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1. Company Snapshot

1.a. Company Description

FMC 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.

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1.b. Last Insights on FMC

FMC Corporation's recent performance has been influenced by a combination of factors. The company's Q4 2025 earnings report revealed a revenue decline of 11.5% and an adjusted EPS drop of 33%, primarily due to lower prices. Management's 2026 guidance anticipates further revenue and profit declines. Additionally, the company has initiated a strategic review, including the exploration of options such as a potential sale. FMC's Board of Directors has authorized this review to unlock shareholder value and position the company's growth and core portfolios for long-term success.

1.c. Company Highlights

2. FMC Corporation's 2025 Earnings: A Challenging Year with a Bright Outlook

FMC Corporation reported fourth-quarter 2025 sales of $1.08 billion, an 11% decline year-over-year, or 5% on a like-for-like basis excluding India. The adjusted EBITDA for the quarter was $280 million, down 17% versus the prior year quarter. The actual EPS came out at $1.2, slightly below estimates of $1.21. For the full year 2026, the company expects sales to be between $3.6 billion and $3.8 billion, down 5% at the midpoint versus the prior year, with adjusted EBITDA projected to be between $670 million and $730 million.

Publication Date: Feb -11

📋 Highlights
  • Debt Reduction Target:: Aiming to pay down over $1 billion of debt through asset sales and licensing agreements by 2026, including the India commercial business.
  • Cost-Cutting Plan:: Reducing non-diamide product costs by at least 35% by 2027 to improve competitiveness.
  • New Active Ingredients Growth:: Projecting $300–400 million in sales for new active ingredients in 2026, scaling to over $2 billion by 2035.
  • 2026 Guidance Decline:: Full-year sales guidance of $3.6–3.8 billion (5% drop at midpoint) and adjusted EBITDA of $670–730 million.
  • Q4 Performance Drop:: Fourth-quarter sales fell 11% YoY to $1.08 billion, with adjusted EBITDA declining 17% to $280 million.

Operational Challenges and Strategic Priorities

The company's operational priorities for 2026 include strengthening the balance sheet, improving the competitiveness of its core portfolio, managing a post-patent Rynaxypyr strategy, and driving growth of new active ingredients. FMC expects to pay down over $1 billion of debt through asset sales and licensing agreements, including the sale of its India commercial business. As Andrew Sandifer, Executive Vice President and Chief Financial Officer, mentioned, "We expect a significant reduction in sales due to generic offerings, but our branded Rynaxypyr business will continue to perform well."

New Active Ingredients Driving Growth

The company's new active ingredients are expected to drive growth, with sales estimated to be between $300 million and $400 million in 2026, and expected to exceed $2 billion by 2035. The R&D pipeline of new active ingredients is a significant competitive advantage for FMC, with expected registrations for important new molecules, including fluindapyr fungicide and isoflex, in 2026 and 2027.

Valuation and Outlook

With a P/E Ratio of -0.9 and an EV/EBITDA of -3.21, the market is pricing in significant challenges for the company. However, with a Dividend Yield of 11.37%, investors are being rewarded for taking on the risk. As the company navigates its operational priorities and explores strategic alternatives, including a potential sale, the outlook for 2026 and beyond appears to be improving, with expected mid-teens EBITDA growth in 2027 and 2028.

3. NewsRoom

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FMC Corporation CEO Pierre Brondeau and CFO Andrew Sandifer to speak at Bank of America Global Agriculture and Materials Conference

Feb -11

Source: prnewswire.com

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New Strong Sell Stocks for February 10th

Feb -10

Source: zacks.com

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FMC (NYSE:FMC) Shares Gap Down Following Weak Earnings

Feb -06

Source: defenseworld.net

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Why FMC Corporation Plunged Today

Feb -05

Source: fool.com

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FMC Corporation (FMC) Q4 2025 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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FMC's Q4 Earnings and Revenues Miss Estimates on Lower Prices

Feb -05

Source: zacks.com

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FMC Corporation Stock Is Trending Overnight – Here's What You Should Know

Feb -05

Source: feeds.benzinga.com

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FMC (FMC) Misses Q4 Earnings and Revenue Estimates

Feb -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.47%)

6. Segments

Insecticides

Expected Growth: 6.5%

FMC Corporation's insecticides segment growth of 6.5% is driven by increasing demand for crop protection products, particularly in Latin America and Asia. Rising adoption of precision agriculture, growing need to manage pest resistance, and favorable government regulations supporting sustainable agriculture practices also contribute to this growth.

