Q1 2025 FMC Corp Earnings Call

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Unknown Executive: Good morning and welcome to the first quarter 2025 earnings call for the FMC Corporation. This event is being recorded and all participants are in a listen only mode. Did you need assistance? Please signal a comfort specialist by pressing the star key followed by zero. After today's prepared remarks, there will be an opportunity to ask questions to be placed in a Q&A queue. please press the star key, then one at any time. If you are using a speakerphone, please pick up the headset before pressing the keys.

Speaker Change: Good morning, and welcome to the first quarter 2025 earnings call for FMC Corporation. This event is being recorded all participants are in a listen only mode did you need assistance. Please signal a conference specialist by pressing the star key followed by zero after today's prepared.

Remarks, there will be an opportunity to ask questions.

We placed in the Q&A queue.

Speaker Change: Please press the star key than one at any time, if you are using a speakerphone. Please pick up the handset before pressing the keys.

Curt Brooks: I'd now like to turn the conference over to Mr. Curt Brooks, Director of Investor Relations for FMC Corporation. Please go ahead. Thank you.

Speaker Change: To turn the conference over to Mr. Kurt Brooks Director of Investor Relations for FMC Corporation. Please go ahead.

Speaker Change: Thank you.

Curt Brooks: Good morning, everyone, and welcome to FMC Corporation's first quarter earnings call. Joining me are Pierre Brondeau, Chairman and Chief Executive Officer, Andrew Sandifer, Executive Vice President and Chief Financial Officer, and Ronaldo Pereira, President. Today, Pierre will review our first quarter performance and provide an outlook for the second quarter. He will also comment on our full year outlook for 2025. Andrew will provide an overview of select financial results.

Speaker Change: Good morning, everyone and welcome to FMC Corporation's first quarter earnings call joining.

Speaker Change: Joining me are peer, Brian Dow Chairman and Chief Executive Officer, Andrew Sandifer, Executive Vice President and Chief Financial Officer, and Ronaldo Pereira President.

Speaker Change: Pierre will review, our first quarter performance and provide an outlook for the second quarter.

Pierre: He will also comment on our full year outlook for 2025.

Pierre: Andrew will provide an overview of select financial results. After our prepared remarks, we will take questions.

Unknown Executive: After our prepared remarks, we will take questions.

Unknown Executive: Our earnings released in today's slide presentation are available on our 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.

Pierre: Our earnings release, and today's slide presentation are available on our website and the prepared remarks from today's discussion will be made available after the call.

Pierre: 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.

Pierre: Information presented represents our best judgment based on today's understanding.

Pierre: 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 and organic revenue growth all of which are non-GAAP financial measures.

Unknown Executive: Today's discussion and the supporting materials will include references to adjusted EPS, adjusted EBITDA, free cash flow, and organic revenue growth, all of which are non-GAAP financial measures. Please note that it's used in today's discussion. CTPR means Clarence and Earl Perl. Earnings means adjusted earnings and EBITDA means adjusted EBIT.

Pierre: Please note that is used in today's discussion Cdpr means, Florida <unk> earnings means adjusted earnings and EBITDA means adjusted EBITDA.

Unknown Executive: A reconciliation and definition of these terms, as well as other non-GAAP financial terms to which we may refer during today's conference call, are provided on our website.

Pierre: A reconciliation and definition of these terms as well as other non-GAAP financial terms to which we may refer during today's conference call are provided on our website with that I will now turn the call over to Pierre.

Pierre Brondeau: With that, I will now turn the call over to Pierre. Thank you, Curt, and good morning, everyone. I have stressed that 2025 will be a pivotal year for the company, highlighting four critical focus areas, including decreasing the amount of FMC products in the channel to align with customer target inventory levels. Implementing a post-patent strategy for the next year. Establishing an additional route to market in Brazil by selling directly to large corn and soybean growers and ensuring that a growth portfolio consisting of sales up here, the four new active ingredients and plant health has appropriate resources in place to meet our target.

Pierre: Thank you Kurt and good morning, everyone.

Pierre: I have stressed that 2025 will be a pivotal year for the company highlighting for critical focus areas, including decreasing the amount of FMC product in the channel to align with customer target inventory levels.

Pierre: Implementing a post patent strategy for the next year.

Pierre: Establishing an additional route to market in Brazil by selling directly to large corn and soybean growers.

Pierre: And ensuring that our growth portfolio consisting of sales at the.

Pierre: <unk> key ingredients and plant health has the appropriate resources in place to meet those targets.

Pierre Brondeau: I would like to start by providing a brief update on the strong progress we made in these four areas during our first quarter. Prudent Selling in Q1 supported the high focus on moving a product from the channel to the ground has allowed the company to approach appropriate levels of channel inventory in all regions, excluding Asia. While this stocking is nearly complete in most countries, we will maintain the same deliberate sales strategy that we had in Q1 during Q2 for countries where we have not yet reached targeted levels. This will put us in a strong position for the second half of the year.

Pierre: I would like to start by providing a brief update on the strong progress we made in these four areas during our first quarter.

Pierre: Prudent selling in Q1 supported the high focus on moving our products from the channel to the ground has allowed the company to approach a appropriate levels of channel inventory in all regions.

Pierre: Excluding Asia.

Pierre: Well do you still king is nearly complete in most countries. We will maintain the same deliberate sales strategy that we had in Q1 during Q2 for countries, where we have not yet reached targeted levels.

Pierre: This will put us in a strong position for the second half of the year.

Pierre Brondeau: Our RELAX-APIR strategy has been implemented and is gaining momentum.

Pierre: <unk> strategy has been implemented and is gaining momentum.

Pierre Brondeau: Simply. The strategy is to offer basic solar formulations over an XRPR and the trusted FMC brand names at lower prices to compete with generic. who are also providing higher value versions of the molecule to new, often patented, formulations and mixtures.

Pierre: Simply put.

Pierre: Our strategy is to offer basics total formulations over the next at PR and the trusted FMT brand names at lower prices to compete with generic.

Pierre: We're also providing higher value versions of the multi Q2, new orphan patented formulations and mixtures.

Pierre Brondeau: regarding a new product. We have already commercialized a new mixture for anaxapine and bifenthrin for pest spectrum enhancement. as well as a high load product for ease of use and lower cost for the grower. During the second half of this year, we will launch the large effervescent granule, the tablet for rice application. This patented and innovative technology offers a concentrated effervescent formulation that disperses upon contact with water, is lightweight, and can be applied to handheld dispensers. Sales of these new generation products are expected to reach $200 million to $250 million in 2025. In addition, we're expecting three new mixtures in 2026 that will address resistance issues and broaden the spectrum of control.

Pierre: Regarding our new product, we are already commercialized new mixture for an excellent year in <unk> for pest spectrum enhancement.

Pierre: As well as a high load product for ease of use and lower cost for the grower.

Pierre: During the second half of this year, we will launch the launch is for vision granule.

Pierre: Tablets for rice application.

Pierre: This potential and innovative technology will further concentrated.

Pierre: Recent formulation that disperses upon contact with water is lightweight and can be applied to a handheld dispensers.

Pierre: Sales of these new generation products are expected to reach $200 million to $250 million in 2025.

Pierre: In addition, we.

Pierre: We're expecting three new meters. In 2026, then we will address resistance issues and broaden this picture the spectrum of control.

Pierre Brondeau: It is also worth noting that a large large part of FMC cells have a strong level of protection against generic products as these cells are tied to high value crops where substitution is more difficult and riskier for growers. These include Trinidad. Fruits and Vegetables, which represent about 35% of FMC's total brand. Renexapir sales, and as much as 60% of branded Renexapir sales in North America. A low-cost diamide manufacturing is now fully in place. This will allow us to protect existing applications, expand a solar formulation to new markets and become competitive for all applications in a global CTPR market that we expect will grow exponentially.

Pierre: It is also worth noting that the.

Pierre: A large part of FMC sales of a strong level of protection against generic products.

Pierre: These sales.

Pierre: Tied to high value crops, where substitution is more difficult and risky for growers.

Pierre: These include tree nuts.

Pierre: And vegetables, which represent about 35% of Fmc's total branded.

Pierre: <unk> sales.

Pierre: And as much as 60% of branded <unk> sales in North America.

Pierre: Low cost Diamide manufacturing is now fully in place.

Pierre: This will allow us to protect existing applications expand solar formulation to new market and become competitive for all applications in a global <unk> market that we expect will grow exponentially.

Pierre: Sure.

Pierre Brondeau: The end result of the strategy is that we expect sales over the next year to grow from 2025 to 2027, as volume increases more than offset price erosion, with resulting gross profit dollars remaining flat in 2025 level, at 2025 level.

The end results over a strategy is.

Pierre: Instead, we expect sales over the next step here to grow from 2025 to 2027.

Pierre: As volume increases more than offset price erosion with resulting gross profit dollars remaining flat in 2025 level at 2025 levels.

Pierre Brondeau: A company's three-year plan is not reliant on bottom-line growth over an exception.

Pierre: Our company three year plan is not reliant on bottom line growth.

Pierre: Your next step here.

Pierre Brondeau: Moving on, let me address a progress on establishing a new route to market to Brazil. We are capitalizing on our expanded product portfolio, including recently launched active ingredients. to sell directly to large corn and soybean growers that we could not supply in the past. A new sales and tech service organization is in place and will be fully operational in Q2 in time for Brazil's next growing season in September. Access to this new market is expected to provide a multi-hundred million dollars growth opportunity over time.

Pierre: Moving on.

Pierre: Let me address our progress on establishing a new route.

Pierre: Two market Brazil.

Pierre: We are capitalizing on our expanded product portfolio, including recently launched active ingredients to sell directly to large corn and soybean growers that we could not supply in the past.

Pierre: Our new sales and take service organization is in place.

