FMC Corporation — Third Quarter 2026 Earnings Summary

Financial Performance

• Third-quarter 2026 revenue is now expected to be between $65 million and $125 million.
• Adjusted EBITDA for the third quarter is expected to be between negative $565 million and negative $510 million.
• Revised expectations include approximately $625 million to $675 million in charges related to commercial actions impacting both revenue and Adjusted EBITDA.
• The company identified a triggering event to evaluate intangible assets for impairment as of September 30, 2026; a potential material non-cash impairment charge may be recorded, though the amount cannot be reasonably estimated at this time.
• The company expects to be in compliance with debt covenants as of September 30, 2026.

Guidance and Future Outlook

• Preliminary expectations for 2027 and 2028 will be shared on the earnings call on October 30, 2026.
• Management expects the commercial actions to accelerate product movement through the channel, supporting future replenishment demand.
• The company aims to complete its transformation and position itself to operate at full potential in 2027, 2028, and the long term.
• The company intends to engage with its bank group over the next year regarding potential modifications to debt covenants to provide greater flexibility during the implementation of commercial actions.

Business Segments and Product Lines

• Commercial actions are being implemented in Brazil, Argentina, the United States, and Canada to lower the price of select products held by channel customers.
• In the United States, FMC will modify its selling and pricing model by significantly reducing the gap between gross and net pricing, moving away from a high gross-price and high-rebate structure.
• The company views its current pricing as competitive and expects ongoing manufacturing changes to further support competitive pricing.
• The company is a global agricultural sciences provider offering biologicals, crop nutrition, digital, and precision agriculture solutions.

Market and Competitive Landscape

• Third-quarter demand was weaker than expected due to challenging market conditions.
• Distributors are operating with the lowest inventory levels FMC has experienced.
• Higher-priced FMC products held in channel inventory are limiting product movement and replenishment demand.
• Rapid market price declines, driven in part by increased generic competition, have widened the gap between the value of affected inventory and current market prices.

Risks and Challenges

• The company may be required to record a material non-cash impairment charge during the quarter ending September 30, 2026.
• The company cannot issue or reasonably estimate complete quarterly results in accordance with GAAP as of the date of this release.
• Forward-looking statements involve known and unknown risks, uncertainties, and factors that may cause actual results to differ materially from expectations.

Management Commentary and Tone

• Pierre Brondeau, Chairman, CEO, and President, stated that while the company addressed the issue incrementally over several quarters, more comprehensive actions were necessary under current market conditions.
• Management believes removing the hurdle of channel inventory constraints is an important step in completing the company's transformation.
• The tone indicates a strategic pivot to improve competitiveness and align pricing with current market realities.

Other Key Points

• FMC will report third-quarter earnings on October 29, 2026, providing more detailed information regarding the quarter's results and the 2026 financial outlook.
• The press release contains non-GAAP financial terms including Adjusted EBITDA, Adjusted earnings, free cash flow, and organic revenue growth, with reconciliations available on the company's investor website.
• Revenue from the Company's India commercial business is not expected to result in material differences between GAAP and non-GAAP revenue measures for the third quarter.