ALB
MaterialsAlbemarle Corporation
Price Chart
Market Data
Financials
XBRL · SEC EDGAR2008–2025(18yr)| Metric | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.5B | $2.0B | $2.4B | $2.9B | $2.7B | $2.6B | $2.4B | $3.7B | $2.7B | $3.1B | $3.4B | $3.6B | $3.1B | $3.3B | $7.3B | $9.6B | $5.4B | $5.1B | -4.4% |
| Gross Profit | $607.7M | $483.9M | $745.9M | $977.1M | $910.0M | $861.4M | $770.8M | $1.2B | $970.6M | $1.1B | $1.2B | $1.3B | $994.9M | $998.0M | $3.1B | $1.2B | $62.5M | $668.7M | +969.3% |
| Gross Margin | 24.6% | 24.1% | 31.6% | 34.1% | 33.1% | 32.9% | 31.5% | 32.8% | 36.3% | 36.1% | 36.1% | 35.0% | 31.8% | 30.0% | 42.0% | 12.3% | 1.2% | 13.0% | +11.8pp |
| Operating Income | $220.9M | $186.3M | $414.8M | $587.8M | $406.2M | $582.9M | $271.3M | $442.4M | $574.6M | $587.7M | $911.5M | $666.1M | $505.8M | $798.4M | $2.5B | $251.9M | -$1.8B | -$367.1M | +79.3% |
| Operating Margin | 9.0% | 9.3% | 17.6% | 20.5% | 14.8% | 22.3% | 11.1% | 12.1% | 21.5% | 19.1% | 27.0% | 18.6% | 16.2% | 24.0% | 33.7% | 2.6% | -33.0% | -7.1% | +25.9pp |
| Net Income | $194.2M | $178.4M | $323.7M | $436.3M | $311.5M | $413.2M | $133.3M | $334.9M | $643.7M | $54.9M | $693.6M | $533.2M | $375.8M | $123.7M | $2.7B | $1.6B | -$1.2B | -$510.6M | +56.7% |
| Net Margin | 7.9% | 8.9% | 13.7% | 15.2% | 11.3% | 15.8% | 5.5% | 9.2% | 24.0% | 1.8% | 20.6% | 14.9% | 12.0% | 3.7% | 36.7% | 16.4% | -21.9% | -9.9% | +12.0pp |
| Free Cash Flow | $227.4M | $257.7M | $255.8M | $296.8M | $207.9M | $277.5M | $382.0M | $133.0M | $536.7M | -$13.7M | -$153.8M | -$132.4M | -$51.6M | -$609.4M | $646.2M | -$824.0M | -$983.7M | $692.5M | +170.4% |
| FCF Margin | 9.2% | 12.9% | 10.8% | 10.3% | 7.6% | 10.6% | 15.6% | 3.6% | 20.0% | -0.4% | -4.6% | -3.7% | -1.6% | -18.3% | 8.8% | -8.6% | -18.3% | 13.5% | +31.8pp |
| EPS (Diluted) | $2.09 | $1.94 | $3.51 | $4.77 | $3.47 | $4.90 | $1.69 | $3.00 | $5.68 | $0.49 | $6.34 | $5.02 | $3.52 | $1.06 | $22.84 | $13.36 | $-11.20 | $-5.76 | +48.6% |
1. THE BIG PICTURE
Albemarle is a commodity giant caught in a "scissors effect": it is aggressively scaling production for the global energy transition while the price of its primary product has cratered by as much as 95% (Risks). Despite a 16% jump in quarterly revenue, Albemarle Corporation is deeply unprofitable, losing $414 million in the final quarter of 2025 as it grapples with $3.2 billion in debt and the costly mothballing of major expansion projects like the Kemerton plant (8-K, Risks).
2. WHERE THE RISKS HIT HARDEST
Albemarle’s "Resource Reliability" is threatened by "Capital Expenditure Complexity" because the $1.0 billion charge for stopping construction at the Kemerton facility proves that even world-class assets can become financial liabilities when market prices collapse (Business, Risks). Furthermore, Albemarle Corporation's "Customer Centricity" is undermined by "China-Specific Exposure," where 39% of net sales are vulnerable to U.S.-China trade disputes and tariffs that could abruptly sever ties with the battery manufacturers Albemarle is built to serve (Risks).
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a stark disconnect between volume growth and profitability. While Energy Storage volumes grew 17% in the most recent quarter, Albemarle’s gross margin of 7.2% is the lowest in its peer group, trailing leaders like PPG (41.6%) by a wide margin (8-K, XBRL). This suggests Albemarle is moving significantly more product but retaining very little of the value. The 11% short interest reflects market skepticism that management's $450 million in cost savings can offset the structural drag of a -24.8% operating margin (8-K, Peer Benchmarking).
