Q3 2025 FMC Corp Earnings Call

October 30, 2025

Please signal a conference specialist by pressing the star key followed by zero. After today's prepared remarks, there will be an opportunity to ask questions.

Operator: and listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's prepared remarks, there will be an opportunity to ask questions. To be placed in the Q&A, please press the star key, then one at any time. If you are using a speakerphone, please pick up your headset before pressing the keys. I would now like to turn the conference over to Mr. Curt Brooks, Director of Investor Relations for FMC Corporation. Please go ahead.

Placed in the Q&A.

Please press the star key.

Then one at any time, if you are using a speakerphone. Please pick up your headset.

Pressing the keys I would now like to turn the conference over to Mr. Garth Brooks director of Investor Relations for FMC Corporation. Please go ahead.

Good morning, everyone and welcome to FMC Corporation's third quarter earnings call.

Curt Brooks: Good morning, everyone, and welcome to FMC Corporation's Third Quarter Earnings Call. Joining me are Pierre Brondeau, Chairman and Chief Executive Officer, and Andrew Sandifer, Executive Vice President and Chief Financial Officer. Today, Pierre will provide an overview of our third quarter performance as well as an outlook for the fourth quarter. Andrew will provide an overview of select financial results. After our prepared remarks, we will take questions. Our earnings release and today's slide presentation are available on our website, and the prepared remarks from today's discussion will be made available after the call. Let me remind you that today's presentation and discussion will include forward-looking statements that are subject to various risks and uncertainties concerning specific factors, including but not limited to, those factors identified in our earnings release and in our filings with the Securities and Exchange Commission.

Joining me up here, Brian Dow Chairman, and Chief Executive Officer, and Andrew Sandifer, Executive Vice President and Chief Financial Officer.

<unk> will provide an overview of our third quarter performance as well as an outlook for the fourth quarter.

Andrew will provide an overview of select financial results.

After our prepared remarks, we will take questions.

Our earnings release, and today's slide presentation are available on our website and the prepared remarks from today's discussion will be made available after the call.

Let me remind you that today's presentation and discussion will include forward looking statements that are subject to various risks and uncertainties concerning specific factors, including but not limited to those factors identified in our earnings release and in our filings with the Securities and Exchange Commission.

Information presented represents our best judgment based on today's understanding <unk>.

Curt Brooks: Information presented represents our best judgments based on today's understanding. Actual results may vary based on these risks and uncertainties. Today's discussion and the supporting materials will include references to adjusted EPS, adjusted EBITDA, free cash flow, organic revenue growth, and revenue excluding India, all of which are non-GAAP financial measures. Please note that as used in today's discussion, earnings means adjusted earnings and EBITDA means adjusted EBITDA. A reconciliation and definition of these terms, as well as other non-GAAP financial terms to which we may refer during today's conference call, are provided on our website. With that, I will now turn the call over to Pierre.

Actual results May vary based on these risks and uncertainties.

Today's discussion and the supporting materials will include references to adjusted EPS adjusted EBITDA free cash flow organic revenue growth and revenue, excluding India, all of which are non-GAAP financial measures.

Please note that is used in today's discussion earnings means adjusted earnings and EBITDA means adjusted EBITDA.

A reconciliation and definition of these terms as well as other non-GAAP financial terms to which we may refer during today's conference call are provided on our website.

I will now turn the call over to Pierre.

Thanks, Kurt and good morning, everyone.

Pierre Brondeau: Thanks, Curt, and good morning, everyone. Before we get into the details of our Q3 results, I want to acknowledge that our sales this quarter were below our expectation. Two factors led to these results. The first is constrained credit for our customers in Brazil and Argentina as a result of low liquidity. The second is pricing pressure from generics, mainly in Latin America. These issues became apparent as we neared the end of the quarter and as the planting season was getting underway in Latin America. We expect both dynamics to persist in the Q4. Consequently, we're accelerating planned cost actions similar to what we did with the next year, in order to keep a less differentiated core portfolio product competitive. Our belief remains that being a pure-play agricultural sciences company is the right focus, and we have a strong pipeline of innovative technologies to support that.

Before we get into the details of our third quarter results.

All age.

Sales this quarter.

We're below our expectation.

Two factors led to these results.

The first is constrained credit for our consumers in Brazil, and Argentina as a result of all liquidity.

Simone is pricing pressure from generics, mainly in Latin America.

These issues became apparent as we neared the end of the quarter.

And it has the planting season was getting underway in Latin America.

We expect both dynamics to persist in the fourth quarter.

Consequently, we're accelerating planned cost actions similar to what we did was an ex appear in order to keep our less differentiated core portfolio of products competitive.

Our belief remains steady.

That being a pure play agricultural Sciences company is the right focus.

And we have a strong pipeline of innovative technologies to support that.

Slide three whose side.

Provide details on our third quarter performance.

Pierre Brondeau: Slides three through five provide details on our Q3 performance. We reported Q3 GAAP net sales of $542 million, which is 49% lower than prior year. The vast majority of the year-over-year decline is attributed to significant one-time actions taken in India to better position the commercial business for sale. During our last earnings calls, I shared that we are now operating our business in India differently. Following the designation of that country's commercial business as held for sale, we've also discussed elevated inventory in the India channel many times. Over the course of the Q3, we made the decision to take back a substantial amount of channel inventory in the form of returns. To further clear inventory from the channel, we offered pricing credits to distributors, encouraging faster movement of products.

We reported third quarter GAAP net sales of $542 million.

Which is 49% lower than prior year.

The vast majority.

The year over year decline is attributed to significant onetime actions taken in India to better position the commercial business for sale.

During our last earning calls.

That well known operating a business in India differently.

Following the designation.

Of that country's commercial business as held for sale.

We've also discussed elevated inventory in India channel many times.

Over the course of the third quarter, we made the decision.

To take back a substantial amount of channel inventory in the form of returns.

To further clear inventory from the channel we have heard we offered.

Pricing credit to distributors encouraging faster movement of products.

These actions are intended to support the sale over <unk> commercial business.

Pierre Brondeau: These actions are intended to support the sale of our India commercial business. The process is moving forward smoothly, with strong interest and a high volume of inbound inquiries. Excluding India from current and prior year sales, Q3 revenue of $961 million, down 4% year-over-year on a like-for-like basis. This was driven by a 6% price decline, half from adjustments in certain cost-plus contracts with specific diamide partners and half from intensified competition in the market. Despite increased competitiveness, volume grew 2%. The company's growth portfolio increased by mid-single-digit percent, with sales of new active ingredients nearly doubling versus prior year. This is evidence of the strong demand for this technology. We remain confident in reaching a target of $250 million of new active ingredient sales by the end of the year. Overall, sales were below our expectation.

The process is moving forward smoothly.

Strong interest in a high volume of inbound inquiries.

Excluding India.

From current and prior year's sales.

Third quarter revenue of $961 million.

Down 4% year on year on a like for like basis.

This was driven by a 6% price decline.

Half from adjustments in certain cost plus contracts.

With specific day and night partners.

Yes.

From intensified competition in the market.

Despite increased competitiveness.

Volume grew 2%.

The company's growth portfolio increased by mid single digit percent.

Sales of new active ingredients nearly doubling versus prior year.

This is evidence of the strong demand for these technologies.

We remain confident in reaching our target of $250 million of new active ingredient sales by the end of the year.

Overall.

Sales were below our expectation.

Much of the shortfall was driven by Latin America.

Pierre Brondeau: Much of the shortfall was driven by Latin America, where our sales lagged prior year by 8%. The market landscape in that region is more challenging than we expected, due to the two factors I touched on earlier. Low liquidity, leading to constrained credit for our customers in Brazil and Argentina, and pressure from generics. About half of our sales shortfall in Latin America was driven by an unwillingness on our part to sell full volumes to customers with credit risk. The other half was due to lost sales, mainly to mega farmers, where we were not willing to lower price to levels offered by generics for off-pattern products. Generics have always been active in this region, but their impact is increasing in large part because of the favorable registration environment.

Where our sales lagged the prior year by 8%.

The market landscape in that region is more challenging than we expected.

Due to the two factors I touched on earlier.

Low liquidity, leading to constrain treat for our customers in Brazil, and Argentina and pressure from generics.

About half of our sales shortfall Latam Latin America.

Was driven by an unwillingness on our part to sell full volumes to customer with credit risk.

The other half was due to lost sales.

Mainly to Mega summers.

When we were not willing to lower price to levels offered by generics.

Of patent product.

Generics have always been active in this region.

Their impact is increasing in large part because of the favorable registration environments.

For example.

Product registration in the EU or the U S. Ken.

Pierre Brondeau: For example, product registration in the EU or the US can cost upwards of $1 million, whereas in Brazil, the cost of registration is approximately $70 thousand. This, in combination with recent regulatory registration, make it faster and cheaper for generics to obtain registration. On a positive note, our decision to invest in an additional route to market in Brazil to serve large soybean and corn growers is proving to be worthwhile. Sales are still ramping up, but we're seeing good results with over 300 new customers invoiced to date. The other regions perform more in line with expectations. While not as intense as Latin America, we did observe generic pressure in Asia, and to a lesser extent, North America, and EMEA. Sales improved in North America and EMEA, driven by higher volumes, including contribution from the recent launch of Isoflex active in Great Britain.

Can cost upwards of $1 million.

Whereas in Brazil.

The cost of registration is approximately $70000.

This.

In combination with recent regulatory registration make it faster and cheaper for generics to obtain registration.

On a positive note.

Our decision to invest in an additional route to market in Brazil to serve large soybean and corn growers.

Is proving to be worthwhile.

Sales austere renting it.

But we are seeing good results.

With over 300, new customers Invoiced to date.

The other regions performed more in line with expectation.

While not as intense as Latin America, we did observe generic pressure in Asia.

To a lesser extent North America and EMEA.

Sales improved in North America and EMEA.

Even by higher volumes.

Excluding contribution.

The recent launch of ISO flex axes in Great Britain.

We reported adjusted EBITDA of $236 million.

Pierre Brondeau: We reported adjusted EBITDA of $236 million, with EBITDA margin of approximately 25%. Adjusted EBITDA was 17% higher than the prior year on an as-reported basis, and 23% higher than prior year on a like-for-like basis, adjusting for India. The $6 million above the midpoint of our guidance, our strong EBITDA performance reflects disciplined cost control and a focused approach to pricing that prioritize margin and create quality. The year-over-year improvement was driven mainly by cost of goods sold, including lower raw materials, improved fixed cost absorption, and restructuring benefits. EBITDA also benefited from higher volumes and a favorable product mix, as our new products saw greater demand. This was partially offset by lower price and an FX headwind. Adjusted earnings per share was $0.89, up 30% from prior year, and just above the midpoint of our guidance.

<unk> EBITDA margin.

Approximately 25%.

Adjusted EBITDA was 17% higher than the prior year on an as reported basis.

And 23% higher than prior year on a like for like basis.

Adjusting for India.

The $6 million.

Above the midpoint of our guidance.

Strong EBITDA performance reflects disciplined cost control and a focused approach to pricing that prototype margin and increase quality.

The year over year improvement was driven mainly by cost of goods sold including lower raw materials improved fixed cost absorption.

And restructuring benefits.

EBITDA.

Also benefited from higher volumes and a favorable product mix.

As a new product so greater demand.

This was partially offset by lower price and an FX headwind.

Adjusted earnings per share was <unk> 89.

That's 30% from prior year, and just above the midpoint of our guidance.

The year over year improvement was driven by higher adjusted EBITDA.

Pierre Brondeau: The year-over-year improvement was driven by higher Adjusted EBITDA. Slides 6 and 7 provide detail on our outlook for the remainder of the year. We're anticipating the condition we observed in Q3 to continue in Q4. We're now expecting Q4 sales, excluding India, to be in the $1.12 to 1.22 billion. On a like-for-like basis, that represents a 2% increase at the midpoint after adjusting for India. We're expecting higher volume to be driven by the growth portfolio. Q4 price is expected to be a mid-to-high single-digit headwind due to competitive pricing, as well as the impact of cost-plus contract to diamide partners. FX is expected to be a low single-digit tailwind.

Slides six and seven provide detail on the outlook for the remainder of the year.

We're anticipating the condition, we observe we observed in the third quarter to continue in the fourth quarter.

We now expecting.

Fourth quarter sales, excluding India.

To be in the $1 $12 billion.

Two $1 $22 billion.

On a like for like basis.

And represents a 2% increase.

After adjusting for India.

Were expecting higher volume to be driven by the growth portfolio.

Fourth quarter price is expected.

To be mid to high single digit headwind due to competitive pricing.

As well as the impact of cost plus contract. They are my partners.

FX is expected to be a low single digit tailwind.

Fourth quarter adjusted EBITDA is expected to be in the $265 million to $305 million.

Pierre Brondeau: Q4 Adjusted EBITDA is expected to be in the $265 million to 305 million, a decline of 16% at the midpoint on an as-reported basis, and a decline of 7% on a like-for-like basis. Lower cost, higher volume, and minor FX tailwind are expected to be more than offset by lower price. Adjusted EPS is forecasted to be $1.40 to $1.36, a decline of 30% at the midpoint due to a lower EBITDA and abnormally low tax rate in the prior year. We are adjusting our full-year guidance to include Q3 results and updated Q4 guidance.

The decline of 16% at the midpoint on an as reported basis.

And a decline of 7% on a like for like basis.

Lower cost higher.

Higher volume and.

And minor FX tailwind.

They are expected to be more than offset by lower price.

Adjusted EPS is forecasted to be $1 40.

Two $1 36 a.

A decline of 30% at the midpoint.

Due to a lower EBITDA, an abnormally low tax rate in the prior year.

We are adjusting our full year guidance to include third quarter results.

David fourth quarter guidance.

Revenue is now expected to be between three point.

Pierre Brondeau: Revenue is now expected to be between $3.92 billion and $4.2 billion. Full-year Adjusted EBITDA is now expected to be $380 million to $870 million, with the reduction to prior guidance mainly due to lower sales. Adjusted EPS is now forecasted to be $2.92 to $3.14. As a reminder, these guidance ranges include contribution from the India business for the first half only. Free Cash Flow guidance has been lowered to a range of -$200 million to $0, driven by lower cash from operations. The reduction in guidance reflects the increased pricing pressure we are facing in our core portfolio. To address this issue, we are taking cost action to improve the competitiveness of off-patent ingredients.

$92 billion.

And for $2 billion.

Full year adjusted EBITDA is now expected to be 830 <unk>.

<unk> two $817 million is a reduction to <unk> again, mainly due to lower sales.

Adjusted EPS is now forecasted to be $2 92 to $3 40.

As a reminder, these guidance ranges include contribution from the India business for.

The first one.

<unk>.

Free cash flow guidance has been lowered to a range of negative 200 million to $0 driven by lower cash from operations.

The reduction in guidance reflect the increased pricing pressure, we are facing in our core portfolio.

Pierre Brondeau: To include third quarter results and updated fourth quarter guidance. Revenue is now expected to be between $3.92 billion and $4.02 billion full year. Adjusted EBITDA is now expected to be $830 million to $870 million with the reduction to private gallons mainly due to lower sales. Adjusted EPS is now forecasted to be $2.92 to $3.14. As a reminder, these guidance ranges include contribution from the India business for the first half only. Free cash flow gamut has been lowered to a range of negative $200 million to $0 driven by lower cash from operations. The reduction in guidance reflects the increased pricing pressure we are facing in our core portfolio. To address this issue, we are taking cost action to improve the competitiveness of patent ingredients. When I returned as CEO, my focus was on completing several transformation initiatives.

To address this issue.

Taking cost actions to improve the competiveness of patenting regions.

When I return as CEO My focus was on completing several transformation initiative.

