FMC Corporation has reported a staggering $2.07 billion net loss for the third quarter of 2026, as sweeping commercial restructuring measures, weak market demand and significant non-cash charges battered its financial performance.

 

The agricultural sciences company posted revenue of just $106 million for the quarter ended September 30, compared with $542 million in the same period last year — a decline of 80%.

 

Adjusted EBITDA plunged to a negative $559 million from a positive $236 million a year earlier, while adjusted loss per diluted share widened to $4.41 from earnings of $0.89 in the third quarter of 2025.

 

FMC attributed much of the deterioration to commercial actions announced on October 15, which accounted for approximately $639 million in lost revenue and $672 million in negative Adjusted EBITDA impact.

 

The measures are aimed at addressing elevated inventory values held by channel customers, overhauling the company's North American pricing and rebate structure, and adjusting prices on selected products in key markets.

 

The scale of the financial hit comes as FMC grapples with weaker-than-expected demand and customers sharply reducing replenishment orders amid high financing costs, ample supply and uncertainty over market conditions.

 

"We are taking significant action to address elevated inventory values in the channel and improve the movement of FMC products to growers," said Pierre Brondeau, chairman, chief executive officer and president.

 

"Our third-quarter results reflected both the substantial impact of these actions and weaker than expected demand. Our priority now is disciplined execution with our customers. We believe completing this work, together with the progress across our operational priorities, positions FMC for improved performance in 2027 and a stronger growth and earnings profile in 2028."

 

FMC said approximately $500 million of the negative Adjusted EBITDA impact stemmed from its transition to a new pricing and rebate model in North America.

 

The previous system involved rebates being paid in the fourth quarter for the market year ending September 30, with those payments partly offset by continued sales at higher gross prices. Under the new model, effective October 1, that cycle will end, forcing the company to recognise the remaining adjustments associated with the historical pricing structure in its third-quarter results.

 

A further component of the North American adjustment involves bringing existing channel inventory down from historical gross prices to levels closer to the expected net prices under the new model.

 

FMC expects the revised structure to reduce volatility in future rebate payments, simplify pricing for the company and its customers, and allow channel partners to manage inventory values more closely in line with prevailing market conditions.

 

The remaining approximately $175 million of the EBITDA impact relates to price adjustments on high-priced products already held by channel customers in Brazil, the United States, Canada and Argentina.

 

The company said these adjustments are intended to accelerate the movement of affected products through the distribution channel and support future demand across its portfolio. They do not change current selling prices or affect current-period cash.

 

However, FMC expects to forgo future cash collections associated with these adjustments.

 

Excluding India and the impact of the commercial actions, FMC generated third-quarter revenue of $745 million, down 22% from the comparable prior-year period.

 

Volume dropped 21%, reflecting difficult market conditions and a sharp reduction in replenishment orders by channel customers in several key markets during the final weeks of the quarter.

 

Price declined 2%, while foreign exchange movements provided a 1% benefit.

 

Regional performance reflected the depth of the downturn. North America recorded negative revenue of $371 million, compared with positive revenue of $244 million in the year-ago quarter, largely reflecting the commercial adjustments.

 

Latin American revenue fell to $264 million from $463 million, while EMEA revenue declined to $121 million from $155 million. Revenue in Asia, excluding India, slipped to $91 million from $99 million.

 

The company's reported net loss of $2.07 billion compared with a loss of $569 million in the third quarter of 2025. FMC said the deterioration was primarily driven by non-cash adjustments involving deferred tax assets and intangible assets, alongside the commercial actions.

 

The company recorded a $287.5 million non-cash impairment charge related to indefinite-lived intangible assets. It also recognised substantial tax adjustments, primarily associated with valuation allowances on historical deferred tax assets.

 

Despite the losses, cash from continuing operating activities improved to $7 million from a negative $184 million in the prior-year quarter. Free cash flow was negative $18 million, an improvement of $214 million, largely reflecting favourable working capital movements.

 

FMC has lowered its fourth-quarter and full-year 2026 financial outlook, reflecting weaker demand, the impact of its commercial actions and revised expectations for the remainder of the year.

 

Fourth-quarter revenue, excluding India, is now expected to range between $1.04 billion and $1.14 billion, essentially flat at the midpoint compared with the fourth quarter of 2025.

 

Adjusted EBITDA is forecast at $210 million to $230 million, representing a 22% decline at the midpoint. Adjusted earnings per diluted share are expected to fall to between $0.56 and $0.70, down 48% at the midpoint year-on-year.

 

FMC expects higher sales volumes and cost savings to be more than offset by lower prices and unfavourable foreign exchange movements.

 

For the full year, revenue excluding India is projected at $2.75 billion to $2.85 billion, a 28% decline at the midpoint compared with 2025, excluding India's prior-year contribution.

 

The company now expects full-year Adjusted EBITDA to be between negative $124 million and negative $104 million, representing a 114% decline at the midpoint.

 

Adjusted earnings per diluted share are forecast to range from a loss of $3.66 to a loss of $3.50, a 221% decline at the midpoint.

 

The full-year free cash flow forecast has also been revised sharply downward to a negative $350 million to negative $150 million, including approximately $180 million in restructuring expenditure.

 

FMC said the reduction from its previous guidance was primarily driven by weaker demand and the financial consequences of the third-quarter commercial actions.

 

FMC's financial performance also reflects its ongoing efforts to exit its commercial business in India.

 

The company signed a definitive agreement in May 2026 to sell the business to Crystal Crop Protection Limited for $252 million, subject to customary adjustments for cash, debt and working capital. The transaction is expected to close during 2026.

 

India's operations continue to be included in reported GAAP financial results until the transaction is completed, although FMC excludes the business from its adjusted performance measures.

 

Meanwhile, the company is implementing Project Foundation, a broader restructuring programme aimed at reducing costs and optimising its organisational and operational structure.

 

Restructuring and other charges reached $480.6 million in the third quarter, compared with $294.5 million in the same period last year. These included non-cash asset write-offs, accelerated depreciation, employee separation costs and other restructuring expenses.

 

FMC ended September 2026 with cash and cash equivalents of $735.8 million, up from $584.5 million at the end of December 2025. Total debt stood at approximately $4.18 billion, including $3.95 billion in long-term debt.

 

The company is now banking on the completion of its commercial reset, improved channel inventory conditions and operational restructuring to stabilise its business in the coming quarters.

 

Its immediate challenge, however, remains reversing the sharp decline in demand while restoring sales momentum and profitability in markets where distributors are continuing to reduce inventory exposure.