4. IS IT WORTH IT AT THIS PRICE?
At 19.3x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Albemarle trades at a premium to the peer median of 18.2x, a valuation that is difficult to reconcile with its -4.4% revenue growth and negative net margins (Peer Benchmarking). At this multiple, the market is pricing in ~7.4% long-term growth (CAPM analysis). This appears aggressive; if growth slows to a base case of 5.0%, the justified multiple falls to 13.1x, representing roughly 32% downside from current levels (CAPM analysis). Investors are currently paying a premium for a company with negative earnings, while peers like PPG offer a 10.5% net margin at a lower 12.3x multiple.
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if lithium prices stabilize and the 6% pricing improvement seen in the Energy Storage segment in Q4 2025 sustains a multi-quarter upward trend (8-K).
- Cautious if net debt, currently at $2.1 billion, continues to rise relative to the $0.4 billion in annual free cash flow, or if further inventory valuation charges are triggered by continued price volatility (Risks, Peer Benchmarking).
6. BOTTOM LINE
Structural Advantage: Proprietary access to low-cost lithium brine resources in Chile and Nevada, supported by specialized process chemistry for reactive products. Bottom Line: Albemarle is a high-risk bet on a lithium price recovery that current valuations already assume will happen.
1. Top 5 Material Risks
- Lithium Price Volatility: Lithium prices decreased by approximately 85% to 95% from their January 2023 peak through 2025, directly impacting revenues and profitability. Continued volatility or further declines may lead to additional inventory valuation charges.
- International Operations: Approximately 83% of net sales are to foreign countries, subjecting Albemarle Corporation to risks including currency fluctuations, trade sanctions, and political instability.
- China-Specific Exposure: In 2025, 39% of total net sales were shipped to or within China. Operations there face risks from U.S.-China trade disputes, tariffs on electric vehicles and lithium-ion batteries, and potential government-mandated manufacturing curtailments.
- Indebtedness and Liquidity: As of December 31, 2025, aggregate long-term debt was $3.2 billion. High debt levels reduce cash flow available for capital expenditures and growth, and failure to comply with restrictive covenants could trigger an event of default.
- Capital Expenditure Complexity: Development projects, such as the Kemerton plant, are inherently risky and may require more capital than anticipated. Albemarle Corporation has already incurred $1.0 billion in charges in 2024 related to stopping construction on Kemerton Trains 3 and 4 and placing Train 2 into care and maintenance.
2. Company-Specific Risks
- Brine Extraction Limits: Operations in the Salar de Atacama are subject to an early warning plan; if thresholds for brine and groundwater levels are exceeded, Albemarle Corporation may be required to significantly reduce or halt pumping rates, causing a significant decrease in lithium production.
- Refining Solutions Divestiture: Albemarle Corporation is divesting its controlling interest in the Refining Solutions business, which is expected to close in the first quarter of 2026. This transition introduces risks related to the retention of liabilities and potential indemnity claims.
- Product Quality and Recalls: Because refinery catalysts are sold under agreements containing limited performance and life cycle guarantees, Albemarle Corporation may be liable for damages or costs associated with product recalls, particularly in the automotive industry.
- Pension Funding: Albemarle Corporation anticipates approximately $6 million of required cash contributions during 2026 for its defined benefit pension plans, with future amounts subject to variation based on asset returns and interest rates.
3. Regulatory/Legal Risks
- Anti-Corruption Compliance: Albemarle Corporation previously paid $218.5 million in aggregate fines, disgorgement, and prejudgment interest to resolve self-reported potential violations of the Foreign Corrupt Practices Act (FCPA).
- Environmental Regulation: Albemarle Corporation is subject to REACH in the E.U. and the Toxic Substances Control Act (TSCA) in the U.S., which require comprehensive reporting and chemical safety assessments. These regulations can lead to restrictions or bans on products, increasing compliance costs and potentially reducing demand.
- Climate Change Legislation: Operations in regions including the E.U., China, and Saudi Arabia are subject to measures linked to the 2015 Paris Climate Agreement. Future carbon pricing or emissions trading schemes could disproportionately affect Albemarle Corporation compared to competitors.
- Tax Legislation: The One Big Beautiful Bill Act (OBBBA) signed in July 2025 includes changes to international tax rules and the phase-out of certain energy tax credits, which could materially impact Albemarle Corporation's effective tax rate and cash tax liabilities.
