Albemarle raises Specialties profit outlook, cuts capex forecast

Albemarle reported third-quarter adjusted earnings of $2.58 per share, in line with the $2.56 consensus estimate, the company said in its results release on Nov. 4.

Revenue was $1.55 billion, above the $1.53 billion consensus estimate.

Albemarle supplies lithium and bromine to customers around the world, according to its results release. The company raised its outlook for Specialties adjusted EBITDA in the same release.

Here's how the company did:

• Net sales: $1.55 billion vs. $1.31 billion a year earlier
• Adjusted EPS: $2.58 vs. $2.56 expected, after a loss of 19 cents a year earlier
• Net income attributable to Albemarle: $296.8 million vs. a loss of $160.7 million a year earlier
• Adjusted EBITDA: $645.5 million vs. $225.6 million a year earlier

Net sales rose 19% from a year earlier, driven primarily by higher prices in both Energy Storage and Specialties, the company said.

Revenue has risen in each of the last three quarters, from $1.31 billion to $1.74 billion, according to its SEC filings.

Energy Storage and Specialties

Energy Storage net sales were $1.12 billion, up 58% on higher pricing. Adjusted EBITDA reached $560 million, up 351%, primarily due to improved lithium pricing.

Sales volume fell 18.8%, the company said, after timing events in the prior-year period.

Specialties net sales were $388.6 million, up 12.7%, on higher pricing and volumes. Adjusted EBITDA was $98.7 million, up 30.7%.

The Jordan Bromine Company joint venture achieved record quarterly production. Talison's Chemical Grade Plant 3 achieved 30 days of nameplate performance in September, the company said.

2026 outlook

Albemarle now expects Specialties adjusted EBITDA of $350 million to $375 million for 2026, up from $275 million to $325 million in its Aug. 5 results release. Its Specialties net sales outlook was kept at $1.4 billion to $1.6 billion.

The company cut its full-year capital expenditure forecast to $300 million to $350 million from approximately $500 million. It cited capital efficiency improvements and resequencing of some early-stage projects.

Fourth-quarter net sales and adjusted EBITDA in Energy Storage are expected to decrease sequentially on lower market pricing, the company said.

"Albemarle delivered another solid quarter, reflecting disciplined execution across the enterprise," said Chairman and CEO Kent Masters.

Cash and balance sheet

Operating cash flow was $406 million and free cash flow was $325 million in the quarter. Liquidity was about $3.4 billion as of Sept. 30, including $1.8 billion of cash.

Total debt was $1.9 billion, a net debt to adjusted EBITDA ratio of about 0.3 under its credit agreement.

The company recorded $8.0 million of restructuring charges and asset write-offs in the quarter, after it announced it would place Kemerton Train 1 into care and maintenance.

The company delivered more than $150 million in year-to-date run-rate cost and productivity improvements, achieving the high end of its full-year target.

The company will hold a teleconference for analysts and media on Nov. 5 at 8:00 a.m. Eastern time.