Track market-moving stories before they get noisy

Washington just handed half a billion dollars to US battery companies, but industry insiders say the window to break China's grip on the supply chain is far shorter than the money implies, and Albemarle shareholders are caught in the middle.

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A CNBC segment put a hard number on Washington’s latest attempt to loosen China’s grip on the battery supply chain. The Department of Energy is spreading $500 million across seven US battery companies, and the industry experts interviewed for the piece were candid about the math.

One expert told CNBC that catching up will take “decades and tens, if not hundreds of billions of dollars”, and that the US has closer to five, six or seven years to become competitive. That framing matters for every US-listed name tied to lithium and battery materials, and it matters most for Albemarle (NYSE:ALB | ALB Price Prediction), the largest domestic lithium producer.

Albemarle trades at $129.57 as of the September 8 close, up 60.13% over the past year but down 7.94% year to date. The stock sits in the middle of a policy story it cannot control, so the honest question is whether $500 million in federal money moves the needle for shareholders.

Where China’s Advantage Actually Sits China’s dominance is stacked at every layer. CNBC reported that China produced 85% of the world’s cathode active material and over 90% of anode active material in 2025.

Downstream, China is at 80% of global battery cells and 70% of the world’s electric vehicles in 2025. That is scale that funds the next round of capacity at prices Western producers cannot match today.

The cost gap shows up in packs. CNBC reported that Chinese battery pack prices were already lower than North American and European packs, and the gap widened between 2022 and 2025.

Albemarle sits upstream of all of this. Its Q2 realized lithium price of $19.53/kg LCE is market-set, and its buyers ultimately compete with Chinese converters.

Midstream Gap the Federal Money Is Chasing The DOE dollars target midstream processing, the step that turns rock and brine into battery-grade material. Raef Sully, whose unnamed company received a $100 million federal grant for a Great Salt Lake lithium project, told CNBC that the award covers about a third of phase one capital.

Sully said his process produces battery-grade lithium carbonate or hydroxide at the point of extraction, “bypassing that important step, that processing step that China has a chokehold on today.” That is the exact bottleneck Albemarle is also attacking with its direct lithium extraction pilot at the Salar de Atacama.

Albemarle disclosed in its Q2 call that its DLE pilot has logged over 3,000 operating hours with recovery rates “over 90%”, versus 30% to 40% for conventional ponds. Details are in the company’s Q2 2026 earnings exhibit.

Federal capital thins the risk on projects like these, although Albemarle is funding its own DLE work off $638 million in Q2 free cash flow, not grants.

Policy Whiplash Is the Real Killer The scarier figure in the CNBC segment was the number of cancellations. CNBC reported that $24 billion of US battery projects were canceled between January 2025 and August 2026.

An industry expert on the segment told CNBC that “a stable policy environment that doesn’t ricochet between administrations is the single most critical thing for successful industrial policy.” Capital allocators need a decade of visibility, and they are not getting it.

Albemarle has adjusted accordingly. The company placed Kemerton Train 1 into care and maintenance, trimmed full-year capex to approximately $500 million, and retired $1.3 billion in debt.

On September 3, Albemarle also announced a CEO succession plan, another reminder that the company is repositioning for a longer, choppier cycle than the 2022 boom suggested.

Demand Problem No Grant Can Solve The last binding constraint is the customer. An industry expert told CNBC that “the ultimate challenge is demand” and that every link depends on someone buying the finished product.

US EV sales fell 36% year over year in the fourth quarter of 2025 after federal purchase credits expired. That is a demand shock supply-side grants cannot fix.

Stationary storage is the offset. CNBC reported that roughly 15% of global battery demand came from energy storage in 2025, about double that share in the United States, and Albemarle said on its call that stationary storage will represent about 30% of global lithium market demand in 2026.

CEO Kent Masters said on the Q2 call that “energy storage demand is kind of off the charts” and that global lithium consumption was up 45% year-over-year through May. Grid batteries are carrying the lithium bull case right now, well ahead of EVs.

Is ALB Stock a Buy? Albemarle beat Q2 estimates with adjusted EPS of $3.75 on $1.74 billion in revenue, and management now expects to land at the high end of its $20 per kg LCE scenario. That would put full-year sales at $5.7 to $6 billion.

Analyst sentiment is 59% bullish with an average target of $172.56, although our model flags a -0.662 year-over-year earnings-growth drag and a beta of 1.33.

The $500 million DOE program is unlikely to reprice ALB on its own, and the policy risk described by CNBC’s experts is real. The lithium tightness Masters describes on the call is the real driver of Albemarle’s near-term earnings, and it exists independent of Washington.

The setup reads as neutral. Demand is strong enough to defend today’s price, but until US industrial policy stops ricocheting and domestic EV sales recover from that 36% drop, chasing ALB higher on grant headlines is the wrong reason to own it.

Contact [email protected] for any questions or corrections.

Ragnar Udd Appointed President and CEO, Effective February 1, 2027

Kent Masters to Serve as Executive Chairman

, /PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a global leader in providing essential elements for mobility, energy, connectivity and health, today announced that Ragnar "Rag" Udd has been appointed President and Chief Executive Officer, effective February 1, 2027. Udd will also join the Albemarle Board of Directors. Kent Masters, Chairman and CEO, will transition to the role of Executive Chairman of the Board upon Udd joining the Company. Gerald Steiner will continue to serve as Albemarle's Lead Independent Director.

A Proven Leader to Drive Albemarle's Next Chapter

Udd has over 25 years of experience in leading global resources businesses in geographies closely mirroring Albemarle's global footprint, including Australia, Asia and North and South America. He is currently serving as Chief Commercial Officer of BHP and as a member of its executive leadership team, where he has global responsibility for sales and marketing, procurement, maritime activities and commodities market strategy. Prior to that, Udd held senior leadership roles across commercial, operational, technology, logistics and infrastructure functions, including President Americas, where he led BHP's copper and potash businesses. He also served as interim Chief Technology Officer, BHP Mitsubishi Asset President and Vice President Logistics and Infrastructure for Western Australia Iron Ore.

"Rag's appointment as our next CEO follows a comprehensive succession planning process conducted by the Board," said Steiner. "Rag brings extensive commercial and operational expertise in natural resources and has successfully led global commercial strategy and advanced disciplined growth across complex businesses. We are confident he is the right leader to capitalize on our industry-leading portfolio and operational capabilities to unlock long-term value for shareholders."

"I am honored to be named Albemarle's next CEO," said Udd. "Albemarle has world-class natural resources, deep technical expertise and strong customer partnerships. I am excited to work with Kent, the leadership team and the Board to build on the Company's strong foundation in both its Energy Storage and Specialties business segments."

A Well-Defined Transition Plan to Ensure Leadership Continuity

Masters will transition to the role of Executive Chairman of the Board upon Udd joining Albemarle. In this role, Masters will lead the Board's governance, provide input and perspective on strategic planning, and ensure a seamless handoff of leadership responsibilities.

"Kent has been instrumental in building Albemarle into the industry leader it is today," Steiner continued. "He has played a key role in the development of Albemarle's strategy and driven disciplined execution across cycles. Importantly, Kent's steadfast commitment to our core values has strengthened Albemarle's profile as a values-led, purpose-driven organization. We look forward to his continued contributions as he steps into the Executive Chairman role."

"It has been a privilege to serve as CEO and work alongside Albemarle's incredible team every day," said Masters. "I am proud of what we have achieved together, and I am confident now is the right time to transition the leadership to Rag, who is well positioned to lead Albemarle's future. I look forward to working closely with him to ensure a seamless transition."

Masters will serve as Executive Chairman through the date of the Company's 2027 annual meeting of shareholders and thereafter his role will be reviewed as part of the Board's annual director nomination process. 

