Albemarle Corporation

What they do

Albemarle transforms resources into critical ingredients, with Energy Storage (lithium salts and spodumene) as its largest business and Specialties as a second segment. It holds interests in the Talison joint venture in Australia and the Windfield Holdings joint venture, whose separate financial statements were filed via a 10-K/A amendment. In the first quarter of 2026 it sold controlling ownership in the Refining Solutions business and its 50% interest in the Eurecat S.A. joint venture for combined pre-tax cash proceeds of about $648 million, while retaining 100% of Performance Catalysts Solutions.

Revenue drivers

• Energy Storage — Lithium salts and spodumene sold by volume and price; generated $1.28 billion of Q2 2026 net sales, about 73% of the $1.74 billion quarterly total, at 65 kT LCE and $19.53/kg average realized price.
• Specialties — Specialty chemicals with price and volume growth; management raised the full-year 2026 net sales outlook to $1.4-$1.6 billion and adjusted EBITDA outlook to $275-$325 million on stronger-than-expected performance.
• Performance Catalysts Solutions — Retained 100% after the Refining Solutions divestiture; the sold Refining Solutions business had contributed $215.3 million of net sales and $32.9 million of adjusted EBITDA in Q2 2025.
• Joint venture interests — Equity earnings and dividends from Talison and the newly formed refining solutions JV, in which Albemarle initially holds a 49% interest; an increased Talison dividend aided Q2 2026 operating cash flow conversion.

Recent performance

Q2 2026 net sales were $1.74 billion, up 31% year over year, driven by Energy Storage pricing (+73% in segment sales terms) and Specialties price +11% and volume +8%. Net income attributable to Albemarle was $480 million, or $3.52 per diluted share, versus a $0.16 loss per share a year earlier, and adjusted EBITDA of $858 million rose 155%. Energy Storage adjusted EBITDA was $723.5 million (+229%) on 65 kT LCE sold at $19.53/kg, while Specialties adjusted EBITDA rose 61%. Cash from operations was $710 million with free cash flow of $638 million and 83% operating cash flow conversion, helped by Talison dividend timing and non-recurring working capital benefits.

Strategy

Management is deleveraging, using roughly $648 million of Q1 2026 divestiture proceeds to repay certain senior notes, and cutting costs, with $100 million of year-to-date run-rate cost and productivity improvements against a $100-$150 million full-year target. Full-year 2026 capital expenditure guidance was reduced to approximately $500 million on capital efficiency improvements. The company is prioritizing its highest-value organic growth opportunities, particularly lithium capacity for EV and energy storage demand, while managing cost discipline and pricing and product development. It also points to long-term supply agreements with key strategic customers as evidence of its position as a preferred lithium partner.

Risks

• Lithium price volatility — Energy Storage revenue and profitability swing sharply with lithium prices, which have driven the shift from 2022-2023 profits to 2024-2025 net losses of $1.18 billion and $510.6 million.
• Operational disruption at Talison — A fire at the Talison CGP3 facility occurred on June 9, 2026, and the company says it expects minimal Energy Storage volume impact partly due to better-than-planned Wodgina output.
• Portfolio transition execution — The Q1 2026 sale of Refining Solutions and the Eurecat JV removed businesses that provided $215.3 million of net sales and $32.9 million of adjusted EBITDA in Q2 2025, and the retained 49% JV stake introduces new equity-method exposure.
• Tariffs, trade policy and global growth — Management cites trade policies and tariffs, slow and uneven global growth, currency exchange volatility and crude oil prices as conditions that could affect its business.

Outlook

Management expects growing lithium demand from EVs and energy storage systems, supported by declining battery costs, battery performance gains, supply-chain investment and favorable e-mobility and renewable-energy policy. It raised the full-year 2026 Specialties outlook to $1.4-$1.6 billion of net sales and $275-$325 million of adjusted EBITDA, expects minimal Energy Storage volume impact from the CGP3 fire, and cut full-year capital expenditure to about $500 million. The company says it remains focused on sales volume growth, portfolio value through pricing and product development, cost management and capital discipline amid ongoing price volatility.