Corteva: Meeting with CEO: Seeds Valuation is Growing

研报英文原文证据摘录

Corteva: Meeting with CEO: Seeds Valuation is Growing

22 June 2026

Corteva

2) The crop protection market has gotten better as higher energy and oil prices

have increased the costs of low-priced competitors in China and India. This has

resulted in some selling price increases and reduced exports from these

countries. However there remain large inventories of crop protection product in

Brazil.

3) Corteva is “very comfortable” with its ’26 EBITDA guidance of $4.0-$4.2B

(cons: $4.18). In Q2, tailwinds versus initial expectations include FX and tariffs

while headwinds include fuel and supply chain cost. We are comfortable with our

Q2 EBITDA estimate of $2.2B, up 2% (cons: $2.22B)

4) The separation of the seed (Vylor) and crop protection (New Corteva)

businesses remain on schedule and on budget. The next milestone is the public

filing of the Form 10. This is expected to occur by June 30. This will be followed

by an investor day event on September 15 in New York where both companies

will lay out their multi-year financial and strategic plans. And finally, in (very) early

Q4, Vylor will be separated from New Corteva. Dissynergies from the separation,

which were initially estimated at $100MM, are now expected to total no more than

$50MM.

5) Both companies will rely more on M&A than they have in the past.

6) The economics of last week’s licensing agreement with FMC for rimisoxafen,

an innovative herbicide technology, are attractive. Today, it costs $400MM and

takes up to 12 years to develop a new crop protection molecule. In lieu of this,

Corteva is making an initial prepurchase payment of $200MM to FMC for

rimisoxafen active ingredient which it will use to develop its own premix

formulations for the corn and soybean markets in North and South America.