Corteva Inc (CTVA) 2025 Q2 法說會逐字稿

Hello, and welcome to Corteva Agriscience Second Quarter 2025 Earnings Call. Please note that this call is being recorded. (Operator Instructions) I would now like to hand the call over to Kim Booth, Vice President of Investor Relations. You may now go ahead please.

您好，歡迎參加 Corteva Agriscience 2025 年第二季財報電話會議。請注意，此通話正在錄音。（操作員指示）現在我想將電話交給投資者關係副總裁 Kim Booth。現在您可以繼續了。

Good morning, and welcome to Corteva's second quarter and first half 2025 earnings conference call. Our prepared remarks today will be led by Chuck Magro, Chief Executive Officer; and David Johnson, Executive Vice President and Chief Financial Officer. Additionally, Judd O'Connor, Executive Vice President, Seed Business Unit; and Robert King, Executive Vice President, Crop Protection business unit, will join the Q&A session. We have prepared presentation slides to supplement our remarks during this call, which are posted on the Investor Relations section of the Corteva website and through the link to our webcast.

早安，歡迎參加 Corteva 2025 年第二季和上半年收益電話會議。我們今天的準備演講將由執行長 Chuck Magro 和執行副總裁兼財務長 David Johnson 主持。此外，種子業務部執行副總裁 Judd O'Connor 和作物保護業務部執行副總裁 Robert King 也將參加問答環節。我們準備了演示幻燈片來補充我們在本次電話會議中的發言，這些幻燈片發佈在 Corteva 網站的投資者關係部分以及透過我們的網路廣播連結發布。

During this call, we will make forward-looking statements which are our expectations about the future. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties. Our actual results could materially differ from these statements due to these risks and uncertainties, including, but not limited to, those discussed on this call and in the Risk Factors section of our reports filed with the SEC. We do not undertake any duty to update any forward-looking statements.

在本次電話會議中，我們將做出前瞻性陳述，即我們對未來的預期。這些聲明是基於目前的預期和假設，受各種風險和不確定性的影響。由於這些風險和不確定性，我們的實際結果可能與這些聲明有重大差異，包括但不限於本次電話會議和我們向美國證券交易委員會提交的報告中的風險因素部分所討論的風險和不確定性。我們不承擔更新任何前瞻性陳述的義務。

Please note, in today's presentation, we'll be making references to certain non-GAAP financial measures. Reconciliations of the non- GAAP measures can be found in our earnings press release and related schedule, along with our supplemental financial summary slide deck, available on our Investor Relations website.

請注意，在今天的演示中，我們將參考某些非 GAAP 財務指標。非公認會計準則 (non-GAAP) 指標的對帳可以在我們的收益新聞稿和相關時間表中找到，同時還可以在我們的投資者關係網站上找到補充財務摘要幻燈片。

It's now my pleasure to turn the call over to Chuck.

現在我很高興將電話轉給查克。

Thanks, Kim. Good morning, everyone, and thanks for joining us. We plan to update you today on our second quarter and first half performance, share our expectations for the second half of this year and provide some early thoughts on 2026. In the second quarter, Corteva delivered top and bottom line growth and more than 200 basis points of operating EBITDA margin expansion. For both the quarter and the half, we saw net improvement in price, volume and cost versus the same period last year.

謝謝，金。大家早安，感謝大家的收看。我們計劃今天向您通報我們第二季和上半年的業績，分享我們對今年下半年的預期，並對 2026 年提出一些初步想法。第二季度，科迪華實現了營收和利潤的成長，營業 EBITDA 利潤率擴大了 200 個基點以上。無論是本季或上半年，我們都看到價格、銷售和成本與去年同期相比都有淨改善。

This should tell you two things. First, there is strong demand for our proprietary technology as our growth platforms continue to deliver. And second, our operational excellence initiatives are creating value. In fact, we exceeded our 2025 net cost improvement target in the first half alone, allowing us to raise our full year target to $450 million from $400 million. Seed continued its impressive performance in the first half of the year with 280 basis points of operating EBITDA margin expansion and pricing gains in most regions. The volume improvement we delivered in North America made a significant contribution to Seed's first half results.

這應該告訴你兩件事。首先，隨著我們的成長平台不斷發揮作用，市場對我們的專有技術的需求強勁。其次，我們的卓越營運措施正在創造價值。事實上，光是上半年，我們就超額完成了 2025 年淨成本改善目標，從而將全年目標從 4 億美元提高到了 4.5 億美元。Seed 在上半年繼續保持著令人印象深刻的表現，營業 EBITDA 利潤率擴大了 280 個基點，並且大多數地區的價格都有所上漲。我們在北美實現的銷售成長為 Seed 上半年的業績做出了重大貢獻。

We also feel confident that we delivered healthy branded share gains in both corn and soybeans. This is a testament to the Pioneer business model and the strength of our product portfolio. Our outperformance in North America was also visible in our first half out- licensing results, where we achieved a $70 million benefit in net royalties versus prior year, exceeding our own expectations of a $65 million net benefit for the full year.

我們也相信，我們在玉米和大豆領域的品牌份額都取得了健康的成長。這證明了先鋒的商業模式和我們產品組合的實力。我們在北美的優異表現也體現在我們上半年的授權結果上，與去年相比，我們的淨特許權使用費收益增加了 7000 萬美元，超過了我們對全年 6500 萬美元淨收益的預期。

Turning to our Crop Protection business. As the results made clear, our technology remains critical to farmer productivity. Our global operations are also becoming more efficient, which contributed to over 350 basis points of operating EBITDA margin expansion for the half. Productivity and deflation benefits as well as volume gains drove the largest improvements in Crop Protection's solid first half performance.

轉向我們的作物保護業務。研究結果清楚地表明，我們的技術對於農民的生產力仍然至關重要。我們的全球營運也變得更加高效，這使得上半年的營運 EBITDA 利潤率擴大了 350 個基點以上。生產力和通貨緊縮效益以及銷售成長是作物保護公司上半年業績穩健成長的最大推動力。

The volume improvement was most significant in Brazil, where we saw strong applications on additional planted area as well as expansion in our direct sales channel. Although the industry is expected to be about flattish overall for the year, our CP business continues to navigate a competitive market, and we expect low to mid-single-digit pricing headwinds in the second half of the year. However, it's worth noting that this is now our fifth consecutive quarter of CP volume gains with double-digit volume growth in

巴西的銷售成長最為顯著，我們看到全國種植面積增加的申請量強勁，直銷管道也擴大了。儘管預計今年行業總體將保持平穩，但我們的 CP 業務將繼續在競爭激烈的市場中前行，我們預計下半年定價將面臨低至中等個位數的阻力。然而，值得注意的是，這已是我們的 CP 銷售連續第五個季度增長，其中

the second quarter. So we are confident, we have the right channel strategy and that pricing remains a key constraint to the industry getting back to its normal low single-digit organic growth rate.

第二季。因此，我們有信心，我們擁有正確的通路策略，定價仍然是產業恢復正常的低個位數有機成長率的關鍵限制因素。

For Corteva as a whole, we remain on track for double-digit bottom line growth and meaningful margin improvement. In fact, as you saw from our announcement, as a result of our record first half performance and derisked expectations of modest growth in the second half, we are raising the midpoint of our full year operating EBITDA guidance to $3.8 billion, a $100 million improvement versus what we guided last quarter. We're also improving a favorable update on free cash flow expectations and forecasting a full year conversion rate of about 50%. David will go into more detail on all of this in a moment, including our latest views on tariffs, and how these updates fall within our 2027 financial framework.

對於科迪華整體而言，我們仍有望實現兩位數的獲利成長和利潤率的大幅提升。事實上，正如您從我們的公告中看到的那樣，由於我們上半年創紀錄的業績和對下半年溫和增長的低風險預期，我們將全年運營 EBITDA 指引的中點提高至 38 億美元，比上一季的指引高出 1 億美元。我們也對自由現金流預期進行了有利的更新，並預測全年轉換率約為 50%。David 稍後將更詳細地介紹所有這些內容，包括我們對關稅的最新看法，以及這些更新如何融入我們的 2027 年財務框架。

Turning now to the market outlook. Overall, ag fundamentals remain mixed. Demand for grains and oilseeds continues to grow as farmers prioritize top tier seed and crop protection technologies to maximize and protect their yields. However, overall crop prices and margins have moderated. The US mix shift from soybeans to corn played out as expected, and corn futures reflect the fact that crop condition ratings have been running above five-year averages. Time will tell, but the market is certainly expecting a record harvest in the US

現在來談談市場前景。整體而言，農業基本面依然喜憂參半。隨著農民優先考慮頂級種子和作物保護技術以最大限度地提高和保護產量，對穀物和油籽的需求持續成長。然而，農作物整體價格和利潤率已經下降。美國作物組合從大豆轉向玉米的趨勢正如預期，玉米期貨反映出作物狀況評級一直高於五年平均值的事實。時間會告訴我們答案，但市場肯定期待美國出現創紀錄的收成

We all know that the technology keeps getting better, and farmers know how to produce more every year. But what is just as important is that global production continues to keep pace with record setting global consumption. So much so that stocks-to-use ratio for corn is expected to remain below historical averages, even considering this year's big crop. We're getting close to harvest here in North America, and opening up global markets to allow for trade of these critically needed crops would help American farmers continue to feed the world.

我們都知道科技不斷進步，農民也知道如何每年生產更多的糧食。但同樣重要的是，全球產量持續與創紀錄的全球消費保持同步。即使考慮到今年的大豐收，玉米的庫存使用比預計仍將低於歷史平均值。北美即將迎來收穫季，開放全球市場以允許這些急需的農作物進行貿易將有助於美國農民繼續養活世界人民。

Regarding ag policy, we're seeing positive signals on the biofuels front. Corn ethanol in Brazil now accounts for 20% of the country's total ethanol production. And in the US, the EPA's 2026 renewable fuel standard proposal should spur additional demand for soybeans. On gene editing, we remain optimistic that policy proposals in the EU for this critically important technology were passed by the end of the year. We're also encouraged by the fact that the new tax bill includes several changes that provide additional support for farmers in this very important industry.