Pierre Brondeau: When I returned as CEO, my focus was on completing several transformation initiatives. These included correcting FMC inventory in the channel to align with customer target levels, implementing a post-patent strategy for the next year, establishing an initial route to market in Brazil, ensuring the right resources were in place for a growth portfolio to deliver its full potential, and initiating the sales of the India business. With those initiatives now complete, we are continuing to evaluate business to ensure alignment with the strategic priorities and long-term objectives. Over the last two years, we've removed about $250 million in cost from the business to navigate the challenges of destocking and adjust Rynaxypyr across to prepare for its off-patent lifecycle. We now need to apply that same discipline across our core portfolio, particularly for a non-differential product, where we're competing directly on price.

These included correcting FMC inventory in the channel to align with customer target levels.

Planting a post patent strategy for an extra year.

Establishing a national route to market in Brazil.

Ensuring the right resources were in place for our growth portfolio to deliver its full potential.

And initiating the sales of the India business.

To be 292 cents to 3.14 cents.

With those initiatives now complete we.

We are continuing to evaluate business to ensure alignment with our strategic priorities and long term objectives.

As a reminder, this gal ranges include contribution from the India business for the first half on it.

Over the last two years, we've removed about $250 million in cost from the business to.

Free cash flow gal has been lowered to range of negative. -200 million dollar to zero dollar driven by lower cash from operations.

To navigate the challenges of Destocking and adjust for and accept the across to prepare for its lifecycle.

The reduction in gallons, reflect, the increased pricing pressure where facing in our corporate for you.

We now need to apply that same discipline across our core portfolio.

Particularly for a non differentiated product.

To address this issue, we are taking cost action to improve the competitiveness or of patent ingredients.

We are competing directly on price.

We are taking two key actions.

Pierre Brondeau: These included correcting FMC inventory in the channel to align with customer target levels, implementing a post-patent strategy for Rynaxypyr, establishing a natural route to market in Brazil, ensuring the right resources were in place for a growth portfolio to deliver its full potential, and initiating the sales of the India business. With those initiatives now complete, we are continuing to evaluate business to ensure alignment with the strategic priorities and long-term objectives. Over the last two years we've removed about $250 million in cost from the business to navigate the challenges of destocking and adjust Rynaxypyr costs to prepare for its off-patent life cycle. We now need to apply that same discipline across our core portfolio, particularly for a non-differentiated product where we are competing directly on price. We are taking two key actions. First, we have initiated a strategic review of our manufacturing footprint.

When I return a CU, my focus was on competing. Several transformation initiative?

Pierre Brondeau: We are taking two key actions. First, we have initiated a strategic review of our manufacturing footprint. Our intent is to exit active ingredients and formulation plants, as well as other sources that are too expensive to operate, and transition that production to lower-cost sources. This is a major undertaking. We've already begun the work to identify and develop those alternative sources, and we expect the plan to be fully in place by the end of 2026. Earlier this month, we moved production of two active ingredients from one of our facilities to other manufacturing locations, where lower costs will strengthen FMC's ability to compete in this post-patent market. Second, we're implementing a broader cost reduction plan across Asia to account for a reduced size of the business following the India sale.

First.

We have initiated a strategic review of our manufacturing footprint.

These included, correcting FMC inventory, in the channel to align with customer Target levels.

Our intent is to actually to exit activity regions.

Implementing a post-patent strategy for an X appear.

Formulation plant as well as other sources that are too expensive to operate and transition that production to lower cost sources.

Establishing a natural route to Market in Brazil.

Ensuring the right resources were in place for a growth portfolio to deliver its full potential.

This is a major undertaking we've already begun the work to identify and develop those alternative source.

And initiate the sale of the India business.

With those initiative. Now complete

And we expect to plan to be fully in place by the end of 2026.

We are continuing to evaluate the business to ensure alignment with the strategic priorities and long-term objectives.

Earlier. This month, we moved production of two active ingredients from one of our facility to other manufacturing locations.

Over the last 2 years, we've removed the about 250 million dollars in cost from the business.

We have lower cost will strengthen essentially the ability to compete in this market.

To navigate the challenges of these stocking and adjust for next approach to prepare for its off patent life cycle.

Simone.

We're implementing a broader cost reduction plan across Asia to account for a reduced size of the business following the ESL.

We now need to apply that same discipline across a core portfolio.

Particularly for a non-differentiated product where we are competing directly on price.

Our objective is straightforward.

We are taking 2 key actions.

Pierre Brondeau: Our objective is straightforward: become a cost-competitive crop company, capable of competing with generic or less differentiated products in the region, while also growing a portfolio of IP-protected products that command higher margins. By 2028, we expect to have four new active ingredients in commercialization alongside a growing family of biological products. Some are already launched in select markets, such as Isoflex active and Fluindapyr, which are tracking in line with expectations. We continue to strongly believe in the power of our new product pipeline. In a world with more generic products and increasing resistance, new active ingredients will become even more of a true differentiator for FMC. I'll now turn the call over to Andrew to provide more detail on our India results for the quarter and on the cash outlook.

First.

Become a cost competitive company capable of competing Virginia Rico less differentiated products in the region.

Pierre Brondeau: Our intent is to exit active ingredients and formulation plants as well as other sources that are too expensive to operate and transition that production to lower cost sources. This is a major undertaking. We've already begun the work to identify and develop those alternative sources and we expect the plan to be fully in place by the end of 2026. Earlier this month we moved production of two active ingredients from one of our facilities to other manufacturing locations where lower cost will strengthen FMC's ability to compete in this post-patent market. Second, we're implementing a broader cost reduction plan across Asia to account for a reduced size of the business following the India sale. Our objective is straightforward: become a cost-competitive company capable of competing with generic or less differentiated products in their region while also growing a portfolio of IP-protected products that command higher margin.

We have initiated a strategic review of a manufacturing footprint.

While also growing.

Folio of IP protected products that command higher margin.

By 2028, we expect to us for new active ingredients in commercialization alongside of growing family of biological product.

Our intent is to to exit active ingredients and formulation plans as well as other sources that are too expensive, to operate and transition, that production to lower cost sources.

This is a major undertaking.

Some are already launched in select market.

Such as iced reflects active influent appear which are tracking in line with expectations.

We've already begun the work to identify and develop those alternative source.

And we expect a plan to be fully in place by the end of 2026.

We continue to strongly believe in the power of our new product pipeline.

In a world with more generic product and increasing resistance, new active ingredients will become even more of a truly differentiated for 'twenty for FMC.

Earlier this month, we moved production of 2 active ingredients from 1 of our facility to other manufacturing locations.

We are lower cost was strengthened fences, ability to compete. In this post Department Market.

I'll now turn the call over to Andrew to provide more detail on our India results for the quarter and on a cash outlook.

Second.

We're implementing a broader cost reduction plan across Asia.

To account for reduced size of the business.

Thanks Pierre.

Following the India self.

Let me start with some additional details on the impact of the India held for sale business on this quarter's financial statements.

Andrew Sandifer: Thanks, Pierre. Let me start with some additional details on the impact of the India held for sale business on this quarter's financial statements. As Pierre noted earlier, we reported GAAP revenue of $542 million for Q3. This reflects negative revenue of $419 million in our India held for sale business. The substantial channel inventory in the country was reflected in our financial statements, primarily as receivables. During the quarter, we took several one-time actions to prepare the business for sale. These included physical product returns, taking provisions for additional product returns that will be completed in Q4, and granting price credits to customers on the remaining channel inventory to encourage faster clearing of that channel inventory. Each of these actions had the effect of reducing revenue as well as receivables.

Our objective is straightforward.

As Peter noted earlier, we reported GAAP revenue of $542 million for the third quarter.

Become a cost competitive cap company capable of competing with generic, unless differentiated product in the region.

This reflects negative revenue of $419 million and our India held for sale business.

Pierre Brondeau: By 2028, we expect to have four new active ingredients in commercialization alongside a growing family of biological products. Some are already launched in select markets, such as Isoflex Active and Fluent, which are tracking in line with expectations. We continue to strongly believe in the power of a new product pipeline. In a world with more generic products and increasing resistance, new active ingredients will become even more of a true differentiator for FMC. I'll now turn the call over to Andrew to provide more detail on our India results for the quarter and on the cash outlook.

while also growing a portfolio of Ip protected Products that come in higher margin

The substantial channel inventory in the country was reflected in our financial statements primarily as receivables.

During the quarter, we took several onetime actions to prepare the business for sale.

By 2028, we expect to have 4 new active ingredients in commercialization alongside of growing family of biological product.

Some are already launched in select markets.

These included physical product returns.

Taking provisions for additional product returns that will be completed in the fourth quarter.

Such as isoflex active and fluent appear, which are tracking in line with expectations.

And granting price credits to customers on the remaining channel inventory to encourage faster clearing of that channel inventory.

We continue to strongly believe in the power of a new product pipeline.

Each of these actions had the effect of reducing revenue as well as receivables.

The net result was negative revenue for India for the quarter.

Andrew Sandifer: The net result was negative revenue for India for the quarter. This will also result in a substantial reduction in inventory held in the channel to much more normalized levels, with excess inventory to be held directly on FMC India's books as FMC-owned inventory. We are doing this as we believe it is much easier for a buyer to ascribe more certain value to physical inventory being purchased in a business sale than to receivables, which are subject to collection and other risks. Further, rapidly correcting channel inventory reduces risks associated with recent changes in the application of local indirect taxation rules.... We intend to manage the India business with a heightened focus on liquidation of inventory in advance of completing the sale of the business.

In the world with more generic products and increasing resistance, new active ingredients will become even more of a 2, different shaders for 20 for FMC.

This will also result in a substantial reduction in inventory held in the channel to much more normalized levels.

With excess inventory to be held directly on FMC, India's books as FMC owned inventory.

I'll now turn the call over to Andrew to provide more detail on India's results for the quarter and on the cash outlook.

Andrew Sandifer: Thanks Pierre. Let me start with some additional details on the impact of the India held for sale business on this quarter's financial statements. As Pierre noted earlier, we reported GAAP revenue of $542 million for the third quarter. This reflects negative revenue of $419 million in our India held for sale business. The substantial channel inventory in the country was reflected in our financial statements primarily as receivables. During the quarter, we took several one-time actions to prepare the business for sale. These included physical product returns, taking provisions for additional product returns that will be completed in the fourth quarter, and granting price credits to customers on the remaining channel inventory to encourage faster clearing of that channel inventory. Each of these actions had the effect of reducing revenue as well as receivables. The net result was negative revenue for India for the quarter.

thanks Pierre.

We are doing this because we believe it is much easier for a buyer to ascribe more certain value to physical inventory being purchased in a business sale vendor receivables, which are subject to collection and other risks.

On the impact of the India, health for sale business on this quarter's financial statements.

If you are noted earlier, we reported gaap revenue of 542 million for the third quarter.

Further rapidly correcting channel inventory reduces risks associated with recent changes in the application of local indirect taxation rules.

This reflects negative revenue of 419 million and our India held for sale business.

We intend to manage the India business with a heightened focus on liquidation of inventory in advance of completing the sale of the business.

The substantial Channel inventory, in the country was reflected in our financial statements primarily as receivables.

During the quarter, we took several 1-time actions to prepare the business for sale.

Third quarter GAAP net loss of $569 million reflects approximately $510 million of charges and write downs for the NDA held for sale business.

These included physical product returns.

Andrew Sandifer: Q3 GAAP net loss of $569 million reflects approximately $510 million of charges and write-downs for the India held for sale business. Of this, $282 million reflects the channel inventory actions I just described. The remaining $227 million represents an impairment charge to bring the carrying value of the business to its estimated fair market value. The combination of the channel inventory actions and the impairment charge led to a write-down of the net assets identified as held for sale on our 30 September balance sheet to $450 million. As a reminder, Q3 total company adjusted EBITDA of $236 million excludes the results of the India held for sale business. Moving now to some other specific income statement items.

Taking Provisions for additional product returns, that will be completed in the fourth quarter.

Of this $282 million reflects the channel inventory actions I just described.

And granting price credits to customers on the remaining Channel, inventory to encourage faster clearing of that channel inventory.

The remaining $227 million represents an impairment charge to bring the carrying value of the business to its estimated fair market value.

Each of these actions have the effect of reducing Revenue as well as receivables.

The net result was negative revenue for India for the quarter.

Andrew Sandifer: This will also result in a substantial reduction in inventory held in the channel to much more normalized levels, with excess inventory to be held directly on FMC India's books as FMC owned inventory. We are doing this as we believe it is much easier for a buyer to ascribe more certain value to physical inventory being purchased in a business sale than to receivables, which are subject to collection and other risks. Further, rapidly correcting channel inventory reduces risks associated with recent changes in the application of local indirect taxation rules. We intend to manage the India business with a heightened focus on liquidation of inventory in advance of completing the sale of the business. Third quarter GAAP net loss of $569 million reflects approximately $510 million of charges and write-downs for the India held for sale business.

The combination of the channel inventory actions and the impairment charge led to a write down of the net assets identified as held for sale on our September 30th balance sheet to $200 million to $450 million.

This will also result in a substantial reduction in inventory held in the channel to much more normalized levels.

With excess inventory to be held directly on fnc, India's books as FMC owned inventory.

As a reminder, third quarter total company adjusted EBITDA $236 million excludes the results of the NDA held for sale business.

We are doing this as we believe it is much easier for a buyer to ascribe, more certain values to physical inventory, being purchased in a business sale than to receivables which are subject to collection and other risks.

Moving now to some other specific income statement items.

Third quarter revenue, excluding India held for sale business was $961 million, which reflects a 1% currency tailwind with benefit primarily coming from strengthening of the Brazilian real and the Europe.

Andrew Sandifer: Q3 revenue, excluding the India held for sale business, was $961 million, which reflects a 1% currency tailwind, with benefit primarily coming from strengthening of the Brazilian real and the euro. We now expect the minor FX tailwinds to revenue experienced in the Q3 to continue in the Q4, primarily driven by the Brazilian real and to a lesser degree by the euro and Mexican peso. For the full year, FX remains a minor headwind to revenue due to the 2% headwind in the first half. Q3 interest expense of $64.1 million was up $5.4 million, with the impact of the higher rate on our recent subordinated debt offering only partially offset by lower short-term domestic rates and balance.

Further rapidly correcting Channel. Inventory, reduces risks associated with recent changes in the application of local, indirect taxation rules.

We intend to manage the India business with a heightened focus on liquidation of inventory, in advance of completing the sale of the business.

We now expect the minor FX tailwind to revenue experienced in the third quarter to continue in the fourth quarter, primarily driven by the Brazilian real and to a lesser degree by the Euro and Mexican peso.

Andrew Sandifer: Of this, $282 million reflects the channel inventory actions I just described. The remaining $227 million represents an impairment charge to bring the carrying value of the business to its estimated fair market value. The combination of the channel inventory actions and the impairment charge led to a write-down of the net assets identified as held for sale on our September 30th balance sheet to $450 million. As a reminder, third quarter total company adjusted EBITDA of $236 million excludes the results of the India held for sale business. Moving now to some other specific income and statement items. Third quarter revenue excluding the India held for sale business was $961 million, which reflects a 1% currency tailwind with benefit primarily coming from strengthening of the Brazilian real and the euro.

Third quarter, gaap, net loss of 569 million reflects approximately 510 billion dollars of charges and write Downs for the India, held for sale business.

For the full year FX remains a minor headwind to revenue due to the 2% headwind in the first half.

Of this, $282 million reflects the channel inventory actions I just described.

Third quarter interest expense of $64 $1 million was up $5 $4 million with the impact of the higher rate on our recent subordinated debt offering only partially offset by lower shock short term domestic rates in balance.

the remaining 227 million represents an impairment charge to bring the carrying value of the business to its estimated fair market value.

We now expect full year 2025 interest expense to be in the range of $230 million to $240 million.

