FMC

This article first appeared on GuruFocus. Release Date: August 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tessenderlo Group NV (XBRU:TESB) reported a strong first half with adjusted EBITDA of 176.8 million, a margin of nearly 12%, which is higher than the same period last year. The Agro segment delivered a robust performance with a 17.3% increase in EBITDA (excluding FX effects), driven by higher sales volumes and successful price pass-throughs. The company is making strategic progress with the acquisition of the Sinis fertilizer plant in Sweden, which is expected to ramp up in Q1 2027 and expand its sulfate of potash production. Tessenderlo Group NV (XBRU:TESB) is investing in long-term growth through a $400 million capital increase in FMC Corporation, positioning itself as a cornerstone investor in a leading crop protection technology company. The company has upgraded its full-year outlook, expecting adjusted EBITDA to be 5% to 15% higher than last year's 288 million, reflecting confidence in its diversified portfolio. The new Akiolis biomass cogeneration plant was inaugurated, marking a major step in the company's decarbonization strategy and reducing fossil fuel consumption. The Machines and Technologies segment (Picanol Group) experienced a decrease in revenues and margins due to a slowdown in weaving machine activities built out of Europe, impacted by competitive pressures from a weak Japanese yen. The company announced the intention to close the Vilvoorde plant, resulting in an estimated 31 million restructuring charge recognized in EBIT adjusted items in H2 2026. Geopolitical tensions, particularly in the Strait of Hormuz, have caused volatility and increased prices for key raw materials like sulfur and ethylene, creating supply chain challenges. The acquisition of the Sinis plant will not contribute to results in the second half of 2026, as it is still being upgraded and is not expected to be fully functional until 2027. The Biovalorization segment was negatively impacted by restructuring costs and an incident at the plant in Argentina, which is still being resolved and has delayed insurance proceeds recognition. The company's net financial debt increased in the first half due to acquisitions and investments, including the purchase of the Brazilian minority stake and the FMC stake. Warning! GuruFocus has detected 5 Warning Signs with XBRU:TESB. Is XBRU:TESB fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the strategy behind taking a 20% stake in FMC and what is the timeline for approvals?A: CFO Miguel de Potter explained that regulatory approvals are expected by the end of September or October, with some jurisdictions already approved. The rationale is that FMC is a business they understandactive ingredientsand entering the world of patented molecules. FMC will release five new molecules in the coming five years. The investment was attractively priced due to FMC's balance sheet issues, and the EUR400 million capital increase will help FMC reduce debt by EUR1 billion. CEO Luc Duck added that FMC is one of the five leading technology companies in developing new active ingredients, and this cornerstone investment provides the company time to develop its pipeline. Q: What is the outlook for the agro business regarding raw material sourcing, specifically MOP and sulfur, and is there any chance volumes from Russia will become available?A: CEO Luc Duck stated that supplies have been challenged due to the situation with Russia and Belarus, and they are not expecting any of these products to flow to Europe anytime soon. The company continues to source from further away, which has caused pressure on pricing and availability, especially for sulfur. Q: Can you elaborate on the options being considered for T-Power, including longer-term tolling agreements and the second planned project?A: CEO Luc Duck explained that T-Power has proven to be a very important asset in the Belgian landscape, especially during the summer. The six-month tolling agreement provides more time to assess various options for long-term utilization. They still have a permit to build a new gas power plant, but such a large investment is only viable with a correct capacity remuneration mechanism (CRM), which does not seem to be the case in the near future. The option remains, but they do not expect anything in the near term. Q: Can you elaborate on the difficult market conditions for Picanol, particularly competitive pressures from Japanese competitors enjoying a weak yen?A: CEO Luc Duck acknowledged that the first half was somewhat weaker, with the Japanese yen at 185 not helping competition. However, the outlook for the second half is better, with improved order intake. He emphasized the pipeline of product developments, with new products launching early next year, which he is confident will create further value for customers worldwide. Q: What are the priorities and criteria for capital allocation, given the big move with FMC, and are share buybacks still on the table?A: CFO Miguel de Potter stated that the group is evolving from a company of 100% controlled and owned businesses to one with a long-term investment arm holding minority stakes in companies like FMC and the Darling Ingredients JV. Capital allocation will not come at the expense of the CapEx program. The buyback program has not been restarted but might be in the coming months. CEO Luc Duck added that they continue to acquire businesses that make sense, invest in organic growth, and make cornerstone investments in listed companies that create financial flexibility. Q: Can you elaborate on any exposure to Vinnova, either supply agreements or sourcing, and what is baked into the guidance regarding Vinnova scenarios?A: CEO Luc Duck explained that Vinnova is related to their SOP production. Some of their HEL, a byproduct, is used by Vinnova for PVC. Vinnova has again asked for an extension because they believe they can still find a buyer. The process has been ongoing for nine months, and if no buyer or investor is found, they will have to manage the situation. The guidance does not include any specific Vinnova scenario. Q: From which segments do you expect recovery or performance in H2, given the T-Power tolling agreement?A: CFO Miguel de Potter indicated that the bio-valorization segment should benefit from restructuring implemented over the last few years. The agro division was strong in H1 and should reflect that in H2. Machines and technologies have better order intake for H2, and DECA and industrial solutions should continue their H1 performance. CEO Luc Duck reiterated the guidance of 5% to 15% adjusted EBITDA growth for the full year. Q: How confident are you that FMC's financial situation is stable without requiring additional asset divestment or dilutive equity transactions, given the short interest and stock price near $11?A: CEO Luc Duck distinguished between stock price and cash situation, noting that FMC's bond financing has long maturities (2049, 2052, 2053). He managed expectations by stating they do not expect a boom next year, but they have patience and believe results will be delivered over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

It has been about a month since the last earnings report for FMC (FMC). Shares have lost about 9.9% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is FMC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. FMC reported second-quarter 2026 adjusted earnings of 26 cents per share, down 62% year over year. The bottom line beat the Zacks Consensus Estimate of 21 cents as favorable costs and a moderate currency tailwind partly offset lower pricing and volumes. Revenues, excluding India, were $841.4 million, down 20% year over year and 7% below the consensus estimate of $905 million. Organic revenues declined 22%, while the growth portfolio expanded in mid-single digits on strength in new active ingredients and Cyazypyr. North America sales declined 22.4% year over year to $249 million from $321 million. The decrease reflected weaker demand for core legacy products as strained grower margins affected purchasing, along with lower diamide partner orders and pricing pressure. EMEA revenues fell 17.7% to $214 million from $260 million. Latin America sales decreased 10.3% to $278 million from $310 million. The unfavorable comparisons reflected the broader impact of lower prices, reduced partner demand and weakness across core legacy products. Asia revenues, excluding India in the reported quarter, declined 36.5% to $101 million from $159 million a year earlier. India generated an additional $26 million in second-quarter 2026 reported revenues. As of June 30, 2026, FMC had cash and cash equivalents of $476.6 million. Long-term debt was $3.95 billion. FMC lowered its full-year 2026 revenue guidance, excluding India, to $3.50-$3.70 billion from $3.60-$3.80 billion. Adjusted EBITDA is now projected at $620-$680 million. Adjusted earnings are expected between $1.19 and $1.49 per share. Free cash flow guidance was raised to $75-$225 million because it now includes the licensing payment. For the third quarter, revenues excluding India are expected between $840 million and $900 million. Adjusted EBITDA is projected at $120-$140 million, with adjusted earnings of 5-13 cents per share. Fourth-quarter revenues excluding India are forecast between $1.06 billion and $1.20 billion, representing 4% growth at the midpoint. Adjusted EBITDA is expected at $275-$315 million, while adjusted earnings are projected between $1.09 and $1.33 per share. Since the earnings release, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -78.03% due to these changes. Currently, FMC has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise