Vylor, the seed business being spun off from Corteva, expects annual revenue to reach as much as $11.9 billion by 2029 as it shifts from primarily selling seeds to licensing its genetics and crop traits to other companies.
The company is targeting annual revenue of $11.2 billion to $11.9 billion by 2029, up from $10.4 billion in 2026, implying annual growth of 3% to 4%. Brazil is expected to play a key role in the strategy, particularly in soybeans, where Vylor aims to become the country’s second-largest player by the end of the decade.
Operating Ebitda is projected to rise to between $3.3 billion and $3.7 billion from $2.8 billion, with the Ebitda margin expanding to 30% from 27%. Cost discipline and growth in higher-margin technology licensing are expected to drive the improvement.
Vylor also plans to continue investing 10% of revenue in research and development and expects to convert at least 60% of Ebitda into free cash flow. Those targets do not include potential acquisitions.
The projections were unveiled Tuesday at Vylor’s first Investor Day, held before the company formally begins operating as an independent business.
The separation from Corteva is scheduled for Oct. 1, though it has recently faced a legal challenge in California. The state filed a lawsuit this week seeking to block the spin-off, alleging the transaction is designed to shield assets from liabilities tied to PFAS chemicals.
Chief Executive Officer Chuck Magro told investors the company has submitted the required court filings and remains confident the separation will take place on Oct. 1.
Asked how investors should value Vylor, Magro pointed to its growth and cash-generation targets.
“What is a company worth that will grow earnings at a high-single-digit rate, with margins approaching 30%, and convert at least 60% of that into cash?” he said.
Technology Provider
A central pillar of Vylor’s growth strategy is to expand licensing of its germplasm and crop traits, giving third-party seed companies access to its technology rather than relying solely on sales of seeds under its own brands.
“This is a structural shift from product to platform, from seed sellers to technology providers,” Magro said.
Historically, the business paid more in royalties to access third-party technologies, including biotech traits, than it generated by licensing its own intellectual property. Vylor expects that equation to reach break-even in 2026.
Licensing revenue is projected at $400 million this year, matching an estimated $400 million in royalty expenses. Vylor expects licensing revenue to exceed those costs in the coming years.
Magro said the net opportunity could reach $1 billion by 2035, with roughly one-third coming simply from eliminating royalties currently paid to third parties.
Demand from independent seed companies offers another growth avenue. In corn and soybeans alone, Vylor estimates the addressable market in the Americas at $4 billion, with more than 100 independent seed companies in the US.
“We are one of the few players positioned to capture that demand,” Magro said, adding that the market could grow about 15% by 2040.
The growth mix will vary by region. Vylor expects US corn and Latin American soybeans to provide most of the expansion over the next several years.
Brazil Soybean Push
In Brazil, Vylor is betting heavily on its Conkesta soybean platform. Penetration stood at 5% in 2025 and is expected to reach double digits in 2026 and 30% by 2030.
Brazilian growers will soon have access to what Vylor describes as the broadest soybean insect-control solution introduced in the country, following a favorable regulatory development, Chief Technology Officer Sam Eathington said. The technology will be combined with weed-control traits.
Magro said Vylor’s ambition is to become Brazil’s second-largest soybean player by the end of the decade.
Another component of the strategy is the company’s Multi-Disease Resistance, or MDR, platform, which uses gene editing to develop resistance to multiple crop diseases.
Initially developed for corn, MDR is now being expanded into soybeans. Vylor is also developing resistance to Asian soybean rust, one of the most significant diseases affecting soybean production in Brazil.
Elsewhere in Latin America, the company is focusing on Abranvo, a corn platform featuring four different modes of action targeting fall armyworm.
Abranvo is part of seven new corn platforms that Vylor expects to generate a combined $6 billion to $7 billion in net revenue over the next decade.
Vylor said the value of its innovation pipeline has increased by nearly $4 billion since 2023 and is expected to reach a record $19 billion by the end of the next decade, an increase of more than 55%.
The pipeline includes 12 new platforms spanning corn, soybeans and wheat, as well as the company’s broader research and development portfolio.
This story was translated from the original Portuguese with the assistance of artificial intelligence and reviewed by The AgriBiz editorial staff.
