FMC Corporation Reports 14% Revenue Decline and Increased Net Loss in Q1 2025

FMC Corporation reported a significant decline in its financial performance for the first quarter of 2025, with revenues totaling $791.4 million, a decrease of approximately 14% from $918.0 million in the same period last year. The decline was primarily attributed to lower pricing, particularly on certain "cost-plus" contracts, and reduced volumes across most regions, except for a 10% increase in Latin America. The company's gross margin also fell to $316.7 million, down from $339.7 million, although the gross margin percentage improved to around 40% due to lower raw material costs and better fixed cost absorption.

The company's net loss attributable to FMC stockholders widened to $15.5 million, compared to a loss of $2.7 million in the prior year. This increase in net loss was driven by lower sales, higher selling, general and administrative expenses, and increased research and development spending, which rose by 13% to $68.7 million. The provision for income taxes also increased significantly, reflecting changes in foreign currency and the global mix of earnings. Adjusted after-tax earnings from continuing operations fell by approximately 51% to $22.4 million.

FMC's operational metrics showed mixed results, with selling, general and administrative expenses rising to $172.0 million, a 5% increase from the previous year. The company continued to invest in new products and expand its sales force in Brazil. However, cash provided by operating activities of continuing operations was negative at $(545.0) million, compared to $(142.9) million in the prior year, indicating challenges in cash flow management. The company’s total debt increased to $4.0 billion, up from $3.4 billion at the end of 2024, primarily due to higher commercial paper borrowings.

Looking ahead, FMC Corporation expects its 2025 revenue to range between $4.15 billion and $4.35 billion, projecting a slight increase when excluding the impact of the divestiture of its Global Specialty Solutions business. The company anticipates improved volumes as growth platforms are expected to offset weaker demand in certain channels. However, it also expects mid-single-digit price declines and low-single-digit foreign currency headwinds. Adjusted EBITDA is forecasted to be between $870 million and $950 million, reflecting a modest increase at the midpoint compared to 2024 results. The company remains focused on managing costs and investing in new product development to drive future growth.