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 "anticipate," "believe," "expect," "may," "should," "would," and "will" and similar references to future periods. Forward-looking statements may include statements regarding expectations relating to Company strategy, operations, or performance; plans and expectations related to board composition and contributions; other underlying assumptions and outlook considerations, and all other information relating to matters that are not historical facts. These and other forward-looking statements are based on management's current assumptions and expectations and involve risks and uncertainties that could significantly affect expected results. Actual results could differ materially from those expressed or implied in the forward-looking statements if one or more of the underlying estimates, assumptions or expectations prove to be inaccurate or are unrealized. Factors that could cause Albemarle's actual results to differ materially from the outlook expressed or implied in any forward-looking statement include: breaches of contract; changes in economic and business conditions; changes in availability to serve as the CEO; trade policies and tariffs; technological change and development; changes in laws and government regulation; regulatory actions, proceedings, cyber-security breaches, 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.

Investor Relations Contact: +1 (980) 308-6194, [email protected]
Media Contact: +1 (980) 308-6310, [email protected]

SOURCE Albemarle Corporation

Bank of Nova Scotia acquired a new stake in Albemarle Corporation (NYSE:ALB – Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 6,006 shares of the specialty chemicals company’s stock, valued at approximately $811,000.

A number of other hedge funds have also recently made changes to their positions in the business. Addison Advisors LLC purchased a new stake in Albemarle during the 2nd quarter valued at approximately $28,000. Elyxium Wealth LLC bought a new position in shares of Albemarle during the fourth quarter worth $34,000. Torren Management LLC purchased a new position in Albemarle during the fourth quarter valued at $38,000. Sound Income Strategies LLC grew its stake in Albemarle by 190.1% during the first quarter. Sound Income Strategies LLC now owns 293 shares of the specialty chemicals company’s stock valued at $52,000 after acquiring an additional 192 shares in the last quarter. Finally, Root Financial Partners LLC increased its holdings in Albemarle by 121.5% in the 4th quarter. Root Financial Partners LLC now owns 299 shares of the specialty chemicals company’s stock valued at $42,000 after acquiring an additional 164 shares during the last quarter. Institutional investors own 92.87% of the company’s stock.

Albemarle Stock Performance NYSE:ALB opened at $135.93 on Friday. The firm has a market capitalization of $16.04 billion, a PE ratio of 503.46 and a beta of 1.33. The stock’s fifty day moving average is $129.71 and its 200 day moving average is $159.90. Albemarle Corporation has a fifty-two week low of $71.25 and a fifty-two week high of $221.00. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.35 and a current ratio of 2.09.

Albemarle (NYSE:ALB – Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The specialty chemicals company reported $3.75 EPS for the quarter, topping the consensus estimate of $3.20 by $0.55. Albemarle had a net margin of 3.09% and a return on equity of 10.96%. The company had revenue of $1.74 billion during the quarter, compared to analyst estimates of $1.61 billion. Albemarle’s quarterly revenue was up 31.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.11 earnings per share. On average, sell-side analysts anticipate that Albemarle Corporation will post 11.63 earnings per share for the current year. Albemarle Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Friday, September 11th. This is an increase from Albemarle’s previous quarterly dividend of $0.41. Albemarle’s dividend payout ratio (DPR) is presently 600.00%.

Wall Street Analyst Weigh In ALB has been the topic of several research reports. Jefferies Financial Group reduced their target price on Albemarle from $244.00 to $211.00 and set a “buy” rating on the stock in a report on Tuesday, June 30th. Scotiabank dropped their price target on Albemarle from $200.00 to $190.00 and set a “sector outperform” rating for the company in a research note on Monday, August 10th. Royal Bank Of Canada cut their price target on Albemarle from $166.00 to $157.00 and set an “outperform” rating for the company in a report on Monday, August 10th. Mizuho reduced their price objective on Albemarle from $205.00 to $185.00 and set a “neutral” rating on the stock in a research note on Wednesday, July 1st. Finally, Morgan Stanley reaffirmed a “reduce” rating and set a $161.00 price objective on shares of Albemarle in a report on Monday, August 10th. Fifteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Albemarle currently has a consensus rating of “Moderate Buy” and an average price target of $190.04.

Read Our Latest Research Report on Albemarle

About Albemarle (Free Report)

Albemarle Corporation is a leading global specialty chemicals company primarily engaged in the production and distribution of lithium, bromine, and catalysts. Its lithium segment supplies key components used in rechargeable batteries for electric vehicles, portable electronics, and grid storage systems. The company’s bromine specialty products serve a wide range of industries, including oil and gas drilling fluids, fire safety solutions, and water treatment. In its catalysts division, Albemarle provides products for petroleum refining, chemical processing and emissions control.

Founded in 1994 as a spin-off from Ethyl Corporation, Albemarle has grown through strategic acquisitions and capacity expansions to become one of the world’s foremost chemical producers.

Read More Five stocks we like better than Albemarle Nutanix’s Rally Has a Bigger Story Than Earnings as AMD’s AI Bet Takes Shape SEC Probe Puts Wall Street Leverage Risk Back in Focus A Bearish-Dollar Options Surge Raises the Stakes for Warsh at Jackson Hole Five Below’s Turnaround Is Working—But Has the Stock Run Too Far? Want to see what other hedge funds are holding ALB? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Albemarle Corporation (NYSE:ALB – Free Report).

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Key Takeaways Albemarle shares fell 27.7% in three months as weaker lithium prices pressured the stock.ALB is expanding lithium capacity, improving productivity and cutting costs to support growth.Albemarle expects lithium demand to witness a 10-20% CAGR from 2025 to 2030, led by storage.
Albemarle Corporation’s (ALB - Free Report) shares have tumbled 27.7% in the past three months, underperforming the Zacks Chemical - Diversified industry decline of 8.3% and the S&P 500’s 3.2% increase.

Falling lithium market prices have been weighing on ALB stock. Lithium prices have pulled back amid slowing demand for electric vehicles (EVs) in China, elevated inventories and expectations for higher supply from mine restarts and capacity expansions. EV orders have moderated in China, the world’s largest lithium consumer, while demand from the energy storage market remains resilient.

ALB’s 3-month Price Performance Image Source: Zacks Investment Research

Reflecting the retreat in lithium prices, ALB stock broke below its 50-day simple moving average (SMA) on May 15, 2026. It also slipped below its 200-day SMA on June 23, 2026. The 50-day SMA is reading lower than the 200-day SMA, following a death crossover on July 21, 2026, signaling a bearish trend.      

Albemarle Trades Below 50-Day SMA Image Source: Zacks Investment Research

Given the pullback in Albemarle’s shares, investors might be tempted to snap up the stock. But is this the right time to buy ALB? Let’s find out.

Growing Lithium Demand and Productivity Aid AlbemarleAlbemarle is well-placed to gain from long-term growth in the battery-grade lithium market. The market for lithium batteries and energy storage remains strong, offering significant opportunities for the company to develop innovative products and expand capacity. Lithium demand is expected to grow on the back of significant global EV penetration.

ALB expects lithium demand to witness a compound annual growth rate (CAGR) of 10-20% from 2025 to 2030. Stationary storage is expected to be a significant driver for lithium demand along with EVs. Albemarle expects demand to grow roughly 15-40% this year, with growth already trending near the higher end of the range.

The company is strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion and plant productivity improvements are supporting its volumes.

The Salar yield improvement project in Chile has achieved a 50-60% operating rate, and the ramp-up continues to deliver encouraging outcomes. Albemarle, in March 2026, submitted the environmental assessment permit for a commercial direct lithium extraction (DLE) project at Salar de Atacama. The DLE pilot plant supports future growth at Salar de Atacama and has demonstrated lithium recoveries of more than 90%. The CGP3 expansion at the Greenbushes spodumene mine in Australia is underway and is expected to reach full production in first-quarter 2027.

