FMC Corporation Q4 FY2025 earnings call

• Strengthening the balance sheet: Targeting to pay down over $1 billion of debt through asset sales and licensing agreements, including the ongoing sale of the India commercial business with binding bids expected in the second quarter.
• Improving competitiveness of core portfolio: Goal to lower the cost of non - diamide products by at least 35% by 2027, though this will limit flexibility in 2026.
• Rynaxypyr post - patent strategy: 2026 will see generic offerings of CTPR, using advanced formulations and mixtures to address resistance, and aiming for branded Rynaxypyr earnings to be in line with prior years in 2026.
• Driving growth of new active ingredients: Sales of new active ingredients grew 54% in 2025, with expectations of $300 million to $400 million in 2026 and over $2 billion by 2035.

1. Non - Rynaxypyr core products: 2025 sales were approximately $2.2 billion. 2. Rynaxypyr: 2025 sales were just over $800 million. 3. New active ingredients: Sales increased from approximately $130 million in 2024 to approximately $200 million in 2025, a 54% growth in 2025 but below the expected $250 million. Estimated 2026 sales for new active ingredients are between $300 million and $400 million.

• Full - year 2026 sales expected to be $3.6 billion to $3.8 billion, down 5% at midpoint vs prior year. Price to be mid - single - digit headwind from Rynaxypyr, removal of India to be 2% headwind in first half. Excluding India, volume expected to be modestly higher due to new actives and branded Rynaxypyr.
• Full - year adjusted EBITDA expected to be $670 million to $730 million.
• First - quarter 2026 sales guidance: $725 million to $775 million, 5% lower than prior year; adjusted EBITDA expected to be $45 million to $50 million.
• 2026 free cash flow expected to be in the range of negative $65 million to positive $65 million, breakeven at midpoint.

• Competitiveness of legacy portfolio: Impact on sales and profitability due to lack of competitiveness.
• Rynaxypyr generic entry: Resistance likely to increase, affecting sales; also impacting diamide partners.
• Registration delays: For new active ingredients like isoflex in Great Britain in 2025, affecting sales expectations.
• Strategic review uncertainty: Uncertainty around the outcome of exploring strategic options including potential sale of the company.

Q: Could you help think about the different relative contributions of products in the portfolio to the EBITDA target?

A: We don't break out profitability by product line. The core portfolio's non - Rynaxypyr part is a big contributor. Branded Rynaxypyr business expected to deliver flat earnings year on year. Growth portfolio from new actives, Cyazypyr, and plant health will have increasing contribution.

Q: Have you had any discussions so far on the sale of the entire company, any interest?

A: We've worked with our board, presented a business plan, and are now undertaking a process to explore strategic alternatives including potential sale of the company, having hired financial and legal advisers.

Q: How confident are you in having a good sense of the challenges facing the company?

A: We've identified the main challenges are the core portfolio outside of Rynaxypyr and partner sales for Rynaxypyr. We know how to fix the core portfolio issue and the plan is in place. The rest of the portfolio is performing as expected.

Q: Update on upcoming debt maturities and covenant obligations?

A: $500 million bonds maturing in October, intent to refinance in advance. Intensely focused on reducing debt by a billion dollars in 2026 through asset sales and licensing agreements; discussions underway on sale of India business and other asset disposals; recently renegotiated revolving credit facility with high covenants.