CHARLOTTE, N.C., May 6, 2026 /PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a global leader in providing essential elements for mobility, energy, connectivity and health, today announced its results for the first quarter ended March 31, 2026.
First Quarter 2026 and Recent Highlights
(Unless otherwise stated, all percentage changes represent year-over-year comparisons)
- Net sales of $1.4 billion, up 33% due to higher volumes and pricing in Energy Storage (volumes +14%, price +51%) and Specialties (volumes +7%, price +2%).
- Net income of $319 million, or $2.34 per diluted share attributable to common shareholders; Adjusted income of $2.95 per diluted share attributable to common shareholders(a).
- Adjusted EBITDA(a) of $664 million; up 148% due primarily to higher volumes and pricing in Energy Storage and Specialties and on-going cost and productivity improvements. Adjusted EBITDA expanded in both Energy Storage (+196%) and Specialties (+30%).
- Cash from operating activities of $346 million and free cash flow of $248 million(a). Capital expenditures of $99 million; maintaining full-year capital expenditure forecast of $550 million to $600 million.
- Delivered $40 million in cost and productivity improvements, on track to achieve full-year target of $100 million to $150 million.
- Closed sales of Eurecat joint venture and controlling stake in Ketjen for a combined $648 million net cash proceeds.
- Completed debt reduction actions that resulted in paying down $1.3 billion of outstanding debt and lowering the weighted average interest rate.
- Improved 2026 outlook considerations, including increased full-year Specialties outlook for both sales and adjusted EBITDA, primarily due to higher prices, and reduced interest expense following recent debt reduction actions. Maintaining enterprise outlook scenarios as these improvements are expected to offset higher costs related to supply chain disruptions in the Middle East.
(a) See Non-GAAP Reconciliations for further details. |
"Albemarle had a strong start to 2026, with net sales and adjusted EBITDA up year over year. Higher pricing and volumes in Energy Storage and Specialties, along with continued cost and productivity actions, were the key contributors to our results," said Kent Masters, Chairman and CEO. "We also took advantage of our successful cash and portfolio management actions to pay down debt in the quarter, further strengthening our balance sheet and financial flexibility. As the global operating environment remains uncertain, we are focused on the things within our control, including operational excellence, cost and productivity discipline, and cash generation, to enable long-term volume and earnings growth."
First Quarter 2026 Results
In millions, except per share amounts | Q1 2026 | Q1 2025 | $ Change | % Change | |||
Net sales | $ 1,428.7 | $ 1,076.9 | $ 351.9 | 32.7 % | |||
Net income attributable to Albemarle Corporation | $ 319.1 | $ 41.3 | $ 277.7 | 671.7 % | |||
Adjusted EBITDA(a) | $ 663.8 | $ 267.1 | $ 396.7 | 148.5 % | |||
Diluted income (loss) per share attributable to common shareholders | $ 2.34 | $ (0.00) | $ 2.34 | NM | |||
Non-operating pension and OPEB items(a) | 0.01 | — | |||||
Non-recurring and other unusual items(a) | 0.60 | (0.18) | |||||
Adjusted diluted income (loss) per share attributable to common shareholders(a)(b) | $ 2.95 | $ (0.18) | $ 3.13 | NM |
(a) | See Non-GAAP Reconciliations for further details. |
(b) | Totals may not add due to rounding. |
Net sales for the first quarter of 2026 were $1.4 billion compared to $1.1 billion for the prior-year quarter, up 33%, driven primarily by higher price and volume in both Energy Storage and Specialties. The divestiture of Ketjen reduced net sales by 4% versus prior year. Adjusted EBITDA of $664 million increased by $397 million from the prior-year quarter, primarily due to higher net sales and on-going cost and productivity improvements. Net income attributable to Albemarle of $319 million increased year over year by $278 million.
