FMC Corporation (NYSE:FMC) Q1 2025 Earnings Conference Call May 1, 2025 9:00 AM ET Company Participants Curt Brooks - Director of IR Pierre Brondeau - Chairman and CEO Andrew Sandifer - EVP and CFO Ronaldo Pereira - President Conference Call Participants Aleksey Yefremov - KeyBanc Joel Jackson - BMO Capital Edgar Rodriguez - Mizuho Daniel Rizzo - Jefferies Chris Parkinson - Wolfe Research Benjamin Theurer - Barclays Patrick Cunningham - Citigroup Vincent Andrews - Morgan Stanley Lucas Beaumont - UBS Frank M ...

Guidance spooks FMC investors despite a big earnings beat last night.FMC (FMC -7.13%) stock tumbled 6.5% through 10:55 a.m. ET this morning, despite soundly beating earnings expectations last night.Heading into the quarterly report, analysts expected FMC to earn $0.09 per share, adjusted for one-time items, on $784 million in revenue. In fact, FMC earned twice what it was "supposed to" -- $0.18 per share, and its sales came in at a strong $791.4 million. FMC Q1 earningsBut it's hard to call FMC's news "good ...

Financial Data and Key Metrics Changes - Company sales declined 14% year-over-year, with pricing down 9% and volume down 1% [16][17] - First quarter EBITDA declined 25% due to lower pricing and FX headwinds [21] - Free cash flow in the first quarter was negative $596 million, significantly lower than the prior year [35] Business Line Data and Key Metrics Changes - The Plant Health business outperformed the portfolio with sales up 1% year-over-year, driven by biologicals [17] - North America experienced a sales decline of 28%, primarily due to lower volume from cautious purchases [18] - Latin America grew 17% excluding FX headwinds, with increased direct sales to cotton growers in Brazil [19] Market Data and Key Metrics Changes - A strong U.S. Dollar led to a 4% FX headwind [31] - Asia saw a sales decline of 21% excluding currency impacts, driven by prudent selling and lower prices [20] - EMEA reported 7% lower sales excluding currency impact due to lower volumes [20] Company Strategy and Development Direction - The company is focusing on reducing channel inventory and implementing a post-patent strategy for Renexapia [6][11] - A new route to market in Brazil is being established to sell directly to large corn and soybean growers, expected to provide significant growth opportunities [11][12] - The growth portfolio is positioned to deliver strong growth with new active ingredients expected to perform well in 2025 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial objectives for 2025, with expectations for significant momentum in the second half of the year [38] - The company anticipates revenue growth of 7% in the second half, driven by new products and the new route to market in Brazil [29] - Management noted that the impact of tariffs is manageable and will not significantly hinder reaching 2025 goals [28] Other Important Information - The effective tax rate on adjusted earnings was 14% in the first quarter, with expectations for a full-year rate of 13% to 15% [33] - Gross debt increased to approximately $4 billion due to seasonal working capital build [34] - The company expects free cash flow of $200 million to $400 million for 2025, a decrease from the prior year [35] Q&A Session Summary Question: Price trends in the crop protection market outside of diamides - Management indicated that pricing comparisons will ease in the second half of the year, with expectations for more stability [41][42] Question: Guidance on strong growth in the second half of the year - Management expressed high confidence in revenue growth driven by new products and a healthy channel situation starting in Q3 [46][49] Question: Actions to offset tariff impacts - Management clarified that cost-saving actions were planned regardless of tariffs and that they are confident in offsetting the tariff headwinds [54][56] Question: Reducing channel inventories - Management explained that they shifted focus to promoting products directly to growers, avoiding the need for significant rebates or discounts [62] Question: Updates on the DaiMod strategy - Management confirmed that pricing is lower compared to last year, and they are confident in maintaining competitiveness with generic manufacturers [66][68] Question: Customer order patterns - Management noted that customer orders are picking up speed in Q2, with a positive outlook for demand [82][84] Question: Differences between selling directly to farmers and through the channel - Management indicated that EBIT margins are similar for both sales methods, with cash conversion linked more to regional dynamics [88][90] Question: Second half EBITDA bridge - Management explained that the pricing and FX headwinds are interconnected, with expectations for a lower impact in the second half [94][96] Question: Impact of the new route to market in Brazil - Management confirmed that the new sales organization is in place and expects positive results in Q3 [106][108]