Albemarle is taking aggressive cost-saving and productivity actions. The company delivered roughly $450 million in cost and productivity improvements for full-year 2025, having surpassed its initial target of $300-$400 million. It expects additional cost and productivity improvements of $100-$150 million in 2026, with $100 million already delivered.

ALB is taking actions to maintain its competitive position, including the initiation of a comprehensive review of cost and operating structure, optimization of the conversion network and reduction of capital expenditure.

ALB’s Strong Financial Health Supports Capital AllocationAlbemarle remains committed to driving shareholder value by leveraging healthy cash flows and strong liquidity. Its operating cash flow was around $1.3 billion in 2025, up roughly 86% from the prior year. At the end of the second quarter of 2026, it had liquidity of around $3.2 billion, including cash and cash equivalents of around $1.6 billion. The company generated an operating cash flow of $710 million and free cash flow of $638 million in the second quarter. Operating cash flow for the first half nearly doubled year over year to roughly $1.1 billion.

The company remains focused on maintaining its dividend payout. It has raised its quarterly dividend for the 30th straight year. ALB offers a dividend yield of 1.3% at the current stock price. Its peers, Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Rio Tinto Group (RIO - Free Report) , have a dividend yield of 3.7% and 5%, respectively.

Volume and Margin Pressure Weigh on ALB StockALB’s Energy Storage unit faces volume pressure in 2026, which may affect the segment’s sales. The company’s guidance reflects flat to 4% lower year-over-year Energy Storage sales volumes in 2026. Albemarle expects Energy Storage sales volumes of 225-235 kilotons (kt), compared with 235kt in 2025, as higher Wodgina output partly offsets a delay in the CGP3 ramp-up following the June 9, 2026 fire. Lower sales volumes are expected to result in a decline in Energy Storage sales in the third quarter.

Some impacts of the lithium price retreat are also expected to reflect on the company’s performance in the third quarter. ALB expects sequentially lower prices and volumes to result in a decline in Energy Storage sales and margins compared with the second quarter.

ALB’s Earnings Estimates SouthboundThe Zacks Consensus Estimate for 2026 for ALB has been revised downward over the past 60 days. The consensus estimate for third-quarter 2026 has been going down over the same time frame.

Image Source: Zacks Investment Research

A Look at ALB’s ValuationALB is currently trading at a forward price-to-sales ratio of 2.38, above the industry’s 0.93. It is trading at a premium to Rio Tinto and in line with Sociedad Quimica. Albemarle has a Value Score of B. Rio Tinto and Sociedad Quimica currently have a Value Score of A and C, respectively.

ALB’s P/S F12M Vs. Industry, SQM and RIO Image Source: Zacks Investment Research

Final Thoughts: Hold Onto ALB SharesAlbemarle is poised to benefit from project ramp-ups, ongoing efforts to expand its global lithium conversion capacity and productivity improvement initiatives. The company remains well-positioned to gain from the long-term expansion of the battery-grade lithium market. Near-term headwinds include lower Energy Storage volumes, weaker lithium prices and margin pressure. With shares below key moving averages and trading at a premium to the industry, immediate upside appears limited. Also, declining earnings estimates cast a pall on the company's prospects. Considering these factors, holding onto this Zacks Rank #3 (Hold) stock will be prudent for investors who already own it. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /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, 2026.

Second 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 $1.7 billion, up 31% due to higher pricing in Energy Storage (+73%) and higher pricing and volumes in Specialties (price +11%, volume +8%). Net income of $480 million, or $3.52 per diluted share attributable to common shareholders.   Adjusted EBITDA(a) of $858 million; up 155% due primarily to higher pricing in Energy Storage, increased pricing and volumes in Specialties and ongoing cost and productivity improvements. Adjusted EBITDA expanded in both Energy Storage (+229%) and Specialties (+61%). Cash from operating activities of $710 million and free cash flow of $638 million(a). Operating cash flow conversion of 83%(a), primarily driven by timing of an increased dividend from the Talison joint venture and non-recurring working capital benefits. Delivered $100 million in year-to-date run-rate cost and productivity improvements, tracking towards the high end of our full-year target of $100 to $150 million. Improving full-year 2026 outlook considerations including: Increasing full-year Specialties net sales outlook to $1.4 to $1.6 billion and adjusted EBITDA outlook to $275 to $325 million, due to stronger-than-expected pricing and volume performance year to date. Expect minimal impact to Energy Storage sales volume related to the fire at Talison CGP3 which occurred on June 9, in part due to better-than-planned output from the Wodgina mine. Reducing full-year capital expenditure forecast to approximately $500 million due to ongoing capital efficiency improvements. (a) See Non-GAAP Reconciliations for further details.

"Albemarle delivered another quarter of strong results, reflecting improved pricing, continued strength in Specialties, disciplined cost and productivity execution, and strong cash generation," said Kent Masters, Chairman and CEO. "We continue to see resilient demand fundamentals across our core markets, including energy storage, electric vehicles, and semiconductors. We are advancing our highest value organic growth opportunities while maintaining a disciplined approach to capital allocation and execution."

Second Quarter 2026 Results

In millions, except per share amounts

Q2 2026

Q2 2025

$ Change

% Change

Net sales

$   1,743.3

$   1,330.0

$      413.3

31.1 %

Net income attributable to Albemarle Corporation

$      480.0

$       22.9

$      457.1

1,996.2 %

Adjusted EBITDA(a)

$      858.1

$      336.5

$      521.6

155.0 %

Diluted income (loss) per share attributable to common
shareholders

$        3.52

$      (0.16)

$       3.68

NM

   Non-recurring and other unusual items(a)

0.22

0.27

Adjusted diluted income per share attributable to
common shareholders(a)(b)

$       3.75

$       0.11

$       3.64

NM

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

(b) Totals may not add due to rounding.

Net sales for the second quarter of 2026 were $1.7 billion compared to $1.3 billion for the prior-year quarter, up 31%, driven primarily by higher prices in both Energy Storage and Specialties and volume growth in Specialties. Adjusted EBITDA of $858 million increased by $522 million from the prior-year quarter, primarily due to higher net sales and ongoing cost and productivity improvements.

Net income attributable to Albemarle of $480 million increased year over year by $457 million. The effective income tax rate for the second quarter of 2026 was 21.3% or 19.1% on an adjusted basis.

Energy Storage Results

In millions

Q2 2026

Q2 2025

$ Change

% Change

Net Sales

$       1,276.7

$         717.7

$         559.0

77.9 %

Sales Volume (kT LCE)(a)

65

59

6

11.0 %

Avg. Realized Price ($/kg LCE)(a)

$         19.53

$         12.17

$           7.36

60.5 %

Adjusted EBITDA

$         723.5

$         219.7

$         503.7

229.3 %

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

Energy Storage net sales for the second quarter of 2026 were $1.3 billion, an increase of $559 million, or 78%, due to higher pricing. Adjusted EBITDA of $723 million increased $504 million, or 229%, primarily due to higher lithium pricing partially offset by higher CORFO commissions.

Specialties Results

In millions

Q2 2026

Q2 2025

$ Change

% Change

Net Sales

$         423.5

$         351.6

$           71.9

20.5 %

Adjusted EBITDA

$         117.7

$           73.0

$           44.7

61.3 %

Specialties net sales for the second quarter of 2026 were $423 million, an increase of $72 million, or 20%, primarily due to higher volumes (+8%) and pricing (+11%). Adjusted EBITDA of $118 million increased $45 million, or 61%, 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. 

