Albemarle Reports Third Quarter 2026 Results

2026-11-04

NYSE - New York Stock Exchange · Lithium · Kaolin · Potash · Sodium · Bromine · Sulfur · Aluminium · Magnesium · Nickel · Cobalt · United States · Corporate Finance

PR Newswire

CHARLOTTE, N.C., Nov. 4, 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 third quarter ended September 30, 2026.

Third Quarter 2026 and Recent Highlights (Unless otherwise stated, all percentage changes represent year-over-year comparisons and do not exclude the prior-period results of Ketjen's refining catalyst solutions business in which the company sold a 51% stake on March 2, 2026)

Net sales of $1.6 billion, up 19% due to higher pricing in Energy Storage (+68%) and higher pricing and volumes in Specialties (price +10%, volume +3%). Net income of $297 million, or $2.15 per diluted share attributable to common shareholders; Adjusted net income(a)of $354 million, or $2.58 per diluted share attributable to common shareholders which primarily excludes restructuring and other related charges. Adjusted EBITDA(a)of $646 million; up 186% due primarily to higher pricing in Energy Storage, increased pricing and volumes in Specialties and cost and productivity improvements. Cash from operating activities of $406 million and free cash flow of $325 million(a). Operating cash flow conversion of 63%(a), supported by a cash dividend from the Talison joint venture which partly offset timing of working capital changes. Delivered more than $150 million in year-to-date run-rate cost and productivity improvements, achieving the high end of our full-year target. Talison's Chemical Grade Plant 3 (CGP3) achieved 30-days of nameplate performance in September. Improving full-year 2026 outlook considerations including: Specialties adjusted EBITDA of $350-$375 million (up from $275-$325 million), in part driven by ongoing cost and productivity improvements. Reducing full-year capital expenditure forecast to $300-$350 million (down from approximately $500 million), reflecting continued benefits from our focused capital efficiency improvements, as well as resequencing of some early-stage projects.

| (a) | See Non-GAAP Reconciliations for further details. |

"Albemarle delivered another solid quarter, reflecting disciplined execution across the enterprise," said Kent Masters, Chairman and CEO. "In Specialties, improved pricing and sustained progress on cost and productivity initiatives support an additional increased outlook for the year. Global lithium demand is up 48% year-to-date though August, driven by both electric vehicles and energy storage, reinforcing our confidence in the long-term outlook for the industry. We will continue to prioritize high-return organic growth by leveraging our advantaged resource base, capital spending efficiency, and financial flexibility."

Third Quarter 2026 Results

| In millions, except per share amounts | Q3 2026 | | Q3 2025 | | Change | | % Change | | Net sales | $ 1,553.1 | | $ 1,307.8 | | $ 245.3 | | 18.8 % | | Net income (loss) attributable to Albemarle Corporation | $ 296.8 | | $ (160.7) | | $ 457.4 | | NM | | Adjusted EBITDA(a) | $ 645.5 | | $ 225.6 | | $ 419.9 | | 186.1 % | | Diluted income (loss) per share attributable to common shareholders | $ 2.15 | | $ (1.72) | | $ 3.87 | | NM | | Non-operating pension and OPEB items(a) | 0.01 | | — | | | | | | Non-recurring and other unusual items(a) | 0.41 | | 1.53 | | | | | | Adjusted diluted income (loss) per share attributable to common shareholders(a)(b) | $ 2.58 | | $ (0.19) | | $ 2.77 | | NM |

| | | | (a) | See Non-GAAP Reconciliations for further details. | | (b) | Totals may not add due to rounding. |

Net sales for the third quarter of 2026 were $1.6 billion, up 19%, driven primarily by higher prices in both Energy Storage and Specialties and volume growth in Specialties. Adjusted EBITDA of $646 million increased by $420 million from the prior-year quarter, primarily due to higher net sales and ongoing cost and productivity improvements.

Net income attributable to Albemarle of $297 million increased year over year by $457 million. The effective income tax rate for the third quarter of 2026 was 16.4% or 5.8% on an adjusted basis due to geographic income mix.

