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Sep 30
Albemarle Q3 2025 Earnings Report
Albemarle reported a smaller net loss and higher adjusted EBITDA in Q3 2025, supported by strong volume growth in Energy Storage and Ketjen despite lower lithium pricing.
Key Takeaways
Albemarle’s third quarter 2025 performance showed operational resilience with adjusted EBITDA growth and strategic cost improvements, despite headwinds from falling lithium prices and a goodwill impairment charge.
Revenue for Q3 2025 was $1.31 billion, down 4% due to lower lithium pricing.
The company reported a net loss of $160.7 million, primarily driven by a goodwill impairment in Ketjen.
Adjusted EBITDA rose 7% year-over-year to $226 million, supported by cost savings.
Energy Storage volumes rose 8%, helping offset pricing pressure in the segment.
Albemarle
Albemarle
Albemarle Revenue by Segment
Revenue by Segment
Energy Storage Revenue
CapyFin.comSpecialties Revenue
CapyFin.comKetjen Revenue
CapyFin.com Forward Guidance
Albemarle expects to finish 2025 toward the high end of the $9/kg lithium price scenario, with positive free cash flow, reduced capex, and strong Energy Storage volumes.
Positive Outlook
- Full-year capex lowered to ~$600M, boosting cash preservation.
- Expected positive free cash flow of $300M to $400M in FY25.
- Energy Storage volumes forecasted to grow 0–10% YoY.
- FY25 adjusted EBITDA guidance of $0.8B–$1.0B under $9/kg lithium pricing.
- Portfolio optimization underway with expected $660M from asset sales.
Challenges Ahead
- Energy Storage segment impacted by ~16% drop in lithium pricing.
- Ketjen adjusted EBITDA declined despite higher volumes.
- Net loss remains significant due to $181M goodwill impairment.
- Free cash flow still reliant on volume strength and cost discipline.
- Effective adjusted tax rate volatility (estimated up to 50.9%).
Revenue & Expenses
Visualization of income flow from segment revenue to net income