FMC Corp’s Earnings Call: Growth Amid Challenges

FMC Corp ((FMC)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call of FMC Corp presented a balanced sentiment, highlighting both achievements and challenges. Notable regional growth and successful product launches were offset by significant hurdles in India and pricing pressures. The strategic decision to divest the India business underscores FMC’s proactive approach to addressing these challenges. While cost efficiencies and promising new product registrations offer a positive outlook, regional sales declines and pricing adjustments pose ongoing challenges.

Volume Growth and Revenue Performance

FMC Corp reported a 1% increase in second-quarter sales compared to the previous year, driven by a robust 6% volume growth. The growth portfolio showed a high single-digit increase, reflecting strong expectations for new active ingredients. This performance underscores the company’s ability to leverage its growth portfolio effectively.

Strong Performance in EMEA and Latin America

The EMEA region experienced significant growth, fueled by increased volume sales of herbicides and branded Cyazypyr. Latin America also saw a slight revenue increase as the region wrapped up the 2024-2025 growing season, indicating a positive trajectory in these markets.

Cost Efficiencies and Improved EBITDA

FMC’s adjusted EBITDA for the second quarter rose to $207 million, a 2% increase from the previous year. This improvement was driven by cost efficiencies, including lower raw material costs, better fixed cost absorption, and strategic restructuring actions, highlighting the company’s focus on operational efficiency.

Registration and Launch of New Products

FMC received registration for the fluindapyr herbicide containing Isoflex active in Great Britain, with sales expected to commence in August. Additionally, initial sales of Dodhylex active have begun, with significant sales anticipated by 2027, marking a promising expansion of the company’s product portfolio.

Challenges in India and Decision to Divest

FMC faced considerable challenges in India due to a fragmented distribution channel and intense generic competition. In response, the company decided to divest its commercial business in India, a move expected to reduce risk and free up cash for debt repayment, reflecting a strategic shift to focus on more profitable markets.

North America and Asia Sales Decline

Sales in North America declined by 5%, primarily due to expected destocking in Canada. Similarly, Asia experienced a sales decline driven by ongoing destocking in India, indicating regional challenges that the company needs to address.

Pricing Challenges and FX Headwinds

The second quarter saw a 3% decline in pricing, mainly due to adjustments on diamide partner contracts. Additionally, foreign exchange posed a mild headwind of 1% for the quarter, affecting overall pricing dynamics.

Forward-Looking Guidance

Looking ahead, FMC Corporation’s performance slightly exceeded expectations in the second quarter of 2025, with adjusted EBITDA rising 2% year-over-year to $207 million. For the second half of 2025, the company expects revenue, excluding India, to decrease by 2%, with volume growth counterbalancing mid-single-digit price declines and flat to low single-digit FX headwinds. Adjusted EBITDA is projected to increase by 1% at the midpoint, with a 14% rise anticipated in the third quarter and a 4% increase in the fourth quarter.

In summary, FMC Corp’s earnings call revealed a balanced sentiment with notable achievements in regional growth and product launches, countered by significant challenges in India and pricing pressures. The strategic decision to divest the India business, coupled with cost efficiencies and new product registrations, offers a positive outlook despite regional sales declines and pricing adjustments. Investors will be keenly watching how FMC navigates these challenges and capitalizes on growth opportunities in the coming quarters.