Albemarle Reports Second Quarter 2025 Results
Albemarle (NYSE: ALB) reported Q2 2025 results with net sales of $1.3 billion, down 7% year-over-year, and net income of $23 million. The company achieved adjusted diluted EPS of $0.11, up from $0.04 in Q2 2024.
Key highlights include 15% volume growth in Energy Storage and 6% growth in Specialties. The company generated $538 million in operating cash flow for H1 2025 and expects positive free cash flow for full-year 2025. Albemarle has reduced its 2025 capital expenditure outlook to $650-700 million, down approximately 60% from 2024.
The company maintained its previous outlook based on current lithium pricing of ~$9/kg LCE, projecting full-year net sales of $4.9-5.2 billion and adjusted EBITDA of $0.8-1.0 billion.
Albemarle (NYSE: ALB) ha comunicato i risultati del secondo trimestre 2025 con ricavi netti di 1,3 miliardi di dollari, in calo del 7% rispetto all'anno precedente, e un utile netto di 23 milioni di dollari. L'azienda ha registrato un utile diluito rettificato per azione di 0,11 dollari, in aumento rispetto a 0,04 dollari nel Q2 2024.
I punti salienti includono una crescita del volume del 15% nel settore Energy Storage e un incremento del 6% nelle Specialità. L'azienda ha generato 538 milioni di dollari di flusso di cassa operativo nel primo semestre 2025 e prevede un flusso di cassa libero positivo per l'intero anno 2025. Albemarle ha ridotto le previsioni di spesa in conto capitale per il 2025 a 650-700 milioni di dollari, circa il 60% in meno rispetto al 2024.
L'azienda ha mantenuto le previsioni precedenti basate sul prezzo attuale del litio di circa 9 dollari per kg LCE, prevedendo ricavi netti annuali tra 4,9 e 5,2 miliardi di dollari e un EBITDA rettificato tra 0,8 e 1,0 miliardi di dollari.
Albemarle (NYSE: ALB) reportó resultados del segundo trimestre de 2025 con ventas netas de 1.300 millones de dólares, una disminución del 7% interanual, y un ingreso neto de 23 millones de dólares. La compañía logró un EPS diluido ajustado de 0,11 dólares, frente a 0,04 dólares en el Q2 de 2024.
Los aspectos destacados incluyen un crecimiento del volumen del 15% en Almacenamiento de Energía y un incremento del 6% en Especialidades. La empresa generó 538 millones de dólares en flujo de caja operativo en el primer semestre de 2025 y espera flujo de caja libre positivo para todo el año 2025. Albemarle ha reducido su previsión de gasto de capital para 2025 a 650-700 millones de dólares, aproximadamente un 60% menos que en 2024.
La compañía mantuvo su perspectiva previa basada en el precio actual del litio de ~9 dólares/kg LCE, proyectando ventas netas anuales de 4.900 a 5.200 millones de dólares y un EBITDA ajustado de 0,8 a 1.0 mil millones de dólares.
Albemarle (NYSE: ALB)는 2025년 2분기 실적을 발표하며 순매출 13억 달러를 기록해 전년 동기 대비 7% 감소했고, 순이익은 2,300만 달러를 기록했습니다. 회사는 조정 희석 주당순이익(EPS) 0.11달러를 달성해 2024년 2분기의 0.04달러에서 증가했습니다.
주요 성과로는 에너지 저장 부문에서 15%의 물량 성장과 특수제품 부문에서 6% 성장이 포함됩니다. 회사는 2025년 상반기에 5억 3,800만 달러의 영업 현금 흐름을 창출했으며, 2025년 전체에 대해 긍정적인 자유 현금 흐름을 기대하고 있습니다. Albemarle는 2025년 자본 지출 전망을 6억 5,000만~7억 달러로 줄였으며, 이는 2024년 대비 약 60% 감소한 수치입니다.
회사는 현재 리튬 가격 약 9달러/kg LCE를 기준으로 이전 전망을 유지하며, 연간 순매출 49억~52억 달러와 조정 EBITDA 8억~10억 달러를 예상하고 있습니다.
Albemarle (NYSE : ALB) a publié ses résultats du deuxième trimestre 2025 avec des ventes nettes de 1,3 milliard de dollars, en baisse de 7 % par rapport à l'année précédente, et un bénéfice net de 23 millions de dollars. La société a réalisé un bénéfice dilué ajusté par action de 0,11 dollar, en hausse par rapport à 0,04 dollar au T2 2024.