關於農業政策，我們在生物燃料方面看到了正面的訊號。目前巴西玉米乙醇佔該國乙醇總產量的20%。在美國，美國環保署的 2026 年再生燃料標準提案應該會刺激對大豆的額外需求。關於基因編輯，我們仍然樂觀地認為，歐盟針對這項至關重要的技術的政策提案將在今年年底前獲得通過。我們也對新稅法中的幾項變化感到鼓舞，這些變化為這個非常重要的行業的農民提供了額外的支持。

Finally, a few comments on 2026. It's still early, and we need to see how the full year plays out, but we remain constructive on our views for growth next year. And we are on a path that would keep us well within our 2027 framework, which was set last November. We feel good about what we can control, investing and executing on our growth platforms as well as delivering meaningful royalty productivity and cost benefits on a year-over-year basis.

最後，對 2026 年發表一些評論。現在還為時過早，我們需要觀察全年的走勢，但我們對明年的成長前景仍然持建設性的看法。我們正走在一條能夠讓我們很好地遵守去年 11 月制定的 2027 年框架的道路。我們對自己能夠控制的事情感到滿意，在我們的成長平台上進行投資和執行，並逐年提供有意義的特許權使用費生產力和成本效益。

We'll also provide more detail on our views of 2026 on our third quarter earnings call in November. In the meantime, we will continue to deliver top-tier technology that gives farmers a competitive edge in achieving higher yields and greater sustainability in every acre they plant.

我們也將在 11 月的第三季財報電話會議上更詳細地闡述我們對 2026 年的看法。同時，我們將繼續提供一流的技術，使農民在每一英畝土地上都能獲得更高的產量和更大的永續性，從而獲得競爭優勢。

With that, let me turn it over to David for more detailed insights into our financial results and outlook.

接下來，請容許我把問題交給大衛，讓他更詳細地了解我們的財務表現和前景。

Thanks, Chuck, and welcome, everyone, to the call. Let's start on slide 6, which provides the financial results for the quarter and the half. Sales and operating EBITDA for both the quarter and the half were up versus prior year and better than our latest estimate, driven by a strong finish to North American season and continued execution on controlling the controllables.

謝謝查克，歡迎大家參加電話會議。讓我們從第 6 張投影片開始，它提供了本季和上半年的財務結果。本季和上半年的銷售額和營業 EBITDA 均比去年同期有所上升，並且好於我們的最新估計，這得益於北美銷售季的強勁結束以及對可控因素的持續控制。

Briefly touching on the quarter. Organic sales were up 7% compared to prior year, with gains in both Seed and Crop Protection. Pricing for quarter was up 1%, with gains in Seed partially offset by continued pressure in Crop Protection. Second quarter volumes were up 6%, with Seed gains in nearly every region and double-digit Crop Protection volume growth led by Latin America. Top line growth and meaningful cost improvement translated into operating EBITDA growth of 13% in the quarter and 215 basis points of margin expansion compared to prior year.

簡要介紹一下本季的情況。有機產品的銷售額比上年增長了 7%，種子和作物保護產品的銷售額均有所增長。本季價格上漲 1%，但種子價格的上漲被作物保護價格的持續壓力部分抵消。第二季銷量成長 6%，幾乎每個地區的種子銷量都有所成長，其中拉丁美洲的作物保護銷量實現了兩位數的成長。營業收入的成長和成本的顯著改善使得本季營業 EBITDA 成長了 13%，利潤率較上年同期增加了 215 個基點。

Focusing on the half, organic sales were up 5% over last year, again, with growth in both Seed and Crop Protection. A continuation of the price for value strategy, along with increased corn acres and market share gains in North America, drove Seed price and volume gains of 3% and 2%, respectively. Crop Protection price was down 2% in the half as expected, driven by competitive market dynamics, mostly in Brazil. Crop Protection volume was up 8%, with gains in nearly every region.

重點關注上半年，有機產品銷售額較去年同期成長 5%，種子和作物保護產品均成長。持續推行價格換價值策略，加上北美玉米種植面積增加和市佔率提升，推動種子價格和銷售量分別上漲 3% 和 2%。作物保護產品價格上半年下跌 2%，符合預期，主要受巴西市場競爭激烈的影響。作物保護產品銷售成長 8%，幾乎每個地區都有成長。

Notably, new products and biologicals delivered double-digit volume gains compared to prior year. Operating EBITDA was up 14% over prior year. Operating EBITDA margin of nearly 31% was up about 300 basis points, driven by organic sales growth, coupled with significant benefits from lower input cost and productivity.

值得注意的是，新產品和生物製品的銷售量與去年相比實現了兩位數的成長。營業息稅折舊攤提前利潤 (EBITDA) 較上年增長 14%。營業 EBITDA 利潤率接近 31%，上漲約 300 個基點，這得益於有機銷售額的成長，以及投入成本和生產力降低帶來的顯著效益。

Moving on to slide 7 for a summary of the first half operating EBITDA performance. Operating EBITDA was up more than $400 million to just over $3.35 billion. Price and mix, volume gains and cost benefits more than offset currency headwinds. Seed continues to make progress on its path to royalty neutrality with about $70 million in reduced net royalty expense. This improvement was driven by increased out-licensing income in North American corn and lower royalty expense in soybeans.

請翻到投影片 7，查看上半年營運 EBITDA 績效的摘要。營業 EBITDA 成長逾 4 億美元，達到略高於 33.5 億美元。價格和產品組合、銷售成長和成本效益足以抵消貨幣逆風的影響。Seed 在特許權使用費中立的道路上繼續取得進展，淨特許權使用費支出減少了約 7000 萬美元。這一改善是由於北美玉米對外許可收入的增加和大豆特許權使用費的降低所致。

Seed and Crop Protection combined to deliver more than $400 million in productivity and cost benefits, including lower seed commodity costs, raw material deflation and continued productivity action. In the first half, SG&A was up compared to prior year, driven by higher commissions, compensation expense and bad debt. This increased investment in R&D aligns with our target and is on track to reach 8% of sales for the full year.

種子和作物保護合計帶來了超過 4 億美元的生產力和成本效益，包括降低種子商品成本、原材料通貨緊縮和持續的生產力行動。上半年，由於佣金、薪資費用及壞帳增加，銷售、一般及行政費用較上年同期上升。增加研發投入符合我們的目標，可望達到全年銷售額的 8%。

As expected, currency was a roughly $150 million headwind on EBITDA, driven by the Turkish Lira and Canadian Dollar. Both Seed and Crop Protection had an impressive first half performance and delivered double-digit EBITDA growth and meaningful margin expansion over prior year.

正如預期的那樣，受土耳其里拉和加拿大元的影響，貨幣對 EBITDA 造成了約 1.5 億美元的不利影響。種子和作物保護業務上半年均取得了令人印象深刻的業績，EBITDA 實現了兩位數成長，利潤率也比去年同期大幅提升。

With that, let's go to slide 8 and transition to the updated outlook for the year. Our updated 2025 guidance reflects the strength of our first half execution and continued confidence in delivering the second half. We now expect operating EBITDA in the range of $3.75 billion to $3.85 billion, representing 13% growth at the midpoint. This increase is driven by broad-based organic sales momentum and incremental cost improvement benefits.

接下來，讓我們轉到投影片 8，了解今年的最新展望。我們更新後的 2025 年指引反映了我們上半年執行的強勁勢頭以及對下半年實現目標的持續信心。我們現在預計營業 EBITDA 在 37.5 億美元至 38.5 億美元之間，中間值成長 13%。這一增長是由廣泛的有機銷售勢頭和增量成本改善效益所推動的。

While the majority of cost actions were realized in the first half, we anticipate continued gains in the back half. As a result, we now expect operating EBITDA margin expansion of approximately 150 basis points, reaching the upper end of our prior range. We're also raising our operating EPS guidance to $3 to $3.20 per share, up 21% at the midpoint versus last year. This reflects stronger EBITDA performance and lower-than-expected net interest expense.

雖然大部分成本削減措施是在上半年實現的，但我們預計下半年將繼續成長。因此，我們現在預計營業 EBITDA 利潤率將擴大約 150 個基點，達到我們先前預期範圍的上限。我們也將每股營業利潤預期上調至每股 3 美元至 3.20 美元，與去年同期相比中位數上漲 21%。這反映了更強勁的 EBITDA 業績和低於預期的淨利息支出。

Finally, we are increasing our free cash flow guidance to approximately $1.9 billion with a cash conversion rate of about 50%. This improvement is primarily driven by earnings growth and lower cash taxes from recent legislation. We're keeping an eye on a few items as we head into the second half. Specifically, farmer economics and liquidity, as they influence amount of prepaid deposits we receive in the fourth quarter.

最後，我們將自由現金流預期提高至約 19 億美元，現金轉換率約為 50%。這種改善主要得益於近期立法帶來的獲利成長和現金稅的降低。在進入下半年之際，我們正在密切關註一些事項。具體來說，農民經濟和流動性會影響我們在第四季收到的預付存款金額。

Let's turn to slide 9 to walk through the key drivers of our first half performance in the setup for the second half of the year. In the first half, we delivered strong execution across both Seed and Crop Protection. North America's Seed performance was particularly strong, supported by increased corn acreage, market share gains and favorable weather.

讓我們翻到第 9 張投影片，了解我們上半年業績表現的關鍵驅動因素，並為下半年做好準備。上半年，我們在種子和作物保護領域表現強勁。受玉米種植面積增加、市場佔有率增加和有利天氣的影響，北美種子表現特別強勁。

We saw low single-digit price gains in Seed, while Crop Protection pricing was down modestly, reflecting ongoing competitive dynamics. We captured meaningful benefits from controllable levers, namely productivity actions and raw material cost savings, which more than offset SG&A increases tied to commissions, compensation and bad debt. Currency remained a headwind, primarily driven by Turkish Lira and Canadian Dollar.

我們看到種子價格出現了個位數的低幅上漲，而作物保護價格則小幅下降，反映了持續的競爭態勢。我們從可控的槓桿中獲得了有意義的收益，即生產力行動和原材料成本節約，這足以抵消與佣金、薪酬和壞帳相關的銷售、一般和行政費用的增加。貨幣仍然是一個阻力，主要受土耳其里拉和加幣的影響。

Looking ahead to the second half, our assumptions remain consistent with what we shared in May. We expect corn acreage to increase in both Brazil and Argentina, supporting volume growth in both businesses. Volume growth in Crop Protection is expected to remain strong, particularly in new products and biologicals. On pricing, we anticipate low single-digit gains in Seed and low to mid-single- digit declines in Crop Protection. That said, the magnitude of cost and productivity benefits will moderate in the second half as we lap the deflationary impacts we saw in the second half of 2024 for Crop Protection. Finally, we expect a currency headwind from the Brazilian Real due to hedge impacts.