FMC has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FMC Corporation (FMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026, at 9 a.m. ET Director of Investor Relations - Curt Brooks Chairman, Chief Executive Officer and President - Pierre Brondeau Executive Vice President and Chief Financial Officer - Andrew Sandifer Operator: Ladies and gentlemen, thank you for joining us, and welcome to the First Quarter 2026 Earnings Call for FMC Corporation. This event is being recorded. I will now hand the conference over to Mr. Curt Brooks, Director of Investor Relations for FMC Corporation. Please go ahead. Curt Brooks: Good morning, and welcome to FMC Corporation's 2026 First Quarter Earnings Call. Today's prepared remarks will be provided by Pierre Brondeau, Chairman, Chief Executive Officer and President; and Andrew Sandifer, Executive Vice President and Chief Financial Officer. After prepared comments, we will take questions. Our earnings release and today's slide presentation are available on the FMC Investor Relations website, and the prepared remarks from today's discussion will be made available after the call. Let me remind you that today's presentation and discussion will include forward-looking statements that are subject to various risks and uncertainties concerning specific factors, including, but not limited to, those factors identified in our earnings release and in our filings with the Securities and Exchange Commission. Information presented represents our best judgment based on today's understanding. Actual results may vary based on these risks and uncertainties. Today's discussion and the supporting materials will include references to adjusted EPS, adjusted EBITDA, free cash flow, organic revenue growth and revenue, excluding India, all of which are non-GAAP financial measures. Please note that as used in today's discussion, CTPR means Chlorantraniliprole, earnings means adjusted earnings, EBITDA means adjusted EBITDA and sales refers to sales excluding India. A reconciliation and definition of these terms as well as other non-GAAP financial terms to which we may refer during today's conference call are provided on our website. With that, I will now turn the call over to Pierre. Pierre Brondeau: Thank you, Curt, and good morning, everyone. During the first quarter, we delivered results that exceeded the midpoint of our guidance range. In addition, we made good progress on our 2026 operational priorities, which are listed on Slide 3. These are strengthening the balance sheet through targeted debt reduction of approximately $1 billion, improving the competitiveness of our core portfolio, managing the post-patent transition for Rynaxypyr and supporting sales growth of new active ingredients, including Isoflex active, fluindapyr and Dodhylex active. I will start by providing an update on the progress of these 4 operational priorities, beginning with the debt reduction. We are continuing to target approximately $1 billion of debt paydown during 2026. The sale of our India commercial business continues to progress very well. We are in late stages with several potential buyers and expect to sign a definitive agreement in May. In addition, we are in advanced discussions with multiple potential partners regarding licensing of one of our new active ingredients, which we expect will include an upfront payment. We anticipate concluding talks in the coming weeks. The remainder of the debt paydown is expected to come from proceeds from the sale of noncore assets, including potential sales of noncore businesses and/or molecules as well as multiple sizable real estate opportunities, some of which are in advanced negotiations. Next, FMC continues to take decisive action to optimize our manufacturing cost structure and rebuild the competitiveness of a non-diamide core portfolio in a market increasingly impacted by low-cost generic competitors. We intend to shift production from high-cost plants to lower-cost sources in Asia. We expect this transition will be completed by Q1 2027 and that will result in a more competitive core portfolio. Additionally, in advance of the sale of our India commercial business, we have already completed the restructuring in Asia to account for the reduced size of the business. We continue to look for opportunities to further optimize our cost structure across the company in 2026. Regarding Rynaxypyr, we continue to advance our post-patent strategy with a clear focus, driving sales growth while keeping overall branded earnings that are flat. Our strategy is progressing, and we are seeing early signals that give us confidence. For example, we are observing positive reactions to a price repositioning with strong volume growth for high load formulations and differentiated mixtures. In addition, we are already seeing some small early share gains from other classes of insecticides. On the earnings side, ongoing cost improvements are supporting margin that are in line with our expectations. We continue to pursue additional opportunities for cost reduction, which will further improve the competitiveness of the Rynaxypyr business. We are still in the early stage of a post-patent Rynaxypyr market and believe that some customers are adopting a wait-and-see approach as they gauge the availability and efficacy of CTPR generic offerings. Our strategy will play out over the coming quarters as we implement our plan. And finally, regarding our new active ingredients, we are seeing solid growth. Sales of these products doubled year-over-year in the first quarter, highlighting the increasing demand from growers. The growth of this product is expected to build momentum, driven in part by new launches and additional registration. For example, we recently received regulatory approval for Isoflex active in the EU. This is a significant achievement as it is the first new herbicide approved in the EU since 2019. We expect product launches to begin in 2027, giving us new or expanded access to more than 55 million planted hectares of cereals, corn, oilseed rape and potato in the EU. In addition, many of our customers have requested preregistration exemptions to use Isoflex in Italy, Germany, France and Spain this year. If granted, this will represent upside to outlook for the second half. We continue to concentrate on these 4 operational priorities as the basis for improved results. In parallel, the Board authorized evaluation of strategic alternatives announced in February 2026 is progressing and multiple options are being evaluated. Turning to our first quarter results. Slide 4, 5 and 6 provide details on our performance. First quarter crop protection market conditions were mostly in line with our expectations. Challenging margins and stressed liquidity for customers and growers led to cautious purchasing in most countries. Lower grower margins also increased the willingness to use generic products or skip some preventative applications. As expected, the regions with more pronounced competitive pressure were LatAm and Asia, where generics are more prevalent. First quarter sales of $762 million were $12 million above the midpoint of the guidance, driven by better-than-expected FX and volume. While sales were 4% lower than prior year, sales were up 1% on a like-for-like basis after excluding India from both current and prior year periods. Sales made under the FMC brand grew 6% on a like-for-like basis and included strong volume growth in EMEA and North America in herbicides and Cyazypyr. This was mostly offset by lower sales to diamide partners. These partners accounted for nearly half of our overall price decline of 6%. The remaining drivers of lower price were branded Rynaxypyr price, repositioning to support our post-patent strategy and a competitive market for our legacy core products. Volume grew 2% and FX was a 5% tailwind. The growth portfolio significantly outperformed the core portfolio due to higher sales of branded Cyazypyr, new active ingredients and plant health. First quarter EBITDA of $72 million was $17 million higher than the high end of our guidance range with FX, cost and volume all favorable to expectations. Adjusted loss per share of $0.23 was $0.15 better than the guidance midpoint due to higher EBITDA. Looking ahead to Q2, our financial outlook is listed on Slide 7. We expect second quarter revenue to be between $850 million and $900 million. The 17% decline at the midpoint is almost entirely due to lower sales to diamide partners and the removal of India. Excluding these 2 factors, our results would be similar to prior year as branded volume growth in most regions and the low single-digit FX tailwind are offset by lower branded pricing due to competitive market in our core products as well as the brand Rynaxypyr pricing action. Adjusted EBITDA is expected to be $130 million to $150 million, down 32% at the midpoint to prior year. Lower sales are driving the decline, partially offset by favorable costs. Adjusted earnings per share is expected to be between $0.16 and $0.26. This represents a decline of 70% at the midpoint to prior year due mainly to lower EBITDA and higher interest expense. Turning to Slide 8. Our full year 2026 financial guidance ranges are unchanged from our last call. Sales of $3.6 billion to $3.8 billion represents a decline of 5% at the midpoint as a mid-single-digit price decline and the removal of India sales are partially offset by volume growth, including strong contribution from new products. EBITDA is expected to be $670 million to $730 million. At the midpoint, this is a 17% decline, mostly in the first half as lower price and FX headwind are partially offset by lower cost and volume growth. Adjusted EPS is expected to be $1.63 to $1.89, which is a 41% decline at the midpoint, mostly due to lower EBITDA and higher interest expense. We are maintaining our full year guidance despite the increased uncertainty related to tariffs and the conflict in Iran. We are beginning to see higher energy, transportation and petrochemical costs flow through to product costs. At the same time, current tariffs are lower, and there is potential to recover previously paid tariffs. At this stage, it remains difficult to forecast product costs or the magnitude and timing of future tariff impacts of recoveries given the uncertainty around the duration of the conflict in Iran and potential additional U.S. trade actions. As a result, we are currently assuming that the Iran-related cost pressure and tariff-related benefits largely offset each other. We expect to provide an updated outlook at our next earnings call as we gain greater clarity on how these factors may affect full year results. Slide 9 provides our implied second half guidance using our first quarter results and our second quarter outlook. At the midpoint, we are expecting sales and EBITDA to be largely consistent with last year's second half. Sales, excluding India, are expected to be up 1% at the midpoint versus last year, with volume growth outpacing a mid-single-digit price decline and a minor FX headwind. EBITDA is expected to decline 6% at the midpoint as lower price and minor FX headwinds are partially offset by volume growth and lower costs. Adjusted EPS is expected to be down 15% due to lower EBITDA, higher tax and higher interest expense. Turning to Slide 10. I'll walk through the key factors bridging second half 2025 EBITDA to 2026, and why we are confident in our expectations for the second half. We expect volume contribution to EBITDA to grow with roughly 2/3, driven by new active ingredients, particularly in LatAm and EMEA. We anticipate a mid-single-digit price decline, which is consistent across the full year. An FX headwind is expected to be mostly offset by cost favorability. Our expectation for the second half volume growth are reinforced by positive signals we are seeing in LatAm. At the end of April, we already have orders representing 32% of our H2 direct sales in Brazil, which validates our confidence in the second half outlook. By the end of June, we are expecting orders representing about half of second half direct sales. We have a higher percentage of commitment on a higher sales number versus last year, reflecting the impact of the new direct sales organization put in place in 2025, which is now in full action. The positive signals we are seeing in LatAm, combined with the demand for new active ingredients, give us confidence in achieving our second half targets. By the end of Q2, we also expect to have more clarity on a review of strategic options as well as debt paydown progress. We anticipate communicating these updates at the next earnings call. I will now turn the call over to Andrew. Andrew Sandifer: Thanks, Pierre. I'll start this morning with a few income statement items. First quarter sales benefited from a 5% currency tailwind, primarily coming from strengthening of the euro and the Brazilian real. As we progress through 2026, we expect FX to move from being a tailwind in the first half to being a minor headwind in the second half, resulting in an FX impact on revenue for the full year that is roughly neutral. First quarter interest expense of $64.8 million was up $14.7 million. This increase is driven by 2 factors: the higher rate on the subordinated debt we issued last May and higher short-term domestic borrowing costs. We continue to expect full year 2026 interest expense to be in the range of $255 million to $275 million, up approximately $25 million versus the prior year at the midpoint due to higher borrowing costs of our senior and subordinated notes following the redemption of the notes maturing in October of '26. We continue to expect depreciation and amortization for full year 2026 to be between $160 million and $170 million. The effective tax rate on adjusted earnings in Q1 was 17%, in line with our expected full year effective tax rate of 16% to 18%. Moving next to the balance sheet and leverage. We ended the first quarter with gross debt of approximately $4.5 billion, up $459 million from year-end. Cash on hand decreased $194 million to $391 million, resulting in net debt of approximately $4.1 billion, up $652 million from year-end, consistent with our normal seasonal working capital build. Gross debt to trailing 12-month EBITDA was 5.7x at quarter end, while net debt to EBITDA was 5.2x. We've continued to work with our bank group to further evolve our revolving credit facility to be more in line with our current credit ratings. On April 16, a further amendment to the revolver became effective. This amendment transitions the revolver to being fully secured, moving away from the springing collateral concept included in the prior amendment. The amended agreement maintains the current capacity of $2 billion and the current maturity of June 2028. We added a collateral package to secure revolver lenders worth approximately $6 billion through direct liens and up to approximately $9 billion, including subsidiary guarantees and pledges of stock of subsidiaries. As a result, we are substantially over collateralized. With the latest amendment, we now have 2 maximum leverage covenants. The first is maximum allowable total leverage, which considers all of FMC's outstanding debt. This total leverage covenant will not be measured until December 31, 2026, when it will be reinstated at 6.75x through December 31, 2027. The second is the newly added secured leverage covenant, which limits the amount of secured borrowing allowable to 3.5x trailing 12-month EBITDA over the life of the credit agreement. On March 31, our secured leverage would have been about 1.3x, well below the new covenant. To be clear, while the maximum total leverage covenant was technically waived for the first quarter, we were in compliance with the previous covenant. Total leverage was 5.67x at March 31 as compared to the prior total leverage covenant limit of 6.0x. We are appreciative of the 100% support from our bank group for these changes. We intend to go to market this quarter with a secured high-yield bond offering to redeem $500 million of notes that mature in October, market conditions permitting. Should market conditions turn unfavorable, we have more than adequate available liquidity to redeem the maturing notes if necessary. As we move through the rest of 2026, we will use all proceeds from asset disposals, licensing agreements, real estate opportunities, et cetera, to pay down debt. Moving on to free cash flow on Slide 11. Free cash flow in the first quarter was negative $628 million, $32 million lower than the prior year period. Lower EBITDA drove a decline in cash from operations year-over-year, which was only partially offset by lower capital spending. We continue to expect free cash flow for 2026 to be in the range of negative $65 million to positive $65 million or breakeven at the midpoint. This includes approximately $150 million in restructuring cash spending. Compared to the prior year, lower EBITDA, higher restructuring spending, higher cash interest expense and modestly higher capital expense are expected to be offset by improved working capital performance in the ongoing business, the liquidation of India working capital and lower cash taxes. With that, I'll hand the call back to Pierre. Pierre Brondeau: Thank you, Andrew. I'll close by simply saying that we remain focused on improving the business and results through the 4 operational priorities. I am happy with the progress we have made so far, and I expect that starting 2027, we will see more meaningful benefits reflected in our sales, earnings and balance sheet. Based on the actions we are taking, I believe the first half will represent an earnings trough for the business with higher sequential earnings in the second half of this year, followed by improved full year results in '27 and 2028. With that, we are happy to take your questions. Operator: Your first question comes from the line of Mike Sison with Wells Fargo. Michael Sison: Good start to the year. Pierre, you gave good detail on your second half outlook. Where do you think the biggest challenges are going to be to sort of hit that? Obviously, Brazil is going to be the biggest part of that. And then I'm just curious, it sounded like you were more confident in racking up orders for the second half. Maybe a little bit more color on the new sales organization and why those orders are coming in maybe better than last year? Pierre Brondeau: Yes. Thanks, Mike. Let me try to do one thing because I think that maybe the most -- the best way to explain H2 is to tell why we do expect such a ramp-up coming from H1 and what are the very key drivers. So I'm going to try to put that into a few buckets and tell you why we are confident. I'm going to take -- if you think about it, our forecast in H2 at the midpoint is about $425 million of sales improvement in H2 versus H1. So I'm going to try to take the 3 main buckets allowing us to have the expectation of this $425 million increase. The first one is the non-diamide core. We are expecting $150 million to $200 million of improvement. And the main driver is direct sales in Brazil. As I said in our prepared comments, we already have a very significant number of orders in hand. By the middle of the year, we should have half of the orders required to deliver our H2 number in Brazil. And that is because the new sales organization is now fully in action. Remember last year, we made that decision that organization was ready to