FMC Corporation announced on December 12, 2025 that its board of directors has reduced the regular quarterly dividend to 8 cents per share, payable January 15, 2026. The cut represents an 86‑percent decline from the previous dividend of 58 cents, not the 15‑percent reduction originally reported.
The dividend reduction comes amid a sharp deterioration in the company’s balance sheet. Net debt/EBITDA has surged from 2.1x in 2022 to a peak of 20.6x in the most recent quarter, and total debt stood at $4.5 billion as of September 2025. Credit rating agencies Fitch and S&P have downgraded FMC to BB+, underscoring the growing risk profile and the need to conserve cash.
Management explained that the dividend cut is part of a broader restructuring plan aimed at restoring financial flexibility. CEO Pierre Brondeau said the company is “confronting cost head‑on by realigning our manufacturing footprint and reducing the size of our Asia operations following the India exit.” The company also announced a $400 million reduction in free cash flow, further tightening liquidity.
Revenue in Q3 2025 fell 49% year‑over‑year to $542 million, largely due to one‑time commercial actions related to the sale of its India business. Excluding India, revenue was $961 million, down 10% organically, driven by lower pricing. GAAP net loss widened to $4.52 per diluted share, a significant deterioration from the prior year. Adjusted EBITDA rose 17% YoY, but the company lowered its full‑year 2025 guidance for revenue, adjusted EBITDA, adjusted EPS, and free cash flow, signaling caution about near‑term demand.
Analysts reacted strongly to the dividend cut and the downgraded outlook. Barclays downgraded FMC to “Equal Weight” from “Overweight” and cut its price target from $48 to $22. S&P Global Ratings lowered the company to BB+ from investment grade, citing persistent weak credit metrics. The market’s reaction reflected concerns about the company’s ability to service debt, the impact of generic competition, and the looming patent cliffs for key products.
For long‑term investors, the dividend cut and the sharp rise in debt ratios indicate a shift in FMC’s risk profile. The company’s focus on cost discipline and strategic divestitures may stabilize cash flow, but the high leverage and competitive pressures suggest that the firm’s valuation will remain under pressure until it can demonstrate a credible path to debt reduction and revenue recovery.
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