Philadelphia, Pennsylvania, USA
February 4, 2025

Fourth Quarter 2024 Highlights

• Revenue of $1.22 billion, an increase of 7 percent versus Q4 2023 and up 12 percent organically1
• Consolidated GAAP net loss of $16 million, down 101 percent versus Q4 2023
• Adjusted EBITDA of $339 million, up 33 percent versus prior year, $3 million higher than guidance midpoint
• Consolidated GAAP loss of $0.13 per diluted share, down 101 percent versus Q4 2023
• Adjusted earnings of $1.79 per diluted share, up 67 percent versus Q4 2023

Full-Year 2024 Highlights

• Revenue of $4.25 billion lower by 5 percent versus prior year and down 3 percent organically1
• Consolidated GAAP net income of $342 million, down 74 percent versus 2023
• Adjusted EBITDA of $903 million, down 8 percent versus 2023
• Consolidated GAAP earnings of $2.72 per diluted share, down 74 percent versus 2023
• Adjusted earnings of $3.48 per diluted share, down 8 percent versus 2023
• Consolidated GAAP cash flow from operations of $737 million, an increase of $1.04 billion versus 2023
• Free cash flow of $614 million, an increase of $1.14 billion versus 2023

Full-Year 2025 Outlook2

• Revenue of $4.15 billion to $4.35 billion, essentially flat to prior year at the midpoint; growth of 3 percent, excluding the impact of the Global Specialty Solutions (GSS) business divestiture
• Adjusted EBITDA of $870 million to $950 million, an increase of 1 percent versus prior year at the midpoint and an increase of 4 percent, excluding the impact from the GSS divestiture
• COGS tailwinds of $175 million to $200 million expected due to raw material deflation, favorable fixed cost absorption and further benefits from restructuring actions
• Adjusted earnings per diluted share of $3.26 to $3.70, flat at the midpoint to the prior year
• Free cash flow is forecasted to be $200 million to $400 million, reflecting a decline of 51 percent at the midpoint

FMC Corporation (NYSE:FMC) today reported fourth quarter 2024 revenue of $1.22 billion, an increase of 7 percent versus fourth quarter 2023 as volume growth, mainly from the company’s growth portfolio3, more than offset FX headwinds and lower price. Excluding the impact of foreign currencies, organic revenue increased 12 percent year-over-year. On a GAAP basis, the company reported a loss of $0.13 per diluted share in the fourth quarter, down 101 percent versus fourth quarter 2023, due to significant one-time tax benefits recorded in the prior year largely driven by tax incentives granted to the company’s Swiss subsidiaries as well as higher valuation allowances on those benefits that were recorded in the fourth quarter of 2024. Adjusted earnings were $1.79 per diluted share, an increase of 67 percent versus fourth quarter 2023.

“We delivered solid sales and strong year-on-year adjusted EBITDA growth in the quarter,” said Pierre Brondeau, FMC chairman and chief executive officer. “While we saw a good increase in volume, the growth was below our expectations as we learned during the quarter that customers in many countries sought to hold significantly less inventory than they have historically. This dynamic, along with more pronounced FX impacts, acted as a headwind to further growth. Over seventy-five percent of our sales growth came from our growth portfolio. This, together with continued cost discipline, was a key factor in delivering a strong year-over-year increase in adjusted EBITDA, which was above our guidance midpoint.”

FMC revenue in the fourth quarter was driven by a 15 percent increase in volume with gains reported in multiple countries, most notably in the United States. An FX headwind of 5 percent was higher than anticipated mostly due to the Brazilian Real. Pricing declined by 3 percent, slightly better than expectations. Sales of products launched in the last five years increased 24 percent driven by higher sales of the new active ingredients fluindapyr and Isoflex™ active.

Sales in North America improved 23 percent versus the prior year driven by higher volume. Latin America sales declined 10 percent but were up 2 percent excluding the currency impact. Volume growth in the region was partially offset by a low-single digit price decline. In Asia, fourth quarter revenue rose 10 percent versus prior year period due to higher volumes. Sales improved 13 percent excluding currency impacts. Higher volumes in EMEA led to sales growth of 18 percent, 21 percent excluding currency impacts. The Plant Health business improved by 33 percent versus the prior-year period.