act by April, May. But as you can see with the numbers we are giving of the orders we have in hand, we missed a big part of the season, not this year, and our orders in hand are already much higher than last year on a much bigger target number. Number two, of the improvement, about $50 million to $80 million is Rynaxypyr. Number one driver, and we see that every year, there is nothing new to it. It's always the same sequence. There is significantly less partner headwind in the second half than what we see in the first half. We also have a stronger branded performance in the second half. And the last one, the third one, maybe the most important is our new active ingredients, which are accounting for about $175 million to $200 million, mostly LatAm, North America, but also remember, the cereal season in EMEA in Great Britain, where we sell Isoflex is in the third quarter. So non-diamide core, $150 million to $200 million, Rynaxypyr, mostly with the less headwind from partners, $50 million to $80 million and new AI is about $175 million to $200 million. And the AI is very consistent with what we are seeing in the first quarter in terms of demand. Now that gives you a range of $375 million to $480 million for a guidance of $425 million. Puts and takes, obviously, will not be everything at the low end or at the high end. And we do have growth expected in Cyazypyr and plant health. So that gives us a comfortable range versus a targeted number. If I would do the H2 to H2 '25, '26, that's a very simple story. That's what we had in the prepared remarks. Basically, direct sales are the driver with new active ingredients, and that's offset by FX and price. So Mike, that's about the -- as precisely as I can do of a bridge with much higher level of confidence in each of those 3 buckets with what we are seeing right now. Operator: Your next question comes from the line of Duffy Fischer with Goldman Sachs. Patrick Fischer: So a question on Rynaxypyr and in particular, the partner sales. I think you've talked about that being $200 million in revenue, which for the company would, let's say, be 5% or 6% of total sales. But last year in Q1, your price was down 9%. You called out partner sales as being half of that. You also called out this Q1 partner sales being half of your price decline of 6%. So it seems like collectively, on a 2-year stack, that's been like 7% of total company sales price down on something that's like only 6% or 7% of the company's sales. So the math doesn't triangulate for me at least. So can you talk about how big was that partner sales at the peak? How big is it on the run rate today? And roughly how much is the price fallen for partner sales in particular? Pierre Brondeau: Yes. I'm trying to reconcile those numbers, especially using '25 to '26, that's the easiest comparison. First, in '25 versus '24, remember, that's where we had the highest price drop because that is the time when we had the highest cost reduction in the manufacturing of Rynaxypyr. So we are still seeing an impact as we continue to lower price, but less in '26 than it was in '25. We do expect to keep on reducing cost in '27. So you will also see price down on partner sales, but it will be even less than it is this year. From a size standpoint, maybe to summarize, if you remember what we said last year, our total Rynaxypyr sales were about $800 million. And that was made of $600 million of branded sales and about $200 million of partner sales. If we look at 2026, we are forecasting $700 million of Rynaxypyr sales. That will be $600 million of branded Rynaxypyr, flat number versus '25, but partner sales decreasing to a number lower than $100 million. So as you can see, partner sales because of price and also volume are going to be accounting in '26 for less than half of what it was last year. We believe that is a trend we're going to keep on seeing. At this point, the partner sales of $100 million going down next year, is going to be a very small part of our company. And regarding the branded sales, I think we believe that earnings for this year will be similar to prior year on similar sales. And that's what we are seeing right now is, in fact, as we were expecting, the volume gain, the improved mix, as I said in the prepared comments, a significant move toward high-end mixtures and high load with the new pricing, lower pricing, the cost reduction compensate for the lower price. So flat branded sales at $600 million, flat earnings for branded Rynaxypyr is the target for this year. Partner sales going from $200 million to $100 million. Operator: Your next question comes from the line of Josh Spector with UBS. Joshua Spector: I'm curious if you could talk a little bit about your views around input costs and what that means, particularly out of Asia broadly for your second half and fourth quarter? Is that something that you're going to have to get additional pricing for to offset this year? Or is that more of a 2027 event? And I'm honestly not sure that if generic prices are going up and maybe supply is more constrained, is that a risk or an opportunity for you in the second half? Pierre Brondeau: Thanks, Josh. Listen, we talked a lot about that when we were doing the forecast for the second half. And we felt we do not have enough information on the future impact on inputs for our business. I mean, we all know the situation for fertilizers and for crop protection. Today, we are seeing some impact of the Iran war. We have impact at the level of the transportation, distribution, delays plus cost. There is higher energy cost in some of our plants, especially in India. And we are seeing some of the raw material price increase. But at this stage, we've put a number in a forecast, but left it not at a significant level. It's very hard. If the war stops in the next few weeks, we believe the impact on us will be fairly minor. If it lasts for a long time, then that's going to be another story, but we do not have enough information. So at this stage, we're looking at the impact being pretty muted. We see some impact, but nothing major. We're going to have to be watching very, very carefully how it's evolving depending upon the length of the conflict. Regarding generics, there are 2 aspects. One is the information we are getting, the data we are given and what we see on the market. What we see on the market is pricing from generic leveling off. We do not have this pricing spiral down that we've seen over the last 2 years. So it seems like we are at a time at the market level where we are seeing a stable situation. Now information we have would tend to prove that there could be or there should be a price increase in the second half. We have not factored that in our H2 forecast because it's not reached the market yet. For example, I'm sure you've seen the announcement on Rynaxypyr moving from the low 20s to $47 to $50 a kilogram. Those are information which have not yet reached the market. We have not seen a significant jump, but all indication on exports and local pricing is that they are moving up. So to answer your question, we have not factored anything in the forecast, neither in terms of opportunity due to pricing of generics or significant impacts of the war. Operator: Your next question comes from the line of Vincent Andrews with Morgan Stanley. Vincent Andrews: Pierre, you mentioned potential other assets for sale. You spoke about real estate. Is there anything else within the FMC portfolio, I don't know, plant health, just to throw something out there. What else are you thinking of monetizing? And can you give us an order of magnitude of roughly what you think potential proceeds could be? And if you could give us a little description of some of the noncore real estate or other types of assets, so just we can have an understanding of what you're looking at? Pierre Brondeau: Yes. I'm going to give you as much detail as I can because, of course, negotiations being ongoing. They are confidential as much at the request of the people with whom we are negotiating than for us. But basically, where we are today on the target of $1 billion. Number one is, as I said, is India. We are expecting to close on the India deal in the month of May. We are very, very advanced. There is not that many issues remaining with the -- we have a few players still in the race, but we are weeks, maybe days away from signing an agreement. That's number one. Regarding the licensing of an active ingredient, we are in negotiation with multiple parties. We also -- it's a matter of weeks before we make a decision which partner to go with. The negotiations are ongoing. Then there is some -- we've been establishing a list of molecules, which are noncore for us, but which are of significant interest to some companies either because of the market they serve or because they have a specific strength in some crops where we do not play. So we have a few of those, which are right now -- a few molecules, which are right now in negotiation. And finally, we do have a few negotiations which are going on and some are quite advanced on real estate deal, which would be sale and leaseback of sites we have where, first of all, we do not need to own them. Second of all, it's easier to lease back. And third of all, they are much bigger than what we would need. If I put all of these together, and I'm only listing the things which are in active negotiation and well advanced, we have about line of sight to $700 million, about 70% of our target. That's what is currently in a very active negotiation. Operator: Your next question comes from the line of Mike Harrison with Seaport Research Partners. Michael Harrison: I was hoping Pierre that you could talk a little bit more about what you're seeing