Albemarle Corporation — Second Quarter 2026 Earnings Summary

Financial Performance

• Net sales reached $1.74 billion for Q2 2026, a 31% increase year-over-year from $1.33 billion in Q2 2025.
• Net income attributable to Albemarle Corporation was $480 million, up 1,996% from $22.9 million in the prior-year quarter.
• Diluted income per share attributable to common shareholders was $3.52, compared to a loss of $0.16 per share in Q2 2025.
• Adjusted EBITDA totaled $858 million, a 155% increase from $336.5 million in Q2 2025.
• Operating cash flow was $710 million with free cash flow of $638 million; operating cash flow conversion was 83%.
• Total debt stood at $1.9 billion as of June 30, 2026, resulting in a net debt to adjusted EBITDA ratio of approximately 0.5.
• Estimated liquidity was $3.2 billion, comprising $1.6 billion in cash and cash equivalents, $1.5 billion available under the revolver, and $78 million under other credit lines.

Guidance and Future Outlook

• Increased full-year 2026 Specialties net sales outlook to $1.4–$1.6 billion and adjusted EBITDA outlook to $275–$325 million.
• Reduced full-year 2026 capital expenditure forecast to approximately $500 million, down 15% from 2025.
• Total corporate FY 2026 net sales outlook ranges from $4.1–$7.8 billion depending on observed lithium market price scenarios ($10, $20, or $30 per kg LCE).
• Total corporate FY 2026 adjusted EBITDA outlook ranges from $0.9–$4.4 billion based on the same price scenarios.
• Energy Storage production volumes are expected to increase year-over-year, with total sales volumes projected between 225 and 235 kilotons lithium carbonate equivalent.
• Interest and financing expenses for 2026 are expected to be between $120 and $140 million.
• Depreciation and amortization for 2026 is forecasted at $660–$680 million.
• Adjusted effective tax rate for 2026 is projected between (50)% and 30%.
• Corporate adjusted EBITDA (including FX, Ketjen equity income, and PCS) is expected to be between ($20) million and $20 million.

Business Segments and Product Lines

• Energy Storage: Net sales of $1.28 billion, up 78% year-over-year, driven by a 60.5% increase in average realized price to $19.53/kg LCE and an 11% increase in sales volume to 65 kilotons. Adjusted EBITDA rose 229% to $723 million.
• Specialties: Net sales of $423 million, up 20% year-over-year, driven by volume growth of 8% and pricing increases of 11%. Adjusted EBITDA increased 61% to $118 million.
• Talison CGP3 Fire Impact: Minimal impact expected to Energy Storage sales volume due to the June 9 fire at Talison CGP3, offset by better-than-planned output from the Wodgina mine.
• Ketjen Transaction: The refining catalyst solutions business is now classified as equity income following the March 2, 2026 sale of a 51% stake; adjusted EBITDA and equity income contributions from this business are expected to be immaterial post-transaction.
• Jordan Bromine Company (JBC): Operations are in line with expectations despite navigating geopolitical tensions in the Middle East.

Market and Competitive Landscape

• Demand fundamentals remain resilient across core markets including energy storage, electric vehicles, and semiconductors.
• Specialties outlook reflects modest volume growth in semiconductors, oil and gas, flame retardants, and pharmaceuticals, partially offset by expected softness in automotive and petrochemicals.
• Second-half Specialties outlook assumes stabilization in the bromine market.
• Outlook scenarios assume flat market pricing flowing through Energy Storage's current contract book, which includes approximately 40% of salts volume on long-term agreements.
• Spodumene pricing is assumed to average 10% of the lithium carbonate equivalent (LCE) price in outlook scenarios.

Risks and Challenges

• Geopolitical conflicts and political unrest, specifically tensions in the Middle East, continue to create uncertainties for operations and the bromine market.
• Fluctuations in lithium market prices significantly impact revenue and EBITDA, as reflected in the scenario-based guidance.
• Potential production volume shortfalls, such as the Talison CGP3 fire, remain a risk.
• Cost escalations driven by the conflict in the Middle East are being actively managed.
• Forward-looking statements are subject to risks including changes in trade policies, tariffs, customer demand, raw material availability, and regulatory actions.

Management Commentary and Tone

• Kent Masters, Chairman and CEO, described the quarter as delivering "strong results" driven by improved pricing, continued strength in Specialties, disciplined cost execution, and strong cash generation.
• Management expressed confidence in advancing highest value organic growth opportunities while maintaining a disciplined approach to capital allocation.
• The tone indicates optimism regarding resilient demand fundamentals and the ability to navigate operational challenges like the Talison fire through alternative mine output.

Other Key Points

• Delivered $100 million in year-to-date run-rate cost and productivity improvements, tracking toward the high end of the full-year target of $100–$150 million.
• Cash from operations for the first half of 2026 was $1.1 billion, an increase of $518 million compared to the prior-year period.
• Capital expenditures for the first six months of 2026 were $170 million, a decrease of $132 million versus the prior-year period.
• The company recorded a loss on sale of business of $95 million in the first half of 2026 related to the divestiture of the Refining Solutions business and the Eurecat joint venture.
• A gain on early extinguishment of debt of $12.5 million was recorded in the first half of 2026 following a $1.3 billion debt tender and redemption.
• Restructuring charges and asset write-offs totaled $33.2 million for the first half of 2026, including charges related to placing Kemerton Train 1 into care and maintenance.
• Earnings call scheduled for Thursday, August 6, 2026, at 8:00 AM Eastern time.