FMC (US:FMC)2025-10-30 18:07Financial Performance - Revenue for Q3 2025 was $542.2 million, a decrease of $523.2 million or approximately 49% compared to the prior year, primarily due to one-time commercial actions related to the India business [242]. - Gross margin for Q3 2025 was $128.9 million, down $257.5 million from the prior year, with a gross margin percentage of approximately 24%, down from 36% in the prior year [242]. - Net loss attributable to FMC stockholders was $569.3 million, a decrease of $634.3 million from net income of $65.0 million in the prior year, largely due to one-time commercial actions and an asset impairment charge [242]. - Revenue for the three months ended September 30, 2025, was $542.2 million, a decrease of 49% compared to $1,065.4 million in the same period of 2024 [246]. - Gross margin for the three months ended September 30, 2025, was $128.9 million, down from $386.4 million in 2024, reflecting a significant decline [246]. - The company reported a net loss of $568.6 million for the three months ended September 30, 2025, compared to a net income of $65.6 million in 2024 [246]. - For the nine months ended September 30, 2025, revenue was $2,384.1 million, down $637.7 million or approximately 21% year-over-year, with a 7% decrease excluding the India business [265]. Guidance and Expectations - Adjusted EBITDA for 2025 is expected to be in the range of $830 million to $870 million, down 6% at the midpoint compared to 2024 results [243]. - 2025 revenue guidance, excluding India, is projected to be between $3.92 billion and $4.02 billion, representing a 7% decline at the midpoint versus 2024 [243]. - The company expects adjusted earnings for 2025 to be in the range of $2.92 to $3.14 per diluted share, down 13% at the midpoint compared to 2024 [243]. - For 2025, the company expects full year Adjusted EBITDA to be in the range of $830 million to $870 million, representing a 6% decrease at the midpoint compared to 2024 results [314]. - The company expects 2025 free cash flow (Non-GAAP) to range from approximately negative $200 million to zero, primarily due to lower cash from operations and normalization of working capital after a correction in 2024 [344]. Expenses and Cost Management - Selling, general and administrative expenses increased by approximately 5% to $167.4 million, reflecting investments in new products [242]. - Research and development expenses decreased by 8% to $63.3 million, attributed to the timing of project expenses and cost reduction efforts [242]. - The company incurred restructuring and other charges of $294.5 million for the three months ended September 30, 2025, compared to $22.6 million in 2024 [246]. - Interest expense for the three months ended September 30, 2025, was $64.1 million, an increase from $58.7 million in the same period of 2024 [246]. - Research and development expenses for the three months ended September 30, 2025, were $63.3 million, slightly down from $69.0 million in 2024 [246]. - Interest expense for the three months ended September 30, 2025, increased by $5.4 million or 9% to $64.1 million, driven by higher domestic long-term balances and rates [284]. Debt and Cash Management - Total debt as of September 30, 2025, was $4,542.2 million, an increase from $4,070.0 million in the prior year [262]. - The company completed the sale of $750 million aggregate principal amount of 8.45% Subordinated Notes due November 1, 2055, using proceeds to redeem $500 million of senior notes [318]. - Cash provided by operating activities of continuing operations was $(663.3) million for the nine months ended September 30, 2025, compared to $308.8 million for the same period in 2024 [324]. - Free cash flow for the nine months ended September 30, 2025, was $(788.5) million, a decrease from $224.7 million in 2024 [337]. - The remaining borrowing capacity under the company's credit facility was $808.4 million as of September 30, 2025 [343]. Strategic Initiatives - The company plans to divest its commercial business in India, with assets held for sale valued at approximately $450 million after adjustments [238][239]. - The company intends to reduce its quarterly dividend to $0.08 per share starting December 2025 to prioritize debt reduction [242]. - The company expects to incur pre-tax restructuring charges in the range of approximately $425 million to $475 million related to the Project Focus initiative, with substantial completion expected by the end of 2025 [287]. - The company anticipates restructuring and asset retirement obligation payments of approximately $90 million to $110 million in 2025, with total pre-tax restructuring charges expected to be between $425 million and $475 million over the program's life [349]. - The company has established plans to repatriate cash from certain foreign subsidiaries with minimal tax implications going forward [316]. Environmental and Capital Expenditures - Projected total environmental spending for 2025 is expected to be between $75 million and $95 million, including approximately $35 million to $45 million for continuing operations and $40 million to $50 million for discontinued sites [348][347]. - 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 [350].