FMC (FMC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 2% year-over-year to $1.04 billion, with strong volume gains in North and Latin America, but declines in EMEA and Asia due to destocking and pricing pressure.

• GAAP net income surged to $295 million, driven by a $300 million Swiss tax benefit and insurance gain, with adjusted EBITDA up 8% to $202 million.

• Restructuring actions and Project Focus delivered cost savings, margin expansion, and targeted $75–$100 million in 2024 benefits.

• New product introductions, especially in herbicides and insecticides, supported sales growth and improved order books.

• Agreement to sell Global Specialty Solutions business for $350 million, expected to close by year-end.

Financial highlights

• Q2 adjusted EBITDA was $202 million (up 8% YoY), with margin at 19.4%; adjusted EPS was $0.63 (up 26% YoY); GAAP EPS was $2.35, up 879% due to tax benefit.

• Free cash flow in Q2 was $280 million, up $187 million YoY, driven by inventory reduction and strong collections.

• Gross margin for Q2 was $398 million (38% of revenue, down from 43% YoY).

• Cash from operations reached $316 million in Q2, up from $132 million last year.

• Gross debt at June 30, 2024, was $4.18 billion; net debt/EBITDA at 4.7x; covenant leverage at 5.4x vs. 6.5x limit.

Outlook and guidance

• Full-year 2024 revenue guidance is $4.30–$4.50 billion, down 2% at midpoint; adjusted EBITDA $880–$940 million, down 7% at midpoint; adjusted EPS $3.02–$3.64, down 12% at midpoint.

• Q3 revenue expected at $1.00–$1.09 billion (up 6% YoY); Q4 at $1.34–$1.45 billion (up 22% YoY); H2 sales expected to rise 15% YoY.

• Free cash flow for 2024 expected at $400–$500 million, a nearly $1 billion improvement over 2023.

• Project Focus to deliver $75–$100 million in 2024 adjusted EBITDA, with $150 million+ run-rate savings by 2025.

• 2025 revenue growth expected around 6% (excluding GSS), with $150–$200 million in cost favorability and new product launches.