Agriculture Stock FMC Corporation (NYSE:FMC) Lands Top Percentage Loser NYSE As Farmer Sentiment Falls Due To Costs

(MENAFN- Investor Ideas) newswire) a trusted platform for investing ideas including agriculture stocks issues a news and trading alert for FMC Corporation (NYSE:FMC ).

The stock makes the NYSE top percentage loser this morning, currently trading at $5.51 -2.59 (-31.95%).

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Why did the stock fall? - Market conditions - " Under current market conditions, distributors are seeking to operate with the lowest inventory levels FMC has experienced."

FMC today updated its expectations for third quarter 2026. Revenue¹is now expected to be between $65 million and $125 million with expected Adjusted EBITDA²of negative $565 million to negative $510 million. These estimates include an estimated $625 million to $675 million impact related to commercial actions to lower the price of select products held by channel customers in key markets and to modify the selling and pricing model in the United States.

Overview of Commercial Actions

The critical commercial issue facing FMC is slower-than-expected demand from channel customers in key markets. Under current market conditions, distributors are seeking to operate with the lowest inventory levels FMC has experienced. Although the company made meaningful progress reducing channel inventory volumes in 2025, certain higher-priced FMC products are increasing the overall value of FMC inventory held by some customers. These products entered the channel under different cost structures, intellectual property positions and competitive conditions. 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, limiting movement of those products to growers.

The company views its current pricing as competitive and expects ongoing manufacturing changes to further support competitive pricing. To accelerate product movement and support replenishment demand, FMC is taking two significant actions.

First, the company is taking comprehensive commercial actions in Brazil, Argentina, the United States and Canada to lower the price of select products held by channel customers.

Second, FMC will modify its selling and pricing model in the United States. Historically, products have been sold using a high gross-price and high-rebate structure. FMC intends to significantly reduce the gap between gross and net pricing, simplifying customer economics, improving channel health and better aligning pricing with current market realities.

Together, these two actions are expected to remove a considerable constraint on the movement of FMC products through the channel to growers and to support future replenishment demand from channel customers.

Information in this news release is preliminary and intended to provide an update to third-quarter expectations. The company will provide more information regarding its quarter results and its 2026 financial outlook when it reports third-quarter earnings on October 29, 2026. In addition, the company will share its preliminary expectations for 2027 and 2028 on its earnings call on October 30, 2026.

While the company expects to be in compliance with covenants at September 30, 2026, the company intends to engage in discussions with its bank group on potential further modifications to its covenants over the next year to provide greater flexibility as the commercial actions described above are implemented.

FMC Corporation is a global agricultural sciences company dedicated to helping growers produce food, feed, fiber and fuel for an expanding world population while adapting to a changing environment. FMC's innovative crop protection solutions - including biologicals, crop nutrition, digital and precision agriculture - enable growers and crop advisers to address their toughest challenges economically while protecting the environment. FMC is committed to discovering new herbicide, insecticide and fungicide active ingredients, product formulations and pioneering technologies that are consistently better for the planet.

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