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Jun 30, 2023
Albemarle Q2 2023 Earnings Report
Albemarle's financial performance increased driven by higher prices and volumes in the Energy Storage business.
Key Takeaways
Albemarle Corporation reported a net sales increase of 60% for the second quarter of 2023, reaching $2.4 billion. Net income also increased by 60% to $650.0 million, or $5.52 per diluted share. Adjusted diluted EPS increased by 112% to $7.33, and adjusted EBITDA increased by 69% to $1.0 billion.
Net sales increased by 60% to $2.4 billion.
Net income increased by 60% to $650.0 million, or $5.52 per diluted share.
Adjusted diluted EPS increased by 112% to $7.33.
Adjusted EBITDA increased by 69% to $1.0 billion.
Albemarle
Albemarle
Albemarle Revenue by Segment
Revenue by Segment
Energy Storage Revenue
CapyFin.comSpecialties Revenue
CapyFin.comKetjen Revenue
CapyFin.com Forward Guidance
The company is updating its full-year 2023 outlook to reflect recent lithium market prices. Net sales are expected to increase 40% to 55% over the prior year. The year-over-year increase in Adjusted EBITDA is expected to be in the range of 10% to 25%.
Positive Outlook
- Net sales are expected to increase 40% to 55% over the prior year.
- Adjusted EBITDA is expected to increase 10% to 25% year-over-year.
- Energy Storage net sales for the full year are estimated to range between $7.9 billion and $8.8 billion.
- Energy Storage volumes are projected to be at the higher end of the previous range of 30% to 40% in 2023 compared to 2022.
- Adjusted EBITDA is anticipated to range between $3.5 billion and $3.9 billion.
Challenges Ahead
- Net cash from operations is expected to be in the range of $1.2 billion to $1.8 billion for the full year 2023, below previous outlook.
- Changes in working capital related to timing of Energy Storage shipments.
- Agreements in principle to resolve the previously disclosed matter with the U.S. Department of Justice and the Securities Exchange Commission.
- Adjusted EBITDA 2023 margins are expected to be down year-over-year due to continued weakness in certain end-use markets including consumer and industrial electronics and elastomers.
- Capital expenditures are expected to be between $1.9 billion and $2.1 billion for 2023, above previous outlook due to the retention of full ownership in lithium processing assets under the amended agreements with MinRes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income