Pierre: And we will be fully operational in Q2 in time for Brazil next growing season in September.

Pierre: Access to this new market.

Pierre: <unk> is expected to provide a multi $100 million growth opportunity over time.

Pierre Brondeau: To be very clear. Nothing else will change in a business model for FMC Brazil. We will maintain our other current routes to market, including selling to co-ops and retailers, as well as selling directly to large sugar cane and cotton farms, as we have done in the past.

Pierre: To be very clear.

Pierre: Nothing else will change in a business model for FMC, Brazil.

Pierre: We will maintain.

Pierre: Other current routes to market, including sending to cooks and retailers as well as selling directly to largest sugarcane and cotton farms as we have done in the past.

Pierre Brondeau: Finally, regarding a growth portfolio. The three growth platforms are well positioned to deliver their full potential. Our new active ingredients are well on track. We expect strong growth of Fluendapyr and Isoflex in 2025, and have recently received registration for Fluendapyr in Argentina. In addition, we were recently granted a first registration globally for Dodilex, active under the brand name Kenali in Peru. In the case of Cereza While we expect data protection and registration processes to create barriers for generic to enter some markets until 28 or 29, we are already implementing a strategy for these products well in advance of potential generic entry.

Pierre: Finally <unk>.

Pierre: Regarding our growth portfolio.

Pierre: The three growth platforms.

Pierre: <unk> positioned to deliver their full potential.

Pierre: Our new active ingredients.

Pierre: We're on track, we expect strong growth of fluids that Pierre and nasal flex in 2025 and have recently received registration for who end up here in Argentina.

Pierre: In addition, we were recently granted a fair.

Pierre: Registration globally for <unk> active under the brand name Kelly in Peru.

Pierre: In the case of San Jose here.

While we expect data protection and registration processes to create barriers for January to enter.

Pierre: Some markets until 'twenty eight.

Pierre: Or 29, we are already implementing our strategy for these products well in advance of potential generic entry.

Pierre Brondeau: and it relates to Planned Health. With a recent registration of Sofero for pheromone in Brazil, we have received our first orders and anticipate initial sales of this product in Q3. While our three financial targets do not include any main field contribution from pheromones, these products could provide substantial sales and earnings in the future. The progress we made in these four areas. will put us in a much stronger position to deliver growth in the second half of 2025 and into 26 and 27.

Pierre: As it relates to play and help.

With our recent registration of SAPHIRA.

Pierre: Full ceremony in Brazil, we have received it.

Pierre: First orders and anticipate initial sales of this product in Q3.

Pierre: While our three year.

Pierre: Target financial target.

Pierre: Do not include any meaningful contribution from pheromones. These products could provide substantial sales and earnings in the future.

Pierre: The progress we made in this area.

Pierre: Will put us in a much stronger position to deliver growth in the second half of 2025 and.

Pierre: And into 26 and 27.

Pierre Brondeau: Before we turn to our guidance, I'll make a few more detailed comments on our first quarter results. Our Q1 results are detailed on slides 3, 4, and 5. The first quarter unfolded mostly as we expected. Overall weather conditions were favorable, and application rates were strong for FMC products, which advanced channel destocking in most countries. Consistent with the Q1 Games, retailers and growers in the U.S. were slower to place orders in response to lower commodity price, the perception of import supply and uncertainty as a result of recent trade dynamics. Company sales declined 14% versus the prior year.

Pierre: Before we turn to our guidance I'll.

Pierre: I'll make a few more detailed comments on our first quarter results.

Pierre: Our Q1 results are detailed on slide three four and five.

Pierre: The first quarter unfolded, mostly as we expected.

Pierre: Overall weather conditions were favorable and application rates were strong for FMC products, which advanced channel Destocking in most countries.

Pierre: Consistent with our Q1 gallons retailers and growers in the U S were slower to place orders in response to lower commodity price.

Pierre: Perception of ample supply and uncertainty as a result of recent trade dynamics.

Pierre: Company sales declined 14% versus the prior year.

Pierre Brondeau: Pricing was down 9%, with over half of the decline due to adjustments in certain cost-plus contracts for significant diamide partners to account for lower manufacturing costs. A strong U.S. dollar led to an FX headwind of 4%. Volume was down 1% versus a week prior comparison, as prudent selling into the channel in many countries was mostly offset by volume growth in Latin America. of Plant Health Business outperformed the portfolio with sales of 1% versus prior driven by biological. Looking at regional results on slide five, North America performed as expected, with sales decline of 28%, mainly from lower volume as cautious purchases from retailers and growers delayed restocking orders from a distributor customer.

Pierre: Pricing was down 9% with over half of the decline due to adjustments in certain cost plus contracts for significant diamide partners to account for lower manufacturing cost.

Pierre: A strong U S better led to an FX headwind of 4%.

Pierre: Volume was down 1%.

Pierre: Versus a weak prior year comparison as prudent selling into the channel in many countries was mostly offset by volume growth in Latin America.

Pierre: Our plant health business outperform the portfolio with sales up 1% versus prior year driven by biologicals.

Pierre: Looking at regional results on slide five.

Pierre: North America performed as expected with sales decline of 28% mainly from lower volume is crucial processes from retailers and growers delayed restocking orders from our distributor customers.

Pierre Brondeau: Latin America grew 17% excluding FX Edwin. On the surface, it appears counterintuitive that we grew volume in a region where we were actively seeking to lower channel inventories. Higher volume mostly came from increased direct sales to carton growers in Brazil, which do not impact the channel inventory. It's also important to note that with a strong focus on grower consumption, product on the ground, or POG, as we refer to it, far outpace ourselves into the channel. Shifting to Asia, the region performed as expected with a sales decline of 21% excluding currency impacts driven by intentional proven selling and lower price.

Pierre: Latin America grew 17%, excluding FX headwinds.

Pierre: On the surface. It appears counterintuitive that we grew volume in the regions, where we were actively seeking to lower channel inventory.

Pierre: Higher volume, mostly came from increased direct sales to cotton growers in Brazil, which do not impact the channel inventory.

Pierre: It's also important to note that with a strong focus on growing consumption.

Pierre: On the ground or <unk> as we refer to it.

Pierre: I would face.

Pierre: Into the channel.

Pierre: Shifting to Asia.

Pierre: The region performed as expected with the sales decline of 21%, excluding currency impact driven by intentional prudent ceiling and lower price.

Pierre Brondeau: Finally, in EMEA, we reported 7% lower sales, excluding currency impact due to lower volumes, largely from the expected loss of registration from Trifluciferone herbicides.

Pierre: Finally in EMEA.

Pierre: We reported.

Pierre: 7% lower sales, excluding currency impact due to lower volumes LNG from the expected loss of resist these registration from 50, so far one herbicide.

Andrew Sandifer: Turning to slide six. First quarter EBITDA declined 25% due to lower price and affected wind and reduced volume. because we're a tail, a tailwind has very bleak. militia in COGS more than offset increased investment in SG&A and R&D. The increased spending in those areas helped establish the additional sales force in Brazil and further support for our own new products.

Pierre: Turning to slide six.

Pierre: First quarter, EBITDA declined, 25% due to lower price and FX headwinds and reduced volume.

Pierre: Costs were a tailwind is favorably.

Pierre: Many key in Cogs more than offset increased investment in SG&A in orange.

Pierre: The increased spending in those areas helped establish the additional sales force in Brazil.

Pierre: And further support.

Pierre: For one new product.

Andrew Sandifer: Turning now to slide seven. We provide our expectations for the second quarter. We are getting a revenue decline of 2% at the midpoint. Lower sounds, mid, single, and improved, right?

Pierre: Turning now to slide seven.

Pierre: We provide our expectations for the second quarter.

Pierre: We are gaining a revenue decline of 2% at the midpoint.

Pierre: Lower sales of <unk>.

Pierre: Yes.

Pierre: Okay.

Pierre: Right.

Pierre: Oh single digit.

Pierre: O'neill.

Andrew Sandifer: Thank you for listening to this special podcast. As we carry over a strategy from the first quarter of carefully managing sales into the channel in many countries, we want to build up a solid growth in the second half of the year. If you guys are newer, by 6% of the points. with lower price and an FX headwind partially offset by favorable cost and higher volume. Adjusted earnings per share is expected to be lower by 5% at the meeting.

Pierre: Thank you.

Pierre: Sure.

Pierre: Our strategy from the first quarter of carefully managing sales into the channel in many countries.

Pierre: Yes.

Pierre: So big growth in civil.

Pierre: Okay.

Pierre: EBITDA was lower by 6%.

Pierre: Point.

Pierre: With lower price and FX headwinds, partially offset by favorable cost and higher volume.

Pierre: Adjusted earnings per share is expected to be lower by 5%.

Andrew Sandifer: on slide eight. We provide our updated full-year guidance, which from a full-year sales perspective to to prep later. Dr. has higher volume, mostly in the second half, offset unfavorable price and Adjusted EBDAP is expected to grow 1% at the midpoint at favorable costs and higher volume. are mostly offset by lower price and an asset win. Adjusted earning per share is expected to be flat. to prior year at the meeting.

Pierre: On slide eight.

Pierre: We provide our updated full year guidance range.

Pierre: Sales.

Pierre: Thank you.

Pierre: Sure.

Pierre: Okay.

Pierre: As higher volume, mostly in the second half.

Pierre: Offset unfavorable pricing.

Pierre: Adjusted EBITDA is expected to grow 1% at the midpoint as favorable costs and higher volume.

Pierre: Mostly offset by lower price and an FX headwind.

Pierre: Adjusted earnings per share is expected to be flat.

Pierre: To prior year at the midpoint.

