Corteva, Inc.

Results of Operations

Net Sales

Net sales were $4,905 million and $4,417 million for the three months ended March 31, 2026 and 2025, respectively. The increase was primarily drivenby a 6 percent increase in volume, a 4 percent favorable impact from currency and a 1 percent increase in price.

Improvements in volume, with gains in all regions, were driven by Crop Protection due to strong demand for new products, while Seed experienced volume growth in North America from seasonal timing shifts in seed deliveries. The improvement in pricing, led by Seed, was driven by favorable product mix and continued execution on the company's price for value strategy, while a decline in Crop Protection pricing due to competitive market dynamics in Latin America served as an offset. The favorable currency impacts were led by the Euro and Brazilian Real.

1. Represents U.S. & Canada.

2. Europe, Middle East and Africa (“EMEA”).

Cost of Goods Sold (“COGS”)

COGS was $2,372 million (48 percent of net sales) and $2,342 million (53 percent of net sales) for the three months ended March 31, 2026 and 2025, respectively, which wasdriven by volume growth, with a partial offset from lower input costs and net cost and productivity benefits.

Research and Development Expense (“R&D”)

R&D expense was $341 million (7 percent of net sales) and $335 million (8 percent of net sales) for the three months ended March 31, 2026 and 2025, respectively. The increase in R&D expense is in support of the company's long-term investment plans and was primarily driven by unfavorable currency impacts and increases in salaries, depreciation, and field, lab and facilities costs, partially offset by cost recoveries received from third parties.

Selling, General and Administrative Expenses (“SG&A”)

SG&A expenses were $877 million (18 percent of net sales) and $751 million (17 percent of net sales) for the three months ended March 31, 2026 and 2025, respectively. The change was primarily driven by unfavorable currency impacts and an increase in bad debt expense, variable compensation, commissions, consulting fees, and personnel and information technology costs.

Amortization of Intangibles

Intangible asset amortization was $160 million and $162 million for the three months ended March 31, 2026 and 2025, respectively. See Note 10 - Other Intangible Assets, to the interim Consolidated Financial Statements, for additional information.

Restructuring and Asset Related Charges - Net

Restructuring and asset related charges - net were $92 million and $22 million for the three months ended March 31, 2026 and 2025, respectively. The charges in the first quarter of 2026 primarily relate to severance and related benefits costs associated with the 2026 Restructuring Actions, and contract termination charges and decommissioning and demolition costs associated with the Crop Protection Operations Strategy Restructuring Program. The charges in the first quarter of 2025 primarily relate to charges associated with the Crop Protection Operations Strategy Restructuring Program, consisting of severance and related benefit costs, asset related charges, and decommissioning and demolition costs.

See Note 4 - Restructuring and Asset Related Charges - Net, to the interim Consolidated Financial Statements, for additional information.

Other Income (Expense) - Net

Other income (expense) - net was $(117) million and $15 million for the three months ended March 31, 2026 and 2025, respectively. Higher other expense was driven by an increase in net exchange losses compared to prior year and higher miscellaneous expenses, which are largely driven bya settlement charge associated with the Crop Protection loyalty program multi-district litigation plaintiffs and tax expense related to intellectual property realignment.

See Note 5 - Supplementary Information, to the interim Consolidated Financial Statements, for additional information.

Interest Expense

Interest expense was $36 million and $36 million for the three months ended March 31, 2026 and 2025, respectively. The results reflect lower short-term borrowings offset by higher interest for long-term debt.

Provision for (Benefit from) Income Taxes on Continuing Operations

The company’s provision for income taxes on continuing operations was $133 million for the three months ended March 31, 2026 on pre-tax income from continuing operations of $858 million, resulting in an effective tax rate of 15.5 percent. The effective tax rate was favorably impacted by $35 million of net tax benefits related to intellectual property realignment, as well as $47 million of net tax benefits associated with changes in deferred taxes and accruals for certain prior year tax positions. Those favorable impacts were partially offset by withholding taxes on repatriation of cash held outside of the U.S. primarily from current year earnings.

The company's provision for income taxes on continuing operations was $117 million for the three months ended March 31, 2025 on pre-tax income from continuing operations of $784 million, resulting in an effective tax rate of 14.9 percent. The effective tax rate was favorably impacted by a $55 million deferred tax benefit associated with a change in a legal entity’s U.S. tax characterization, as well as net tax benefits associated with changes in accruals for certain prior year tax positions. Those favorable impacts were partially offset by withholding taxes on repatriation of cash held outside of the U.S. primarily from current year earnings.

Income (Loss) from Discontinued Operations After Tax

Income (loss) from discontinued operations after tax was $(2) million and $(11) million for the three months ended March 31, 2026 and 2025, respectively. The after-tax charge for the three months ended March 31, 2026 and 2025 was driven by charges recognized relating to the MOU with Chemours and DuPont, relating to PFAS environmental remediation activities primarily at Chemours' Fayetteville Works facility, along with other environmental matters.

Refer to Note 12 - Commitments and Contingent Liabilities, to the interim Consolidated Financial Statements, for additional information.

EIDP Analysis of Operations

As discussed in EIDP Note 1 - Basis of Presentation, to the EIDP interim Consolidated Financial Statements, EIDP is a subsidiary of Corteva, Inc. and continues to be a reporting company, subject to the requirements of the Exchange Act. There were no differences in the components of net income on the respective Corteva and EIDP interim Consolidated Statements of Operations.