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.

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 strong year to date performance driven by volume growth in bromine specialties and cost and productivity improvements. 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. Second-half outlook assumes stabilization in the bromine market and continued uncertainties including the situation in the Middle East. Operations at the Jordan Bromine Company (JBC) joint venture are in line with expectations as it continues to navigate geopolitical tensions in the region.

Segment FY 2026E

Specialties net sales

$1.4 - $1.6 billion

Specialties adjusted EBITDA

$275 - $325 million

Other Corporate Outlook Considerations
Albemarle expects its full-year 2026 capital expenditures to be approximately $500 million, down 15% compared to 2025 due to ongoing capital efficiency improvements.

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 are expected to be immaterial post transaction.

Interest and financing expense is 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

~$500 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)

~136 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 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 $1.1 billion in the first half of 2026 increased $518 million compared to the prior-year period. Capital expenditures of $170 million in the first six months of 2026 decreased by $132 million versus the prior-year period.

Balance Sheet and Liquidity
As of June 30, 2026, Albemarle had estimated liquidity of approximately $3.2 billion, including $1.6 billion of cash and cash equivalents, $1.5 billion available under our revolver and $78 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 0.5(a).

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

Earnings Call

Date:

Thurs., August 6, 2026

Time:

8:00 AM Eastern time

Dial-in (U.S.):

1-800-590-8290

Dial-in (International):

1-240-690-8800

Conference ID:

ALBQ2

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; 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, including tensions in the Middle East; 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; 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

(In Thousands Except Per Share Amounts) (Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Net sales

$ 1,743,313

$ 1,329,992

$ 3,172,044

$ 2,406,873

Cost of goods sold

1,153,012

1,133,116

2,080,777

2,053,698

Gross profit

590,301

196,876

1,091,267

353,175

Selling, general and administrative expenses

126,353

132,457

263,759

255,959

Restructuring charges and asset write-offs

7,337

4,448

33,203

3,385

Research and development expenses

3,667

12,444

12,837

26,543

Loss on sale of business

—

—

95,018

—

Operating income

452,944

47,527

686,450

67,288

Interest and financing expenses

(30,924)

(49,939)

(64,045)

(98,916)

Other income (expenses), net

19,629

(6,559)

73,439

3,691

Income (loss) before income taxes and equity in net
income of unconsolidated investments

441,649

(8,971)

695,844

(27,937)

Income tax expense

94,002

34,094

115,513

30,116

Income (loss) before equity in net income of
unconsolidated investments

347,647

(43,065)

580,331

(58,053)

Equity in net income of unconsolidated investments
(net of tax)

151,564

78,258

247,857

142,544

Net income

499,211

35,193

828,188

84,491

Net income attributable to noncontrolling interests

(19,252)

(12,296)

(29,138)

(20,246)

Net income attributable to Albemarle Corporation

479,959

22,897

799,050

64,245

Mandatory convertible preferred stock dividends

(41,687)

(41,687)

(83,375)

(83,375)

Net income (loss) attributable to Albemarle Corporation
common shareholders

$   438,272

$   (18,790)

$   715,675

$   (19,130)

Basic earnings (loss) per share attributable to common
shareholders

$        3.72

$      (0.16)

$        6.07

$      (0.16)

Diluted earnings (loss) per share attributable to
common shareholders

$        3.52

$      (0.16)

$        5.87

$      (0.16)

Weighted-average common shares outstanding – basic

117,961

117,665

117,907

117,634

Weighted-average common shares outstanding –
diluted

136,212

117,665

136,170

117,634

Albemarle Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands) (Unaudited)

June 30,

December 31,

2026

2025

ASSETS

Current assets:

Cash and cash equivalents

$       1,631,688

$       1,618,001

Trade accounts receivable

603,805

593,502

Other accounts receivable

123,870

105,110

Inventories

1,384,563

1,179,271

Other current assets

200,275

140,440

Current assets held for sale

—

371,815

Total current assets

3,944,201

4,008,139

Property, plant and equipment

11,902,156

11,768,840

Less accumulated depreciation and amortization

3,442,831

3,156,429

Net property, plant and equipment

8,459,325

8,612,411

Investments

1,109,241

900,926

Other assets

707,577

647,185

Goodwill

1,482,672

1,499,657

Other intangibles, net of amortization

202,079

214,233

Noncurrent assets held for sale

—

491,660

Total assets

$     15,905,095

$     16,374,211

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable to third parties

$         670,229

$         779,160

Accounts payable to related parties

445,421

134,369

Accrued expenses

507,556

521,831

Current portion of long-term debt

74,677

74,077

Dividends payable

61,514

61,387

Income taxes payable

131,703

35,467

Current liabilities held for sale

—

191,753

Total current liabilities

1,891,100

1,798,044

Long-term debt

1,802,107

3,119,464

Postretirement benefits

45,198

44,744

Pension benefits

105,729

117,361

Other noncurrent liabilities

1,158,555

1,084,892

Deferred income taxes

368,552

368,275

Noncurrent liabilities held for sale

—

59,970

Commitments and contingencies

Equity:

Albemarle Corporation shareholders' equity:

Common stock

1,180

1,178

Mandatory convertible preferred stock

2,235,105

2,235,105

Additional paid-in capital

3,048,664

3,018,213

Accumulated other comprehensive loss

(243,599)

(334,807)

Retained earnings

5,233,819

4,613,676

Total Albemarle Corporation shareholders' equity

10,275,169

9,533,365

Noncontrolling interests

258,685

248,096

Total equity

10,533,854

9,781,461

Total liabilities and equity

$     15,905,095

$     16,374,211

Albemarle Corporation and Subsidiaries

Selected Consolidated Cash Flow Data

(In Thousands) (Unaudited)

Six Months Ended

June 30,

2026

2025

Cash and cash equivalents at beginning of year

$  1,618,001

$  1,192,230

Cash flows from operating activities:

Net income

828,188

84,491

Adjustments to reconcile net income to cash flows from operating activities:

Depreciation and amortization

313,606

330,485

Loss on sale of business

95,018

—

Gain on sale of equity investment

(42,300)

—

Stock-based compensation and other

14,661

17,068

Equity in net income of unconsolidated investments (net of tax)

(247,857)

(142,544)

Dividends received from unconsolidated investments and nonmarketable
securities

131,744

67,765

Pension and postretirement expense

5,299

3,504

Pension and postretirement contributions

(14,298)

(9,934)

Unrealized (gain) loss on investments in marketable securities

(2,792)

4,984

Gain on early extinguishment of debt

(12,543)

—

Deferred income taxes

(19,798)

(38,907)

Working capital changes

(53,125)

(96,762)

Noncurrent liability changes and other, net

60,438

318,030

Net cash provided by operating activities

1,056,241

538,180

Cash flows from investing activities:

Capital expenditures

(170,407)

(302,252)

Proceeds from sale of businesses, net of cash sold

525,156

—

Proceeds from sale of property and equipment

—

23,751

Proceeds from sale of investments

123,270

—

Proceeds from sale of available for sale debt securities

—

288,000

(Payments) proceeds from settlement of foreign currency forward contracts,
net

(18,772)

171,262

Sales of marketable securities, net

1,392

2,971

Investments in equity investments and nonmarketable securities

(119)

(120)

Net cash provided by investing activities

460,520

183,612

Cash flows from financing activities:

Repayments of long-term debt and credit agreements

(1,314,151)

(29,103)

Proceeds from borrowings of long-term debt and credit agreements

35,952

19,488

Other debt repayments, net

(12,309)

(2,427)

Fees related to early extinguishment of debt

(1,686)

—

Dividends paid to common shareholders

(95,372)

(95,244)

