FMC Forecasts $20M Tariff Costs as Q4 Sales Fall 11%
In Q4 2025, FMC reported sales of $1.08 billion (-11% YoY), adjusted EBITDA of $280 million (-17%) and EPS of $1.20 (-33%). For 2026, it projects full-year sales of $3.6–3.8 billion, adjusted EBITDA of $670–730 million, about $20 million of tariff headwinds in Q1, and plans over $1 billion in debt reduction to end the year with net debt near $3.5 billion.
1. Q4 2025 Financial Results
FMC reported fourth-quarter sales of $1.08 billion, down 11% year over year, with adjusted EBITDA of $280 million, a 17% decline, and adjusted EPS of $1.20, down 33%. Weak pricing in core insecticides and herbicides contributed to the revenue shortfall and margin compression.
2. 2026 Guidance and Tariff Headwinds
The company projects full-year 2026 sales of $3.6–3.8 billion and adjusted EBITDA of $670–730 million. It expects first-quarter sales to decline about 5% and EBITDA to drop nearly 60% year over year, partly due to approximately $20 million of tariff-related costs concentrated in Q1.
3. Rating Downgrade to Junk Status
Moody’s cut FMC’s senior unsecured rating from Baa3 to Ba1 and assigned a negative outlook, moving the company into junk territory. The downgrade reflects concerns over patent expirations of its Rynaxypyr insect-control product in multiple markets.
4. Debt Reduction and Leverage Targets
Management aims to reduce debt by more than $1 billion through asset sales and licensing agreements, targeting net debt of around $3.5 billion by year-end 2026. This plan is expected to lower leverage by about half a turn and strengthen the balance sheet.