The effective income tax rate for the first quarter of 2026 was 8.5% compared to 21.0% in the same period of 2025. On an adjusted basis, the effective income tax rates were 5.2% and (42.8)% for the first quarters of 2026 and 2025, respectively, with the change primarily due to geographic income mix including higher income in jurisdictions with net operating losses or tax valuation allowances.
Energy Storage Results
In millions | Q1 2026 | Q1 2025 | $ Change | % Change | |||
Net Sales | $ 891.2 | $ 524.6 | $ 366.6 | 69.9 % | |||
Adjusted EBITDA | $ 551.4 | $ 186.4 | $ 365.0 | 195.9 % |
Energy Storage net sales for the first quarter of 2026 were $891 million, an increase of $367 million, or 70%, due to higher pricing (+51%) and volumes (+14%). Adjusted EBITDA of $551 million increased $365 million, or 196%, primarily due to higher lithium pricing, spodumene inventory timing, and cost and productivity improvements.
Specialties Results
In millions | Q1 2026 | Q1 2025 | $ Change | % Change | |||
Net Sales | $ 358.4 | $ 321.0 | $ 37.4 | 11.7 % | |||
Adjusted EBITDA | $ 76.1 | $ 58.7 | $ 17.5 | 29.8 % |
Specialties net sales for the first quarter of 2026 were $358 million, an increase of $37 million, or 12%, primarily due to higher volumes (+7%) and pricing (+2%). Adjusted EBITDA of $76 million increased $17 million, or 30%, due to higher net sales and cost and productivity improvements.
2026 Outlook Considerations
Total Corporate Outlook Considerations
The table below reflects expected outcomes for the total company based on recently observed lithium market price scenarios. Outlook ranges for each scenario are based on variation in sales volume and product mix. Energy Storage production volumes are expected to increase year over year. Sales volumes are expected to be approximately flat following inventory drawdowns that occurred in 2025. All three scenarios assume flat market pricing flowing through Energy Storage's current contract book which includes approximately 40% of salts volume on long-term agreements. Scenarios also assume that spodumene pricing averages 10% of the lithium carbonate equivalent (LCE) price, while other costs are assumed to be constant.
Total Corporate FY 2026E | |||
Observed market price case(a) | FY 2025 avg. | Q1 2026 avg. | 2021-2025 avg. |
Average lithium market price ($/kg LCE)(a) | ~$10 | ~$20 | ~$30 |
Net sales | $4.1 - $4.3 billion | $5.7 - $6.0 billion | $7.5 - $7.8 billion |
Adjusted EBITDA(b) | $0.9 - $1.0 billion | $2.4 - $2.6 billion | $4.2 - $4.4 billion |
(a) | Price represents blend of relevant market pricing including spot and regional indices for the periods referenced. |
(b) | The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. See "Additional Information Regarding Non-GAAP Measures" for more information. |
Energy Storage Market Price Scenarios
Energy Storage FY 2026E | |||
Observed market price case(a) | FY 2025 avg. | Q1 2026 avg. | 2021-2025 avg. |
Average lithium market price ($/kg LCE)(a) | ~$10 | ~$20 | ~$30 |
Net sales | $2.5 - $2.6 billion | $4.0 - $4.2 billion | $5.9 - $6.1 billion |
Adjusted EBITDA | $0.7 - $0.8 billion | $2.1 - $2.3 billion | $3.9 - $4.1 billion |
Equity in net income of unconsolidated investments (net of tax)(b) | $0.2 - $0.3 billion | $0.6 - $0.7 billion | $1.0 - $1.1 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 Outlook Considerations
Specialties net sales and adjusted EBITDA outlook is improved primarily due to higher-than-expected bromine pricing in Chinese and Indian spot markets. Our outlook continues to reflect modest volume growth in key end markets led by semiconductors, oil and gas, flame retardants and pharmaceuticals partially offset by expected softness in automotive and petrochemicals. Operations at the Jordan Bromine Company (JBC) joint venture have fully recovered from the flooding event in late December 2025 and continue to operate despite geopolitical tensions in the region.
