will be near $1 billion in total for revenue there. keep in mind or you will have seen that our barter program this year between crop and seed will be near $1 billion in total for revenue there And so we're doing things to help mitigate risk and to help manage that with farmers. 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. 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

Speaker 19: 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 of Matthew DeYoe with Bank of America. your next question comes from the line of matthew deyoe with bank of america Your line is open. your line is open

Speaker 17: Morning. You talked openly about in 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 cotton on the back of the Bayer agreement. But how do you prioritize the new markets? Is there anything beyond that? Are you looking at fruits and veggies more broadly? Do you need acquisitions to get to where you think you want to be in 5, 10 years on the seed business from a portfolio perspective? Morning. morning You talked openly about in kind of the initial days of the announcement that seed would be looking to expand beyond corn and soy. you talked openly about in 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 i know you have the hybrid wheat coming out next year which is obviously exciting And you're talking a little bit about cotton on the back of the Bayer agreement. and you're talking a little bit about cotton on the back of the bayer agreement But how do you prioritize the new markets? but how do you prioritize the new markets Is there anything beyond that? is there anything beyond that Are you looking at fruits and veggies more broadly? are you looking at fruits and veggies more broadly Do you need acquisitions to get to where you think you want to be in 5, 10 years on the seed business from a portfolio perspective? do you need acquisitions to get to where you think you want to be in 5 10 years on the seed business from a portfolio perspective

Speaker 5: 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 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 going to 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. Yeah. yeah Yeah, Matt. 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. 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. 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. but look i think from a seed perspective we have a lot of opportunity in our core businesses And Judd just articulated a little bit here on this call. and judd just articulated a little bit here on this call So we think there's room to grow in corn and soybeans. 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 going to be just a great growth platform for us going forward. and with the agreement now that we have in place the seed licensing business i think is going to 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. i think then we've talked about cotton so that's another new market for us And we've already covered gene editing. and we've already covered gene editing I think gene editing, the capability, if we can provide differentiated technology 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 going to do that conventionally, but also with gene-edited hybrid wheat. And that market is the largest 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. So I think we've got a lot to keep our plates full right now. I think gene editing, the capability, if we can provide differentiated technology from our innovation in gene editing, we will consider what I would consider to be tangential or adjacent crops. i think gene editing the capability if we can provide differentiated technology 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. 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 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 going to do that conventionally, but also with gene-edited hybrid wheat. and then entering the hybrid wheat market we're going to do that conventionally but also with gene-edited hybrid wheat And that market is the largest crop market on the planet. 20% of our calories are still consumed there as humanity. and that market is the largest 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 got lots of new technology coming in with our proprietary traits as well So I think we've got a lot to keep our plates full right now. 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. 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. 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

Speaker 19: Your next question comes from the line of Michael Sisson with Wells Fargo. Your line is open. Your next question comes from the line of Michael Sisson with Wells Fargo. your next question comes from the line of michael sisson with wells fargo Your line is open. your line is open

Speaker 18: 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. Hey. hey Good morning. good morning Just a quick follow-up on crop protection. just a quick follow-up on crop protection Looks like you expect the markets to rebound in 2026 versus 2025. looks like you expect the markets to rebound in 2026 versus 2025 Anything in particular that gives you confidence there? 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. 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. and then just a quick follow-up on brazil pricing pressure and crop protection Is it stabilized, getting worse, getting better? is it stabilized getting worse getting better Just curious on that. just curious on that Thanks. thanks