Dividends paid to mandatory convertible preferred shareholders

(83,375)

(83,375)

Dividends paid to noncontrolling interests

(37,463)

(18,169)

Proceeds from exercise of stock options

19,635

1,186

Withholding taxes paid on stock-based compensation award distributions

(4,199)

(2,941)

Other

(438)

(55)

Net cash used in financing activities

(1,493,406)

(210,640)

Net effect of foreign exchange on cash and cash equivalents

(9,668)

103,447

Increase in cash and cash equivalents

13,687

614,599

Cash and cash equivalents at end of period

$  1,631,688

$  1,806,829

Albemarle Corporation and Subsidiaries

Consolidated Summary of Segment Results

(In Thousands) (Unaudited) 

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Net sales:

Energy Storage

$             1,276,684

$                717,656

$             2,167,849

$             1,242,221

Specialties

423,484

351,560

781,897

672,574

Total segment net sales

1,700,168

1,069,216

2,949,746

1,914,795

Corporate and all other

43,145

260,776

222,298

492,078

Total net sales

$             1,743,313

$             1,329,992

$             3,172,044

$             2,406,873

Adjusted EBITDA:

Energy Storage

$                723,457

$                219,725

$             1,274,813

$                406,080

Specialties

117,720

72,977

193,849

131,643

Total segment adjusted EBITDA

841,177

292,702

1,468,662

537,723

Corporate and all other

16,920

43,773

53,249

65,896

Total adjusted EBITDA

$                858,097

$                336,475

$             1,521,911

$                603,619

See accompanying non-GAAP reconciliations below.

Additional Information Regarding Non-GAAP Measures

It should be noted that adjusted net income attributable to Albemarle Corporation, adjusted net income (loss) attributable to Albemarle Corporation common shareholders, adjusted diluted income (loss) per share attributable to common shareholders, non-operating pension and other post-employment benefit ("OPEB") items per diluted share, non-recurring and other unusual items per diluted share, adjusted effective income tax rates, EBITDA, adjusted EBITDA (on a consolidated basis), EBITDA margin, adjusted EBITDA margin, operating cash flow conversion and net debt to adjusted EBITDA ratio are financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States, or GAAP. These non-GAAP measures should not be considered as alternatives to Net income attributable to Albemarle Corporation ("earnings") or other comparable measures calculated and reported in accordance with GAAP. These measures are presented here to provide additional useful measurements to review the company's operations, provide transparency to investors and enable period-to-period comparability of financial performance. The company's chief operating decision maker uses these measures to assess the ongoing performance of the company and its segments, as well as for business and enterprise planning purposes.

A description of other non-GAAP financial measures that Albemarle uses to evaluate its operations and financial performance, and reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found on the following pages of this press release, which is also is available on Albemarle's website at https://investors.albemarle.com. 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. The amounts and timing of these items are uncertain and could be material to the company's results calculated in accordance with GAAP.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Non-GAAP Reconciliations

(Unaudited)

See below for a reconciliation of adjusted net income attributable to Albemarle Corporation, adjusted net income (loss) attributable to Albemarle Corporation common shareholders, EBITDA and adjusted EBITDA (on a consolidated basis), which are non-GAAP financial measures, to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP. Adjusted net income attributable to Albemarle Corporation is defined as net income attributable to Albemarle Corporation before the non-recurring, other unusual and non-operating pension and other post-employment benefit (OPEB) items as listed below. The non-recurring and unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, certain litigation and arbitration costs and charges, and other significant non-recurring items. Adjusted net income (loss) attributable to Albemarle Corporation common stockholders is defined as adjusted net income attributable to Albemarle Corporation after mandatory convertible preferred stock dividends. EBITDA is defined as net income attributable to Albemarle Corporation before interest and financing expenses, income tax expense (benefit), and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus or minus the proportionate share of Windfield Holdings income tax expense, non-recurring and other unusual items, and non-operating pension and OPEB items as listed below.

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

In thousands, except percentages and per
share amounts

$

% of
net
sales

$

% of
net
sales

$

% of
net
sales

$

% of
net
sales

Net income attributable to Albemarle
Corporation

$479,959

$ 22,897

$            799,050

$ 64,245

Add back:

Non-operating pension and OPEB items
(net of tax)

626

169

1,597

294

Non-recurring and other unusual items (net
of tax)

30,555

31,708

111,945

10,508

Adjusted net income attributable to Albemarle
Corporation

511,140

54,774

912,592

75,047

    Mandatory convertible preferred stock
dividends(a)

—

(41,687)

—

(83,375)

Adjusted net income (loss) attributable to
Albemarle Corporation common shareholders

$511,140

$ 13,087

$            912,592

$ (8,328)

Adjusted diluted income (loss) per share
attributable to common shareholders

$   3.75

$   0.11

$   6.70

$  (0.07)

Adjusted weighted-average common shares
outstanding – diluted(a)

136,212

117,691

136,170

117,634

Net income attributable to Albemarle
Corporation

$479,959

27.5 %

$ 22,897

1.7 %

$            799,050

25.2 %

$ 64,245

2.7 %

Add back:

Interest and financing expenses

30,924

1.8 %

49,939

3.8 %

64,045

2.0 %

98,916

4.1 %

Income tax expense

94,002

5.4 %

34,094

2.6 %

115,513

3.6 %

30,116

1.3 %

Depreciation and amortization

155,801

8.9 %

168,731

12.7 %

313,606

9.9 %

330,485

13.7 %

EBITDA

760,686

43.6 %

275,661

20.7 %

1,292,214

40.7 %

523,762

21.8 %

Proportionate share of Windfield income
tax expense

70,766

4.1 %

33,150

2.5 %

112,300

3.5 %

58,476

2.4 %

Non-operating pension and OPEB items

854

— %

336

— %

2,201

0.1 %

611

— %

Non-recurring and other unusual items

25,791

1.5 %

27,328

2.1 %

115,196

3.6 %

20,770

0.9 %

Adjusted EBITDA

$858,097

49.2 %

$            336,475

25.3 %

$             1,521,911

48.0 %

$            603,619

25.1 %

Net sales

$             1,743,313

$             1,329,992

$             3,172,044

$             2,406,873

(a) Calculation of adjusted diluted income (loss) per share attributable to common shareholders for the three and six months ended June 30, 2026 excludes $41.7 million and $83.4 million, respectively, of mandatory convertible preferred stock dividends and includes the assumed conversion of preferred stock into the diluted shares outstanding, as this results in the more dilutive per share result.

Non-operating pension and OPEB items, consisting of mark-to-market actuarial gains/losses, settlements/curtailments, interest cost and expected return on assets, are not allocated to Albemarle's operating segments and are included in the Corporate and all other category. In addition, the company believes that these components of pension cost are mainly driven by market performance, and the company manages these separately from the operational performance of the company's businesses. In accordance with GAAP, these non-operating pension and OPEB items are included in Other income (expenses), net. Non-operating pension and OPEB items were as follows (in thousands):

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Interest cost

$     8,994

$     8,924

$    18,035

$    17,734

Expected return on assets

(8,140)

(8,588)

(15,834)

(17,123)

Total

$        854

$        336

$     2,201

$        611

In addition to the non-operating pension and OPEB items disclosed above, the company has identified certain other items and excluded them from Albemarle's adjusted net income (loss) calculation for the periods presented. A listing of these items, as well as a detailed description of each follows below (per diluted share):

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Restructuring charges and asset write-offs(1)

$       0.05

$       0.02

$       0.24

$       0.01

Acquisition and integration related costs(2)

0.01

0.01

0.01

0.02

Loss on sale of business/equity investment, net(3)

—

—

0.39

—

Gain on early extinguishment of debt(4)

