FMC 2025 Q2 Earnings Misses Targets as Net Income Declines 77%

FMC Corporation (FMC) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. 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. 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
The total revenue of FMC increased by 1.2% to $1.05 billion in 2025 Q2, up from $1.04 billion in 2024 Q2.

Earnings/Net Income
FMC's EPS declined 77.4% to $0.53 in 2025 Q2 from $2.35 in 2024 Q2. Meanwhile, the company's net income declined to $67.80 million in 2025 Q2, down 77.0% from $295.20 million reported in 2024 Q2. The sharp decline in EPS indicates a challenging financial performance.

Price Action
The stock price of FMC has edged down 1.27% during the latest trading day, has dropped 5.85% during the most recent full trading week, and has dropped 3.68% month-to-date.

Post-Earnings Price Action Review
The strategy of buying FMC shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days resulted in significant underperformance. Over the past three years, this strategy delivered a return of -57.94%, vastly underperforming the benchmark return of 87.61%. Its excess return was -145.55%, indicating substantial losses during this period. The strategy's compound annual growth rate was -16.00%, suggesting consistent losses over time. Interestingly, the strategy had a maximum drawdown of 0.00%, which implies that while there was no additional downside during the holding period, the initial loss was considerable. This performance highlights the risk associated with this investment approach, despite a revenue increase.

CEO Commentary
FMC Corporation's CEO highlighted strong second-quarter performance, noting revenue growth of 1% driven by a 6% increase in volume, despite a 3% decline in pricing. The CEO acknowledged challenges, particularly in Asia, where sales fell 17% due to destocking and lower pricing. The strategic decision to divest the India commercial business reflects FMC's focus on optimizing operations and maintaining presence in the market through supply agreements. Overall, the CEO maintains a cautiously optimistic outlook, reaffirming full-year guidance and emphasizing the importance of market conditions and operational adjustments in future growth.

Guidance
FMC Corporation expects full-year revenue to range between $4.08 billion and $4.28 billion, down 2% at the midpoint compared to prior year results. The company maintains its adjusted EBITDA outlook of $870 million to $950 million, reflecting a 1% increase at the midpoint year-over-year. Adjusted earnings per diluted share guidance remains unchanged at $3.26 to $3.70. The free cash flow forecast is set at $200 million to $400 million, indicating a 51% decline at the midpoint from the previous year. For Q3, revenue is projected between $1.00 billion and $1.10 billion, with expectations of volume growth offsetting price headwinds.

Additional News
FMC Corporation has announced its intention to divest its India commercial business, a strategic decision made in response to ongoing challenges in the region. This move will allow FMC to focus on supply agreements with its patented and data-protected portfolio, ensuring continued participation in the Indian market. The sale process is underway and expected to conclude within the next year. Additionally, FMC's Board of Directors approved this divestiture, emphasizing the company's commitment to optimizing its operations. This decision highlights FMC's proactive approach to addressing regional market difficulties and maintaining its competitive edge through strategic business adjustments.