Albemarle Corporation

Albemarle Corporation produces lithium for batteries and other uses, and bromine-based and specialized chemicals. Energy Storage and Specialties are its two reportable businesses. Its remaining performance-catalyst business is reported with corporate and other activities. Albemarle trades on the New York Stock Exchange as ALB and reports on a December 31 year-end.

Earnings through September 2026

The previous year included a $181.1 million goodwill impairment in Refining Solutions. Preferred dividends reduce current income available to common shareholders to $255.1 million. Adjusted EBITDA excludes specified items, adds depreciation and amortization, interest and taxes, and includes Albemarle's proportionate share of Windfield income tax expense.

Energy Storage sales rose to $1.119 billion from $708.8 million, with adjusted EBITDA of $559.8 million versus $124.1 million. Lithium sales volume was 56 kilotons, versus an unusually high 69 kilotons a year earlier. Specialties sales rose to $388.6 million from $345.0 million, and adjusted EBITDA rose to $98.7 million from $75.5 million, helped by prices, volumes and productivity.

The prior group comparison includes sales from the Refining Solutions business that was deconsolidated in March. It was not treated as discontinued operations.

Expectations to follow

Albemarle raised its full-year Specialties adjusted EBITDA outlook to $350 million–$375 million from the $275 million–$325 million range issued in August. The annual sales range remains $1.4 billion–$1.6 billion. Annual capital spending is now expected to be $300 million–$350 million, versus about $500 million previously. The reduction combines project timing with capital-efficiency improvements.

Total-company annual sales and adjusted-EBITDA ranges under the lithium-price scenarios remain unchanged. At $20 per kilogram of lithium carbonate equivalent, the ranges are $5.7 billion–$6.0 billion of sales and $2.4 billion–$2.6 billion of adjusted EBITDA. Management says year-to-date performance has trended toward the higher end of that scenario. The ranges depend on the stated pricing conditions.

Annual lithium sales volume is still expected to be 225–235 kilotons. Energy Storage sales, adjusted EBITDA and margin are expected to fall sequentially in the fourth quarter because of lower lithium market prices and higher-cost feedstock, with sales volumes broadly steady.

Cash flow and financing

First-nine-month operating cash flow was $1.462 billion, versus $893.8 million. Capital spending was $250.8 million, versus $434.4 million, leaving $1.211 billion of current free cash flow. Investment dividends of $368.4 million, versus $89.0 million, are included in operating cash flow. Last year's operating cash flow included a $350 million customer advance. The company also sells some receivables, which changes when cash arrives.

Cash and equivalents were $1.846 billion at September 30, up from $1.618 billion at December 2025. Debt, including finance leases, fell to $1.881 billion from $3.194 billion. The company's 0.3-times contractual leverage ratio also includes its proportionate Windfield debt and cash, plus other adjustments.

A new $1.5 billion unsecured revolving facility agreed on October 29 runs through October 2031. That facility backs the commercial-paper program, sharing its capacity. The company reported no revolver or commercial-paper borrowings at September 30 and compliance with its debt covenants.

A $300 million interest-free loan begins five annual $60 million repayments on December 31, 2026. First-nine-month cash dividends were $143.2 million for common shares and $125.1 million for preferred shares.

Completed sales, production changes and leadership

The sale of a 51% controlling stake in Refining Solutions closed on March 2, 2026, bringing in $525.2 million of cash net of cash sold. Albemarle retains a 49% junior common interest and all of its performance-catalyst business. Its separate sale of the 50% Eurecat joint-venture interest closed on January 23 for $123.3 million. These proceeds and cash on hand helped fund the debt reduction completed in the first quarter.

Greenbushes' CGP3 processing plant restarted on August 1 after a fire and achieved 30 days of nameplate performance in September. Wodgina's production helped offset the disruption. Albemarle owns 49% of the Windfield venture holding Greenbushes.

Albemarle announced in February that Kemerton Train 1 would enter care and maintenance, following earlier actions at other conversion facilities. It expects another $60 million–$80 million of related charges across the remainder of 2026 and 2027.

Under the succession plan announced in September, Ragnar Udd is due to become chief executive on February 1, 2027, or an agreed earlier date. Current chair and chief executive J. Kent Masters, Jr. will then become executive chair.