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Fmc Corp. (FMC)
NYSE:FMC
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FMC
(NYSE:FMC)
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Rating:49Neutral
Price Target:
$14.00
▲(1.45% Upside)
Action:ReiteratedDate:02/10/26
The score is held back primarily by weak financial performance (losses, higher leverage, and negative operating/free cash flow). Offsetting factors include a neutral-to-slightly improving technical picture, a high dividend yield (tempered by loss-making earnings), and an earnings call that pairs near-term headwinds with a clear deleveraging and cost-reduction plan.
Positive Factors
New active ingredients growth
Rapid expansion of new active ingredients diversifies FMC’s revenue away from legacy products. Growth from ~$130M to ~$200M and guidance to $300–$400M in 2026 demonstrates scalable R&D commercialization, reducing long‑term concentration risk and supporting multi‑year EBITDA upside if registration and execution hold.
Debt-reduction plan & strategic review
Management has a concrete plan to cut leverage via >$1B of asset sales/licensing and is pursuing a board‑authorized strategic review. Successfully executing these steps would materially reduce refinancing and covenant risk, improve financial flexibility, and create optionality to fund operations or reinvest in higher‑return growth initiatives.
Improved liquidity and covenant flexibility
Reworking the credit facility and securing covenant relief through 2026 provides near‑term breathing room to execute restructuring and asset sales. Improved covenant flexibility plus planned refinancing management lowers immediate default risk and gives time to complete cost reductions and portfolio actions that affect long‑term solvency.
Negative Factors
Elevated leverage
Equity erosion from recent losses pushed leverage sharply higher, reducing capital cushion and increasing sensitivity to earnings volatility. Elevated debt ratios constrain strategic flexibility, raise refinancing risk on upcoming maturities, and make meaningful deleveraging essential to restore financial stability over the medium term.
Weak cash generation
Negative operating and free cash flow in the most recent year marks a material reversal from prior strength and limits the company’s ability to self‑fund restructuring, capex, or dividends. Volatile cash conversion raises reliance on asset sales or external financing to meet obligations and complete the deleveraging plan.
Core competitiveness & high-cost footprint
A large portion of core portfolio production is tied to high‑cost sites, pressuring margins versus lower‑cost competitors. Addressing this requires meaningful cost reduction or footprint changes, which carry execution risk, near‑term disruption and restructuring expense, and could weigh on revenue and profitability during the transition.
FMC (FMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.73B
Dividend Yield16.68%
Average Volume (3M)4.38M
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-13.42%
EPS Growth-136.59%
CountryUS
Employees5,700
SectorBasic Materials
Sector Strength58
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)1.20
Shares Outstanding125,045,040
10 Day Avg. Volume3,224,692
30 Day Avg. Volume4,380,612
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.84
Price to Sales (P/S)0.50
P/FCF Ratio-9.84
Enterprise Value/Market Cap3.13
Enterprise Value/Revenue1.56
Enterprise Value/Gross Profit4.21
Enterprise Value/Ebitda-63.33
Forecast
1Y Price Target
$15.06Price Target Upside9.13% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)1.75
Revenue Forecast (FY)$3.71B
FMC Business Overview & Revenue Model
Company DescriptionFMC Corporation, an agricultural sciences company, provides crop protection, plant health, and professional pest and turf management products. It develops, markets, and sells crop protection chemicals that include insecticides, herbicides, and fungicides; and biologicals, crop nutrition, and seed treatment products, which are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. It operates in North America, Latin America, Europe, the Middle East, Africa, and Asia. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.
How the Company Makes MoneyFMC primarily makes money by selling branded crop protection products to the agricultural sector. Its revenue model is product-driven: the company generates sales by marketing and distributing formulations (e.g., insecticides, herbicides, fungicides) through agricultural distribution channels (such as wholesalers, retailers, and other channel partners) and, in some cases, directly to large customers. Earnings are influenced by product mix (higher-value, differentiated or patented/novel active-ingredient products versus more commoditized products), geographic and crop demand, and seasonal planting cycles. FMC can also generate revenue from arrangements related to its technology and product portfolio (such as licensing, collaborations, or similar agreements); if specific partner names or financial terms are required, null.
FMC Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyFMC Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call balances clear operational progress and strategic actions (debt-reduction plan, strong Q4 cash generation, accelerating new active ingredients and an actionable manufacturing-cost reduction target) against material near-term headwinds (declining 2026 revenue guidance, a sharply weaker Q1 EBITDA and low Q1 margin, core portfolio competitiveness issues, negative FY2025 free cash flow, and broad generic pressure on Rynaxypyr). Management presented a concrete multi-year plan and initiated a strategic review to maximize shareholder value, but 2026 is positioned as a challenging transition year.Q4-2025 Updates
Positive Updates
Strategic Review and Potential Sale
Board authorized a formal strategic review including potential sale of the company; financial and legal advisers retained. This process runs in parallel with operational execution to maximize shareholder value.