Energy Storage Results

| In millions | Q3 2026 | | Q3 2025 | | Change | | % Change | | Net Sales | $ 1,118.8 | | $ 708.8 | | $ 410.0 | | 57.9 % | | Sales Volume (kT LCE)(a) | 56 | | 69 | | (13) | | (18.8) % | | Avg. Realized Price ($/kg LCE)(a) | $ 20.02 | | $ 10.28 | | $ 9.74 | | 94.7 % | | Adjusted EBITDA | $ 559.8 | | $ 124.1 | | $ 435.7 | | 351.2 % |

| | | | (a) | Includes aggregated salts and spodumene sales on a lithium carbonate equivalent (LCE) basis. |

Energy Storage net sales for the third quarter of 2026 were $1.1 billion, an increase of $410 million, or 58%, due to higher pricing. Adjusted EBITDA of $560 million increased $436 million, or 351%, primarily due to improved lithium pricing and partially offset by higher price spodumene inventory processed in the quarter and increased Chilean commissions. Sales volume declined year-over-year primarily due to timing events in the prior-year period, including inventory destocking and higher-than-usual spodumene shipments, which led to the third quarter of 2025 being the segment's record highest volume quarter on a lithium carbonate equivalent (LCE) basis.

Specialties Results

| In millions | Q3 2026 | | Q3 2025 | | Change | | % Change | | Net Sales | $ 388.6 | | $ 345.0 | | $ 43.7 | | 12.7 % | | Adjusted EBITDA | $ 98.7 | | $ 75.5 | | $ 23.2 | | 30.7 % |

Specialties net sales for the third quarter of 2026 were $389 million, an increase of $44 million, or 13%, primarily due to higher pricing (+10%) and volumes (+3%). Adjusted EBITDA of $99 million increased $23 million, or 31%, primarily due to higher volumes and favorable pricing in bromine and derivatives, along with continued productivity improvements and proactive management of cost escalations driven by the conflict in the Middle East. Additionally, the Jordan Bromine Company (JBC) joint venture achieved record quarterly production.

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 in the range of 225 to 235 kilotons lithium carbonate equivalent, as increased Wodgina volumes partially offset a delay in the Talison CGP3 ramp due to a fire that occurred on June 9. All three scenarios assume flat market pricing flowing through Energy Storage's current contract book which includes approximately 40% of salts volume (or one-third of total volumes) 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.

| | | | (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

Fourth quarter 2026 net sales and adjusted EBITDA are expected to decrease sequentially due to lower market pricing with steady sales volumes. Fourth-quarter margins are expected to decrease sequentially due to consumption of higher-cost spodumene inventory purchased in prior periods.

| | | | (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 adjusted EBITDA outlook is improved as strong year-to-date performance, primarily driven by cost and productivity improvements, more than offset supply chain related cost escalation due to the conflict in the Middle East. Our outlook continues to reflect modest volume growth in key end markets led by semiconductors, oil and gas, flame retardants and pharmaceuticals and steady year-to-date demand in automotive and petrochemical markets. Fourth quarter outlook assumes steady demand in the bromine market and the impact of the ongoing situation in the Middle East.

Other Corporate Outlook Considerations Albemarle now expects its full-year 2026 capital expenditures to be $300-$350 million, reflecting continued benefits from our focused capital efficiency improvements as well as resequencing of some early-stage project spend.

Following the sale of a controlling stake in Ketjen's refining catalyst solutions business, 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 businesses are expected to be immaterial post transaction.

| | | | (a) | Adjusted effective tax rate dependent on lithium market prices and geographic income mix | | (b) | Diluted weighted-average common shares outstanding amount assumes the conversion of preferred stock and the net income attributable to common shareholders will not be reduced by mandatory convertible preferred stock dividends. If the reduction of mandatory convertible preferred stock dividends results in a more dilutive earnings per share, the diluted weighted-average common shares outstanding will not assume conversion of the preferred stock. |

Cash Flow and Capital Deployment Cash from operations of $1.5 billion in the first nine months of 2026 increased $568 million compared to the prior-year period. Year-to-date operating cash flow conversion is 67% as of September 30, 2026. Capital expenditures of $251 million in the first nine months of 2026 decreased by $184 million versus the prior-year period. As of September 30, 2026, Albemarle has delivered free cash flow of $1.2 billion year-to-date.