with Rynaxypyr taking share from other classes of insecticides? I know that's the strategy that you guys put in place by trying to reduce costs and take the price lower to make it more competitive. But maybe just give a little more detail on which specific classes you're seeing some share gains from, and if that gives you confidence that you're going to see further traction with that strategy? Pierre Brondeau: Yes. You will understand I'm going to be a little bit discreet around which specific class of insecticide because that would be talking directly the competitors who are leading those leaders in those different type of insecticide. But yes, we have seen that. Actually the only place where we are seeing concrete results right now of the extension of sales into different type of insecticides for Q1 is in North America. Indications we have is with what our sales force right now with the new pricing is targeting is a strong level of confidence that this is going to work. But North America was the place where we saw that the most in the first quarter. Now it's early stage, lots of players are taking a wait-and-see attitude. So the real proof of how well our Rynaxypyr strategy is working will be in Q3 and Q4. But yes, we have actual sales we have taken from other class of insecticides. The other thing which is going very well and maybe a bit better than we're expecting is the mix. With the new pricing we have for Rynaxypyr, we are seeing more and more of the growers moving toward the high-end part of our portfolio. Those are the high load and those are the advanced mixture. Now, it's always the same. It's Q1. It's not the biggest quarter for Rynaxypyr. It's an early stage, but I would say that the percentage of sales and the new mix for advanced technology is higher than we're expecting, which is very positive for us because it's despite the lower price, still a place where we have a solid price premium. I'd say, in the first quarter, about half of the sales moved toward the high-end part of the portfolio. Operator: Your next question comes from the line of Chris Parkinson with Wolfe Research. Christopher Parkinson: Pierre, I'd really like to dive a little bit more into some of the new products, which haven't necessarily been the greatest focus, but seem to be progressing pretty well. Beginning with Isoflex with the new registration and the kind of the tangible market opportunity, can you just kind of give a framework on how you're thinking about the initial opportunity as well as kind of the longer-term opportunity there? And then understanding that Brazil is obviously challenging for pretty much everybody at the end of last season, what's the update of Rynaxypyr in terms of like -- in terms of how your order book that you've been referencing the progress there, how does fit into that as well? Pierre Brondeau: Listen, Isoflex is going to be a very critical product, obviously, in Latin America, but it's going to be a very, very critical product in Europe. We believe that in not too long, that's what our team in Europe would say Isoflex will be very quickly bigger than Rynaxypyr and Cyazypyr together. Where are we on Isoflex, and that's a process which is a bit more complicated in Europe is, first, you need to obtain the registration of the active in the EU, which we just got a few weeks ago. So that's a very important step because only when you have that step, you can start to get registration for the product you would sell in each of the countries, the formulation you would sell in each of the countries. Great Britain is different. We obtained the registration for the formulation last year, and that's going to be the bulk of our sales in 2026. Now that being said, the product is working so well. We're going to have 100% of reorder and growth in Great Britain for this product. And our customers in multiple countries are asking for exemption to be able to use the product. So we don't know if that's going to happen or not. But all in all, going very well, confirming the performance of the product and the target numbers we've been giving so far are being confirmed. There is no showstopper here. Fluindapyr, same thing. Fluindapyr is growing fast. The only limitation to growth of fluindapyr, including in Brazil is the registration process. We do have 19 right now pending registrations, which, as we get them, it allows the product to grow. It's a part of the direct sales. Also, it's one of the driver for the success of direct sales in Brazil. So as I said, Rynaxypyr, we're going to have to see and wait on Q3, Q4. We have a good level of confidence. Fluindapyr, a new product, the level of confidence is higher. I mean that's -- the demand is very strong. So there is no issue here, only the speed at which we are getting the registration. Operator: Your next question comes from the line of Jeff Zekauskas with JPMorgan. Jeffrey Zekauskas: In the first quarter, your prices on average were down 6%. If you exclude diamides, what would prices have done? And secondly, in the first quarter, were Cyazypyr prices up or down or flat? Andrew Sandifer: Jeff, it's Andrew. I'll take that one. Look in first quarter for the non-diamide products, prices were down in the low single digits percent on that sales. We saw significant price reductions in branded Rynaxypyr and the partner Rynaxypyr business. But across the non-diamide core portfolio, which is the bulk of the rest of it, it's in the low single digits. It was a very good quarter in terms of repositioning. Volume, not great. We'll keep working on that. But I think as we continue to improve competitiveness of those costs, you'll start to see improvement there for the non-diamide core portfolio. For Cyazypyr, prices were relatively flat, but we did see good volume growth, particularly in Europe. So it's been -- it was a good quarter for Cyazypyr. Operator: Your next question comes from the line of Joel Jackson with BMO Capital Markets. Joel Jackson: Just following up on the partnering -- the licensing deal you're trying to do for the One AI with the upfront payment. If I heard correctly, it's one AI that you're looking at getting something close. I imagine you're looking at all of your new AIs. Could you maybe -- if that's correct, can you maybe elaborate a little bit on why one particular AI seems more likely with partners wanting to license it? Or is there something else happening? Or just talk about that dynamic, please? Pierre Brondeau: Yes. It is -- I'm going to give by answering that if you think about it more information maybe than I should. But actually, there is 2 different ways to think about licensing. When a product has full registration, you license the product or mixtures, but it's not a broad licensing of the molecule. For example, we take a product like Rynaxypyr -- sorry, fluindapyr. Fluindapyr is a product for which we have the active being registered and then people can develop formulations and get registration for formulation. So for this kind of product, you go with multiple licensing as you see opportunities. So for example, fluindapyr, we licensed part of the product to Bayer and to Corteva, Corteva last year and Bayer 2 years ago. So it's a very different approach. When you have the most advanced technology, for which one of your partners is very interested, it's a broader licensing, which is done because you don't have yet the registration. This work still needs to be done. So it's a full access to the molecule, but it's a very different type of approach because the product is not yet at a point of being commercial. So that's why if you think about our product, there are 3 products for which we have a significant number or start to have some registration and one which is still away from commercialization and registration. It doesn't mean -- by no means does it say that we will not be licensing the other products, but it will most often be licensing without upfront payment and the royalty is being paid as the product is being sold. Operator: Your next question comes from the line of Laurence Alexander with Jefferies. Laurence Alexander: Just on the new product pipeline approvals, what do you need to see in the back half of this year to know that 2027 is on track? Which ones are still pending that you think are particularly important? Pierre Brondeau: I don't have the list off the top of my mind. We have a road map with all of the registrations, which need to happen for '27. As I said -- and the number is 19. We have the exact road map. We know exactly where they are for the product. I could not go through the -- each of the country right now, but there is no place where we see specific delay, which would concern us in terms of 2027 target. Andrew Sandifer: Yes. I'll just build on that, Pierre. I think when you look at fluindapyr, a lot of that growth will be growth with existing registrations in existing countries. As we've said, we've gotten pretty much all the registrations for the active ingredient fluindapyr by country that we were targeting. So there's a lot more introduction of new formulations and just penetration of those countries to drive growth from '27 to '26 with fluindapyr. With Isoflex, it's really getting the product -- formulated product registrations in the EU. As Pierre commented earlier, we are seeing formal requests from growers in multiple European countries to try to get exemptions to use those products in advance of getting them fully registered. But certainly, in '27, we would hope to have full product registrations for all of the Isoflex-based products for particularly EU 27 countries, and that's a big driver of growth. The only really other place where there's big growth in the new active ingredients, we do expect a