FMC Corporation announces 2024 fourth quarter and full year results, provides 2025 outlook

FMC Revenue

Q4 2024

Full Year 2024

Total Revenue Change (GAAP)

7 %

(5 %)

Less FX Impact

(5 %)

(2 %)

Organic¹ Revenue Change (Non-GAAP)

12 %

(3 %)

Revenue

$4.15 billion to

$4.35 billion

$750 million to

$800 million

Growth at midpoint vs. 2024*

0 %

-16 %

Adjusted EBITDA

$870 million to

$950 million

$105 million to

$125 million

Growth at midpoint vs. 2024*

1 %

-28 %

Adjusted EPS^

$3.26 to $3.70

$0.05 to $0.15

0 %

-72 %

^Adjusted EPS estimates assume 125.6 million diluted shares for full year and 125.6 million diluted shares for Q1. Outlook for Adjusted EPS and WADSO does not include the impact of any share repurchases that may take place in 2025.

*Percentages are calculated using whole numbers. Minor differences may exist due to rounding.

FMC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

(In millions, except per share amounts)

2024

2023

2024

2023

Revenue

$     1,224.3

$     1,146.1

$     4,246.1

$     4,486.8

Costs of sales and services

699.6

710.4

2,597.2

2,655.8

Gross margin

$        524.7

$        435.7

$     1,648.9

$     1,831.0

Selling, general and administrative expenses

$        156.7

$        171.5

$        644.6

$        734.3

Research and development expenses

72.2

81.8

278.0

328.8

Restructuring and other charges (income)

61.2

164.3

219.8

212.3

Total costs and expenses

$        989.7

$     1,128.0

$     3,739.6

$     3,931.2

Income (loss) from continuing operations before non-operating

pension and postretirement charges (income), interest expense,

net and income taxes

$        234.6

$          18.1

$        506.5

$        555.6

Non-operating pension and postretirement charges (income)

5.3

4.8

18.2

18.2

Interest expense, net

51.8

56.7

235.8

237.2

Income (loss) from continuing operations before income taxes

$        177.5

$         (43.4)

$        252.5

$        300.2

Provision (benefit) for income taxes

148.0

(1,197.0)

(150.9)

(1,119.3)

Income (loss) from continuing operations

$          29.5

$     1,153.6

$        403.4

$     1,419.5

Discontinued operations, net of income taxes

(45.6)

(57.2)

(61.8)

(98.5)

Net income (loss)

$         (16.1)

$     1,096.4

$        341.6

$     1,321.0

  Less: Net income (loss) attributable to noncontrolling interests

0.2

(2.1)

0.5

(0.5)

Net income (loss) attributable to FMC stockholders

$         (16.3)

$     1,098.5

$        341.1

$     1,321.5

Amounts attributable to FMC stockholders:

  Income (loss) from continuing operations, net of tax

$          29.3

$     1,155.7

$        402.9

$     1,420.0

  Discontinued operations, net of tax

(45.6)

(57.2)

(61.8)

(98.5)

  Net income (loss)

$         (16.3)

$     1,098.5

$        341.1

$     1,321.5

Basic earnings (loss) per common share attributable to FMC stockholders:

  Continuing operations

$          0.23

$          9.23

$          3.22

$        11.34

  Discontinued operations

(0.36)

(0.46)

(0.49)

(0.79)

  Basic earnings per common share

$         (0.13)

$          8.77

$          2.73

$        10.55

Average number of shares outstanding used in basic earnings per share computations

125.0

124.9

125.0

125.1

Diluted earnings (loss) per common share attributable to FMC stockholders:

Continuing operations

$          0.23

$          9.23

$          3.21

$        11.31

  Discontinued operations

(0.36)

(0.46)

(0.49)

(0.78)

  Diluted earnings per common share

$         (0.13)

$          8.77

$          2.72

$        10.53

Average number of shares outstanding used in diluted earnings per share computations

125.5

125.2

125.4

125.5

Other Data:

