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Jun 30, 2022
Albemarle Q2 2022 Earnings Report
Albemarle reported strong sales growth and raised guidance.
Key Takeaways
Albemarle Corporation announced strong second-quarter results with net sales of $1.48 billion, a 91% increase year-over-year, and net income of $406.8 million. The company raised its full-year 2022 guidance due to strong demand and pricing trends, particularly in Lithium and Bromine.
Net sales increased by 91% to $1.48 billion.
Net income was $406.8 million, or $3.46 per diluted share.
Adjusted EBITDA increased by 214% to $610 million.
Full-year 2022 net sales are expected to be $7.1 - $7.5 billion, and adjusted EBITDA is expected to be $3.2 - $3.5 billion.
Forward Guidance
Albemarle's outlook for 2022 has continued to improve based on expectations for ongoing demand strength and tightness in the markets it serves. Net sales guidance was revised upward primarily due to continued strength in pricing in its Lithium and Bromine businesses. Adjusted EBITDA guidance is also higher based on pricing expectations slightly offset by inflationary cost pressures, particularly for natural gas in Europe and raw materials. We now expect to be free cash flow positive in 2022.
Positive Outlook
- Net sales of $7.1 - $7.5 billion
- Adjusted EBITDA of $3.2 - $3.5 billion
- Adjusted EBITDA Margin 45% - 47%
- Adjusted Diluted EPS $19.25 - $22.25
- Net Cash from Operations $1.4 - $1.7 billion
Challenges Ahead
- Inflationary cost pressures, particularly for natural gas in Europe
- Inflationary cost pressures for raw materials
- Potential downside in the event of a material correction in lithium market pricing
Historical Earnings Impact
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Avg. Return Before/After Earnings
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