FMC shares sank 25% in late trading Wednesday and kept sliding down more than 4% Thursday morning, after weak third-quarter results offered little sign of a near-term rebound.
The company lowered its full-year cash flow forecast, shifting from a positive outlook of US$ 200 million to US$ 400 million in the second quarter to a more cautious projection of breaking even or, at worst, burning $200 million in cash.
“The cut to free cash flow is notable given that 2025 EBITDA guidance was lowered by only $60 million at the midpoint,” wrote Morgan Stanley analysts Vincent Andrews and Justin Pellegrino.
FMC cut its EBITDA forecast to a range of US$ 830 million to US$ 870 million, from a prior range of US$ 870 million to US$ 950 million.
The cut in EBITDA stems directly from weaker revenue expectations ahead. FMC’s top line plunged 49% in the third quarter, to US$ 542 milion, and the company signaled that at least another decline is already baked in as it winds down its operations in India.
Weak top line results in third quarter are largely driven by product returns and price adjustments in India — measures the company said were aimed at cleaning up its local balance sheet ahead of a potential sale. These actions had a $282 million negative impact on revenue for the quarter.
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According to CEO Pierre Brondeau, the adjustments are one-off items that should reduce the risk of additional tax charges and “position the business for stronger results going forward.”
Even excluding the Indian write-down, FMC’s broader performance was weak. Revenue excluding India totaled $961 million, down 10% year-over-year. Analysts had expected closer to $1 billion.
The company cited supplier contract adjustments and intensified price pressure from generic competitors in Asia and Latin America as key factors behind the decline.
In Latin America — FMC’s largest regional division by revenue, led by its Brazilian operations — sales dropped 8%.
“Beyond the pressure from generics, low client liquidity caused credit restrictions in Brazil and Argentina, further weighing on growth,” Brondeau said in a statement.
At the bottom line, FMC reported a $569 million net loss, compared with a $66 million profit a year earlier — a result largely tied to accounting impacts from its Indian operations.
During the quarter, the company booked a $227 million impairment related to the revaluation of its India business, now valued at $450 million. Across the income statement, the Indian operations contributed roughly $510 million in combined charges and write-downs.
