Executive Summary

Q3 2025 headline results were heavily distorted by India “held-for-sale” actions: GAAP revenue fell 49% to $0.54B, GAAP EPS was $(4.52), while non-GAAP performance was more resilient (Revenue ex-India $0.96B, Adjusted EBITDA $236M, Adjusted EPS $0.89) .
Against S&P Global consensus, Adjusted EPS modestly beat while revenue materially missed given India’s negative revenue impact; on a like-for-like basis (ex-India), revenue was still below expectations (details in Estimates Context) .
Guidance was cut across the board: FY25 revenue to $3.92–$4.02B, Adjusted EBITDA to $830–$870M, Adjusted EPS to $2.92–$3.14, and FCF to $(200)–$0M; Q4 outlook was reduced similarly. Quarterly dividend was slashed to $0.08 to prioritize deleveraging .
Near-term stock drivers/catalysts: clarity on India sale proceeds and timing, bank covenant amendment, execution of manufacturing footprint redesign, and Q4 collections/working capital trajectory; management highlighted persistent LatAm liquidity and generic pricing pressure as key headwinds .

What Went Well and What Went Wrong

What Went Well
- Adjusted profitability held up despite lower sales: Adjusted EBITDA rose 17% YoY to $236M; Adjusted EPS rose 30% YoY to $0.89, both above guidance midpoints .
- New active ingredients nearly doubled YoY and growth portfolio volumes increased mid-single digits, supporting a 2% total volume increase; FX was a 1% tailwind .
- Management initiated decisive cost/capital actions: dividend cut to $0.08, announced manufacturing footprint redesign to lower costs, and targeted Asia cost reductions post-India exit .
What Went Wrong
- India actions triggered significant one-time P&L impacts: ~$510M of charges (≈$282M commercial adjustments and ≈$227M impairment) and negative India revenue (≈$419M) to prepare the business for sale; GAAP net loss was $(569)M .
- Latin America underperformed (sales −8% YoY), driven by generic pricing pressure and customer liquidity/credit constraints in Brazil and Argentina; Asia ex-India also declined sharply (−47% YoY) .
- Free cash flow deteriorated (Q3 FCF $(233)M) due to working capital pressures and collection delays, prompting FY25 FCF guidance cut to $(200)–$0 and leverage concerns .

Financial Results

Headline quarterly performance (actuals)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue (GAAP, $USD Millions)	$791.4	$1,050.5	$542.2
Adjusted EBITDA ($USD Millions)	$119.7	$206.5	$236.1
Adjusted EPS ($)	$0.18	$0.69	$0.89
GAAP EPS (Diluted, $)	$(0.12)	$0.53	$(4.52)
GAAP Net Income (Loss) ($USD Millions)	$(15.5)	$66.7	$(568.6)
Cash from Operations ($USD Millions)	$(545.0)	$65.9	$(184.2)
Free Cash Flow ($USD Millions)	$(595.7)	$39.7	$(232.5)

Q3 2025 mix and operating KPIs

KPI	Q3 2025
Revenue ex-India (Non-GAAP, $USD Millions)	$961.3
Organic Revenue Change (YoY, ex-India and FX)	−11%
Like-for-Like Revenue Change (ex-India both periods)	−4%
Price Impact	−6% (half cost-plus adjustments; half competitive pressure)
Volume Impact	+2% (growth portfolio up mid-single digits)
FX Impact	+1% tailwind
Adjusted EBITDA Margin (approx.)	~25%

Regional trends (Q3 2025 YoY)

Region	Reported YoY Change	Ex-FX YoY Change
North America	+4%	—
Latin America	−8%	−9%
Asia (ex-India)	−47%	−46%
EMEA	+11%	+7%

Non-GAAP adjustments and India “held-for-sale” detail (Q3 2025)

Total India adjustment ≈$510M: ~$282M pre-sale commercial actions (product returns, pricing credits); ~~$227M impairment to fair value; India revenue was negative (~~$419M) .
India assets written down to ~$450M carrying value at 9/30/25 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue (ex-India in H2)	FY 2025	$4.08–$4.28B (ex-India)	$3.92–$4.02B	Lowered
Adjusted EBITDA	FY 2025	$870–$950M	$830–$870M	Lowered
Adjusted EPS	FY 2025	$3.26–$3.70	$2.92–$3.14	Lowered
Free Cash Flow	FY 2025	$200–$400M	$(200)–$0	Lowered
Revenue (ex-India)	Q4 2025	$1.24–$1.34B	$1.12–$1.22B	Lowered
Adjusted EBITDA	Q4 2025	$334–$374M	$265–$305M	Lowered
Adjusted EPS	Q4 2025	$1.62–$1.84	$1.14–$1.36	Lowered
Dividend (Quarterly)	Forward	$0.50 (prior practice; implied from cut magnitude)	$0.08 per share	Reduced
Effective Tax Rate (Adj)	FY 2025	—	12%–14%	Initiated/Updated
Interest Expense	FY 2025	—	$230–$240M	Updated

