FMC to Revamp US Pricing Model as Channel Inventory Pressures Weigh on Q3 Outlook
16 October 2026, Philadelphia: FMC Corporation has announced plans to modify its selling and pricing model in the United States and reduce prices on selected products held by channel customers in key markets, as weaker-than-expected demand and elevated inventory levels weigh on its third-quarter 2026 financial outlook.
The agricultural sciences company now expects third-quarter revenue of $65 million to $125 million and adjusted EBITDA of negative $565 million to negative $510 million. The estimates include an expected impact of $625 million to $675 million from commercial actions to lower prices on selected products in key markets and revise its US selling and pricing structure.
FMC Chairman, CEO and President Pierre Brondeau said demand from channel customers was weaker than anticipated, reflecting challenging market conditions and elevated inventories of higher-priced products. These inventory levels have constrained product movement and reduced replenishment demand.
“We have addressed this issue incrementally over several quarters, but under current market conditions, we determined that more comprehensive actions are necessary,” Brondeau said.
FMC to Reduce Price Gaps and Improve Channel Inventory Movement
FMC said distributors in key markets are seeking to maintain historically low inventory levels. Although the company made progress in reducing channel inventory volumes during 2025, certain higher-priced products continue to increase the overall value of inventory held by some customers.
The company attributed the pressure partly to rapid market price declines, driven in part by increased generic competition. The resulting gap between the value of existing channel inventory and current market prices has restricted product movement to growers.
To address the situation, FMC will implement comprehensive commercial measures in Brazil, Argentina, the United States and Canada to lower the prices of selected products held by channel customers.
In the United States, the company will also significantly reduce the gap between gross and net prices. Its existing model relies on higher gross prices combined with rebates. The revised approach is intended to simplify customer pricing, improve channel inventory conditions and align prices more closely with prevailing market realities.
FMC expects the measures to ease constraints on the movement of products through distributors to growers and support future replenishment demand.
Company Targets Improved Competitiveness by 2027
Brondeau said the commercial measures, alongside the company’s operational priorities for 2026, are expected to strengthen FMC’s competitiveness and support its longer-term transformation.
The company believes addressing channel inventory and pricing challenges will help position it to operate at its full potential in 2027 and 2028.
FMC said the latest figures are preliminary. It will provide further details on its third-quarter performance and updated 2026 financial outlook when it reports earnings on October 29, 2026. The company also plans to share preliminary expectations for 2027 and 2028 during its October 30 earnings call.
FMC expects to remain compliant with its financial covenants as of September 30, 2026, but intends to discuss potential further covenant modifications with its banking group over the next year to provide greater flexibility while implementing the commercial measures.
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