FMC (FMC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 9% year-over-year to $1,065–$1,070 million, driven by strong volume growth in North and Latin America, despite pricing pressure and cost headwinds.

• GAAP net income was $65–$66 million, reversing a prior year loss, with adjusted EBITDA up 15% to $201 million.

• New product launches, especially fungicides with fluindapyr and strong diamide sales, contributed significantly to growth.

• Restructuring actions, including Project Focus, delivered above-target cost savings and offset cost of goods sold headwinds.

• Free cash flow for Q3 was $132 million, up from $32 million in Q3 2023, with year-to-date improvement over $1 billion.

Financial highlights

• Adjusted EBITDA for Q3 was $201–$201.4 million (+15% YoY); adjusted EBITDA margin improved to 18.9%.

• Adjusted EPS was $0.69, up 57% year-over-year; GAAP EPS was $0.52.

• Gross margin for Q3 was $386.4 million (36–36.3% of revenue), down from 39% YoY.

• Free cash flow for Q3 was $132 million; full-year guidance is $400–$500 million.

• Total debt at September 30, 2024, was $4.07 billion; net debt $3.7 billion.

Outlook and guidance

• Full-year 2024 revenue expected at $4.33–$4.44 billion, down 2% at midpoint; adjusted EBITDA at $885–$915 million (–8% YoY); adjusted EPS at $3.16–$3.52 (–12% YoY).

• Q4 2024 revenue expected at $1.30–$1.41 billion, up 19% at midpoint; adjusted EBITDA of $321–$351 million; adjusted EPS of $1.47–$1.83.

• Project Focus restructuring expected to deliver $125–$150 million in 2024 EBITDA contributions and over $225 million in annual run-rate savings by end of 2025.

• Free cash flow for 2024 projected at $400–$500 million, excluding GSS sale proceeds.

• 2025 guidance anticipates ~6% revenue growth and cost savings at the high end of the $150–$200 million range.