Andrew Sandifer: We now expect full year 2025 interest expense to be in the range of $230 to 240 million, essentially in line with the prior year, but up from our prior guidance, reflecting slightly higher than previously expected interest expense in the third quarter. We continue to expect depreciation and amortization for full year 2025 to be between $170 and 180 million. The effective tax rate on adjusted earnings in the third quarter was 12%, which brings our year-to-date effective tax rate in line with the midpoint of our updated expected full-year effective tax rate of 12 to 14%. Moving next to the balance sheet and leverage. We ended the third quarter with gross debt of approximately $4.5 billion, up $379 million from the prior quarter.

The combination of the channel inventory actions and the impairment charge led to a write down of the net assets identified as held for sale on our September 30th balance sheet to 200 to 400 myth 50 million.

Essentially in line with the prior year, but up from our prior guidance, reflecting slightly higher than previously expected interest expense in the third quarter.

As a reminder, third quarter total company adjusted, Evita 236 million, excludes the results of the India health for sale business.

We continue to expect depreciation and amortization for full year 2025 to be between 170 and $180 million.

Moving now to some other specific income and statement items.

The effective tax rate on adjusted earnings in the third quarter was 12%, which brings our year to date effective tax rate in line with the midpoint of our updated expected full year effective tax rate of 12% to 14%.

Andrew Sandifer: We now expect the minor FX tailwinds to revenue experienced in the third quarter to continue in the fourth quarter, primarily driven by the Brazilian real and to a lesser degree by the euro and Mexican peso. For the full year, FX remains a minor headwind to revenue due to the 2% headwind in the first half. Third quarter interest expense of $64.1 million was up $5.4 million, with the impact of the higher rate on our recent subordinated debt offering only partially offset by lower short-term domestic rates and balance. We now expect full year 2025 interest expense to be in the range of $230 million to $240 million, essentially in line with the prior year but up from our prior guidance reflecting slightly higher than previously expected interest expense in the third quarter.

Third quarter Revenue. Excluding the India health for sale business was 961 million, which reflects a 1% currency Tailwind with benefit primarily coming from strengthening of the Brazilian, REI in the euro.

Moving next to the balance sheet and leverage.

We ended third quarter with gross debt of approximately $4 5 billion.

we now expect the minor FX Tailwind to revenue experienced in the third quarter to continue in the fourth quarter, primarily driven by the Brazilian, REI, and to a lesser degree, by the Euro and Mexican peso

Up $379 million from the prior quarter.

Cash on hand increased $60 million to $498 million, resulting in net debt of approximately $4 8 billion.

Andrew Sandifer: Cash on hand increased $60 million to $498 million, resulting in net debt of approximately $4.0 billion, up $319 million from the prior quarter. Gross debt to trailing twelve-month EBITDA was 5x at the quarter end, while net debt to EBITDA was 4.5x. Relative to our leverage covenant, which includes adjustments to both the numerator and denominator, leverage was 4.94x as compared to a covenant limit of 5.25x. Moving on now to free cash flow on slide 8. Free cash flow in Q3 was -$233 million, $365 million lower than the prior year period.

For the full year, FX remains a minor headwind to revenue due to the 2% headwind in the first half.

$319 million from the prior quarter.

Gross debt to trailing 12 month EBITDA was five times at quarter end, while net debt to EBITDA was four five times.

Third quarter, interest, expense of 64.1 million was up 5.4 million with the impact of the higher rate. On our recent subordinated. Death offering only partially offset by lower short, short term, domestic rates and balance.

Relative to our leverage covenant covenant, which includes adjustments to both the numerator and denominator leverage was 494 times as compared to a covenant limit of five to five times.

We now expect full year, 2025 interest expense to be in the range of 230, to 240 million.

Moving on now to free cash flow on slide eight.

Essentially in line with the prior year, but up from our prior guidance reflecting slightly higher than previously. Expected interest expense in the third quarter.

Andrew Sandifer: We continue to expect depreciation and amortization for full year 2025 to be between $170 million and $180 million. The effective tax rate on adjusted earnings in the third quarter was 12%, which brings our year to date effective tax rate in line with the midpoint of our updated expected full year effective tax rate of 12% to 14%. Moving next to the balance sheet and leverage, we ended third quarter with gross debt of approximately $4.5 billion, up $379 million from the prior quarter. Cash on hand increased $60 million to $498 million, resulting in net debt of approximately $4.0 billion, up $319 million from the prior quarter. Gross debt to trailing twelve month EBITDA was five times at the quarter end while net debt to EBITDA was 4.5 times.

Free cash flow in the third quarter was negative $233 million three.

$365 million lower than the prior year period.

We continue to expect appreciation in amortization for voyeur 2025 to be between 170 and 180 million.

Cash from operations was down significantly due to the absence of working capital release from payables seen in the prior year period as well as due to delays in collections.

Andrew Sandifer: Cash from operations was down significantly due to the absence of working capital release from payables seen in the prior year period, as well as due to delays in collections. Free cash flow year to date is negative $789 million, with the absence of the working capital improvement seen in the prior year being the key driver. Relative to our internal expectations, free cash flow in the Q3 was significantly impacted by collection delays. In Latin America, these delays are a result of both reduced liquidity in the channel, as well as delays in growers monetizing the cotton crop. Elsewhere, collection delays are coming primarily from intensified competitive pressures, going beyond price competition to include payment terms as well.

Free cash flow year to date is negative $789 million with the absence of the working capital improvement seen in the prior year being the key driver.

The effective tax rate on adjusted earnings in the third quarter was 12%. Which brings our year to date effective tax rate in line with the midpoint of our updated expected full year effective tax rate of 12 to 14%

Moving next to the balance sheet and leverage.

Relative to our internal expectations free cash flow in the third quarter was significantly impacted by collection delays.

We ended third quarter with gross debt of approximately 4.5 billion up 379 million from the prior quarter.

In Latin America. These delays are a result of both reduced liquidity in the channel as well as delays in growers monetizing the product crop.

Cash on hand increased 60 million to 498 million resulting in. Net debt of approximately 4.0 billion up 319 million in the prior quarter.

Elsewhere collection delays are coming primarily from intensified competitive pressures going beyond price competition to include payment terms as well.

Gross debt to trailing 12-month, Evita was 5 times at the quarter end, while net debt to Evita was 4.5 times.

Andrew Sandifer: Relative to our leverage covenant, which includes adjustments to both the numerator and denominator, leverage was 4.94 times as compared to a covenant limit of 5.25 times. Moving on now to free cash flow on slide 8, free cash flow in the third quarter was negative $233 million, $365 million lower than the prior year period. Cash from operations was down significantly due to the absence of working capital released from payables seen in the prior year period as well as due to delays in collections. Free cash flow year to date is negative $789 million, with the absence of the working capital improvement seen in the prior year being the key driver. Relative to our internal expectations, free cash flow in the third quarter was significantly impacted by collection delays in Latin America.

In light of actual performance year to date, our reduced outlook for EBITDA and our expectation of continued working capital pressures in the fourth quarter, we've reduced our outlook for full year free cash flow to a range of negative 200 million to $0.

Andrew Sandifer: In light of actual performance year to date, our reduced outlook for EBITDA, and our expectation of continued working capital pressures in Q4, we've reduced our outlook for full-year free cash flow to a range of -$200 million to $0. This updated free cash flow outlook, combined with the $291 million in dividends paid thus far this year, suggests an increase in net debt of roughly $400 million at year-end. As such, we are taking two immediate actions. First, our board of directors has changed the company's dividend policy to establish a new quarterly dividend payout of $0.08 per share, effective with the pending declaration of our next dividend payable in January 2026.

Relative to our leverage coverage Covenant, which includes adjustments to both the numerator and denominator leverage was 4.94 times as compared to who a covenant limit of 5.25 times.

Moving on. Now to free cash flow on slide 8.

This updated free cash flow outlook, combined with the $291 million and dividends paid thus far this year.

365 million lower than the prior year period.

Suggests an increase in net debt of roughly $400 million at year end.

As such we are taking two immediate actions.

First our board of directors has changed the company's dividend policy to establish a new quarterly dividend payout of <unk> <unk> per share effective with the pending declaration of our next dividend payable in January of 2026.

Cash from operations was down significantly due to the absence of working capital released from payable seen in the prior year period, as well as due to delays and collections.

Free cash flow year to date is negative 789 million with the absence of the working capital Improvement, seen in the prior year, being the key driver.

This is an over 85% reduction in quarterly dividend, which will reduce the funding need for the dividend by $250 million in 2026.

Andrew Sandifer: This is an over 85% reduction in quarterly dividend, which will reduce the funding need for the dividend by $250 million in 2026. This will allow significantly more of the free cash flow we generate in 2026 to be debt-directed to debt reduction. Second, we've begun discussions with our bank group to further amend the financial covenants in our revolving credit facility agreement to provide us with additional flexibility as we navigate these challenges. We anticipate completing this amendment in Q4 and will provide further updates at that time. These actions are in addition to the cost reduction efforts Pierre described earlier in the call, which will also help increase future free cash flow generation, so they will require use of cash in the short term.

Relative to our internal expectations free cash flow in the third quarter was significantly impacted by collection, delays.

Andrew Sandifer: These delays are a result of both reduced liquidity in the channel as well as delays in growers monetizing the cotton crop elsewhere. Collection delays are coming primarily from intensified competitive pressures going beyond price competition to include payment terms as well. In light of actual performance year to date, our reduced outlook for EBITDA and our expectation of continued working capital pressures in the fourth quarter, we've reduced our outlook for full year free cash flow to a range of negative $200 million to $0. This updated free cash flow outlook, combined with the $291 million in dividends paid thus far this year, suggests an increase in net debt of roughly $400 million at year end. As such, we are taking two immediate actions.

This will allow significantly more of the free cash flow, we generate in 2026 to be directed to debt reduction.

And Latin America, these delays are a result of both reduced liquidity in the channel, as well as delays and Growers, monetizing, the product and crops.

Second we've begun discussions with our bank group to further amended financial covenants in our revolving credit facility agreement provide us with additional flexibility as we navigate these challenges.

Elsewhere, collection delays are coming primarily from intensified competitive pressures, going beyond price competition to include payment terms as well.

We anticipate completing this amendment in the fourth quarter and we'll provide further updates at that time.

In light of actual performance year to date our reduced outlook for Evita and our expectation of continued working capital pressures in the fourth quarter.

These actions are in addition to the cost reduction efforts peer described earlier in the call, which will also help increase future free cash flow generation. So they will require use of cash in the short term.

We've reduced our outlook for full year, free cash flow to a range of negative -200 million to zero dollars.

This updated free cash flow, Outlook combined with the 291 million in dividends paid thus far this year.

To be abundantly clear all free cash flow generated beyond the roughly $40 million required annually to fund the reduced dividend will be directed to debt repayment until we return leverage to healthier investment grade levels.

Andrew Sandifer: To be abundantly clear, all free cash flow generated beyond the roughly $40 million required annually to fund the reduced dividend will be directed to debt repayment until we return leverage to healthier Investment Grade levels. With that, I'll hand the call back to Pierre.

Suggest an increase in net debt of roughly 400 million at your end.

Andrew Sandifer: First, our Board of Directors has changed the company's dividend policy to establish a new quarterly dividend payout of $0.08 per share effective with the pending declaration of our next dividend payable in January of 2026. This is an over 85% reduction in quarterly dividend which will reduce the funding need for the dividend by $250 million in 2026. This will allow significantly more of the free cash flow we generate in 2026 to be directed to debt reduction. Second, we've begun discussions with our bank group to further amend the financial covenants and our revolving credit facility agreement to provide us with additional flexibility as we navigate these challenges. We anticipate completing this amendment in the fourth quarter and will provide further updates at that time.

As such we are taking 2 immediately.

With that I'll hand, the call back to Pierre.

Thank you Andrew.

Normally.

Pierre Brondeau: ... Thank you, Andrew. Normally, at this time of the year, we would provide some directional commentary for the upcoming year. However, as we look ahead to 2026, there are still a number of uncertainties, not at least of which are tariffs for China and India. On our February earnings call, we will be in a better position to provide formal numerical guidance for 2026, as well as new multiyear outlook. Taking a step back, FMC's second half guidance is consistent with last year on a like-for-like basis, excluding India, with sales down 1% and EBITDA up 4% at the midpoint of guidance. Despite a challenging market, volume is growing in the second half as the industry recovers. And while growth is below our initial expectations, performance remains solid, and we are taking decisive actions to strengthen our position.

At this time of the year, we would provide some directional commentary.

First, our board of directors has changed the company's dividend policy to establish a new quarterly dividend payout of 8 cents per share, affected with the pending Declaration of our next dividend payable in January of 2026.

For the upcoming year.

However.

As we look ahead to 2026.

This is an over 85% reduction in quarterly dividend, which will reduce the funding need for the dividend by 250 million in 2026.

There are still a number of uncertainties.

Liza, which all tariffs for China and India.

This will allow significantly more of the free cash flow. We generate in 2026 to be debt directed to debt reduction.

On our February earnings call, we will be in a better position to provide formal numerical guidance for 'twenty six.

Well as new multi year outlook.

Taking a step back.

Second. We've begun discussions with our bankruptcy to further amend the financial covenants in our revolving credit facility agreement to provide us with additional flexibility as we navigate these challenges.

Fmc's second half guidance is consistent with last year on a like for like basis, Excluding India.

We anticipate completing this amendment in the fourth quarter and will provide further updates at that time.

Andrew Sandifer: These actions are in addition to the cost reduction efforts Pierre described earlier in the call, which will also help increase future free cash flow generation, though they will require use of cash in the short term. To be abundantly clear, all free cash flow generated beyond the roughly $40 million required annually to fund the reduced dividend will be directed to debt repayment until we return leverage to healthier investment grade levels. With that, I'll hand the call back to Pierre.

With sales down 1%.

And EBITDA, 4% at the midpoint of guidance.

These actions are in addition to the cost reduction efforts period described earlier in the call, which will also help increase future free cash flow generation. So they will require use of cash in the short term.

Despite the challenging market.

<unk> is growing in the second half.

As the industry recovers.

And why growth is below our initial expectations.

And to be abundantly clear, all free cash flow generated beyond, the roughly $40 million required annually. To fund, the reduced dividend will be directed to debt repayment until we return leverage to healthier investment grade levels.

Performance remains solid and we're taking decisive actions.

With that, I'll hand the call back to Pierre.

Pierre Brondeau: Thank you, Andrew. Normally at this time of the year we would provide some directional commentary for the upcoming year. However, as we look ahead to 2026, there are still a number of uncertainties, not at least of which are tariffs for China and India. On our February earnings call, we will be in a better position to provide formal numerical guidance for 2026 as well as new multi-year outlook. Taking a step back, FMC's second half guidance is consistent with last year on a like-for-like basis, excluding India, with sales down 1% and EBITDA up 4% at the midpoint of guidance. Despite a challenging market, volume is growing in the second half as the industry recovers and while growth is below our initial expectations, performance remains solid and we are taking decisive actions to strengthen our position.

To strengthen our position.

Thank you, Andrew.

Normally.

We're adapting our strategy.

We are redefining our manufacturing footprint.

Pierre Brondeau: We're adapting our strategy, we're redefining our manufacturing footprint, we're reducing costs, we're making the necessary capital allocation decisions. The growth engine of the company, our new active ingredients, is intact, and we're protecting our ability to invest in the innovation that differentiate us. With that, we're ready to take your questions.

At least 10 of the year, we would provide some directional commentary.

We are reducing cost.

For the upcoming year.

However,

We're making the necessary capital allocation decision.

As we look ahead to 2026.

The growth engine of the company and UNC and ingredients is intact and we're protecting our ability to invest in innovation to differentiate us.

There are still a number of uncertainties, not at least of which our tariffs for China and India.

With that we're in.

You need to take your questions.

Yeah.

On a February earnings call, we will be in a better position to provide for more numerical gains for 26.

As well as new milk year outlook.

We will now begin the question and answer session to be placed in the queue. Please press. The star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before.

Taking the step back.

