FMC (US:FMC)2025-05-01 18:11Revenue and Sales Performance - Revenue for Q1 2025 was $791.4 million, a decrease of $126.6 million or approximately 14% compared to the prior year, primarily due to pricing declines and lower volumes in all regions except Latin America [204]. - Sales in North America decreased by approximately 28%, while Latin America saw an increase of approximately 10% in Q1 2025 [204]. - Organic revenue change for Q1 2025 was a decline of 10% after accounting for foreign currency impacts [213]. - Revenue for the three months ended March 31, 2025, was $791.4 million, a decrease of $126.6 million or approximately 14% compared to the prior year, primarily due to a 9% price decline and lower volumes in all regions except Latin America [218]. Profitability and Earnings - Gross margin for Q1 2025 was $316.7 million, down $23.0 million from the prior year, but gross margin as a percentage of revenue improved to approximately 40% from 37% in the prior year due to lower raw material costs [204]. - Adjusted after-tax earnings from continuing operations for Q1 2025 were $22.4 million, a decrease of approximately 51% from $45.4 million in the prior year [204]. - Adjusted EBITDA for the three months ended March 31, 2025, was $119.7 million, a decrease of $40.9 million or approximately 25% year-over-year, impacted by unfavorable pricing and reduced volumes [241]. - The net loss for the three months ended March 31, 2025, was $15.6 million, compared to a net loss of $3.1 million in the prior year, influenced by lower sales and increased expenses [238]. Expenses and Cost Management - Selling, general and administrative expenses increased by approximately 5% to $172.0 million in Q1 2025, while research and development expenses rose by 13% to $68.7 million [204]. - Selling, general and administrative expenses increased by $8.1 million or 5% to $172.0 million, primarily due to investments in new products and an expanded sales force in Brazil [225]. - Research and development expenses rose by $7.8 million or 13% to $68.7 million, reflecting increased spending on project expenses [226]. - Restructuring charges for the three months ended March 31, 2025, totaled $13.6 million, down from $33.7 million in the prior year, as part of the Project Focus initiative [229]. Debt and Cash Flow - Total debt as of March 31, 2025, was $4,003.5 million, down from $4,335.7 million in the prior year [216]. - Cash provided by operating activities of continuing operations was $(545.0) million for the three months ended March 31, 2025, compared to $(142.9) million for the same period in 2024 [251]. - Free cash flow for the three months ended March 31, 2025, was $(595.7) million, significantly lower than $(187.8) million in 2024, primarily due to increased capital expenditures and working capital needs [267]. - Total debt increased to $4,003.5 million as of March 31, 2025, compared to $3,365.3 million at December 31, 2024, with long-term debt remaining relatively stable [246]. Future Projections - The company expects 2025 revenue to be in the range of approximately $4.15 billion to $4.35 billion, essentially flat at the midpoint versus 2024, with a projected increase of 3% excluding the impact of divestitures [205]. - Adjusted EBITDA for 2025 is expected to be between $870 million and $950 million, reflecting a 1% increase at the midpoint compared to 2024 results [205]. - The company expects 2025 free cash flow to range between $200 million and $400 million, reflecting a normalization of working capital after a correction in 2024 [274]. - The company expects to incur approximately $375 million to $425 million in pre-tax restructuring charges over the life of the program, including $90 million to $100 million in non-cash asset write-off charges [279]. Capital Expenditures and Investments - Projected capital expenditures for 2025 are expected to be in the range of approximately $105 million to $115 million, primarily driven by investments in new products [280]. - The company achieved $165 million in cost benefits in 2024, with a targeted annual run-rate savings of more than $225 million by the end of 2025 [279]. Liquidity and Financial Position - The remaining borrowing capacity under the credit facility was $1,095.1 million as of March 31, 2025, providing adequate liquidity to meet debt obligations [248]. - The average effective interest rate on commercial paper borrowings was 5.1% as of March 31, 2025, with outstanding commercial paper increasing to $694.8 million [248]. - The company remains in compliance with all debt covenants and is committed to maintaining solid investment-grade credit metrics [247]. Shareholder Returns - The company paid dividends of $72.7 million and $72.5 million during the three months ended March 31, 2025, and March 31, 2024, respectively, and expects to continue quarterly dividend payments [282]. - The company does not anticipate any share repurchases during 2025, except for purchases associated with equity compensation plans [281].