FMC Corporation Reports Q2 2025 Earnings, Maintains 2025 Outlook Amid Growth Momentum

FMC Corporation has outlined plans to divest its Indian business and maintained its 2025 outlook despite growth momentum in its portfolio. CEO Pierre R. Brondeau stated the company has achieved its first-half objectives and expects growth in the second half. He also noted that FMC products have normalized in distribution channels.

FMC Corporation (FMC) has outlined plans to divest its Indian business and maintained its 2025 outlook despite growth momentum in its portfolio. CEO Pierre R. Brondeau stated the company has achieved its first-half objectives and expects growth in the second half. He also noted that FMC products have normalized in distribution channels.

In its Q2 2025 earnings report, FMC reported a 77% decline in net income compared to the previous year. Despite this, the company 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 [1].

The strategic decision to divest its India commercial business is anticipated to impact future financial reporting. This move follows ongoing challenges in the region, where sales fell 17% due to destocking and lower pricing. The sale process is underway and expected to conclude within the next year. The company's Board of Directors approved this divestiture, emphasizing the importance of optimizing operations and maintaining a competitive edge through strategic business adjustments [2].

FMC 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 [1].

The company's revenue increased by 1.2% to $1.05 billion in 2025 Q2, up from $1.04 billion in 2024 Q2. Earnings per share (EPS) declined 77.4% to $0.53 in 2025 Q2 from $2.35 in 2024 Q2. Meanwhile, net income declined to $67.80 million in 2025 Q2, down 77.0% from $295.20 million reported in 2024 Q2. 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 [1].

FMC'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 [2].

The company removed second half sales from India in its guidance, maintaining other metrics. Revenue, excluding India, is guided to be down 2% versus prior reported results as a mid-single-digit price decline and a flat to low single-digit FX headwinds are anticipated to be offset by volume growth, mainly in the second half. Adjusted EBITDA is expected to be 1% higher at the midpoint...Adjusted earnings per share are expected to be flat to prior year at the midpoint [2].

For Q3, "revenue, excluding India, to be down 1% versus reported prior year results...Adjusted EBITDA is expected to grow substantially up 14% at the midpoint...Adjusted EPS is expected to be 28% higher than prior year at the midpoint." Fourth quarter guidance anticipates "revenue, excluding India, to be 5% higher at the midpoint...Adjusted EBITDA is expected to be 4% higher at the midpoint...Adjusted EPS is expected to be 3% lower than prior year as the EBITDA increase is more than offset by higher taxes and interest expense." [2].

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 [2].

References:
[1] https://www.ainvest.com/news/fmc-2025-q2-earnings-misses-targets-net-income-declines-77-2507/
[2] https://seekingalpha.com/news/4475720-fmc-outlines-india-business-divestment-and-maintains-2025-outlook-amid-growth-portfolio