EX-99.1 2 a2q26earningsreleaseex991.htm EX-99.1 Document Exhibit 99.1 Contact: invest@albemarle.com 1.980.308.6194 Albemarle Reports Second Quarter 2026 Results CHARLOTTE, N.C. – August 5, 2026 - 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. 1 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 - $4.4 billion (a)    Price represents blend of relevant market pricing including spot and regional indices for the periods referenced. (b)    The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. See “Additional Information Regarding Non-GAAP Measures” for more information. 2 Energy Storage Market Price Scenarios Energy Storage FY 2026E Observed market price case (a) FY 2025 avg. Q1 2026 avg. 2021-2025 avg. Average lithium market price ($/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. 3 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. 4 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  5 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 liabiliti