FMC plunges 24% as board explores potential sale after earnings miss
Agricultural chemicals maker initiates strategic review amid 49% revenue decline and mounting operating losses
FMC Corporation shares collapsed 24% on Wednesday after the agricultural chemicals maker announced its board authorized a strategic review that could include selling the company, releasing the news alongside dismal fourth-quarter results that revealed a substantial net loss from continuing operations.
The Philadelphia-based manufacturer saw its stock sink to $12.87, leaving shares just above their 52-week low of $12.10 and wiping out more than 70% of the company's value since its April peak of $43.66. The market capitalization now stands at roughly $2 billion, a stunning decline for what was once a $9.5 billion enterprise less than a year ago.
According to a press release detailing the company's 2026 priorities, the board has "authorized the exploration of strategic alternatives, which may include, but are not limited to, a sale of the company." The company emphasized the review is in its preliminary stages and there can be no assurance any transaction will occur.
The announcement accompanied fourth-quarter financial results that painted a picture of a business in rapid deterioration. FMC reported a net loss from continuing operations, with quarterly revenue declining 49.1% year-over-year and earnings per share showing a negative $3.85 for the trailing twelve months. The company's operating margin has turned negative at -18.8%, while return on equity sits at -11.5%.
As reported by MarketWatch, the strategic review announcement triggered the steep selloff as investors grappled with the dual realities of deteriorating fundamentals and uncertainty about the company's future ownership structure.
FMC's struggles reflect broader challenges in the agricultural chemicals sector, where farmers have faced persistent pressure from rising input costs and commodity price volatility. The company, which specializes in crop protection products and integrated agricultural solutions across more than 50 countries, has been unable to shield itself from these headwinds despite its diversified global footprint.
Analysts maintain a mixed outlook on the stock despite the plunge. The consensus target price stands at $21.09, representing potential upside of more than 60% from current levels, though ratings are evenly split with six buy recommendations versus 13 hold ratings and one strong sell. The forward price-to-earnings ratio of 7.06 suggests the market has already priced in significant distress.
The strategic review creates an unusual dynamic for shareholders. While a potential sale could unlock value if a strategic buyer emerges willing to pay a premium to the depressed share price, the company explicitly warned there is no guarantee any transaction will materialize. In the meantime, operational challenges continue to mount, with trailing twelve-month revenue of $3.6 billion representing a substantial decline from prior periods.
Institutional investors control 90.1% of outstanding shares, meaning any sale process would require buy-in from major holders who have watched their positions decimate in value. The company pays a dividend of $2.32 per share, yielding 14.8% at current prices, though sustainability of that payout given the operating losses remains a key concern for analysts.
For investors, the coming weeks will bring clarity—or potentially more uncertainty—as the strategic review process unfolds. Potential buyers could include larger chemical companies seeking geographic expansion or private equity firms attracted by the distressed valuation. However, any acquirer would need to navigate the significant operational challenges that have driven FMC's shares to these depths, particularly the collapsing revenue trajectory and negative earnings performance.
The company's next scheduled dividend payment is set for January 15, 2026, which may provide a test of management's confidence in cash flow generation as the strategic alternatives process continues. Until then, FMC shares remain in limbo—too cheap for some to ignore but too fundamentally broken for others to touch without greater clarity on the path forward.