Andrew Sandifer: Over the last few weeks, there has been a lot of focus on recently announced tariffs. and the potential impact towards Slide nine. gives a brief overview. of the tariffs in place or announced as of yesterday. These include the Section 301 tariffs implemented during the first Trump administration and the new tariffs announced under the International Emergency Economic Powers Act. Key to Determining the Magnitude of the Impact of the Recently Announced Tariffs is whether the products we import into the U.S. are eligible for exemption or duty drawback under the specific tariff in question. exemptions allow companies like FMC to import.

Pierre: Over the last few weeks there has been a lot of focus on recently announced tariffs and the potential impact to our business.

Pierre: Slide nine.

Pierre: As a brief overview.

Pierre: Of the tariffs in place or announce as of yesterday.

Pierre: These include the section three one tariffs.

Pierre: Implemented during the first Trump administration, and the new tariffs announced under the international Emergency Economic Power Act.

Key to determining the magnitude of the impact of the recently announced tariffs is whether the product we import into the U S are eligible for exemption or duty drawback under the specific tariff in question.

Pierre: Exemptions.

Pierre: So companies like FMC to import.

Andrew Sandifer: without being tariffed, specified materials that are not readily available from alternate sources. Duty drawback is a refund of import duties that were paid on materials that are later exported from the U.S. either in the same form or as part of a finished product. Exemptions and duty drawbacks. are product-specific and not company-specific.

Pierre: Without thing Terry specified material that are not really available from alternate sources.

Pierre: Duty drawback is a refund of import duties that were paid on materials that are later exported from the U S. Either in the same form.

Pierre: <unk> four as part of our finished product.

Pierre: Exemptions and duty drawbacks are product specific and not company specific.

Andrew Sandifer: Slide 10 lists the tariffs that are currently in place for FMC materials and whether there are opportunities for exemptions or duty drawbacks. It is important to avoid applying a blanket percentage to a total imported volume as the real impact is much lower. For example, most materials fall under reciprocal tariffs are either exempt or eligible for EGROVA. After a detailed review of the materials we import into the U.S. and applying the rules currently proposed or in place. We estimate an incremental cost headwind of $15 million to $20 million. This was a rigorous bottom-up analysis. So we are confident in the estimated impact.

Pierre: Slide 10 lists the tariffs that are currently in place for FMC materials, and whether they are opportunities for exemptions or duty drawback.

Pierre: It is important to avoid a plane a blanket percentage to our total imported volume.

Pierre: The real impact is much lower.

Pierre: For example, most materials fall under a typical tariffs.

Pierre: Exempt or eligible for pretty robust.

Pierre: After a detailed review of the materials, we import into the U S.

Pierre: And applying the rules currently proposed or in place.

Pierre: We estimate an incremental cost headwind.

Pierre: $15 million to $20 million.

Pierre: This was a rigorous bottoms up analyzers. So we are confident in the estimated impact.

Andrew Sandifer: As we did these calculations, applying the rules as we understand them today, and which may evolve as trade negotiations between the United States and other countries progress. We will continue to monitor new development and re-evaluate the potential impact on our business. as we understand them today.

Pierre: As we as we did these calculations applying the rules as we understand them to name and which may evolve as trade negotiations between the United States and other countries progress.

Pierre: We will continue to monitor new developments and reevaluate the potential impact on their business.

Pierre: As we understand them today we.

Andrew Sandifer: We do not expect tariffs to be a significant obstacle to reaching a full 2025 goal. We have flexibility in sourcing depending on how the situation continues to unfold. Further, we have improved cost severability and additional volume opportunities that will offset the impact we currently anticipate for 2025. Nevertheless, As we become more certain on the longer term tariff impact, we will adjust our pricing to cover those costs.

Pierre: We do not expect tariffs to be a significant obstacle to reaching our full 2025 goals.

Pierre: We have flexibility in sourcing depending on how the situation continues to unfold.

Pierre: Other.

Pierre: We have improved cost favorability and additional volume opportunities that will offset the impact we currently anticipate 2025.

Nevertheless.

Pierre: As we become more certain on the longer term tariff impact, we will adjust our pricing to cover those costs.

Andrew Sandifer: Our guidance implies solid growth in the second half of the year. We expect revenue growth of 7% given by higher volume from Fluidapir, Isoflex, and Biogicorp. as well as by the newly established additional route to market in Brazil. With these actions we have taken in the first half of the year, we expect to enter the next growing season in Latin America without the de-stocking headwinds we faced over the last two However, we do expect headwinds from the price and FX. As you can see in slide 11, we expect second half EBITDA growth of 11% as lower cost and higher volume, primarily from new products and the new route to market in Brazil, are partially offset by lower price and affected Lower costs are expected to be driven by COGS favorability, including lower Raw Materials and Improved Fixed Cost Absorption.

Pierre: Our guidance implies solid growth in the second half of the year.

Pierre: We expect revenue growth of 7% driven by higher volume from fluid appear ISO flex and biological.

Pierre: As well as both newly established additional route to market in Brazil.

Pierre: With these actions we have taken in the first half of the year, we expect to enter the next growing season in Latin America without the Destocking headwinds, we faced over the last two seasons.

However, we do expect headwinds from the price and FX.

Pierre: As you can see in slide 11.

Pierre: We expect second half EBITDA growth of 11%.

Pierre: Lower cost and higher volume, primarily from new products and a new route to market in Brazil are partially offset by lower price and FX headwinds.

Pierre: Lower costs are expected to be driven by Cogs favorability, including lower.

Pierre: Raw materials and improved fixed cost absorption.

Andrew Sandifer: We are highly confident in a path to second-half growth, as it is driven by cost variability, a large portion of which is already locked in, as well as sales of new products and the additional route to market. neither of which have channel inventory concerns. Additionally, we will benefit from a product selling strategy and our focus on POG in the future.

Pierre: We are highly confident in our path to second half growth.

Pierre: Is driven by cost favorability.

Pierre: Large portion of which is already locked in as well as sales of new products and the additional route to market.

Pierre: Neither of which of channel inventory concerns.

Pierre: Additionally.

Pierre: We will benefit from the program selling strategy.

Pierre: Lucas on PPG in the success.

Andrew Sandifer: I will now turn it over to Andrew to cover details on cash flow and other items. Thanks, Pierre. I'll start this morning with a review of some key income statement items. FX was a 4% headwind to revenue growth in the first quarter, largely driven by the Brazilian Reai and various European currencies, most significantly the Euro. For full year 2025, we continue to expect a low to mid single digit FX headwinter revenue, again, driven primarily by the Brazilian REI and various European currencies.

Speaker Change: I will now turn the turn it to <unk>.

Andrew: Over to Andrew to cover details on cash flow and other items.

Andrew: Thanks Pierre.

Andrew: I'll start this morning with a review of some key income statement items.

Andrew: FX was a 4% headwind to revenue growth in the first quarter, largely driven by the Brazilian reais and various European currencies, most significantly the euro.

Andrew: For full year 2025, we continue to expect a low to mid single digit FX headwind to revenue again, driven primarily by the Brazilian reais and various European currencies.

Andrew Sandifer: Interest expense for the first quarter was $50.1 million, down over $11 million compared to the prior year period, driven by lower debt balance. For full year 2025, we continue to expect interest expense to be in the range of $210 to $230 million, down roughly $15 million year-on-year at the midpoint, reflecting the benefit of debt reduction in 2024 and modestly lower interest rates in 2025.

Andrew: Interest expense for the first quarter was $51 million down over $11 million compared to the prior year period, driven by lower debt balances.

Andrew: For full year 2025, we continue to expect interest expense to be in the range of $210 million to $230 million down roughly $15 million year on year at the midpoint, reflecting the benefit of debt reduction in 2024 and modestly lower interest rates in 2025.

Andrew Sandifer: The effective tax rate on adjusted earnings was 14% in the first quarter, in line with our continued expectation of a full year effective tax rate of 13 to 15%.

Andrew: The effective tax rate on adjusted earnings was 14% in the first quarter in line with our continued expectation of a full year effective tax rate of 13% to 15%.

Andrew Sandifer: Moving next to the balance sheet and lever. Gross debt at March 31st was approximately $4 billion, up roughly $640 million from the prior quarter due to a normal seasonal working capital. Cash on hand decreased $42 million to $315 million. resulting in net debt of approximately $3.7 billion. Gross debt to trailing 12-month EBITDA was 4.6 times at quarter end, while net debt to EBITDA was 4.3 times. Relative to our leverage covenant, which includes adjustments to both the numerator and denominator, leverage was 4.77 times as compared to a covenant limit of 5.25. As a reminder, our covenant leverage limit will remain at 5.25 times through September 30th, then step down to 5.0 times at year end.

Andrew: Moving next to the balance sheet and leverage.

Andrew: Gross debt at March 31 was approximately $4 billion.

Andrew: Up roughly $640 million from the prior quarter due to our normal seasonal working capital build.

Andrew: Cash on hand decreased $42 million to $315 million, resulting in net debt of approximately $3 $7 billion.

Andrew: Gross debt to trailing 12 month EBITDA was four six times at quarter end, while net debt to EBITDA was four three times.

Andrew: Relative to our leverage covenant, which includes adjustments to both the numerator and denominator leverage was 477 times as compared to a covenant limit of 525 times.

Andrew: As a reminder, our covenant leverage limit will remain at five five times through September 30th then step down to five point out times at year end.

Andrew Sandifer: We expect Covenant leverage to return to approximately 3.7 times by year-end, essentially flat to the prior year.

Andrew: We expect covenant leverage to return to approximately three seven times by year end essentially flat to the prior year.

Andrew Sandifer: Moving on to free cash flow in slide 11. Free cash flow in the first quarter was negative $596 million. $408 million lower than the prior year period. Cash from operations was down significantly, primarily due to lower inventory reduction as compared to the prior year, while capital additions were somewhat higher, as in The negative cash from operations in the first quarter reflects a return to a more normal cadence of working capital, with a large build in the first part of the year, followed by a release in the second half. We continue to expect free cash flow of $200 million to $400 million for 2025, a decrease of $313 million at the midpoint.

