FMC (FMC) Bank of America 2026 Global Agriculture and Materials Conference summary

Strategic direction and operational plans

• Two parallel strategies: Plan A focuses on a 2026 operational plan with asset divestitures, manufacturing footprint reshaping, post-patent strategies, and growth of four new active ingredients; Plan B explores broader strategic alternatives, including a potential sale or merger, with both plans running concurrently.

• Asset divestitures target $1 billion in debt reduction, with the sale of the India business and licensing of an advanced molecule expected to provide significant upfront payments, both processes well advanced.

• Licensing agreements for advanced molecules are structured to maximize market reach and EBITDA margin, with exclusivity in certain territories and crops, and focus on cost-plus royalty models.

• Retention of four new molecules is prioritized, with divestiture only considered under extreme circumstances; portfolio aims to rebalance from insecticides to a broader mix including herbicides, fungicides, and biologicals.

• Manufacturing cost reductions are central, targeting $150–$170 million in savings by shifting active ingredient production from Europe and North America to India and China, leveraging existing facilities and lower costs.

Market conditions and competitive landscape

• Prolonged downturn and aggressive generic competition have pressured prices and volumes, especially in Latin America and Asia; Europe remains the most stable market.

• Losses in volume are attributed to inability to match generic pricing, not market exits; competitiveness is being restored to capitalize on future market growth.

• Value-add formulations and advanced Rynaxypyr technologies are gaining share, with a shift toward high-concentration blends and ongoing registration of new combinations.

• Patent protection and brand strength are key defenses against generic competition, with active efforts to patent new formulations.

Financial outlook and capital structure

• 2026 guidance targets break-even free cash flow, with $130 million in restructuring spend; restructuring costs decline through 2027, improving EBITDA and free cash flow by 2028.

• Working capital productivity is expected to improve as business mix stabilizes and efficiency initiatives take hold.

• Asset sales and licensing proceeds are intended to pay down $1 billion in debt; $500 million notes mature in October, with adequate liquidity and a preference for a first-half bond market refinancing.