Loading...
•
Jun 30
Albemarle Q2 2025 Earnings Report
Albemarle reported its second quarter 2025 results, with net sales of $1.3 billion and a net income of $23 million, showing significant recovery from a prior-year loss.
Key Takeaways
Albemarle delivered strong second-quarter results, with net sales of $1.3 billion and a net income of $22.9 million, a substantial improvement from a net loss in the prior-year quarter. The company achieved positive free cash flow for the first half of 2025 and expects to maintain this for the full year, driven by cost savings and operational excellence. Energy Storage volumes increased by 15%, while Specialties saw a 6% volume increase.
Net sales for Q2 2025 were $1.3 billion, a 7% decrease year-over-year, primarily due to lower lithium pricing, offset by volume growth in Energy Storage and Specialties.
Net income attributable to Albemarle Corporation was $22.9 million, a significant increase from a net loss of $188.2 million in Q2 2024, largely due to the absence of prior-year capital project asset write-offs.
Adjusted EBITDA was $336.5 million, down 12.9% year-over-year, but up sequentially due to improved fixed cost absorption, ongoing cost savings, and Energy Storage product mix.
The company now expects to achieve positive free cash flow for the full year 2025, driven by cash management actions and reduced capital expenditures, which are projected to be between $650 million and $700 million.
Albemarle
Albemarle
Albemarle Revenue by Segment
Revenue by Segment
Energy Storage Revenue
CapyFin.comSpecialties Revenue
CapyFin.comKetjen Revenue
CapyFin.com Forward Guidance
Albemarle is maintaining its full-year 2025 outlook considerations, assuming current lithium market pricing persists. The company expects to achieve positive free cash flow for the full year and is reducing its capital expenditure outlook.
Positive Outlook
- Maintaining prior full-year outlook considerations for Energy Storage, Ketjen, and Specialties.
- Expected positive free cash flow for the full year 2025 due to cash management actions.
- Reduced full-year 2025 capital expenditure outlook to between $650 million and $700 million.
- Successful execution of cost and productivity improvements, achieving 100% run-rate against the high end of the $400 million target.
- Strong first-half demand from Energy Storage contract customers and operational excellence, including Energy Storage project ramps.
Challenges Ahead
- Outlook assumes current lithium market pricing persists, which could be a risk if prices decline.
- Specialties outlook partially offset by weakness in building and construction.
- Ketjen outlook assumes lower clean fuel technologies (CFT) volume due to order timing.
- Adjusted effective tax rate is highly dependent on lithium market prices and geographic income mix, leading to a wide range of (40)% to 25%.
- The company does not provide a reconciliation of forward-looking non-GAAP financial measures to GAAP, citing unreasonable effort for estimating non-recurring or unusual items.
Revenue & Expenses
Visualization of income flow from segment revenue to net income