Southern Cross Gold Consolidated Ltd. press release

Albemarle Reports Third Quarter 2025 Results

2025-11-05

TSX - Toronto Stock Exchange · Australia · Corporate Finance

PR Newswire

CHARLOTTE, N.C., Nov. 5, 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 third quarter ended September 30, 2025.

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Third Quarter2025 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 (+8%) and Ketjen (+8%). Net loss of ($161) million, or ($1.72)per diluted share attributable to common shareholders; Adjusted loss of ($0.19)per diluted share attributable to common shareholders excludes a non-cash goodwill impairment charge associated with Ketjen. Adjusted EBITDA of $226 million; up 7% due to improved fixed cost absorption and on-going cost savings. On track to achieve full-year run-rate cost and productivity improvements of approximately $450 million, surpassing initial $300to $400 milliontarget. Third quarter cash from operations of $356 millionwas up 57%, or $128 million; year-to-date cash from operations of $894 millionwas also up 29%, or $202 million, due to cost and productivity improvements, cash management actions and a customer prepayment received in January. Reducing full-year 2025 capital expenditures outlook to approximately $600 million. Expect to achieve positive free cash flow(a)of $300to $400 millionfor the full year 2025. Enhancing full-year outlook considerations; enterprise results are expected to be towards the higher end of the previously published $9/kg scenario ranges given year-to-date financial performance and lithium market pricing and better-than-expected Energy Storage volumes. On October 27, announced agreements to sell stakes in Ketjen and the Eurecat joint venture for combined pre-tax proceeds of approximately $660 million.

"Our team delivered strong third quarter results, with adjusted EBITDA up year-over-year despite lower lithium prices, demonstrating the strength of our business and disciplined execution," said Kent Masters, Chairman and CEO. "Our successful implementation of cost and productivity improvements and reduced capital expenditures coupled with our recent portfolio management actions underscore our commitment to long-term value and enhanced financial flexibility. We remain confident in our full-year outlook and ability to navigate dynamic markets."

Third Quarter 2025 Results

| In millions, except per share amounts | Q3 2025 | | Q3 2024 | | $ Change | | % Change | | Net sales | $ 1,307.8 | | $ 1,354.7 | | $ (46.9) | | (3.5) % | | Net loss attributable to Albemarle Corporation | $ (160.7) | | $ (1,069.0) | | $ 908.3 | | 85.0 % | | Adjusted EBITDA(b) | $ 225.6 | | $ 211.5 | | $ 14.1 | | 6.7 % | | Diluted loss per share attributable to common shareholders | $ (1.72) | | $ (9.45) | | $ 7.73 | | 81.8 % | | Non-recurring and other unusual items(b) | 1.53 | | 7.90 | | | | | | Adjusted diluted loss per share attributable to common shareholders(b)(c) | $ (0.19) | | $ (1.55) | | $ 1.36 | | 87.7 % |

| | | | (a) | A non-GAAP measure defined as operating cash flow minus capital expenditures. 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 non-recurring or unusual items or their probable significance without unreasonable effort. See "Additional Information Regarding Non-GAAP Measures" for more information. | | (b) | See Non-GAAP Reconciliations for further details. | | (c) | Totals may not add due to rounding. |

Net sales for the third quarter of 2025 were $1.3 billioncompared to $1.4 billionfor the prior-year quarter, a decline of 3% driven primarily by lower pricing in Energy Storage, offset by higher volumes in Energy Storage and Ketjen. Adjusted EBITDA of $226 millionincreased by $14 millionfrom the prior-year quarter as lower input costs and on-going cost reduction efforts offset reduced lithium pricing. Net loss attributable to Albemarleof ($161) milliondecreased year-over-year by $908 million, due primarily to restructuring charges recorded in the prior-year period.

The effective income tax rate for the third quarter of 2025 was 12.8% compared to (9.4)% in the same period of 2024. On an adjusted basis, the effective income tax rates were 50.9% and (12.9)% for the third quarters of 2025 and 2024, respectively, with the change primarily due to geographic income mix and the impact of tax valuation allowances in Australiaand China.

Energy Storage Results

| In millions | Q3 2025 | | Q3 2024 | | $ Change | | % Change | | Net Sales | $ 708.8 | | $ 767.3 | | $ (58.5) | | (7.6) % | | Adjusted EBITDA | $ 124.1 | | $ 142.9 | | $ (18.8) | | (13.2) % |

Energy Storage net sales for the third quarter of 2025 were $709 million, a decrease of $59 million, or 8%, due to lower pricing (-16%). Volumes were up 8% due to higher spodumene sales, record production from our integrated conversion facilities and inventory reductions. Adjusted EBITDA of $124 milliondecreased $19 million, as lower input costs and on-going cost reduction efforts mostly offset lower lithium pricing.