Andrew: Moving on to free cash flow on slide 11.

Andrew: Free cash flow in the first quarter was negative $596 million $408 million lower than the prior year period.

Andrew: Cash from operations was down significantly primarily due to lower inventory reduction as compared to the prior year, while capital additions were somewhat higher as anticipated.

Andrew: Negative cash from operations in the first quarter reflects a return to a more normal cadence of working capital with a large build in the first part of the year followed by a release in the second half.

Andrew: We continue to expect free cash flow of $200 million to $400 million for 2025, a decrease of $313 million at the midpoint.

Andrew Sandifer: Cash from Operations is the key driver of the decrease with normalization of working capital after the pronounced correction in 2024. Capital additions are also expected to be up somewhat, with a continued focus on only the most essential projects and capacity expansion for new projects. Cash Use by Discontinued Operations is also up. but in line with our multi-year app.

Andrew: Cash from operations is the key driver of the decrease with normalization of working capital after the pronounced correction in 2024.

Andrew: Capital additions are also expected to be up somewhat with a continued focus on only the most essential projects and capacity expansion for new products.

Andrew: Cash used by discontinued operations is also up slightly but in line with our multi year average.

Pierre Brondeau: And with that, I'll hand the call back to Pierre. Thank you, Andrew. The first quarter unfolded as expected, with all objectives reached. The first step of a company reset went as well as possible. We will need to do the same now in Q2. While the midpoint over Q2 gains. doesn't doesn't not show overall growth. The financial targets are stronger than the first quarter. And we expect to see some volume improvement the quarter However, during the second quarter, we will continue to carefully manage sales into the channel, particularly in countries where FMC channel inventory remains elevated.

Pierre: And with that I'll hand, the call back to Pierre.

Pierre: Thank you Andrew.

Pierre: The first quarter.

Pierre: Solid as expected.

Pierre: With all of <unk> reached.

Pierre: The first step of a company reset went as well as possible.

Pierre: We will need to do the same now in Q2.

Pierre: While the mid point over Q2 games.

Pierre: It doesn't does not show overall growth.

Pierre: The financial targets are stronger than the first quarter and we expect to see some volume improvement in the quarter.

Pierre: However.

Pierre: During the second quarter, we will continue to carefully manage sales into the channel, particularly in countries, where FMC channel inventory remains elevated.

Pierre Brondeau: By the end of the first half, we will have completed the most critical step of a reset, which will allow us to enter the second half of the year in a strong position. We expect to see significant momentum building during Q3 at the financial, operational and strategic level with the new FMC organization fully up and running. We expect to reach a financial objective this year with growth in the second half built on a strong foundation.

Pierre: By the end of the first half we will have completed the most critical step over resets, which will allow us to enter the second half of the year in a strong position.

Pierre: We expect to see significant momentum building during Q3.

Pierre: The financial operational and strategic level with the new FMC organization fully up and running.

Pierre: We expect to reach our financial objectives. This year with growth in the second half built on a strong foundation.

Pierre Brondeau: We plan to be in a position at the Q3 earnings score to give an outlook for 2026 as a strategic and operational reset should be well advanced and provide us with greater clarity on next year's potential.

Pierre: We plan to be in a position of <unk>.

Pierre: Q3 earnings call to give an outlook for 2026 as the strategic and operational reset should be well advanced and provide us with greater clarity on next year's potential.

Unknown Executive: With that, we're now ready to take your questions. We will now begin the question and answer session to be placed in a queue, please press the star key, then one on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the key.

Pierre: With that now ready to take your questions.

Pierre: We will now begin the question and answer session because it placed in the queue. Please press the star Key then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys.

Unknown Executive: Please limit yourself to one question. If you have additional questions, you can jump back in the queue. To withdraw from the question queue, please press star then two.

Pierre: Please limit yourself to one question. If you have additional questions you can jump back into queue.

Pierre: Withdrawal from the question queue. Please.

Pierre: Please press Star then two at this time, we will pause momentarily.

Unknown Executive: At this time, we'll pause momentarily to assemble our.

Speaker Change: Our roster.

Aleksey Yefremov: The first question comes from Aleksey. Yefremov with the company C-Corp.

Alexi: The first question comes from Alexi.

Alexi: Your framework with a company C Corp, Alaska. Your line is now open.

Pierre Brondeau: Aleski, your line is now open. Morning. Thank you, Pierre. Could you describe the price trends in the crop production market outside of dynamite? Has the pricing bottomed? What would you expect from price going forward? Yeah, thanks, Aleksey. In terms of pricing. Let me make two comments. One specific to FMC pricing in Q1 and the way we see pricing going through the year. When we made our forecast pricing, we were forecasting a mid to high single digit. We end up in the high single digits. What we had in the forecast was the pricing to the MIT partners we knew would be would be lower.

Alexi: Good morning, and thank you gear side.

Alexi: Syed described the price trends in the crop protection market Ouch.

Alexi: Outside of <unk>.

Alexi: <unk> has the pricing bottomed what would you expect from price going forward this year.

Alex: Yes, thanks, Alex in terms of pricing.

Alex: Let me make two comments one specific too.

Alex: To FMC pricing in Q1, and the way, we see pricing going through the year.

Alex: Uh huh.

Alex: When we made our own.

Alex: Our forecast pricing, we were forecasting a mid to high single digit.

Alex: We ended up in the high single digits.

Alex: What we had in the forecast was the pricing today amide partners, we knew would be a would be lower and we also knew there would be a tough comparison to Q1 2024, where price we are still very high.

Pierre Brondeau: And we also knew there would be a tough comparison to Q1 2024 where price were still very high. What was not in the forecast for us was Strongest Sales in Brazil, which we know is always a more competitive market. If I think about pricing for the year, pricing comparison are going to ease as the year ago, and especially in the second half. For a very simple reason, if you remember, and especially true for FMC, we did the vast majority of price correction in the second half of Q2 and through Q3 and Q4.

Alex: What was not in our forecast for us was.

Alex: Strongest sales in Brazil, which we knew is always a more competitive market.

Alex: If I think about pricing for the year pricing comparisons are going to ease as the year ago and special in the second half.

Alex: For very simple reason is if you remember, especially true for FMC, we did the vast majority.

Alex: Of a price correction in the second half of Q2 and through Q3 and Q4. So if you think about Q1. This year. Besides the country mixed. It is known that we took very specific pricing actions sequentially. It is just a year on year comparison, which is.

Pierre Brondeau: So if you think about Q1 this year, beside the country mixed, it is not that we took very specific pricing actions sequentially, it is just a year-on-year comparison, which is unfavorable, where we see more stability going into the rest of the year, especially in H2, with much better or much easier comp versus 2024.

Alex: Unfavorable where we see more stability.

Alex: Going into the rest of the year, especially in <unk> with much better a much easier comp versus 2024.

Joel Jackson: The next question comes from Joel Jackson with the company BMO Capital.

Alex: The next question comes from Joel Jackson with accompanying BMO capital. Your line is now open.

Joel Jackson: No, your line is not open. Hi, good morning. So you gave a bit of guidance about, you know, why you expect to have really strong growth in the second half of the year to make your numbers this year.

Alex: Hi, Good morning, I am Kim you gave a bit of guidance about why you expect to have really strong growth in the second half of the year to make your numbers. This year. It is historically an extremely back end loaded second half can you maybe break down a bit more about why you have confidence in your cost in the second half of the year I know you have lagged when you see things coming in and Youre.

Alex: Golar Rep Union strategy in Brazil, and other initiatives have just maybe give some more confidence to the street, while you can get this.

Pierre Brondeau: Transcripts provided by Transcription Outsourcing, LLC. Certainly, I think I would qualify the level of confidence in H2 as very high. Let me talk first about what you just said, revenue. revenues, the growth is, is mostly coming from new products. and new products demand we already know is very high, if anything. If we don't get to the number we're forecasting, it's because we're going to be higher. There is a bias toward a higher end than what we have. Very, very solid demand already for Q2 for a new technology for NAPI and ISOFLEX. Second of all, we do have a new route to market, which did not exist before.

Second half done.

Alex: Certainly I think.

Alex: I would qualify the level of confidence in anh too.

Alex: Very high.

Alex: Let me talk first about what you just say revenues.

Alex: Revenues the growth is is mostly coming from new products.

Alex: And new product demand, we already know is very high if anything.

Alex: Ah.

If we if we if we don't get to the number we're forecasting it's because we are going to be higher there is a bias towards a higher end at what we have very very solid demand already for Q2 for a new technology fluent appear in Asia Flex <unk>.

Alex: <unk> level we.

Alex: We do have a new route to market, which did not exist before it's a brand new market for us. The sales organization is in place the contracts are being taken.

Pierre Brondeau: It's a brand new market for us. The sales organization is in place. The contacts are being taken. Everything, all lights are green. So this new opportunity seems to be highly, highly feasible. So on the revenue front, because we are not Forecasting growth due to market growth, but more to specific FMC actions. We have quite a quite a high level of confidence. On the price side, why do we believe we will be in a less challenging situation? Two critical reasons. One is we will be operating following the actions we have taken in Q1, which were very, very strong around channel inventory and the one we're going to keep on doing in Q2.

Everything all lights are green so.

Alex: This new opportunity.

Alex: <unk> to be highly highly feasible. So on the revenue front because we are not.

Alex: Forecasting growth due to market growth, but more to specific FMC actions.

Alex: We have quite a quite a high level of confidence.

Alex: On the price slide side, why do we believe we will be in a less challenging situation to critical reason one is.

Alex: We will be operating following the actions we have taken in Q1.

Alex: Which were very very strong.

Alex: Around around channel inventory and the one we're going to keep on doing in Q2, we will be in a very very healthy.

