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Mar 31, 2025
Albemarle Q1 2025 Earnings Report
Albemarle reported Q1 2025 results with stable income despite revenue decline due to lower lithium pricing.
Key Takeaways
Albemarle delivered $1.08B in revenue and $41M in net income in Q1 2025. The company faced lower pricing in its Energy Storage segment but benefited from strong performance in Specialties and Ketjen. It maintained its FY2025 outlook despite macro headwinds and market volatility.
Revenue fell 21% YoY primarily due to lower lithium pricing in Energy Storage.
Net income increased to $41M, up significantly from $2M in Q1 2024.
Adjusted EBITDA reached $267M, with growth in Specialties and Ketjen segments.
Cash from operations surged to $545M, including a $350M customer prepayment.
Forward Guidance
Albemarle maintained its FY 2025 guidance despite pricing pressure in lithium markets and new tariffs, supported by cost controls and efficiency gains.
Positive Outlook
- Energy Storage volumes expected to grow up to 10% in 2025.
- Specialties forecast to see modest volume growth, especially in pharma and automotive.
- Ketjen expected to benefit from favorable product mix and turnaround execution.
- Capex planned to decrease over 50%, enhancing free cash flow.
- Global footprint and mineral exemptions may buffer tariff impacts.
Challenges Ahead
- Significant lithium price declines continue to pressure top-line results.
- Adjusted EBITDA guidance reduced compared to prior year levels.
- Lower sales volumes in Ketjen segment expected to persist in near term.
- Tariff impact on global trade remains uncertain.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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