Specialties Results

| In millions | Q3 2025 | | Q3 2024 | | $ Change | | % Change | | Net Sales | $ 345.0 | | $ 342.4 | | $ 2.6 | | 0.8 % | | Adjusted EBITDA | $ 75.5 | | $ 56.3 | | $ 19.3 | | 34.2 % |

Specialties net sales for the third quarter of 2025 were $345 million, an increase of $3 million, or 1%, as foreign exchange benefits offset slightly lower volumes (-1%) due to strength in demand for flame retardants in electrical and electronics applications offset by weakness in automotive end-markets. Adjusted EBITDA of $76 millionincreased $19 millionversus the prior-year quarter due to decreased manufacturing costs related to productivity initiatives.

Ketjen Results

| In millions | Q3 2025 | | Q3 2024 | | $ Change | | % Change | | Net Sales | $ 254.1 | | $ 245.0 | | $ 9.1 | | 3.7 % | | Adjusted EBITDA | $ 33.6 | | $ 35.5 | | $ (1.9) | | (5.4) % |

Ketjen net sales for the third quarter of 2025 were $254 million, up 4% compared to the prior-year quarter as higher volumes (+8%) were partially offset by lower prices (-5%). Adjusted EBITDA of $34 milliondecreased $2 million, driven by lower prices and higher input costs partially offset by higher volumes and favorable clean fuels technology joint venture equity earnings.

2025 Outlook Considerations

Total Corporate Outlook Considerations Albemarleis enhancing its prior full-year outlook considerations for the enterprise and Energy Storage, which are based on observed lithium market price scenarios. Full-year 2025 results are expected to be towards the higher end of the previously published $9/kg scenario ranges given year-to-date financial performance and lithium market pricing and better-than-expected Energy Storage volumes. Ketjen and Specialties outlook considerations are 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 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

| | | | (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

| | | | (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.

Other Corporate Outlook Considerations Albemarleexpects its 2025 capital expenditures to be approximately $600 million, down 65% from $1.7 billionin 2024. This level of spending reflects in part a timing impact and a continued prioritization on sustaining existing assets and resources. Reduced corporate costs reflect cost savings and foreign exchange gains to date.

| | | | (a) | Adjusted effective tax rate dependent on lithium market prices and geographic income mix | | (b) | FY 2025E outlook includes FX impact in the first nine months of 2025 |

Cash Flow and Capital Deployment Cash from operations of $894 millionin the first nine months of 2025 increased $202 millioncompared to the prior-year period due to cost and productivity improvements, cash management actions and a customer prepayment received in January. We now expect to achieve positive free cash flow of approximately $300to $400 millionfor the full year 2025 given year-to-date financial performance and lithium market pricing and better-than-expected Energy Storage volumes. Capital expenditures of $434 millionin the first nine months of 2025 decreased by $903 millionversus 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 expenditures outlook to approximately $600 million.

Balance Sheet and Liquidity As of September 30, 2025, Albemarlehad estimated liquidity of approximately $3.5 billion, including $1.9 billionof cash and cash equivalents, $1.5 billionavailable under our revolver and $107 millionavailable 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 2.1 times. In the fourth quarter of 2025 our 1.125% Euro notes due November 2025will mature, and we intend to repay those notes with cash on hand.

Earnings Call

The company's earnings presentation and supporting material are available on Albemarle'swebsite at https://investors.albemarle.com.

About Albemarle Albemarle Corporation (NYSE: ALB) leads the world 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 Albemarleare enabling a more resilient world at Albemarle.com, LinkedIn and X.

Albemarleregularly 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 "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; planned sale of a controlling stake in Ketjen and the amount of the proceeds for the controlling stake in Ketjen and our interest in the Eurecat JV; timing for completion of both transactions, including obtaining regulatory approvals and meeting other closing conditions; expectations regarding use of proceeds from the both transactions; 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'sactual 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'spartners in joint ventures and other projects; changes in credit ratings; and the other factors detailed from time to time in the reports Albemarlefiles with the SEC, including those described under "Risk Factors" in Albemarle'smost 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'swebsite (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. Albemarleassumes 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 Loss