Pierre Brondeau: We will be in a very, very healthy channel situation starting in Q3, which is positive for pricing. Second of all, we will be in a very low comp versus 2024 as by H2, we had a lot of the price correction done. And on the cost front, we've talked about we've talked about Cost restructuring we have put in place, but let me remind you of something which is which is already booked. It's already, it's mathematical. We have $50 million. of absence of negative impact. we had in 2024 coming from 2023 volume variance. This is an automatic $50 million growth at EBITDA level in H2 2025.

Alex: Channel situation, starting in Q3, which is positive for pricing.

Alex: Although we will be in a very low comp.

Alex: Versus 2024.

Alex: By <unk>, we have a lot of the price correction done.

And on the cost front, we've talked about.

Alex: We've talked about.

Alex: Our cost restructuring, we have put in place but.

Alex: Let me remind you of something which is which is already booked so really it's mathematical.

Alex: $50 million.

Alex: Of absence of negative impact.

Alex: In 2024 coming from 2023 volume variance. This is an automatic $15 million five zero.

Alex: Growth.

Alex: At EBITDA level in <unk> 2025, So you bring all of these together and Ah.

Pierre Brondeau: So you bring all of these together, and the probability of missing in my mind is, is quite low, because most of those are in our hands.

Alex: The probability of missing in my mind is.

Alex: Is quite low because most of those.

Alex: In our hands I actually I want to give you a.

Pierre Brondeau: Actually, I want to give you a An example of why we feel so confident about our position in the channel, getting into Brazil's season in the second half. In Brazil, it is counterintuitive, as I said, how fast we grew in Q1, but let me explain to you a bit how that growth took place. We sold about $110 million of products. Part of those sales went directly to growers, so it didn't go into the channels. So we had less than $100 million of product sold into the channels. We removed, we moved from the channel into the ground about 350 million dollars of product.

Alex: An example of why we feel so confident about our position in the channel getting into Brazil season.

Alex: In the second half.

Alex: In Brazil. It is counterintuitive as I said, how fast we grew in Q1, but let me explain to you a bit how that growth took place.

Alex: We sold about $110 million of.

Alex: Product.

Alex: Part of those sales went directly to growers. So didn't go into the Sheryl channel. So we had less than $100 million of product sold into the channel.

Alex: We removed we moved from the channel.

Alex: To the ground about $350 million of product, which mean, we removed from the channel of FMC product in Q1 over $250 million of product I mean, that's.

Pierre Brondeau: which means we removed from the channel of FMC products in Q1 over $250 million of products. I mean, that's the kind of actions we have been taking in Q1 and still are taking in Q2, which are going to put us in a very, very clean position when we start fixing.

Alex: That's what kind of actions we have been taken in Q1 and still are taking in Q2, we shall.

Alex: Put us in a very very clean position when we start page two.

Edlain Rodriguez: Next question comes from Edlain. Rodriguez with the company Mizuho.

Speaker Change: Next question comes from adding land.

Rodriguez: Rodriguez with accompanying Mizuho.

Edlain Rodriguez: Edlain, your line is now open. Okay, thank you. And good morning, everyone. I mean, Pierre, you've talked about the tariff impact of 15 to 20 million headwind. So what exactly are you doing to offset that headwind? Because you said you will be able to do that. And the cost savings actions you've taken to do to offset some of that, would you have taken them Regardless of the tariff impact, you will see this year. So, it is not actions we are taking because of tariffs. You know, we always give a range in terms of how our cost-saving plans are going to be unfolding, and we're going to end up on the higher end of the cost savings.

Speaker Change: Your line is now open.

Rodriguez: Okay. Thank you Ari and good morning, everyone.

Rodriguez: Clearly you've talked about the tariff impact of $15 million to $20 million headwind.

Rodriguez: What exactly are you doing to offset that headwind could you said you wouldn't be able to do that and the cost savings actions you've taken.

Rodriguez: To offset some of that would you uptick in them.

Rodriguez: Regardless of the tariff impact.

Rodriguez: You will see this year.

Rodriguez: Yeah.

Rodriguez: It is nuts.

The actions, we are taking because of tariffs.

Rodriguez: We always give a range in terms of how our cost saving claims aren't going to the unfolding and and we were going to end up on the higher end of the.

Rodriguez: Of the of the <unk>.

Pierre Brondeau: So, those cost savings are coming at the top end of what we're expecting. They are not anything special or additional we are doing to offset the current tariff, but we were on the favorable side. Volume, same thing. We believe that we've shifted a bit from previous year in the way we look at the market. I think in previous years, there was a very, very high focus of the organization. to selling into the channel and to retailer. We have moved a lot of energy to get a pool from the growers from the channel. So by creating that pool and promoting a product to the growers then buy from the retailers, we are creating more and more space into the channel for a product.

Rodriguez: Cost savings so.

Rodriguez: Those cost savings are coming at the top hand of what we're expecting there not anything special or additional we are doing to offset the current tariffs that we were on the on the favorable side volume same thing we believe that.

Rodriguez: We've shifted a bit from previous year in the way we look at the market I think in previous years. There was a very very high focus of the organization.

Rodriguez: Two two selling into the channel and to retailer.

Rodriguez: We have moved a lot of energy to get approval from the growers from the channel so by creating that pool and promoting our products to the growers within buy into the REIT from the retailers.

Rodriguez: We are creating more and more space into the channel for our product.

Pierre Brondeau: That strategy might not be as strong in the quarters to come when most of the gestalking is done, but it's still something we're gonna keep on doing the way we're gonna organize our sales organization. And this is giving space for new products. So that's why there is some positive on the growth side on the second half, including new technologies for which we have more and more demand. So nothing specific we are doing to address tariffs. They would have been there even without the tariff, but it will be offsetting the tariff.

Rodriguez: That strategy.

Rodriguez: Not be as strong in the in the quarters to come and most of the Destocking is done, but it's still something we're going to keep on doing the way, we're all going to organize our sales organization and this is getting space for new products. So that's why there is a.

Rodriguez: Some positive on the growth side on the second half, including new technologies for which we have more and more demand. So nothing specific we are doing to address Terry they would have been there even without the.

Rodriguez: Even with Atwood.

Rodriguez: The tariffs, but it will be offsetting the.

Rodriguez: The tariffs.

Lawrence Alexander: The next question comes from Lawrence Alexander with the company Jeffreys. Lawrence, your line is now open. Hi, this is Dan Rizwan from Lawrence. Thanks for taking my question. I was just wondering, you mentioned, you know, reducing channel inventories, does that involve giving significant rebates or discounting to customers? And do you have to kind of write off any of your own inventory? Sorry, could you repeat the question, please? You broke it a little bit. Sure. Yeah, that's okay. You talked about reducing channel inventories.

Speaker Change: The next question comes from Laurence Alexander with the company Jefferies. Laurence Your line is now open.

Rodriguez: Hi, This is Dan Rizzo on for Laurence. Thanks for taking my question I was just wondering you mentioned reducing channel inventories does that involve.

Rodriguez: Significant rebates or discounts to customers and do you have to kind of write off any of your own inventory.

Rodriguez: Reducing debt.

Rodriguez: Sorry.

Rodriguez: Could you repeat the question please.

Rodriguez: Broke a little bit short.

Speaker Change: Yes, that's okay.

Speaker Change: <unk> talked about reducing channel inventories I was wondering if that includes having to give significant rebates or discounts to customers or for future orders.

Pierre Brondeau: I was wondering if that includes having to give significant rebates or discounts to customers or for future orders, or kind of how you kind of really, what steps you take to reduce the inventories in the channel? Yes, so that that that's good you're asking me to to repeat that because it's it's very very important what what we did is we shift almost entirely the activity of our sales organization, agronomist, tech service organization to work with the end users of a product, the growers. By doing this, you promote your product, explain your product. demonstrate the capability of your, of your portfolio, and then create a pool from the pool from the the grower from the retailers.

Speaker Change: How you kind of really.

Speaker Change: What steps you take to reduce the inventories in the channel.

Speaker Change: Yes, so that's.

Speaker Change: That is good you're asking me to repeat that because it's very very important but what we did is we shift.

Speaker Change: Most entirely the activity of our sales organization agronomist take service organization to work with the end users of our products. The growers by doing this you promotional product expand new products.

Speaker Change: Demonstrate the capability of your.

Speaker Change: Of your portfolio and then create a pool from.

Speaker Change: The pool from the.

The growers.

Speaker Change: From the retailer so it's growers, who are asking for our product from the retailers and we do not have to act on price or give rebates because we are not intervening in this process. All we create is the growers to to pull the product from retailers, but the sale of the financial.

Pierre Brondeau: So it's growers who are asking for a product from the retailers, we do not have to act on price or give rebate. Because we are not intervening in this process, all we create is the growers to, to pull the product from retailers, but the sale, the financial transaction is between the grower and the retailer. So it's promotion of a product at the at the level of the end user, which create more product on the ground.

Speaker Change: <unk> is between the <unk> and the retailer so it's promotion of our products at the at the level of the end user which create more product on the ground and then what we did is we replenished those products extremely carefully.

Pierre Brondeau: And then what we did is we replenish those products extremely carefully to avoid to rebuild inventory.

Speaker Change: Deployed to rebuild inventories.

Chris Parkinson: This question comes from Chris Parkinson with the company Wolf Research. Chris, your line is now open. Great. Thank you so much for the question.

Speaker Change: Next question comes from Chris Parkinson with a comfortable Wolfe Research. Your line is now open.

Chris Parkinson: Great. Thank you so much for question.

Pierre Brondeau: Can you talk a little bit more about the DIMOD strategy and any updates you may have there? And I'd specifically like to focus on your confidence on the growth run rate coming off patent, especially some of the charts that you shared with us last quarter, as well as your ability to further reduce your cost structure and your openness to manufacturing with any of their partners. Thank you so much. All right.