展望下半年，我們的假設與五月的假設一致。我們預計巴西和阿根廷的玉米種植面積都將增加，從而支持兩國的產量成長。作物保護業務的銷售成長預計將保持強勁，尤其是新產品和生物製品。在定價方面，我們預期種子價格將出現低個位數成長，作物保護價格將出現低至中個位數下降。話雖如此，隨著我們逐漸消化 2024 年下半年農作物保護領域所遭受的通貨緊縮影響，成本和生產力效益的幅度將在下半年有所緩和。最後，我們預計，由於對沖影響，巴西雷亞爾將面臨貨幣逆風。

Our first half/second half operating EBITDA split is expected to be aligned with our historical average. As a reminder, we anticipate a typical seasonal earnings pattern with a third quarter operating EBITDA loss at least as large as what we saw last year, and all second half earnings delivered in the fourth quarter. This is after dialing in an expectation that Crop Protection second half EBITDA will be down high single digits due to an exceptionally strong second half in the prior year. Overall, we still remain on track for mid-single- digit growth in the second half.

我們上半年/下半年的營業 EBITDA 分割預計將與我們的歷史平均值保持一致。提醒一下，我們預計會出現典型的季節性盈利模式，第三季度的營業 EBITDA 虧損至少與去年一樣大，並且所有下半年的盈利都將在第四季度實現。這是因為，由於去年下半年表現異常強勁，預計作物保護業務下半年的 EBITDA 將下降高個位數。整體而言，下半年我們仍有望實現中等個位數成長。

With that, let's go to slide 10 and summarize the key takeaways. First, while we still have half of the year left to go, we delivered a strong first half, ahead of expectations. Organic sales growth was driven by our leading North America corn portfolio and broad- based volume growth for Crop Protection. We delivered over $400 million in cost savings from lower Seed and Crop Protection raw material costs, along with productivity actions. The combination of organic sales growth in both business units, $70 million in net royalty improvement and enhancements in our product mix contributed to about 300 basis point margin expansion over the prior year.

接下來，讓我們翻到第 10 張投影片，總結一下重點。首先，雖然今年還有半年的時間，但我們上半年的業績表現強勁，超出了預期。有機銷售額的成長得益於我們領先的北美玉米產品組合和作物保護業務的廣泛銷售成長。我們透過降低種子和作物保護原材料成本以及提高生產力的措施節省了超過 4 億美元的成本。兩個業務部門的有機銷售額增長、7000 萬美元的淨特許權使用費改善以及產品組合的增強，共同促成了利潤率較上年增長約 300 個基點。

Given our strong first half performance and continued confidence in the second half, we've raised our full year 2025 outlook across all key financial metrics. And finally, we remain on track for $1 billion of share repurchases in 2025. We also announced a nearly 6% increase in the annual dividend, our fifth consecutive annual increase, consistent with our dividend growth strategy. Combined, this translates to roughly $1.5 billion of cash returned to shareholders during 2025, a testament to the strength of our balance sheet and cash flow outlook.

鑑於我們上半年的強勁表現和對下半年的持續信心，我們提高了所有關鍵財務指標的 2025 年全年展望。最後，我們仍計劃在 2025 年回購 10 億美元的股票。我們也宣布年度股息增加近 6%，這是我們連續第五年增加股息，這與我們的股息成長策略一致。總計起來，這相當於 2025 年向股東返還約 15 億美元的現金，證明了我們的資產負債表和現金流前景的強勁。

With that, let me turn it back to Kim.

說完這些，讓我把話題轉回金身上。

Thanks, David. Now let's move on to your questions. I would like to remind you that our cautions on forward-looking statements and non-GAAP measures apply to both our prepared remarks and the following Q&A. Operator, please provide the Q&A instructions.

謝謝，大衛。現在讓我們繼續回答您的問題。我想提醒您，我們對前瞻性陳述和非公認會計準則衡量標準的謹慎既適用於我們準備好的評論，也適用於以下問答。接線員，請提供問答說明。

(Operator Instructions)

（操作員指示）

Vincent Andrews, Morgan Stanley.

摩根士丹利的文森安德魯斯。

Thank you and good morning everyone. Just sort of distilling the prepared comments down, it seems like there are four sort of items for the back half that really factoring into your forecast. And that you have sort of a focal point on -- one would just be the tough CP comp and the negative pricing in Brazil. And obviously, Brazil is a big part of the back half. It seems like -- and I'd like to hear more about the Seed acreage expectations for the back half and how much do you think they're going to be up year-over-year.

謝謝大家，早安。只是將準備好的評論提煉出來，似乎後半部分有四種項目真正影響了您的預測。而你的焦點之一就是艱難的 CP 競爭和巴西的負面定價。顯然，巴西隊在後半段佔據了重要地位。看起來——我想聽聽更多關於下半年種子種植面積的預期，以及您認為它們將比去年同期增長多少。

And then on a cash flow perspective, the prepays and whether they come in, and then obviously, what happens with FX. So if you put all that together, is that sort of how you're thinking about the range of outcomes in the back half and whether you're at the low end or the high end and potentially above the high end?

然後從現金流的角度來看，預付款以及它們是否到賬，然後顯然，外匯會發生什麼情況。因此，如果將所有這些放在一起，您是否會這樣考慮後半部分的結果範圍以及您是處於低端還是高端，以及是否可能高於高端？

Yes. This is David. Yes, pretty much, I think you summed it up pretty well. I mean when we look at the year-over-year in the back half -- and I'd just remind everyone that I know you know this, but our back half typically is only 12% or 13% of our entire EBITDA for the year. So this year, we have it kind of lined up very much in line with what we've done in prior years.

是的。這是大衛。是的，基本上，我認為你總結得很好。我的意思是，當我們查看下半年的同比情況時——我只是想提醒大家，我知道你們知道這一點，但我們的下半年通常只佔全年 EBITDA 的 12% 或 13%。因此，今年我們的安排與前幾年的安排基本一致。

When you look at the plus/minus on Crop Protection, they did have a very strong second half last year. So we're lapping that. We're also lapping some of the cost deflation we already saw in the second half of last year. And then we -- as you mentioned, the price declines. And then we also have the FX impact, which is a little bit -- two-third or 70% allocated to CP just given their product flows. And then regarding acreage, I don't know, Judd, if you want to pick up the acreage received?

當你查看作物保護業務的正負表現時，你會發現去年下半年他們的表現確實非常強勁。所以我們正在解決這個問題。我們也正在彌補去年下半年已經出現的成本下降。然後我們——正如您所說，價格下降了。然後我們還有外匯影響，這有一點——考慮到 CP 的產品流量，三分之二或 70% 分配給了 CP。然後關於種植面積，我不知道，賈德，你是否想領取收到的種植面積？

Yes, Vincent, I think it's fair to say we're looking at mid-single-digit acreage increases for summer, which will start going into the ground here in October as well as we move into safrinha, which a big portion of those safrinha orders that will go underground in '26 will be realized here at the end of 2025 from a revenue recognition standpoint when growers take possession.

是的，文森特，我認為可以公平地說，我們正在考慮夏季中等個位數的種植面積增長，這些種植面積將於 10 月份開始進入地下，同時我們將進入 safrinha 種植期，從收入確認的角度來看，2026 年進入地下的 safrinha 訂單中的很大一部分將在 2025 年底種植者接管時實現。

We also see a little bit of a rebound, mid-single digits. We're confident about, maybe a little more in Argentina coming off the down acres that we saw in '24 and the first part of '25. So should be in a strong position acreage-wise and planted area-wise, I should say, hectare-wise and planted area-wise in Latin America.

我們也看到了一點反彈，中等個位數。我們有信心，阿根廷的產量可能會比 1924 年和 1925 年初的下降產量增加。因此，從種植面積和種植面積來看，或從公頃和種植面積來看，在拉丁美洲應該處於強勢地位。

Joel Jackson of BMO

BMO的喬爾傑克遜

Hi, good morning. Thanks for the update. I want to talk about the free cash flow conversion or the free cash flow guidance. I mean, obviously, on a $100 million EBITDA raise, you're upping free cash flow by $300 million, the conversion is better. Talk about what's going on specifically there? And then the second question is, $100 million EBITDA increase here, Chuck, you sort of alluded [to a little bit about] '26. Some of that, can we assume you may have gotten in '26, $100 million boost here? Like maybe just think about how you think about if you borrow on a board, but got a little early advance on some earnings in '26?

嗨，早安。感謝您的更新。我想談談自由現金流轉換或自由現金流指導。我的意思是，顯然，EBITDA 增加 1 億美元，自由現金流就會增加 3 億美元，轉換效果會更好。說說那裡具體發生什麼事了？然後第二個問題是，查克，這裡的 EBITDA 增加了 1 億美元，你有點提到了 26 年。其中的一些，我們可以假設你可能在 26 年獲得了 1 億美元的增幅嗎？例如，也許你只是想想，如果你在董事會上借錢，但在 26 年提前獲得了一些收益，你會怎麼想？

Okay. Yes. So we'll have David talk about --

好的。是的。所以我們讓大衛談談--

I'll do the cash flow.

我會做現金流。

Then I can come back and give you perspectives on '26.

然後我可以回來並給你關於 26 年的看法。

Right. So if we look at where we are right now with cash generation through the first half, we are $900 million ahead of last year. And we expect, as you mentioned, the free cash flow somewhere around the $1.9 billion. So the adjustment to the overall guide is really twofold. One is our earnings increase that we increased the midpoint of our guide. But also with the new tax legislation, we are expecting less cash taxes in 2025, and that represents about a 4% uplift in our overall conversion rate.

正確的。因此，如果我們看一下目前上半年的現金產生情況，我們會發現我們比去年同期多了 9 億美元。正如您所說，我們預計自由現金流約為 19 億美元。因此，對整體指南的調整實際上是雙重的。一是我們的獲利增加，我們提高了指導價的中點。但隨著新稅法的實施，我們預計 2025 年的現金稅將會減少，這意味著我們的整體轉換率將上升約 4%。

So when you end up adding those two factors together, we're now expecting about a 50% conversion rate for the year of $1.9 billion. I will remind everyone that -- and the way that looks on our balance sheet is not that we're accumulating cash on the balance sheet. It really represents itself in our -- lowering our needs for borrowing more CP. And so in the first half, you'll see that we borrowed a lot less commercial paper, resulting in lower interest expense. And that's one of the major drivers of overall first half EPS increase. Also reminded everyone that our $1.9 billion is very much dependent on our cash credit mix at the end of the year. We have dialed in a number that is very similar to past years. So as you know, we'll keep a eye on that as we progress through the fourth quarter.