Operator: We will now begin the question-and-answer session. To be placed in the queue, please press the star key, then one on your touchtone phone. If you are using a speakerphone, please pick up your headset before pressing the keys. Please limit yourself to one question. If you have additional questions, you can jump back in the queue. To withdraw from the queue, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Duffy Fischer with the company Goldman Sachs.

Fmc's second half again is consistent with last year on the like for like basis, excluding India.

Pressing the keys, please limit yourself to one question. If you have additional questions you can jump back in the queue.

With sales down 1% and even 4% at the midpoint of guidance.

The withdrawal from the queue. Please press Star then two at this time, we will pause momentarily to assemble our roster.

Despite a challenging Market.

Volume is growing in the second half.

As the industry recovers.

The first question comes from Duffy Fischer with the company Goldman Sachs.

And while growth is below our initial expectations,

Performance remains solid and we are taking these sizes actions.

Yes, good morning, guys.

Pierre Brondeau: We're adapting our strategy, we're redefining a manufacturing footprint, we're reducing cost, we're making the necessary capital allocation decisions. The growth engine of the company, new active ingredients, is intact and we're protecting our ability to invest in the innovation that differentiate us. With that, we're ready to take your questions.

To strengthen our position.

So on the free cash flow guide at the midpoint, you're down $400 million versus what you expected last quarter can you just talk about the buckets of one's eating up that cash flow I know some of it is working capital and then do you think youll get a onetime release of that back.

Duffy Fischer: Yes, good morning, guys. So on the free cash flow guide, at the midpoint, you're down $400 million versus what you expected last quarter. Can you just talk about the buckets of, of what's eating up that cash flow? I know some of it is working capital. And then do you think you get a one-time release of that back next year, or is this gonna be a new going forward, you know, higher commitment of cash needed for your EBITDA delivery?

We're adapting a strategy.

We're redefining a manufacturing footprint.

We're reducing cost.

We're making the necessary capital allocation decision.

Next year or is this going to be a new going forward higher commitment of cash needed for your EBITDA delivery.

The growth engine of the company. A new active ingredients is intact and will protecting our ability to invest in The Innovation that differentiate us.

With that.

We're easy to take your question.

Operator: We will now begin the question and answer session. To be placed in the queue, please press the star key then one on your touchtone phone. If you are using a speakerphone, please pick up your headset before pressing the keys. Please limit yourself to one question. If you have additional questions, you can jump back in the queue. To withdraw from the queue, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from Duffy Fisher with the company Goldman Sachs.

Thanks, Matt Hey, it's Andrew I'll take this question.

Andrew Sandifer: Thanks, so hey, it's Andrew. I'll take this question. Look, in terms of changes from last guidance to current guidance on free cash flow for 2025, look, it starts with a $60 million reduction in full-year EBITDA guidance, right? So let's be clear, we've taken down sales by over $200 million and EBITDA by $60 million since our prior guidance. And that, that has an impact on collections, which, you know, bluntly, collections are predominant of the, of the move in forecast, in guidance between those two calls. Lower sales in Q3 and Q4 means less that will be collected. Not all would be collected in those quarters by any means, but we would have collected some of those sales. We're also, because of liquidity conditions, seeing fewer cash sales.

Like in terms of changes got from last guidance to current guidance on free cash flow for 25 buckets.

It starts with a 60 million reduction in full year EBITDA guidance right. So let's be clear, we've taken down sales by over $200 million and EBITDA by $60 million since our prior guidance and that has an impact on collections, which bluntly collections or predominance of the moon forecasts and guidance between two calls.

We will now begin the question and answer session to be placed in the queue, please press the star key. Then 1 on your touchtone phone, if you are using a speaker-phone, please pick up your headset or for pressing the keys. Please limit yourself to 1 question. If you have additional questions, you can jump back in the queue.

To withdraw from the queue, please press star, then 2. At this time, we will pause momentarily to assemble our roster.

Lower sales in Q3, and Q4 means less that will be collected not all would be collected in those quarters by any means but we would have collected some of those sales were.

Goldman Sachs.

Andrew Sandifer: Yes. Good morning guys. On the free cash flow guide at the midpoint, you're down $400 million versus what you expected last quarter. Can you just talk about the buckets of what's eating up that cash flow? I know some of it is working capital, and then do you think you get a one-time release of that back next year, or is this going to be a new, going forward, higher commitment of cash needed for your EBITDA delivery?

We're also because of liquidity conditions, saying fewer cash sales theres a portion of our mix that is sold basically immediate payment <unk> cash sales.

Andrew Sandifer: You know, there's a portion of our mix that is sold, you know, as basically immediate payment, as cash sales. Liquidity constraints are limiting that part of the collections mix in Q3 and Q4. And we are seeing competitive pressure that's pushing for longer terms. So the biggest part of the bridge between past guidance and current guidance is collections. There are a couple of other factors. There are certainly some noise around our India exit. There was certain amounts of cash that were built into our guidance, being collected in the second half, into our prior guidance, for India. You know, as we've made adjustments and decisions on how we wanna operate that business to better prepare it for sale, there is some friction there. And we are seeing some higher cash spending than we had previously anticipated.

Liquidity constraints are limiting that part of the collections mix in Q3, and Q4 and we are seeing competitive pressure that's pushing for longer terms.

The biggest part of the bridge between past guidance in current guidance as collections. There are a couple of other factors. There are certainly some noise around our India exit.

Yes, good morning guys. Um, so on the free cash flow guide if the midpoint you're down dollars versus what you expected. Last quarter. Can you just talk about the buckets of, of, what's eating up that cash flow? I know some of it is working capital and then, do you think you get a 1-time release of that back next year? Or is this going to be a new going forward? You know, higher commitment of cash needed for your ebit dot delivery?

There were certain amount of cash that were built into our guidance being collected in the second half.

Pierre Brondeau: Thanks.

Andrew Sandifer: Hey, it's Andrew. I'll take this question. Look, in terms of changes from last guidance to current guidance on free cash flow for 2025, it starts with a $60 million reduction in full year EBITDA guidance, right? Let's be clear. We've taken down sales by over $200 million and EBITDA by $60 million since our prior guidance, and that has an impact on collections, which, bluntly, collections are predominant of the move in guidance between the two calls. Lower sales in Q3 and Q4 means less that will be collected. Not all would be collected in those quarters by any means, but we would have collected some of those sales. We're also, because of liquidity conditions, seeing fewer cash sales. There's a portion of our mix that is sold as basically immediate payment as cash sales.

Thank you. Hey, it's Andrew. I'll take this question.

Our prior guidance for India, as we've made adjustments and decisions on how we want to operate that business to better prepare for sale. There are some friction there.

We are seeing some higher cash spending than we previously anticipated.

We anticipated and this is things like higher tariffs and the tariffs currently in place we're not a part of our thinking when we last gave cash guidance. We've taken some additional restructuring actions as Pierre mentioned, we shut down a manufacturing line that has cash costs for the shutdown of that manufacturing line.

Look in terms of changes got from last Guidance, the current guidance on free cash flow for 25. Um, look it starts with a 60 million reduction and full Year ebit Dot guidance, right? So, let's be clear. We've taken down sales by over 200 million dollars and even up by 60 million dollars. Since our prior guidance,

Andrew Sandifer: This is things like higher tariffs. You know, the India tariffs that are currently in place were not a part of our thinking when we last gave cash guidance. We've taken some additional restructuring actions. As Pierre mentioned, we shut down a manufacturing line. That has cash costs for the shutdown of that manufacturing line. And we are seeing higher cash interest expense as to our higher, carrying higher, commercial paper balances or higher working capital. But that bridge, again, the primary piece is, is collection. So as we look ahead to 2026, certainly we would expect to see, you know, delays, collections from the cotton crop in Brazil to be caught up in, in the early part of 2026. But we do anticipate continued competitive pressure on terms.

And that that has an impact on collections, which you know, bluntly collections are predominance of the, of the Moon, and forecast and guidance between the the 2 calls.

And we are seeing higher cash interest expense as for higher carrying higher commercial paper balances are higher working capital that bridge again, the primary pieces to his collection. So as we look ahead to 'twenty six certainly we would expect to see delays collections from the cotton crop in Brazil to be caught up in the early part of 'twenty six but we.

Uh, lower sales and Q3 and Q4 means less that will be collected. It's not all would be collected in those quarters by any means, but we would have collected some of those sales.

Andrew Sandifer: Liquidity constraints are limiting that part of the collections mix in Q3 and Q4, and we are seeing competitive pressure that's pushing for longer terms. The biggest part of the bridge between past guidance and current guidance is collections. There are a couple of other factors. There is certainly some noise around our India exit. There were certain amounts of cash that were built into our guidance being collected in the second half, into our prior guidance for India, as we've made adjustments and decisions on how we want to operate that business to better prepare it for sale. There is some friction there, and we are seeing some higher cash spending than we had previously anticipated. This is things like higher tariffs. The India tariffs that are currently in place were not a part of our thinking when we last gave cash guidance. We've taken some additional restructuring actions.

We do anticipate continued competitive pressure on terms.

So we're still working through as we think through budget for 'twenty six how we see those dynamics playing out.

Andrew Sandifer: So we're still working through as we think through budget for 2026, how we see those dynamics playing out. There's also considerable uncertainty around tariffs. And, you know, just as a reminder, we pay tariffs upfront. It takes a long time for that to flow through our P&L. We recognize as revenue and profit through the, you know, the long supply chain that we have, but those tariffs are paid very early in that process. And then we will have further restructuring expenses in 2026 as we reconfigure our manufacturing network and streamline our Asia operations. So I would expect that we'll have meaningful free cash flow, particularly with the lower funding need for the dividend in 2026, to allow for significant debt reduction.

Considerable uncertainty around tariffs.

We're also because of liquidity conditions seeing fewer cash sales. You know there's a portion of our mechs that is sold you know that's basically immediate payment as cash sales uh liquidity constraints are limiting that part of the collections mix and Q3 and Q4 and we are seeing competitive pressure that's pushing for longer terms. So the biggest part of the bridge between past guidance and current guidance is collections, there are a couple of other factors. There are certainly Some Noise around our India exit.

And then just as a reminder, we pay tariffs upfront. It takes a long time for that to flow through our P&L will be recognized as revenue and profit.

Through the the long supply chain that we have that those tariffs are paid very early in that process and then we will have further restructuring expenses in 2026, as we re configure our manufacturing network and streamline our Asia operations. So I would expect that we'll have meaning it fell a free cash flow, particularly with the lower funding need for the dividend.

<unk> 26 to allow for significant debt reduction, but certainly at this point, it's just too early to get too strong of an indication for 2026 cash flow.

Andrew Sandifer: As Pierre mentioned, we shut down a manufacturing line that has cash cost to the shutdown of that manufacturing line. We are seeing higher cash interest expense as we're carrying higher commercial paper balances or higher working capital. That bridge, again, the primary piece is collections. As we look ahead to 2026, certainly we would expect to see delayed collections from the cotton crop in Brazil to be caught up in the early part of 2026. We do anticipate continued competitive pressure on terms. We're still working through, as we think through budget for 2026, how we see those dynamics playing out. There's also considerable uncertainty around tariffs. Just as a reminder, we pay tariffs up front. It takes a long time for that to flow through our P&L to be recognized as revenue and profit through the long supply chain that we have.

Andrew Sandifer: But bluntly, at this point, it's just too early to give too strong of an indication for 2026 cash flow.

Great. Thank you.

Yeah.

Duffy Fischer: Great. Thank you.

Next question comes from Ben Theurer with the company Barclays name. Your line is now open.

Operator: Next question comes from Ben Theurer with the company Barclays. Ben, your line is now open.

Yes, good morning, and thank you very much for taking my question could you give us maybe a little bit of an indication would you expect the sale price for the India business might be and the more color on the buyer interest.

Ben Theurer: ... Yeah, good morning, and thank you very much for taking my question. Could you give us maybe a little bit of an indication what you expect the sale price for that India business might be, and the more color on the buyer interest? That would be appreciated. Thank you.

Um, there was a map, certain amount of cash that were built into our guidance, uh, being collected in the second half, uh, and our prior guidance, uh, for India, you know, as we've made adjustments and decisions on how we want to operate that business to better prepare for sale. Um, there are some friction there, uh, and we are seeing some higher cash spending than we had previously, uh, anticipated. And this is things like higher tariffs. You know, the India tariffs, uh, that are currently in place were not a part of our thinking. When we last gave cash guidance, uh, we've taken some additional restructuring actions to Pierre mentioned, we shut down a manufacturing line that has cash costs to the shutdown of that manufacturing line. Uh and we are seeing how higher cash interest expense as were higher at carrying higher uh commercial paper, balances or higher working capital. But that bridge again, the primary piece is is collections. So, as we look ahead to 26, certainly we would expect to see, you know, delays collections from the cotton crops in Brazil to be caught up in and the early part of 26. But we do anticipate continued competitive pressure on terms.

That would be appreciated thank you.

Um, so we're still working through as we think through budget for 26, how we see those Dynamics playing out. There's also considerable uncertainty around tariffs

So.

Now.

Pierre Brondeau: So right now, as you could see in the way we are presenting the results, the number of the value for the value of that business is about $450 million, the total, as a total value. The interest level is very high, and I would say higher than what we were expecting. The number of inbounds requests is higher than we're expecting. A vast majority of local companies, but still, some international companies and sponsors looking into the business. So the process is proceeding quite well. Anything, Andrew, you wanna add on the value of the business?

As you could see new way, we are presenting the results.

Andrew Sandifer: Those tariffs are paid very early in that process. We will have further restructuring expenses in 2026 as we reconfigure our manufacturing network and streamline our Asia operations. I would expect that we'll have meaningful free cash flow, particularly with the lower funding need for the dividend in 2026 to allow for significant debt reduction. At this point, it's just too early to give too strong of an indication for 2026 cash flow. Great, thank you.

And the number of the the number of the value for the value of that business is about 450 million. There was a total as a total value.

Inter.

And, you know, just a reminder, we pay tariffs up front. It takes a long time for that to flow through. Our p&l to be recognized as revenue and profits, uh, through the, you know, the the long supply chain that we have, but those tariffs are paid very early in that process. And then we will have further restructuring expenses in in 2026 as we reconfigure, our manufacturing Network and streamline our Asia operations.

The interest level is very high and I would say higher than what we were expecting the number of inbound request.

Is higher than we were expecting.

The vast majority of local companies, but steel.

So I would expect that we'll have meaningful free cash flow particularly with the lower funding need for the dividend in 26 to allow for significant debt reduction. But bluntly at this point, it's just too early to get too strong of an indication for 2026 cash flow.

International companies and sponsors looking into the business. So the business is.

Great. Thank you.

Operator: Next question comes from Ben Theurer with Barclays. Ben, your line is not.

The process is proceeding.

Quite well.

Andrew you want to add on the value of the business now just a note that we did write down the business to its fair market value of $450 million that reflects the value of the business, which includes substantial value for the brands as.

Next question comes from Ben Thor with the company barklay, then your line is not open.

Andrew Sandifer: Good morning and thank you very much for taking my question.

Pierre Brondeau: Could you give us maybe a little?

Andrew Sandifer: No, just to note that we've, you know, we did write down the business's fair market value of $450 million. That reflects, you know, the value of the business, which includes substantial value for the brands, as well as the existing business infrastructure that would be transferred to a buyer. It also reflects the value of the working capital that is, that is invested in that business.

Andrew Sandifer: Bit of an indication what you expect the sale price for that India business might be, and more color on the buyer interest? That would be appreciated. Thank you.

As well as the existing business and infrastructure that will be transferred to a buyer and also reflects the value of the working capital that is invested in that business.

Uh yeah good morning and uh thank you very much for taking. My question, could you uh give us maybe a little bit of an indication? Would you expect the sale price for that India business might be and and the more color on the buyer interest. Um, that would be appreciated. Thank you.