Balance Sheet and Liquidity As of September 30, 2026, 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 $79 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 0.3(a).

| (a) | See Non-GAAP Reconciliations for further details. |

Earnings Call

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 expected market pricing of lithium carbonate equivalent and spodumene and other underlying assumptions and outlook consideration; 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; expected impact of tariffs and other trade restrictions; long-term targets for operating cash flow conversion and other financial metrics; 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; risks related to the integration of artificial intelligence technologies into our operations; geopolitical conflicts and political unrest affecting global trade; the global economy and clean energy initiatives; our ability to retain key personnel and attract new skilled personnel 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; impacts of the situations in the Middle East, the tensions between China and Taiwan and the military conflict between Russia and Ukraine, and the related global responses; 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 | | Nine Months Ended | | | | | | | September 30, | | September 30, | | | | | | | 2026 | | 2025 | | 2026 | | 2025 | | Net sales | $ 1,553,097 | | $ 1,307,829 | | $ 4,725,141 | | $ 3,714,702 | | Cost of goods sold | 1,252,373 | | 1,190,219 | | 3,333,150 | | 3,243,917 | | Gross profit | 300,724 | | 117,610 | | 1,391,991 | | 470,785 | | Selling, general and administrative expenses | 136,353 | | 138,577 | | 400,112 | | 394,536 | | Goodwill impairment charges | — | | 181,070 | | — | | 181,070 | | Restructuring charges and asset write-offs | 8,038 | | 2,275 | | 41,241 | | 5,660 | | Research and development expenses | 8,173 | | 12,674 | | 21,010 | | 39,217 | | Loss on sale of business | — | | — | | 95,018 | | — | | Operating income (loss) | 148,160 | | (216,986) | | 834,610 | | (149,698) | | Interest and financing expenses | (27,803) | | (50,959) | | (91,848) | | (149,875) | | Other income, net | 12,861 | | 28,799 | | 86,300 | | 32,490 | | Income (loss) before income taxes and equity in net income of unconsolidated investments | 133,218 | | (239,146) | | 829,062 | | (267,083) | | Income tax expense (benefit) | 21,900 | | (30,565) | | 137,413 | | (449) | | Income (loss) before equity in net income of unconsolidated investments | 111,318 | | (208,581) | | 691,649 | | (266,634) | | Equity in net income of unconsolidated investments (net of tax) | 205,350 | | 60,640 | | 453,207 | | 203,184 | | Net income (loss) | 316,668 | | (147,941) | | 1,144,856 | | (63,450) | | Net income attributable to noncontrolling interests | (19,913) | | (12,753) | | (49,051) | | (32,999) | | Net income (loss) attributable to Albemarle Corporation | 296,755 | | (160,694) | | 1,095,805 | | (96,449) | | Mandatory convertible preferred stock dividends | (41,683) | | (41,688) | | (125,058) | | (125,063) | | Net income (loss) attributable to Albemarle Corporation common shareholders | $ 255,072 | | $ (202,382) | | $ 970,747 | | $ (221,512) | | Basic earnings (loss) per share attributable to common shareholders | $ 2.16 | | $ (1.72) | | $ 8.23 | | $ (1.88) | | Diluted earnings (loss) per share attributable to common shareholders | $ 2.15 | | $ (1.72) | | $ 8.03 | | $ (1.88) | | | | | | | | | | | Weighted-average common shares outstanding – basic | 118,008 | | 117,685 | | 117,941 | | 117,651 | | Weighted-average common shares outstanding – diluted | 118,544 | | 117,685 | | 136,492 | | 117,651 |

Earlier from Albemarle Corporation

More corporate finance releases

Fortuna Reports Results for the Third Quarter 2026 Fortuna Mining Corp. (FVI.TO), 2026-11-05
Wesdome Declares Quarterly Dividend Wesdome Gold Mines Ltd. (WDO.TO), 2026-11-05
GOLD ROYALTY REPORTS RECORD THREE AND NINE-MONTH RESULTS WITH CONTINUED STRONG CASH FLOW AND EARNINGS GROWTH Gold Royalty Corp. (GROY), 2026-11-05