Debt Reduction Plan and India Sale Progress
Targeting >$1 billion of debt paydown in 2026 via asset sales and licensing (including sale of India commercial business). India sale progressing with binding bids expected in Q2 2026.
Strong Quarter Cash Generation and Reduced Net Debt
Q4 GAAP cash from operations of $657 million (+$230 million vs prior year quarter) and Q4 free cash flow of $623 million. Net debt at quarter end ~ $3.5 billion, down >$550 million vs Q3.
New Active Ingredients: Rapid Growth and Long-Term Upside
Sales of four new active ingredients grew ~54% from ~$130 million in 2024 to ~$200 million in 2025. 2026 sales for new actives guided to $300–$400 million; management still expects >$2 billion of cumulative sales by 2035.
Rynaxypyr Branded Earnings Expected to Hold
Despite post-patent generic entry, branded Rynaxypyr earnings are expected to be in line with prior year in 2026 due to higher volumes of advanced offerings and lower costs offsetting lower prices.
Focused Operational Priorities and Manufacturing Cost Target
Clear operational priorities: strengthen balance sheet, improve competitiveness of core portfolio, execute post-patent Rynaxypyr strategy, and grow new actives. Target to lower manufacturing cost of non-diamide products by at least 35% by 2027.
Improved Liquidity and Covenant Flexibility
Reworked revolving credit facility with covenant covenant allowance (6x through 2026) and plan to manage upcoming $500 million bond maturity (October) with refinancing intent in H1 2026.
Negative Updates
Full-Year 2026 Revenue and EBITDA Guidance Down
2026 full-year sales guidance of $3.6–$3.8 billion, which is down ~5% at the midpoint versus prior year. Full-year adjusted EBITDA guided to $670–$730 million (below prior-year levels).
Weak Q1 Outlook with Large EBITDA Decline
Q1 2026 sales guidance $725–$775 million (down ~5% vs prior year); adjusted EBITDA expected $45–$50 million, a 58% decline YoY. Q1 EBITDA margin expected to be ~7% (abnormally low due to fixed costs, tariffs and unfavorable Q1 manufacturing costs).
Q4 2025 Revenue and Profit Pressure
Q4 sales $1.08 billion, down 11% YoY (5% decline like-for-like excluding India). Price declined 6% and volumes down 1%. Q4 adjusted EBITDA $280 million, down 17% YoY (down 8% like-for-like). Adjusted EPS $1.20, down 33% YoY driven by lower EBITDA and higher interest.
Core Portfolio Competitiveness Challenges
Core product sales excluding Rynaxypyr were approximately $2.2 billion in 2025; nearly $1 billion of this came from high-cost manufacturing facilities. Competitiveness issues expected to be a sales headwind in 2026 while manufacturing footprint is restructured.
Post-Patent Generic Pressure on CTPR (Rynaxypyr) and Partners
Generic CTPR offerings announced broadly (notably US and Brazil) following patent expirations; expected increased resistance in some crops and reduced partner orders, contributing to lower partner sales and pricing pressure.
Full-Year Free Cash Flow and 2025 Cash Performance
2025 free cash flow was negative $165 million and full-year cash from operations was negative $6 million (including $103 million of restructuring spend). 2026 free cash flow guided to -$65 million to +$65 million (breakeven at midpoint), including $130 million restructuring spend.
Tariffs and Q1 Cost Headwinds
Tariffs expected to be a $20 million headwind (nearly all in Q1). Q1 manufacturing costs expected to be unfavorable, adding to the quarter's margin pressure before improving later in the year.
Uncertainty from Registration Delays and Regional Execution
New active shortfall vs expectations in 2025 (missed $250 million target; actual ~$200 million) mainly driven by later-than-expected registration for Isoflex in Great Britain and softer-than-expected direct sales in Brazil; registration timing remains a key driver for hitting 2026 new AIs range.