Financial Data and Key Metrics Changes - Company sales declined 14% year-over-year, with pricing down 9% and volume down 1% [17][18] - First quarter EBITDA declined 25% due to lower pricing and FX headwinds [21] - Free cash flow in the first quarter was negative $596 million, significantly lower than the prior year [33] Business Line Data and Key Metrics Changes - The Plant Health business outperformed the portfolio with sales up 1% year-over-year, driven by biologicals [18] - North America experienced a sales decline of 28%, primarily due to lower volume from cautious purchases [19] - Latin America grew 17% excluding FX headwinds, with increased direct sales to cotton growers in Brazil [19] Market Data and Key Metrics Changes - A strong U.S. Dollar led to an FX headwind of 4% [18] - Asia reported a sales decline of 21% excluding currency impacts, driven by intentional prudent selling [20] - EMEA reported 7% lower sales excluding currency impact due to lower volumes [20] Company Strategy and Development Direction - The company is focusing on decreasing product in the channel to align with customer inventory levels and implementing a post-patent strategy for Renexapia [7][8] - A new route to market in Brazil is being established to sell directly to large corn and soybean growers, expected to provide significant growth opportunities [12] - The growth portfolio is positioned to deliver strong growth with new active ingredients expected to perform well in 2025 [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial objectives for 2025, with expectations for significant momentum in the second half of the year [36] - The company anticipates revenue growth of 7% in the second half, driven by new products and the new route to market in Brazil [28] - Management noted that the impact of recently announced tariffs is manageable and will not significantly hinder reaching 2025 goals [27] Other Important Information - The effective tax rate on adjusted earnings was 14% in the first quarter, in line with expectations for the full year [31] - Gross debt increased to approximately $4 billion due to seasonal working capital build [32] - The company expects free cash flow of $200 million to $400 million for 2025, a decrease from the prior year [33] Q&A Session Summary Question: Price trends in the crop protection market outside of diamides - Management indicated that pricing comparisons will ease in the second half of the year, with expectations for more stability [40][42] Question: Guidance on strong growth in the second half of the year - Management expressed high confidence in revenue growth driven by new products and a healthy channel situation starting in Q3 [46][48] Question: Actions to offset tariff impacts - Management clarified that cost-saving actions were planned regardless of tariffs and are expected to be at the higher end of projections [53][56] Question: Reducing channel inventories - Management explained that reducing channel inventories involved shifting focus to end users without significant rebates or discounts [62] Question: Updates on the DaiMod strategy - Management confirmed ongoing cost reductions and confidence in growth run rates despite the upcoming patent expirations [66] Question: Alternatives for sourcing raw materials impacted by tariffs - Management highlighted flexibility in the supply chain with multiple sources for critical raw materials to limit tariff impacts [71][74] Question: Customer order patterns - Management noted that customer orders are picking up speed in Q2, with a positive dynamic observed in Europe [82] Question: Differences between selling directly to farmers and through the channel - Management indicated that the EBIT margin is similar for both sales methods, with cash conversion linked more to regional operations [86][88] Question: Second half EBITDA bridge - Management explained that the pricing and FX headwinds are interconnected, with expectations for a lower impact in the second half [94]

FMC Corporation (FMC) reported a loss of 12 cents per share for first-quarter 2025. This compares unfavorably to loss of 2 cents incurred in the year-ago quarter.Barring one-time items, adjusted earnings per share were 18 cents, beating the Zacks Consensus Estimate of 8 cents.Revenues were $791.4 million in the quarter, down around 13.8% from the year-ago quarter’s levels. The top line beat the Zacks Consensus Estimate of $779 million.The top line fell due to a price decline of 9%, more than half of which w ...

FMC (FMC) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 125%. A quarter ago, it was expected that this chemical producer would post earnings of $1.61 per share when it actually produced earnings of $1.79, delivering a surprise of 11.18%.Over the last four quarters, the company has s ...

