FMC reported fourth-quarter revenue of $1.08 billion, down 12% year-over-year, failing to meet consensus estimates. Adjusted earnings per share declined 33% to $1.20, driven by an 11.5% drop in average selling prices and a 1% volume contraction. Excluding the India business held for sale, organic revenue fell 13%, while adjusted EBITDA slipped 8% on favorable cost controls and a modest foreign-exchange tailwind. The company maintained a 26% EBITDA margin despite intensified competition in Latin America and post-patent price adjustments for its flagship diamide portfolio.

Management projected full-year 2026 revenue of $3.60–$3.80 billion, implying a 5% decline at the midpoint versus last year. Adjusted EBITDA guidance of $670–$730 million reflects a 17% year-over-year drop, driven by mid-single-digit price headwinds, full-year tariff charges of approximately $20 million and lower legacy product volumes. Adjusted EPS is expected to range from $1.63 to $1.89, down 41% versus 2025, while first-quarter EBITDA is guided to $45–$55 million, a 58% contraction compared with the year-ago period.

The Board of Directors has authorized an exploration of strategic alternatives, including but not limited to the potential sale of the company. This preliminary review is intended to unlock shareholder value by leveraging FMC’s pipeline of four newly commercialized active ingredients—Isoflex®, fluindapyr, Dodhylex® and rimisoxafen—which together generated approximately $200 million in sales last year. The process remains in its early stages, and there is no assurance of a definitive transaction at this time.

Investors face near-term pressure given the combination of weaker pricing, tariff headwinds and earnings downgrades. FMC plans to strengthen its balance sheet by repaying $1 billion of debt through asset divestitures and licensing agreements, including the sale of its India commercial business. The company expects free cash flow to be neutral to slightly negative for 2026 as working capital dynamics normalize. Market watchers will monitor progress on the strategic review and execution of portfolio optimization steps as key catalysts for a potential re-rating.