Updated edition 1 - FMC stock drops to over twenty-year lows, performance outlook revised downward due to inventory and pricing issues

Updated stock price and added analyst comments

Reuters, October 15 - On Thursday, agricultural chemicals manufacturer FMC (FMC.N) sharply lowered its third-quarter performance forecast and anticipates charges of up to $675 million due to price cuts and changes to its U.S. pricing model, causing its stock price to plunge 34% to the lowest level in more than 23 years.

Due to declining market prices and intensifying competition from generic drugs, higher-priced products are harder to sell, leading customers to be reluctant to replenish inventories, and the company is facing the challenge of weak demand from distributors.

Details as follows:

• FMC expects third-quarter revenue (excluding the Indian market) to be $65 million to $125 million, lower than the previous forecast of $840 million to $900 million

• The company expects an adjusted EBITDA loss of $510 million to $565 million, compared with the previous estimate of a profit between $120 million and $140 million

• The revised outlook includes charges of $625 million to $675 million resulting from commercial actions impacting revenue and adjusted EBITDA

• Kevin McCarthy from Vertical Research Partners said, "We've never seen anything like this... The magnitude of FMC’s cut to its latest third-quarter 2026 outlook is, on the surface, shocking and, even excluding the large and distorting charge, the situation still looks grim."

• FMC said these commercial measures include lowering the prices of certain products held by distributors in Brazil, Argentina, the U.S., and Canada

• The company will also completely overhaul its U.S. sales model to narrow the gap between total list price and net price after rebates

• FMC expects to remain in compliance with debt covenants as of September 30, but plans to negotiate potential covenant changes with lenders over the next year

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