FMC 2025 Q2 Earnings Misses Targets with Net Income Down 77%

FMC Corporation reported its fiscal 2025 Q2 earnings on July 31, 2025, showing a revenue increase of 1.2% to $1.05 billion, up from $1.04 billion in 2024 Q2. However, the company's earnings fell short of expectations, with net income declining 77% compared to the previous year. Despite this, FMC maintained its full-year guidance, projecting revenue between $4.08 billion and $4.28 billion, excluding India. Adjusted EBITDA is expected to remain between $870 million and $950 million, while adjusted EPS is projected to range from $3.26 to $3.70. The company's strategic decision to divest its India commercial business is anticipated to impact future financial reporting.

Revenue

FMC's total revenue for Q2 2025 saw a modest increase of 1.2%, reaching $1.05 billion compared to $1.04 billion in the same quarter the previous year. The revenue was bolstered by $525.30 million from Insecticides, $376 million from Herbicides, $80.40 million from Fungicides, $44.90 million from Plant Health, and $23.90 million from other segments. These figures collectively contributed to the overall revenue, reflecting specific segment performances.

Earnings/Net Income

FMC's earnings per share (EPS) dropped significantly by 77.4%, falling to $0.53 in Q2 2025 from $2.35 in Q2 2024. Concurrently, the company's net income plummeted to $67.80 million in Q2 2025, a 77.0% decrease from the $295.20 million reported in the previous year. The sharp decline in EPS underscores a challenging financial performance.

Price Action

The stock price of FMC has tumbled 8.08% during the latest trading day, has dropped 7.69% during the most recent full trading week, and has dropped 6.49% month-to-date.

Post-Earnings Price Action Review

Following a quarter-over-quarter revenue increase, the strategy of purchasing FMC shares on the earnings release date and holding for 30 days has significantly underperformed. Over the past three years, this approach yielded a return of -57.83%, starkly trailing behind the benchmark return of 89.61%. The strategy's compound annual growth rate was -15.91%, illustrating a pattern of consistent losses. Despite no maximum drawdown, the initial investment loss was substantial, highlighting the risk associated with this approach. This performance emphasizes the volatility and potential downside of investing based solely on revenue growth, despite the initial positive financial indicator.

CEO Commentary

"FMC Corporation delivered strong second quarter results, achieving revenue of $1.05 billion with 2 percent organic growth, primarily driven by a 6 percent volume increase. Although GAAP net income decreased 77 percent due to prior year tax incentive gains, adjusted earnings per diluted share rose 10 percent, reflecting improved adjusted EBITDA of $207 million. Our strategic focus remains on managing cost pressures and optimizing our product portfolio, particularly in North America and EMEA, where we saw significant growth. While challenges persist in Asia, our commitment to innovation and market presence remains strong." - Mark Douglas, CEO.

Guidance

FMC Corporation reaffirmed its full-year 2025 revenue outlook of $4.08 billion to $4.28 billion, excluding India, marking a 2 percent decline at the midpoint compared to the prior year. The adjusted EBITDA guidance is maintained between $870 million and $950 million, showing a year-over-year increase of 1 percent at the midpoint. Adjusted earnings per diluted share remain unchanged, projected at $3.26 to $3.70. For the third quarter, the company anticipates revenue excluding India to range from $1.00 billion to $1.10 billion, with expected volume growth counterbalancing mid-single-digit price headwinds.

Additional News

FMC Corporation recently announced its intention to divest its India commercial business, a strategic move aimed at addressing ongoing challenges in the region. This decision allows FMC to focus on supply agreements for its patented and data-protected portfolio, ensuring continued market presence in India. The sale process is currently underway and expected to conclude within the next year. Additionally, FMC's Board of Directors has approved this divestiture, showcasing the company's commitment to optimizing operations and maintaining competitiveness. This strategic decision highlights FMC's proactive approach in tackling regional market difficulties and aligning its business strategy for future growth.