—

—

(0.09)

—

(Gain) loss in fair value of public equity securities(5)

(0.05)

—

(0.01)

0.03

Other(6)

0.17

0.13

0.20

0.05

Tax related items(7)

0.04

0.11

0.08

(0.02)

Total non-recurring and other unusual items

$       0.22

$       0.27

$       0.82

$       0.09

(1)

In 2026, the Company announced it would place Kemerton Train 1 into care and maintenance. As a result, and in addition to other previously announced restructuring actions, the Company recorded charges of $7.3 million and $33.2 million in Restructuring charges and asset write-offs for the three and six months ended June 30, 2026, respectively. Due to the impact of valuation allowances, this resulted in total after-tax charges of $7.5 million and $33.3 million, or $0.05 and $0.24 per share, for the three and six months ended June 30, 2026, respectively. The three and six months ended June 30, 2025 included certain restructuring costs and adjustments to previously recorded costs related to restructuring actions originally entered into in 2024. As a result, the Company recorded charges of $4.4 million and $3.4 million in Restructuring charges and asset write-offs and gains (losses) of $0.1 million and ($0.1) million in Other income (expenses), net for the three and six months ended June 30, 2025, respectively. Due to the impact of valuation allowances, this resulted in total after-tax gains of $2.9 million and $0.8 million, or $0.02 and $0.01 per share, for the three and six months ended June 30, 2025, respectively.

(2)

Costs related to the acquisition, integration and divestitures for various significant projects, recorded in Selling, general and administrative expenses for the three and six months ended June 30, 2026 were $0.8 million and $1.9 million ($0.01 and $0.01 per share, with no income tax effect due to the impact of valuation allowances), respectively, and for the three and six months ended June 30, 2025 were $1.8 million and $3.2 million ($1.4 million and $2.5 million after income taxes, or $0.01 and $0.02 per share), respectively.

(3)

During the first quarter of 2026, the Company divested its controlling ownership interest in its Refining Solutions business and its full 50% ownership interest in the Eurecat joint venture. As a result of these transactions, the Company recorded a net loss of $52.7 million ($0.39 per share, with no income tax effect due to the impact of valuation allowances), representing the proceeds received less the carrying value as of the transaction dates.

(4)

During the first quarter of 2026, the Company completed a $1.3 billion debt tender and redemption, resulting in a gain on early extinguishment of debt of $12.5 million ($0.09 per share, with no income tax effect due to the impact of valuation allowances), representing the repurchase of this debt at a discount, partially offset by tender premiums and redemption fees.

(5)

Gains resulting from the net change in fair value of investments in public equity securities, recorded in Other income (expenses), net for the three and six months ended June 30, 2026 of $6.5 million and $1.0 million ($0.05 and $0.01 per share, with no income tax effect due to the impact of valuation allowances), respectively, and for the three and six months ended June 30, 2025 gains (losses) of $0.2 million and ($4.8) million ($0.1 million and ($3.8 million) after income taxes, or less than $0.01 and $0.03 per share), respectively.

(6)

Other adjustments for the three months ended June 30, 2026 included amounts recorded in:

Cost of goods sold - $3.9 million of expenses related to non-routine labor and compensation related costs that are outside normal compensation arrangements.
Selling, general and administrative expenses - Primarily comprised of $19.0 million of expenses, mainly consulting fees, related to the Company's strategic cost savings initiative.
Other income (expenses), net - Primarily related to $3.4 million of charges for asset retirement obligations at a site not part of our operations and a net loss of $1.5 million primarily driven by indemnification charges related to the Eurecat S.A. joint venture sale, partially offset by a $3.9 million gain resulting from the adjustment of indemnification related to previously disposed businesses.
After income taxes, these net losses totaled $22.8 million, or $0.17 per share.

Other adjustments for the three months ended June 30, 2025 included amounts recorded in:

Selling, general and administrative expenses - $8.3 million of gains from the sale of assets not part of our production operations, partially offset by $1.8 million of severance expenses not related to a restructuring plan.
Other income (expenses), net - $38.0 million loss resulting from the redemption of preferred equity in a Grace subsidiary, partially offset by $10.1 million of income from PIK dividends of that preferred equity prior to redemption.
After income taxes, these net losses totaled $15.3 million, or $0.13 per share.

Other adjustments for the six months ended June 30, 2026 included amounts recorded in:

Cost of goods sold - $3.9 million of expenses related to non-routine labor and compensation related costs that are outside normal compensation arrangements.
Selling, general and administrative expenses - Primarily comprised of $19.0 million of expenses, mainly consulting fees, related to the Company's strategic cost savings initiative and a $3.9 million charge for a non-income tax audit of a facility no longer controlled by the Company.
Other income (expenses), net - Primarily related to $3.4 million of charges for asset retirement obligations at a site not part of our operations and a net loss of $1.5 million primarily driven by indemnification charges related to the Eurecat S.A. joint venture sale, partially offset by a $3.9 million gain resulting from the adjustment of indemnification related to previously disposed businesses.
After income taxes, these net losses totaled $27.0 million, or $0.20 per share.

Other adjustments for the six months ended June 30, 2025 included amounts recorded in:

Selling, general and administrative expenses - $11.4 million of gains from the sale of assets not part of our production operations, partially offset by $1.8 million of severance expenses not related to a restructuring plan and $0.6 million of expenses related to certain historical legal matters.
Other income (expenses), net - $38.0 million loss resulting from the redemption of preferred equity in a Grace subsidiary and $1.9 million of charges for asset retirement obligations at a site not part of our operations, partially offset by $19.8 million of income from PIK dividends of the preferred equity in a Grace subsidiary prior to redemption and a $1.9 million gain primarily resulting from the adjustment of indemnification related to previously disposed businesses.
After income taxes, these net losses totaled $5.4 million, or $0.05 per share.

(7)

Included in Income tax expense for the three and six months ended June 30, 2026 are discrete net tax expenses of $6.0 million and $10.6 million, or $0.04 and $0.08 per share, respectively, primarily related to the impact of foreign tax reserves and foreign return to provisions.

Included in Income tax expense for the three and six months ended June 30, 2025 are discrete net tax expenses of $12.2 million, or $0.11 per share, and benefits of $2.0 million, or $0.02 per share, respectively, primarily related to the impact of foreign tax reserves and excess tax benefits realized from stock-based compensation arrangements.

See below for a reconciliation of the adjusted effective income tax rate, the non-GAAP financial measure, to the effective income tax rate, the most directly comparable financial measure calculated and reporting in accordance with GAAP (in thousands, except percentages).

Income (loss) before
income taxes and
equity in net income
of unconsolidated
investments

Income tax expense
(benefit)

Effective income tax
rate

Three months ended June 30, 2026

As reported

$             441,649

$              94,002

21.3 %

Non-recurring, other unusual and non-operating pension and OPEB
items

26,691

(4,490)

As adjusted

$             468,340

$              89,512

19.1 %

Three months ended June 30, 2025

As reported

$              (8,971)

$              34,094

(380.0) %

Non-recurring, other unusual and non-operating pension and OPEB
items

27,664

(4,213)

As adjusted

$              18,693

$              29,881

159.9 %

Six months ended June 30, 2026

As reported

$             695,844

$             115,513

16.6 %

Non-recurring, other unusual and non-operating pension and OPEB
items

104,853

(8,689)

As adjusted

$             800,697

$             106,824

13.3 %

Six months ended June 30, 2025

As reported

$             (27,937)

$              30,116

(107.8) %

Non-recurring, other unusual and non-operating pension and OPEB
items

21,381

10,579

As adjusted

$              (6,556)

$              40,695

(620.7) %

See below for the calculation of operating cash flow conversion and a reconciliation of free cash flow, a non-GAAP measure, to net cash provided by operating activities, the most directly comparable financial measure calculated and reporting in accordance with GAAP. The Company defines operating cash flow conversion as Net cash provided by operating activities from the statement of cash flows divided by adjusted EBITDA, which is a non-GAAP measure. A reconciliation of adjusted EBITDA, the non-GAAP financial measure, from net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reporting in accordance with GAAP, is provided in the above tables (in thousands, except percentages).