Q1 2025 Financial Results - Revenue decreased by 14% from Q1 2024, totaling $791 million compared to $918 million[9] - GAAP Net Loss was $(16) million, a decrease of $(13) million compared to Q1 2024's $(3) million[9] - Adjusted EBITDA decreased by 25% to $120 million, compared to $161 million in Q1 2024[9] - Adjusted EPS decreased by 50% to $0.18, compared to $0.36 in Q1 2024[9] Regional Revenue Performance - North America revenue decreased by 10% organically, or 27% excluding FX, to $207 million[14] - Latin America revenue decreased by 28% year-over-year, but increased by 17% excluding FX, reaching $186 million[14] - Asia revenue decreased by 24% year-over-year, or 21% excluding FX, to $125 million[14] - EMEA revenue decreased by 11% year-over-year, or 7% excluding FX, to $273 million[14] 2025 Financial Outlook - Q2 2025 revenue is projected to be between $104 billion and $1.10 billion, a decrease of 2% year-over-year[25] - Q2 2025 Adjusted EBITDA is expected to be between $175 million and $205 million, a decrease of 6% year-over-year[25] - FY 2025 revenue is projected to be between $4.15 billion and $4.35 billion, flat year-over-year or up 3% excluding GSS[27] - FY 2025 Adjusted EBITDA is projected to be between $870 million and $950 million, up 1% year-over-year or 4% excluding GSS[27] Tariff Impact - The company estimates $15 million to $20 million of direct incremental costs in 2025 due to tariffs[30]

Exhibit 99.1 FMC Corporation 2929 Walnut Street Philadelphia, PA 19104 USA 215.299.6000 fmc.com • Revenue of $791 million, down 14 percent versus Q1 2024, down 10 percent organically 1 • Consolidated GAAP net loss of $16 million, a decline of $13 million versus Q1 2024 • Adjusted EBITDA of $120 million, down 25 percent versus Q1 2024 • Consolidated GAAP loss of $0.12 per diluted share, down 10 cents versus Q1 2024 • Adjusted earnings per diluted share of $0.18, down 50 percent versus Q1 2024 Media contact: ...

Core Insights - FMC Corporation reported a first quarter 2025 revenue of $791 million, a decrease of 14% compared to Q1 2024, with an organic decline of 10% [1][12] - The company experienced a GAAP net loss of $16 million, translating to a loss of $0.12 per diluted share, which is a decrease of $0.10 from the previous year [1][12] - Adjusted earnings per diluted share were $0.18, down 50% from Q1 2024 [1][12] Revenue and Sales Performance - First quarter sales were largely in line with expectations, with a focus on aligning inventory levels with customer targets [2] - Revenue decline was primarily driven by a 9% price decrease, with over half attributed to price adjustments in specific contracts due to lower manufacturing costs [2] - North America sales fell by 28%, while Latin America saw a 10% increase, and Asia experienced a 24% decline [3] Financial Metrics - Adjusted EBITDA for Q1 2025 was $120 million, down 25% from the prior year, influenced by lower pricing and reduced volume [4][12] - Cash from operations was negative $545 million, a decline of $402 million compared to Q1 2024, primarily due to less inventory reduction [5][12] - Free cash flow was negative $596 million, reflecting a decline of 51% at the midpoint from the previous year [12] Outlook - The company maintains its full-year 2025 revenue guidance of $4.15 billion to $4.35 billion, indicating flat growth at the midpoint compared to the prior year [6][12] - For Q2 2025, revenue is expected to range from $940 million to $1.10 billion, representing a 2% decline at the midpoint compared to Q2 2024 [7] - The second half of 2025 is projected to see a 7% increase in sales and an 11% increase in adjusted EBITDA compared to the same period last year [8][9]

Core Viewpoint - FMC Corporation has elected Steven Merkt to its Board of Directors, effective April 29, 2025, to enhance its strategic growth initiatives in the agricultural sciences sector [1][2]. Company Overview - FMC Corporation is a global agricultural sciences company focused on providing solutions for food, feed, fiber, and fuel production while adapting to environmental changes [4]. - The company emphasizes innovation in crop protection solutions, including biologicals, crop nutrition, and digital agriculture, to help growers tackle challenges economically and sustainably [4]. Leadership Appointment - Steven Merkt brings over 30 years of experience in international manufacturing, operational excellence, cybersecurity, and corporate governance [2][3]. - His previous role as president of the Transportation Solutions segment at TE Connectivity from 2012 to 2024 involved significant profitability growth and the development of a robust innovation pipeline [2]. - Merkt has held senior leadership positions in various sectors, including automotive, and has experience in managing complex Board governance issues [3]. Strategic Goals - The addition of Merkt to the Board is expected to provide valuable insights and leadership as FMC aims to strengthen its position as a global leader in agricultural sciences [2]. - Merkt expressed his commitment to accelerating FMC's mission and driving growth while ensuring operational excellence [4].