因此，當你將這兩個因素加在一起時，我們預計今年的轉換率約為 50%，即 19 億美元。我要提醒大家──從我們的資產負債表來看，我們並沒有在資產負債表上累積現金。它實際上體現在我們——降低我們借入更多 CP 的需求。因此，在上半年，你會發現我們借入的商業票據少了很多，從而降低了利息支出。這是上半年每股收益整體成長的主要驅動力之一。也提醒大家，我們的 19 億美元在很大程度上依賴我們年底的現金信貸組合。我們撥打的號碼與過去幾年非常相似。因此，如您所知，我們將在第四季度密切關注這一點。

Yes. And Joel, it's Chuck. So look, talking about 2026, it's a little early. I would say, right to your question, though, there's been no pull forward from '26 into '25. I'll just take everybody back to the financial framework we set last November on an EBITDA basis. We're trying to deliver a $1 billion increase over 3 years. This guide range now at -- when we moved it from [3.7 to 3.8] from a midpoint perspective, we're right within that framework. And if you look at the levers that we're pulling to create that $1 billion, they're the same things we've always talked about. They're the three primary growth platforms.

是的。喬爾，我是查克。所以，談論 2026 年還為時過早。不過，我想說，正如你的問題所指出的，從 26 年到 25 年並沒有出現任何進展。我只想讓大家回顧一下我們去年 11 月根據 EBITDA 制定的財務架構。我們力爭在三年內增加 10 億美元。該指導範圍現在為 - 當我們從中點角度將其從 [3.7 移動到 3.8] 時，我們正好在該框架內。如果你看我們為創造這 10 億美元所採取的措施，你會發現它們和我們一直在談論的是一樣的。它們是三個主要的成長平台。

So you're seeing really good growth in Seed out-licensing, our biologicals business and our CP new products, they're delivering. They delivered a little bit more across the board in the first half. We feel good about the next two to three years.

因此，您會看到種子授權、我們的生物製品業務和我們的 CP 新產品都實現了非常好的成長。他們在上半場表現得更全面一些。我們對未來兩到三年充滿信心。

And then cost and productivity, which is really, I think, one of the main headlines for this first half, both the CP business and the Seed business, almost equally are pulling every productivity lever they can. We've got a multiyear program. As you know, we're looking at kind of restructuring assets in CP. And we're really looking at the production and automation of our Seed production. And you can see for the first half, $400 million. We've raised that now to $450 million for the full year.

然後是成本和生產力，我認為這是上半年的主要主題之一，CP 業務和種子業務幾乎同樣地在盡其所能地提高生產力。我們有一個多年計劃。如您所知，我們正在研究 CP 中的資產重組。我們確實在關注種子生產的生產和自動化。你可以看到上半年有 4​​ 億美元。現在我們已將全年預算提高至 4.5 億美元。

And if you look at what we need to deliver through the 2027, it's about $700 million of the $1 billion is going to come out of this bucket. And if we're at $450 million, we're feeling very, very good about that. So you put it all together and I'd say I'm pretty happy with the first half performance. I think when you think about the second half, it's less relevant for us, but we need to get through LatAm, specifically Brazil. The order books are looking very, very good. I think our cost setup in Seed particularly is great for second half LatAm, and it's going to come down to CP pricing, but we're well within the framework for the next two years.

如果你看看我們需要在 2027 年實現什麼目標，你會發現 10 億美元中的約 7 億美元將來自這一部分。如果我們達到了 4.5 億美元，我們會感到非常非常高興。所以把所有因素綜合起來，我會說我對上半場的表現非常滿意。我認為當你考慮下半場時，這對我們來說不太重要，但我們需要透過拉美，特別是巴西。訂單情況看起來非常非常好。我認為我們在種子階段的成本設定對於拉丁美洲下半段來說尤其好，而且它將歸結為 CP 定價，但在未來兩年內我們完全處於框架之內。

Chris Parkinson of Wolfe Research.

沃爾夫研究公司的克里斯·帕金森。

Thank you so much for taking my question. It seems the US Seed price cards are already tracking out from you in certain cases and some of your competitors, and it seems like it's indicating low single digits for both corn and soy, maybe a little bit healthier in the corn side. Could you just discuss kind of the pricing strategy into the end of the season? And also how those embed and how your expectations on a preliminary basis would embed the ramps of both Vorceed and PowerCore, just given your confidence in those launches as well?

非常感謝您回答我的問題。看起來，在某些情況下，美國種子價格卡已經從您和您的一些競爭對手那裡追踪到了價格，並且似乎表明玉米和大豆的價格都處於較低的個位數，玉米方面可能更健康一些。您能討論一下季末的定價策略嗎？還有這些是如何嵌入的，以及您對 Vorceed 和 PowerCore 的初步期望將如何嵌入，只是您對這些發布的信心？

Go ahead, Judd.

繼續吧，賈德。

Okay. Chris. This is Judd. And just as we are launching price cards, you've probably seen some of our brands are in the market. We certainly see some competitors in the market as well. A couple of things from a North America perspective. One, mix improvement with Vorceed and PowerCore. Number two, germplasm performance and the fact that we've continued to bring genetic gain and new hybrids into the lineup that allows us to leverage more price, and farmers are more than willing to share in that as we bring higher levels of productivity. And then there's a little bit of organic price lift in there as well. So the combination of those will get us to low single digits. Maybe about where we were in 2025, maybe a little more dependent on how the year plays out, but we feel very good about what '26 looks like from a pricing opportunity and our mix.

好的。克里斯。這是賈德。就在我們推出價格表的時候，您可能已經看到我們的一些品牌已經進入市場。我們當然也看到市場上存在一些競爭對手。從北美的角度來看，有幾件事。一、利用Vorceed和PowerCore進行混合改進。第二，種質性能以及我們不斷將遺傳增益和新雜交品種引入產品線的事實，使我們能夠提高價格，而隨著我們帶來更高水平的生產力，農民也非常願意分享這一點。而且有機價格也略有上漲。因此，這些因素的結合將使我們達到較低的個位數。也許與 2025 年的情況差不多，也許更多取決於今年的情況，但從定價機會和我們的組合來看，我們對 2026 年的情況非常滿意。

Yes. And maybe, Chris, just a couple of other comments. So if you look at the first half for Seed, right, EBITDA is up $250 million or 11% with 280 basis points of margin enhancement. And we're seeing market share gains in corn and soybean, which we're already number one in both of those technologies. So you start thinking about -- just this business is firing on all cylinders.

是的。克里斯，也許還有另外幾點評論。因此，如果您看一下 Seed 的上半年，EBITDA 成長了 2.5 億美元或 11%，利潤率提高了 280 個基點。我們看到玉米和大豆的市場份額正在成長，我們在這兩種技術領域已經處於領先地位。所以你開始思考——這項業務正在全速發展。

When you add to the mix, which gets us most exciting is the growth of the out-licensing and the potential for that, right? So we've already sized that in corn and soybeans around the world, primarily in North America. Latin America's, it's a $4 billion opportunity. We're a relatively small player. We've said we would be royalty neutral by 2028. And then really exciting things happen post 2028 as we get more licensing income because we have more freedom to operate for our technology.

當你加入組合時，最讓我們興奮的是對外授權的成長及其潛力，對嗎？我們已經對全球各地（主要是北美）的玉米和大豆進行了規模估算。對拉丁美洲來說，這是一個價值 40 億美元的商機。我們是一個相對較小的參與者。我們曾表示，到 2028 年，我們將達到版稅中立。2028 年後，真正令人興奮的事情發生了，因為我們可以更自由地運用我們的技術，從而獲得更多的授權收入。

So I think we're on this really interesting strategic pivot when it comes to Seed, where we're not in-licensing technology as much as we're out-licensing technology. And that's sort of the long-term goal for this business.

因此，我認為，就 Seed 而言，我們正處於一個非常有趣的策略轉捩點，我們不是進行技術授權，而是進行技術授權。這也是我們公司的長期目標。

Kevin McCarthy of Vertical Research Partners.

Vertical Research Partners 的 Kevin McCarthy。

Yes, thank you and good morning. I wanted to unpack the Crop Protection volume a little bit. I appreciate the details that you provide on slide 17. And in particular, I want to dive into fungicides, which was up 40%. Can you help us understand how much of that was market related versus your ramp of picolinamide products? I think you're still ramping on Inatreq to some degree and a more recent launch of Adavelt would be the first part of the question. And then looking ahead to next year, you entered into a partnership recently with FMC for fluindapyr. So maybe talk about what that might mean for Corteva and fungicides next year?

是的，謝謝你，早安。我想稍微解釋一下《作物保護》一書的內容。我很感謝您在第 17 張投影片上提供的詳細資訊。我特別想深入研究殺菌劑，其漲幅達 40%。您能否幫助我們了解其中有多少與市場相關，以及與吡啶酰胺產品的成長有關？我認為您仍然在某種程度上增加對 Inatreq 的投入，而最近推出的 Adavelt 將是問題的第一部分。展望明年，您最近與 FMC 就氟吲哚 (fluindapyr) 建立了合作夥伴關係。那麼也許可以談談這對明年的 Corteva 和殺菌劑意味著什麼？

Go ahead, Rob.

繼續吧，羅布。

Kevin, this is Rob. When you look at fungicides for the first half, yes, we had a good half. I'll take you back to 2023, where prices really started falling, we decided not to participate in some of the business there due to really low margins. And our strategy has been to take out cost and to begin to change our overall footprint and network, and that's working for us. And this is a good example of that, where we now went back into the market and add acceptable returns with our Onmira brand, and we've been able to get back in the market there in Brazil. And that's been the big uptick of fungicides for us in the first half here is our strategy is playing out, and we're in the market with good volume there.