Pierre Brondeau: Right now, as you could see in the way we are presenting the results, the value of that business is about $450 million as a total value. The interest level is very high, and I would say higher than what we were expecting. The number of inbounds request is higher than we're expecting. Vast majority of local companies, but still some international companies and sponsors looking into the business. The process is proceeding quite well. Anything, Andrew, you want to add on the value of the business?

Okay perfect. Thank you very much.

So right right now.

Okay.

Ben Theurer: Okay, perfect. Thank you very much.

Our next question comes from Matthew Deyoe with accompanying Banc of America. Matthew Your line is now open.

Uh, as you could see in the way we are, um, presenting the results.

Operator: The next question comes from Matthew DeYoe with the company Bank of America. Matthew, your line is now open.

The number of the, the number of the value, for the value of that business,

Yeah.

Good morning.

I appreciate there's a lot of uncertainty in.

Matthew DeYoe: Good morning. I appreciate there's a lot of uncertainty in the outlook. And I know there's some patent issues obviously approaching. But just as we think about the credit position and the expectation for working capital headwinds, tailwinds next year, do you remain committed to the IG rating? And, like, how do you think about backstopping that? Is equity issuance to protect IG on the table or not? Maybe that's too early to talk about. I just wanted to get a sense.

Is is about 450 million hours, a total as a total value.

In the outlook.

the um,

And I know there is.

Some some patent issues, obviously approaching but just as we think about that.

interest level is very high and I would say higher than what we were expecting the number of inbounds request

The credit position.

And the expectation for working capital headwinds tailwind next year.

Do you.

<unk> committed to the <unk> rating.

Like how do you think about Backstopping that is equity issuance to protect <unk> on the table or are not maybe thats too early to talk about I just wanted to take to get a sense.

Andrew Sandifer: Just note that we did write down the business to its fair market value of $450 million. That reflects the value of the business, which includes substantial value for the brands as well as the existing business infrastructure that would be transferred to a buyer. It also reflects the value of the working capital that is invested in that business. Okay, perfect. Thank you very much.

Yeah. Thanks, Matt It's Andrew again, I think it's a bit early to talk about all the potential actions.

Andrew Sandifer: Yeah, that's ... Thanks, Matt. It's Andrew again. I think it's a bit early to talk about all the potential actions. I think certainly we've done a number of things that we, you know, were taken, you know, with the specific intention of supporting the investment grade rating. You know, we did the hybrid subordinated offering in May. We've just announced a very significant cut in the dividend. You know, I think at this point we recognize that our metrics are not currently in line with an investment grade rating. The agencies have been supportive of working with us as we continue to work through our transformation. We've started discussions with them, but it's a bit of a work in progress at this point.

I think certainly we've done a number of things that we're taking with the specific intention of supporting the investment grade rating and we did that the the hybrid subordinated offering in May we've just announced a very significant cut in the dividend.

Value of the business. Yeah, just to note that we, you know, we did write down the business to its fair market value million dollars, that reflects, you know, the the value of the business which includes substantial value for the brands. Um, as well as the existing business infrastructure that we'd be transferred to a buyer, it also reflects the value of the working capital that that is invested in that business.

Okay, perfect. Thank you very much.

Operator: The next question comes from Matthew Doyle with Bank of America. Matthew, your line is now open.

I think at this point, we recognize that our metrics are not currently in line with an investment grade rating. The agencies had been supportive of working with US as we continue to work through our transformation, we started discussions with them, but it's a bit of a work in progress at this point.

The next question comes from Matthew Doyle with the company Bank of America, Matthew, your line is not open.

Pierre Brondeau: Good morning.

Andrew Sandifer: I appreciate there's a lot of uncertainty in the outlook and I know there's some patent issues obviously approaching. Just as we think about the credit position and the expectation for working capital, headwinds, tailwinds next year, do you remain committed to the IG rating and how do you think about backstopping that? Is equity issuance to protect IG on the table or not? Maybe that's too early to talk about. I just wanted to get a sense. Yeah, thanks Matt, it's Andrew again. I think it's a bit early to talk about all the potential actions. Certainly, we've done a number of things that were taken with the specific intention of supporting the investment grade rating. We did the hybrid subordinated offering in May. We've just announced a very significant cut in the dividend.

Good morning. Um,

I appreciate there's a lot of uncertainty uh, in the Outlook. Um,

Look I think we're focused on making sure we're doing the right things for the business in the long term health.

and I know there's, um,

Andrew Sandifer: So, look, I think we're focused on making sure we're doing the right things for the business and the long-term health, and returning over, you know, a period of time to Investment Grade ratings. How the agencies view that, we influence but don't control. But we're gonna do the right things in terms of use, you know, re-reducing the use of cash to fund the dividend, so it'll allow us time to pay down debt and also to support the restructuring costs that we need to get the manufacturing footprint in its right place. So, you know, at this point, I think, you know, we expect to end the year, if you take the midpoint of our guidance range for EBITDA and for Free Cash Flow and the implied debt, that implies net debt at year-end at about four times net debt.

And returning over a period of time to investment grade ratings, how the agencies view that we in fluids, but don't control, but we're going to do the right things in terms of use of reducing the use of cash to fund the dividend. So it allow us time to pay down debt and also to support the restructuring cost that we need to get the manufacturing footprint and its right.

some, some patent issues obviously approaching, but just as we think about,

The credit position.

And the expectation for working capital. Headwinds Tailwinds next year,

<unk>.

So at this point I think we expect to end the year after.

Do you remain committed to the IG rating? And like, how do you think about backs stopping that is, is equity issuance to to protect IG on the table or or not? Maybe that's too early to talk about? I just want to take to get a sense.

Take the midpoint of our guidance range for EBITDA and for our free cash flow and implied that patents that implied net debt at year end at about four times net debt.

At that point it will take a couple of years to get that back into more more in line with investment grade ratings.

Andrew Sandifer: You know, at that point, it'll take a couple years to get that back into more in line with Investment Grade ratings. So we're gonna continue to do everything we can to manage cash conservatively, effectively, direct all the available cash to debt redeployment and debt reduction. And we'll keep, you know, working with the agencies to show them the path that we see to returning to healthier metrics.

So we're going to continue to do everything we can to manage cash.

Conservatively effectively direct all the available cash to debt that redeployment debt reduction.

Andrew Sandifer: At this point, we recognize that our metrics are not currently in line with an investment grade rating. The agencies have been supportive of working with us as we continue to work through our transformation. We've started discussions with them, but it's a bit of a work in progress at this point. I think we're focused on making sure we're doing the right things for the business and the long-term health and returning over a period of time to investment grade ratings. How the agencies view that we influence but don't control, but we're going to do the right things in terms of reducing the use of cash to fund the dividend. It will allow us time to pay down debt and also to support the restructuring costs that we need to get the manufacturing footprint in its right place.

And we'll keep working with the agencies that to show them. The path that we see at a returning to healthier metrics.

Okay.

Our next question comes from Jeff Zekauskas with the company J P. Morgan Your line is now open.

Matthew DeYoe: Okay.

Operator: Our next question comes from Jeff Zekauskas with the company J.P. Morgan. Jeff, your line is now open.

Thanks very much.

There are different structural changes going on.

Jeff Zekauskas: Thanks very much. There are different structural changes going on in the crop chemical industry. Your competitor, Corteva, is going to, plans to split into a seed business and a crop chemical business. As you think of competing against them, do you think it will be easier to compete against an entity that's a pure crop chemical company? Or, or, or do you think that it will be harder, they'll lack the seed component? Do the seeds make any difference in selling crop chemicals?

Crop chemical industry.

Your competitor a courthouse <unk> plans to split into a seed business the crop chemical business.

Yeah. That's that's thanks man. It's Andrew again. I think it's a bit early to talk about all the potential actions. I think, certainly we've, we've done a number of things that we, you know, we're taking, you know, with the specific intention of supporting the investment grade rating. You know, we did the, the, uh, the hybrid subordinated offering in May. Uh, we've just announced a very significant cut in the dividend. Um, you know, I, I think at this point, uh, we recognize that that our metrics are not currently in line with an investment grade rating. Um, the agencies have been supportive of working with us as we continue to work through our transformation. Uh, We've started discussions with them but it's a bit of a work in progress at this point. So look, I think we're focused on making sure we're doing the right things for the business and the long term health and returning over, you know, a period of time to investigate ratings how the agencies view that we influence, but don't control. But we're going to do the right things in terms of use of, you know, reducing the use of CA of cash to fund the dividends. So it'll allow us time to pay down debt and also to

As you think of competing against.

Andrew Sandifer: At this point, I think we expect to end the year, if you take the midpoint of our guidance range for EBITDA and for free cash flow and the implied debt, that implies net debt at year end at about four times net debt at that point. It'll take a couple of years to get that back into more in line with investment grade ratings. We're going to continue to do everything we can to manage cash conservatively and effectively, direct all the available cash to debt redeployment and debt reduction, and we'll keep working with the agencies to show them the path that we see to returning to healthier metrics.

Do you think it will be easier to compete against an entity, that's a pure crop chemical company.

Or do you think that it will be harder, though they'll lock.

<unk> component to the <unk> make any difference in selling crop chemicals.

Of course, it's.

Support the restructuring costs, that we need to get the manufacturing footprint and, and Its Right Place. Um, so you know, at this point I think, you know, we expect to end the year if you take the midpoint of our guidance range for Ava and for a free cash flow and the implied debt that that implies and that debt at year end at about 4 times net debt. Um you know it'll at that point it'll take a couple years to get that back into more more in line with investment grade ratings. Um, so we're going to continue to do everything we can to to manage cash.

Pierre Brondeau: Of course, it's a question we've been asking ourselves and which is difficult to answer. My initial reaction, and once again, until we are in the situation, it will be difficult to say, but it might not change how difficult it is to compete against a crop chemical company as a standalone. It might have a benefit for us, and I'm highly speculating here, is that it might open more for us in the future, the Corteva seed hectares to sell our our crop chemical products. So not expecting much of a change. I think Corteva crop chemical will be as good in the future as they are today.

<unk> bin.

Asking ourselves.

And which is difficult to difficult to answer.

Conservatively, effectively, direct all the available cash to debt, debt, redeployment and debt reduction, uh, and we'll keep it, you know, working with the agencies that to show them the path that we see to returning to healthier metrics.

My initial reaction and once again until we are in this situation it will be difficult to say, but.

Okay.

Operator: Our next question comes from Jeff Zekauskas with JPMorgan. Jeff, your line is now open.

It might not change.

Our next question comes from Jeff, zakus with the company. JP Morgan, Jeff, your line is not open.

Andrew Sandifer: Thanks very much. There are different structural changes going on in the crop chemical industry. Your competitor Corteva is going to plans to split into a seed business and a crop chemical business. As you think of competing against them, do you think it will be easier to compete against an entity that's a pure crop chemical company?

How difficult it is to compete against the crop chemical company as a stand alone.

He might have a benefit for us and I'm highly speculating here.

Is that.

<unk> opened more for us in the future.

Uh, thanks very much. Um, there are different structural changes going on in the crop chemical industry. Um, your competitor or cortiva is going to plants to split into a seed business at the crop chemical business.

The coty the seed actors to sale.

Um, a a as you think of competing against them.

The crop chemical products so.

Not expecting much of a change.

Thank <unk> chemical will be as good in the future as they are today.

Pierre Brondeau: Do you.

Andrew Sandifer: Think that it will be harder, they'll lack the seed component. Do the seeds make any difference in selling crop chemicals?

Could we be in the situation, where we have more opportunities.

Pierre Brondeau: Could we be in a situation where we have more opportunities on the seed front of Corteva, with their crop chemical being maybe less captive? That is a possibility.

Do you think it will be easier to compete against an entity? That's a pure crop Chemical Company. Um, or or um, or, or do you think that it will be harder? They'll they'll lack the seed component to the seeds, make any difference in selling crop chemicals.

On the scene at front of course here.

Operator: Of course.

Pierre Brondeau: It's a question we've been asking ourselves and which is difficult to answer. My initial reaction, and once again until we are in the situation, it will be difficult to say, but it might not change how difficult it is to compete against a crop chemical company as a standalone. It might have a benefit for us, and I'm highly speculating here, is that it might open more for us in the future. The Corteva seed hectares to sell our crop chemical products. Not expecting much of a change. I think Corteva crop chemical will be as good in the future as they are today. Could we be in a situation where we have more opportunities on the seed front of Corteva with their crop chemical being maybe less captive? That is a possibility.

With their crop chemical being.

Being maybe less.

Um, of course, it's a it's a question. We've been

As Kenya ourselves.

That is a possibility.

And which is difficult to difficult to answer.

Thanks.

Um,

Edlain Rodriguez: Thanks.

Jeff Zekauskas: Thanks.

The next question comes from ethylene, where do you guys with the company Mizuho Atlanta. Your line is now open.

Operator: The next question comes from Edlain Rodriguez with the company Mizuho. Edlain, your line is now open.

My initial reaction. And and once again, until we are in the situation, it will be uh, difficult to say. But

Thank you and good morning, everyone I'm a quick question.

It might not change.

Edlain Rodriguez: Thank you, and good morning, everyone. I mean, quick question, Pierre. Like, how much of what's going on at right now do you think is FMC-specific versus, you know, how much is, like, industry issues? And related to that, like, when do you think you'll have a good sense of what's really going on with the portfolio? Because it seems like you're playing a game of whack-a-mole, you know, problems keeps resurfacing, and then you have to put the fire out. Like, when do you think you'll have a better sense of what's going on with your portfolio? And, you know, is it, like, company-specific versus industry-specific?

How much of what's going on.

Right now do you think is FMC specific versus how much is that industry issues and related to that like when do you think youll have a good sense of what's really going on with the portfolio because it seems like you're playing a game of whack, a mole and them problems keeps where are we sort of fine and then you have to.

How difficult is it to compete against a crop chemical company as a standalone?

It might have a benefit for us and and I'm highly speculating here.

Is that uh it might open more for us in the future?

The cortiva seed actors.

To sell our, um, our crop chemical products. So,

Put the fire out looks like when do you think you have a better sense of what's going on with the portfolio and is it a company specific versus industry specific.

not expecting much of a change.

I think cortiva Chrome chemical will be as good in the future as they are today.

Alright.

Now, let's try to answer it it's an important question we.

Pierre Brondeau: All right. Let me try to answer it. It's an important question we are obviously looking at. First, let me talk about what is, I would say, industry. Let's face it, we still are in a slow market. The market is not worsening. I think we're at the bottom of the cycle, but the market is not improving. So, we are facing a situation where the demand is soft and there is ample capacity, mostly due to generics increasing their capacity. So there is, and especially in places where it's easy for generics to get registration, like Asia or Latin America, there is an intensified competition on the non-IP protected product with generic and especially for direct sales to customers. So it's a broader industry statement. Now, what is more FMC specific?

Where do you see looking at first.

situation where we have more opportunities on the see the front of cortiva uh with their crop chemical being

Let me talk about what is.

I would say.

uh uh being maybe less captive that, that is a possibility.

Andrew Sandifer: Thanks.

Industries.

Uh huh.

Let's face it.

Operator: The next question comes from Edgar Rodriguez with Mizuho. Your line is now open.

We still are.

A slow market.

The market is not worsening.

Andrew Sandifer: Thank you. Good morning everyone. Quick question, Pierre. How much of what's going on right now do you think is FMC specific versus how much is industry issues, and related to that, when do you think you'll have a good sense of what's really going on with the portfolio? It seems like you play in a game of whack-a-mole, problems keep resurfacing and then you have to put the fire out. When do you think you'll have a better sense of what's going on with your portfolio, and is it company specific versus industry specific?

I think where the GOR of the cycle, but the market is not improving.

The next question comes from Eden Rodriguez with the company Meizuo. Eden, open.

So we are facing a situation where the demand is soft.

And there is ample capacity.

Mostly due to generic increasing their capacities.

So there is an especially in places where it's easy for generics to get registration in the occasional Latin America.

There is an intensified competition.

On the known IP protected product with generic and specially for direct sales to two.

