Global agricultural company Corteva has lowered its full-year 2026 financial outlook after weaker-than-expected market conditions in Brazil and persistent pricing pressure dragged down its third-quarter performance.

 

The company reported a 9% decline in third-quarter net sales to $1.59 billion, compared with $1.74 billion in the same period last year. Organic sales also fell 9%, while adjusted operating EBITDA dropped 17% to $222 million.

 

Corteva's third-quarter loss from continuing operations after taxes stood at $54 million, against income of $60 million a year earlier. Earnings per share fell to a loss of $0.08, compared with earnings of $0.21 in the corresponding quarter of 2025.

 

The sharpest setback came from Latin America, where organic sales plunged 31%, largely reflecting deteriorating market conditions in Brazil. Sales volumes in the region declined 24%, as elevated channel inventories, tight farmer liquidity and high interest rates delayed purchasing decisions. Prices fell another 7% amid intensifying competition for mature agricultural chemical products.

 

The company also faced pricing pressure in North America, particularly in the US acetochlor market, although the impact was broadly in line with expectations.

 

Despite the overall downturn, Corteva reported stronger performances across other major markets, supported by demand for differentiated products and new product launches.

 

North America recorded 7% organic sales growth, with volumes rising 19% as new product demand and early purchasing activity offset pricing pressure. Europe, Middle East and Africa (EMEA) delivered 14% organic sales growth, while Asia Pacific posted a 5% increase, driven by a 7% rise in volumes.

 

Corteva CEO Luke Kissam said the company had delivered on operational priorities but acknowledged that conditions in Brazil had deteriorated more sharply than anticipated.

 

"We executed well against the things we can control. New products performed strongly, productivity delivered, and we generated broad-based organic growth outside Latin America. The pressure remains concentrated. Acetochlor pricing in the U.S. was consistent with our expectations, but Brazil was materially weaker than anticipated. While those conditions are reflected in our updated outlook, our strategy has not changed. Innovation, productivity and disciplined execution remain the foundation for sustainable long-term growth."

 

Reflecting the weaker Brazilian market, Corteva revised its full-year 2026 guidance, reducing its adjusted pro forma operating EBITDA forecast to between $1.1 billion and $1.125 billion.

 

Adjusted pro forma operating earnings per share are now expected to range between $0.76 and $0.80.

 

The company had previously faced expectations of a stronger operating environment, but farmer financing constraints, elevated borrowing costs, competitive pricing and cautious purchasing patterns have created additional headwinds, particularly in Brazil.

 

Corteva said demand for its differentiated new products remained strong and regional performance outside Latin America continued to demonstrate resilience.

 

"While those conditions are reflected in our updated outlook, our strategy has not changed," the company said through its CEO, reaffirming its focus on innovation, productivity and operational execution.

 

For the first nine months of 2026, Corteva reported net sales of $5.36 billion, down 1% from $5.42 billion a year earlier. Organic sales declined 4%.

 

Income from continuing operations after taxes fell 68% to $112 million, while earnings per share dropped to $0.16 from $0.50 in the corresponding period last year.

 

However, adjusted pro forma operating EBITDA remained broadly flat at $943 million, compared with $937 million in the first nine months of 2025. Adjusted operating earnings per share rose 49% to $0.76.

 

The company's adjusted operating EBITDA margin expanded by 30 basis points to 17.6%, highlighting the contribution of cost discipline and operational improvements despite weaker sales.

 

Meanwhile, the company's board of directors authorised its first common dividend following the spin-off, marking a new development in its capital-return strategy.

 

Corteva said agricultural fundamentals continued to support demand for technologies that help farmers improve productivity and protect crop yields. However, challenging crop protection market conditions, particularly in Brazil, have tempered near-term growth expectations.

 

The company is banking on its innovation pipeline, differentiated crop protection solutions and productivity initiatives to navigate market volatility and strengthen long-term performance.

 

Corteva is a global agricultural company specialising in crop protection, seed-applied technologies, biologicals and other solutions designed to help farmers protect crops against weeds, insects, diseases and weather-related stresses.