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Mar 31, 2024
FMC Q1 2024 Earnings Report
FMC delivered first quarter earnings at higher end of guidance range and maintained full year outlook.
Key Takeaways
FMC Corporation reported a first quarter 2024 revenue of $918 million, a 32 percent decrease compared to the first quarter of 2023. The company experienced a GAAP net loss of $3 million, and adjusted earnings per diluted share were $0.36, down 80 percent versus Q1 2023. Despite sales being impacted by customer inventory management, free cash flow improved significantly, and adjusted EBITDA was at the high end of the guidance range, benefiting from restructuring actions and resilient new product sales in Latin America.
Revenue of $918 million, down 32 percent versus Q1 2023 and down 31 percent organically.
Consolidated GAAP net loss of $3 million, down 102 percent versus Q1 2023.
Adjusted earnings per diluted share of $0.36, down 80 percent versus Q1 2023.
GAAP cash from operations of negative $143 million, an improvement of $708 million versus Q1 2023.
FMC
FMC
Forward Guidance
FMC is maintaining its full-year adjusted EBITDA guidance of $900 million to $1.05 billion, flat versus 2023, including the benefit of cost restructuring actions. The 2024 adjusted earnings outlook is unchanged at $3.23 to $4.41 per diluted share, representing a year-over-year increase of 1 percent at the midpoint. The company is maintaining its full-year free cash flow guidance in the range of $400 million to $600 million, representing over $1 billion in year-over-year improvement at the midpoint.
Positive Outlook
- Full-year 2024 revenue to be in the range of $4.50 billion to $4.70 billion, representing an increase of 2.5 percent at the midpoint versus 2023.
- Full-year adjusted EBITDA guidance of $900 million to $1.05 billion, flat versus 2023, including the benefit of cost restructuring actions.
- Adjusted earnings outlook is unchanged at $3.23 to $4.41 per diluted share, representing a year-over-year increase of 1 percent at the midpoint.
- Full-year free cash flow guidance in the range of $400 million to $600 million, representing over $1 billion in year-over-year improvement at the midpoint.
- Second quarter revenue is expected to be in the range of $1.00 billion to $1.15 billion, an increase of 6 percent at the midpoint compared to second quarter 2023.
Challenges Ahead
- Price is expected to be a mid-single digit headwind.
- COGS headwinds are forecasted in the second half of the year primarily due to lower fixed cost absorption.
- Sales continued to be impacted by inventory management actions by customers in all regions.
- First quarter revenue was driven by 27 percent decline in volume due to ongoing channel destocking in all regions.
- Price was lower by 4 percent and foreign currency was a headwind of 1 percent.