Seed and crop protection company Corteva started its fourth quarter off with a bang, announcing the split of its two business units into separate public companies, following unanimous approval from the ag giant’s board of directors on the deal and media reports teeing up the spin-off.
The current Corteva will become New Corteva and SpinCo, which will house the company’s crop protection and seed businesses, respectively, the company shared in a press release. The split is expected to be finalized in the back half of 2026, and details on the companies’ board structure and management teams are forthcoming.
“We appreciate that our customers want and need choice across their input decisions, including seed and [crop protections]. Over the mid- and long-term, the best way ─ maybe, I can even say the only way for this company ─ to preserve and expand that choice and keep putting innovative, effective, sustainable solutions into the hands of farmers around the world is to give both businesses the freedom to operate without having to look out for the other,” Charles Magro, CEO and director of Corteva, said on an investors’ call on Oct. 1.
Inside New Corteva & SpinCo
New Corteva’s “success will be built upon an optimized supply chain, new level of operational excellence, and the ability to invest in the next generation of sustainable differentiated innovation, including biologicals and other nature-based products,” Margo said on the call. Additionally, the new ag company will take a disciplined approach to mergers and acquisitions to expand its market position and grow in specific geographies, the company shared.
This year, Corteva made several investments in the biological space, including investing in Latin American biological start-ups Puna Bio and Symbiomics through its venture arm Catalyst.
On the other hand, SpinCo will be the home of Corteva’s Pioneer brand of seeds and focus on growth in biofuels, hybrid wheat, and more, the company stated. SpinCo’s growth “will be predicated upon sustained investment in advanced genetics,” Margo said on the call.
Split-apalooza? Why agrifood companies are splitting up, spinning out
Corteva's split comes as a number of agrifood players, largely in the consumer packaged goods space, announce similar spin-offs or divestitures. Most notably, food giant Kraft Heinz announced that the company will split in two, nearly a decade after joining together.
“The seed and crop protection markets have evolved, and as a result, we see the opportunities ahead for both companies diverging – this is the right time to act to stay ahead of the market. This separation will allow both businesses to maximize long-term value creation by focusing on their own priorities. As such, we see this separation as the logical next step in their growth trajectory,” Margo elaborated in a press release.
What does this mean for the rest of Corteva’s 2025?
Despite the spin-off, Corteva’s full-year guidance for 2025 “remains intact,” and the company is committed to its 2027 financial framework, Margo said.
In its Q2 earnings reports, Corteva raised its full-year guidance in response to strong earnings and positive tax legislation, as AgTechNavigator previously reported. Corteva expects net sales in the $17.6-17.98 billion range with an operating EBITDA in the $3.75-3.85 billion range.
Corteva rolled out its 2027 framework last November, which included goals of generating $1 billion in incremental net sales through growth platforms and delivering approximately $1 billion from productivity gains and cost deflation, the company shared in a press release.
Investors appeared unconvinced on the split, as Corteva’s stock dipped sharply on the news, closing down roughly 9% on the day of the announcement.
