Albemarle — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales reached $1.6 billion for the quarter, a 19% year-over-year increase driven by higher pricing in Energy Storage (+68%) and higher pricing (+10%) and volumes (+3%) in Specialties.
• Net income attributable to Albemarle was $297 million ($2.15 per diluted share), compared to a net loss of $160.7 million ($1.72 per diluted share) in the prior-year quarter.
• Adjusted net income was $354 million ($2.58 per diluted share), excluding restructuring and other related charges.
• Adjusted EBITDA totaled $646 million, an 186% year-over-year increase, primarily due to higher pricing in Energy Storage, increased pricing and volumes in Specialties, and cost and productivity improvements.
• Cash from operating activities was $406 million, with free cash flow of $325 million.
• Operating cash flow conversion was 63%, supported by a cash dividend from the Talison joint venture which offset timing of working capital changes.
• Year-to-date operating cash flow for the first nine months was $1.5 billion, a $568 million increase compared to the prior-year period, with year-to-date operating cash flow conversion at 67%.
• Year-to-date free cash flow was $1.2 billion.
• Total debt was $1.9 billion as of September 30, 2026, resulting in a net debt to adjusted EBITDA ratio of approximately 0.3.
• Estimated liquidity was $3.4 billion, comprising $1.8 billion in cash and cash equivalents, $1.5 billion available under the revolver, and $79 million available under other credit lines.

Guidance and Future Outlook:

• Full-year 2026 Specialties adjusted EBITDA outlook was raised to $350-$375 million (previously $275-$325 million), driven by cost and productivity improvements.
• Full-year 2026 capital expenditure forecast was reduced to $300-$350 million (previously approximately $500 million), reflecting capital efficiency improvements and resequencing of early-stage projects.
• Total corporate net sales for 2026 are projected between $4.1-$4.3 billion (at FY 2025 avg. lithium prices), $5.7-$6.0 billion (at Q1 2026 avg. prices), or $7.5-$7.8 billion (at 2021-2025 avg. prices).
• Total corporate adjusted EBITDA for 2026 is projected between $0.9-$1.0 billion (at FY 2025 avg. prices), $2.4-$2.6 billion (at Q1 2026 avg. prices), or $4.2-$4.4 billion (at 2021-2025 avg. prices).
• Energy Storage production volumes are expected to increase year-over-year in 2026.
• Sales volumes for 2026 are expected to be in the range of 225 to 235 kilotons lithium carbonate equivalent (LCE).
• Fourth quarter 2026 net sales and adjusted EBITDA are expected to decrease sequentially due to lower market pricing and the consumption of higher-cost spodumene inventory.
• Specialties net sales for 2026 are expected to be $1.4-$1.6 billion.
• Other corporate adjusted EBITDA (including FX, Ketjen equity income, and PCS) is expected to be ($20)-$20 million.
• Depreciation and amortization for 2026 is expected to be $660-$680 million.
• Interest and financing expenses for 2026 are expected to be $120-$140 million.

Business Segments and Product Lines:

• Energy Storage: Net sales were $1.1 billion (up 58% year-over-year), driven by higher pricing. Adjusted EBITDA was $560 million (up 351%). Sales volume was 56 kT LCE, down 18.8% year-over-year due to timing events in the prior year including inventory destocking and higher-than-usual spodumene shipments. Average realized price was $20.02/kg LCE, up 94.7% year-over-year.
• Specialties: Net sales were $389 million (up 13% year-over-year), driven by higher pricing (+10%) and volumes (+3%). Adjusted EBITDA was $99 million (up 31%), driven by favorable pricing in bromine and derivatives, productivity improvements, and proactive management of cost escalations. The Jordan Bromine Company (JBC) joint venture achieved record quarterly production.
• Talison's Chemical Grade Plant 3 (CGP3) achieved 30 days of nameplate performance in September.
• 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.

Market and Competitive Landscape:

• Global lithium demand was up 48% year-to-date through August, driven by electric vehicles and energy storage.
• Outlook 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.
• Spodumene pricing is assumed to average 10% of the lithium carbonate equivalent (LCE) price in outlook scenarios.
• Specialties outlook reflects modest volume growth in key end markets led by semiconductors, oil and gas, flame retardants, and pharmaceuticals, with steady demand in automotive and petrochemical markets.

Risks and Challenges:

• A fire on June 9 caused a delay in the Talison CGP3 ramp.
• Supply chain related cost escalations due to the conflict in the Middle East impacted Specialties, though cost and productivity improvements offset these impacts.
• Fourth-quarter margins are expected to decrease sequentially due to the consumption of higher-cost spodumene inventory purchased in prior periods.
• The refining catalyst business earnings are now classified as equity income following the sale of a controlling stake in Ketjen's refining catalyst solutions business on March 2, 2026.

Management Commentary and Tone:

• Kent Masters, Chairman and CEO, stated the company delivered a "solid quarter" reflecting "disciplined execution across the enterprise."
• Management expressed confidence in the long-term outlook for the industry due to the 48% year-to-date increase in global lithium demand.
• The company will continue to prioritize high-return organic growth by leveraging its advantaged resource base, capital spending efficiency, and financial flexibility.

Other Key Points:

• The company sold a 51% stake in Ketjen's refining catalyst solutions business on March 2, 2026; earnings from this business are now classified as equity income.
• The company recorded a net loss of $52.7 million related to the divestiture of its Refining Solutions business and Eurecat joint venture in the first quarter of 2026.
• The company completed a $1.3 billion debt tender and redemption in the first quarter of 2026, resulting in a gain on early extinguishment of debt of $12.5 million.
• Restructuring charges and asset write-offs for the quarter were $8.0 million, including charges related to placing Kemerton Train 1 into care and maintenance.
• Year-to-date capital expenditures were $251 million, a decrease of $184 million versus the prior-year period.
• The adjusted effective tax rate for the quarter was 16.4% as reported, or 5.8% on an adjusted basis.