Corteva stock falls as weak business in Brazil leads to lowered annual profit forecast

Reuters, November 12 - On Thursday, Corteva (CTVA.N) shares fell to their lowest level in a year after the US agrochemical company sharply cut its annual profit forecast due to ongoing weakness in the Brazilian market.

The company now expects full-year adjusted earnings per share to be between $0.76 and $0.80, down from its previous forecast of $3.60 to $3.80.

• Corteva mainly produces crop protection solutions such as herbicides and fungicides. Its share price plunged 22.8% to $9.36, on track for its largest single-day drop ever.

• Corteva said operating conditions in the crop protection market have become more challenging, especially in Brazil.

• The company stated that tightening liquidity for farmers, rising financing costs, spot purchasing, and greater pricing pressure have led to market performance in Brazil being much weaker than previously expected.

• Earlier this year, Corteva completed the spin-off of its seed and genetics business into an independent listed company, Vylor (VYLR.N).

• "Corteva is off to a rough start in its first set of standalone earnings," said Oppenheimer analyst Kristen Owen.

• Morningstar analyst Seth Goldstein noted that following the spin-off, "Given the cyclical nature of the crop protection market, we expect greater volatility in Corteva's performance."

• Corteva expects its adjusted EBITDA in 2026 to be between $1.1 billion and $1.125 billion.

• According to data compiled by London Stock Exchange Group (LSEG), analysts on average forecast the company’s EBITDA for that year at $1.82 billion and adjusted earnings per share at $1.63.

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