Les points clés incluent une croissance de 15 % du volume dans le stockage d'énergie et une augmentation de 6 % dans les spécialités. La société a généré 538 millions de dollars de flux de trésorerie opérationnel pour le premier semestre 2025 et prévoit un flux de trésorerie disponible positif pour l'ensemble de l'année 2025. Albemarle a réduit ses prévisions de dépenses d'investissement pour 2025 à 650-700 millions de dollars, soit une baisse d'environ 60 % par rapport à 2024.
La société a maintenu ses prévisions précédentes basées sur un prix actuel du lithium d'environ 9 dollars/kg LCE, prévoyant des ventes nettes annuelles entre 4,9 et 5,2 milliards de dollars et un EBITDA ajusté entre 0,8 et 1,0 milliard de dollars.
Albemarle (NYSE: ALB) meldete die Ergebnisse für das zweite Quartal 2025 mit Nettoverkäufen von 1,3 Milliarden US-Dollar, ein Rückgang von 7 % im Jahresvergleich, und einem Nettoeinkommen von 23 Millionen US-Dollar. Das Unternehmen erzielte ein bereinigtes verwässertes Ergebnis je Aktie (EPS) von 0,11 US-Dollar, gegenüber 0,04 US-Dollar im zweiten Quartal 2024.
Wichtige Highlights sind ein Volumenwachstum von 15 % im Bereich Energiespeicherung und ein Wachstum von 6 % im Bereich Spezialitäten. Das Unternehmen generierte im ersten Halbjahr 2025 einen operativen Cashflow von 538 Millionen US-Dollar und erwartet für das Gesamtjahr 2025 einen positiven freien Cashflow. Albemarle hat seine Kapitalausgabenprognose für 2025 auf 650-700 Millionen US-Dollar gesenkt, was etwa 60 % weniger als 2024 entspricht.
Das Unternehmen bestätigte seine vorherige Prognose basierend auf dem aktuellen Lithiumpreis von ca. 9 US-Dollar pro kg LCE und erwartet Nettoverkäufe für das Gesamtjahr von 4,9 bis 5,2 Milliarden US-Dollar sowie ein bereinigtes EBITDA von 0,8 bis 1,0 Milliarden US-Dollar.
- Operating cash flow increased by $73 million to $538 million in H1 2025
- Achieved 100% of $400 million cost and productivity improvement target
- Record production levels in integrated conversion network with 15% volume growth in Energy Storage
- Specialties segment showed strong performance with 5.1% sales growth and 34.7% EBITDA growth
- Successfully reduced capital expenditure by 60% year-over-year
- Net sales declined 7% year-over-year to $1.3 billion
- Energy Storage revenue dropped 13.5% due to 28% lower pricing
- Adjusted EBITDA decreased 12.9% to $336.5 million
- Ketjen segment showed declining performance with 1.8% lower sales and 24.5% lower EBITDA
- Challenging tax situation with negative effective tax rate of -380%
Insights
Albemarle's Q2 shows operational improvements amid continued lithium price challenges, with positive free cash flow now expected for 2025.
Albemarle delivered $1.3 billion in Q2 2025 revenue, down
The earnings results reveal two competing narratives. On one hand, the company is successfully executing operational improvements, achieving its full
Volume growth presents a bright spot, with Energy Storage volumes up
Cash flow metrics show material improvement, with cash from operations reaching
The company maintains its previous outlook considerations based on the
Second-Quarter 2025 and Recent Highlights
(Unless otherwise stated, all percentage changes represent year-over-year comparisons)
- Net sales of
$1.3 billion 15% ) and Specialties (+6% ). - Net income of
$23 million $0.16 $0.11 - Adjusted EBITDA of
$336 million - Cash from operations of
$538 million $73 million - On June 27, Albemarle and Standard Industries concluded the early redemption of preferred shares in a W.R. Grace subsidiary for an aggregate value of
$307 million - Achieved a
100% run-rate against the high end of our cost and productivity improvement target, or$400 million - Reducing full-year 2025 capital expenditure outlook to between
$650 $700 million - Maintaining full-year outlook considerations; the previously published
$9
"We delivered strong second quarter results and are maintaining our previous outlook considerations assuming current lithium market pricing persists," said Kent Masters, Chairman and CEO. "Due to recent cash management actions, we now expect to generate positive free cash flow for the year. Our team has established a track record of operational excellence and has successfully executed proactive measures to reduce operating and capital costs while preserving our long-term competitive position."