Note: Transcript references contain a minor inconsistency on Q4 EPS (“$1.40 to $1.36”); the press release and 8-K guide to $1.14–$1.36, which we use here .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
India commercial business (divestiture)	Intention to divest; H2 guidance to exclude India revenue	~$510M charges (commercial/impairment), negative India revenue; assets written down to ~$450M; strong buyer interest	Execution progressing; near-term financial drag
LatAm liquidity/credit	Route-to-market build in Brazil; Q1 LatAm +10% YoY with direct sales push	Sales −8% YoY; liquidity constraints in Brazil/Argentina led to tighter credit and lost volume	Deteriorating
Generic pricing pressure	Price down 3% in Q2; cost-plus adjustments; EMEA strength offset pricing	Price −6%; generics pressure in LatAm/Asia; core portfolio volume down	Intensifying
Manufacturing footprint redesign	Not a focus in Q1/Q2	Plan to exit high-cost AI/formulation plants; transition to lower-cost sources; Asia cost reductions	New structural lever
Tariffs/macro	Q1 embedded tariff headwind $15–$20M in guidance	Tariff uncertainty for 2026; tariffs affect cash early in supply chain	Ongoing risk
R&D/new AIs	Pipeline highlighted; Isoflex launches; growth portfolio high-single digit in Q2	New AIs nearly doubled sales; targeting $250M in new AI sales in 2025	Positive momentum
Brazil route-to-market	Additional RTM expected to aid H2	>300 new customers invoiced; contributions to Q4 volume	Scaling

Management Commentary

“Third quarter sales were down 49 percent versus prior year largely due to India actions. However, on a like-for-like basis, sales were down 4 percent, excluding India in both periods.” – Pierre Brondeau, Chairman & CEO .
“Our new active ingredients nearly doubled in the quarter and remain central to our strategy.” – Pierre Brondeau .
“We are confronting cost head-on by re-aligning our manufacturing footprint and reducing the size of our Asia operations following the India exit.” – Pierre Brondeau .
“All free cash flow generated beyond the roughly $40 million required annually to fund the reduced dividend will be directed to debt repayment until we return leverage to healthier investment grade levels.” – CFO Andrew Sandifer .

Q&A Highlights

Free cash flow shortfall vs prior guidance was driven primarily by weaker collections (lower sales, fewer cash sales, longer terms), India-related frictions (tariffs), restructuring cash, and higher cash interest; 2026 FCF outlook TBD with tariffs and restructuring as uncertainties .
India sale valuation: business written down to ~$450M fair value; strong inbound interest from local and some international buyers/sponsors .
Investment grade posture: metrics currently below IG; dividend cut and earlier hybrid issuance support deleveraging; year-end ~4x net debt/EBITDA expected, with multi-year path back to IG; exploring covenant amendments with banks .
Asia actions and portfolio: India is the only country slated for sale; Asia organization to be resized post-India; broader manufacturing cost reset underway to compete with generics .

Estimates Context

Consensus vs actual (Q3 2025)

Metric	S&P Global Consensus*	Actual Reported	Beat/Miss
Revenue ($USD Millions)	1,062.5*	542.2	Miss
Primary EPS ($)	0.855*	0.89	Beat

Context:

The revenue miss reflects India’s negative revenue impact from one-time commercial actions; on a like-for-like ex-India basis, revenue was $961.3M, still below consensus .
Company Adjusted EBITDA was $236.1M (non-GAAP), above guidance midpoint; note S&P’s EBITDA “actual” may reflect GAAP methodology including India charges, producing a markedly different figure than company-adjusted EBITDA .

Values retrieved from S&P Global.

Key Takeaways for Investors

Q3 headline numbers were skewed by India “held-for-sale” actions; underlying non-GAAP profitability was better than feared, but pricing pressure and LatAm liquidity remain material headwinds .
FY25 and Q4 guidance resets point to lower revenue, EBITDA, EPS, and FCF; focus shifts to liquidity, collections, and strict capital allocation (dividend cut) .
Structural cost actions (manufacturing footprint redesign, Asia resizing) are intended to restore competitiveness vs generics; execution risk exists but is a key medium-term lever .
India sale progress and proceeds (business written down to ~$450M) are a critical 6–12 month catalyst for balance sheet and narrative de-risking .
New AI pipeline and growth portfolio performance (nearly doubled new AI sales) are the core of the longer-term bull case; registration and commercialization timelines temper near-term P&L impact .
Monitoring list for Q4: collections/working capital release, LatAm pricing/credit dynamics, bank covenant amendment, and adherence to reduced guidance ranges .

Appendices

Additional Q3 details (from 8-K/press release)

India “held-for-sale” accounting breakdown: ~$282M commercial actions (includes ~$419M revenue charge, $(144)M COGS credit, ~$7M SG&A); ~$227M impairment; total ≈$510M; assets written down to ~$450M .
Balance sheet snapshot: Cash $498M; gross debt ≈$4.5B; net debt ≈$4.0B (per call); leverage vs covenant 4.94x vs 5.25x .
Regional dynamics: North America +4% YoY; EMEA +11% YoY; LatAm −8% YoY; Asia ex-India −47% YoY .

Leadership update (Q3 timing)

FMC announced President Ronaldo Pereira will depart effective Dec 15, 2025; advisory through transition .

FMC CORP (FMC)·Q3 2025 Earnings Summary