Three Months Ended

June 30, 2026

Free cash flow:

Net cash provided by operating activities

$               709,997

Less: Capital expenditures

(71,731)

Free cash flow

$               638,266

Operating cash flow conversion:

Net cash provided by operating activities

$               709,997

Adjusted EBITDA

$               858,097

Operating cash flow conversion

83 %

See below for the calculation of the net debt to adjusted EBITDA ratio ("Consolidated Leverage Ratio," as defined in our credit agreement), a non-GAAP financial measure, for the twelve months ended June 30, 2026 (in thousands, except ratio).

Twelve Months Ended

June 30, 2026

Adjusted EBITDA

$               2,016,285

Equity in net income of non-Windfield Holdings unconsolidated investments (net of tax)

544

Dividends received from non-Windfield Holdings unconsolidated investments

9,804

Consolidated Windfield-Adjusted EBITDA

$               2,026,633

Total Albemarle Corporation long-term debt (as reported)

$               1,876,784

49% Windfield Holdings debt

718,079

Off-balance sheet obligations and other

95,200

Consolidated Windfield-Adjusted Funded Debt

$               2,690,063

Less Cash

1,631,688

Less 49% Windfield Holdings cash

62,249

Consolidated Windfield-Adjusted Funded Net Debt

$                 996,126

Consolidated Leverage Ratio

0.5

Contact:

[email protected]

1.980.308.6194

SOURCE Albemarle Corporation

Key Takeaways Albemarle and Rio Tinto are well-positioned to benefit from rising lithium demand.ALB focuses on capacity expansion, cost cuts and strong cash flow to support growth.RIO advances major lithium projects, boosts output and leverages a strong balance sheet. Albemarle Corporation (ALB - Free Report) and Rio Tinto Group (RIO - Free Report) are prominent players in the lithium space. Both companies are well-positioned to gain from robust long-term growth in lithium demand from electric vehicles (EVs) and energy storage systems.

Falling lithium market prices are weighing on lithium stocks lately. Lithium prices have pulled back amid slowing demand for EVs in China, an inventory glut and prospects of increased supply from mine restarts and capacity additions. EV orders have slowed in China, the world’s biggest lithium consumer, while demand in energy storage systems remains healthy.

Let’s dive deep and closely compare the fundamentals of these two lithium producers to determine which one is a better investment option now in the prevailing lithium market environment.

The Case for ALBAlbemarle is well-placed to gain from long-term growth in the battery-grade lithium market. The market for lithium batteries and energy storage remains strong, offering significant opportunities for the company to develop innovative products and expand capacity. Lithium demand is expected to grow on the back of significant global EV penetration.

ALB expects lithium demand to witness a compound annual growth rate (CAGR) of 10-20% from 2025 to 2030. Stationary storage is expected to be a significant driver for lithium demand along with EVs. Albemarle expects demand to grow roughly 15-40% this year. Demand indicators stayed positive in the first quarter of 2026, with global Energy Storage Systems production rising 117% year over year.

The company is strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion and plant productivity improvements are supporting its volumes. ALB saw higher sales volumes (up 14% year over year) in its Energy Storage unit in the first quarter on the strength of its integrated conversion facilities.

The Salar yield improvement project in Chile has achieved a 50% operating rate, and the ramp-up continues to deliver encouraging outcomes. ALB has started the environmental permitting process for a commercial direct lithium extraction project at Salar de Atacama. The ramp-up at the Meishan lithium conversion facility in China is also progressing ahead of schedule.

Albemarle is taking aggressive cost-saving and productivity actions. The company delivered roughly $450 million in cost and productivity improvements in 2025, having surpassed its initial target of $300-$400 million. It expects additional cost and productivity improvements of $100-$150 million in 2026, with $40 million already delivered. ALB is taking actions to maintain its competitive position, including the initiation of a comprehensive review of cost and operating structure, optimization of the conversion network and reduction of capital expenditure.

 Albemarle remains committed to driving shareholder value by leveraging healthy cash flows and strong liquidity. Its operating cash flow was around $1.3 billion in 2025, up roughly 86% from the prior-year period. At the end of the first quarter, ALB had liquidity of around $2.7 billion, including cash and cash equivalents of around $1.1 billion. ALB generated an operating cash flow of $346 million and free cash flow of $248 million in the quarter.

The company paid down $1.3 billion of outstanding debt in March 2026, reducing annual interest expense by roughly $60 million. This followed the successful divestments of the controlling stake in Ketjen and its 50% interest in the Eurecat joint venture, which together generated $670 million in pre-tax proceeds.

The company remains focused on maintaining its dividend payout. It has raised its quarterly dividend for the 30th straight year. ALB offers a dividend yield of 1.4% at the current stock price.

The Case for RIORio Tinto holds one of the world’s largest lithium portfolios and a robust pipeline of development projects, positioning it well to benefit from the growing demand for lithium.  RIO produces lithium using several established methods, including direct lithium extraction (“DLE”) from brines, traditional pond-based brine extraction and hard-rock mining. The company also manufactures a broad suite of lithium products, including lithium chloride, lithium carbonate, lithium hydroxide, and spodumene concentrate.

RIO is expanding its lithium extraction capabilities through a new partnership with ILiAD Technologies, a leader in DLE technology. The collaboration supports the company’s efforts to enhance operational efficiency while improving sustainability and cost-effectiveness. ILiAD’s technology allows the extraction of high-purity lithium chloride from a wide range of lithium-rich brine resources and complements RIO’s existing DLE operations at Fénix and Rincon.

RIO is making progress with its high-value lithium projects. The fully owned Rincon Lithium Project in Argentina remains on track, with commissioning of the starter plant already being completed and ramp-up currently in progress, with full capacity expected by the end of 2026. RIO is investing $2.5 billion to expand Rincon, which has a capacity of 60,000 tons of battery-grade lithium carbonate annually with a 40-year mine life. First production from the project is expected in 2028, followed by a three-year ramp-up to full capacity. Rio Tinto has secured a $1.175 billion financing package from international lenders to support the development of the Rincon project.

The Fénix expansion project and Sal de Vida in Argentina, with a capital cost of $0.7 billion each, have achieved first production ahead of schedule. The Nemaska Lithium project, in which Rio Tinto now holds a 53.9% stake with the Government of Québec retaining the balance, is a fully integrated spodumene-to-lithium hydroxide development project comprising the lithium hydroxide plant in Bécancour and the Whabouchi spodumene mine with a production capacity of 32,000 tons. RIO initially acquired a 50% interest in Nemaska Lithium through the buyout of Arcadium in March 2025.

At Bécancour, engineering has been completed, with construction at more than 70%. RIO has decided to slow the pace of construction of the project during 2026, but remains fully committed to advancing the project. It expects construction to ramp up following optimization works and does not envision major changes to the project’s overall timeline.

RIO has a robust balance sheet and generates strong cash flows, which allow it to make investments in projects while driving shareholder returns. RIO generated a strong operating cash flow of $9.2 billion in the six months ended June 30, 2026, up 32% year over year. Free cash flow surged 75% year over year to roughly $3.8 billion. The company ended the period with cash and cash equivalents, and other short-term, highly liquid investments, totaling $9.1 billion.

