- FMC (NYSE: FMC) sharply reduced its third-quarter outlook because of weaker demand and excessive inventories of higher-priced products held by distributors.
- The crop-protection company expects third-quarter revenue of $65 million to $125 million and an adjusted EBITDA loss of $510 million to $565 million.
- FMC expects its commercial and pricing actions to reduce revenue and adjusted EBITDA by approximately $625 million to $675 million.
FMC (NYSE: FMC), a manufacturer of crop-protection products, is facing a sharp deterioration in investor expectations. The company’s shares plunged approximately 35% on October 15 after it issued substantially weaker third-quarter guidance. barrons.com
Recent analyst actions should be separated from the October 15 announcement. On October 5, UBS lowered its FMC price target to $10 from $12 while maintaining a Neutral rating. On October 13, Mizuho Securities analyst Edlain Rodriguez lowered his target to $12 from $15 while maintaining an Outperform rating. Neither action was a direct response to the October 15 guidance update.
FMC now expects third-quarter 2026 revenue of $65 million to $125 million, down from its previous forecast of $840 million to $900 million. The company also forecasts an adjusted EBITDA loss of $510 million to $565 million, compared with its previous expectation for a profit of $120 million to $140 million. Wall Street had expected approximately $869 million in revenue and $133 million in adjusted EBITDA.
The revised outlook includes an estimated $625 million to $675 million negative impact from commercial actions. FMC plans to reduce prices on selected products already held by distributors in key markets and modify its U.S. sales and pricing model. The company expects these measures to accelerate product movement through distribution channels and support future replenishment orders.
CEO Pierre Brondeau said third-quarter demand was weaker than expected because of difficult market conditions and elevated inventories of higher-priced FMC products. These inventories have slowed product movement and reduced new orders from distributors.
FMC shares traded around $5.30 during the October 15 session after closing at $8.09 the previous day. The stock touched a new 52-week low near $4.85 as investors reacted to the dramatic reduction in guidance. Because the market remained open when these figures were reported, the closing price, daily percentage change, trading volume, and market capitalization were not yet final.
