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Mar 31, 2023

FMC Q1 2023 Earnings Report

FMC delivered solid first quarter results and raised full-year adjusted EBITDA and adjusted EPS guidance.

Key Takeaways

FMC Corporation reported first quarter 2023 revenue of $1.34 billion, flat versus first quarter 2022, and up 4 percent organically. The company reported earnings of $1.55 per diluted share in the first quarter, a decrease of 6 percent versus first quarter 2022. First quarter adjusted earnings were $1.77 per diluted share, down 6 percent versus first quarter 2022.

Revenue of $1.34 billion, flat versus Q1 2022 and up 4 percent organically

Consolidated GAAP net income of $196 million, down 7 percent versus Q1 2022

Adjusted EBITDA of $362 million, up 2 percent versus Q1 2022

Consolidated GAAP earnings of $1.55 per diluted share, down 6 percent versus Q1 2022

Total Revenue
$1.34B
Previous year: $1.35B
-0.5%
EPS
$1.77
Previous year: $1.88
-5.9%
Adjusted EBITDA
$362M
Gross Profit
$581M
Previous year: $573M
+1.5%
Cash and Equivalents
$494M
Previous year: $365M
+35.4%
Free Cash Flow
-$915M
Previous year: -$664M
+37.9%
Total Assets
$11.7B
Previous year: $10.9B
+7.6%

FMC

FMC

Forward Guidance

FMC is raising its full-year adjusted EBITDA guidance by $10 million at the midpoint. Full-year adjusted EBITDA is now expected to be in the range of $1.50 billion to $1.56 billion, representing 9 percent year-over-year growth at the midpoint based on the first quarter performance, continued pricing gains, positive product mix and projected input cost tailwinds. 2023 adjusted earnings range is also increased to $7.34 to $7.94 per diluted share, representing a year-over-year increase of 3 percent at the midpoint. The company is maintaining full-year free cash flow guidance in the range of $530 million to $720 million.

Positive Outlook

  • Continued pricing gains
  • Positive product mix
  • Projected input cost tailwinds
  • Market access gains
  • Increased forecast of new product growth

Challenges Ahead

  • Lower volumes in select markets
  • FX headwinds
  • Higher interest expense in Q2
  • Dry conditions in Australia
  • Active management of high channel inventory in India