凱文，這是羅布。當你查看上半年的殺菌劑時，是的，我們有一個不錯的半年。我帶你回到 2023 年，當時價格確實開始下跌，由於利潤率真的很低，我們決定不參與那裡的一些業務。我們的策略是降低成本並開始改變我們的整體足跡和網絡，這對我們很有效。這是一個很好的例子，我們現在重返市場，並透過我們的 Onmira 品牌獲得可接受的回報，我們已經能夠重返巴西市場。這是我們上半年殺菌劑銷售量的大幅成長，我們的策略正在發揮作用，我們在市場上的銷售量很好。

Looking now to back half of the year and into the future, we did do a deal with our partner, FMC, or our competitor, FMC, for a brand for Forcivo. It is going to be a new three-way fungicide that we've not participated in this market before in North America corn. It gives us a premium product to be able to position with our overall portfolio if -- we have a very good two-way in Aproach Prima, but this now gives us a top tier as well. And this is exciting for us in the fact that we think we can scale this and we'll be able to get on a lot more acres to give our farmers more choices as we look forward in our overall portfolio there with fungicides. So it's exciting times as we begin to bring some of these new products to market for Crop Protection.

回顧上半年和未來，我們確實與我們的合作夥伴 FMC 或我們的競爭對手 FMC 達成了一項協議，為 Forcivo 打造一個品牌。這將是一種新型三效殺菌劑，我們之前從未涉足過北美玉米市場。如果我們在 Aproach Prima 中擁有非常好的雙向產品，那麼它將為我們提供一種優質的產品，使我們能夠在我們的整體產品組合中定位，但現在它也為我們提供了頂級產品。這對我們來說是令人興奮的，因為我們認為我們可以擴大規模，我們將能夠覆蓋更多的土地，為我們的農民提供更多的選擇，我們期待我們的殺菌劑整體產品組合。因此，當我們開始將這些新產品推向作物保護市場時，這是一個令人興奮的時刻。

Frank Mitsch of Fermium Research.

費米研究中心的弗蘭克·米奇。

Good morning and congratulations on a very strong quarter driven partly by share gains. I was wondering if you could opine on what your expectations were for share gains in both corn and soy? And I wonder to what extent, given the fact that we are looking at a potential record harvest in corn, obviously, that's driving the price of the commodity lower? Chuck, how do you feel about what impact that may have on 2026 corn acres?

早安，恭喜您本季業績表現強勁，部分原因是股價上漲。我想知道您是否可以談談對玉米和大豆市場份額增長的預期？我想知道，鑑於我們預計玉米產量可能創下紀錄，這在多大程度上會壓低玉米價格？查克，您認為這會對 2026 年的玉米種植面積產生什麼影響？

Yes. So why don't we have Judd talk about performance and the share gains, and then I'll come back and talk about the market.

是的。那麼，我們為什麼不先讓賈德談業績和股價上漲，然後再回來談市場呢？

Very good. Thanks for the question, Frank. And from a share gain perspective, right, we still have to get to the final numbers in terms of where we landed with acres. It does feel like the number we have out there with USDA at 95 makes sense. If you look at what our volume is versus where we believe acres are planted, we've picked up share in both corn and soy.

非常好。謝謝你的提問，弗蘭克。從份額成長的角度來看，我們仍然需要獲得最終的土地面積數字。我們確實覺得美國農業部給的數字 95 是有道理的。如果您看一下我們的產量與我們認為的種植面積，我們會發現我們在玉米和大豆方面的份額都增加了。

Very, very strong performance on the soy side with not only our Z-Series beans and our Pioneer brand, but our regional anchor brand is performing very, very high. And we are providing our licensees with some of the very best germplasm and product performance in the industry on soy.

我們的大豆產品不僅 Z 系列豆類和先鋒品牌表現非常強勁，我們的區域主力品牌也表現非常出色。我們為我們的授權商提供大豆產業中最好的種質和產品性能。

When you think about PowerCore and Vorceed, performance, again, has allowed us to continue to pick up share. And we've clearly taken a leadership position in the above and below ground protected market. And our doubles or our aboveground performance has been exceptional. So we're excited.

當您考慮 PowerCore 和 Vorceed 時，效能再次使我們繼續獲得市場份額。我們顯然已經在地上和地下保護市場佔據了領導地位。我們的雙打或場上表現非常出色。所以我們很興奮。

Maybe one other piece, our retail partners with Brevant and the initiative and strategic play that we had in terms of entering that retail space with a premium brand has had tremendous success as well, and they picked up some share here in '25. So feel good about where we're at. Chuck?

也許還有一點，我們與 Brevant 的零售合作夥伴以及我們在以高端品牌進入零售領域方面的主動性和戰略性發揮也取得了巨大的成功，他們在 25 年在這裡獲得了一些份額。所以，請對我們目前的狀況感到滿意。查克？

Yes. And then, Frank, on the fundamentals. So look, if you think about what's happening, right, it's another year of record demand in terms of consumption for grains and oilseeds. And we've had very good production. So production is keeping up with demand, which is good. But stocks to use around the world, especially if you look at corn, it's tight, even though the market is expecting a big crop from the US and a big crop from LatAm.

是的。然後，弗蘭克，談談基本面。所以，如果你想想正在發生的事情，對吧，這是穀物和油籽消費量創紀錄的另一年。我們的產量非常好。因此產量能夠滿足需求，這是好事。但全球的庫存，尤其是玉米，卻很緊張，儘管市場預期美國和拉丁美洲都會有大豐收。

So it's pretty interesting because you've got relatively low crop pricing today, but the stocks to use are not going up. So any wobble here when it comes to either total production or even China buying behavior because right now, they're not really buying a lot of product yet. This could actually go the other way, and you could see even further strength in the ag fundamentals. And so we're watching it very carefully.

這很有趣，因為今天的農作物價格相對較低，但可用的庫存卻沒有增加。因此，無論是總產量還是中國的購買行為，都存在任何波動，因為目前他們還沒有真正購買大量產品。但實際上，情況可能會相反，你甚至可以看到農業基本面的進一步增強。因此我們正在非常仔細地觀察它。

So it's a little early to call 2026. But if you look at the futures price today, it would be a flip of a coin, right? Now what the prevailing thinking is -- and we would agree with this -- is that you're probably going to see slightly less corn area and probably slightly more soybean area, but the US is going to plant 180 million acres of both.

所以現在說 2026 年還太早。但如果你看看今天的期貨價格，它就像拋硬幣一樣，對嗎？現在普遍的想法是——我們也同意這一點——你可能會看到玉米種植面積略有減少，大豆種植面積略有增加，但美國將種植 1.8 億英畝玉米和大豆。

And I think what the determining factor will be, of course, will be economics at the time. But we also have to watch the trade discussions that are happening right now and geopolitics will play into this because we do need some trade routes to open up, particularly for soybeans, and that will weigh on farmers' planting decisions as we get through harvest and into next year. So time will tell, but that's our current thinking today, Frank.

我認為，決定性因素當然是當時的經濟狀況。但我們也必須關注目前正在進行的貿易討論，地緣政治將在其中發揮作用，因為我們確實需要開闢一些貿易路線，特別是大豆貿易路線，這將影響農民在收穫季節和明年的種植決策。所以時間會證明一切，但這就是我們今天的想法，弗蘭克。

David Begleiter of Deutsche Bank.

德意志銀行的大衛·貝格萊特。

Thank you. Good morning. Hey, Chuck, just on CP pricing. Can you talk to what you're seeing in terms of the price of Chinese and Indian generics? And overall, are you seeing CP pricing in the back half get any worse or just more stabilize here?

謝謝。早安.嘿，查克，只是關於 CP 定價。您能談談您所看到的中國和印度仿製藥的價格情況嗎？總體而言，您是否認為下半年 CP 定價會變得更糟還是更加穩定？

Thank you.

謝謝。

Yes. So why don't I have Robert talk a little bit about what he's seeing in the markets, and then I'll come back with just a few high- level comments on the CP market generally. Go ahead, Robert.

是的。那麼，我為什麼不讓羅伯特談談他對市場的看法，然後我會對 CP 市場整體發表一些高層評論。繼續吧，羅伯特。

Sure, David. CP pricing, as you seen, we think will finish the full year at low single digits. Second half, we're really focusing a lot on Brazil. I'll take you to -- before we get to that, just the first half, pricing in all regions was relatively flat, with the exception of Brazil. And so second half of our business is primarily Latin America. Brazil is a big piece. So we're watching this.

當然，大衛。如您所見，我們認為 CP 定價全年將以個位數低點結束。下半場，我們確實把注意力集中在巴西隊身上。在我們討論這個之前，我想先說一下，僅在上半年，除巴西外，所有地區的定價都相對平穩。因此，我們的下半年業務主要在拉丁美洲。巴西是一塊大塊頭。所以我們正在關注此事。

And imports are up a little bit in Brazil, but we're seasonally high headed into the season. The channel is full as expected, ample supply. With the economics in the area, we're continuing to have pricing pressures with competition as well. So it's an area that we're watching. But yet, as you look at the year-over-year as we approach 2026, quarter-to-quarter or quarter-over-quarter, the pricing improves. It is not as much of a decrease as it has been in the past, and we think it continues to get better as we move forward.

巴西的進口量略有增加，但進入旺季後，進口量處於季節性高點。渠道如預期般爆滿，供應充足。由於該地區的經濟狀況，我們也持續面臨競爭帶來的定價壓力。所以這是我們正在關注的領域。但是，當我們接近 2026 年時，如果你看一下同比、季度或季度環比情況，就會發現價格有所改善。下降幅度並不像過去那麼大，我們認為，隨著我們不斷前進，情況會越來越好。

So I'm still bullish on it a little bit because I do think that pricing does continue to get better as supply tightens up and as exports out of China continue to be stable from a pricing standpoint. They are low, but they're stable. And so those are signs of movement in the right direction. Chuck, something to add?

因此，我仍然對此持樂觀態度，因為我確實認為，隨著供應收緊以及從定價角度來看中國出口繼續保持穩定，定價確實會繼續好轉。它們很低，但很穩定。這些都是朝著正確方向發展的跡象。查克，還有什麼要補充的嗎？

Yes. So look, David, if you think about the CP market fundamentals overall, we all know it's a well-supplied market. But it is improving. The overall market, at least the way we're looking at it, is slowly improving. And most of the major markets, so the destocking is well behind us. We said that last quarter, I think, and we're seeing the channels -- all channels would be very healthy. And then pricing. So we're watching pricing very, very carefully. In most major markets, it has stabilized. And in some markets, pricing is starting to go up after several years of declines.