Segment FY 2026E | |
Specialties net sales | $1.3 - $1.5 billion |
Specialties adjusted EBITDA | $225 - $275 million |
Other Corporate Outlook Considerations
Albemarle expects its 2026 capital expenditures to be roughly flat compared to 2025, in the range of $550 million to $600 million.
Following the sale of a controlling stake in Ketjen, announced on March 2, 2026, the refining catalyst business earnings are now classified as equity income and included in Corporate, as are the results of the retained Performance Catalyst Solutions (PCS) business. The adjusted EBITDA and equity income contributions from these are expected to be immaterial post transaction.
Interest and financing expense is now expected to be between $120 and $140 million for 2026 following the debt reduction actions completed in the first quarter of 2026.
Other Corporate FY 2026E | |
Capital expenditures | $550 - $600 million |
Depreciation and amortization | $660 - $680 million |
Adjusted effective tax rate(a) | (50)% - 30% |
Corporate adjusted EBITDA (incl. FX, Ketjen equity income & PCS) | ($20) - $20 million |
Interest and financing expenses | $120 - $140 million |
Weighted-average common shares outstanding (diluted)(b) | ~118 million |
(a) | Adjusted effective tax rate dependent on lithium market prices and geographic income mix |
(b) | Diluted weighted-average common shares outstanding amount assumes the net income attributable to common shareholders will be reduced by mandatory convertible preferred stock dividends. If the assumed conversion of preferred stock results in a more dilutive earnings per share, the diluted weighted-average common shares outstanding will reflect this conversion. |
Cash Flow and Capital Deployment
Cash from operations of $346 million in the first three months of 2026 decreased $201 million compared to the prior-year period. First quarter 2025 cash from operations included a one-time $350 million customer prepayment. Capital expenditures of $99 million in the first three months of 2026 decreased by $84 million versus the prior-year period.
Balance Sheet and Liquidity
As of March 31, 2026, Albemarle had estimated liquidity of approximately $2.7 billion, including $1.1 billion of cash and cash equivalents, $1.5 billion available under our revolver and $87 million available under other credit lines. Total debt was $1.9 billion, representing a net debt to adjusted EBITDA ratio (as defined in our credit agreement) of approximately 1.0. In March, the company completed debt reduction actions that resulted in paying down $1.3 billion of outstanding debt and lowering the weighted average interest rate.
Earnings Call
Date: | Thurs., May 7, 2026 |
Time: | 8:00 AM Eastern time |
Dial-in (U.S.): | 1-800-590-8290 |
Dial-in (International): | 1-240-690-8800 |
Conference ID: | ALBQ1 |
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 world 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.
Albemarle regularly posts information to Albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, U.S. Securities and Exchange Commission 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 "ambition," "anticipate," "believe," "estimate," "expect," "goal," "guidance," "intend," "may," "outlook," "scenario," "should," "would," and "will." Forward-looking statements may include statements regarding: our 2026 company and segment outlooks, including guidance related to impact on 2026 EBITDA, volumes, and cash flow; plans and expectations regarding customer demand and sales; production impacts; financial flexibility and optionality; expected or actual market pricing of lithium, spodumene, bromine, and lithium specialties ("Company Products"); supply and demand for Company Products; drivers of long-term demand and growth; other underlying assumptions and outlook considerations; expected capital allocation and expenditure amounts and the corresponding impact on cash flow; plans and expectations regarding other mining interests, resources, reserves, projects and activities, compound annual growth rate, cost reductions, conversion network optimization, margin improvement, 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; and the financial and operating performance of customers; timing and magnitude of