Fourth Quarter and Full Year 2025 Results and Highlights(Unless otherwise stated, all percentage changes represent year-over-year comparisons)
Fourth quarter net sales of $1.4 billion, up 16%; volume up 12%, including gains in all segments led by Energy Storage (up 17%) and Ketjen (up 13%).
Fourth quarter net loss of ($414) million, or ($3.87) per diluted share, includes tax-related items and the write-down of assets in relation to the expected Ketjen transaction value; adjusted diluted loss per share of ($0.53)(a).
Fourth quarter adjusted EBITDA(a) of $269 million, up 7%, led by Energy Storage (+25%) and Ketjen (+39%).
Full year cash from operations of $1.3 billion, representing more than 100% operating cash flow conversion(b), driven primarily by cost and productivity improvements, working capital management, and a customer pre-payment received in January 2025.
Free cash flow of $692 million(a) reflects strong operating cash flow conversion and significantly lower capital expenditures of $590 million (down 65% year-over-year).
Achieved approximately $450 million of cost and productivity improvements, exceeding the initial target of $300 to $400 million.
Closed sale of 50% stake in the Eurecat joint venture for $123 million cash in January 2026; on track to close sale of controlling stake in Ketjen in Q1 2026.
Introducing full-year 2026 outlook considerations, including ranges based on updated lithium market price scenarios:
New scenarios highlight improved lithium market conditions and operational performance.
Full-year 2026 capital expenditures expected to be approximately flat year-over-year, reflecting consistent sustaining capital, Ketjen divestiture and targeted growth capital focused on productivity gains and resource development.
Meaningful free cash flow generation assuming recent higher lithium prices.
(a)
See Non-GAAP Reconciliations for further details.
(b)
Defined as Operating Cash Flow divided by Adj. EBITDA, which is a non-GAAP measure. See Non-GAAP Reconciliations for further details.
"Our results for the fourth quarter and full year 2025 are a testament to our team's focus on execution amid dynamic market conditions. Albemarle achieved year-over-year sales growth of more than 15% in the fourth quarter, as well as strong full-year cash flow generation and significant cost and productivity improvements," said Kent Masters, Chairman and CEO. "The steps we have taken to optimize our asset portfolio, reduce costs and strengthen our financial flexibility have improved our competitive position. Even as market conditions improve, we continue to drive cost reduction and productivity actions to enable long-term growth, powered by our world-class resources."
Fourth Quarter 2025 Results
In millions, except per share amounts
Q4 2025
Q4 2024
$ Change
% Change(c)
Net sales
$ 1,428.0
$ 1,231.7
$ 196.3
15.9 %
Net (loss) income attributable to Albemarle Corporation
$ (414.2)
$ 75.3
$ (489.5)
NM
Adjusted EBITDA(a)
$ 268.7
$ 250.7
$ 18.0
7.2 %
Diluted (loss) earnings per share attributable to common shareholders
$ (3.87)
$ 0.29
$ (4.16)
NM
Non-operating pension and OPEB items(a)
0.15
(0.07)
Non-recurring and other unusual items(a)
3.19
(1.31)
Adjusted diluted loss per share attributable to common shareholders(a)(b)
$ (0.53)
$ (1.09)
$ 0.56
51.4 %
(a)
See Non-GAAP Reconciliations for further details.
(b)
Totals may not add due to rounding.
(c)
Certain percentage changes are considered not meaningful ("NM")
Net sales for the fourth quarter of 2025 were $1.4 billion compared to $1.2 billion for the prior-year quarter, an increase of 16%, driven primarily by higher volumes in Energy Storage (+17%) and Ketjen (+13%) and higher pricing in Energy Storage. Net loss attributable to Albemarle of $414 million increased year-over-year by $490 million primarily due to tax-related items and the write-down of assets in relation to the expected Ketjen transaction value. Excluding these one-time items, adjusted net loss improved year-over-year. Adjusted EBITDA of $269 million increased by $18 million from the prior-year quarter primarily due to higher pricing in Energy Storage and higher volumes in Ketjen.
The effective income tax rate for the fourth quarter of 2025 was (55.2)%, compared to 13.8% in the same period of 2024. On an adjusted basis, the effective income tax rates were 561.1% and 446.9% for the fourth quarters of 2025 and 2024, respectively, with the increase primarily due to recording a valuation allowance on the entirety of U.S. deferred tax assets in the fourth quarter of 2025, as well as changes in geographic income mix, including the impact of previously recorded valuation allowances in Australia and China.
