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Sep 30, 2023

FMC Q3 2023 Earnings Report

FMC's Q3 2023 results were significantly impacted by lower sales in Latin America and channel destocking in all regions.

Key Takeaways

FMC Corporation reported a 29% decrease in revenue to $982 million compared to Q3 2022, driven by volume headwinds from channel destocking, particularly in Brazil. The company reported a GAAP net loss of $4 million, or $0.03 per diluted share, and adjusted earnings of $0.44 per diluted share, a 64% decrease year-over-year.

Revenue decreased by 29% to $982 million compared to Q3 2022, with a 29% organic decline.

Consolidated GAAP net loss was $4 million, a 103% decrease compared to Q3 2022.

Adjusted EBITDA decreased by 33% to $175 million compared to Q3 2022.

Adjusted earnings per diluted share were $0.44, a 64% decrease compared to Q3 2022.

Total Revenue
$982M
Previous year: $1.38B
-28.7%
EPS
$0.44
Previous year: $1.23
-64.2%
Adjusted EBITDA
$175M
Gross Profit
$381M
Previous year: $478M
-20.2%
Cash and Equivalents
$324M
Previous year: $364M
-11.0%
Total Assets
$11B
Previous year: $10.8B
+1.8%

FMC

FMC

Forward Guidance

FMC is forecasting full-year 2023 revenue to be in the range of $4.48 billion to $4.72 billion, full-year adjusted EBITDA is expected to be in the range of $0.97 billion to $1.03 billion, and adjusted earnings range is lowered to $3.57 to $4.13 per diluted share.

Positive Outlook

  • Full-year 2023 revenue to be in the range of $4.48 billion to $4.72 billion.
  • Full-year adjusted EBITDA is expected to be in the range of $0.97 billion to $1.03 billion.
  • Adjusted earnings range is lowered to $3.57 to $4.13 per diluted share.
  • Fourth quarter revenue is expected to be in the range of $1.14 billion to $1.38 billion.
  • Adjusted EBITDA is forecasted to be in the range of $246 million to $306 million.

Challenges Ahead

  • Full-year 2023 revenue reflects a 21 percent decline at the midpoint versus 2022.
  • Full-year adjusted EBITDA represents 29 percent decline year-over-year at the midpoint.
  • The forecast for the 2023 adjusted earnings range represents a year-over-year decrease of 48 percent at the midpoint.
  • The company is lowering full-year free cash flow guidance to a range of negative $860 million to negative $640 million.
  • Fourth quarter revenue represents a 22 percent decrease at the midpoint compared to fourth quarter 2022.