Corteva expects low-single-digit percentage net sales growth through 2027, the U.S. agrichemicals firm said on Tuesday, banking on its exclusive seeds and crop chemical products.
The top U.S. supplier of corn and soy seeds has invested heavily to improve the yields of its products as it bets on the long-term demand for food, feedstock, and biofuels.
The company forecast 2027 revenue to be in the range of $18.2 billion to $18.8 billion (C$25.5 billion to 26.3 billion) , compared with its expected 2024 revenue of about $17.1 billion (C$23.9 billion).
Corteva also predicted $1 billion (C$1.4 billion) in cost declines through 2027, largely due to a fall in commodity prices.
Read Also
Farmers, traders ‘flying blind’ as U.S. shutdown blocks key crop data
U.S. data vital to global grain and soybean trading has gone dark during the country’s federal government shutdown, leaving commodity traders and farmers without crop production estimates, export sales data and market reports during the peak of the autumn harvest.
The company projected flat to low-single-digit percentage growth until 2027 compared to 2024 levels for its crop protection segment.
The insecticide maker’s profit has been dented since last year by a slump in demand for insecticides and fungicides as farmers have slowed purchases in the face of lower income and rising costs.
“I think we have taken a conservative view of the market, but we expect it to return to sort of normal growth rates in 2026,” CEO Chuck Magro said at the company’s investor day.
The Indianapolis-based company earlier this month cut its annual sales forecast and reported a larger-than-expected loss for the third quarter due to weak demand and lower prices.
Corteva also said it expects to return about $4.5 billion (C$6.3 billion) to shareholders between 2025 and 2027, after announcing a new buyback program of $3 billion (C$4.2 billion) on Tuesday.
The company’s existing $2 billion ($2.8 billion) share repurchase plan, announced in 2022, had about $750 million (C$1.05 billion) remaining as of Sept. 30.
Shares of the company were up 1.5 per cent in afternoon trade.