Chris Parkinson: Can you talk a little bit more about the <unk> strategy and any update you may have there and I'd specifically like to focus on your confidence on the growth run rates.

Chris Parkinson: Coming off patent, especially some of the charts that you shared with us last quarter.

Chris Parkinson: As well as your ability to further reduce your cost structure.

Chris Parkinson: And your openness Manny.

Chris Parkinson: Manufacturing with any other partners. Thank you so much.

Chris Parkinson: Alright.

Pierre Brondeau: Let me start with the back end of your question in terms of pricing. Our pricing right now, lower pricing, significantly lower pricing versus last year is fully in place. And we are continuing to lower cost. I do believe that by the end of this year, if not before, we will be on par with the high end generic manufacturers. At this point, it allows us to develop a strategy to protect and grow our solar molecule, because this market is going to be growing exponentially with Ronexapyr taking over other insecticides. So that piece to take the pride manufacturing cost down is in place and improving.

Chris Parkinson: Let me start with the backend of your question in terms of pricing.

Chris Parkinson: Our pricing right now lower pricing significantly lower pricing.

Chris Parkinson: Versus last year is fully in place.

Chris Parkinson: And we are continuing to lower our cost.

Chris Parkinson: I do believe that by the end of this year, if not before we will be on par with the high engineered manufacturers.

Chris Parkinson: At this point it allows us to develop a strategy to protect protect and grow.

Chris Parkinson: Our solar molecule.

Chris Parkinson: Because this market is going to be growing exponentially with rone, except here taking over other insecticides.

Chris Parkinson: So that piece to take the prize manufacturing costs down.

Chris Parkinson: Is in place and improving and is going to put us at parity with generic manufacturers.

Pierre Brondeau: And it's going to put us at parity with generic manufacturers. The solo strategy in terms of growth will benefit from this cost and we will lower our price and compensate that by much higher volume. At the same time, the new products we are putting in place either for ease of use or a broader spectrum or resistance, which is becoming a bigger and bigger issue, are being developed and some are already on the market. To give you a sense for how fast our high-end growers are willing to switch the three products I talked to you about, out of the $600 million of branded Renexapyr we have this year, we are selling this year, we expect $200 to $250 million be the new Renexapyr mixture, the high load and the tablets, but the tablets will be a very small number because you'll be introduced toward the end of the year.

Chris Parkinson: The solo strategy in terms of growth will benefit from discussed and we will lower our price and compensate that by much higher volume at the same time, the new product we are putting in place other for ease of use or a broader spectrum or resistance, which is becoming a bigger.

Chris Parkinson: And bigger issue.

Chris Parkinson: Are being developed and some some are already on the market.

Chris Parkinson: To give you a sense for how fast are high and growers are willing to switch the cars.

Chris Parkinson: The three product I talked to you about out of the $600 million of branded.

Chris Parkinson: The next step here.

Chris Parkinson: We have this year, we're selling this year, we expect $200 million to $250 million.

Chris Parkinson: You relax at DM nature.

Chris Parkinson: The high load and the tablets, but the tablet will be a very small number because of the introduced towards the end of the year. So that's the speed at which at which you can.

Pierre Brondeau: So that's the speed at which you can replace your older technology by your new technology. At this stage, there is nothing in front of us which is telling me that the Renexapyr strategy, as we explained it, to grow volume, to compensate for lower price, with a lower manufacturing cost, and introduction of new products, I forgot to say three new products are going to be registered next year, will not be working.

Chris Parkinson: Replace your older technology by your new technology at this stage.

Chris Parkinson: There is nothing in front of US, which is telling me that the <unk> strategy as we explained it to grow volume to compensate for lower price.

Chris Parkinson: With a lower manufacturing cost.

And introduction of new products.

Chris Parkinson: Forgot to say three new products haven't been registered next year.

Chris Parkinson: We will not be working.

Pierre Brondeau: Important points I want to remind everybody the three year plan does not expect growth of earnings coming from Renaxapir. We're just protecting the current bottom line from Renaxapir in the next three years by the strategy I just described.

Chris Parkinson: Important points I want to remark mind, everybody the three year plans does nuts.

Chris Parkinson: <unk> growth.

Chris Parkinson: Of earnings coming from in <unk>, just protecting the current bottom line from an expert here in the next three years by the strategy I. Just described when they'll do anything you want to add on the <unk> strategy itself only the.

Ronaldo Pereira: Ronaldo, anything you want to add on the Renaxapir strategy itself? Only the philosophy of adoption of Renaxapir that we're seeing the new formulations as you highlighted and increase in some markets as we evolve on our strategy, it becomes very clear that there's a lot of elasticity there. As we move prices, we're seeing that volume of adoption, especially by customers that did not use Clarenza or Native Power before.

Chris Parkinson: Philosophy of adoption of <unk>.

Chris Parkinson: We're seeing the new formulations as you highlighted.

Chris Parkinson: And Greece in some markets.

Chris Parkinson: As we evolve on our strategy it becomes very clear that there is a lot of elasticity there as we move prices we're seeing.

Chris Parkinson: That volume adoption, especially by customers that did not use current run the repower before.

Chris Parkinson: Yeah.

Benjamin Theurer: The next question comes from Benjamin M. Theurer with the company Barclays.

Benjamin: The next question comes from Benjamin.

Speaker Change: With the company Barclays Benjamin Your line is now open.

Benjamin Theurer: Benjamin, your line is not open. Yeah, good morning and thank you very much for taking my question. Just wanted to follow up a little bit on some of the outlook pieces in terms of your strategy as it relates to the tariffs. And by the way, thank you very much for all the clarification you've already given and some of the estimates here. Can you help us understand a little bit more as to the alternative, like just thinking of this as being to be a longer-lasting issue, headwind, however you want to call it. How could we think about alternative sourcing for some of the raw materials that are significantly impacted?

Speaker Change: Yeah. Good morning. Thanks. Thank you very much for taking my question just wanted to follow up a little bit on some of the house.

Speaker Change: Pieces in terms of.

Speaker Change: Your strategy as it relates to the tariffs and by the way. Thank you very much for all the clarification you've already given some of the estimates here.

Speaker Change: Can you help us understand a little bit more as to the alternative lectures thinking of this to be a longer lasting issue headwinds. However, you want to call. It how could we think about alternative sourcing for some of the raw material.

Speaker Change: Like ours that are significantly impacted and could you quantify that already have close to $20 million for this year.

Benjamin Theurer: And you quantified it already, it's close to 20 million for this year. But if we were to move into 2026, is there any opportunity to find alternative sources for some of these raw materials and what would be possible?

Speaker Change: Want to move into 2020 to execute any opportunity to find alternative sources for some of these raw material costs.

Okay.

Andrew Sandifer: Hey Benjamin, it's Andrew. I'll take this one. Great question. I think certainly part of the way we're limiting the impact in 25 and will continue to limit the impact in 26 is we have built a great deal of flexibility in our supply chain with multiple sources for all of our critical raw materials. This is something that we learned before COVID and perfected during COVID, including to doing a lot of heavy lifting to include those sources in our registrations in all our key markets to allow us to be able to switch sources of production. So certainly, you know, when we think and you look back at that tariff page, while we focus a lot on China, you know, tariffs impact sourcing that we do from the United Kingdom, from Mexico, from India, as well as from China, but we have the ability to move some production around to help limit some of the impacts of tariffs as they become more certain.

Speaker Change: Benjamin as Andrew I'll I'll take this one is a great question I think certainly part of the way we are eliminating the impact in 'twenty five and we will continue to limit the impact of <unk> 26, as we have built a great deal of flexibility in our supply chain with multiple sources for all of our critical raw materials.

Speaker Change: And this is something that we learned before COVID-19 and perfected during COVID-19 and coding to doing a lot of heavy lifting to include the sources and our registrations in all our key markets to allow us to be able to switch sources of production. So certainly when we think of and you can look back of that tariff page, while we focus a lot on China tariffs impact sourcing that we do.

Speaker Change: In the United Kingdom from Mexico from India, as well as from China, but we have the ability to move some production around to help limit some of the impacts of tariffs as they become more certain.

Andrew Sandifer: I think we have high confidence in the outlook for 25 in part because sitting here on May 1st, we turn inventory about twice a year. So we've purchased the material that will cover us largely through most of the, well into the fourth quarter. So we have a pretty high visibility into the cost base that we have and the tariff impacts that we have that are sitting in inventory or will sit in inventory during that time period. As we look to 26, certainly we are going to continue to look at the balance of different sources that we have, and we're going to look to see how the tariffs themselves evolve.

Speaker Change: We have high confidence in the outlook for 'twenty five in part because sitting here on May <unk>, we turn inventory about twice a year. So we've purchased the material that will cover us largely through them through most of the.

Speaker Change: Well into the fourth quarter. So we have a pretty high visibility into the cost base that we have in the tariff impact that we have that are sitting in inventory or will sit in inventory during that time period. As we looked at 26, certainly we're going to continue to look at the balance of different sources that we have.

Speaker Change: And we're going to look to see how the tariffs themselves evolve I mean, certainly the government has stated that they intend to negotiate trade deals with various countries.

Andrew Sandifer: I mean, certainly the government has stated that they intend to negotiate trade deals with various countries. Our hope is that will result in both more clarity, but also lower than currently published tariff rates for many of those countries that would help reduce those tariff headwinds. And I would just finish off with this, you know, beyond sources, beyond, you know, working and following closely how these tariffs develop, over a period of time, as the tariffs become more certain, we will have to move prices to offset tariffs. We did that with the first Trump administration tariffs, they're part of our ongoing cost structure.

Our hope is that will result in both more clarity, but also lower than currently published tariff rates for many of those countries that would help reduce those tariff headwinds.