Second Quarter 2025 Results
In millions, except per share amounts | Q2 2025 | Q2 2024 | $ Change | % Change | |||
Net sales | $ 1,330.0 | $ 1,430.4 | $ (100.4) | (7.0) % | |||
Net income (loss) attributable to Albemarle Corporation | $ 22.9 | $ (188.2) | $ 211.1 | 112.2 % | |||
Adjusted EBITDA(a) | $ 336.5 | $ 386.4 | $ (49.9) | (12.9) % | |||
Diluted loss per share attributable to common shareholders | $ (0.16) | $ (1.96) | $ 1.80 | 91.8 % | |||
Non-recurring and other unusual items(a) | 0.27 | 1.99 | |||||
Adjusted diluted earnings per share attributable to | $ 0.11 | $ 0.04 | $ 0.07 | 175.0 % |
(a) | See Non-GAAP Reconciliations for further details. |
(b) | Totals may not add due to rounding. |
Net sales for the second quarter of 2025 were
The effective income tax rate for the second quarter of 2025 was (380.0)% compared to
Energy Storage Results
In millions | Q2 2025 | Q2 2024 | $ Change | % Change | |||
Net Sales | $ 717.7 | $ 830.1 | $ (112.5) | (13.5) % | |||
Adjusted EBITDA | $ 219.7 | $ 283.0 | $ (63.3) | (22.4) % |
Energy Storage net sales for the second quarter of 2025 were
Specialties Results
In millions | Q2 2025 | Q2 2024 | $ Change | % Change | |||
Net Sales | $ 351.6 | $ 334.6 | $ 17.0 | 5.1 % | |||
Adjusted EBITDA | $ 73.0 | $ 54.2 | $ 18.8 | 34.7 % |
Specialties net sales for the second quarter of 2025 were
Ketjen Results
In millions | Q2 2025 | Q2 2024 | $ Change | % Change | |||
Net Sales | $ 260.8 | $ 265.7 | $ (4.9) | (1.8) % | |||
Adjusted EBITDA | $ 28.6 | $ 37.8 | $ (9.3) | (24.5) % |
Ketjen net sales for the second quarter of 2025 were
2025 Outlook Considerations
Total Corporate Outlook Considerations
Albemarle is maintaining its prior full-year outlook considerations for Energy Storage, which are based on observed lithium market price scenarios. Notably, the previously published
The table below reflects expected outcomes for the total company based on recently observed lithium market price scenarios, and are unchanged from the prior quarter. Ranges reflect the anticipated direct impact of announced tariffs as of June 30, 2025. Ranges are based on variation in sales volume and mix, including a projected increase in Energy Storage sales volumes of
Total Corporate FY 2025E Including Energy Storage Scenarios | |||
Observed market price case(a) | Q2 2025 average | H1 2024 range | Q4 2023 average |
Average lithium market price ($/kg LCE)(a) | |||
Net sales | |||
Adjusted EBITDA(b) | |||
(a) | Price represents blend of relevant market pricing including spot and regional indices for the periods referenced. |
(b) | The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. See "Additional information regarding Non-GAAP Measures" for more information. |
Energy Storage Market Price Scenarios
Energy Storage FY 2025E | |||
Observed market price case(a) | Q2 2025 average | H1 2024 range | Q4 2023 average |
Average lithium market price ($/kg LCE)(a) | |||
Net sales | |||
Adjusted EBITDA | |||
Equity in net income of unconsolidated investments | |||
(a) | Price represents blend of relevant market pricing including spot and regional indices for the periods referenced. |
(b) | Included in adjusted EBITDA on a pre-tax basis. |
Specialties and Ketjen Outlook Considerations
Specialties outlook reflects volume growth in key end markets led by pharma, automotive, and oilfield, partially offset by weakness in building and construction.
Ketjen outlook assumes strong fluidized catalytic cracking (FCC) volume offset by lower clean fuel technologies (CFT) volume due to order timing.
