FMC Q2 2025 slides: Revenue edges up 1% as volume growth offsets pricing pressure

Introduction & Market Context

Agricultural sciences company FMC Corporation (NYSE:FMC) reported a modest 1% revenue increase in its Q2 2025 earnings presentation released on July 31, 2025. The company’s stock responded positively to the results, closing up 2.98% at $29.54 following the announcement, according to market data.

FMC’s performance reflects a company navigating challenging market conditions while implementing strategic initiatives designed to position it for future growth. The slight revenue improvement was driven primarily by strong volume growth, which helped offset pricing pressures and currency headwinds.

Quarterly Performance Highlights

FMC reported Q2 2025 revenue of $1.051 billion, representing a 1% increase year-over-year and 2% organic growth. The company’s adjusted EBITDA reached $207 million, up 2% from the prior year, while adjusted earnings per share rose 10% to $0.69.

As shown in the following financial results summary:

The company’s growth was primarily volume-driven, with a 6% increase in volume offset by a 3% decline in pricing and a 1% negative impact from foreign exchange. GAAP net income declined significantly by 77% to $67 million, which the company attributed to gains related to tax incentives recorded in the prior year.

FMC’s adjusted EBITDA improvement was driven by strong cost favorability, which more than compensated for pricing pressures and foreign exchange headwinds. The following chart breaks down the key drivers:

The cost favorability of $69 million was primarily due to lower raw material costs and the absence of fixed cost absorption headwinds from the prior year. However, this was partially offset by pricing declines of $36 million, more than half of which was attributed to adjustments in "cost-plus" contracts with diamide partners.

Regional Performance Analysis

FMC’s Q2 results revealed significant regional variations in performance, with Europe, Middle East and Africa (EMEA) showing the strongest growth while Asia experienced a substantial decline. The following regional breakdown illustrates these differences:

EMEA led growth with a 29% revenue increase (27% excluding foreign exchange), driven by strong volume growth in herbicides, diamide partner sales, and branded Cyazypyr® products. Latin America posted a modest 1% increase (5% excluding FX), with solid growth of new active ingredients fluindapyr and Isoflex™ in Brazil.

North America saw a 5% revenue decline, attributed to planned destocking in Canada, though the company noted solid branded volume growth in the U.S. and strong performance in biologicals. Asia experienced the steepest decline at 17% (15% excluding FX), primarily due to ongoing destocking in India, where the company is in the process of divesting its commercial operations.

Strategic Initiatives

FMC outlined five key focus areas for 2025, highlighting progress in inventory management, product strategy, and market expansion. The company reported that it has successfully corrected inventory levels in most countries and aligned them with customer targets.

The strategic initiatives include:

Notably, FMC is implementing an additional direct-to-grower sales channel in Brazil targeting large corn and soybean producers, with sales expected in the second half of 2025. The company also has a commercial strategy ready for implementation in 2026 for its Rynaxypyr® product portfolio, featuring lower manufacturing costs and higher-value products.

The planned sale of the India commercial business represents a significant strategic shift, though FMC will continue to supply the buyer with IP-protected and differentiated products while retaining active ingredients global manufacturing operations in India.

Financial Outlook & Guidance

Looking ahead, FMC provided guidance for the remainder of 2025, excluding its India operations for Q3 and Q4. The company expects full-year revenue between $4.08 billion and $4.28 billion, representing a 2% year-over-year decline, while adjusted EBITDA is projected to increase by 1% to between $870 million and $950 million.

The following slide details the company’s full-year outlook:

For Q3 2025, FMC anticipates revenue of $1.00-1.10 billion, a 1% decrease year-over-year, but expects adjusted EBITDA to increase by 14% to $210-250 million. The fourth quarter is projected to show stronger performance with 5% revenue growth and 4% EBITDA improvement.

FMC’s cash flow outlook for 2025 shows a projected free cash flow of $200-400 million, with the following breakdown of Q2 cash results:

The company noted that lower cash from operations in Q2 was primarily due to a smaller reduction in inventory compared to the prior year.

Modeling Assumptions & Additional Insights

For investors and analysts modeling FMC’s performance, the company provided detailed assumptions for 2025, including an interest expense range of $215-235 million and an adjusted tax rate of 13-15%:

The adjusted EPS variance from Q2 2024 to Q2 2025 shows the positive impact of improved EBITDA and lower interest expenses:

As FMC navigates through 2025, the company appears focused on executing its strategic initiatives while managing through regional challenges, particularly in Asia. The positive market reaction to these results suggests investors see potential in the company’s efforts to position itself for future growth despite the modest current performance.

Full presentation:

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