4. Financial Impact Map
Lithium Price Volatility → Revenues and Profitability → 85% to 95% price decline from January 2023 peak through 2025. International Operations → Net Sales → 83% of net sales are generated outside the U.S. China-Specific Exposure → Net Sales → 39% of total net sales shipped to or within China in 2025. Indebtedness → Cash Flow from Operations → $3.2 billion in aggregate long-term debt as of December 31, 2025. Capital Expenditure/Asset Impairment → Goodwill and Long-Lived Assets → $181.1 million goodwill impairment and $245.6 million long-lived asset impairment recorded in 2025 for the Refining Solutions business.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 8-K | Feb 2026 | — |
| 10-K | Feb 2026 | Dec 2025 |
| 10-Q | Nov 2025 | Sep 2025 |
| 14A | Mar 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Albemarle Initiates Environmental Review for $3.1B Direct Lithium Extraction Project in Chile
- ▸Initiated environmental review for first Direct Lithium Extraction (DLE) project in Chile
- ▸Project requires estimated $3.1 billion investment through 2045
- ▸DLE technology aims to nearly double lithium recovery rates
- ▸Brine extraction target reduced from 442 to 142 liters per second
- ▸Truist reiterated Buy rating and $210 price target on March 6
Albemarle Increases Debt Tender Offer to $650M, Files New Universal Shelf Registration
- ▸Increased debt tender offer cap to $650M
- ▸Retired $254.3M of 2052 notes and $149M of 2044 notes
- ▸Retired $62.4M of 2029 notes and $184.3M of 2032 notes
- ▸Paid $50 per $1,000 early tender premium on repurchased notes
- ▸Filed new universal shelf registration for future debt or equity issuance
Albemarle reports $3.2B liquidity and $692M free cash flow for full-year 2025
- ▸FY2025 free cash flow $692M driven by productivity and lower capital spending
- ▸Year-end 2025 liquidity $3.2B, including $1.6B in cash and equivalents
- ▸FY2025 operating cash flow $1.3B, up 86% year-over-year
- ▸Divestments of Ketjen and Eurecat stake generated $670M in pre-tax proceeds
- ▸Salar yield improvement project in Chile reached 50% operating rate
Albemarle prices $650M cash tender offer for senior notes across four series
- ▸Tender offer cap increased to $650M aggregate principal amount
- ▸Accepting full tender of 5.650% 2052, 5.450% 2044, and 3.450% 2029 notes
- ▸Accepting $184.3M of 5.050% 2032 notes on a prorated basis
- ▸Early tender premium of $50 per $1,000 principal amount included
- ▸Early settlement date scheduled for March 18, 2026
Albemarle prices $650M cash tender offer for senior notes across four series
- ▸Tender offer cap increased to $650M aggregate principal amount
- ▸Accepting full $254.3M of 5.650% notes due 2052
- ▸Accepting full $149.0M of 5.450% notes due 2044
- ▸Accepting full $62.4M of 3.450% notes due 2029
- ▸Accepting $184.3M of 5.050% notes due 2032 on prorated basis
Albemarle increases debt tender offer cap to $650 million from $500 million
- ▸Offer cap increased to $650M aggregate principal amount of notes
- ▸Original offer cap was $500M aggregate purchase price
- ▸Early tender results measured as of March 13, 2026
- ▸Price determination time set for 10:00 a.m. ET on March 16, 2026
- ▸Notes include series issued by subsidiary Albemarle Wodgina Pty Ltd
Albemarle increases debt tender offer cap to $650 million from $500 million
- ▸Offer cap increased to $650M aggregate principal amount of notes
- ▸Original offer cap was $500M aggregate purchase price
- ▸Early tender results measured as of March 13, 2026
- ▸Price determination time set for 10:00 a.m. ET on March 16, 2026
- ▸Notes include series issued by subsidiary Albemarle Wodgina Pty Ltd
Albemarle Q4 Revenue $1.43B Beats Estimates, Adjusted Loss $0.53 Per Share
- ▸Q4 revenue $1.43B, +15.9% YoY, beating $1.35B estimate
- ▸Adjusted loss of $0.53 per share, wider than $0.40 estimate
- ▸Energy Storage sales $759.1M, +23.1% YoY, beating $717M estimate
- ▸FY25 operating cash flow $1.3B, up 85% YoY
- ▸Ketjen unit sale expected to close in Q1 2026
Albemarle Launches $500M Debt Tender Offer and Redeems 2027 Senior Notes
- ▸Launched $500M debt tender offers
- ▸Full redemption of 4.650% Senior Notes due 2027
- ▸Appointed Michelle T. Collins and Mark R. Widmar to Board of Directors
- ▸Reaffirmed quarterly dividend of $0.405 per share
- ▸Progressing toward sale of controlling interest in Ketjen business
Albemarle Q4 sales $1.4B +16%, reports $414M net loss on asset write-downs
- ▸Q4 net sales $1.4B, up 16% YoY driven by volume growth
- ▸Quarterly net loss $414M due to tax items and Ketjen asset write-downs
- ▸FY2025 operating cash flow $1.3B; free cash flow $692M
- ▸Achieved $450M in cost and productivity improvements
- ▸FY2026 capital expenditure guidance $550M–$600M