12:07 PM EST, 11/03/2025 (MT Newswires) -- FMC's (FMC) earnings are expected to fall below estimates due to falling volumes and pricing challenges in parts of the company's portfolio, Morgan Stanley said in a note Monday.

Morgan Stanley said FMC needs to show earnings before interest, taxes, depreciation, and amortization resilience in both its legacy and diamide businesses by 2026 while generating sufficient cash to handle its debt, which remains above four times EBITDA.

The investment firm's analysts now value FMC using a sum-of-the-parts approach, breaking the company into legacy products, diamides, and new patented molecules.

FMC's legacy segment is forecast to generate $2.07 billion in revenue and $275 million in EBITDA in 2026, reflecting pressure from generics and weak free cash flow, Morgan Stanley said.

Diamides, including Rynaxypyr and Cyazypyr, are expected to post $1.2 billion in sales and $300 million in EBITDA in 2026, down from their 2022 peak of $2.1 billion in sales, amid pricing erosion and post-patent uncertainty, according to the note.

New patented molecules may reach $600 million in revenue and $200 million in EBITDA by 2027, but Morgan Stanley analysts noted the company is not currently pursuing monetization beyond potential partnerships.

Morgan Stanley reduced its price target for FMC to $17 from $38 while maintaining an equal weight rating.

Shares of the company were down nearly 4% in recent trading.

Price: 14.55, Change: -0.62, Percent Change: -4.06