Fourth quarter adjusted EBITDA of $339 million was 33 percent higher than prior-year period as higher volumes and favorable costs more than offset lower pricing and FX headwinds. Cost favorability included lower input costs as well as additional benefits from the company’s restructuring actions. 

For the full year, FMC reported revenue of $4.25 billion, a decrease of 5 percent compared to 2023. Excluding the impact of FX, year-over-year sales declined 3 percent.  Volume growth of 3 percent was more than offset by a 6 percent price decline and a 2 percent FX headwind. Higher volume was driven by the company’s growth portfolio, and particularly the new active ingredients Isoflex™ and fluindapyr, which generated sales approaching $130 million.

On a GAAP basis, the company reported full-year net income of $342 million, down 74 percent versus the previous year due to one-time tax benefits reported in the prior year fourth quarter. Consolidated earnings of $2.72 per diluted share represents a year-over-year decrease of 74 percent. Full-year adjusted earnings were $3.48 per diluted share, a decrease of 8 percent compared to 2023.

On a GAAP basis, cash flow from operations was $737 million, an increase of $1.04 billion versus 2023, primarily due to rebuilding of payables and a reduction in inventory. Free cash flow in 2024 was $614 million, an increase of $1.14 billion versus 2023, primarily due to increased cash from operations.

Full Year 2025 Outlook2

Full year 2025 revenue is forecasted to be in the range of $4.15 billion to $4.35 billion, essentially flat at the midpoint and an increase of 3 percent after adjusting for approximately $110 million of lost sales from divestiture of the GSS business. Volume is expected to improve as increases in growth portfolio sales more than offset weaker demand in the channel as customers in many countries prioritize holding lower-than-historical levels of inventory. Price is expected to decline in the low-to-mid-single digits with the vast majority driven by price adjustments in certain “cost-plus” contracts with certain diamide partners as a result of lower manufacturing costs. FX is expected to be a low-to-mid-single digit headwind. 

Full year adjusted EBITDA is expected to be between $870 million and $950 million, an increase of 1 percent to prior year at the midpoint and up 4 percent after adjusting for approximately $25 million of lost EBITDA from the GSS sale. Favorable COGS of $175 million to $200 million and a modest volume gain are expected to be mostly offset by lower price, an approximately $65 million to $75 million FX headwind, and an increase in selling costs as the company invests in new routes to market. The range for 2025 adjusted EPS is expected to be $3.26 to $3.70 per diluted share, flat to the prior year at the midpoint. Full-year free cash flow is expected to be $200 million to $400 million, a decline of $314 million versus 2024 at the midpoint as the free cash flow conversion normalizes following the outsized recovery in 2024.

First Quarter 2025 Outlook2

First quarter revenue is expected to be in the range of $750 million to $800 million, a 16 percent decline at the midpoint compared to first quarter 2024. Volume is expected to be lower as customers in many countries continue to reduce inventory and purchases are made cautiously by retailers and growers in an environment of lower commodity prices. Price is expected to be a mid-to-high-single digit headwind, primarily due to the contract adjustments to certain diamide partners. FX is forecasted to be a mid-single digit headwind. Adjusted EBITDA is expected to be in the range of $105 million to $125 million, a decline of 28 percent at the midpoint versus the prior-year period as lower price and FX headwinds are partially offset by lower costs mainly in COGS. Adjusted EPS is expected to be in the range of $0.05 to $0.15, representing a decline of 72 percent at the midpoint versus first quarter 2024 caused by the reduction in adjusted EBITDA.
 

^Adjusted EPS estimates assume 125.6 million diluted shares for full year and 125.6 million diluted shares for Q1. Outlook for Adjusted EPS and WADSO does not include the impact of any share repurchases that may take place in 2025.

*Percentages are calculated using whole numbers. Minor differences may exist due to rounding.

Website: http://www.fmccrop.com

Published: February 4, 2025