Corteva Earnings: Seeds Pricing Power Should Drive Profit Growth

Corteva's first-quarter earnings showed the pricing power of the company's seed portfolio, which underpins our wide moat rating. During the quarter, seed segment operating EBITDA was up 15% versus the prior-year quarter as higher prices were partially offset by lower volumes and higher unit production costs. Companywide operating EBITDA was down 16% year on year, however, due to a decline in the crop protection segment. Following crop protection's 18% decline in 2023 due to inventory destocking, this effect continued in key markets such as Brazil, weighing on first-quarter results.