Pierre Brondeau: All right, let's try to answer. It's an important question we are obviously looking at. First, let me talk about what is, I would say, industry. Let's face it, we still are in a slow market. The market is not worsening. I think we're at the bottom of the cycle, but the market is not improving. We are facing a situation where the demand is soft and there is ample capacity, mostly due to generics increasing their capacity. There is, especially in places where it's easy for generics to get registration, like Asia or Latin America, an intensified competition on the non-IP-protected product with generics and especially for direct sales to customers. It's a broader industry statement. Now, what is more FMC specific? I think there is a positive FMC portfolio. This is our new technologies. Our new technologies are growing very fast and there is a very strong demand.

Uh, thank you, uh, good morning, everyone. I'm a quick question Pierre. Like how much of what's going on at uh right now? Do you think it's FMC specific versus? I don't know how much is that industry issues and related to that. Like when do you think you'll have a good sense of what's really going on with the portfolio because it seems like you play in a game of whack-a-mole, you know, problems keeps with surfing and then you have to put the fire out. Like when do you think you have a better sense of what's going on with the portfolio? And, you know, is it? That companies specific versus industry specific,

Two customers so it's a broader industry statement.

all right, um,

What is what is more FMC specific.

I'm going to try to to answer. It's, it's an important question. We

We are obviously looking at first.

I think there is a policy team.

FMC portfolio.

Pierre Brondeau: I think there is a positive in FMC portfolio. This is our new technologies. Our new technologies are growing very fast and there is a very strong demand. Unfortunately, it's not growing fast enough because registration in our industry takes time. So as important as those products are and as important as our growth portfolio is, it is not today large enough to impact significantly the, the performance of the company. On the negative front, there is two events which are happening. Rynaxypyr, and we talked about it, we don't view that as a growth molecule, and it's a, a molecule for which we have developed a strategy to protect earnings, but not to grow earnings. Now comes the last point we talked about in our, in our, remarks.

This is a new technologies new technologies are growing.

Let me talk about what is uh, I would say. Um,

Industries.

Very fast and there is a very strong demand.

Um,

Unfortunately, it's not growing fast enough because registration in our industry. It takes time.

let's face it, we still are in a slow Market.

The market is not worsening.

So as important as those protocol and as important as our growth portfolio is.

Uh, I think we're at the bottom of the cycle, but the market is not improving.

It is <unk> large enough.

So, uh, we are facing a situation where the demand is soft.

To impact significantly the.

And there is ample capacity.

Performance of the company.

On the negative front there is two events, which are happening roenick sat here and we talked about it.

Mostly due to generics increasing their capacity.

We don't view that as a growth molecule and I'd say a molecule for which we have developed a strategy to protect earnings but not to grow earnings.

So there is a special environment in places where it's easy for generics to get registration, like Asia or Latin America.

There is an intensified competition.

Now comes the last points, we talked about in our.

um, on the non IP protected product with generic and specially for for direct sales to

To customers. So it's a broader industry statement.

Uh huh.

Our remarks.

Now what is what is more FMC specific?

We were hoping.

A year ago to see a market renting it.

Pierre Brondeau: We were hoping about a year ago to see a market ramping up and being able to defend better a non-IP protected product using branding, using service, using mixtures, IP-protected mixtures. It is a fact that we knew that we had a manufacturing cost, which was not very competitive for part of our portfolio. We believed for the next 2, 3 years, we could live with that. It is not happening. I think with the market remaining, remaining soft, we are seeing generics being more and more aggressive, and we are forced to do maybe a bit earlier, in a more aggressive way, a complete rethinking of our manufacturing portfolio.

I think there is a positive in FMC portfolio.

And being able to defend better.

This is a new technologies, a new technologies are growing.

Known IP protected.

Pierre Brondeau: Unfortunately, it's not growing fast enough because registration in our industry takes time. As important as those products are and as important as a growth portfolio is, it is not today large enough to impact significantly the performance of the companies. On the negative front, there are two events which are happening. Rynaxypyr, and we talked about it. We don't view that as a growth molecule and it's a molecule for which we have developed a strategy to protect earnings but not to grow earnings. Now comes the last point we talked about in our remarks. We were hoping about a year ago to see a market ramping up and being able to defend better a non-IP-protected product using branding, using service, using mixtures, IP-protected mixtures. It is a fact that we knew that we had a manufacturing cost which was not very competitive for part of a portfolio.

<unk> using branding using service using.

Very fast and there is a very strong demand.

Mixtures.

Unfortunately, it's not growing fast enough because registration in our industry takes time.

Victor niches.

It is a fact that.

We knew that.

That we had a manufacturing cost.

so, as important as those products are, and as important as our growth portfolio is

it is not today. Large enough.

Which was not very competitive for part of our portfolio.

We believe for the next two.

Two or three years, we could leave with that.

To impact significantly, the, uh, the performance of the companies.

It is not happening I think with the market remain these remaining soft.

We're seeing generics being more and more aggressive.

On the negative front, there are two events that are happening in Runx appear, and we talked about it.

And we are forced to do maybe a bit earlier tend to more aggressively.

Please rethinking over manufacturing portfolio.

We don't view that as a growth molecule and it's a, a molecule for which we have developed a strategy, to protect earnings, but not to grow earnings.

So I would say there is.

Pierre Brondeau: So I would say there is a part which is industry linked, and then on the FMC side, there is a lot of positive, but 2026, 2027 are a bit early to see those products influencing strongly. And, specifically to FMC, is the Rynaxypyr situation we've discussed and our manufacturing costs, which need to be addressed.

The path, which is industrial Inc.

Now comes the last point we talked about in our, uh,

And then on the FMC side, there is a lot of positive but <unk>.

Uh, remarks.

We were hoping.

26, 27 are a bit early to see those product influencing strongly and specifically to FMC is the <unk> situation, we've discussed and our manufacturing costs, which need to be addressed.

About a year ago to see a market renting up.

And being able to defend better.

A non IP protected.

Product using branding using service.

Using mixtures, it protected mixtures.

Our next question comes from Laurence Alexander with the company Jefferies. Laurence Your line is now open.

Uh, it is a fact that uh,

We knew.

Operator: Our next question comes from Laurence Alexander with the company Jefferies. Laurence, your line is now open.

That we had a manufacturing cost.

Good morning, how much of your portfolio is now in the category of.

Pierre Brondeau: We believed for the next two, three years we could live with that. It is not happening. I think with the market remaining soft, we are seeing generics being more and more aggressive and we are forced to do maybe a bit earlier in a more aggressive way, a complete rethinking of a manufacturing portfolio. I would say there is a part which is industry linked and then on the FMC side there is a lot of positive, but 2026, 2027 are a bit early to see those products influencing strongly. Specifically to FMC is the Rynaxypyr situation we've discussed and our manufacturing costs which need to be addressed.

Which was not very competitive for part of a portfolio.

Laurence Alexander: Good morning. How much of your portfolio is now in the category of reassessing the production costs and likely bringing prices down in 2026 and 2027? And then related to that, does the season in Brazil and the generic pressure also lead you to rethink how much of a diamide reset you might have in 2026 and 2027?

Reassessing, the the production costs and likely bringing prices down in 'twenty six 'twenty seven.

We Believe for the next uh 2 3 years, we could live with that.

It is not happening. I think with the market remaining remaining soft.

And then related to that.

We are seeing generics being more and more aggressive.

The season in Brazil, and the generic pressures that also leading you to rethink how much of a Diamide research you might have in 26 and 27.

And we are forced to do maybe a bit earlier in the more aggressive way. A complete rethinking of a manufacturing portfolio.

So.

so, I would say there is

To answer your first question.

Pierre Brondeau: So, to answer your first question, I want to be careful because we have just starting this work. And, you know, changing manufacturing in our world is not only a matter of changing manufacturing, you also have to take into account new sources and registration. So it's a very involved process. I would say for sure, we will retain in our manufacturing portfolio, Rynaxypyr, Cyazypyr, the four new active ingredients. And there is also two important molecules today, which are multi-hundred million dollars, which are produced in some of our low-cost plants, which will stay with us. All of the rest in the analysis is candidate for being moved to a different manufacturing location or different sourcing.

A part which is industry linked.

I wanted to be careful because we are just.

Starting.

And then on the FMC side, there is a lot of positive, but...

This work.

And changing manufacturing world is not only a matter of changing manufacturing.

Also have to take into account new sources and registration. So it's a very involved process.

early to see those product influencing strongly and specifically to FMC is the Renaissance situation with disgust

and are manufacturing costs, which need to be addressed.

I would say for sure.

Operator: Our next question comes from Laurence Alexander with Jefferies. Laurence, your line is now open.

We will retain in our manufacturing portfolio.

<unk> appear.

Andrew Sandifer: Good morning. How much of your portfolio is now in the category of reassessing the production costs and likely bringing prices down in 2026 and 2027?

Our next question comes from Lawrence Alexander. With the company Jeffries law is not open.

Sales at here.

The full new active ingredients.

Good morning. How much of your portfolio is now in the category of, um,

And there is also two important molecule today, we shall multi $100 million, which are produced in some of our low cost plant, which will stay with us.

Pierre Brondeau: Related to that, does the season end.

Reassessing the the production costs and likely bringing prices down in 26 and 27.

And then related to that.

Andrew Sandifer: Brazil and the generic pressure, is that also leading you to rethink how much of a dynamite reset you might have in 2026 and 2027?

All of the rest.

In the analyses is candidate for being moved to a different.

Does the season in Brazil and the generic pressure is that also leading you to rethink how much of a diamide reset. You might have in 26 and 27.

Pierre Brondeau: To answer your frustration, I want to be careful because we are just starting this work and, you know, changing manufacturing in our world is not only a matter of changing manufacturing. You also have to take into account new sources and registration. It's a very involved process. I would say for sure we will retain in our manufacturing portfolio Rynaxypyr, Cyazypyr, the four new active ingredients, and there are also two important molecules today which are multi-hundred million barrels, which are produced in some of our low-cost plants, which will stay with us. All of the rest in the analysis is a candidate for being moved to a different manufacturing location or different sourcing. Regarding diamides, at this stage we do not believe what we are talking about is changing strategy will make us believe we should go further in terms of pricing.

To a different manufacturing location or difference on different sourcing.

so, um,

Regarding <unk>.

This stage, we do not believe.

Pierre Brondeau: Regarding diamides, at this stage, we do not believe what we are talking about is changing our strategy or make us believe we should go further in terms of pricing. That dynamic around Rynaxypyr especially, was very much in place, was already happening. There is nothing changing here. At this stage, we do not believe it will have an impact. That being said, we've developed a strategy. We are starting implementation, and we will be adjusting as we need between cost to take share over other type of insecticide or lower-end market, and high-end mixtures to reinforce our position on the high-end market for Rynaxypyr. We will adjust, but there is nothing jumping at us right now requiring a change in our strategy.

To to to to, to answer your first question. Um, I want to be careful because we are just

What we are talking about is changing.

Starting. Uh, this work

Our strategy will make us believe we should go further in terms of pricing.

And uh, you know, changing Manufacturing in our world is not only a matter of changing Manufacturing.

That dynamic around around <unk> was very much in place was already happening there is nothing changing here so.

You also have to take into account new sources and registration. So it's a it's a very involved process.

I would say, for sure.

At this stage, we do not believe it will have an impact that being said.

We will retain inner manufacturing portfolio.

We've developed this strategy, we're starting implementation and we will be adjusting as we need between cost.

Uh, Rex appear.

Sales appear.

Um, the four new active ingredients.

To take share over other type of insecticide and a lower than market and high end measures to reinforce our position on the high end markets for <unk>. So we will adjust but there is nothing jumping others right now requiring a change in our strategy.

And there is also 2, important molecule to today which are multi hundred million dollars, which are produced in some of our low cost plant, which will stay with us.

All of the rest.

Thank you.

Yeah.

Yes.

Ben Theurer: Thank you.

In the analysis is candidate for being moved to a different uh to a different manufacturing location or different, or different sourcing.

Our next question comes from Joel Jackson, with the company and BMO capital markets. Joe. Your line is now open.

Operator: Our next question comes from Joel Jackson with the company BMO Capital Markets. Joel, your line is open.

Yeah.

Regarding diamide at this stage, we do not believe.

Good morning, Peter and team.

Peter you're describing a lot going on obviously the company you're talking about.

Joel Jackson: Good morning, Pierre and team. Pierre, you're describing, you know, a lot going on, obviously, at the company. You're talking about, you know, redoing maybe how you manufacture for a larger portfolio. You're exiting out India. You've got the things with Rynaxypyr going on next year. You're made some management changes recently. As you go through all this, you know, are you starting to think about, you know, in a fragmented industry in crop chem, you know, does FMC have the right structure? Should it be acquisitive? Should you start looking at if you should partner with others? I mean, tell me about how deep your thoughts are going here into all the scenarios that could happen.

What we are talking about is changing.

Redoing, maybe how your manufacturer for a larger portfolio your.

Pierre Brondeau: That dynamic around, around Rynaxypyr especially was very much in place, was already happening. There is nothing changing here. At this stage we do not believe it will have an impact. That being said, we've developed a strategy, we are starting implementation, and we will be adjusting as we need between cost to take share over other types of insecticide or lower-end market and high-end mixtures to reinforce a position on the high-end market for Rynaxypyr. We will adjust, but there is nothing jumping at us right now requiring a change in our strategy.

Exiting in India, you've got the things with extra going on next year, you made some management changes recently.

As you go through all of this you know are you starting to think about.

Uh, our strategy or make us Billy. We should go further in terms of pricing uh, that Dynamic around around. Uh Rolex appear specially was very much in place was already happening. There is nothing changing here, so

In a fragmented industry and crop chems does FMC happened like structure or should it be acquisitive should we start looking at it you should partner with others means tell me about how deep your thoughts are going here into all of the scenarios that could happen.

at this stage, we do not believe it will have an impact that being said,

Uh, we've developed a strategy; we are studying implementation, and we will be adjusting as we need between costs.

Yeah.

Yes.

Thank you.

Pierre Brondeau: Yes. I think we believe we have a clear path on where the company is going. It's evolving in terms of the speed at which we should do it, but we have a clear path. We do believe if we project ourselves, by 2028, we have a very high level of comfort in the way the company should be operating. Because at that time, between biologicals, the four new active ingredients and Cyazypyr, we will have a very significant growth portfolio, which will be generating strong growth and profit. With all of the work we are doing, and it's very heavy lifting in 2026, we would be able to protect our core portfolio, including Rynaxypyr, to grow at market speed.

We believe we have a clear path.

On the on where the company is growing.

Is.

It's evolving in terms of the speed at which we should do it but we have a clear path.

To take share over other type of insecticide or lower in market and high-end mixtures to reinforce the position on the high end market for Rolex appear, so we will adjust. But there is nothing jumping at us right now. Requiring a change in her strategy.

We do believe if we project ourselves.

Andrew Sandifer: Thank you.

Thank you.

Operator: Our next question comes from Joel Jackson with BMO Capital. Joel, your line is open.

By 2028.

We have a very high level of comfort in the.

Our next question comes from Joel Jackson with BMO Capital Markets. Joel, your answer is open.

Andrew Sandifer: Good morning, Pierre and team. Pierre, describing, you know, a lot going on obviously at the company. You're talking about, you know, redoing maybe how you manufacture for a larger portfolio. You're exiting at India, you've got things with Maxcre going on next year. You made some management changes recently. As you go through all this, you know, are you starting to think about, you know, in a fragmented industry and crop chems, you know, does FMC have the right structure? Should it be acquisitive? Should you start looking at if you should partner with others? I mean, tell me about how deep your thoughts are going here into all the scenarios that could happen.

The way the company should be operating because at that time.

Between biological.

For new active ingredients and sales at here.

We will have a very significant growth portfolio.

Which will be.

Generating strong growth and profit.

