Southern Cross Gold Consolidated Ltd. press release

Albemarle Reports Second Quarter 2025 Results

2025-07-30

TSX - Toronto Stock Exchange · Australia

PR Newswire

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 .

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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 to common 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 Considerations Albemarle 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

| | | | (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 Albemarle 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.

| | | | (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 Deployment 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 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 Liquidity As 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

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 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) @AlbemarleCorp.

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 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; 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) | | (11,604) | | (20,246) | | (25,803) | | Net income (loss) attributable to Albemarle Corporation | 22,897 | | (188,198) | | 64,245 | | (185,750) | | Mandatory convertible preferred stock dividends | (41,687) | | (41,688) | | (83,375) | | (53,272) | | Net loss attributable to Albemarle Corporation common shareholders | $ (18,790) | | $ (229,886) | | $ (19,130) | | $ (239,022) | | Basic loss per share attributable to common shareholders | $ (0.16) | | $ (1.96) | | $ (0.16) | | $ (2.03) | | Diluted loss per share attributable to common shareholders | $ (0.16) | | $ (1.96) | | $ (0.16) | | $ (2.03) | | | | | | | | | | | Weighted-average common shares outstanding – basic | 117,665 | | 117,528 | | 117,634 | | 117,489 | | Weighted-average common shares outstanding – diluted | 117,665 | | 117,528 | | 117,634 | | 117,489 |

| Albemarle Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands) (Unaudited) | | | | | | | | | | | June 30, | | December 31, | | | 2025 | | 2024 | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | $ 1,806,829 | | $ 1,192,230 | | Trade accounts receivable | 766,433 | | 742,201 | | Other accounts receivable | 113,305 | | 238,384 | | Inventories | 1,640,925 | | 1,502,531 | | Other current assets | 177,695 | | 166,916 | | Total current assets | 4,505,187 | | 3,842,262 | | Property, plant and equipment | 12,792,572 | | 12,523,368 | | Less accumulated depreciation and amortization | 3,539,678 | | 3,191,898 | | Net property, plant and equipment | 9,252,894 | | 9,331,470 | | Investments | 890,384 | | 1,117,739 | | Other assets | 737,587 | | 504,711 | | Goodwill | 1,670,927 | | 1,582,714 | | Other intangibles, net of amortization | 234,948 | | 230,753 | | Total assets | $ 17,291,927 | | $ 16,609,649 | | LIABILITIES AND EQUITY | | | | | Current liabilities: | | | | | Accounts payable to third parties | $ 737,317 | | $ 793,455 | | Accounts payable to related parties | 121,464 | | 150,432 | | Accrued expenses | 414,884 | | 467,997 | | Current portion of long-term debt | 444,911 | | 398,023 | | Dividends payable | 61,331 | | 61,282 | | Income taxes payable | 169,877 | | 95,275 | | Total current liabilities | 1,949,784 | | 1,966,464 | | Long-term debt | 3,178,111 | | 3,118,142 | | Postretirement benefits | 32,103 | | 31,930 | | Pension benefits | 121,638 | | 116,192 | | Other noncurrent liabilities | 1,144,798 | | 819,204 | | Deferred income taxes | 366,509 | | 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 | 3,001,531 | | 2,985,606 | | Accumulated other comprehensive loss | (364,544) | | (742,062) | | Retained earnings | 5,367,257 | | 5,481,692 | | Total Albemarle Corporation shareholders' equity | 10,240,526 | | 9,961,517 | | Noncontrolling interests | 258,458 | | 238,171 | | Total equity | 10,498,984 | | 10,199,688 | | Total liabilities and equity | $ 17,291,927 | | $ 16,609,649 |

Albemarle Reports Second Quarter 2025 Results

Second Quarter 2025 Results

Energy Storage Results

Specialties Results

Ketjen Results

2025 Outlook Considerations

Energy Storage Market Price Scenarios

Earnings Call

Earlier from Southern Cross Gold Consolidated Ltd.