FMC Corporation

Ladies and gentlemen, thank you for joining us and welcome to the second quarter 2026 earnings call for FMC Corporation. This event is being recorded and all participants are currently in a listen-only mode. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. Should you experience difficulties during today's call, please signal a conference specialist by pressing star zero. I will now hand the conference over to Mr. Curt Brooks, Director of Investor Relations for FMC Corporation. Please go ahead.

Good morning, and welcome to FMC Corporation's 2026 Second 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, earnings means adjusted earnings, EBITDA means adjusted EBITDA, and sales reverse to sales excluding India. A reconciliation and definition of these terms as well as other non-GAAP financial terms to which you may refer during today's conference call are provided on our website. With that, I will now turn the call over to Pierre.

Thank you, Garrett, and good morning, everyone. In the second quarter, we continued to execute against our priorities. We delivered EBITDA above our guidance, generated meaningful free cash flow, and advanced several initiatives that strengthened our balance sheet. Sales were below our expectations as a challenging operating environment, including geopolitical uncertainty, unfavorable weather, and Low Insect Pressure created additional pressure on both volume and price. Growers and channel partners remained focused on managing costs and working capital, which resulted in cautious purchase patterns across any markets. Against this backdrop, we continued to make progress on our four operational tiers, reducing deaths Improving the competitiveness of a core portfolio, managing the post-patent transition for a next year, and growing new active ingredients. These pillars remain the foundation of the company's plan to improve earnings and cash generation while positioning FMC for future growth and the expanding contribution of its innovation pipeline. With the equity investment from Thessendale Group marking the conclusion of the strategic review, we now have clarity on the path forward and are focused on execution. We made substantial progress during the quarter, particularly in strengthening our balance sheet through these reductions. Over the past several months, renounced the key components of a plan to generate $1 billion of proceeds to pay down debts. These include signing a definitive agreement for the sale of our India commercial business for $252 million, closing on the licensing agreement for Remix Oxafone with Corteva and an upfront payment of $200 million, Entering into a framework agreement for a new work, Delaware, property for $114 million, reaching an agreement with Tessender Group for a $400 million minority equity investment, as well as progressing on several smaller assets sales. Together, these actions are expected to significantly strengthen Our balance sheet and liquidity positions Combined with a successful $1.2 billion secured bond offering we completed in May, they will provide greater financial flexibility as we continue to execute our strategy. Andrew will discuss the impact on our balance sheet and cash flow in more detail shortly. With that production well underway, our attention remains on the operational actions that will improve business performance over time. Turning to our second pillar, improving the competitiveness of our core portfolio. Over the past year, we have focused on simplifying how we operate, improving the efficiency of our manufacturing and supply chain network, and reducing structural costs across the business. These actions are intended to strengthen our competitive position and better align our cost structure with the markets we serve. As previously announced, our objective is to exit active ingredients and formulation production assets that are no longer cost competitive and transition production and many more. Moving to a third pillar, We remain focused on executing a post-patent strategy for Renexapier. We continue to see strong demand for differentiated formulations and niches. Sales of these products grew more than 35% year over year during the second quarter. We also remain focused on volume growth, outpacing lower pricing, As the market evolves, despite increased generic competition, branded-diamide sales, excluding gas, were essentially flat year over year. Over time, we expect branded-diamide to grow in revenue as pricing stabilizes and we continue to take market share from all the classes of insecticides. We are already seeing Encouraging signs of volume growth. In the second quarter, we saw very strong gains in hectares treated in key countries like Brazil, where product on the ground usage is up over 40%. These results reinforce our confidence in our post-pattern strategy. Our fourth pillar remains on track with our expectations. During the quarter, we continued to advance registration and commercialization efforts around the world, including securing registration of ISOFLEX active in the EU, with launches expected to begin in 27. As we have discussed previously, the pace of growth of new technology is influenced not only by customer adoption, but also by the timing of regulatory approvals and registrations which are outside of our control. We continue to see external validation of the value of our innovation pipeline. The licensing agreement for Unisoc Safran with Corsiva represents the third significant licensing agreement involving one of our proprietary active ingredients. following agreements of Isoflex Active with Bayer and Fundapier with Corteva. Turning to our second quarter results on slide four, five, and six provide detail of our performance. The operating environment for crop chemical remains challenging. Growers are faced with a difficult situation of low prices for many crops Thank you very much. or reducing the number of applications. In addition, data from a proprietary art farm intelligence insect monitoring platform