Energy Storage Results
In millions
Q4 2025
Q4 2024
$ Change
% Change
Net Sales
$ 759.1
$ 616.8
$ 142.2
23.1 %
Adjusted EBITDA
$ 167.1
$ 133.7
$ 33.4
25.0 %
Energy Storage net sales for the fourth quarter of 2025 were $759 million, an increase of $142 million, or 23%, primarily due to higher volumes (+17%) and pricing (+6%). Adjusted EBITDA of $167 million increased $33 million, or 25%, primarily due to higher pricing and cost and productivity improvements.
Energy Storage adjusted EBITDA for the full year 2025 was $697 million, down 8% versus the year prior, as higher sales volumes and cost and productivity improvements mostly offset lower lithium market pricing.
Specialties Results
In millions
Q4 2025
Q4 2024
$ Change
% Change
Net Sales
$ 348.9
$ 332.9
$ 16.0
4.8 %
Adjusted EBITDA
$ 68.6
$ 72.9
$ (4.3)
(5.9) %
Specialties net sales for the fourth quarter of 2025 were $349 million, an increase of $16 million, or 5%, primarily due to higher volumes (+2%) and pricing (+1%). Adjusted EBITDA of $69 million decreased $4 million versus the year-ago quarter primarily due to margin compression in lithium specialties, down from 2024 highs.
Specialties adjusted EBITDA for the full year 2025 was $276 million, increasing 21% year-over-year, as higher volumes and cost and productivity improvements more than offset lower pricing.
Ketjen Results
In millions
Q4 2025
Q4 2024
$ Change
% Change
Net Sales
$ 320.1
$ 281.9
$ 38.1
13.5 %
Adjusted EBITDA
$ 49.7
$ 35.8
$ 13.9
38.8 %
Ketjen net sales for the fourth quarter of 2025 were $320 million, up 14% compared to the prior-year quarter primarily due to higher fluidized catalytic cracking (FCC) volumes and timing of Clean Fuels technology (CFT) sales. Adjusted EBITDA of $50 million increased $14 million, driven by favorable product mix and lower input costs.
Ketjen adjusted EBITDA for the full year 2025 was $150 million, an increase of 15%, primarily due to increased FCC volumes.
2026 Outlook Considerations
Total Corporate Outlook ConsiderationsThe table below reflects expected outcomes for the total company based on recently observed lithium market price scenarios. Outlook ranges for each scenario are based on variation in sales volume and product mix. Energy Storage production volumes are expected to increase year-over-year. Sales volumes are expected to be approximately flat following inventory drawdowns that occurred in 2025. All three scenarios assume flat market pricing flowing through Energy Storage's current contract book which includes approximately 40% of salts volume on long-term agreements. Scenarios also assume that spodumene pricing averages 10% of the lithium carbonate equivalent (LCE) price, while other costs are assumed to be constant.
Total Corporate FY 2026E
Including Energy Storage Scenarios
Observed market price case(a)
FY 2025 avg.
Jan. 2026 avg.
2021-2025 avg.
Average lithium market price ($/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 - $4.4 billion
(a)
Price represents blend of relevant market pricing including spot and regional indices for the periods referenced.
(b)
The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures
calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort.
See "Additional information regarding Non-GAAP Measures" for more information.
Energy Storage Market Price Scenarios
Energy Storage FY 2026E
Observed market price case(a)
FY 2025 avg.
Jan. 2026 avg.
2021-2025 avg.
Average lithium market price ($/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 ConsiderationsSpecialties outlook reflects modest volume growth in key end markets led by semiconductor and pharmaceutical partially offset by expected softness in automotive, building and construction and oil and gas.
Net sales are expected to be flat to down and adjusted EBITDA is expected to be lower in 2026 compared to 2025 due, in part, to lithium specialties pricing, which has adjusted lower from the previous peak, and reduced demand for clear brine fluids due to weakness in oil and gas markets. Production volume in 2026 is expected to be impacted by a major flooding event that occurred at our Jordan Bromine Company (JBC) joint venture in January 2026. JBC has since returned to full operating rates.
Segment FY 2026E
Specialties net sales
$1.2 - $1.4 billion
Specialties adjusted EBITDA
$170 - $230 million
Other Corporate Outlook Considerations
Following the sale of a controlling stake in Ketjen, which is expected to close in the first quarter of 2026, the refining catalyst business earnings will be classified as equity income and included in Corporate, as will the results of the retained Performance Catalyst Solutions (PCS) business. The EBITDA and equity income contributions from these are expected to be immaterial post transaction.