是的。所以，大衛，如果你從整體上考慮 CP 市場的基本面，我們都知道這是一個供應充足的市場。但情況正在改善。整體市場，至少從我們的角度來看，正在緩慢改善。而且大多數主要市場都是如此，因此去庫存化已經遠遠落後了。我認為，我們上個季度就說過這一點，而且我們看到所有管道都非常健康。然後是定價。所以我們非常非常仔細地關注定價。在大多數主要市場，它已經穩定下來。在一些市場，價格在經歷了幾年的下跌之後開始上漲。

Robert called out, Brazil is probably the area where we have the most concern. It's probably the most competitive market in the world right now when it comes to CP. And we are obviously -- when we dialed our thinking into our guide, we said that the second half pricing will probably be down low to mid-single digits in Brazil.

羅伯特呼籲道，巴西可能是我們最關注的地區。就 CP 而言，它可能是目前世界上競爭最激烈的市場。顯然，當我們將我們的想法融入指南中時，我們表示巴西下半年的定價可能會下降到低到中等個位數。

But the early signs, so if you look at sort of the leading indicators, China generic pricing, for 4 quarters now in a row, the pricing is stable. So it's no longer going down for almost a year, which I think is great. And then production in China, so the inventory in China is actually improving as well. So there's less product that's being exported. So all of that leads me to believe that 2026 should be better than 2025. But we don't have a great insight until we get through the first -- or the second half in LatAm. And we'll update the market as we learn more. But that's our thinking right now with the CP ag fundamentals.

但早期跡象表明，如果你看一下領先指標，中國仿製藥定價已經連續四個季度保持穩定。因此近一年來它都沒有再下降，我認為這很好。然後是中國的生產，因此中國的庫存實際上也在改善。因此出口的產品減少了。所以所有這些都讓我相信 2026 年應該比 2025 年更好。但在我們完成拉丁美洲的第一部分或第二部分之前，我們無法獲得深刻的見解。隨著我們了解更多信息，我們將更新市場動態。但這就是我們目前對 CP ag 基本面的看法。

Jeffrey Zekauskas of JPMorgan.

摩根大通的 Jeffrey Zekauskas。

Thanks very much. Two-part question. Can you talk about how tariffs have affected your supply chain, that is, with different tariff issues arising? What are you doing different in terms of sourcing and in terms of shipping? And for David, inventories really look like they're in pretty good shape, where year-over-year, they're down $600 million, and they were down sharply in the first quarter. By the end of the year, do you think your inventories will be much lower than they were last year?

非常感謝。問題分為兩部分。您能談談關稅對您的供應鏈產生了什麼影響嗎，也就是出現了哪些不同的關稅問題？您在採購和運輸方面做了哪些不同的事情？對於戴維來說，庫存看起來狀況確實很好，與去年同期相比，庫存下降了 6 億美元，而且第一季的庫存下降幅度很大。到年底，您認為您的庫存會比去年低很多嗎？

Jeff, I'll take the first part of that one and talk a little bit about what we're doing from a supply network to work through these challenges. I think as you look at the overall supply chain for Corteva, recall that we've started in on this strategy a few years ago to

傑夫，我將從第一部分開始，談談我們從供應網絡的角度如何應對這些挑戰。我認為，當你審視 Corteva 的整體供應鏈時，回想一下，我們幾年前就開始實施這項策略，

improve our resiliency. And in doing that, we've been working on increasing our multisourcing. And as you know, this is not a fast process. With regulatory requirements, as you move a source, you have to get it registered, and it does take some time. But we're making great progress there.

提高我們的彈性。為此，我們一直致力於增加多源採購。如你所知，這不是一個快速的過程。根據監管要求，當您移動來源時，您必須進行註冊，這確實需要一些時間。但我們在那裡取得了巨大進展。

And so from a tariff standpoint, we've been able to navigate the water so far. And the impact is, I'm going to call it, minimal from an overall standpoint. And that's really because our supply chain teams have been hard at work well in advance of this. I'd like to say we're that smart, but we were ahead of this before it ever started. And we're in a pretty good position from a multi-sourcing standpoint. So we don't see a big issue right now as it stands from what we know today, and I think we're in a pretty good position to manage these things as we move forward.

因此，從關稅角度來看，到目前為止我們已經能夠順利航行。我認為，從整體角度來看，其影響微乎其微。這確實是因為我們的供應鏈團隊在此之前就已經努力了。我想說我們很聰明，但在這一切開始之前我們就已經領先了。從多來源的角度來看，我們處於相當有利的地位。因此，從我們目前所了解的情況來看，目前還不認為有什麼大問題，而且我認為我們能夠很好地處理這些問題。

Jeff, regarding inventory, yes, thanks for putting out the fact that we are in a very good trajectory so far in this year. We do expect the back half of the year to add some working capital, and we've had a really good run so far in the first half of this year. But by the second half, we expect inventories to be around flat to prior year, maybe down slightly from where we were in 2024.

傑夫，關於庫存，是的，謝謝你指出今年到目前為止我們的發展軌跡非常好。我們確實預計今年下半年會增加一些營運資金，而且今年上半年到目前為止我們的業績表現非常好。但到下半年，我們預計庫存將與上年持平，甚至可能比 2024 年的水準略有下降。

Richard Garchitorena of Wells Fargo.

富國銀行的理查德·加奇托雷納。

Chuck, given the strong first half of the year and the raise of the full year guide, I was curious your thoughts in terms of where do you think the market has really surprised you since the Investor Day and since you set the targets for this year?

查克，鑑於今年上半年的強勁表現和全年指引的提高，我很好奇您的想法，自投資者日和您設定今年的目標以來，您認為市場在哪些方面真正讓您感到驚訝？

And then you talked about the progressing ahead of schedule on the net royalties as well as on the cost side. Any chance we could see a pull forward in terms of those targets? You mentioned $700 million in costs. Could we get there sooner than originally thought? And same question in terms of the net royalty neutrality target of 2028. Can we get there ahead of time?

然後您談到了淨版稅以及成本的提前進度。我們有可能看到這些目標有所進步嗎？您提到了 7 億美元的成本。我們能比原先想像的更快到達那裡嗎？關於 2028 年淨特許權使用費中立目標，也有同樣的問題。我們可以提前到達那裡嗎？

Yes. Good question, Richard. So look, on the net royalty, we've already pulled it forward, right? So it was end of decade, 2030, now it's 2028. We're feeling very confident around that time line. And I think that the first half performance would be reflective of that time line.

是的。問得好，理查。那你看，在網路版稅方面，我們已經把它提前了，對吧？所以當時是 2030 年，現在是 2028 年。我們對這個時間表非常有信心。我認為上半年的表現將反映出這條時間線。

From an overall market and what has surprised us, look, I think we've all kind of been focused on the growth platforms, the way we've outlined them. And really, if you've heard me talk before, I'm a big believer in controlling our controllables, and the growth platforms are what we can control. So the new products, I think, are performing well in CP.

從整體市場和令我們感到驚訝的情況來看，我認為我們都一直專注於成長平台以及我們概述它們的方式。真的，如果你以前聽過我講話，你就會知道我堅信控制我們的可控因素，而成長平台就是我們可以控制的。所以我認為新產品在 CP 中表現良好。

The out-licensing, there just seems to be a lot of interest in the major markets to have another set of technology in licensor hands. So I think that, that's really good. And we're going to go as fast as we possibly can, and we've already pulled some of that, I think, forward a little bit.

對於對外授權，主要市場似乎對將另一套技術交給授權方非常感興趣。所以我認為這真的很好。我們將盡可能快地前進，我認為我們已經將其中一些工作向前推進了一點。

When you start thinking about the other surprising area though, it is CP. When I look at this year's market being flat, our business is going to be up. And I think that is some of the hard work that Robert just described, which is on the cost and productivity front. So where I think we've probably seen the market in CPB at the low end for a little longer than we all expected. Even though I just said it is getting better, and we believe it is getting better, I think we've been able to find ways to offset that with the levers we can pull, namely on cost and productivity and then leaning into the strengths of our technology.

然而，當你開始思考另一個令人驚訝的領域時，那就是 CP。當我看到今年的市場持平時，我們的業務就會上升。我認為這就是羅伯特剛才描述的一些艱苦的工作，即在成本和生產力方面。因此，我認為我們可能已經看到 CPB 市場處於低端的時間比我們預期的要長一些。儘管我剛才說情況正在好轉，而且我們也相信情況正在好轉，但我認為我們已經能夠找到方法利用我們可以利用的槓桿來抵消這種影響，即成本和生產力，然後依靠我們技術的優勢。

And so the formula is pretty boring, but it's one that has worked for us and will continue. When I look at the targets, all I'll say is that there's a wide range there, and we feel comfortable that we're well within that range today. And we'll continue to update you as we learn more through the business operations.

因此，這個公式雖然很無趣，但它對我們很有效，並且會繼續下去。當我審視這些目標時，我想說的是，它們之間的範圍很廣，而且我們今天感到很滿意，因為我們完全處於這個範圍內。隨著我們透過業務運營了解更多信息，我們將繼續向您通報最新情況。

Kristen Owen of Oppenheimer.

奧本海默的克里斯汀歐文。

Hi, good morning. Thank you for taking the question.I wanted to ask a little bit about your second half Seed assumptions. Just as we're shifting to Brazil in this half, you mentioned order books are looking healthy. Can you maybe articulate a little bit more on some of the velocity of those order books? And then specifically on your Seed assumption, it does look like the price expectations are maybe down a little bit more. I think previously, you were low to mid-single digits now or plus low single digits. So just off that easy comp, help us understand the moving pieces around Seed pricing in the back half?

嗨，早安。感謝您回答這個問題。我想問一下您對下半年種子的假設。正如我們今年上半年轉向巴西一樣，您提到訂單看起來很健康。您能否更詳細地闡述這些訂單簿的速度？然後具體到你的種子假設，看起來價格預期可能會下降一點。我認為以前你的收入是低個位數到中等個位數，現在是高個位數。那麼，透過這個簡單的比較，您能幫助我們了解後半部種子定價的變化嗎？

Thank you.

