FMC (FMC) risk factors, FY2025 10-K

Risks Related to Business and Industry Conditions

1. 01Our business faces competition, which could affect our ability to maintain or raise prices, successfully enter certain markets or retain our market position
2. 02Our markets are affected by climatic conditions, both chronic and acute, which could adversely impact our business
3. 03Unexpected market conditions may adversely impact our business due to the seasonal nature of the crop protection market and the geographic spread of our business
4. 04Changes in the regulatory environment, particularly in the U.S., Brazil, China, Argentina and the European Union, could adversely impact our ability to continue producing and/or selling certain products in our domestic and foreign markets or could increase the cost of producing and/or selling certain products
5. 05We do business in highly regulated industries. Changes in government regulations or trade association policies could adversely affect our results of operations
6. 06Varying definitions in regulations create regulatory uncertainty for our Company when adapting to new environmental rules, including changes to EPA requirements
7. 07We are subject to customer, consumer, shareholder and regulatory focus on sustainability, which may result in additional costs in order to meet new requirements, including adversely affecting our stock price, results of operations and access to capital
8. 08Our operating results could be significantly affected by the cost of commodities such as chemical raw material commodities, energy commodities, and harvested crop commodities
9. 09Changes in the price or availability of key raw materials for production of finished goods have had, and could again have, a material adverse impact on our businesses

Risks Related to our Business Operations

1. 10A global catastrophic event could have a material adverse effect on our business
2. 11As a chemical manufacturing company, our operations are subject to operational risks and have the potential to cause environmental or other damage as well as personal injury, or disrupt our ability to supply our customers, any of which could adversely affect our business, results of operations and cash flows
3. 12Interruptions at our key facilities may materially reduce the productivity of a particular manufacturing facility, or the profitability of our business as a whole
4. 13A shortage or unavailability of trucks, railcars, tugs, barges and ships for carrying our products and the raw materials we use in our business could result in customer dissatisfaction, loss of production or sales and higher transportation or equipment costs

Risks related to Acquisitions and Divestitures

1. 14Our exploration of strategic options may not result in entering into or completing transactions, when necessary, and the process of reviewing alternative strategic options or their conclusion could adversely affect our stock price
2. 15Our financial results could be harmed if we fail to implement the plan to divest the Company’s commercial business in India in the expected timeline
3. 16The FMC Lithium separation might be interpreted as a taxable event by the IRS or local taxing authorities, subjecting the Company to material tax liabilities

Risks related to Portfolio Management

1. 17Any failure to realize benefits from acquisitions, alliances or joint ventures or to achieve our portfolio management objectives could adversely affect future financial results
2. 18If we are unable to innovate and successfully introduce new products or new technologies or processes reduce the demand for our products or the price at which we can sell products, our profitability could be adversely affected
3. 19Our ability to compete effectively depends on our ability to protect our intellectual property rights
4. 20The composition of matter patents on our Rynaxypyr® active and Cyazypyr® active ingredients have expired in all major markets, which will affect our ability to compete effectively

Risks related to our Results of Operations

1. 21Our significant non-US operations expose us to global exchange rate fluctuations that could adversely impact our profitability
2. 22We could be subject to changes in our tax rates and the adoption of tax legislation or exposure to additional tax liabilities that may adversely affect our results of operations, financial condition, and cash flows
3. 23We may incur significant non-cash charges if our long-lived assets become impaired in the future
4. 24Significant changes in pension fund investment performance or assumptions relating to pension costs may have a material effect on the valuation of pension obligations, the funded status of pension plans and our pension cost
5. 25We may be subject to litigation, which may result in substantial costs and a diversion of management's attention and resources, which could harm our business
6. 26Our operations and the production and handling of our products involve significant risks and hazards. We are not fully insured against all potential hazards and risks incident to our business and as a result, may not be able to adequately cover our losses

Risks Related to the Ownership of Our Common Stock

1. 27Our stock price has experienced significant volatility and may continue to fluctuate substantially
2. 28We may fail to meet our publicly announced guidance or other expectations about our business, which could cause our stock price to decline
3. 29Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us more difficult, may diminish the value of our common stock, and may prevent attempts by our stockholders to replace or remove our current management
4. 30Future cash dividends are subject to final determination by our Board of Directors and are not guaranteed

General Risk Factors

1. 31Our results may be affected by changes in distribution channels, which could impact our ability to access the market
2. 32We may incur material costs and liabilities in complying with government regulations
3. 33We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar anti-bribery laws of other countries, as well as trade sanctions administered by the office of Foreign Assets Control and the Department of Commerce
4. 34Our success depends upon our ability to identify, attract, retain and develop key personnel and the succession of senior management
5. 35Our business has been and could continue to be adversely affected by economic and political changes in the markets where we compete
6. 36Our business is subject to risks associated with sourcing and manufacturing outside of the U.S. and risks from tariffs and/or international trade wars
7. 37Our information technology systems and systems operated by our vendors and third parties could be penetrated by outside parties’ intent on observing or gathering information, extracting information, corrupting information, deploying ransomware, or disrupting business processes
8. 38Artificial intelligence could subject the Company to loss through various internal and external risks
9. 39Disruptions in the global credit, financial and/or currency markets could limit our access to credit or otherwise harm our financial results, which could have a material adverse impact on our business
10. 40Our current indebtedness could have a negative impact on our liquidity or restrict our activities
11. 41Recent credit rating downgrades and potential future downgrades could increase our financing costs and limit access to capital
12. 42Deterioration in the global economy and worldwide credit and foreign exchange markets could adversely affect our business
13. 43Our financial results could be harmed if we are not successful in executing our strategy and initiatives in connection with our restructuring programs, including Project Foundation
14. 44The Company relies in many countries and in varying degrees on distribution channels to access the market and reach farmers or other end use customers