Segment FY 2025E | |
Specialties net sales | |
Specialties adjusted EBITDA | |
Ketjen net sales | |
Ketjen adjusted EBITDA |
Other Corporate Outlook Considerations
Albemarle expects its 2025 capital expenditures to be between
Other Corporate FY 2025E | |
Capital expenditures | |
Depreciation and amortization | |
Adjusted effective tax rate(a) | (40)% - |
Corporate costs(b) | |
Interest and financing expenses | |
Weighted-average common shares outstanding (diluted) | 118 million |
(a) | Adjusted effective tax rate dependent on lithium market prices and geographic income mix |
(b) | FY 2025E outlook includes FX impact in the first half of 2025 |
Cash Flow and Capital Deployment
Cash from operations of
Balance Sheet and Liquidity
As of June 30, 2025, Albemarle had estimated liquidity of approximately
Earnings Call
Date: | Thurs., July 31, 2025 |
Time: | 8:00 AM Eastern time |
Dial-in ( | 1-800-590-8290 |
Dial-in (International): | 1-240-690-8800 |
Conference ID: | ALBQ2 |
The company's earnings presentation and supporting material are available on Albemarle's website at https://investors.albemarle.com.
About Albemarle
Albemarle Corporation (NYSE: ALB) is a global leader in transforming essential resources into critical ingredients for mobility, energy, connectivity, and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. A reliable and high-quality global supply of lithium and bromine allows us to deliver advanced solutions for our customers. Learn more about how the people of Albemarle are enabling a more resilient world at albemarle.com and on X (formerly Twitter) @AlbemarleCorp.
Albemarle regularly posts information to www.albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, Securities and Exchange Commission ("SEC") filings and other information regarding the company, its businesses and the markets it serves.
Forward-Looking Statements
This press release contains statements concerning our expectations, anticipations and beliefs regarding the future, which constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties, often contain words such as "anticipate," "believe," "estimate," "expect," "guidance," "intend," "may," "outlook," "scenario," "should," "would," and "will". Forward-looking statements may include statements regarding: our 2025 company and segment outlooks, including expected market pricing of lithium and spodumene and other underlying assumptions and outlook considerations; expected capital expenditure amounts and the corresponding impact on cash flow; expected impact of tariffs and other trade restrictions; market pricing of lithium carbonate equivalent and spodumene; plans and expectations regarding other projects and activities, cost reductions and accounting charges, and all other information relating to matters that are not historical facts. Factors that could cause Albemarle's actual results to differ materially from the outlook expressed or implied in any forward-looking statement include: changes in economic and business conditions; changes in trade policies and tariffs; financial and operating performance of customers; timing and magnitude of customer orders; fluctuations in lithium market prices; production volume shortfalls; increased competition; changes in product demand; availability and cost of raw materials and energy; technological change and development; fluctuations in foreign currencies; changes in laws and government regulation; regulatory actions, proceedings, claims or litigation; cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; geopolitical conflicts and political unrest; trade policies and tariffs; changes in inflation or interest rates; volatility in the debt and equity markets; acquisition and divestiture transactions; timing and success of projects; performance of Albemarle's partners in joint ventures and other projects; changes in credit ratings; and the other factors detailed from time to time in the reports Albemarle files with the SEC, including those described under "Risk Factors" in Albemarle's most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q, which are filed with the SEC and available on the investor section of Albemarle's website (investors.albemarle.com) and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release. Albemarle assumes no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
Albemarle Corporation and Subsidiaries Consolidated Statements of Income (Loss) (In Thousands Except Per Share Amounts) (Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net sales | |||||||