Capital additions and other investing activities

$          20.1

$          27.1

$          71.6

$        143.7

Depreciation and amortization expense

43.1

45.9

176.3

184.3

FMC CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP)

TO ADJUSTED AFTER-TAX EARNINGS FROM CONTINUING OPERATIONS, 

ATTRIBUTABLE TO FMC STOCKHOLDERS (NON-GAAP)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

(In millions, except per share amounts)

2024

2023

2024

2023

Net income (loss) attributable to FMC stockholders (GAAP)

$     (16.3)

$  1,098.5

$     341.1

$  1,321.5

Corporate special charges (income):

Restructuring and other charges (income) ^(a)

61.2

190.1

219.8

238.1

Non-operating pension and postretirement charges (income) ^(b)

5.3

4.8

18.2

18.2

Income tax expense (benefit) on Corporate special charges (income) ^(c)

(8.7)

(24.3)

(37.1)

(32.8)

Adjustment for noncontrolling interest, net of tax on Corporate special charges (income)

—

—

—

(1.6)

Discontinued operations attributable to FMC stockholders, net of income taxes ^(d)

45.6

57.2

61.8

98.5

Tax adjustment ^(e)

137.5

(1,192.9)

(167.5)

(1,167.4)

Adjusted after-tax earnings from continuing operations attributable to

FMC stockholders (Non-GAAP) ⁽¹⁾

$     224.6

$     133.4

$     436.3

$     474.5

Diluted earnings per common share (GAAP)

$     (0.13)

$       8.77

$       2.72

$     10.53

Corporate special charges (income) per diluted share, before tax:

Restructuring and other charges (income)

0.49

1.52

1.75

1.90

Non-operating pension and postretirement charges (income)

0.04

0.04

0.15

0.15

Income tax expense (benefit) on Corporate special charges (income), per diluted share

(0.07)

(0.19)

(0.30)

(0.26)

Adjustment for noncontrolling interest, net of tax on Corporate special charges (income) per diluted share

—

—

—

(0.02)

Discontinued operations attributable to FMC stockholders, net of income taxes per diluted share

0.36

0.46

0.49

0.78

Tax adjustments per diluted share

1.10

(9.53)

(1.33)

(9.30)

Diluted adjusted after-tax earnings from continuing operations per

share, attributable to FMC stockholders (Non-GAAP)

$       1.79

$       1.07

$       3.48

$       3.78

Average number of shares outstanding used in diluted adjusted after-tax

earnings from continuing operations per share computations

125.5

125.2

125.4

125.5

(1)

Referred to as Adjusted earnings. The Company believes that Adjusted earnings, a Non-GAAP financial measure, and its presentation on a per share basis, provides useful information about the Company's operating results to management, investors, and securities analysts. Adjusted earnings excludes the effects of Corporate special charges, tax-related adjustments and the results of our discontinued operations. The Company also believes that excluding the effects of these items from operating results allows management and investors to compare more easily the financial performance of its underlying businesses from period to period.

(a)

Three Months Ended December 31, 2024:

Restructuring and other charges (income) includes restructuring charges of $169.8 million primarily related to the previously announced global restructuring plan, referred to as "Project Focus." As part of the continued evaluation of our supply chain footprint in connection with Project Focus, we incurred contract abandonment charges of $132.1 million during the fourth quarter of 2024. We anticipate significant savings from abandoning this contract primarily in the form of the ability to purchase from significantly lower cost suppliers. Charges incurred related to Project Focus also consist of  $11.3 million of severance and employee separation costs, $6.9 million of professional service provider costs and other miscellaneous charges, $13.2 million of asset impairment charges, and accelerated depreciation of $6.1 million on assets identified for disposal in connection with the restructuring initiative. Other charges (income) of $(108.6) million includes a $180.3 million gain, net of fourth quarter incurred transaction costs, from the sale of Global Specialty Solutions ("GSS") business, which was completed on November 1, 2024. The divestiture of GSS, which includes a line of products that serve a diverse mix of non-crop markets such as golf courses, professional sports stadiums and pest control, is a key step in FMC's strategic plan to focus solely on innovating products and services for the global crop protection market. The gain from the GSS sale was partially offset by $60.9 million of charges associated with our environmental sites and $10.8 million of other miscellaneous charges.