Uh, good morning teer and team. Um, here describing, you know, a lot going on, obviously the company you're talking about, you know, redoing maybe how you manufacture for live or portfolio, you're um, exiting at India, you've got the things of an expert going on. Next year, you're made management changes recently.

With all of the work we are doing and it's very heavy lifting in 2026.

As you go through all this, you know, are you starting to think about, you know,

We would be able to protect.

Our core portfolio.

Including <unk> two grew at market speed.

And I think at that time, but by this time in 2028, when our growth portfolio is significant enough.

Pierre Brondeau: And I think at that time, by this time in 2028, when our growth portfolio is significant enough, we will be in a position to be a company which will be looking much more like the company we were in 2018, and the model is showing it. The very positive thing is we know how to change a manufacturing process and structure, and we have a very solid demand on the new technologies which are coming at us, including the ones which are not commercialized yet, where we have demand from customers to get accelerated registration from authorities. So I think that is fairly straightforward.

In a fragmented industry and crop can, you know, does FMC have the right structure? Should it be inquisitive? Should you start looking at it if you should partner with others? I mean, tell me about how deep your thoughts are going here and to all the scenarios that could happen.

Pierre Brondeau: Yes, I think we believe we have a clear path on where the company is going. It's evolving in terms of the speed at which we should do it, but we have a clear path. We do believe if we project ourselves by 2028, we have a very high level of comfort in the way the company should be operating. Because at that time between biologicals, the four new active ingredients and sales appear, we will have a very significant growth portfolio which will be generating strong growth and profit. With all of the work we are doing, and it's very heavy lifting. In 2026 we would be able to protect a core portfolio including Rynaxypyr to grow at market speed.

We will be in position to be a company, which will be looking much more like the company we were.

yes, I I think

we we we believe we have a clear path.

On on where the company is going.

In 2018.

Intermodal is showing it.

Uh, it's

The.

It's evolving in terms of the speed that we should do it, but we have a clear path.

The very positive thing is we know how to change in manufacturing.

Uh, we believe if we project ourselves.

Process and structure and we have a very solid demand.

By 2028.

Uh, we have a very high level of comfort.

On the new technologies, which are coming at us.

in the way, the company should be operating, because at that time,

Between biological.

Including the one which are not commercialized yet.

We have demand from customers to get accelerated registration from authorities. So.

The 4 new active ingredients and sales appear.

We will have a very significant growth portfolio.

I think that is fairly fairly straightforward.

I have to be completely honest.

Pierre Brondeau: I have to be completely honest, the difficult period for us is 2026, while we are readjusting the company, to be able to get to the point I just described. Partnership, I think partnership will be more and more, and also on the technology front, will be more and more, part of the way we do business. We could see, for example, the discussion and partnership we have on Fluindapyr with Corteva. This is working very well, and I think it's gonna be the name of the game for crop chemical company in the future.

The difficult periods for US is 2026, while we are readjusting the companies.

With all of the work we are doing and it's very heavy lifting in 2026.

We would be able to protect a core portfolio.

To be able to get to the point I just described.

Including Rolex appear.

Pierre Brondeau: I think at that time, by this time in 2028, when a growth portfolio is significant enough, we will be in a position to be a company which will be looking much more like the company we were in 2018. The model is showing it. The very positive thing is we know how to change a manufacturing process and structure, and we have a very solid demand on the new technologies which are coming at us, including the ones which are not commercialized yet, where we have demand from customers to get accelerated registration from authorities. I think that is fairly, fairly straightforward. I have to be completely honest. The difficult period for us is 2026, while we are readjusting the company to be able to get to the point I just described, partnership.

Partnership.

Uh huh.

I think partnership will be more and more.

To grow at Market speed and I think at that time. But by this time in 2028, when a growth portfolio is significant enough,

And and also on the technology front.

Be more and more part of the way we do business.

We could see for example, the discussion and the partnership we haven't fluent appear with Kosovo and this is working very well and I think it's going to be the name of the game for crop chemical company in the future.

We will be in a position to be a company which will be looking much more like the company we were in in 2018.

And the model is showing it.

Uh, the

The very positive thing is we know how to change a Manufacturing.

The next comes from Patrick Cunningham with a company Citigroup Patrick Your line is now open.

Operator: The next question comes from Patrick Cunningham with the company Citigroup. Patrick, your line is now open.

Uh, process and structure. And we have a very solid demand.

On the new technologies that are coming at us.

Hi, Good morning, Thanks for taking my question what are the cost reduction initiatives you have.

Patrick Cunningham: Hi, good morning. Thanks for taking my question. What are the cost reduction initiatives you have in Asia following the India sale? And would exiting more countries in the region, like, potentially be on the table for you or perhaps other regions as well?

In Asia, following the India sale and would exiting more countries in the region.

Uh including the 1, which are not commercialized yet where where we have demand from customers to get accelerated registration from authorities. So I think that is fairly fairly straightforward

Now on the table for you or perhaps other regions as well.

I have to be completely honest.

And you didn't get the first part I can answer the second part.

Pierre Brondeau: ... I didn't get the first part there. I can answer the second part. Right now, India is an isolated case and is the only country for which we intend to take the type of action we are taking. Other countries in Asia, or even for that matter, in Latin America, are, for historical reasons, not performing as well as we would like, but all of them are fixable, and we have a plan for them. So, to the second part of your question, India is, is an isolated case and the only one for which we are intending to, to have a sale process. The first part of the question?

And right now India is an isolated case.

The difficult period for us is 2026 while we are. Readjusting the companies.

And is the only country for which.

Uh, to be able to get to the point. I just described.

We intend to take the type of action we are taking.

ownership.

Pierre Brondeau: I think partnership will be more and more, and also on the technology front will be more and more part of the way we do business. We could see, for example, the discussion and partnership we had on fluindapyr with Corteva. This is working very well, and I think it's going to be the name of the game for crop protection companies in the future.

Uh,

I think partnerships will be more and more.

Other countries in Asia, or even for that matter in Latin America.

and and also on the technology front,

Will be more and more uh part of the way we do business.

For historical reasons.

Not performing as well as we would like but all of them.

Uh, we could see, for example, the discussion and partnership we had on food and appearance with CA.

<unk> stable and we have a plan for them.

So to the second part of your question.

This is working very well and I think it's going to be the name of the game for for crop Chemical Company in the future.

Yeah. He is he's.

Operator: Next comes from Patrick Cunningham with Citigroup. Patrick, your line is now open.

Is a nice related case and the only one for which we are intending to.

To have a sale process.

Next question, comes from Patrick Cunningham with the company City Group, Patrick Eline is now open.

Andrew Sandifer: Hi, good morning. Thanks for taking my question. What are the cost reduction initiatives you have in Asia following the India sale? Would exiting more countries in the region potentially be on the table for you or perhaps other regions as well?

First part of your question what are some of the cost actions in Asia.

Aleksey Yefremov: What are some of the cost actions in Asia?

Patrick Cunningham: What are some of the cost actions in Asia?

And in Asia.

Yeah.

Pierre Brondeau: Oh, cost action in Asia. It's quite simple. I mean, think about a region where India reached multi-hundred peak sales with quite a large infrastructure to support India, to support manufacturing there, to support research and development, and was a very significant part of the region. We have not fundamentally changed the way that region is structured with way significant sales. You do not need the same R&D as before. You do not need the same marketing, you do not need the same sales structure, and you don't need the same administration. So, we need to resize the region to something which is much smaller than what it used to be.

It's quite simple I mean think think about a region where.

India reached multi hundred.

Peak sales with quite a quite a large infrastructure to support <unk>.

Hi, good morning. Thanks for taking my question. What are the cost reduction initiatives you have in Asia following the India sale? Would exiting more countries in the region, like potentially be on the table for you, or perhaps other regions as well?

Pierre Brondeau: I didn't get the first part. I can answer the second part right now. India is an isolated case and is the only country for which we intend to take the type of action we are taking. Other countries in Asia, or even for that matter in Latin America, are for historical reason not performing as well as we would like, but all of them are fixable and we have a plan for them. To the second part of your question, India is an isolated case and the only one for which we are intending to have a sale process. First part of the question, what are.

I didn't get the first part, the I can answer the second part.

To support manufacturing there to support research and development.

And was a very significant part of the reason we have not fundamentally changed the way that region is structured.

Uh, right now, India is an isolated case.

and, uh, is the only country for which

Wait significant sales.

We intend to take the type of action. We are taking

uh,

You do not need the same R&D.

As a as before.

Other countries in Asia, or even for that matter in Latin America.

We don't need the same marketing utilizing the <unk> sales structure and you don't need the same administration. So.

Uh, for historical reason.

We need to resize the region to something which is much smaller than what it used to be.

Not performing as well as we would like, but all of them are fixable and we have a plan for them. So, uh, to the second part of your question, uh, India is

Our next question comes from Chris Parkinson with the company Wolfe Research Chris Your line is now open.

is an isolated case and the only 1 for which we are intending to

Operator: Our next question comes from Chris Parkinson with the company Wolfe Research. Chris, your line is now open.

uh, to have a self process.

Andrew Sandifer: Some of the cost actions in Asia?

Pierre Brondeau: Oh, cost action in Asia. It's quite simple. I mean, think about a region where India reached multi hundred pixels with quite, quite a large infrastructure to support India, to support manufacturing there, to support research and development and was a very significant part of the region. We have not fundamentally changed the way that region is structured. With way significant sales, you do not need the same R&D, you do not need the same marketing, you do not need the same sales structure, and you don't need the same administration. We need to resize the region to something which is much smaller than what it used to be.

First part of the question, what are some of the cost?

Great. Thank you so much appeared.

Oh, cost action in Asia.

Chris Parkinson: Great. Thank you so much. Pierre, you know, there's still a lot of things in terms of your R&D pipeline that have significant value, and obviously we're seeing good things out of Isoflex, Fluindapyr. There are a lot of things in 2026, 2027, I believe, in the pheromones, nematodes. I mean, there's a lot of things that are still there that, you know, the market perhaps is overlooking. You know, what is your willingness or aversion to potentially trying to monetize or partner with some of the, the value that's there, just to alleviate some of the pressures that the company is currently facing? Is that at all on the table, or is that something that's just, you know, not a consideration? Thank you.

Uh,

There's still a lot of things in terms of your R&D pipeline that have significant value and obviously, we're seeing good things otherwise a flexible and appear there are a lot of things in 'twenty six 'twenty seven I believe in the pheromones episodes I mean, there's a lot of things that are still there that the market perhaps overlooking.

it's quite simple. I mean, think think about a reason where

uh, India reached multi hundred

Uh, pixels with a quite quite a large infrastructure to support India.

To support manufacturing there to support research and development.

What is your willingness or at version two potentially trying to monetize or partner with some of the value. That's there just to alleviate some of the pressures that the company is currently facing is that at all on the table or is that something that's just not a consideration. Thank you.

Uh, and was a very significant part of the region. We have not fundamentally changed.

The way that region is structured, with way significant sales, you do not need the same R&D.

Interesting question Chris.

Pierre Brondeau: Interesting question, Chris. As you can guess, this is something we talked about. It always depends where the product stands in its development, and it could generate a different type of partnership. At this stage, we are excluding selling any of the active ingredients which are the closest to commercialization, and you named the four of them, as well as some which are in the pipeline, getting closer to commercialization. But we very much consider partnership with other companies. We had multiple inbounds in terms of interest for those molecules, and it is something we would not ignore.

As you can guess this is something we talked about.

It always depends.

Uh, as uh, as before, you do not need the same marketing, you do not need the same sales structure, and you don't need the same administration. So um,

Where the products since then in its development.

And.

We need to resize the region to something that is much smaller than what it used to be.

It could generate a different type of partnership.

Operator: Our next question comes from Chris Parkinson with the company Wolfe Research. Chris, your line is now open. Great.

At this stage.

We are excluding.

Selling.

Andrew Sandifer: Thank you so much, Pierre. You know, there's still a lot of things in terms of your R&D pipeline that have significant value, and obviously we're seeing good things out of Isoflex, Londipeer. There are a lot of things in 2026, 2027, I believe, in the pheromones, nematodes. I mean, there's a lot of things that are still there that the market perhaps is overlooking. You know, what is your willingness or aversion to potentially trying to monetize or partner with some of those value that's there just to alleviate some of the pressures that the company is currently facing? Is that at all on the table, or is that something that's just not a consideration? Thank you.

Our next question comes from Chris Parkinson with the company Wolfe research. Chris, your line is not open.

Any of the.

Active ingredients, which are the closest to commercialization and you named the four of them as well as some which are in the pipeline getting closer to commercialization, but.

We very much consider.

Partnership.

With other companies.

We had multiple inbounds in term of interest for those molecules.

And it is something we would not ignore I couldnt tell what will be the structure of those partnerships.

Pierre Brondeau: I could not tell what will be the structure of those partnerships, but it's absolutely something which is on the table, but not selling the molecule and us not participating in the growth of those molecules, which represent the future of FMC.

But it's absolutely something which is on the table, but not not selling the selling the molecule.

That's there. Just to alleviate some of the pressures that the company's currently facing, is that at all on the table, or is that something that just, you know, not a consideration? Thank you.

Pierre Brondeau: Interesting question, Grace. As you can guess, this is something we talk about. It always depends where the product stands in its development and it could generate different types of partnership. At this stage, we are excluding selling any of the active ingredients which are the closest to commercialization and you named the four of them as well as some which are in the pipeline getting closer to commercialization. We very much consider partnership with other companies. We had multiple inbounds in terms of interest for those molecules and it is something we would not ignore. I could not tell what would be the structure of those partnerships, but it's absolutely something which is on the table, not selling the molecule and us not participating in the growth of those molecules which represent the future of FMC.

And us not participating.

Is there anything question Grace?

Um,

In the growth of those molecules, which represent the future of ethics.

As you can guess this is something we talked about.

Very helpful color. Thank you.

It always depends.

Chris Parkinson: Very helpful color. Thank you.

Our next question comes from Olesky and familiar with the company Keycorp Olesky. Your line is now open.

Where the product S stand in in its development.

Operator: Our next question comes from Aleksey Yefremov with the company KeyCorp. Aleksey, your line is now open.

And, uh, it could generate, uh, different types of partnerships at this stage.

Thanks, Good morning, a hop here in light of this shifting environment. You you had a goal of keeping right actually peer earnings flat next year, what are your latest thoughts on that.

Uh, we are excluding.

Aleksey Yefremov: Thanks. Good morning. Pierre, in light of this shifting environment, you had a goal of keeping Rynaxypyr earnings flat next year. What are your latest thoughts on that?

selling any of the

active ingredients.

At this stage.

Pierre Brondeau: At this stage, we believe it is still a valid strategy. We've been starting the implementation of a strategy at the end of Q3, not because we are seeing a major change in the way generics are penetrating new territories because we are still proprietary, patent protected. But we see consumers, rightfully so, putting their purchases of Rynaxypyr on hold until they see what will be happening early 2026, when generics will be coming. So for us, it's a prelude to what we will be facing in 2026. Hence, we put in place, started to put in place our strategy plan from Rynaxypyr.

we sell the closest to commercialization and you name the the 4 of them as well as some which are in the pipeline getting closer to commercialization, but

We believe it is a valid strategy.

We very much consider.

Partnership.

With other companies.

We've been studying the.

The implementation of our strategy at the end of the third quarter.

we had multiple in Bonds in term of interest for those molecules

No because we are seeing a major change in the way engineering cell penetrating.

and it is something we would not ignore. I could not tell what would be the structure of those partnership.

New territories, because we are still a battle.

Patent protected.

But we see consumers.

But uh it's absolutely something which is on the table but not not selling, the selling, the molecule and and us not participating.

Rightfully so.

Putting their purchase of <unk> on hold until they see what will be happening early 'twenty six when generics will be coming.

In the growth of those molecules, which represent the future of ethics.

Andrew Sandifer: Very helpful color. Thank you.

Very helpful color. Thank you.