Cost of goods sold | 1,133,116 | 1,440,963 | 2,053,698 | 2,762,761 | |||
Gross profit (loss) | 196,876 | (10,578) | 353,175 | 28,360 | |||
Selling, general and administrative expenses | 132,457 | 166,423 | 255,959 | 327,799 | |||
Restructuring charges and asset write-offs | 4,448 | 294,840 | 3,385 | 328,376 | |||
Research and development expenses | 12,444 | 20,770 | 26,543 | 44,302 | |||
Operating profit (loss) | 47,527 | (492,611) | 67,288 | (672,117) | |||
Interest and financing expenses | (49,939) | (35,187) | (98,916) | (73,156) | |||
Other (expenses) income, net | (6,559) | 33,666 | 3,691 | 83,567 | |||
Loss before income taxes and equity in net income of | (8,971) | (494,132) | (27,937) | (661,706) | |||
Income tax expense (benefit) | 34,094 | (30,660) | 30,116 | (34,381) | |||
Loss before equity in net income of unconsolidated investments | (43,065) | (463,472) | (58,053) | (627,325) | |||
Equity in net income of unconsolidated investments (net of tax) | 78,258 | 286,878 | 142,544 | 467,378 | |||
Net income (loss) | 35,193 | (176,594) | 84,491 | (159,947) | |||
Net income attributable to noncontrolling interests | (12,296) | (11,604) | (20,246) | (25,803) | |||
Net income (loss) attributable to Albemarle Corporation | 22,897 | (188,198) | 64,245 | (185,750) | |||
Mandatory convertible preferred stock dividends | (41,687) | (41,688) | (83,375) | (53,272) | |||
Net loss attributable to Albemarle Corporation common shareholders | $ (18,790) | $ (229,886) | $ (19,130) | $ (239,022) | |||
Basic loss per share attributable to common shareholders | $ (0.16) | $ (1.96) | $ (0.16) | $ (2.03) | |||
Diluted loss per share attributable to common shareholders | $ (0.16) | $ (1.96) | $ (0.16) | $ (2.03) | |||
Weighted-average common shares outstanding – basic | 117,665 | 117,528 | 117,634 | 117,489 | |||
Weighted-average common shares outstanding – diluted | 117,665 | 117,528 | 117,634 | 117,489 | |||
Albemarle Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In Thousands) (Unaudited) | |||
June 30, | December 31, | ||
2025 | 2024 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,806,829 | $ 1,192,230 | |
Trade accounts receivable | 766,433 | 742,201 | |
Other accounts receivable | 113,305 | 238,384 | |
Inventories | 1,640,925 | 1,502,531 | |
Other current assets | 177,695 | 166,916 | |
Total current assets | 4,505,187 | 3,842,262 | |
Property, plant and equipment | 12,792,572 | 12,523,368 | |
Less accumulated depreciation and amortization | 3,539,678 | 3,191,898 | |
Net property, plant and equipment | 9,252,894 | 9,331,470 | |
Investments | 890,384 | 1,117,739 | |
Other assets | 737,587 | 504,711 | |
Goodwill | 1,670,927 | 1,582,714 | |
Other intangibles, net of amortization | 234,948 | 230,753 | |
Total assets | $ 17,291,927 | $ 16,609,649 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Accounts payable to third parties | $ 737,317 | $ 793,455 | |
Accounts payable to related parties | 121,464 | 150,432 | |
Accrued expenses | 414,884 | 467,997 | |
Current portion of long-term debt | 444,911 | 398,023 | |
Dividends payable | 61,331 | 61,282 | |
Income taxes payable | 169,877 | 95,275 | |
Total current liabilities | 1,949,784 | 1,966,464 | |
Long-term debt | 3,178,111 | 3,118,142 | |
Postretirement benefits | 32,103 | 31,930 | |
Pension benefits | 121,638 | 116,192 | |
Other noncurrent liabilities | 1,144,798 | 819,204 | |
Deferred income taxes | 366,509 | 358,029 | |
Commitments and contingencies | |||
Equity: | |||
Albemarle Corporation shareholders' equity: | |||
Common stock | 1,177 | 1,176 | |
Mandatory convertible preferred stock | 2,235,105 | 2,235,105 | |
Additional paid-in capital | 3,001,531 | 2,985,606 | |
Accumulated other comprehensive loss | (364,544) | (742,062) | |
Retained earnings | 5,367,257 | 5,481,692 | |
Total Albemarle Corporation shareholders' equity | 10,240,526 | 9,961,517 | |
Noncontrolling interests | 258,458 | 238,171 | |
Total equity | 10,498,984 | 10,199,688 | |
Total liabilities and equity | $ 17,291,927 | $ 16,609,649 | |
Albemarle Corporation and Subsidiaries Selected Consolidated Cash Flow Data (In Thousands) (Unaudited) | |||
Six Months Ended June 30, | |||
2025 | 2024 | ||
Cash and cash equivalents at beginning of year | $ 1,192,230 | $ 889,900 | |
Cash flows from operating activities: | |||
Net income (loss) | 84,491 | (159,947) | |
Adjustments to reconcile net income (loss) to cash flows from operating activities: | |||
Depreciation and amortization | 330,485 | 262,030 | |
Non-cash restructuring and asset write-offs | — | 276,013 | |