little bit more growth from Dodhylex. We do anticipate a few new registrations for Dodhylex in 2027. It's not nearly on the same scale of year-on-year growth as the growth from fluindapyr and Isoflex. So I think as we look to '27, it's really a continuation of the trend of fluindapyr and Isoflex that will drive new active ingredient growth with a little extra spice thrown into the mix from first early introductions of Dodhylex in a few other countries. Pierre Brondeau: And as Andrew said, I mean, if you think about fluindapyr, it's going to be mostly in North America and Latin America, and that's where we're getting -- we should be obtaining new formulation registration. Isoflex, we have the EU. It's all of the major country where we should get early in 2027, the registration for Isoflex. And Dodhylex, its registration in Asia. That's what counts. For Dodhylex, I would say 90% of the market is in Asia. So that's where we are expecting and watching the new registration. Operator: Your next question comes from the line of Matthew DeYoe with Bank of America. Matthew DeYoe: I am very far from being a tariff lawyer or anything like that, but is there any possibility that you get refunds that we're seeing kind of along the lines of some of these other companies that have been reporting that an opportunity set? And then, you said you're seeing some positive signs on mix improvement in Rynaxypyr in 1Q. I'm assuming the hope is that continues in 2Q, in the second half? And ultimately, the point is it will be a bigger book of business in 2H. What drives the variance around the success of that 2H? Is it the same mix shift? Is there a risk that the price premium you have on the lower end doesn't hold up in Brazil? Like how do we gauge the upside, downside of what this 2H might look like for Rynaxypyr? Pierre Brondeau: Yes. Okay. Let me start with the tariffs and then I'll go to Rynaxypyr, Tariffs, I'm not a tariff lawyer either. There is 2 types of tariffs which we have paid. There is tariffs which have been what's called... Andrew Sandifer: Liquidated. Pierre Brondeau: Liquidated, which means tariffs which have been through the process of being paid, collected and transferred to different places of usage and they are out of the customs. For this, there is no process in place to even file to recover them. It does not mean that we will not recover them. But right now, there is not a defined process. The other tariffs, the ones which have not been liquidated, which have been collected by custom, but which have not gone through the process of being dispatched and are still there, there is a process in place by which you can apply. Applying doesn't mean you get it, but you can apply for it. Those seem to have a higher probability to be collected faster than the others. Ultimately, all of them should be -- with a court decision should be recoverable. One category seems to be faster than the other, but frankly, we do not know. We do not know. It's still something we are watching very closely. We're working with the lawyers who are giving us their input. As I say, one category is very likely. One is don't know if a process will be put in place. Regarding Rynaxypyr, I think whether it's Brazil or North America in H2, all the strategy to be fully successful, I think the #1 criteria is how we are going to be performing in growing the percentage of sales on the high-end part, which is higher the high concentration or the mixtures and positioning them at the right price to still be competitive. The reason for that is because Rynaxypyr has been on the market for a while, there is resistance very much in China, starting to be significant in Latin America. Those formulations very often help positioning the product and address the resistance issue or the efficacy issue. So I'd say a significant part of our strategy and maybe in H2, more important than the gain of volume against generic with a single is that piece, succeeding in growing as much as we can the high-end part of our portfolio, which we are selling at a premium. It is what happened beyond expectation in Q1, but of course, on a lower volume than what we will see in Q3 and Q4. Also because the patent just ran out at the end of '25, generics are starting to be active in some countries like Brazil, North America, but let's face it, they will be more active in Q3, Q4 than they were in Q1. So the real test is in the second half of the year. Operator: This concludes the FMC Corporation earnings call. Thank you for attending. You may now disconnect. 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While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. FMC (FMC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in FMC Corporation? Here are five stocks we like better. Q2 results fell short on sales but beat on profitability: Revenue excluding India was $841 million, below guidance, while adjusted EBITDA reached $153 million, exceeding the high end of expectations. Weak crop economics, unfavorable weather, low insect pressure and pricing pressure reduced demand, driving adjusted EPS down 62% year over year to $0.26. FMC cut its full-year 2026 outlook: Sales are now expected at $3.5 billion to $3.7 billion, with adjusted EBITDA of $620 million to $680 million and adjusted EPS of $1.19 to $1.49. Management expects sales and EBITDA to return to year-over-year growth in the fourth quarter, supported by Brazil, new products and delayed North American orders. Debt reduction and restructuring remain priorities: Asset sales, licensing proceeds and a planned Tessenderlo investment are expected to generate about $1 billion for debt reduction, with year-end net debt targeted near $2.6 billion. Management views 2026 as a trough year and is targeting renewed growth in 2027 through cost reductions, portfolio restructuring and new active ingredients. Small-Cap Surge: 3 Stocks Ready to Ride the Market Rotation FMC (NYSE:FMC) reported second-quarter revenue of $841 million excluding India, below the low end of its guidance range, as cautious customer purchasing, unfavorable weather, low insect pressure and pricing pressure weighed on demand. However, adjusted EBITDA of $153 million exceeded the high end of management’s guidance by 2%, aided by cost discipline and favorable quarter-specific items. Adjusted earnings per share were $0.26, down 62% from the prior-year period, reflecting lower EBITDA and higher interest expense. Chairman, Chief Executive Officer and President Pierre Brondeau said growers and channel partners continued to manage costs and working capital closely amid weak crop prices, elevated input costs and geopolitical uncertainty. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now How Trump’s AI Push Could Boost These 3 Agriculture Stocks “Sales were below our expectation as a challenging operating environment, including geopolitical uncertainty, unfavorable weather and low insect pressure created additional pressure on both volume and price,” Brondeau said. FMC said second-quarter sales, excluding India, declined 1% below the low end of its outlook. The company had anticipated lower orders from diamide partners and registration losses in Europe, the Middle East and Africa, but also faced additional volume headwinds in North America and lower-than-expected demand in EMEA because of excessive heat. → Microsoft Just Flipped the AI Spending Narrative Overnight How a New Agriculture Boom Could Propel FMC Stock Higher North American performance was a particular negative during the quarter, according to Brondeau. He cited low rice production, weak insect pressure in specialty crops, grower cost-cutting and some switching from branded crop-protection products to generics. FMC also faced price and volume pressure in an herbicide product containing pyroxasulfone after the product’s intellectual property protection expired. Second-quarter pricing declined somewhat more than FMC’s prior expectation for a mid-single-digit decrease, driven by greater pressure on core legacy products. Pricing pressure was most pronounced in Latin America and, to a lesser extent, Asia, Brondeau said. → Carrier Earnings Could Send the Stock to a New All-Time High Still, the company reported growth in its newer active ingredients and in Cyazypyr. Sales of differentiated Rynaxypyr formulations and mixtures rose more than 35% year over year, while branded diamide sales excluding India were essentially flat. FMC said treated hectares in Brazil increased more than 40%, which management characterized as an encouraging early indicator for its strategy following Rynaxypyr’s patent expiration. FMC reduced its full-year 2026 sales outlook to a range of $3.5 billion to $3.7 billion, representing a 7% decline at the midpoint. The revised view reflects expectations for more pricing pressure and less growth in legacy-product volumes than previously projected. Adjusted EBITDA is expected to be $620 million to $680 million, down 23% at the midpoint. Adjusted EPS is forecast at $1.19 to $1.49, a 55% decline at the midpoint. Price is projected to decline by the mid- to high-single digits for the year. Volume is expected to be approximately in line with the prior year, as new active ingredients and direct sales growth in Brazil offset lower diamide-partner orders. The company expects third-quarter sales of $840 million to $900 million and adjusted EBITDA of $120 million to $140 million. FMC said lower pricing and lower volumes, including order shifts from North American distributors into the fourth quarter, are expected to affect the period. Management expects a return to year-over-year sales growth in the fourth quarter, forecasting revenue of $1.06 billion to $1.2 billion, up 4% at the midpoint, and adjusted EBITDA