Herbicides

Expected Growth: 6.2%

FMC Corporation's Herbicides segment growth of 6.2% is driven by increasing adoption of precision farming, rising demand for crop protection products, and expansion into emerging markets. Additionally, the company's strategic acquisitions and investments in R&D have enhanced its product portfolio, contributing to the growth.

Fungicides

Expected Growth: 6.8%

FMC Corporation's Fungicides segment growth of 6.8% is driven by increasing demand for crop protection products, particularly in Latin America and Asia. Rising adoption of precision agriculture, growing concerns over food security, and favorable weather conditions also contribute to this growth. Additionally, FMC's strong product portfolio, including brands like Rynaxypyr and Cyazypyr, and strategic partnerships with distributors and farmers support this upward trend.

Plant Health

Expected Growth: 7.2%

FMC Corporation's Plant Health segment growth of 7.2% is driven by increasing adoption of precision agriculture, rising demand for sustainable crop protection solutions, and expansion into emerging markets. Additionally, the company's strategic investments in R&D, digital platforms, and partnerships with key industry players have contributed to its growth momentum.

Other

Expected Growth: 6.9%

FMC Corporation's 6.9% growth in the 'Other' segment is driven by increasing demand for its lithium derivatives used in energy storage and electric vehicles, as well as strong sales of its omega-3 fatty acids for pharmaceutical and nutritional applications.

7. Detailed Products

Herbicides

FMC Corporation offers a range of herbicides that help farmers control weeds and protect their crops. These products are designed to be effective, efficient, and environmentally friendly.

Insecticides

FMC Corporation's insecticides are designed to control pests and protect crops from damage. These products are formulated to be safe for the environment and human consumption.

Fungicides

FMC Corporation's fungicides are used to control fungal diseases in crops. These products are designed to be effective and environmentally friendly.

Pest Control Solutions

FMC Corporation's pest control solutions are designed to control pests in urban and rural areas. These products are formulated to be safe for humans and the environment.

Specialty Algaecides

FMC Corporation's specialty algaecides are used to control algae growth in water treatment systems, industrial processes, and recreational waters.

Lithium-based Products

FMC Corporation's lithium-based products are used in a range of applications, including energy storage, ceramics, and pharmaceuticals.

8. FMC Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for FMC Corporation is medium due to the presence of alternative products and services in the market, but the company's strong brand reputation and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low for FMC Corporation due to the company's diversified product portfolio and strong distribution network, which reduces the dependence on individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for FMC Corporation due to the presence of multiple suppliers in the market, but the company's large scale of operations and long-term contracts with suppliers mitigate this threat to some extent.

Threat Of New Entrants

The threat of new entrants is low for FMC Corporation due to the high barriers to entry in the agricultural chemicals and specialty chemicals industries, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for FMC Corporation due to the presence of several established players in the market, including Syngenta, Bayer, and BASF, which leads to intense competition and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.44%
Debt Cost 3.95%
Equity Weight 52.56%
Equity Cost 8.37%
WACC 6.27%
Leverage 90.28%

11. Quality Control: FMC Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CF Industries

A-Score: 5.9/10

Value: 6.8

Growth: 5.8

Quality: 7.1

Yield: 5.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

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Mosaic

A-Score: 5.7/10

Value: 9.1

Growth: 3.8

Quality: 5.0

Yield: 6.0

Momentum: 4.5

Volatility: 5.7

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Scotts Miracle-Gro

A-Score: 5.1/10

Value: 6.2

Growth: 4.1

Quality: 4.7

Yield: 7.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

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FMC

A-Score: 4.5/10

Value: 9.1

Growth: 3.6

Quality: 4.3

Yield: 8.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Summit Materials

A-Score: 4.4/10

Value: 2.1

Growth: 5.4

Quality: 4.4

Yield: 1.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Westlake

A-Score: 4.1/10

Value: 7.7

Growth: 4.0

Quality: 3.3

Yield: 4.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.48$

Current Price

14.48$

Potential

-0.00%

Expected Cash-Flows