$FMC earnings report

FMC issued a preliminary update rather than finalized third-quarter results. The company now expects third-quarter revenue of $65 million to $125 million and Adjusted EBITDA of negative $565 million to negative $510 million. Management attributed weaker-than-expected demand to challenging market conditions and elevated inventories of higher-priced FMC products held by certain channel customers, which limited product movement and replenishment demand.

The update centers on channel inventory economics and pricing. FMC said that rapid market price declines, driven in part by increased generic competition, widened the difference between the value of affected inventory and current market prices. The company is responding by lowering the price of select products held by channel customers in Brazil, Argentina, the United States and Canada, while also changing the United States selling and pricing model to significantly reduce the gap between gross and net pricing.

The commercial actions are expected to result in approximately $625 million to $675 million in charges impacting revenue and Adjusted EBITDA. FMC expects these actions to accelerate movement of products through the channel to growers and support subsequent replenishment demand. The release frames the actions as a broader competitiveness initiative intended to improve channel health and align pricing with current market realities.

Financial-reporting uncertainty remains material. FMC has not finalized third-quarter financial results and said it cannot issue or reasonably estimate complete quarterly results in accordance with GAAP as of the release date. The commercial adjustments and revised outlook also triggered an evaluation of intangible assets for impairment as of September 30, 2026; the assessment was incomplete and could result in a material non-cash impairment charge.

Liquidity and financing flexibility are also areas for attention. FMC expects to be in compliance with covenants at September 30, 2026, but intends to discuss potential further covenant modifications with its bank group over the next year. The company plans to provide third-quarter results and its 2026 financial outlook on October 29, 2026, followed by preliminary expectations for 2027 and 2028 on October 30, 2026.

FMC reported a weaker second quarter, with GAAP revenue of $867 million, down 17 percent versus Q2 2025. Revenue excluding India was $841 million, down 20 percent, while organic revenue declined 22 percent. Lower diamide partner orders and reduced demand for core legacy products, particularly in North America, drove a 10 percent volume decline. Price declined 7 percent, while foreign currency provided a 2 percent tailwind.

Profitability also weakened. FMC recorded a GAAP net loss of $187 million and a GAAP loss of $1.49 per diluted share. Adjusted EBITDA was $153 million, down 26 percent, and adjusted earnings per diluted share was $0.26, down 62 percent. Lower price and volume were partly offset by favorable costs and foreign currency. Higher restructuring costs and higher interest expense also weighed on the GAAP result.

Cash generation was the principal positive in the quarter. GAAP cash from operations was $363 million and free cash flow was $357 million. Cash from operations included a $200 million upfront payment associated with the rimisoxafen licensing agreement. FMC also announced actions intended to generate approximately $1 billion of proceeds for debt paydown, including the India commercial business sale, the rimisoxafen licensing agreement, the Newark property sale-leaseback and the Tessenderlo Group equity investment.

The outlook reset reflects the difficult demand and pricing environment. Full-year revenue excluding India is now expected to be $3.50 billion to $3.70 billion, Adjusted EBITDA $620 million to $680 million, and Adjusted EPS $1.19 to $1.49. Price is expected to be lower by mid-to-high single digits, although volume excluding India is expected to be in line with prior year. Free cash flow guidance of $75 million to $225 million includes the $200 million rimisoxafen upfront payment.

The quarterly outlook is back-end loaded. Third-quarter revenue excluding India, Adjusted EBITDA and adjusted EPS are all expected to decline at their midpoints, with North America distributor orders shifting into the fourth quarter. FMC expects a return to year-over-year growth in the fourth quarter, supported by Brazil direct sales, new active ingredients and shifted North America orders. Delivery of that fourth-quarter volume recovery, alongside completion of the announced debt-reduction actions, is central to the updated outlook.