Albemarle expects its 2026 capital expenditures to be roughly flat compared to 2025, in the range of $550 million to $600 million.
Other Corporate FY 2026E
Capital expenditures
$550 - $600 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
$150 - $170 million
Weighted-average common shares outstanding (diluted)
~118 million
(a)
Adjusted effective tax rate dependent on lithium market prices and geographic income mix
Cash Flow and Capital DeploymentCash from operations of $1.3 billion for the year ended December 31, 2025 increased $594 million compared to the prior-year period due to cost and productivity improvements, cash management actions, including inventory reductions, and a customer prepayment received in January. Capital expenditures of $590 million were in-line with the company's most recent outlook and decreased by $1.1 billion versus the prior-year period, reflecting the impact of decisions that stopped or slowed spending and the completion of capacity expansions in Energy Storage and Specialties.
Balance Sheet and LiquidityAs of December 31, 2025, Albemarle had estimated liquidity of approximately $3.2 billion, including $1.6 billion of cash and equivalents, $1.5 billion available under its revolver and $105 million available on other credit lines. Total debt was $3.2 billion, representing a net debt to adjusted EBITDA ratio (as defined in our credit agreement) of approximately 2.0 times.
Earnings Call
Date:
Thurs., Feb. 12, 2026
Time:
8:00 AM Eastern time
Dial-in (U.S.):
+1 800-590-8290
Dial-in (International):
+1 240-690-8800
Passcode:
ALBQ4
The company's earnings presentation and supporting material are available on Albemarle's website at https://investors.albemarle.com.
About AlbemarleAlbemarle Corporation (NYSE:ALB) leads the world 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 allow 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, Securities and Exchange Commission ("SEC") filings and other information regarding the company, its businesses and the markets it serves.
Forward-Looking StatementsThis 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 considerations; planned sale of a controlling stake in Ketjen and the amount of the proceeds for the controlling stake in Ketjen and our interest in the Eurecat JV; timing for completion of both transactions, including obtaining regulatory approvals and meeting other closing conditions; expectations regarding use of proceeds from the both transactions; expected capital expenditure amounts and the corresponding impact on cash flow; expected impact of tariffs and other trade restrictions; plans and expectations regarding other projects and activities, cost reductions and 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; financial and operating performance of customers; timing and magnitude of customer orders; fluctuations in lithium and spodumene market prices; production volume shortfalls; increased competition; changes in product 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; our ability to retain key personnel and attract new skilled personnel; changes in inflation or interest rates; volatility in the debt and equity markets; acquisition and divestiture transactions; timing and success of projects; 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.
Albemarle Corporation and SubsidiariesConsolidated Statements of (Loss) Income(In Thousands Except Per Share Amounts) (Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Net sales
$ 1,428,031
$ 1,231,713
$ 5,142,733
$ 5,377,526
Cost of goods sold
1,230,097
1,093,500
4,474,014
5,314,987
Gross profit
197,934
138,213
668,719
62,539
Selling, general and administrative expenses
155,500
135,996
550,036
618,048
Goodwill impairment charges
—
—
181,070
—
Long-lived asset impairment charges
245,600
—
245,600
—
Restructuring charges and asset write-offs
2,039
(22,206)
7,699
1,134,316
Research and development expenses
12,181
20,021
51,398
86,720
Operating (loss) profit
(217,386)
4,402
(367,084)
(1,776,545)
Interest and financing expenses
(57,776)
(44,703)
(207,651)
(165,619)
Other (expenses) income, net
(9,828)
117,028
22,662
178,339
(Loss) income before income taxes and equity in net income of unconsolidated investments
(284,990)
76,727
(552,073)
(1,763,825)
Income tax expense
157,330
10,613
156,881
87,085
(Loss) income before equity in net income of unconsolidated investments
(442,320)
66,114
(708,954)
(1,850,910)
Equity in net income of unconsolidated investments (net of tax)
40,560
18,997
243,744
715,433
Net (loss) income
(401,760)
85,111
(465,210)
(1,135,477)
Net income attributable to noncontrolling interests
(12,419)
(9,818)
(45,418)
(43,972)
Net (loss) income attributable to Albemarle Corporation
(414,179)
75,293
(510,628)
(1,179,449)
Mandatory convertible ...