Rio Tinto has a policy of returning 40-60% of its underlying earnings, with a 10-year track record of dividend payout at the top end of the range. It has declared an interim ordinary dividend of $3.4 billion, up 43% year over year, with a payout ratio of 50%. It offers a dividend yield of 5.5% at the current stock price.

ALB & RIO: Price Performance, Valuation & Other ComparisonsThe ALB stock is down 20% year to date, while RIO has gained 14.5%.

Image Source: Zacks Investment Research

ALB is currently trading at a forward price-to-sales ratio of 2.11. RIO is currently trading at a forward price-to-sales ratio of 1.84, below ALB.

Image Source: Zacks Investment Research

ALB’s long-term debt-to-capitalization is around 15.2%, lower than RIO’s 24.6%.  

Image Source: Zacks Investment Research

How the Zacks Consensus Estimate Compares for ALB & RIOThe Zacks Consensus Estimate for ALB’s 2026 sales implies year-over-year growth of 18.9%. The same for EPS suggests a 1,727.9% year-over-year rise. The EPS estimates for 2026 have been trending higher over the past 60 days.

Image Source: Zacks Investment Research

The consensus estimate for RIO’s 2026 sales and EPS implies a year-over-year rise of 14% and 27.7%, respectively. The EPS estimates for 2026 have been trending southward over the past 60 days.

Image Source: Zacks Investment Research

ALB or RIO: Which Stock Holds the Edge?Both ALB and RIO currently carry a Zacks Rank #3 (Hold), so picking one stock is not easy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ALB and RIO stand to benefit from higher lithium demand, driven by EVs and energy storage. Albemarle is benefiting from higher lithium volumes on project ramp-ups and actions to boost global lithium conversion capacity and productivity. RIO is advancing major lithium projects to boost output and leveraging a strong balance sheet. ALB's higher earnings growth projections suggest that it may offer better investment prospects in the current market environment. ALB’s lower leverage also suggests lower financial risks. Investors seeking exposure to the lithium space might consider Albemarle as the more favorable option at this time.

Key Takeaways Albemarle is expanding lithium conversion capacity to capture rising demand.ALB is seeing higher Energy Storage volumes, supported by integrated conversion facilities.ALB's 2026 EPS estimate has trended higher over the past 60 days, with sharp year-over-year expected growth. Albemarle Corporation (ALB - Free Report) is strategically executing its projects aimed at boosting its global lithium conversion capacity. The market for lithium batteries and energy storage remains strong, offering significant opportunities for the company to develop innovative products and expand capacity.

ALB remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion and plant productivity improvements are supporting its volumes. ALB saw higher sales volumes (up 14% year over year) in its Energy Storage unit in the first quarter on the strength of its integrated conversion facilities.

The Salar yield improvement project in Chile has achieved a 50% operating rate, and the ramp-up continues to deliver encouraging outcomes. ALB has started the environmental permitting process for a commercial direct lithium extraction project at Salar de Atacama. The ramp-up at the Meishan lithium conversion facility in China is also progressing ahead of schedule.  The company’s volumes are expected to continue to be supported by these capacity expansion actions going forward.

Among its peers, Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) has a robust balance sheet and generates strong cash flows, which allow it to make investments in driving production capacity. SQM logged strong lithium sales volumes of 69,000 metric tons in the first quarter. The Nova Andino Litio business recorded roughly 19% higher volumes compared to the prior-year quarter, driven by capacity expansion actions. SQM is operating at full capacity at the Mt. Holland mine and concentrator in Australia and continues to ramp up the Kwinana refinery.

 Rio Tinto Group (RIO - Free Report) is making progress with its high-value lithium projects. The fully owned Rincon Lithium Project in Argentina remains on track with commissioning of the starter plant already being completed and ramp-up currently in progress, with full capacity expected by the end of 2026. The Fénix expansion project and Sal de Vida in Argentina, with a capital cost of $0.7 billion each, are mechanically complete with first production expected in second-half 2026.

The Nemaska Lithium project, in which Rio Tinto now holds a 53.9% stake with the Government of Québec retaining the balance, is a fully integrated spodumene-to-lithium hydroxide development project comprising the lithium hydroxide plant in Bécancour and the Whabouchi spodumene mine with a production capacity of 32,000 tons. RIO initially acquired a 50% interest in Nemaska Lithium through the buyout of Arcadium in March 2025.

ALB’s Price Performance, Valuation & EstimatesAlbemarle has gained 64.7% in the past year compared with the Zacks Chemical - Diversified industry’s decline of 2.8%.

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ALB is currently trading at a forward price-to-sales ratio of 2.32, above the industry. It carries a Value Score of C.

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The Zacks Consensus Estimate for ALB’s 2026 earnings implies a year-over-year rise of 1,753.2%. The EPS estimates for 2026 have been trending higher over the past 60 days.

Image Source: Zacks Investment Research

Shares of Albemarle (ALB 3.34%) are flat so far this year, thanks to an oversupply of lithium and a flattened demand for electric vehicles (EVs) in the United States.

However, the long-term need for this critical metal is projected to increase 353% by the end of the decade, according to a report by the United Nations Conference on Trade and Development.

Albemarle, the largest lithium miner in the world in terms of production, is in a good position to benefit from that trend.

Image source: Getty Images.

The price of lithium is bouncing back After lithium prices collapsed from their 2022 peaks, the market finally found its floor in late 2024 and has staged a resilient year-to-date rebound. Chinese spot prices have climbed back into the $23 per kilogram (kg) range, up from their $10 kg low in the fall of 2024, thanks to a restocking cycle by battery manufacturers.

While EV demand is steady, a new catalyst has emerged: utility-scale battery energy storage systems (BESS). Driven by renewable energy mandates and surging power demands from artificial intelligence (AI) data centers, BESS output is projected to jump roughly 35% year over year.

Because major producers curtailed expansion plans during the downturn, analysts project a 4% global lithium supply deficit for 2026, which should act as a powerful tailwind for realized pricing.

Radical cost discipline and blowout earnings Albemarle has pivoted from a pure growth mindset to a stricter focus on operational efficiency. It slashed capital expenditures by 46% year over year in the first quarter, idled high-cost capacity, including its Kemerton Train 1 facility in Western Australia in February, and divested its Ketjen catalyst division in March, to become a lean, pure-play energy transition company.

The strategy is already paying off. In the first quarter, Albemarle reported sales of $1.4 billion, up 33% year over year, driven mainly by higher pricing and volume in energy storage. And adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $664 million, up 148% from the same period a year ago.

Even with disciplined spending, Albemarle remains on track to deliver a 15% volumetric compound annual growth rate (CAGR) in Energy Storage through 2027 by focusing strictly on high-return, tier-one assets such as its Greenbushes mine in Australia and the Salar de Atacama mine in Chile.

Today's Change

(

-3.34

%) $

-4.47

Current Price

$

129.23

A repaired balance sheet and an underpriced stock The company has used its surging free cash flow to execute a dramatic debt-clearing program. In the first quarter, Albemarle used $248 million in free cash flow alongside strategic actions to pay down $1.3 billion in debt, bringing its debt-to-EBITDA ratio down to a more secure 1.0x. This debt reduction slashed its weighted average interest rate to 3.1%, permanently lowering annual interest expenses.

Despite strong fundamental momentum, the stock has recently experienced short-term technical weakness, pulling back to the $140 range, while analysts' average price target is $214.65. The company's shares are trading for less than 12 times forward earnings. This leaves the stock trading at a discount to its intrinsic value, offering an excellent entry point for long-term investors.

The company's dividend yields an above-average 1.15% at its current share price, and with a payout ratio of 46%, there's room to grow its dividend. That means investors can afford to ride the stock's swings until it rises.