Stock-based compensation and other | 17,068 | 15,439 | |
Equity in net income of unconsolidated investments (net of tax) | (142,544) | (467,378) | |
Dividends received from unconsolidated investments and nonmarketable | 67,765 | 270,926 | |
Pension and postretirement expense | 3,504 | 2,529 | |
Pension and postretirement contributions | (9,934) | (9,428) | |
Realized loss on investments in marketable securities | — | 33,746 | |
Unrealized loss on investments in marketable securities | 4,984 | 23,777 | |
Deferred income taxes | (38,907) | (129,087) | |
Working capital changes | (96,762) | 468,594 | |
Noncurrent liability changes and other, net | 318,030 | (122,066) | |
Net cash provided by operating activities | 538,180 | 465,148 | |
Cash flows from investing activities: | |||
Capital expenditures | (302,252) | (1,034,593) | |
Proceeds from sale of property and equipment | 23,751 | — | |
Proceeds from sale of available for sale debt securities | 288,000 | — | |
Proceeds from settlement of foreign currency forward contracts, net | 171,262 | 12,991 | |
Sales of marketable securities, net | 2,971 | 82,578 | |
Investments in equity investments and nonmarketable securities | (120) | (148) | |
Net cash provided by (used in) investing activities | 183,612 | (939,172) | |
Cash flows from financing activities: | |||
Proceeds from issuance of mandatory convertible preferred stock | — | 2,236,750 | |
Repayments of long-term debt and credit agreements | (29,103) | (56,453) | |
Proceeds from borrowings of long-term debt and credit agreements | 19,488 | 56,453 | |
Other debt repayments, net | (2,427) | (627,390) | |
Dividends paid to common shareholders | (95,244) | (93,916) | |
Dividends paid to mandatory convertible preferred shareholders | (83,375) | (39,376) | |
Dividends paid to noncontrolling interests | (18,169) | (18,137) | |
Proceeds from exercise of stock options | 1,186 | 86 | |
Withholding taxes paid on stock-based compensation award distributions | (2,941) | (10,677) | |
Other | (55) | (2,758) | |
Net cash (used in) provided by financing activities | (210,640) | 1,444,582 | |
Net effect of foreign exchange on cash and cash equivalents | 103,447 | (30,231) | |
Increase in cash and cash equivalents | 614,599 | 940,327 | |
Cash and cash equivalents at end of period | $ 1,806,829 | $ 1,830,227 | |
Certain 2024 values reflect presentation revisions related to gains and losses on foreign currency cash flow hedges and previously disclosed capital expenditures resulting from misclassification errors. The net effect of the revisions is approximately a
Albemarle Corporation and Subsidiaries Consolidated Summary of Segment Results (In Thousands) (Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net sales: | |||||||
Energy Storage | $ 717,656 | $ 830,110 | |||||
Specialties | 351,560 | 334,600 | 672,574 | 650,665 | |||
Ketjen | 260,776 | 265,675 | 492,078 | 509,448 | |||
Total net sales | |||||||
Adjusted EBITDA: | |||||||
Energy Storage | $ 219,725 | $ 282,979 | $ 406,080 | $ 480,975 | |||
Specialties | 72,977 | 54,175 | 131,643 | 99,356 | |||
Ketjen | 28,567 | 37,836 | 67,155 | 59,815 | |||
Total segment adjusted EBITDA | 321,269 | 374,990 | 604,878 | 640,146 | |||
Corporate | 15,206 | 11,370 | (1,259) | 37,450 | |||
Total adjusted EBITDA | $ 336,475 | $ 386,360 | $ 603,619 | $ 677,596 | |||
See accompanying non-GAAP reconciliations below.
Additional Information regarding Non-GAAP Measures
It should be noted that adjusted net income (loss) attributable to Albemarle Corporation, adjusted net income (loss) attributable to Albemarle Corporation common shareholders, adjusted diluted income (loss) per share attributable to common shareholders, non-operating pension and other post-employment benefit ("OPEB") items per diluted share, non-recurring and other unusual items per diluted share, adjusted effective income tax rates, EBITDA, adjusted EBITDA (on a consolidated basis), EBITDA margin and adjusted EBITDA margin, and operating cash flow conversion are financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in
A description of other non-GAAP financial measures that Albemarle uses to evaluate its operations and financial performance, and reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found on the following pages of this press release, which is also is available on Albemarle's website at https://investors.albemarle.com. The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the company's results calculated in accordance with GAAP.