(In Thousands Except Per Share Amounts) (Unaudited) | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | | | | | September 30, | | September 30, | | | | | | | 2025 | | 2024 | | 2025 | | 2024 | | Net sales | $ 1,307,829 | | $ 1,354,692 | | $ 3,714,702 | | $ 4,145,813 | | Cost of goods sold | 1,190,219 | | 1,458,726 | | 3,243,917 | | 4,221,487 | | Gross profit (loss) | 117,610 | | (104,034) | | 470,785 | | (75,674) | | Selling, general and administrative expenses | 138,577 | | 154,253 | | 394,536 | | 482,052 | | Goodwill impairment charges | 181,070 | | — | | 181,070 | | — | | Restructuring charges and asset write-offs | 2,275 | | 828,146 | | 5,660 | | 1,156,522 | | Research and development expenses | 12,674 | | 22,397 | | 39,217 | | 66,699 | | Operating loss | (216,986) | | (1,108,830) | | (149,698) | | (1,780,947) | | Interest and financing expenses | (50,959) | | (47,760) | | (149,875) | | (120,916) | | Other income (expenses), net | 28,799 | | (22,256) | | 32,490 | | 61,311 | | Loss before income taxes and equity in net income of unconsolidated investments | (239,146) | | (1,178,846) | | (267,083) | | (1,840,552) | | Income tax (benefit) expense | (30,565) | | 110,853 | | (449) | | 76,472 | | Loss before equity in net income of unconsolidated investments | (208,581) | | (1,289,699) | | (266,634) | | (1,917,024) | | Equity in net income of unconsolidated investments (net of tax) | 60,640 | | 229,058 | | 203,184 | | 696,436 | | Net loss | (147,941) | | (1,060,641) | | (63,450) | | (1,220,588) | | Net income attributable to noncontrolling interests | (12,753) | | (8,351) | | (32,999) | | (34,154) | | Net loss attributable to Albemarle Corporation | (160,694) | | (1,068,992) | | (96,449) | | (1,254,742) | | Mandatory convertible preferred stock dividends | (41,688) | | (41,687) | | (125,063) | | (94,959) | | Net loss attributable to Albemarle Corporation common shareholders | $ (202,382) | | $ (1,110,679) | | $ (221,512) | | $ (1,349,701) | | Basic loss per share attributable to common shareholders | $ (1.72) | | $ (9.45) | | $ (1.88) | | $ (11.49) | | Diluted loss per share attributable to common shareholders | $ (1.72) | | $ (9.45) | | $ (1.88) | | $ (11.49) | | | | | | | | | | | Weighted-average common shares outstanding – basic | 117,685 | | 117,535 | | 117,651 | | 117,505 | | Weighted-average common shares outstanding – diluted | 117,685 | | 117,535 | | 117,651 | | 117,505 |

| Albemarle Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands) (Unaudited) | | | | | | | | | | | September 30, | | December 31, | | | 2025 | | 2024 | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | $ 1,931,758 | | $ 1,192,230 | | Trade accounts receivable | 733,477 | | 742,201 | | Other accounts receivable | 107,701 | | 238,384 | | Inventories | 1,532,622 | | 1,502,531 | | Other current assets | 249,347 | | 166,916 | | Total current assets | 4,554,905 | | 3,842,262 | | Property, plant and equipment | 12,902,998 | | 12,523,368 | | Less accumulated depreciation and amortization | 3,680,755 | | 3,191,898 | | Net property, plant and equipment | 9,222,243 | | 9,331,470 | | Investments | 914,040 | | 1,117,739 | | Other assets | 736,279 | | 504,711 | | Goodwill | 1,490,869 | | 1,582,714 | | Other intangibles, net of amortization | 229,949 | | 230,753 | | Total assets | $ 17,148,285 | | $ 16,609,649 | | LIABILITIES AND EQUITY | | | | | Current liabilities: | | | | | Accounts payable to third parties | $ 780,377 | | $ 793,455 | | Accounts payable to related parties | 122,794 | | 150,432 | | Accrued expenses | 500,940 | | 467,997 | | Current portion of long-term debt | 445,384 | | 398,023 | | Dividends payable | 61,339 | | 61,282 | | Income taxes payable | 93,120 | | 95,275 | | Total current liabilities | 2,003,954 | | 1,966,464 | | Long-term debt | 3,181,009 | | 3,118,142 | | Postretirement benefits | 31,915 | | 31,930 | | Pension benefits | 118,004 | | 116,192 | | Other noncurrent liabilities | 1,137,211 | | 819,204 | | Deferred income taxes | 407,134 | | 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 | 3,011,210 | | 2,985,606 | | Accumulated other comprehensive loss | (368,592) | | (742,062) | | Retained earnings | 5,117,213 | | 5,481,692 | | Total Albemarle Corporation shareholders' equity | 9,996,113 | | 9,961,517 | | Noncontrolling interests | 272,945 | | 238,171 | | Total equity | 10,269,058 | | 10,199,688 | | Total liabilities and equity | $ 17,148,285 | | $ 16,609,649 |

Earlier from Southern Cross Gold Consolidated Ltd.

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