謝謝。

Kristen, this is Judd, and thanks for the question. So yes, I mean, for the Seed business, second half is really all about Latin America. A couple of things going on there. Let me start with Argentina. We've got some product that shifted out of the first half into the second half as Argentinian growers have gotten to a just-in-time type purchase pattern. Credit has been somewhat of an issue. And with currency more stabilized, you can see the Argentinian farmer just buying closer to when they actually need it versus -- there had been a few years where they were purchasing well, well in advance where their need was because of some currency hedge.

克里斯汀，我是賈德，謝謝你的提問。是的，我的意思是，對於種子業務來說，下半年實際上完全與拉丁美洲有關。那裡發生了幾件事。我先從阿根廷說起。由於阿根廷種植者已經採用了即時採購模式，我們的一些產品從上半年轉移到了下半年。信用在某種程度上是一個問題。隨著貨幣更加穩定，你可以看到阿根廷農民只是在他們真正需要的時候才購買，而不是像以前那樣，由於某種貨幣對沖，他們在需要的時候會提前購買。

So we feel good about area recovery. We feel good about our current position. Full transparency, our product portfolio in Argentina is not where we want it to be today. We've got -- we've made great progress, but it's going to take us another year or two to bring products through the pipeline. We feel good about what we've got coming, but we're -- the team is doing a great job of finding their way on the right acre where we can perform for farmers. But we've got a little bit of a gap we're working on.

因此，我們對該地區的恢復感到滿意。我們對目前的狀況感到滿意。完全透明，我們在阿根廷的產品組合還沒有達到我們今天想要的水平。我們已經取得了很大進展，但還需要一兩年的時間才能推出產品。我們對所取得的成果感到滿意，但是我們——團隊正在出色地找到為農民服務的正確方法。但我們還存在一些差距，我們正在努力彌補。

So we move to Brazil. If you look at the summer crop, we've got right at 90% of the orders in hand. And we're sitting almost 40% of orders in hand for safrinha, which is unusually well ahead of pace for this point in time. As far ahead as we've ever been for whatever reasons, we've got gross [Canadian] upfront for products that they're going to plant in January. So we feel good about that.

所以我們搬到了巴西。如果你看一下夏季作物，你會發現我們手邊的訂單已經達到 90%了。我們手上已有近 40% 的 safrinha 訂單，這在目前這個階段是異常快的。無論出於什麼原因，我們都已經提前獲得了加拿大他們將在一月份種植的產品的預付款。因此我們對此感到很高興。

Low single digits feels about right from a pricing perspective. It's a very, very, very competitive market. Two months ago, there was a really strong corn position with local market prices and demand. That's softened a bit, but it's still very good. So we expect mid-single- digit increases in summer acres as well as safrinha acres.

從定價角度來看，低個位數感覺是合適的。這是一個競爭非常非常激烈的市場。兩個月前，玉米在當地市場價格和需求方面表現強勁。雖然稍微軟了一些，但仍然非常好。因此，我們預計夏季種植面積和夏季種植面積將出現中等個位數的成長。

Maybe one point to add. We've seen summer acres where summer planted area declining for a number of years, the last decade or so. And it's just now that we're starting to see that planted area increase for summer crop as well. So good picture. Now we have to execute. Thanks for your question.

也許需要補充一點。我們發現，過去十年左右，夏季種植面積連續幾年下降。現在我們也開始看到夏季作物的種植面積增加。非常好的照片。現在我們必須執行。謝謝你的提問。

Aleksey Yefremov from KeyBanc Capital Markets.

來自 KeyBanc 資本市場的 Aleksey Yefremov。

Thanks, good morning. You mentioned some upward movement somewhat restricted production there. Are you seeing any interest in your products as an alternative to China generics, maybe somewhere else in the world?

謝謝，早安。您提到一些上行趨勢在一定程度上限制了那裡的生產。您是否看到有人對您的產品感興趣，將其作為中國仿製藥的替代品，甚至在世界其他地方？

Aleksey, thanks for the question. When you think about China, there's a few things going on here. First, let's go back to a little bit of where we had a lot of excess production. I believe what Chuck's referring to there is we feel like production is tightening up, getting back more in balance, move in that direction. As far as the exports go, most of it is impacting Latin America right now. We are starting to see a little bit into Eastern Europe.

阿列克謝，謝謝你的提問。當你想到中國時，你會想到這裡正在發生的一些事情。首先，讓我們回顧一下我們存在大量過剩產能的情況。我相信查克所指的是，我們感覺到生產正在收緊，恢復平衡，朝著這個方向發展。就出口而言，目前大部分出口都影響拉丁美洲。我們開始對東歐有所了解。

But it's manageable and not that much different than normal. It just has a little more noise because of just the climate of the world. But primarily, it's a Latin America phenomenon. Asia has always been a big generic market, so it's nothing new there. So our focus is really on Latin America. The other regions are about normal. And we don't see any big disruptors happening in those regions.

但它是可控的，並且與正常情況沒有太大區別。只是由於全球氣候的原因，噪音稍微大了一點。但首先，這是拉丁美洲的現象。亞洲一直都是一個巨大的仿製藥市場，所以這裡並不是什麼新鮮事。所以我們的重點確實在拉丁美洲。其餘地區基本正常。我們沒有看到這些地區發生任何重大動盪。

Yes. I think the one key thing to call out is we don't go head-to-head with the generics. We don't have to. We have different customer base. And usually, the customers that we're selling to, we have a direct model. As you know, we rely on that a lot. And the customers that we're selling to want differentiated technology. What the generics do provide the floor. And so if the floor is stable, that helps everybody. So it's less of a competitive issue for us and a substitution of product, but it helps to understand sort of the overall health of the market.

是的。我認為需要強調的關鍵一點是，我們不會與仿製藥發生正面衝突。我們沒必要這麼做。我們有不同的客戶群。通常，對於我們銷售產品的客戶，我們會採用直接銷售模式。正如你所知，我們非常依賴它。我們銷售產品的客戶想要差異化的技術。仿製藥的作用提供了依據。因此，如果地板穩定，那麼對每個人都有幫助。因此，對我們來說，這不是一個競爭問題，也不是產品替代問題，但它有助於了解市場的整體健康狀況。

[Matthew Duey] of Bank of America.

美國銀行的[Matthew Duey]。

Thanks. I have two. The first is like, I can guess what your answer is going to be here. But would you say you benefited at all from the absence of dicamba this year? And your thoughts on the potential return next year, given some new registrations maybe moving to the pipe? And then as we look at the margin in CP, year-over-year, it's pretty impressive, and you discussed a lot of the productivity benefits they're resonating here. So if we think about how that margin should translate to 3Q, can we keep a lot of this traction? Or are they going to be give backs here depending on, like, mix?

謝謝。我有兩個。首先，我可以猜出你的答案是什麼。但是，您認為今年沒有使用二甲苯對您有什麼好處嗎？考慮到一些新註冊可能會轉向管道，您對明年的潛在回報有何看法？然後，當我們查看 CP 的利潤率時，與去年同期相比，它相當令人印象深刻，而且您討論了許多它們在這裡產生的生產力效益。因此，如果我們考慮如何將該利潤率轉化為第三季的利潤率，我們能否保持這種成長勢頭？或者他們會根據混合情況在這裡給予回報嗎？

Okay. Well, let's start with Judd for dicamba.

好的。好吧，讓我們先從賈德 (Judd) 開始討論二甲苯胺。

Okay. Thank you, Matthew. Yes, maybe just a few comments. EPA did take an action here at the end of July. There's a 30-day comment period on a potential return of a dicamba label. And so we'll see how that goes, how restrictive the label is or not and if that will be available for growers.

好的。謝謝你，馬修。是的，也許只是一些評論。美國環保署確實在七月底採取了行動。對於是否恢復使用二氯苯氧乙酸標籤，目前有 30 天的評論期。因此，我們將觀察情況如何，標籤的限制性如何，以及是否可供種植者使用。

Let me just put maybe a side bar coming here. We advocate for growers having all the tools that they need to be productive and manage their crop. So that being said, if you think about how E3 and Enlist entered the market, we were making big penetration in market share gains, while dicamba was still labeled. And so when we lost the label for dicamba.

讓我在這裡放一個側邊欄。我們提倡種植者擁有提高生產力和管理作物所需的所有工具。話雖如此，如果你想想 E3 和 Enlist 是如何進入市場的，我們在市佔率成長方面取得了巨大的滲透，而二甲苯仍然被貼上標籤。因此，我們失去了二甲苯的標籤。

I'm sure that we -- that there was a bump there to some degree, but we still had dicamba-resistant beans that were going in the ground and just choosing different herbicide packages. So I guess we don't have any big concerns that the dicamba label returning is going to have any material impact that we're going to have to deal with.

我確信我們——在某種程度上存在著障礙，但我們仍然有抗二甲苯的豆類種植在地裡，我們只是選擇了不同的除草劑包裝。因此，我想我們並不擔心二甲苯標籤的回歸會對我們必須處理的任何重大影響。

Germplasm still matters and is a really big deal. Our performance in our germplasm on the soy side is best-in-class, best in the industry right now in North America. And I think that our -- all of our brands and licensees would agree with that. We're sitting again just north of 65% penetration with Enlist, heavy weed control season with all the rains that we had and multiple flushes of weeds. So we believe that our spray rate is still 70% or above. We'll see when the market research shakes out on that. But probably more than you wanted for the dicamba answer. But we feel like we're in a strong position. We can compete well going into '26 and beyond.

種質資源仍然很重要，而且確實意義重大。我們的大豆種質資源表現是同類最佳，目前在北美產業中名列前茅。我認為我們所有的品牌和授權商都會同意這一點。我們再次處於 Enlist 滲透率 65% 的北部，這是除草旺季，雨水充沛，雜草叢生。所以我們相信我們的噴塗率仍然在70%或以上。當市場調查結果出來後我們就會知道答案。但可能比您想要的有關二甲苯的答案還要多。但我們感覺我們處於有利地位。我們可以很好地參與 26 年及以後的競爭。

Go ahead, Robert, answer the CP margin question.

繼續吧，羅伯特，回答 CP 保證金問題。

So on the CP margin, let's talk a little bit about how we see us tracking to the 2027 deliverables and what that looks like. First of all, if you recall last year, we put more money on the table from a cost reduction standpoint. To deliver by 2027, we'll be in the neighborhood of $300 million. And that work is continuing. So as you build out the margins, we are continuing to get to a capital- light, lower manufacturing cost base than what we've been in the past. And we think that continues to help us with margins as we move forward into the future. As I said before, a lot of work was started there early, and we're continuing that as we look forward.

