Albemarle Reports Second Quarter 2025 Results
CHARLOTTE, N.C., July 30, 2025 /PRNewswire/ -- Albemarle Corporation (NYSE:ALB), a global leader in providing essential elements for mobility, energy, connectivity and health, today announced its results for the second quarter ended June 30, 2025.
Second-Quarter 2025 and Recent Highlights(Unless otherwise stated, all percentage changes represent year-over-year comparisons)
Net sales of $1.3 billion, including volume growth in Energy Storage (+15%) and Specialties (+6%).
Net income of $23 million, or ($0.16) per diluted share attributable to common shareholders; adjusted diluted earnings per share attributable to common shareholders of $0.11.
Adjusted EBITDA of $336 million; up sequentially due to improved fixed cost absorption, on-going cost savings, and Energy Storage product mix.
Cash from operations of $538 million in the first half of 2025 increased $73 million compared to the prior-year period. We now expect to achieve positive free cash flow for the full year 2025 assuming current lithium market pricing persists.
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 and $700 million.
Maintaining full-year outlook considerations; the previously published $9/kg scenario ranges are expected to apply assuming current lithium market pricing persists for the remainder of the year.
"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 tocommon shareholders(a)(b)
$ 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 $1.3 billion compared to $1.4 billion for the prior-year quarter, a decline of 7% driven primarily by lower pricing in Energy Storage, offset by higher volumes in Energy Storage and Specialties. Adjusted EBITDA of $336 million declined by $50 million from the prior-year quarter as lower input costs and on-going cost reduction efforts helped mostly offset lower lithium pricing. Net income attributable to Albemarle of $23 million increased year-over-year by $211 million, due primarily to a prior-year period after-tax charge of $215 million related to capital project asset write-offs and associated contract cancellation costs.
The effective income tax rate for the second quarter of 2025 was (380.0)% compared to 6.2% in the same period of 2024. On an adjusted basis, the effective income tax rates were 159.9% and (25.9)% for the second quarters of 2025 and 2024, respectively, with the increase primarily due to changes in geographic income mix and the impact of tax valuation allowances in Australia and China.
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 $718 million, a decrease of $112 million, or 14%, due to lower pricing (-28%). Volumes were up 15% thanks to record production from our integrated conversion network partially offset by reduced tolling volumes. Adjusted EBITDA of $220 million decreased $63 million, as lower input costs and on-going cost reduction efforts mostly offset lower lithium pricing.
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 $352 million, an increase of $17 million, or 5%, primarily due to higher volumes (+6%), which more than offset lower prices (-1%). Adjusted EBITDA of $73 million increased $19 million versus the prior-year quarter due to higher demand and decreased manufacturing costs related to productivity initiatives.
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 $261 million, down 2% compared to the prior-year quarter as higher prices (+2%) were offset by lower volumes (-4%), primarily due to the timing of sales. Adjusted EBITDA of $29 million decreased $9 million, driven by lower volumes and higher input costs.
2025 Outlook Considerations
Total Corporate Outlook ConsiderationsAlbemarle is maintaining its prior full-year outlook considerations for Energy Storage, which are based on observed lithium market price scenarios. Notably, the previously published $9/kg LCE ranges are expected to apply assuming current lithium market pricing persists for the remainder of the year, due to successful execution of cost and productivity improvements, operational excellence including Energy Storage project ramps, and strong first-half demand from Energy Storage contract customers. Ketjen and Specialties outlook considerations are also unchanged.
The table below reflects expected outcomes for the total company based on recently observed lithium market price scenarios, and are unchanged from the prior quarter. Ranges reflect the anticipated direct impact of announced tariffs as of June 30, 2025. Ranges are based on variation in sales volume and mix, including a projected increase in Energy Storage sales volumes of 0% to 10% in 2025 compared to 2024. All three scenarios assume flat market pricing flowing through Energy Storage's current contract book. Scenarios also assume spodumene pricing averages 10% of the lithium carbonate equivalent (LCE) price, while other costs are assumed to be constant.
Total Corporate FY 2025E
Including Energy Storage Scenarios
Observed market price case(a)
Q2 2025 average
H1 2024 range
Q4 2023 average
Average lithium market price ($/kg LCE)(a)
~$9
$12-15
~$20
Net sales
$4.9 - $5.2 billion
$5.3 - $6.1 billion
$6.5 - $7.0 billion
Adjusted EBITDA(b)
$0.8 - $1.0 billion
$1.2 - $1.8 billion
$2.5 - $2.7 billion
(a)
Price represents blend of relevant market pricing including spot and regional indices for the periods referenced.
(b)
The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. See "Additional information regarding Non-GAAP Measures" for more information.
Energy Storage Market Price Scenarios
Energy Storage FY 2025E
Observed market price case(a)
Q2 2025 average
H1 2024 range
Q4 2023 average
Average lithium market price ($/kg LCE)(a)
~$9
$12-15
~$20
Net sales
$2.5 - $2.6 billion
$2.9 - $3.5 billion
$4.2 - $4.5 billion
Adjusted EBITDA
$0.6 - $0.7 billion
$1.0 - $1.5 billion
$2.2 - $2.4 billion
Equity in net income of unconsolidated investments(net of tax)(b)
$0.2 - $0.3 billion
$0.3 - $0.5 billion
$0.6 - $0.7 billion
(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 ConsiderationsSpecialties 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
$1.3 - $1.5 billion
Specialties adjusted EBITDA
$210 - $280 million
Ketjen net sales
$1.0 - $1.1 billion
Ketjen adjusted EBITDA
$120 - $150 million
Other Corporate Outlook ConsiderationsAlbemarle expects its 2025 capital expenditures to be between $650 and $700 million, down approximately 60% from $1.7 billion in 2024. This level of spending reflects in part a timing impact and a continued prioritization on sustaining existing assets and resources. Reduced corporate costs reflects cost savings and foreign exchange gains to date.
Other Corporate FY 2025E
Capital expenditures
$650 - $700 million
Depreciation and amortization
$630 - $670 million
Adjusted effective tax rate(a)
(40)% - 25%
Corporate costs(b)
$40 - $70 million
Interest and financing expenses
$180 - $210 million
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 DeploymentCash from operations of $538 million in the first half of 2025 increased $73 million compared to the prior-year period. We now expect to achieve positive free cash flow for the full year 2025 assuming current lithium market pricing persists for the remainder of the year. Capital expenditures of $302 million decreased by $732 million versus the prior-year period, reflecting the impact of decisions that stopped or slowed spending and the completion of capacity expansions in Energy Storage and Specialties. We are reducing our full-year 2025 capital expenditure outlook to between $650 and $700 million.
Balance Sheet and LiquidityAs of June 30, 2025, Albemarle had estimated liquidity of approximately $3.4 billion, including $1.8 billion of cash and cash equivalents, $1.5 billion available under our revolver and $114 million available under other credit lines. Total debt was $3.6 billion, representing a net debt to adjusted EBITDA ratio (as defined in our credit agreement) of approximately 2.3 times.
Earnings Call
Date:
Thurs., July 31, 2025
Time:
8:00 AM Eastern time
Dial-in (U.S.):
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 AlbemarleAlbemarle 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)
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 StatementsThis 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
$ 1,329,992
$ 1,430,385
$ 2,406,873
$ 2,791,121
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 unconsolidated investments
(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)