Three Months Ended December 31, 2023:

Restructuring and other charges (income) includes $40.1 million of severance and employee separation costs and $5.4 million of  provider costs associated with the Project Focus restructuring initiative. Additionally, we incurred $89.2 million in currency related charges primarily driven by the significant devaluation actions taken by the Argentine Government during the fourth quarter of 2023. We recognized $25.8 million of currency related charges from these events within our "Cost of Sales and Services" line item on our Consolidated Statements of Income (Loss). Finally, we incurred $52.6 million in environmental charges associated with remediation activities and other miscellaneous charges of $2.8 million.

Twelve Months Ended December 31, 2024:

Restructuring and other charges (income) includes restructuring charges of $303.0 million primarily related to Project Focus. We incurred $132.1 million of contract abandonment charges as a result of the continued evaluation of our supply chain footprint during the fourth quarter of 2024 and $53.3 million of non-cash asset write off charges resulting from the contract termination with one of our third-party manufacturers during the second quarter of 2024. Charges incurred in connection with Project Focus also consist of $55.8 million of severance and employee separation costs, including costs associated with the CEO transition, $31.0 million of professional service provider costs and other miscellaneous charges, accelerated depreciation of $20.5 million on assets identified for disposal in connection with the restructuring initiative and $13.2 million of asset impairment charges. These Project Focus restructuring charges were partially offset by a $3.1 million gain recognized on the disposition of a previously closed manufacturing site. Other charges (income) of $(83.2) million is comprised of a gain, net of full year incurred transaction costs, of $174.4 million from the sale of our GSS business, which was completed during the fourth quarter of 2024 as noted above. The gain from the GSS sale was partially offset by $74.7 million of charges associated with our environmental sites and $16.5 million of other miscellaneous charges.

Twelve Months Ended December 31, 2023:

Restructuring and other charges (income) includes $40.1 million of severance and employee separation costs and $5.4 million of  provider costs associated with the Project Focus restructuring initiative. Other restructuring costs of $8.7 million relate to employee separation and asset impairment costs incurred as part of various ongoing initiatives. These restructuring charges were offset by a $5.8 million gain recognized on the disposition of land related to a previously closed manufacturing facility. We incurred $101.0 million in currency related charges primarily driven by the significant devaluation actions taken by the Argentine Government during the fourth quarter of 2023 as well as similar devaluation actions in Pakistan and Argentina during previous quarters of 2023. Other charges (income) also includes $13.0 million in charges primarily resulting from the third quarter acquisition of in-process research and development assets that do not meet the criteria for capitalization. Additionally, we incurred $66.9 million in environmental charges associated with remediation activities and other miscellaneous charges of $8.8 million.

(b)

Our non-operating pension and postretirement charges (income) are defined as those costs (benefits) related to interest, expected return on plan assets, amortized actuarial gains and losses and the impacts of any plan curtailments or settlements. These are excluded from our Adjusted Earnings and are primarily related to changes in pension plan assets and liabilities which are tied to financial market performance and we consider these costs to be outside our operational performance. We continue to include the service cost and amortization of prior service cost in our Adjusted Earnings results noted above. These elements reflect the current year operating costs to our businesses for the employment benefits provided to active employees.

(c)

The income tax expense (benefit) on Corporate special charges (income) is determined using the applicable rates in the taxing jurisdictions in which the Corporate special charge or income occurred and includes both current and deferred income tax expense (benefit) based on the nature of the non-GAAP performance measure.