Company Guidance
FMC’s 2026 guidance calls for full‑year sales of $3.6–$3.8 billion (about a 5% decline at the midpoint) with price a mid‑single‑digit headwind and the removal of India a ~2% full‑year (first‑half concentrated) drag; full‑year adjusted EBITDA is guided to $670–$730 million. First‑quarter sales are guided to $725–$775 million (‑5% YoY) with adjusted EBITDA $45–$50 million (‑58% YoY) and an abnormally low EBITDA margin of ~7% driven by unfavorable Q1 manufacturing costs and ~$20 million of tariffs (mostly booked in Q1). FMC is targeting >$1 billion of debt paydown via asset sales and licensing (India sale with binding bids expected in Q2), expects 2026 free cash flow of –$65 million to +$65 million (breakeven at midpoint) including $130 million of restructuring spend, and projects net debt of ~$3.5 billion at year‑end down from Q3 (net leverage ~4.1x TTM EBITDA, covenant leverage 4.6x vs. a 6.0x covenant through 2026) with an expected ~0.5‑turn leverage reduction in 2026. Operational priorities include lowering manufacturing costs for the $2.2 billion core (ex‑Rynaxypyr) portfolio — nearly $1 billion of which is from high‑cost facilities — by at least 35% by 2027, executing a post‑patent Rynaxypyr strategy (2025 Rynaxypyr sales ~>$800 million; branded Rynaxypyr earnings expected flat in 2026), and growing new active ingredients (sales rose to ~$200 million in 2025 from ~$130 million in 2024, with 2026 forecast $300–$400 million and >$2 billion by 2035), positioning the company for mid‑teens EBITDA growth in 2027–2028.FMC Financial Statement Overview
Summary
Financials deteriorated materially: a swing to a large net loss, rising leverage as equity fell (debt-to-equity ~1.94), and negative operating/free cash flow in the latest year. Gross margin stability is a partial offset, but the collapse in operating profitability and cash generation drives elevated risk.Income Statement
Profitability deteriorated sharply in the latest annual period, with revenue down ~2% and a swing from solid profitability in 2024 to a large net loss in 2025 (net margin deeply negative). While gross margin held roughly stable (~37%), operating performance collapsed (negative EBIT/EBITDA), indicating heavy cost pressure and/or significant charges below the gross profit line. The multi-year pattern shows weakening momentum: revenue has been declining since 2022 and the latest year marks a pronounced break from prior earnings power.28
Negative
Balance Sheet
Leverage increased meaningfully: debt rose while equity fell sharply in 2025, pushing debt-to-equity to ~1.94 (vs. ~0.78 in 2024). Total assets declined, and the large loss likely pressured the capital base, reducing financial flexibility. The company is not at extreme leverage for the industry, but the rapid deterioration in equity and higher balance-sheet risk are notable concerns.35
Negative
Cash Flow
Cash generation weakened significantly in 2025, with operating cash flow turning negative and free cash flow also negative, a major reversal versus strong positive free cash flow in 2024. Over the broader period, cash flow has been volatile (notably negative in 2023 as well), which raises questions about working-capital swings and the durability of cash conversion through the cycle. Negative operating cash flow in the most recent year is a clear near-term red flag.22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.47B | 4.25B | 4.49B | 5.80B | 5.05B |
| Gross Profit | 1.28B | 1.58B | 1.91B | 2.39B | 2.19B |
| EBITDA | -84.70M | 737.40M | 786.20M | 1.30B | 1.19B |
| Net Income | -2.24B | 339.90M | 1.32B | 736.50M | 739.60M |
Balance Sheet | |||||
| Total Assets | 9.69B | 11.65B | 11.93B | 11.17B | 10.67B |
| Cash, Cash Equivalents and Short-Term Investments | 584.50M | 357.30M | 302.40M | 572.00M | 516.80M |
| Total Debt | 4.20B | 3.50B | 4.11B | 3.42B | 3.34B |
| Total Liabilities | 7.59B | 7.14B | 7.49B | 7.77B | 7.53B |
| Stockholders Equity | 2.07B | 4.49B | 4.41B | 3.38B | 3.12B |
Cash Flow | |||||
| Free Cash Flow | -176.50M | 603.20M | -520.30M | 440.10M | 720.00M |
| Operating Cash Flow | -80.20M | 671.10M | -386.40M | 582.40M | 820.10M |
| Investing Cash Flow | -108.30M | 263.60M | -154.40M | -266.40M | -112.00M |
| Financing Cash Flow | 394.60M | -870.10M | 331.50M | -237.40M | -747.90M |
FMC Technical Analysis
Negative
13.80
Price Trends
14.93
Negative
15.40
Negative
26.60
Negative
Market Momentum
-0.27
Positive
43.79
Neutral
42.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMC, the sentiment is Negative. The current price of 13.8 is below the 20-day moving average (MA) of 14.24, below the 50-day MA of 14.93, and below the 200-day MA of 26.60, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 43.79 is Neutral, neither overbought nor oversold. The STOCH value of 42.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FMC.
FMC Risk Analysis
FMC disclosed 46 risk factors in its most recent earnings report. FMC reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FMC Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $18.80B | 8.62 | 29.95% | 2.56% | 12.59% | 31.40% | |
68 Neutral | $8.79B | 14.14 | 9.96% | 3.70% | 3.82% | 239.39% | |
62 Neutral | $3.61B | -6.71 | -27.23% | 4.52% | -3.93% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $6.88B | 32.61 | 3.77% | 3.36% | 1.77% | -8.72% | |
49 Neutral | $1.73B | -0.78 | -61.24% | 16.68% | -13.42% | -136.59% | |
41 Neutral | $149.05M | -3.82 | -46.59% | ― | ― | 55.04% |
* Basic Materials Sector Average
FMC
FMC
13.80
-27.15
-66.30%
CF
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122.33
47.67
63.84%
MOS
Mosaic Co
27.67
1.28
4.86%
SMG
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62.16
4.96
8.68%
ICL
Icl
5.33
-0.55
-9.42%
USBC
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0.38
-1.11
-74.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.