FMC (FMC)2025-05-01 18:11Revenue and Sales Performance - Revenue for Q1 2025 was 126.6 million or approximately 14% compared to the prior year, primarily due to pricing declines and lower volumes in all regions except Latin America [204]. - Sales in North America decreased by approximately 28%, while Latin America saw an increase of approximately 10% in Q1 2025 [204]. - Organic revenue change for Q1 2025 was a decline of 10% after accounting for foreign currency impacts [213]. - Revenue for the three months ended March 31, 2025, was 126.6 million or approximately 14% compared to the prior year, primarily due to a 9% price decline and lower volumes in all regions except Latin America [218]. Profitability and Earnings - Gross margin for Q1 2025 was 23.0 million from the prior year, but gross margin as a percentage of revenue improved to approximately 40% from 37% in the prior year due to lower raw material costs [204]. - Adjusted after-tax earnings from continuing operations for Q1 2025 were 45.4 million in the prior year [204]. - Adjusted EBITDA for the three months ended March 31, 2025, was 40.9 million or approximately 25% year-over-year, impacted by unfavorable pricing and reduced volumes [241]. - The net loss for the three months ended March 31, 2025, was 3.1 million in the prior year, influenced by lower sales and increased expenses [238]. Expenses and Cost Management - Selling, general and administrative expenses increased by approximately 5% to 68.7 million [204]. - Selling, general and administrative expenses increased by 172.0 million, primarily due to investments in new products and an expanded sales force in Brazil [225]. - Research and development expenses rose by 68.7 million, reflecting increased spending on project expenses [226]. - Restructuring charges for the three months ended March 31, 2025, totaled 33.7 million in the prior year, as part of the Project Focus initiative [229]. Debt and Cash Flow - Total debt as of March 31, 2025, was 4,335.7 million in the prior year [216]. - Cash provided by operating activities of continuing operations was (142.9) million for the same period in 2024 [251]. - Free cash flow for the three months ended March 31, 2025, was (187.8) million in 2024, primarily due to increased capital expenditures and working capital needs [267]. - Total debt increased to 3,365.3 million at December 31, 2024, with long-term debt remaining relatively stable [246]. Future Projections - The company expects 2025 revenue to be in the range of approximately 4.35 billion, essentially flat at the midpoint versus 2024, with a projected increase of 3% excluding the impact of divestitures [205]. - Adjusted EBITDA for 2025 is expected to be between 950 million, reflecting a 1% increase at the midpoint compared to 2024 results [205]. - The company expects 2025 free cash flow to range between 400 million, reflecting a normalization of working capital after a correction in 2024 [274]. - The company expects to incur approximately 425 million in pre-tax restructuring charges over the life of the program, including 100 million in non-cash asset write-off charges [279]. Capital Expenditures and Investments - Projected capital expenditures for 2025 are expected to be in the range of approximately 115 million, primarily driven by investments in new products [280]. - The company achieved 225 million by the end of 2025 [279]. Liquidity and Financial Position - The remaining borrowing capacity under the credit facility was 694.8 million [248]. - The company remains in compliance with all debt covenants and is committed to maintaining solid investment-grade credit metrics [247]. Shareholder Returns - The company paid dividends of 72.5 million during the three months ended March 31, 2025, and March 31, 2024, respectively, and expects to continue quarterly dividend payments [282]. - The company does not anticipate any share repurchases during 2025, except for purchases associated with equity compensation plans [281].