FMC India Commercial Business: A Calculated Strategic Exit

1. Strategic Background
As of July 2025, FMC Corporation announced its intent to divest its India commercial business, marking a decisive pivot in response to structural market challenges in the region. This aligns with a broader strategic shift to streamline operations and prioritize higher-margin global markets.(reuters.com)

2. Q2 2025 Financial Overview
– Revenue: $1.05 billion, up 1% year-over-year, with 2% organic growth.(investors.fmc.com)
– GAAP Net Income: Slid 77%, largely due to the absence of prior-year tax incentives.(investors.fmc.com)
– Adjusted EBITDA: $207 million (+2% YoY).
– Adjusted EPS: $0.69, a 10% increase.(igrownews.com)
– Cash from Operations: $66 million (−77%), with Free Cash Flow plummeting to $40 million (−86%).(igrownews.com)

3. India Performance – The Tipping Point
Asia sales declined 17%, largely due to weak volume and pricing issues in India tied to ongoing channel destocking. This sustained slowdown in demand and competitiveness drove the company’s decision.(investors.fmc.com)

4. Exit Mechanics & Ongoing Market Presence
FMC’s Board approved the divestment, with the India commercial business to be labeled “held for sale” beginning Q3 2025.(indianchemicalnews.com)
Notably, FMC will retain its manufacturing operations in India and establish a supply agreement with the future buyer—ensuring continued access to its portfolio, including diamide technologies, active ingredients, and biologicals.(indianchemicalnews.com)

5. Outlook & Adjusted Projections
– Full-Year 2025 Revenue (Excluding India): $4.08 billion to $4.28 billion (−2% midpoint YoY).
– Adjusted EBITDA: $870–950 million.
– Adjusted EPS: $3.26–3.70.(investors.fmc.com)

Quarterly outlook (excluding India):
– Q3 2025 Revenue: $1.00–1.10 billion (−1% midpoint).
– Adjusted EBITDA: $210–250 million (+14% midpoint).
– Adjusted EPS: $0.78–0.98 (+28% midpoint).
– Q4 2025 Revenue: $1.24–1.34 billion (+5%).
– Adjusted EBITDA: $334–374 million (+4%).
– Adjusted EPS: $1.62–1.84 (−3%, due to prior-year tax anomalies).(prnewswire.com, investors.fmc.com)

6. Strategic Implications
This maneuver positions FMC to reduce exposure to underperforming, volatile markets while preserving supply chain and intellectual property advantages. Observers note that this is part of a broader trend of global agribusinesses redefining market engagement in price-sensitive regions.(seekingalpha.com)

Summary Table