Speaker Change: And I would just finish off with us beyond beyond sources beyond working and following closely how these tariffs develop.

Speaker Change: Over a period of time as the terrorists become more certain we will have to move prices to offset tariffs.

Speaker Change: We did that with the first Trump administration tariffs are part of our ongoing cost structure. They were absorbed their pricing over time, we need more certainty and some trade deals in place app to really be able to do that at this point and then relative to the timing of the seasons when it's a more natural point to make some price changes.

Andrew Sandifer: They were absorbed through pricing over time. We need more certainty and, you know, some trade deals in place to really be able to do that at this point. And then relative to the timing of the seasons, when it's a more natural point to make some price changes. But while we have the, you know, the additional cost savings and a little extra volume, Pierre, within the ranges we'd initially guided, as Pierre mentioned earlier in the call, that will help us absorb tariff headwinds in 2025. And 2026, should, you know, significant tariff headwinds persist, we will have to move pricing to help offset.

Speaker Change: While we have the additional cost savings and al will extra volume appear within the range as we had initially guided as Pierre mentioned earlier in the call that will help us absorb the tariff headwinds in 2025, and 2020 section significant tariff headwinds persist we will have to move pricing to help offset those costs. So it'll be a combination of all.

Patrick Cunningham: So it'll be a combination of all those factors, you know, managing across the sources, taking, you know, working through carefully how the tariffs are fully implemented, including the use of exemptions and duty of drawback, and then with the residual tariff cost inflation, passing that on to The next question comes from Patrick Cunningham with the company Citigroup. Patrick, your line is now open. Hey, good morning.

Speaker Change: Those factors managing across the sources, taking working through carefully how the tariffs are fully implemented including the use of exemptions and dirty Roar back and then with the residual tariff cost inflation passing that onto customers.

Speaker Change: The next question comes from Patrick Cunningham with a company Citigroup Patrick Your line is now open.

Speaker Change: Hey, good morning. This is very keenly on for Patrick.

Rachel Leontra-Patrick: This is Rachel Leontra-Patrick. Can you share more about what you're hearing from customers in terms of order patterns? Seems like North American volumes were impacted pretty heavily by the cautious customer behavior. So curious to see what you're seeing for the full year. Thank you. You broke it a little bit. I think you asked. Uh... Could you repeat your question? Because you broke up during your question. So I'm not sure what was the, we couldn't hear you. Um, can you share more about the customer order pattern? Uh, one, two, North American volumes were impacted pretty heavily by the cautious customer behavior, as you call that, so here's the feed for a full year.

Speaker Change: Share more about what you're hearing from customers in terms of order pattern.

Speaker Change: Unlike north American volumes were impacted pretty heavily.

Speaker Change: <unk> cautions concerning homework.

Speaker Change: Sure.

Speaker Change: For the full year.

Speaker Change: Yes.

Speaker Change: You broke a little bit I think you asked.

Speaker Change: Uh huh.

Speaker Change: Yeah.

Speaker Change: Could you could you repeat your question because you broke up during your question. So I'm not sure it was the <unk>.

We couldnt hear you.

Speaker Change: Can you share more about the customer order pattern.

Speaker Change: Once your North American volumes are.

Speaker Change: In past occurring heavily by cautious customer behavior as we called out for sure for full year.

Pierre Brondeau: Yeah, I think customer. So it depends on the on the regions. Generally speaking Customers today tend to in the first quarter were buying a bit closer to to planting time. So the movement from, for example, in the US from from wholesalers to retailers to growers. It doesn't mean that the total number by the end of the season will not be the same. But the speed at which it's happening is. has been slower in Q1. In Q2. Things seem to be picking up. I think there is demand. As I said, a Q2 number is prudent. We are still highly focused on our inventory.

Speaker Change: Yes, I think customer so.

Speaker Change: So it depends on the on the regions.

Speaker Change: Generally speaking.

Speaker Change: <unk> two dee.

Speaker Change: And two in the first quarter.

Speaker Change: Where.

Speaker Change: Buying a bit closer to planting time so the.

Speaker Change: The movement from for example in the U S from.

Speaker Change: From wholesalers to retailers to growers.

Speaker Change: It doesn't mean that the total number by the end of the season will not be the same.

Speaker Change: The speed at which is happening is.

Speaker Change: It's been slower in the in the.

Speaker Change: As been slow in June in Q2.

Speaker Change: Things seems to be picking up I think there is there is demand as I said.

Speaker Change: Q2 number.

Speaker Change: Is it prudent.

Speaker Change: We.

Speaker Change: We are still highly focused on our inventory.

Pierre Brondeau: But there is a dynamic which is much more positive. I'll give you an example. In Europe today, one month into the quarter, we do have already 51% of the orders we need for the quarter. So that's a much faster speed of purchase that we've seen in a long time and we've seen in the first quarter. So the order pattern is prudent. But let's not forget that we committed for two quarters to get back to a normal inventory situation in the middle of the year, which is very specific to FMC.

Speaker Change: But there are there is there is a dynamic which is much more positive I will give you an example.

Speaker Change: In Europe today, one month into the quarter, we do have already 51% of the orders we need for the quarter. So that's a much faster speed of per shares that we've seen in a long time.

Speaker Change: And what we've seen in the first quarter so.

Speaker Change: The order pattern is prudent, but let's not forget that we committed for two quarters to get back to a normal inventory situation in the middle of the year, which is very specific to FMC, but yes things were.

Vincent Andrews: But yes, things were The next question comes from Vincent Andrews with the company Morgan Stanley. Vincent, your line is not open. Thank you.

Speaker Change: So from a speed node quantity and I would say picking up speed into Q2 as we as we are clearly seeing opening us in Europe right now.

Speaker Change: Okay.

Vincent Andrews: The next question comes from Vincent Andrews with a company Morgan Stanley.

Speaker Change: Your line is now open.

Vincent Andrews: Good morning, everyone. Wondering if you can just help us sort of understand or maybe compare and contrast the difference between selling directly to the farmer and selling through the channel. And I guess I'm just kind of trying to think through the line items, you know, the ASP is different. Obviously, the COGS are the same, but maybe SG&A is higher or lower. I don't want to pay the channel and the terms in terms of cash conversion. Are they better? Are they worse? Are they about the same? Just maybe help us understand how that's going to play out.

Vincent Andrews: Thank you and good morning, everyone. I'm wondering if you can just help us sort of understand or maybe compare and contrast, the difference between selling directly to the farmer selling through.

Speaker Change: The channel and I guess I'm, just kind of trying to think through the line items.

Vincent Andrews: The Asps is different obviously the Cogs are the same but maybe SG&A is higher.

Vincent Andrews: Or lower automobile application channel and does the terms in terms of cash conversion or they have a better or are they worse are they about the same.

Vincent Andrews: Just maybe help us understand how that is going to play out.

Pierre Brondeau: All right, I'll let Andrew make more or Ronaldo make more comments. First, the cash conversion is much more linked to the regions of the world where you operate rather than the people, the customer to which you are selling. From the fundamental... a bit margin on the product. It's about the same if you sell direct or if you sell into the into the retail system. There is not a meaningful difference in terms of the profit you will get. Those are parallel channels, but the economics are about the same.

Vincent Andrews: Alright.

Vincent Andrews: Andrew make more more or for another ningbo commence mid first.

Vincent Andrews: First year cash conversion is much more linked to the.

Vincent Andrews: The regions of the World, where you operate rather than the people the customer two to reach you are you are selling.

Vincent Andrews: From a.

Vincent Andrews: From the fundamental.

EBIT margin on the products. It's about the same if you sell direct or if you sell into the into the retail system that there is no meaningful difference in terms of the proceeds you will you will get those out apparel channels, but the economies are both about the same.

Pierre Brondeau: Andrew or Ronaldo, you want to add to that? No, the net contribution is very, very similar. Those growers are larger than average growers and they tend to buy at a discounted rate or a discounted price in comparison to the average of the market. If you take that into consideration, our net price to them is very similar to the net price that we already put in place on average in those countries. So it's not a meaningful difference.

Vincent Andrews: Or do you want to add to that that contribution is very very similar those growers are larger than average growers.

And they tend to buy at a discounted rate or a discounted price in comparison to the average of the market.

Vincent Andrews: If you take that into consideration in our net price to them is very similar to the net price that we are ready.

Vincent Andrews: Put in place.

Vincent Andrews: On average in those countries. So it's not a meaningful difference it does require and we said that in prior quarters. It does require dedicated people. So there is an an SG&A component there.

Pierre Brondeau: It does require, and we said that in prior quarters, it does require dedicated people. There is an SG&A component there, but it's not dissimilar to the SG&A we would have to serve additional customers in the traditional model. As of terms... terms are similar. They are mostly crop terms. So there's no disconnection. There's no real difference there between selling to retail or selling to growers.

Vincent Andrews: But it's not dissimilar to the SG&A, we would have to serve additional customers in the traditional model.

Vincent Andrews: As of terms.

Vincent Andrews: Terms are similar there.

Vincent Andrews: They're mostly crore.

Vincent Andrews: Crop terms. So there is no disconnection theres no different REO difference there between selling to retail or <unk> growth.

Josh Spector: The next question comes from Josh Spector with the company UBS. Josh, your line is now open.

Josh Spector: The next question comes from Josh Spector with the company UBS.

Speaker Change: Your line is now open.

Andrew Sandifer: Good morning, this is Lucas Spilon, I'm for Josh. I just wanted to ask about the second half of the David Dow Bridge on slide 11. There's a hundred million headwind on there from Pross and FF. It looks like it's likely to be down kind of $40 to $50 million on sales in the second half with a similar impact to EBITDA. FX looks like it's probably going to be flat now on sales with 3Q down and 4Q potentially positive where the current rates are. So could you please just help us understand where that other $50 million from the headwind is coming from in the second half?