(d)

Discontinued operations for all periods presented includes provisions, net of recoveries, for environmental liabilities and legal reserves and expenses related to previously discontinued operations and retained liabilities. Discontinued operations for the twelve months ended December 31, 2024 includes cash proceeds, net of fees of $18.0 million received as the result of an insurance settlement for retained legal reserves.

(3)

We exclude the GAAP tax provision, including discrete items, from the Non-GAAP measure of income, and include a Non-GAAP tax provision based upon the annual Non-GAAP effective tax rate. The GAAP tax provision includes certain discrete tax items including, but not limited to: income tax expenses or benefits that are not related to continuing operating results in the current year; unusual or infrequently occurring items; tax adjustments associated with fluctuations in foreign currency remeasurement of certain foreign operations; certain changes in estimates of tax matters related to prior fiscal years; certain changes in the realizability of deferred tax assets; and changes in tax law. Management believes excluding these discrete tax items assists investors and securities analysts in understanding the tax provision and the effective tax rate related to continuing operations thereby providing investors with useful supplemental information about FMC's operational performance.

Three Months Ended

Twelve Months Ended

December 31,

December 31,

(In millions)

2024

2023

2024

2023

Tax adjustments:

Revisions to valuation allowances of historical deferred tax assets

—

(223.5)

(1.6)

(223.5)

Net impact of Switzerland tax incentives

122.3

(830.8)

(153.9)

(830.8)

Foreign currency remeasurement and other discrete items

15.2

(138.6)

(12.0)

(113.1)

Total Non-GAAP tax adjustments

$        137.5

$    (1,192.9)

$       (167.5)

$    (1,167.4)

2024 Impacts

In connection with our plans to establish a global technology and innovation center in Switzerland, we initiated changes to our corporate entity structure, including intra-entity transfers of certain intellectual property, during the second quarter of 2024. As a result, we recorded a net tax benefit of approximately $300 million in the twelve months ended December 31, 2024. This benefit, net of valuation allowance, was primarily a result of the recognition of a step-up in tax basis to the fair value of the transferred intellectual property by the Company's Swiss subsidiary. In addition, local tax impacts associated with the disposition of the transferred intellectual property were recorded as well as an increase in our valuation allowance associated with Swiss nonrefundable tax credits as a result of indirect effects of the transferred intellectual property. During the fourth quarter of 2024, the Company recorded additional valuation allowances of approximately $120 million related to updated projections of future earnings associated with the Swiss tax incentive deferred tax benefits noted below.

2023 Impacts

During the three months ended December 31, 2023, the Company's Swiss subsidiaries were granted ten-year tax incentives effective for 2023 and retroactively for 2021 and 2022. The tax incentives were awarded for the Company's commitment to invest in additional headcount and transfer significant intellectual property as well as establishing a new global technology and innovation center in Switzerland. Deferred tax benefits of $1,149 million and related valuation allowances of $318 million were recorded during the three months ended December 31, 2023 to reflect the net estimated future reductions in tax of $831 million associated with the incentives.

Historically, FMC's Brazil valuation allowance position was based on long-standing local transfer pricing rules, as well as certain material favorable permanent statutory tax deductions available to FMC Brazil as part of local tax law. During the three months ended December 31, 2023, the Company released its FMC Brazil valuation allowance and recorded a tax benefit of $223 million as a result of the Brazilian Government enacting a new tax law that significantly limits FMC Brazil's ability to benefit in the future from the material favorable permanent statutory tax deductions previously available as part of local tax law.

Subsequent Event - 2025

In January of 2025, the Organization for Economic Co-operation and Development ("OECD") issued administrative guidance on the Global Anti-Base Erosion Model (GLOBE) rules that clarify how certain rules are to be interpreted. This administrative guidance includes changes to certain tax credits and other tax benefits that arose from governmental arrangements granted after November 2021. It has been concluded that this new administrative guidance is part of Swiss tax law when issued and is retro-active. FMC's non-refundable tax credits which were granted in 2023 to our Swiss subsidiaries are impacted by this new guidance.  The tax credits were previously grandfathered in for full use under the GLOBE rules. FMC is currently evaluating the impacts of this on its financial statements.

