FMC Corp ((FMC)) has held its Q1 earnings call. Read on for the main highlights of the call.
The recent earnings call for FMC Corp presented a mixed sentiment, highlighting both progress and challenges. While the company showcased notable advancements in strategic initiatives and expressed a positive outlook for the latter half of 2025, it also faced significant hurdles in the first quarter. These included sales declines, tariff impacts, and regional performance issues, particularly in North America, Asia, and EMEA.
Strong Progress in Key Focus Areas
FMC Corp reported significant advancements in four critical focus areas during the earnings call. These include aligning channel inventory levels, implementing a post-patent strategy, establishing a new route to market in Brazil, and ensuring resources for the growth portfolio, particularly with Rynaxypyr. These initiatives are expected to bolster the company’s strategic positioning and drive future growth.
New Product Launches and Market Expansion
The company introduced new formulations of Rynaxypyr and Bifenthrin, with expected sales of $200-$250 million in 2025. Additionally, FMC is launching new products in Brazil, targeting large corn and soybean growers, which is anticipated to provide a multi-hundred million dollar growth opportunity. This expansion is a key component of FMC’s growth strategy.
Growth in Plant Health Segment
FMC’s Plant Health business outperformed the portfolio with a 1% sales increase compared to the previous year, driven by biologicals. The recent registration of the Sofero pheromone in Brazil is expected to further boost sales, underscoring the segment’s potential for continued growth.
Positive Outlook for Second Half of 2025
FMC expressed optimism for the second half of 2025, anticipating strong growth driven by new products, a new route to market in Brazil, and improved channel inventory levels. The company expects a revenue growth of 7% and EBITDA growth of 11% during this period, reflecting a robust recovery from early-year challenges.
Sales Decline in Q1 2025
The company experienced a 14% decline in sales during Q1 2025 compared to the previous year, with pricing down 9% and a 4% FX headwind. Volume was down 1%, with North America seeing a significant 28% sales decline due to cautious purchasing patterns.
Impact of Tariffs and FX Headwinds
FMC is contending with a $15-$20 million headwind from newly announced tariffs, alongside a 4% FX headwind to revenue growth in Q1, influenced by the Brazilian real and European currencies. These factors have posed additional challenges to the company’s financial performance.
Challenges in Asia and EMEA
Sales in Asia declined by 21%, and EMEA reported a 7% lower sales, excluding currency impacts. The decline in EMEA was largely attributed to the expected loss of registration for the triflusulfuron herbicide, highlighting regional challenges that the company needs to address.
Forward-Looking Guidance
Despite early challenges, FMC provided a positive outlook for the second half of the year. The company anticipates a 2% revenue decline in the second quarter due to lower pricing and foreign exchange headwinds but expects growth in the latter half driven by cost favorability and new product sales. Full-year sales are projected to be flat, with adjusted EBITDA growing by 1% and adjusted earnings per share remaining flat. Strategic efforts, such as reducing channel inventory and establishing a new route to market in Brazil, are expected to drive future growth.
In conclusion, FMC Corp’s earnings call reflected a mixed sentiment, with both progress and challenges. While the company faced significant hurdles in the first quarter, its strategic initiatives and positive outlook for the second half of 2025 provide a promising path forward. Investors will be keenly watching FMC’s ability to navigate these challenges and capitalize on growth opportunities in the coming months.