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In the Q&A, Brondeau provided a clearer view of proceeds that are already being pursued, while noting confidentiality limits. He said that, considering items in “active negotiation and well advanced,” FMC has “about line of sight to $700 million, about 70% of our target.” He described three categories:

• India commercial business sale, with an agreement expected in May

• Licensing negotiations for an active ingredient with multiple parties

• Real estate transactions, including sale-leaseback of sites

Cost and competitiveness actions, including shifting production to Asia

Brondeau said FMC is taking steps to optimize manufacturing costs and “rebuild the competitiveness of a non-diamide core portfolio” amid low-cost generic pressure. He said the company intends to shift production from higher-cost plants to lower-cost sources in Asia, a transition expected to be completed by the first quarter of 2027.

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He added that, ahead of the planned India commercial business sale, FMC has already completed restructuring in Asia to reflect the reduced size of the business and is continuing to look for broader cost optimization opportunities during 2026.

Rynaxypyr post-patent strategy: price repositioning, mix shift, and partner sales decline

On Rynaxypyr, Brondeau said FMC’s post-patent strategy is focused on driving sales growth while keeping “overall branded earnings direct flat.” He said the company is seeing a positive reaction to price repositioning, including “strong volume growth for our high-load formulations and differentiated mixtures,” as well as “some small early share gains from other classes of insecticides.”

In response to questions about where share gains are showing up, Brondeau said the only place with “concrete results right now” in the first quarter was North America, while adding that “the real proof” of the strategy will come in the third and fourth quarters as more customers evaluate generic chlorantraniliprole (CTPR) alternatives. He also highlighted mix as a positive early indicator, saying the share of sales shifting toward the high-end portion of the portfolio was higher than expected in the quarter and that “about half of the sales moved toward the high-end part of our portfolio.”

Brondeau also discussed the expected decline in sales to diamide partners. He reiterated that in 2025 Rynaxypyr sales totaled about $800 million, comprising “$600 million of branded sales and about $200 million of partner sales.” For 2026, he said FMC forecasts about $700 million of Rynaxypyr sales, with branded sales holding at about $600 million while partner sales decline to “a number lower than $100 million.”

First-quarter results: FX tailwind and volume helped offset price pressure

FMC posted first-quarter sales of $762 million, which Brondeau said was $12 million above the midpoint of guidance due to better-than-expected foreign exchange and volume. Sales were down 4% versus the prior year, but were up 1% like-for-like when excluding India from both periods. Brondeau said FMC-branded sales grew 6% like-for-like, supported by strong volume growth in EMEA and North America, partially offset by lower sales to diamide partners.

Pricing was a headwind. Brondeau said overall price was down 6%, and that lower pricing to diamide partners represented “nearly half” of the decline. Other drivers included branded Rynaxypyr price repositioning and a competitive environment for legacy core products. Volume was up 2%, while foreign exchange was a 5% tailwind.

Adjusted EBITDA for the quarter was $72 million, which management said was $17 million above the high end of guidance, with FX, cost and volume all favorable versus expectations. FMC reported an adjusted loss per share of $0.23, which was $0.15 better than the guidance midpoint.

Chief Financial Officer Andrew Sandifer said the quarter benefited from currency strength, primarily the euro and Brazilian real, and he expects FX to shift from a tailwind in the first half to a minor headwind in the second half, leaving full-year FX impact “roughly neutral.” Sandifer also said first-quarter interest expense was $64.8 million, up $14.7 million, driven by the rate on subordinated debt issued last May and higher short-term domestic borrowing costs.

Outlook: Q2 decline driven by diamide partner sales and India removal; full-year ranges unchanged

For the second quarter, FMC guided revenue to $850 million to $900 million. Brondeau said the year-over-year decline at the midpoint is “almost entirely due to lower sales to diamide partners and the removal of India.” The company expects adjusted EBITDA of $130 million to $150 million and adjusted EPS of $0.16 to $0.26, with lower EBITDA and higher interest expense contributing to the year-over-year decline.

Full-year 2026 guidance was unchanged, with sales of $3.6 billion to $3.8 billion, EBITDA of $670 million to $730 million, and adjusted EPS of $1.63 to $1.89. Management said it is maintaining guidance despite uncertainty related to tariffs and the conflict in Iran, noting higher energy, transportation and petrochemical costs beginning to flow through product costs. Brondeau said FMC is currently assuming that Iran-related cost pressure and tariff-related benefits “largely offset each other” and expects to update investors as visibility improves.

Sandifer said FMC ended the quarter with gross debt of about $4.5 billion and net debt of about $4.1 billion, reflecting a seasonal working capital build. He also described an April 16 amendment to FMC’s revolving credit facility that transitions the revolver to being fully secured while maintaining $2 billion of capacity and a June 2028 maturity. He said FMC intends to go to market during the quarter with a secured high-yield bond offering to redeem $500 million of notes maturing in October, “market conditions permitting.”

Free cash flow in the first quarter was negative $628 million, and Sandifer reiterated full-year free cash flow guidance of negative $65 million to positive $65 million, including about $150 million of restructuring cash spending.

Looking beyond the near term, Brondeau said he believes the first half of 2026 will be an “earnings trough,” with higher sequential earnings expected in the second half and more meaningful benefits beginning in 2027 as the company’s operational actions take hold.

About FMC (NYSE:FMC)

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.

The article " FMC Q1 Earnings Call Highlights " was originally published by MarketBeat.