ALBEMARLE CORPORATION AND SUBSIDIARIES
Non-GAAP Reconciliations
(Unaudited)
See below for a reconciliation of adjusted net income attributable to Albemarle Corporation, adjusted net income (loss) attributable to Albemarle Corporation common shareholders, EBITDA and adjusted EBITDA (on a consolidated basis), which are non-GAAP financial measures, to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP. Adjusted net income (loss) attributable to Albemarle Corporation is defined as net income (loss) attributable to Albemarle Corporation before the non-recurring, other unusual and non-operating pension and other post-employment benefit (OPEB) items as listed below. The non-recurring and unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, certain litigation and arbitration costs and charges, and other significant non-recurring items. Adjusted net income (loss) attributable to Albemarle Corporation common stockholders is defined as adjusted net income (loss) attributable to Albemarle Corporation after mandatory convertible preferred stock dividends. EBITDA is defined as net income attributable to Albemarle Corporation before interest and financing expenses, income tax expense, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus or minus the proportionate share of Windfield Holdings income tax expense, non-recurring, other unusual and non-operating pension and OPEB items as listed below.
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
In thousands, except percentages | $ | % of | $ | % of | $ | % of | $ | % of | |||||||
Net income (loss) attributable to | $ (188,198) | $ (185,750) | |||||||||||||
Add back: | |||||||||||||||
Non-operating pension and | 169 | (336) | 294 | (687) | |||||||||||
Non-recurring and other unusual | 31,708 | 234,498 | 10,508 | 274,542 | |||||||||||
Adjusted net income attributable to | 54,774 | 45,964 | 75,047 | 88,105 | |||||||||||
Mandatory convertible preferred | (41,687) | (41,688) | (83,375) | (53,272) | |||||||||||
Adjusted net income (loss) | $ 4,276 | $ (8,328) | $ 34,833 | ||||||||||||
Adjusted diluted earnings (loss) | $ 0.11 | $ 0.04 | $ (0.07) | $ 0.30 | |||||||||||
Adjusted weighted-average | 117,691 | 117,703 | 117,634 | 117,685 | |||||||||||
Net income (loss) attributable | 1.7 % | $ (188,198) | (13.2) % | 2.7 % | $ (185,750) | (6.7) % | |||||||||
Add back: | |||||||||||||||
Interest and financing expenses | 49,939 | 3.8 % | 35,187 | 2.5 % | 98,916 | 4.1 % | 73,156 | 2.6 % | |||||||
Income tax expense (benefit) | 34,094 | 2.6 % | (30,660) | (2.1) % | 30,116 | 1.3 % | (34,381) | (1.2) % | |||||||
Depreciation and amortization | 168,731 | 12.7 % | 138,279 | 9.7 % | 330,485 | 13.7 % | 262,030 | 9.4 % | |||||||
EBITDA | 275,661 | 20.7 % | (45,392) | (3.2) % | 523,762 | 21.8 % | 115,055 | 4.1 % | |||||||
Proportionate share of Windfield | 33,150 | 2.5 % | 119,780 | 8.4 % | 58,476 | 2.4 % | 193,469 | 6.9 % | |||||||
Non-operating pension and OPEB items | 336 | — % | (337) | — % | 611 | — % | (662) | — % | |||||||
Non-recurring and other unusual items | 27,328 | 2.1 % | 312,309 | 21.8 % | 20,770 | 0.9 % | 369,734 | 13.2 % | |||||||
Adjusted EBITDA | 25.3 % | 27.0 % | 25.1 % | 24.3 % | |||||||||||
Net sales | $ 1,329,992 | $ 1,430,385 | $ 2,406,873 | $ 2,791,121 | |||||||||||
Non-operating pension and OPEB items, consisting of mark-to-market actuarial gains/losses, settlements/curtailments, interest cost and expected return on assets, are not allocated to Albemarle's operating segments and are included in the Corporate category. In addition, the company believes that these components of pension cost are mainly driven by market performance, and the company manages these separately from the operational performance of the company's businesses. In accordance with GAAP, these non-operating pension and OPEB items are included in Other (expenses) income, net. Non-operating pension and OPEB items were as follows (in thousands):
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Interest cost | $ 8,924 | $ 8,501 | $ 17,734 | $ 17,006 | |||
Expected return on assets | (8,588) | (8,838) | (17,123) | (17,668) | |||
Total | $ 336 | $ (337) | $ 611 | $ (662) | |||
