FMC Corporation reported second quarter 2024 revenue of US$ 1.04 billion, up 2 per cent versus second quarter 2023, and up 4 per cent organically. On a GAAP basis, the company reported income of $2.35 per diluted share in the second quarter, an increase of 879 percent versus the second quarter of 2023 due to additional benefits related to tax incentives granted to the company’s Swiss subsidiaries in late 2023. Second quarter adjusted earnings were $0.63 per diluted share, up 26 percent versus second quarter 2023.

"Demand improved during the second quarter, resulting in a pronounced increase in our sales volumes, most notably within the United States and Brazil, despite customers continuing to actively manage inventory,” said Pierre Brondeau, FMC chairman and chief executive officer. “Higher sales, as well as cost benefits from our ongoing restructuring, led to adjusted EBITDA toward the high end of our guidance range."

Second quarter revenue growth was driven by a 14 per cent increase in volume versus the prior year period when global destocking was first observed. Volume growth was partially offset by 10 per cent lower price and a foreign currency headwind of 2 per cent. Lower price was driven by competitive pressure as demand returned and one-time incentives to customers to help them lower the cost of inventory in the channel.

The company's second quarter adjusted EBITDA was $202 million, an increase of 8 percent from the prior-year period. Higher sales volume as well as cost benefits from restructuring actions more than offset lower pricing and COGS headwinds due to sales of higher-cost inventory from prior year.

On a GAAP basis, cash from operations was $292 million, an increase of $161 million versus 2023, due to improvement in working capital and higher earnings. Higher cash from operations resulted in free cash flow of $280 million in the quarter. As of June 30, year-to-date free cash flow of $93 million is approximately $915 million higher than prior year. 

Full Year 2024 Outlook

The company has updated its full-year 2024 revenue outlook to be in the range of $4.30 billion to $4.50 billion, representing a decrease of 2 percent at the midpoint versus 2023. Versus the prior year, mid-single digit volume growth is expected to be more than offset by price and FX. The revised revenue guidance is 4 percent lower at the midpoint versus prior guidance to reflect lower first half sales and delayed demand recovery.

The company has reduced full-year adjusted EBITDA guidance to a range of $880 million and $940 million, a 7 percent decline at the midpoint versus both prior year and prior guidance, due to the lower revenue outlook. Benefits from restructuring are now expected to contribute $75 million to $100 million, net of inflation, to full-year adjusted EBITDA, an increase of $25 million at the midpoint from the prior expectation. The revised 2024 adjusted earnings outlook is now $3.02 to $3.64 per diluted share, representing a year-over-year decrease of 12 percent at the midpoint due primarily to lower earnings. The company is also adjusting its full-year free cash flow guidance to a range of $400 million to $500 million primarily to account for lower expected adjusted EBITDA.