FMC

FMC is a single-segment ag-chem company in a multi-year downturn, and the numbers show deterioration that goes well beyond a one-time event. Revenue has fallen every year from $5.80B (FY2022) to $3.47B (FY2025), an 18.3% drop in the latest year alone, and FY2025 swung to a -$2.24B net loss (-$17.88 diluted EPS) from $341M of profit a year earlier. Management attributes part of the damage to the India business it moved to held-for-sale in mid-2025, recording $521.7M of charges (a $194.8M asset impairment plus ~$320M of one-time commercial actions on product returns and pricing). But that explains less than a third of the -$1.63B operating loss; even normalizing out India, the core is deeply unprofitable, implying additional large write-downs and a weak underlying business — gross margin held at 37%, yet operating margin was -47%.

The balance sheet and cash flow are the real problem. Operating cash flow was -$6.2M — essentially zero — while the company still paid $291M in dividends and $96.3M of capex, meaning the payout is being funded by cash and debt, not earnings. That dividend looks unsustainable and is a prime candidate to be cut. Total debt sits at ~$3.36B ($2.77B long-term + $586M current) against $585M cash and $2.07B of equity (down 53.8% YoY), and the current portion of debt jumped 669% to $586M — a near-term refinancing wall into a weak operating backdrop. ROE of -108% reflects equity being burned by the loss.