Speaker Change: Good morning, this is like a stronger answer Josh.

Speaker Change: To ask about the <unk>.

Speaker Change: Haas EBITDA bridge on slide 11.

Speaker Change: 100 million headwind from cross an FX loss looks like its slot clutter Vijay on kind of $40 million to $50 million on sales in the second half with a small impact on EBITDA.

Speaker Change: FX looks like it's probably going to be flat sales with shrinking down I'm talking potentially positive for the contracts.

Speaker Change: But could you. Please just help us understand whether a $15 million on the headwind is coming from in the second half does that imply that your price assumption is more like down 100 loan.

Andrew Sandifer: Does that imply that your price assumption is more like down $100 million? or is a hedging implies on the effects side that's sort of offsetting that. to understand your assumptions.

Speaker Change: Or is that hedging in place on the asset side is sort of offsetting that.

Speaker Change: I'd like to understand your assumptions that place.

Andrew Sandifer: Hey Lucas, this is Andrew. I'll try to help you here. You know, we're, we're intentionally not guiding quarters for the second half. It's too early for that. I think what we're and the reason we showed the price and FX together is because in many markets, there's an interconnection between FX movements and local price. You know, we see that a lot, particularly in European markets. Certainly, you know, we've guided for the full year that we expect a low to mid single digit headwind at revenue from price. Similar, similar kind of headwind in Q2, we had a high higher headwind in the first quarter.

Speaker Change: <unk> is as Andrew I'll try to help you here, we're intentionally not guiding quarter. So the second half is too early for that I think what we're and the reason we showed the price and FX together because in many markets. There is an interconnection.

Speaker Change: Between FX movements and local price when we see that a lot, particularly in European markets.

Speaker Change: Certainly we've guided for the full year that we expect a low to mid single digit headwind it revenue from price.

Speaker Change: Similar similar kind of headwind in Q2, we had a higher headwind in the first quarter. So just basic math to be a little less headwind in the second half than that low mid single digit for pricing.

Andrew Sandifer: So, you know, just basic math would be a little less headwind in the second half than that low mid single digit for pricing. And then to the second party question with FX, you know, historically, FX drops to EBITDA from revenue headwind at about 50% for us. With the way currencies are currently moving and what forward rates look like and where we're hedged, that drop through is going to be a bit heavier this year. So, you know, it's going to be more than 50%. So, I think you need to think about the drop through on FX being a bit higher.

Speaker Change: And then the second part of your question of FX, Yes, historically FX drops to EBITDA from revenue headwind at about 50% for us with the way currencies are currently moving in what forward rates look like and where we're hedged.

Speaker Change: That drop through is going to be a bit heavier this year.

Speaker Change: So it's going to be more than 50% you think you need to think about the drop through on FX being a bit higher.

Andrew Sandifer: Not going to be perfectly precise here, but I think, again, if you think about that pricing in the second half being a little less than low mid single digit kind of headwind would be appropriate. And then FX, that FX headwind dropping through a bit more than our historical 50%, that'll balance out how we get to that 95 to 105 headwind.

Not going to be perfectly precise here, but I think again, if you think about our pricing in the second half being a little less in low mid single digit kind of headwind would be appropriate and then FX FX headwind dropping through a bit more than our historical 50% that'll balance out how we get to that 95 to one five range.

Frank Mitsch: Final question comes from Frank Mitsch with the company Fermil Research. Frank, your line is now open. Thank you for saving the best for last. I really appreciate the confidence on the second half, Iveta, Uplift, you know, the conversation about the new products seems relatively straightforward and seems like you have really good line of sight there.

Speaker Change: Final question comes from Frank Mitsch with accompanying familial research Frank Your line is now open.

Frank Mitsch: Thank you for saving the best for last.

Speaker Change: I really appreciate the confidence on the second half.

Frank Mitsch: EBITDA uplift.

Speaker Change: The conversation about the new products seems relatively straightforward and it seems like you have really good line of sight. There I wanted to focus in on the route to market the new route to market in Brazil.

Pierre Brondeau: I wanted to focus in on the route to market, the new route to market in Brazil. A couple of things. One is, you know, how much did that negatively impact the first quarter results? And, you know, what's your expectations in terms of that being a drain? When do you think that that flips to being a positive? And frankly, Pierre, you sounded pretty upbeat about the ability this year, so second half of 25, to really penetrate the large corn and soybean farmers. If you could give any more color there, that would be very helpful. Since this is a, as you indicated, a new route to market.

Speaker Change: Couple of things one is how much did that negatively impact the first quarter.

Speaker Change: Alton.

Speaker Change: What's your expectations in terms of that being a drain when do you think that that flips.

Speaker Change: Flip to being a positive and frankly peer you sounded pretty upbeat about the ability. This year. So second half of 'twenty five to really penetrate the large corn and soybean farmers. If you could give any more color there that would be that would be very helpful. Since this is a as you indicated a new route to market.

Pierre Brondeau: Thank you. Sure. I will. I'm gonna, I'm gonna let Ronaldo... I'll answer more precisely than I do. The negative impact in Q1 this year of this was mostly the S&R cost, the selling, because we've been hiring a significant number of people to do two things in Brazil. First, to accelerate sales into co-op by doing what I explained before, more activity to increase product on the ground with our final growers. And then we created a sales force for this new market. We are finally able to penetrate after decades of not being able or entitled to penetrate.

Speaker Change: Thank you.

Speaker Change: Sure.

Speaker Change: I'm going to eliminate.

Speaker Change: Run out.

Speaker Change: And Sir more precisely than I do.

Speaker Change: The negative impact in Q1 this year.

Speaker Change: This was mostly the <unk> costs.

Speaker Change: Selling because we've been hiring a significant number of people.

Speaker Change: Two things in Brazil first to accelerate sale.

Speaker Change: Sales into club by doing what I explained before more activity.

Speaker Change: To increase product on the ground.

Speaker Change: With our final rules and then we created a sales force for these new markets. We are finally able to penetrate after decades of not being able or entitled to penetrate the organization is really that people have been hired that people have been trained the contacts are being taken monolingual now who will talk about the confidence.

Ronaldo Pereira: The organization is ready, the people have been hired, the people have been trained, the contacts are being taken.

Ronaldo Pereira: I'm going to let Ronaldo talk about the confidence of realizing those new sales when the season starts in Brazil. Very high, Frank. As Pierre just pointed out, the organization is already in place. They've been trained and they have already been assigned territories and specific customers to cover. As you may remember, we said in the last earnings call that what enabled us to do this now is the new technologies we're bringing to the market. And that combination of more people, more presence, and the new technologies for which we have very high confidence, that's what brings us confidence.

Speaker Change: Of realizing those new sales when the season starts in Brazil.

Frank Mitsch: Hi, Frank.

Frank Mitsch: As Pierre just pointed out the organization is already in place.

Frank Mitsch: <unk> been trained and they have already been assigned territories and specific customers to cover.

Frank Mitsch: As.

Frank Mitsch: You may remember that as we said in the lung.

Frank Mitsch: Last earnings call that what enabled us to do this now is the new technologies, we're bringing to the market.

Frank Mitsch: And that combination of more people more presence and the new technologies.

Frank Mitsch: For which we have very high confidence that's what brings us confidence you're asking about when it turns positive.

Pierre Brondeau: You asked about when it turns positive. We start to invoice for soybean and corn in the later part of Q2 and into Q3, primarily in Q3. So that is when we expect this to become positive. And honestly, I have no doubt that it's going to be positive in 2025. Yeah, and I want to reiterate with your comments, Frank, my My very, very high confidence in H2. I know the numbers look big compared to Q1, Q2, but it's a deliberate strategy. I am As happy as I could be from the way Q1 happened, we met all of our objectives.

Frank Mitsch: We start doing voice for soybean and corn.

Frank Mitsch: The latter part later part of Q2 and into Q3, primarily in Q3. So that is when we expect those to become positive.

Frank Mitsch: Honestly I have no doubt that it's going to be positive in 2025.

Frank Mitsch: Yes.

Frank Mitsch: I want to reiterate.

Frank Mitsch: And your comment Frank My.

Speaker Change: My very very high confidence in NH, two I know the numbers look big compared to Q.

Speaker Change: Q1, Q2, but it's a deliberate strategy.

Speaker Change: Uh huh.

As happy as they could be from the weak Q1 happened we met all of our objectives, we're going to carry on that too maybe.

Pierre Brondeau: We're going to carry on that to maybe a smaller extent in Q2, because you've done the vast majority of the work in Q1. We're going to start Q3 with a very, very clean channel. We have two sources of revenue growth, which are very well identified, with not a lot of expectation from the market moving, but us moving. The price, we're going to be comparing to a very low pricing situation in the back end of last year. And the EBITDA, as I said before, a big part of it is already in the book.

Speaker Change: A smaller extent in Q2, because we've done the vast majority of the working in Q1, we're going to start Q3 with a very very clean channel.

Speaker Change: We have two source of revenue growth, which are very well identified.

Speaker Change: With not a lot of them.

Speaker Change: Spectation from the from the market moving but us moving the price we're going to be comparing to.

Speaker Change: Two are very low.

Speaker Change: Very low pricing situation in the backend of our.

Speaker Change: Over last year, and the EBITDA as I said before a big part of it is already in the books. So.

Unknown Executive: I know the number looks good, looks big, but, but It's not as big of a stretch as the numbers seem to seem to This concludes the FMC Corporation conference call. Thank you for attending.

Speaker Change: I know the numbers exclude looks big but that's.

Speaker Change: It's not as big of a stretch.

Speaker Change: As the numbers into a syndrome.

Speaker Change: This concludes the FMC Corporation conference call. Thank you for attending you may now disconnect.

Unknown Executive: You may now disconnect.