RECONCILIATION OF NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM CONTINUING

OPERATIONS, BEFORE INTEREST AND INCOME TAXES, DEPRECIATION AND AMORTIZATION, AND

NONCONTROLLING INTERESTS (NON-GAAP)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

(In millions)

2024

2023

2024

2023

Net income (loss) (GAAP)

$         (16.1)

$     1,096.4

$        341.6

$     1,321.0

Restructuring and other charges (income) ⁽²⁾

61.2

190.1

219.8

238.1

Non-operating pension and postretirement charges (income)

5.3

4.8

18.2

18.2

Discontinued operations, net of income taxes

45.6

57.2

61.8

98.5

Interest expense, net

51.8

56.7

235.8

237.2

Depreciation and amortization

43.1

45.9

176.3

184.3

Provision (benefit) for income taxes

148.0

(1,197.0)

(150.9)

(1,119.3)

Adjusted earnings from continuing operations, before interest,

income taxes, depreciation and amortization, and noncontrolling

interests (Non-GAAP) ⁽¹⁾

$        338.9

$        254.1

$        902.6

$        978.0

(1)

Referred to as Adjusted EBITDA. Defined as operating profit excluding corporate special charges (income) and depreciation and amortization expense.

(2)

The three and twelve months ended December 31, 2023 includes $25.8 million of charges recorded to "Cost of Sales and services" on the consolidated statements of income (loss) as well as $164.3 million and $212.3 million, respectively, shown as Restructuring and other charges (income) on the consolidated statements of income (loss).

RECONCILIATION OF CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES (GAAP) TO

FREE CASH FLOW (NON-GAAP)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

(In millions)

2024

2023

2024

2023

Cash provided (required) by operating activities of continuing operations (GAAP)⁽¹⁾

$        427.9

$        317.9

$        736.7

$       (300.3)

Capital expenditures

$         (21.6)

$         (25.1)

$         (67.9)

$       (133.9)

Other investing activities

1.5

(2.0)

(3.7)

(9.8)

Proceeds from land disposition 

—

—

—

5.8

Capital additions and other investing activities

$         (20.1)

$         (27.1)

$         (71.6)

$       (137.9)

Cash provided (required) by operating activities of discontinued operations

$         (28.4)

$         (25.1)

$         (65.6)

$         (86.1)

Divestiture transaction costs ⁽²⁾

9.4

—

14.0

—

Free cash flow (Non-GAAP) ⁽³⁾

$        388.8

$        265.7

$        613.5

$       (524.3)

(1)

Includes cash payments made in connection with our Project Focus transformation program of $16.3 million and $106.2 million for the three and twelve months ended December 31, 2024, respectively. The three and twelve months ended December 31, 2023 includes Project Focus cash payments of $2.4 million.

(2)

Represents transactional-related costs such as legal and professional third-party fees associated with the sale of our Global Specialty Solutions ("GSS") business. Proceeds from the sale of our GSS business are excluded from free cash flow. Therefore, we have also excluded the related transaction costs from free cash flow.

(3)

Free cash flow is defined as cash provided (required) by operating activities of continuing operations (GAAP) adjusted for spending for capital additions and other investing activities as well as cash provided (required) by discontinued operations and divestiture transaction costs associated with the sale of our GSS business. We believe that this Non-GAAP financial measure provides a useful basis for investors and securities analysts to evaluate the cash generated by routine business operations including to assess our ability to repay debt, fund acquisitions and return capital to shareholders through share repurchases and dividends. Our use of free cash flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results under U.S. GAAP.

