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Jun 30, 2022
FMC Q2 2022 Earnings Report
FMC delivered solid results, driven by strong pricing actions and robust market demand.
Key Takeaways
FMC Corporation reported a 17% increase in revenue to $1.45 billion for Q2 2022, driven by strong market demand and pricing. The company's adjusted earnings per diluted share increased by 7% to $1.93. FMC raised its full-year revenue guidance to a range of $5.5 to $5.7 billion.
Revenue of $1.45 billion, an increase of 17 percent versus Q2 2021 and up 21 percent organically.
Consolidated GAAP net income of $131 million, down 35 percent versus Q2 2021.
Adjusted EBITDA of $360 million, up 3 percent versus Q2 2021.
Adjusted earnings per diluted share of $1.93, up 7 percent versus Q2 2021.
FMC
FMC
Forward Guidance
Full-year 2022 revenue is now forecasted to be in the range of $5.5 billion to $5.7 billion, representing an increase of 11 percent at the midpoint versus 2021 driven by volume and price growth in all regions partially offset by foreign currency impact in EMEA and Asia.
Positive Outlook
- Full-year 2022 revenue is now forecasted to be in the range of $5.5 billion to $5.7 billion, representing an increase of 11 percent at the midpoint versus 2021 driven by volume and price growth in all regions partially offset by foreign currency impact in EMEA and Asia.
- Full-year adjusted EBITDA range has been narrowed and is now expected to be $1.36 billion to $1.44 billion, representing 6 percent year-over-year growth at the midpoint.
- The range for 2022 adjusted earnings per share is narrowed and it is now expected to be $7.00 to $7.70 per diluted share, representing an increase of 6 percent year-over-year at the midpoint.
- Interest expense is now expected to be $135 million to $155 million.
- Full-year free cash flow is expected to be $565 million to $685 million.
Challenges Ahead
- The company expects the highest cost increases of the year in the third quarter with continued, but lower, cost inflation in the fourth quarter.
- The company’s decision to cease operations and business in Russia will also be a headwind.
- Third quarter revenue is expected to be in the range of $1.31 billion to $1.39 billion, representing a 13 percent increase at the midpoint compared to third quarter 2021.
- Adjusted EBITDA is forecasted to be in the range of $235 million to $255 million, representing a 16 percent decrease at the midpoint versus third quarter 2021.
- FMC expects adjusted earnings per diluted share to be in the range of $1.00 to $1.20 in the third quarter, a decrease of 23 percent at the midpoint versus third quarter 2021.