因此，在 CP 利潤率方面，讓我們稍微談談我們如何看待 2027 年交付成果以及它是什麼樣子的。首先，如果您還記得去年，我們從降低成本的角度投入了更多的資金。到 2027 年，我們的投資金額將達到 3 億美元左右。這項工作仍在繼續。因此，隨著利潤率的提高，我們將繼續實現比過去更輕資本、更低的製造成本基礎。我們認為，這將繼續幫助我們在未來保持利潤率。正如我之前所說，很多工作很早就開始了，我們將繼續進行這些工作。

The other thing I think about when I talk about margins for this business is really our growth platforms of new products and biologicals. Keep in mind that when you think about our differentiated portfolio, we're about two-third -- a little over two-third differentiated in our portfolio. And what that means for us is in that part of our portfolio, our gross margin is somewhere about 15% above our overall average. And that gives us good uplift. And that's where our technology lies.

當我談論該業務的利潤率時，我想到的另一件事實際上是我們的新產品和生物製劑的成長平台。請記住，當您考慮我們的差異化投資組合時，我們的投資組合中大約有三分之二 - 略多於三分之二是差異化的。對我們來說，這意味著我們投資組合中的這部分產品的毛利率比整體平均高出約 15%。這給了我們很大的鼓舞。這就是我們的技術所在。

And as Chuck talked earlier, there is a lot of demand for our technology. Farming is getting harder. And the farmers need more tools to be able to combat all the things they're seeing. There's a lot of resistance growing in weeds, pests are increasing, especially in Latin America. It's getting more intense. And there are new things showing up.

正如查克之前所說，我們的技術有很大的需求。耕作越來越困難。農民需要更多的工具來對抗他們所看到的所有問題。雜草的抗藥性不斷增強，害蟲也日益增多，尤其是在拉丁美洲。越來越激烈了。並且不斷有新事物出現。

So I'll talk you through a couple of things that we're going to be launching Haviza, soybean rust product that will be launching in Brazil. This is a major market for us. We think this is a blockbuster molecule that will peak out around 500 as peak revenue. And so

因此，我將向您介紹我們將在巴西推出的大豆銹病產品 Haviza 的一些情況。這對我們來說是一個重要的市場。我們認為這是一個重磅分子，其收入高峰將達到 500 左右。所以

we're bringing new technology over the next few years. Reklemel, another one that we just launched, but we just got permitting for it in California. And this is a nematocide that is novel from the standpoint that it is selective with the bad nematodes and keeps all the good things in the soil. So again, new technology that adds value on the farm that is helping not only our margins, but man, it's helping the farmers and their returns as they grow.

我們將在未來幾年內推出新技術。Reklemel 是我們剛推出的另一個產品，但我們剛剛在加州獲得了許可。這是一種新穎的殺線蟲劑，它可以選擇性地殺死有害線蟲，同時保留土壤中的所有有益物質。所以，新科技為農場增加了價值，不僅有助於提高我們的利潤，也有助於農民及其在成長過程中的回報。

And then biologicals, this is one -- really can't talk enough about from a standpoint of where are we going in the future of ag. And today, it's about 10% of the overall market of the world. We think it will grow up to around 25%, 30% over the next decade. And keep in mind, this is a part of the -- that's growing faster and has higher margins because of just the value it puts on the farm when you begin to use this in the right way. So our portfolio makeup is advantageous to us from a margin standpoint as we progress. And then as we begin -- again, to keep taking costs out, we think we're in a really good position as we walk into second half and then on to 2027. Hope that helps.

然後是生物製品，從農業未來發展方向的角度來看，這實在無法充分討論。如今，它約佔全球整體市場的 10%。我們認為未來十年這一比例將成長至25%至30%左右。請記住，這是其中的一部分——當你開始以正確的方式使用它時，它會為農場帶來價值，從而成長更快，利潤更高。因此，從利潤率的角度來看，隨著我們的進步，我們的投資組合組成對我們有利。然後，當我們開始——再次，繼續削減成本時，我們認為，當我們進入下半年，然後到 2027 年時，我們處於非常有利的位置。希望有幫助。

Patrick Cunningham of Citi.

花旗銀行的派崔克‧坎寧安。

Hi, good morning. Just on the realization of COGS benefits from Seed commodity cost deflation, how sizable has that benefit been in the first half of '25? And should that still be a sizable benefit in 2026 given the direction of grain prices?

嗨，早安。光從種子商品成本通貨緊縮帶來的 COGS 收益來看，25 年上半年該收益有多大？考慮到糧食價格的走勢，到 2026 年這是否仍是一個相當大的優勢？

Thanks, Patrick, it's David. Yes, I would say that we're slightly ahead in total for our net cost improvement in Seed, and some of that is definitely the commodity impact. I think we'll remind everyone that, that commodity runs through our P&L over a two- or three-year period, and it has to do with commodity hedges and our inventory positions and so on.

謝謝，派崔克，我是大衛。是的，我想說我們在種子淨成本改善方面總體上略有領先，其中一部分肯定是商品的影響。我想我們會提醒大家，該商品在兩到三年的時間內貫穿我們的損益表，並且與商品對沖和我們的庫存頭寸等有關。

So we would say, if you step back and think about the $700 million net impact for a 3-year plan, half of that being Seed, I would say that, that lines up pretty well and give us a little bit more confidence in the plan for the next two or three years.

因此，我們會說，如果你退一步考慮一下三年計劃的 7 億美元淨影響，其中一半是種子資金，我會說，這非常吻合，並讓我們對未來兩三年的計劃更有信心。

Edlain Rodriguez of Mizuho.

瑞穗的埃德萊恩·羅德里格斯。

Thank you. Good morning, everyone. I mean, Chuck, you've been involved in all aspects of the crop market. So your insights here are really appreciated. So there's clearly a disconnect between crop prices and input costs, right? So how does that disconnect get corrected? Will they have to be like a correction in input prices? And related to your company, like how can Seed prices continue to move up in that environment?

謝謝。大家早安。我的意思是，查克，你參與了農作物市場的各個方面。因此，我們非常感謝您在此的見解。那麼農作物價格和投入成本之間顯然存在脫節，對嗎？那麼該如何修正這種脫節呢？它們是否必須像投入價格的調整？與貴公司相關的是，在這種環境下種子價格如何繼續上漲？

Yes. I wouldn't say there's a huge disconnect. Look, we watch farmer margins very carefully. And today, I'd say if you just take the US farmer and say, the Brazilian farmer, they're operating in a market that they've seen many, many times before in their history, right? So we have relatively low crop prices. If they own their land, they're still quite profitable. If they're renting land, margins are quite thin. And in some cases, depending on productivity, they could be negative. And they will farm like that all day long.

是的。我不會說存在巨大的脫節。你看，我們非常仔細地關注農民的利潤。今天，我想說，如果你拿美國農民和巴西農民來比較，他們正在一個他們歷史上已經見過很多次的市場中經營，對嗎？因此我們的農作物價格相對較低。如果他們擁有自己的土地，他們仍然可以獲得相當可觀的利潤。如果他們租賃土地，利潤就會相當微薄。在某些情況下，根據生產力，它們可能是負面的。他們會整天這樣耕作。

Look, I'll tell you, I just spent most of the spring season traveling through Argentina, Brazil, Canada and of course, through the US And every farmer that I talked to wanted more of our technology, especially when it comes to Seed technology. They need the yield. When things are this tight, they really need the yield. It could be the difference between being profitable and not being profitable with a few bushels per acre.

聽著，我告訴你，我整個春季都在阿根廷、巴西、加拿大，當然還有美國旅行，和我交談過的每個農民都希望了解更多我們的技術，尤其是種子技術。他們需要收益。當情況如此緊張時，他們確實需要收益。這可能是每英畝幾蒲式耳的產量決定了獲利與不獲利之間的差異。

So as long as we have the price for value, in other words, we bring genetic gain to the farm and that's our promise to the farmer, right? If you buy their new products, yes, they may cost you more, but you're better off financially. It's a very simple process. And so I'm actually very hopeful that we will just continue with this strategy because farmers are asking for it. In fact, I'd say farmers want us to take the returns from our Seed and put it back into our R&D pipeline, and they know that, that's not free.

所以只要我們有價值的價格，換句話說，我們為農場帶來了基因收益，這是我們對農民的承諾，對嗎？如果您購買他們的新產品，是的，它們可能會花費您更多，但您的財務狀況會更好。這是一個非常簡單的過程。因此，我實際上非常希望我們能夠繼續執行這項策略，因為農民要求這樣做。事實上，我想說農民希望我們從種子中獲得回報並將其重新投入到我們的研發管道中，他們知道這不是免費的。

So I think we've got a great view here. Do we all wish that crop pricing was a little higher? Absolutely. And like I said, I've got a view today that the fundamentals of this business are actually stronger than the crop pricing. And what the market is expecting is a huge crop. And then the trade uncertainty is also weighing on the futures price. So we'll know a lot more, I think, in the next quarter or two. But with the consumption continuing to increase, I think that over time, this thing will normalize. But I haven't met one farmer that doesn't plan to increase their production and productivity over my travels this year. So hopefully, that helps.

所以我認為我們在這裡的視野很棒。我們是否都希望農作物價格稍微高一點？絕對地。正如我所說的，我今天認為，這個行業的基本面實際上比農作物定價更強勁。市場期待的是豐收。貿易不確定性也對期貨價格造成壓力。因此，我認為，在接下來的一兩個季度裡，我們會知道更多資訊。但隨著消費的不斷增加，我認為隨著時間的推移，這種情況將會正常化。但在今年我拜訪的農民中，我遇到的每個人都計劃提高產量和生產力。希望這能有所幫助。

That concludes our question-and-answer session. I'd now like to hand the call back to Kim Booth for final remarks.

我們的問答環節到此結束。現在我想將電話交還給 Kim Booth 做最後的演講。

Great. That's the end of our call. We thank you for joining and for your interest in Corteva. And we hope you have a safe and wonderful day.

偉大的。我們的通話到此結束。感謝您的加入以及對 Corteva 的關注。我們希望您度過平安美好的一天。

Thank you for attending today's call. You may now disconnect. Goodbye.

感謝您參加今天的電話會議。您現在可以斷開連線。再見。