Speaker 21: 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. We'll continue to grow. There's going to be some pricing pressures against that. But by and large, we're seeing positive signs around the world. And earlier question this morning about how things look 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, etc., a couple of things happening in Brazil. When you look at the overall market, there is ample supply of product coming in. And so that is a lot of more generics and formulated generics, but nevertheless, a lot of supply. Yeah, Michael. yeah michael This is Robert again. this is robert again Let's talk about CP markets for 2026. let's talk about cp markets for 2026 We expect to see modest growth in the overall CP market around the world this year. we expect to see modest growth in the overall cp market around the world this year It'll be volume. it'll be volume We'll continue to grow. we'll continue to grow There's going to be some pricing pressures against that. there's going to be some pricing pressures against that But by and large, we're seeing positive signs around the world. but by and large we're seeing positive signs around the world And earlier question this morning about how things look in Northern Hemisphere on the order books. and earlier question this morning about how things look in northern hemisphere on the order books And like I said, they're strong. and like i said they're strong So the year started really well from that standpoint. so the year started really well from that standpoint Specific to Brazil, when you think about pricing there and when do they stabilize, etc., a couple of things happening in Brazil. specific to brazil when you think about pricing there and when do they stabilize etc a couple of things happening in brazil When you look at the overall market, there is ample supply of product coming in. when you look at the overall market there is ample supply of product coming in And so that is a lot of more generics and formulated generics, but nevertheless, a lot of supply. 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, two-thirds differentiated around the world, for us, those products command about a 10%-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. But when you think about the differentiated products, we're still seeing a need for that technology, and farmers are demanding that. 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%-15% higher margin than the rest of the portfolio. and keep in mind for us again two-thirds differentiated around the world for us those products command about a 10%-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. 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. 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

Speaker 19: Your next question comes from the line of Edlain Rodriguez with Mizuho. Your line is open. Your next question comes from the line of Edlain Rodriguez with Mizuho. your next question comes from the line of edlain rodriguez with mizuho Your line is open. your line is open

Speaker 9: Okay. Thank you. And good morning, everyone. Quick one. This is a follow-up to the CP question. 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, how well protected are these markets from the generics? Okay. okay Thank you. thank you And good morning, everyone. and good morning everyone Quick one. quick one This is a follow-up to the CP question. this is a follow-up to the cp question 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? 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, how well protected are these markets from the generics? again how well protected are these markets from the generics

Speaker 5: 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, 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 going to grow. And there's more area going into production, as we've already said. 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. Yeah. yeah Edlain, look, let me take a stab at that one. edlain look let me take a stab at that one I think, look, the businesses, the markets are just fundamentally different. i think look the businesses the markets are just fundamentally different They're structurally built differently. they're structurally built differently The way the farmers buy, their channel partners, the infrastructure that's in each of the countries or the regions are different. the way the 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? 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. 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. and they're in all the markets I think that what's unique is what's happening in Brazil right now. i think that what's unique is what's happening in brazil right now And look, Brazil's going to grow. and look brazil's going to grow And there's more area going into production, as we've already said. and there's more area going into production as we've already said But I think what we're seeing is that the channel is being a bit more responsible. 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. it looks to us like the channel is functioning still relatively normally There's a lot of product currently going to ground. 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 going to drive up the cost to export outside 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 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. But it is a well-supplied market because of the way that they allow their imports. 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. 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. and it looks to us like china may be taking early steps to control some of their exports They just repealed their export VAT. they just repealed their export vat So that's going to drive up the cost to export outside from China into Brazil. so that's going to drive up the cost to export outside from china into brazil That, we think, is constructive for the market overall. that we think is constructive for the market overall We're starting to see M&A, actually, from some of the generics in China. we're starting to see m&a actually from some of the generics in china I think that will be constructive overall. 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 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. so 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 three years 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 going to be quite healthy. 2025 was better than 2024, right? 2025 was better than 2024 right It was a flat market driven by volume. 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 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. but the rest of the markets i think are going to be quite healthy

Speaker 19: 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, VP Investor Relations, for closing remarks. i will turn the call back over to kim booth vp investor relations for closing remarks

Speaker 15: Great. Well, thanks for joining and for your interest in Corteva. We hope you have a safe and wonderful day. Great. great Well, thanks for joining and for your interest in Corteva. well thanks for joining and for your interest in corteva We hope you have a safe and wonderful day. we hope you have a safe and wonderful day

Speaker 19: 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. ladies and gentlemen that concludes today's call Thank you all for joining. thank you all for joining You may now disconnect. you may now disconnect