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Dec 31, 2024
FMC Q4 2024 Earnings Report
FMC's Q4 2024 earnings benefited from sales growth and cost favorability, with a strong year of cash generation.
Key Takeaways
FMC Corporation reported a 7% increase in revenue for Q4 2024, reaching $1.22 billion. Adjusted earnings per share increased by 67% to $1.79. The company's performance was driven by volume growth, particularly from its growth portfolio, and cost discipline, despite headwinds from FX impacts and lower pricing.
Revenue increased by 7% versus Q4 2023, and 12% organically.
Adjusted EBITDA increased by 33% versus prior year, exceeding guidance midpoint.
Adjusted earnings per diluted share increased by 67% versus Q4 2023.
Sales of products launched in the last five years increased by 24%.
FMC
FMC
Forward Guidance
FMC expects full year 2025 revenue to be between $4.15 billion and $4.35 billion, and adjusted EBITDA to be between $870 million and $950 million. Adjusted EPS is expected to be $3.26 to $3.70 per diluted share. Free cash flow is forecasted to be $200 million to $400 million.
Positive Outlook
- Revenue expected to be essentially flat to prior year at the midpoint; growth of 3 percent, excluding the impact of the Global Specialty Solutions (GSS) business divestiture
- Adjusted EBITDA expected to increase of 1 percent versus prior year at the midpoint and an increase of 4 percent excluding the impact from the GSS divestiture
- COGS tailwinds of $175 million to $200 million expected due to raw material deflation, favorable fixed cost absorption and further benefits from restructuring actions
- Adjusted earnings per diluted share expected to be flat at the midpoint to the prior year
- Volume is expected to improve as increases in growth portfolio sales more than offset weaker demand in the channel
Challenges Ahead
- Free cash flow is forecasted to reflect a decline of 51 percent at the midpoint
- Price is expected to decline in the low-to-mid-single digits with the vast majority driven by price adjustments in certain “cost-plus” contracts with certain diamide partners as a result of lower manufacturing costs.
- FX is expected to be a low-to-mid-single digit headwind.
- First quarter revenue is expected to decline 16 percent at the midpoint compared to first quarter 2024.
- Adjusted EBITDA is expected to decline of 28 percent at the midpoint versus the prior-year period