Operator: The next question comes from Aleksey Yefremov with BMO Capital. Aleksey, your line is now open.

So for US, it's it's a prelude to to what we will be facing in 2026.

The next question comes from aleski, your formal with the company, key Corp. Let's get your line. Is that open?

Pierre Brondeau: Thanks.

Andrew Sandifer: Good morning, Pierre. In light of this shifting environment, you had a goal of keeping Rynaxypyr earnings flat next year. What are your latest thoughts on that?

Hence we've put in place.

Started to put in place our.

<unk> been from <unk>, and if you look at the third quarter number.

Pierre Brondeau: If you look at the Q3 number, it's demonstrating that what we do and the way we think about it is valid. Sales are flat, volumes are up, and price is down, which is the fundamental of what we want to do when we implement that strategy in 2026. So at this stage, we are staying with the same plan. We have no indication that we should change it, but as I said before, we shall adapt depending upon how this is unfolding.

It's demonstrating that what what we do and the way we think about it is valid.

Uh, thanks, uh, good morning. Uh, up here in light of this, uh, shifting environment. You, you had a goal of keeping right, active here, earning flat next year, uh, where you leave the spots on that.

Pierre Brondeau: At this stage, we believe it is still a valid strategy. We've been starting the implementation of a strategy at the end of the third quarter, not because we are seeing a major change in the way generics are penetrating new territories, because we are still patent protected, but we see customers, rightfully so, putting their purchase of Rynaxypyr on hold until they see what will be happening early 2026 when generics will be coming. For us, it's a prelude to what we will be facing in 2026. Hence, we put in place, started to put in place, our strategic plan for Rynaxypyr, and if you look at the third quarter number, it's demonstrating that what we do and the way we think about it is valid.

Uh, at this stage, at this stage.

Sales.

Uh,

Flat.

We, We Believe.

Volumes.

RF and price is down which is the fundamental of what we want to do when we implement that strategy in 2026.

It is still a valid strategy.

Um,

At this stage, we are staying with the same plan.

we've been studying the implementation of a strategy at the end of the third quarter.

We have no indication then we should change it but as I said before.

Uh, not because we are seeing a major change in the way, uh, generics are penetrating.

We shall adapt depending upon this is unfolding.

Uh, new territories because we are still Pro patent protected.

But we see customers.

Rightfully so.

The next question comes from Vincent Andrews with the company Morgan Stanley Vincent Your line is now.

Operator: The next question comes from Vincent Andrews with the company Morgan Stanley. Vincent, your line is now.

Thank you good morning, everyone, Andrew could I ask you on the $2 $3 billion of.

Uh, putting their purchase of runx appear on hold until they see what will be happening. Early 26, when Juniors will be coming.

Vincent Andrews: Thank you. Good morning, everyone. Andrew, could I ask you on the $2.3 billion of non-India receivables, is there a way you can help us understand what percentage of those have already been consumed by a grower, and you're waiting for them to monetize the crop to be paid, versus what percentage is maybe still on the supply chain and hasn't been sold yet, and could still be subject to some type of price rebate if market prices have moved negatively versus what that inventory is originally sold for?

So for for us, it's, it's a Prelude.

Non.

India receivables is there a way you can help us understand what percentage of those have already been consumed by a grower and you're waiting for them to monetize their crop to be paid versus what percentage is maybe still on the supply chain that hasnt been sold yet and could still be subject to some type of price rebate if market prices.

To, to what we will be facing in 2026.

And we put in place.

Uh, we started to put in place our strategic plan from an X perspective. And if you look at the third quarter numbers,

Pierre Brondeau: Sales are flat, volumes are up, and price is down, which is the fundamental of what we want to do when we implement that strategy in 2026. At this stage, we are staying with the same plan. We have no indication that we should change it. As I said before, we shall adapt depending upon how this is unfolding.

Uh, it’s demonstrating that what we do and the way we think about it is valid.

Negatively versus what that <unk>.

Uh, sales.

Are flat.

Inventory was originally sold for.

Volumes.

Interesting question, not something I can directly answer today events.

Andrew Sandifer: Interesting question. Not something I can directly answer today, Vincent. I think certainly, you know, as we look at where we are with working capital right now, you know, we're building working capital as we sell into the new seasons in Latin America in particular. We are seeing an increase, like for like, excluding India in receivables, year on year. So we are watching that closely, with what's going on with competitive pressure around terms, et cetera. But I'm not able to characterize the receivables in the way that you're asking today.

I think certainly as we look at where we are we're working capital right now.

Our up is and price is down, which is the fundamental of what we want to do when we implement that strategy in 2026. So.

We're building working capital as we can we sell it to the new seasons in Latin America in particular.

at this stage, we are staying with the same plan.

We are seeing an increase like for like excluding India and receivables year on year.

We have no indication that we should change it. But as I said before,

We shall adapt depending upon how this is unfolding.

So we are watching that closely.

Operator: The next question comes from Vincent Andrews with Morgan Stanley. Vincent, your line does not.

With what's going on with competitive pressure on terms et cetera.

Not able to characterize that the receivables and the way that you're asking today.

Next question comes from Vincent Andrews with the company Morgan Stanley Vincent. Your line is not

Andrew Sandifer: Thank you. Good morning everyone. Andrew, could I ask you on the $2.3 billion of non-India receivables, is there a way you can help us understand what percentage of those have already been consumed by a grower and you're waiting for them to monetize the crop to be paid versus what percentage is maybe still on the supply chain and hasn't been sold yet and could still be subject to some type of price rebate if market prices have moved negatively versus what that inventory was originally sold for? Interesting question, not something I can directly answer today, Vincent. I think certainly as we look at where we are with working capital right now, we're building working capital as we sell into the new seasons in Latin America in particular. We are seeing an increase like-for-like excluding India in receivables year on year.

Just sort of general proportion certainly in this part of the year and as we get to year end, you should expect that 40% 50% of our receivables are in Latin America, which is seasonally appropriate as we are growing.

Andrew Sandifer: I think just, you know, some general proportions, certainly, you know, in this part of the year, and as we get to year end, you should expect that 40% to 50% of our receivables are, are in Latin America, which is seasonally appropriate as we are growing. You know, we, we have seen some delays in collection in Latin America, particularly around the, the monetization of the cotton crop, as we've talked about. That's led to a modest uptick in, in past dues, but past dues of short duration, you know, in that 30- to 60-day window, as we're waiting for farmers to, to get paid by, the commodity houses for, for their crop.

We have seen some delays in collection in Latin America, particularly around them the monetization of the cotton crop as we've talked about that's led to a modest uptick and past dues, but a pass through is a short duration. They are in that 30 to 60 day window as we're waiting for farmers to get paid by the commodity houses for their crop.

Uh, thank you, uh, good morning, everyone. Um, Andrew, could I ask you on the 2.3 billion dollars of, of of, uh, non, uh, India receivables, is there a way you can help us understand what percentage of those have already been consumed by a grower and you're waiting for them to monetize the crop to be paid versus what percentage is maybe. Still on the supply chain and hasn't been sold yet and could still be subject to some type of price rebate. If if if market prices uh, have have moved negatively versus, uh, what that inventory is originally sold for.

So I think that that's a little bit of color. There are working capital budgets that certainly would reinforce.

Andrew Sandifer: So, you know, that's a little bit of color there on working capital, but just, I certainly would reinforce, working capital receivable is something to get an incredible amount of focus from the management team as we navigate what's going on with market dynamics today.

Working capital receivable or something to get it incredibly incredible amount of focus from the management team as we navigate what's going on with market dynamics today.

Final question comes from Josh Spector with a company UBS Josh Your line is now open.

Operator: Final question comes from Josh Spector with the company UBS. Josh, your line is now open.

Andrew Sandifer: We are watching that closely with what's going on, with competitive pressure on terms, etc., but not able to characterize the receivables in the way that you're asking today. I think just, you know, some general proportions certainly, you know, in this part of the year and as we get to year end, you should expect that 40% to 50% of our receivables are in Latin America, which is seasonally appropriate as we're growing. We have seen some delays in collection in Latin America, particularly around the monetization of the cotton crop as we've talked about. That's led to a modest uptick in past dues, but past dues of short duration in that 30 to 60 day window as we're waiting for farmers to get paid by the commodity houses for their crop.

Hi, Good morning, two quick ones, one kind of related to the pass one slightly just around fourth quarter.

Josh Spector: Yeah. Hi, good morning. I have two quick ones. One kind of related to the past one slightly, just around Q4 cash from ops. I mean, basically, you need about a $700 million uplift, it looks like, to hit your guidance. I mean, is that all network and capital production and collections, and do you have visibility towards that with high confidence? And then second, kind of related, more around inventory dynamics. With weaker demand and more generics pressure, are you taking inventory action that's impacting Q4 EBITDA, and is there any carryover risk of that into 2026? Thanks.

Cash from ops, I mean, basically you need about $700 million uplift it looks like to hit your guidance.

Is that all networking capital production in collections and do you have visibility towards that with high confidence and then second kind of related is more around inventory dynamics with weaker demand and more generic pressure are you taking inventory action, that's impacting fourth quarter EBITDA and is.

Are there any carryover risk of that into 2026. Thanks.

So like Q4 is always a profoundly positive cash flow quarter for us with the seasonality of working capital, including significant prepayments in the U S business.

Andrew Sandifer: So look, Q4 is always a profoundly positive cash flow quarter for us, with the seasonality of working capital, including significant prepayments in the US business. So the proportions you're pointing to, yeah, I mean, we're, you're looking at a, you know, a circa $700 million free cash flow fourth quarter. That is in no way unprecedented and very much our normal seasonality. Certainly we are watching closely the pressures on terms, and particularly the mix of our sales that are sold sort of on a cash basis collected within the quarter, that could impact that. You know, to your second question around inventory, you know, we do expect to end the year with a bit more inventory now than what we had originally contemplated because of lower sales.

Andrew Sandifer: That's a little bit of color there on working capital, but just that certainly would reinforce working capital receivable is something to get an incredible amount of focus from the management team as we navigate what's going on with market dynamics today.

So the proportions you pointing to yes, I mean were you looking at.

Circa $700 million free cash flow fourth quarter.

Lie, uh, with with what's going on with competitive pressure on terms Etc. Uh but I'm not able to to to characterize that the receivables and the way that you're asking today. Um, I think just, you know, some general proportions certainly, you know, in this part of the year and as we get to year end you should expect that 40. 50% of our receivables are are in Latin America, which is seasonally appropriate as we are growing. Um, you know, we we have seen some delays in collection in Latin, America, particularly around the, the monetization of the cotton crop as we've talked about that led to a modest uptick in, in past news, but past dues of short duration, you know, in that 30 to 60 day window, um, as we're waiting for Farmers to, to get paid by, uh, the commodity houses, for, for their crop. Um, so, you know, that's a little bit of color there. I work in capital, but just I certainly would reinforce, uh, working capital receivable is something to get an incredibly amount. Incredible amount of focus from the management team as we navigate, what's going on with market dynamics today,

That is in no ways unprecedented and very much our normal seasonality.

Operator: Final question comes from Josh Spector with the company UBS. Josh, your line is not open.

Certainly we are watching closely the pressures on terms and particularly the mix of our sales that are sold are sort of on a on a cash basis collected within the quarter.

Final question comes from Josh Specter with the company. UBS Joshua land is that open?

Andrew Sandifer: Hi, good morning. I have two quick ones. One kind of related to the past, one lightly just around fourth quarter cash from Ops. I mean basically you need about a $700 million uplift it looks like to hit your guidance. I mean is that all net working capital reduction and collections and do you have visibility towards that with high confidence? Then second kind of related more around inventory dynamics with weaker demand and more generics pressure. Are you taking inventory action that's impacting fourth quarter EBITDA and is there any carryover risk of that into 2026?

That could impact that.

To your second question around inventory.

We do expect end the year with a bit more inventory now than what we had originally contemplated because of lower sales.

We have a very long supply chain, so a lot of.

Andrew Sandifer: You know, we have a very long supply chain, so a lot of the active ingredient for those sales was already procured and is in inventory. May not be all the way into formulated product, but, you know, we have that material on hand. And that does impact the way we were thinking about the working capital build that's traditional in the first half of the year for us, in terms of what production we need to have, materials available to meet the sales plan for the first half of next year.

The active ingredient for those sales was already procured and has an inventory may not be all the way into formulated product, but we have that material on hand.

Yeah. Hey, good morning. Uh I have 2, quick ones 1 kind of related to the the past 1 slightly just around fourth quarter um cash from opiates. I mean basically you need about a 700 million uplift. It looks like to hit your guidance. I mean, is that all Network and capital production and Collections? And do you have visibility towards that with the time?

That does impact the way we are thinking about the working capital build it's traditional in the first half of the year for us in terms of what production we need to have.

Operator: Thanks.

Confidence and then second kind of related more around inventory, Dynamics, with weaker demand and more. Generic pressure, are you taking inventory action? That's impacting, fourth quarter, ebita and is there any carryover risk of that into 2026? Thanks.

Materials available to meet the sales plan for the first half of next year.

Andrew Sandifer: Q4 is always a profoundly positive cash flow quarter for us with the seasonality of working capital, including significant prepayments in the U.S. business. The proportions you're pointing to, yeah, I mean you're looking at a circa $700 million free cash flow fourth quarter that is in no way unprecedented and very much our normal seasonality. Certainly we are watching closely the pressures on terms and particularly the mix of our sales that are sold sort of on a cash basis collected within the quarter that can impact that. To your second question around inventory, we do expect to end the year with a bit more inventory now than what we had originally contemplated because of lower sales. We have a very long supply chain. A lot of the active ingredient for those sales was already procured and is in inventory.

Too early to be too specific on that but certainly what's happening with inventory right now will influence our production plans for our product needed in this in the first half and will impact what that the magnitude of the working capital build in the first half will be next year.

Andrew Sandifer: So too early to be too specific on that, but certainly, you know, what's happening with inventory right now will influence our production plans for product needed in the first half, and will impact, you know, what the magnitude of the working capital build in the first half will be next year.

This concludes the FMC Corporation conference call. Thank you for attending you may now disconnect.

Josh Spector: Okay, thank you.

Operator: This concludes the FMC Corporation conference call. Thank you for attending. You may now disconnect.

So look Q4 is always a profoundly positive cash flow order for us with the seasonality of working capital, including significant prepayments in the US business. Um so the proportions you're pointing to yeah I mean we're you're looking at a a you know, a circus. 700 million dollar, free cash flow, fourth quarter uh that that is in no way is unprecedented and very much our normal seasonality.

Andrew Sandifer: It may not be all the way into formulated product, but we have that material on hand and that does impact the way we are thinking about the working capital build that's traditional in the first half of the year for us in terms of what production we need to have materials available to meet the sales plan for the first half of next year. It is too early to be too specific on that, but certainly what's happening with inventory right now will influence our production plans for product needed in the first half and will impact what the magnitude of the working capital build in the first half will be next year.

Um, certainly, we are watching closely the pressures on on terms and particularly the mix of our sales that are sold, sold around a, on a cash basis collected within the quarter, uh, that can impact that, uh, you know, to your second question around inventory. Um, you know, we do expect in in the year with a bit more inventory. Now than what we had originally contemplated because of lower sales, you know, we have a very long supply chain. So a lot of uh, the active ingredient for those sales was already procured. And is inventory. May not be all the way into formulated product but you know, we we have that material on hand um and that does impact the way we are thinking about the working capital build that's traditional in the first half of the year for us. In terms of what production we need to have um materials available to meet sales plan for the first half of next year. Um so if 2

Really be to specific on that but certainly, you know, what's happening with inventory. Right now will influence our production plans that for product needed in this in the first half and will impact, you know what, that the magnitude of the working capital build in the first half, will be next year.

Operator: This concludes the FMC Corporation conference call. Thank you for attending. You may now disconnect.

This concludes the FMC Corporation conference call, thank you for attending. You may now disconnect

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