RECONCILIATION OF REVENUE CHANGE (GAAP) TO

ORGANIC REVENUE CHANGE (NON-GAAP) ⁽¹⁾

(Unaudited)

Three Months Ended

December 31, 2024 vs. 2023

 Twelve Months Ended

December 31, 2024 vs. 2023

Total Revenue Change (GAAP)

7 %

(5) %

Less: Foreign Currency Impact

(5) %

(2) %

Organic Revenue Change (Non-GAAP)

12 %

(3) %

(1)

We believe organic revenue growth (non-GAAP) provides management and investors with useful supplemental information regarding our ongoing revenue performance and trends by presenting revenue growth excluding the impact of fluctuations in foreign exchange rates.

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO

FMC STOCKHOLDERS (GAAP) TO RETURN ON INVESTED CAPITAL ("ROIC")

NUMERATOR (NON-GAAP) AND ROIC (USING NON-GAAP NUMERATOR)⁽¹⁾

(Unaudited)

Twelve Months Ended

December 31, 2024

Net income (loss) attributable to FMC stockholders (GAAP)

$                        341.1

Interest expense, net, net of income taxes

210.1

Corporate special charges (income)

238.0

Income tax expense (benefit) on Corporate special charges (income)

Discontinued operations attributable to FMC stockholders, net of income taxes

61.8

Tax adjustments

ROIC numerator (Non-GAAP)

$                        646.4

December 31, 2024

December 31, 2023

Total debt

$                     3,365.3

$                        3,957.6

Total FMC stockholders' equity

4,487.5

4,410.9

Total debt and FMC stockholders' equity (GAAP)

$                     7,852.8

$                        8,368.5

ROIC denominator (2 yr average total debt and FMC stockholders' equity)

$                     8,110.7

ROIC (using Net income (loss) attributable to FMC stockholders (GAAP) as numerator)

4.21 %

ROIC (using Non-GAAP numerator)

7.97 %

(1)

We believe ROIC provides management and investors with useful supplemental information regarding our utilization of capital provided by both equity and debt as well as our working capital and free cash flow management.

FMC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions)

December 31, 2024

December 31, 2023

Cash and cash equivalents

$                      357.3

$                      302.4

Trade receivables, net of allowance of $39.4 in 2024 and $29.1 in 2023

2,903.2

2,703.2

Inventories

1,201.6

1,724.6

Prepaid and other current assets

496.2

398.9

Total current assets

$                   4,958.3

$                   5,129.1

Property, plant and equipment, net

849.7

892.5

Goodwill

1,507.0

1,593.6

Other intangibles, net

2,360.7

2,465.1

Deferred income taxes

1,523.8

1,336.6

Other long-term assets

453.8

509.3

Total assets

$                 11,653.3

$                 11,926.2

Short-term debt and current portion of long-term debt

$                      337.4

$                      934.0

Accounts payable, trade and other

768.5

602.4

Advanced payments from customers

453.8

482.1

Accrued and other liabilities

755.2

684.8

Accrued customer rebates

489.9

480.9

Guarantees of vendor financing

85.5

69.6

Accrued pensions and other postretirement benefits, current

6.4

6.4

Income taxes

122.5

124.4

Total current liabilities

$                   3,019.2

$                   3,384.6

Long-term debt, less current portion

$                   3,027.9

$                   3,023.6

Long-term liabilities

1,097.4

1,084.6

Equity

4,508.8

4,433.4

Total liabilities and equity

$                 11,653.3

$                 11,926.2

FMC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Year Ended December 31,

(In millions)

2024

2023

Cash provided (required) by operating activities of continuing operations

$                  736.7

$                 (300.3)

Cash provided (required) by operating activities of discontinued operations

(65.6)

(86.1)

Cash provided (required) by investing activities of continuing operations

263.6

(154.4)

Cash provided (required) by financing activities of continuing operations

(870.1)

331.5

Effect of exchange rate changes on cash

(9.7)

(60.3)

Increase (decrease) in cash and cash equivalents

$                    54.9

$                 (269.6)

Cash and cash equivalents, beginning of period

302.4

572.0

Cash and cash equivalents, end of period

$                  357.3

$                  302.4