of $275 million to $315 million, up 5% at the midpoint. The anticipated fourth-quarter sales improvement is expected to be driven by increased direct and co-op sales in Brazil, new-product demand and the timing shift of North American distributor orders. Brondeau said FMC expects fourth-quarter cost favorability from cost-mitigation initiatives and lower raw-material costs. CFO Andrew Sandifer added that the third quarter is expected to have relatively flat costs, while the fourth quarter should benefit from stronger year-over-year raw-material purchase-price comparisons. FMC highlighted several transactions intended to strengthen its balance sheet and generate approximately $1 billion for debt reduction. These include a definitive agreement to sell its India commercial business for $252 million, a $200 million upfront payment from Corteva under a rimisoxafen licensing agreement, a framework agreement involving a Newark, Delaware property for $114 million, and a planned $400 million minority equity investment by Tessenderlo Group. The company also completed a $1.2 billion senior secured bond offering in May. Proceeds were used to redeem $500 million of senior notes maturing in October and reduce revolver borrowings. FMC ended the second quarter with gross debt of about $4.3 billion and net debt of approximately $3.8 billion, down $339 million from the prior quarter. Net debt to trailing 12-month EBITDA was 5.1 times. Based on expected free cash flow and proceeds from its planned transactions, management expects year-end net debt of about $2.6 billion, or roughly four times trailing 12-month EBITDA at the midpoint of its guidance. Second-quarter free cash flow was $357 million, up $318 million from a year earlier. The result included the $200 million Corteva prepayment, as well as lower receivables and lower cash taxes. FMC updated its full-year free-cash-flow outlook to $75 million to $225 million, including approximately $170 million of restructuring spending related largely to changes in its manufacturing and supply network. Brondeau said FMC views 2026 as a trough year and expects the company’s operational actions to support a return to growth in 2027. The company is seeking to improve the competitiveness of its core portfolio by exiting production assets that are no longer cost-competitive, transitioning production to lower-cost sources and reducing structural costs. FMC is also expanding its innovation pipeline. The company secured European Union registration for Isoflex active during the quarter, with launches expected to begin in 2027. Management said it expects new active ingredient sales to accelerate as additional registrations are secured, while partnerships and licensing arrangements can help fund development and generate operating cash flow. “The work underway in 2026 will position FMC to return to growth as early as 2027 and beyond,” Brondeau said. FMC Corporation is a global agricultural sciences company specializing in the development, manufacture and marketing of crop protection products. Its portfolio includes herbicides, insecticides, fungicides and plant nutrition solutions designed to enhance crop yield, quality and sustainability. In addition to core crop protection, FMC delivers solutions for turf management and pest control in urban and industrial environments. Founded in 1883 as the Bean Spray Pump Company and later known as Food Machinery Corporation, the business adopted the FMC name in 1948 and has since evolved through strategic acquisitions and divestitures. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "FMC Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

FMC Corporation FMC reported second-quarter 2026 adjusted earnings of 26 cents per share, down 62% year over year. The bottom line beat the Zacks Consensus Estimate of 21 cents as favorable costs and a moderate currency tailwind partly offset lower pricing and volumes. Revenues, excluding India, were $841.4 million, down 20% year over year and 7% below the consensus estimate of $905 million. Organic revenues declined 22%, while the growth portfolio expanded in mid-single digits on strength in new active ingredients and Cyazypyr. FMC Corporation price-consensus-eps-surprise-chart | FMC Corporation Quote North America sales declined 22.4% year over year to $249 million from $321 million. The decrease reflected weaker demand for core legacy products as strained grower margins affected purchasing, along with lower diamide partner orders and pricing pressure. EMEA revenues fell 17.7% to $214 million from $260 million. Latin America sales decreased 10.3% to $278 million from $310 million. The unfavorable comparisons reflected the broader impact of lower prices, reduced partner demand and weakness across core legacy products. Asia revenues, excluding India in the reported quarter, declined 36.5% to $101 million from $159 million a year earlier. India generated an additional $26 million in second-quarter 2026 reported revenues. As of June 30, 2026, FMC had cash and cash equivalents of $476.6 million. Long-term debt was $3.95 billion. FMC lowered its full-year 2026 revenue guidance, excluding India, to $3.50-$3.70 billion from $3.60-$3.80 billion. Adjusted EBITDA is now projected at $620-$680 million. Adjusted earnings are expected between $1.19 and $1.49 per share. Free cash flow guidance was raised to $75-$225 million because it now includes the licensing payment. For the third quarter, revenues excluding India are expected between $840 million and $900 million. Adjusted EBITDA is projected at $120-$140 million, with adjusted earnings of 5-13 cents per share. Fourth-quarter revenues excluding India are forecast between $1.06 billion and $1.20 billion, representing 4% growth at the midpoint. Adjusted EBITDA is expected at $275-$315 million, while adjusted earnings are projected between $1.09 and $1.33 per share. Shares of FMC have lost 74.4% in the past year compared with the industry’s 17.5% rise. Image Source: Zacks Investment Research FMC currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the basic materials space are The Chemours Company CC, Kronos Worldwide, Inc. KRO and Avient Corporation AVNT. Chemours is slated to report second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share. CC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Kronos is scheduled to report second-quarter 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO also flaunts a Zacks Rank #1 at present. Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FMC Corporation (FMC) : Free Stock Analysis Report Kronos Worldwide Inc (KRO) : Free Stock Analysis Report The Chemours Company (CC) : Free Stock Analysis Report Avient Corporation (AVNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance attribution for Q1 was driven by better-than-expected FX and volume, with sales growing 1% on a like-for-like basis excluding India. Management is executing a post-patent strategy for Rynaxypyr focused on price repositioning to drive volume growth while maintaining flat branded earnings through cost improvements. The company is shifting manufacturing from high-cost plants to lower-cost sources in Asia to rebuild the competitiveness of the non-diamide core portfolio against generic pressure. New active ingredients, including Isoflex and fluindapyr, doubled sales year-over-year, highlighting a strategic shift toward high-demand, proprietary growth products. Market dynamics remain challenging due to stressed grower liquidity and low-cost generic competition, particularly in Latin America and Asia. Strategic positioning is being reinforced by a new direct sales organization in Brazil, which has already secured orders representing 32% of expected second-half direct sales. Management noted that some customers are adopting a 'wait-and-see' approach regarding the availability and efficacy of generic CTPR offerings. Full-year 2026 guidance assumes that Iran-related cost pressures from energy and transportation will be largely offset by potential tariff-related benefits. Second-half EBITDA growth is predicated on a significant ramp-up in new active ingredient sales and reduced headwinds from diamide partners. Management expects 2026 to represent an earnings trough, with sequential improvements in the second half followed by growth in 2027 and 2028. The company targets approximately $1 billion in debt reduction during 2026, primarily through the sale of the India commercial business and non-core asset disposals. Isoflex product launches in the EU are expected to begin in 2027, with potential upside in late 2026 if preregistration exemptions are granted in key markets. A definitive agreement for the sale of the India commercial business is expected to be signed in May 2026. The company amended its revolving credit facility to a fully secured structure, providing a collateral package worth approximately $6 billion to $9 billion. Interest expense is expected to increase by approximately $25 million for the full year due to higher borrowing costs and debt redemptions. Uncertainty remains regarding the duration of the conflict in Iran and the timing of potential U.S. trade actions or tariff recoveries. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified three buckets: $150-$200 million from non-diamide core (mostly Brazil direct sales), $50-$80 million from Rynaxypyr (lower partner headwinds), and $175-$200 million from new active ingredients. Confidence is bolstered by having half of required H2 Brazil orders expected to be in hand by the end of June. Partner sales are expected to decline from $200 million to less than $100 million in 2026 due to both price and volume shifts. Branded Rynaxypyr sales are targeted to remain flat at $600 million, with cost reductions offsetting lower prices to keep earnings stable. Management has 'line of sight' to approximately $700 million (70% of the target) through active negotiations on India, licensing, and real estate. A licensing deal for a new active ingredient involving an upfront payment is expected to be concluded in the coming weeks. Management observed that generic pricing appears to be leveling off rather than continuing a downward spiral. While some data suggests generic prices may rise in H2, FMC has not factored this potential upside into its current guidance.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. FMC Corp (NYSE:FMC) delivered Q2 EBITDA of $153 million, which was 2% above the high end of its guidance range, driven by cost discipline and favorable items. The company made substantial progress on debt reduction, executing actions expected to generate $1 billion in proceeds, including a $400 million equity investment from Tess Group. Sales of differentiated post-patent diamide formulations grew more than 35% year-over-year in Q2, indicating strong demand for premium products. The company's new active ingredient pipeline is advancing, with the EU registration for Isoflex active expected to begin in 2027, and licensing deals validating the portfolio's value. FMC Corp (NYSE:FMC) expects a return to year-over-year growth in Q4 2026, driven by strong volume from new products and direct sales in Brazil. FMC Corp (NYSE:FMC) lowered its full-year 2026 revenue guidance to $3.5-$3.7 billion, a 7% decline at the midpoint, due to challenging market conditions and increased pricing pressure. Q2 sales of $841 million (excluding India) were 1% lower year-over-year, missing expectations due to a difficult operating environment with low insect pressure and geopolitical uncertainty. The company expects Q3 2026 EBITDA to decline 45% at the midpoint, driven by lower prices and volume headwinds from distributor inventory management. Full-year 2026 adjusted EPS is now expected to be between $1.19 and $1.59, a 55% decline at the midpoint, reflecting lower EBITDA and higher interest expense. Net debt to trailing 12-month EBITDA remains elevated at 5.1 times, and the company faces ongoing uncertainty from trade actions and geopolitical risks. Warning! GuruFocus has detected 11 Warning Signs with FMC. Is FMC fairly valued? Test your thesis with our free DCF calculator. Q: Can you walk through the key drivers for the significant EBITDA ramp from Q3 to Q4, and how certain are you of those buckets?A: Pierre Brandeau, CEO: The increase from Q3 to Q4 is driven by three main buckets. First, the non-diamide core business, including direct sales growth in Brazil, is expected to contribute about $150 million. Second, new active ingredients are expected to add about $70 million, driven by fluindapyr in South America and Isoflex in Australia. Third, other products, including branded diamides in Latin America, will contribute around $40 million. This totals an increase of roughly $260 million. The non-diamide core growth is partly due to normal seasonality (a typical 15% Q3-to-Q4 increase) and is higher this year due to our shift to direct sales in Brazil and order timing from North American distributors. Q: When do you think we will start to see the benefits of the restructuring work, and how does the patient get better going forward?A: Pierre Brandeau, CEO: We believe 2026 is the trough and the worst is behind us regarding the loss of IP protection for Rynaxypyr. We expect 2027 to be the first growth year. The growth algorithm includes: 1) The $2.1 billion non-diamide core business, which is down ~5% this year, should return to 1-2% growth in 2027 due to manufacturing footprint improvements, adding $120-150 million in sales. 2) New active ingredients growth should accelerate to 50-70% as more registrations come through, adding another $150-200 million. 3) The branded diamide business should continue its mid-single-digit growth, adding ~$20 million. This totals natural growth of $300-350 million in 2027 versus 2026. Q: Can you expand on the significant decline in North America and how sustainable the competitive market is there?A: Pierre Brandeau, CEO: North America was the negative news of the quarter, driven primarily by volume. We are very strong in specialty crops with our insecticide business. Rice production was at its lowest level since 1987, which is a big market for us, and there was very low insect pressure. In row crops, low grower margins and high uncertainty are leading growers to trade down to generic products or skip applications. To a lesser extent, we lost pricing on a licensed product (pyroxasulfone) that lost its IP protection. The number one driver for the decline in North America was volume. Q: Can you update us on the intermediate to longer-term growth trajectory for diamides, including the transition period and market share gains from other insecticide classes?A: Pierre Brandeau, CEO: The key positive sign is the portfolio mix shifting toward higher-end products. We are growing fast on new mixtures like Bifenthrin and Rynaxypyr, as well as high-concentration products, which command a premium. We are also seeing some signs of market growth, particularly in Brazil, where we are gaining share against lower-end insecticides. However, the big test will be in the second half of the year with the entrance of new generics in Latin America and North America. All indicators point toward the strategy of lower costs and a higher-end mix stabilizing earnings in 2027. Q: Given the lower EBITDA and higher leverage, what other actions might you consider, such as cutting the dividend, to protect the balance sheet?A: Pierre Brandeau, CEO: Regarding the dividend, it is a topic we discuss with the board annually, but no decision has been made at this stage. Andrew Sandifer, CFO: On free cash flow, we updated our guidance. The midpoint moved up $80 million, largely due to the $200 million prepayment from Corteva, which offset headwinds from lower EBITDA and higher restructuring costs. We are accelerating actions to improve our manufacturing network. We expect a release from working capital this year, particularly from inventory reduction, but we have more work to do on receivables and payables in 2027. Q: What were the quarter-specific items that benefited costs in Q2, and what are the headwinds/tailwinds for the second half?A: Andrew Sandifer, CFO: Q2 benefited from some improved cost favorability in non-manufacturing items like SG&A and R&D, as well as some smaller one-time items like an annual review of our achievement reserve. For the remainder of the year, Q3 will have a flattish cost tailwind, as it is a tough comp versus a very strong cost period in Q3 2025. Q4, however, will have a pretty strong cost tailwind, driven by lower purchase prices for raw materials. Q: Can you provide an update on where you stand in the restructuring efforts for diamides and Rynaxypyr, and are you holding gross margins stable?A: Pierre Brandeau, CEO: For Rynaxypyr, which is still patent-protected, we are preparing for the 2028-2029 period when we will lose data protection. The good surprise is that we keep finding ways to lower our manufacturing cost, which protects our gross margin and positions the product to gain market share over lower-end insecticides. For Cyazypyr, it is a different story. It is still a very profitable product growing in the mid-single digits, and we are preparing for its data protection situation post-2028. Q: Given the lower starting base, do you still believe in the mid-teens EBITDA growth algorithm into 2027 and 2028?A: Pierre Brandeau, CEO: We are expecting revenue and earnings growth in 2027. The most confident driver is the contribution from the high-end diamide mix and product portfolio, which is changing rapidly. We are expecting a very important registration soon in Brazil for a product to address resistance, which will be a significant source of growth next year. The key check for Q3 and Q4 is how fast we can penetrate the lower-end market of neonics using our low manufacturing cost. I do not see Rynaxypyr handicapping performance in 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

FMC (FMC) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +23.81%. A quarter ago, it was expected that this chemical producer would post a loss of $0.39 per share when it actually produced a loss of $0.23, delivering a surprise of +41.03%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. FMC, which belongs to the Zacks Agriculture - Operations industry, posted revenues of $841.4 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 7.03%. This compares to year-ago revenues of $1.05 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. FMC shares have lost about 21.1% since the beginning of the year versus the S&P 500's gain of 8.5%. While FMC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for FMC was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.61 on $940.28 million in revenues for the coming quarter and $1.61 on $3.7 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Agriculture - Operations is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Cibus (CBUS), is yet to report results for the quarter ended June 2026. This developer and licensor of plant traits for seed companies is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +57.4%. The consensus EPS estimate for the quarter has been revised 18.6% higher over the last 30 days to the current level. Cibus' revenues are expected to be $1.41 million, up 51.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FMC Corporation (FMC) : Free Stock Analysis Report Cibus, Inc. (CBUS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research