customer orders; fluctuations in market pricing of lithium carbonate equivalent and spodumene; potential production volume shortfalls; increased competition and pressure to renegotiate contract terms; changes in product or conversion 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; political unrest affecting global trade, including tensions in the Middle East; the global economy and clean energy initiatives; changes in inflation or interest rates; volatility and uncertainties in the debt and equity markets; acquisition and divestiture transactions; timing and success of projects; expected benefits and expenses from new operating structure and asset optimization activities; 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 presentation. 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 | |||
(In Thousands Except Per Share Amounts) (Unaudited) | |||
Three Months Ended | |||
March 31, | |||
2026 | 2025 | ||
Net sales | $ 1,428,731 | $ 1,076,881 | |
Cost of goods sold | 927,765 | 920,582 | |
Gross profit | 500,966 | 156,299 | |
Selling, general and administrative expenses | 137,406 | 123,502 | |
Restructuring charges and asset write-offs | 25,866 | (1,063) | |
Research and development expenses | 9,170 | 14,099 | |
Loss on sale of business | 95,018 | — | |
Operating income | 233,506 | 19,761 | |
Interest and financing expenses | (33,121) | (48,977) | |
Other income, net | 53,810 | 10,250 | |
Income (loss) before income taxes and equity in net income of unconsolidated investments | 254,195 | (18,966) | |
Income tax expense (benefit) | 21,511 | (3,978) | |
Income (loss) before equity in net income of unconsolidated investments | 232,684 | (14,988) | |
Equity in net income of unconsolidated investments (net of tax) | 96,293 | 64,286 | |
Net income | 328,977 | 49,298 | |
Net income attributable to noncontrolling interests | (9,886) | (7,950) | |
Net income attributable to Albemarle Corporation | 319,091 | 41,348 | |
Mandatory convertible preferred stock dividends | (41,688) | (41,688) | |
Net income (loss) attributable to Albemarle Corporation common shareholders | $ 277,403 | $ (340) | |
Basic earnings (loss) per share attributable to common shareholders | $ 2.35 | $ (0.00) | |
Diluted earnings (loss) per share attributable to common shareholders | $ 2.34 | $ (0.00) | |
Weighted-average common shares outstanding – basic | 117,854 | 117,603 | |
Weighted-average common shares outstanding – diluted | 118,607 | 117,603 | |
Albemarle Corporation and Subsidiaries | |||
Condensed Consolidated Balance Sheets | |||
(In Thousands) (Unaudited) | |||
March 31, | December 31, | ||
2026 | 2025 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,089,809 | $ 1,618,001 | |
Trade accounts receivable | 522,715 | 593,502 | |
Other accounts receivable | 136,767 | 105,110 | |
Inventories | 1,346,960 | 1,179,271 | |
Other current assets | 162,932 | 140,440 | |
Current assets held for sale | — | 371,815 | |
Total current assets | 3,259,183 | 4,008,139 | |
Property, plant and equipment | 11,822,899 | 11,768,840 | |
Less accumulated depreciation and amortization | 3,297,806 | 3,156,429 | |
Net property, plant and equipment | 8,525,093 | 8,612,411 | |
Investments | 1,022,707 | 900,926 | |
Other assets | 636,574 | 647,185 | |
Goodwill | 1,488,404 | 1,499,657 | |
Other intangibles, net of amortization | 207,617 | 214,233 | |
Noncurrent assets held for sale | — | 491,660 | |
Total assets | $ 15,139,578 | $ 16,374,211 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Accounts payable to third parties | $ 677,151 | $ 779,160 | |
Accounts payable to related parties | 256,630 | 134,369 | |
Accrued expenses | 452,927 | 521,831 | |
Current portion of long-term debt | 74,628 | 74,077 | |
Dividends payable | 61,456 | 61,387 | |
Income taxes payable | 53,139 | 35,467 | |
Current liabilities held for sale | — | 191,753 | |
Total current liabilities | 1,575,931 | 1,798,044 | |
Long-term debt | 1,807,203 | 3,119,464 | |
Postretirement benefits | 45,075 | 44,744 | |
Pension benefits | 115,451 | 117,361 | |
Other noncurrent liabilities | 1,118,508 | 1,084,892 | |
Deferred income taxes | 369,294 | 368,275 | |
Noncurrent liabilities held for sale | — | 59,970 | |
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