Analysis FMC
FMC's sales fell 80%. A pricing reset explains only part of it.
FMC's pricing reset explains much of an 80% sales drop. Weaker demand and a lower cash forecast show why the problem runs deeper.
Ticker Byline
FMC Corporation
FMC makes crop-protection chemicals sold to agricultural distributors, partners and growers around the world.
- Ticker
- FMC
- Exchange
- XNYS
- SEC CIK
- 0000037785
Crop protection through distributors and partners
FMC Corporation, listed on the New York Stock Exchange as FMC, develops and sells crop-protection products, including insecticides, herbicides and fungicides. It reaches growers through distributors, commercial partners and direct sales in some markets.
What changed in the third quarter
Figures below cover the three months ended September 30. Dollar amounts are in millions. Adjusted EBITDA is the company's earnings measure before interest, taxes, depreciation, amortization and selected other items, including restructuring and the India business held for sale.
| Metric | Q3 2025 | Q3 2026 |
|---|---|---|
| Reported revenue | $542 | $106 |
| Consolidated net loss | $569 | $2,065 |
| Adjusted EBITDA | $236 | -$559 |
| Continuing operating cash flow | -$184 | $7 |
| Company-defined free cash flow | -$232 | -$18 |
The 2026 commercial actions reduced revenue by about $639 million and adjusted EBITDA by about $672 million. Before the actions and excluding India, revenue was $745 million, down 22% on a comparable basis, and underlying adjusted EBITDA was $113 million. The prior year's reported revenue also included a $419 million negative adjustment in India, making the comparable sales measure more useful for judging demand.
The reported loss includes large noncash tax and intangible-asset adjustments. Free cash flow includes continuing and discontinued operating cash, capital and other investing activities, and an adjustment for divestiture costs. It was negative $289 million for the first nine months of 2026.
Forecasts through the pricing reset
On October 15, FMC forecast third-quarter revenue of $65 million to $125 million and adjusted EBITDA of negative $565 million to negative $510 million. The eventual results were within those ranges.
| Forecast | July 2026 | October 29 |
|---|---|---|
| Q4 revenue, excluding India | $1.06bn to $1.20bn | $1.04bn to $1.14bn |
| Q4 adjusted EBITDA | $275m to $315m | $210m to $230m |
| Full-year free cash flow | $75m to $225m | -$350m to -$150m |
The July free-cash-flow outlook included a $200 million upfront licensing payment already received from Corteva. October's outlook includes about $180 million of restructuring spending and reflects lower demand and the commercial actions.
About $500 million of the adjusted EBITDA charge concerns the North American rebate-model transition, with no change to future cash obligations. A separate approximately $175 million of price credits on existing customer stock reduces future collections. Implementation is expected over the next three quarters.
Cash, debt and the completed Tessenderlo investment
At September 30, cash was $735.8 million, compared with $584.5 million at December 31. The balance sheet carried $222.8 million of current debt and $3.95 billion of long-term debt.
Tessenderlo Group completed its investment on September 23, buying 30.3 million newly issued FMC shares at $13.30 each for about $403 million before fees. Including shares it already held, its stake was roughly 20% after the issue. The transaction supplied financing and diluted existing shareholders. The proposed sale of FMC's India commercial business remained pending in the October quarterly filing.
FMC was in compliance with its applicable bank covenants at September 30. The key operating tests ahead are renewed distributor orders, delivery of the reduced fourth-quarter outlook and the effect of price credits on cash collections.
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