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Jun 30, 2024
FMC Q2 2024 Earnings Report
FMC reported second quarter earnings at the higher end of guidance, driven by volume growth and restructuring savings, while updating the full-year outlook to reflect a more modest market recovery.
Key Takeaways
FMC Corporation reported Q2 2024 revenue of $1.04 billion, a 2% increase compared to Q2 2023, and a GAAP income of $2.35 per diluted share, up 879% versus Q2 2023. Adjusted earnings per diluted share were $0.63, a 26% increase versus Q2 2023. The company has updated its full-year 2024 revenue outlook to $4.30 to $4.50 billion.
Revenue reached $1.04 billion, a 2% increase versus Q2 2023 (4% organically).
GAAP net income was $295 million.
Adjusted EBITDA was $202 million, an 8% increase versus Q2 2023.
Adjusted earnings per diluted share reached $0.63, a 26% increase versus Q2 2023.
FMC
FMC
Forward Guidance
FMC has updated its full-year 2024 revenue outlook to be in the range of $4.30 billion to $4.50 billion, representing a decrease of 2% at the midpoint versus 2023. The company has reduced full-year adjusted EBITDA guidance to a range of $880 million and $940 million, a 7% decline at the midpoint versus both prior year and prior guidance, due to the lower revenue outlook. The revised 2024 adjusted earnings outlook is now $3.02 to $3.64 per diluted share, representing a year-over-year decrease of 12% at the midpoint due primarily to lower earnings.
Positive Outlook
- Mid-single digit volume growth is expected.
- Benefits from restructuring are now expected to contribute $75 million to $100 million, net of inflation, to full-year adjusted EBITDA.
- Sales in the second half of 2024 are expected to be in the range of $2.34 billion to $2.54 billion, a 15 percent increase at the midpoint versus prior year.
- Higher volume from strong growth of new products and improving market conditions are expected to more than offset low-single digit pricing pressure and FX headwinds.
- Adjusted EBITDA in the second half is forecasted to be $518 million to $578 million, representing growth of 28 percent at the midpoint versus the second half of 2023.
Challenges Ahead
- Revenue outlook reflects a 2 percent decline at the midpoint versus 2023.
- Adjusted EBITDA range reflects a 7 percent decline at the midpoint versus 2023.
- Adjusted earnings per diluted share outlook reflects a 12 percent decline at the midpoint versus 2023.
- Revised revenue guidance is 4 percent lower at the midpoint versus prior guidance to reflect lower first half sales and delayed demand recovery.
- Lower price on a year-on-year basis.