Agricultural Science Company FMC's Investor Day: Plans Non-Core Asset Sale, R&D Pipeline & Others

On Investor Day yesterday, FMC Corp FMC disclosed its new strategic growth plan.

The company announced a strategic review of non-core assets, which includes the potential sale of its non-crop product line, Global Specialty Solutions.

The company provided R&D pipeline details, including four new active synthetic ingredients expected to provide around $2 billion of revenue by 2033.

FMC plans to boost the biologicals platform to generate about $2 billion in revenue by 2033.

"We were pleased to host a strong turnout and communicate our path to profitable growth anchored by strategic imperatives," said Mark Douglas, president and chief executive officer.

"These range from strengthening our relationship with growers to ensure they have the best guidance on using the right technologies that address their needs, growing our leading Plant Health business, accelerating the discovery and commercialization of our R&D pipeline, and increasing operating leverage that leads to a leaner organization."

Earlier yesterday, FMC disclosed an outlook for FY24 revenue of $4.65 billion-$4.85 billion, adjusted EBITDA of $1.025 billion-$1.125 billion, and free cash flow conversion of greater than 100%.

Also, the company projects FY26 revenue of $5.5 billion-$6.0 billion and adjusted EBITDA of $1.3 billion- $1.5 billion.

"We expect 2024 to be a year of substantial cash generation driven by improved earnings and a release of working capital. Over the next 18 to 24 months we anticipate significant free cash flow and a return to more normal leverage levels with a new average net leverage target of approximately 2 times adjusted EBITDA," stated Andrew Sandifer, executive vice president and CFO.

Price Action: FMC shares are trading lower by 0.86% at $52.97 on the last check Friday.

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