provides unique visibility into field conditions and indicates lower insect pressure so far this year. With our current portfolio weighted more toward insecticide This is especially relevant to FMC. We expect that over the next few years, the introduction and expansion of our new active ingredients will shift FMC to a more balanced portfolio with less reliance on insecticides and a stronger position in herbicides and fungicides. Our second quarter revenue of $841 million, excluding India, was 1% lower than the low end of our guidance range. As we forecasted, there were reduced orders from dynamite partners as well as expected registration losses in the NBA. However, we encountered additional volume headwinds in North America, a strained margin drove careful purchasing behavior for growers of non-specialty crops. Excessive heat in the MEA also led to lower than expected demand. We saw strong volume growth in new Renexapier formulations, particularly in Brazil and North America. New actives showed good growth, but we do not expect the bulk of the year-on-year increase to a pure until the fourth quarter when Fluent appears in Latam and North America as well as Isoflex in Australia will be in higher demand. Second quarter pricing was down slightly more than our mid single digit expectation due to greater than expected pressure on core legacy products. Similar to prior quarters, There was more pronounced pricing pressure in LATAM and, to a lesser degree, Asia. New active ingredients and sales up here delivered solid growth during the quarter, contributing to higher sales from our growth portfolio. Turning to slide 6, we reported second quarter EBITDA of $163 million, which was 2% above the high end over a gallon's range, driven by greater than expected cost favorability. This was primarily driven by spend discipline in non-manufacturing areas and a few favorable quarter-specific items. Adjusted earnings per share of 26 cents was 62% lower than prior, Due to the reduction in EBITDA and higher interest expense. The result was at the high end of a guidance range driven by EBITDA. Shifting to a forward guidance, our updated financial outlooks are on slide 7 through 9. Starting with slide 7. Full year sales are now expected to be $3.5 billion to $3.7 billion, a decline of 7% at the midpoint. We have updated a full year outlook to reflect the more challenging market conditions we've seen so far this year. We now expect more pricing pressure and less volume growth of core legacy products than our prior forecast. Volume is now expected to be in line with prior as sales of new active ingredients and increased Eric sales to grow in Brazil offset reduced diamide partner orders. Price is expected to decline mid to high single digit consistent with what we observed in the first half. The removal of India is a 2% headwind and FX is expected to be a low single-digit tailwind. Adjusted EBITDA is now expected to be between $620 million and $680 million. The 23% decline at the midpoint reflects lower price and FX headwinds partially offset by favorable costs. Adjusted EPS is expected to be between $1.19 and $1.49 with the 55% decline at the midpoint reflecting both lower EBITDA and higher interest expense. Given the uncertainty around the duration of the conflict in Iran and potential U.S. trade actions, we continue to assume that the iron-related cost pressures and tariff-related benefits largely offset each other. Turning to slide eight, we expect third quarter sales between $840 million and $900 million. We expect the market conditions that we observed in the second quarter to persist in the third quarter. The majority of the 9% midpoint sales decline is due to price, which is expected to be the mid to high single-digit headwind. Volume is expected to be lower, mainly driven by North America distributors managing inventory by shifting orders from Q3 to Q4. In Brazil, we are continuing a strategy to overall sales, to distributor, to favor co-ops and direct sales. This decision negatively impacts Q3 sales and favor Q4 sales. It reflects our intent to continue to stabilize the performance and predictability of Brazil's sales as we enter Q4 in 2037. We expect overall growth portfolio sales to increase in the quarter, driven by solid performance from new active ingredients. Third quarter EBITDA is expected to be between $120 million and $140 million. This represents a 45% decline at the midpoint, driven mainly by lower price with volume and SX, acting as secondary headwinds. Adjusted EPS is expected to be $0.05 and $0.30, a decline of 90% at the midpoint driven by lower EBITDA and higher interest. Slide 9 provides our outlook for the fourth quarter, which we expect will represent a return to year-over-year growth. Sales are expected to be between $1.06 billion and $1.2 billion, an increase of 4% at the midpoint. We are not expecting major changes to market conditions, and as such, we are forecasting a price decrease similar to the first three quarters in the mid to high single digits. We are expecting strong volume growth but it is not based on the assumption of sharp improvement in regional markets. About half of the volume growth is expected to come from increased sales in Brazil driven by new products and a more established sales force which has now been in place for over a year. The remaining half of fourth quarter growth is expected to come from new products as well as the shift in order timing by North America distributors from Q3 to Q4. Fourth quarter EBITDA is expected to be between $275 million and $315 million representing 5% growth at the midpoint. Lower price and FX headwind are expected to be more than offset by favorable cost and higher volume. We are expecting strong cost favorability due to cost mitigation actions including lower raw materials. Adjusted EPS is expected to be between $1.09 and $1.33. This represents a 1% increase at the midpoint as higher EBITDA model offsets elevated interest expense. I will now turn the call over to Andrew.