In addition to the non-operating pension and OPEB items disclosed above, the company has identified certain other items and excluded them from Albemarle's adjusted net income (loss) calculation for the periods presented. A listing of these items, as well as a detailed description of each follows below (per diluted share):
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Restructuring charges and asset write-offs(1) | $ 0.02 | $ 1.84 | $ 0.01 | $ 2.07 | |||
Acquisition and integration related costs(2) | 0.01 | 0.01 | 0.02 | 0.02 | |||
Gain (loss) in fair value of public equity securities(3) | — | 0.12 | 0.03 | 0.47 | |||
Other(4) | 0.13 | (0.03) | 0.05 | (0.18) | |||
Tax related items(5) | 0.11 | 0.05 | (0.02) | (0.05) | |||
Total non-recurring and other unusual items | $ 0.27 | $ 1.99 | $ 0.09 | $ 2.33 | |||
(1) | The Company took several actions during 2024 as part of a broader effort that are focused on preserving its world-class resource advantages, optimizing its global conversion network, improving the Company's cost competitiveness and efficiency, reducing capital intensity and enhancing the Company's financial flexibility. Those actions included stopping construction of Kemerton Trains 3 and 4, as well as certain other capital projects, placing Kemerton Train 2 in care and maintenance and transitioning the Company's operating structure to a fully integrated functional model (excluding Ketjen). Additionally, as part of this restructuring plan, we placed the | |
(2) | Costs related to the acquisition, integration and divestitures for various significant projects, recorded in Selling, general and administrative expenses for the three and six months ended June 30, 2025 were | |
(3) | Gains (losses) of | |
(4) | Other adjustments for the three months ended June 30, 2025 included amounts recorded in: | |
• | Selling, general and administrative expenses - | |
• | Other (expenses) income, net - | |
After income taxes, these net losses totaled | ||
Other adjustments for the three months ended June 30, 2024 included amounts recorded in: | ||
• | Selling, general and administrative expenses - | |
• | Other (expenses) income, net - | |
After income taxes, these net gains totaled | ||
Other adjustments for the six months ended June 30, 2025 included amounts recorded in: | ||
• | Selling, general and administrative expenses - | |
• | Other (expenses) income, net - | |
After income taxes, these net losses totaled | ||
Other adjustments for the six months ended June 30, 2024 included amounts recorded in: | ||
• | Cost of goods sold - | |
• | Selling, general and administrative expenses - | |
• | Other (expenses) income, net - | |
After income taxes, these net gains totaled | ||
(5) | Included in Income tax expense for the three and six months ended June 30, 2025 are discrete net tax expenses of | |
Included in Income tax benefit for the three and six months ended June 30, 2024 are discrete net tax expenses of | ||
See below for a reconciliation of the adjusted effective income tax rate, the non-GAAP financial measure, to the effective income tax rate, the most directly comparable financial measure calculated and reporting in accordance with GAAP (in thousands, except percentages).
(Loss) income | Income tax expense | Effective income tax | |||
Three months ended June 30, 2025 | |||||
As reported | $ (8,971) | $ 34,094 | (380.0) % | ||
Non-recurring, other unusual and non-operating pension and OPEB | 27,664 | (4,213) | |||
As adjusted | $ 18,693 | $ 29,881 | 159.9 % | ||
Three months ended June 30, 2024 | |||||
As reported | $ (494,132) | $ (30,660) | 6.2 % | ||
Non-recurring, other unusual and non-operating pension and OPEB | 311,972 | 77,810 | |||
As adjusted | $ (182,160) | $ 47,150 | (25.9) % | ||
Six months ended June 30, 2025 | |||||
As reported | $ (27,937) | $ 30,116 | (107.8) % | ||
Non-recurring, other unusual and non-operating pension and OPEB | 21,381 | 10,579 | |||
As adjusted | $ (6,556) | $ 40,695 | (620.7) % | ||
Six months ended June 30, 2024 | |||||
As reported | $ (661,706) | $ (34,381) | 5.2 % | ||
Non-recurring, other unusual and non-operating pension and OPEB | 369,072 | 95,217 | |||
As adjusted | $ (292,634) | $ 60,836 | (20.8) % |
Contact: | |
invest@albemarle.com | 1.980.299.5700 |
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SOURCE Albemarle Corporation
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