Albemarle Reports Third Quarter 2026 Results
CHARLOTTE, N.C. – November 4, 2026 - Albemarle Corporation (NYSE: ALB), a global leader in providing essential elements for mobility, energy, connectivity and health, today announced its results for the third quarter ended September 30, 2026.
(Unless otherwise stated, all percentage changes represent year-over-year comparisons and do not exclude the prior-period results of Ketjen’s refining catalyst solutions business in which the company sold a 51% stake on March 2, 2026)
• Net sales of $1.6 billion, up 19% due to higher pricing in Energy Storage (+68%) and higher pricing and volumes in Specialties (price +10%, volume +3%).
• Net income of $297 million, or $2.15 per diluted share attributable to common shareholders; Adjusted net income (a) of $354 million, or $2.58 per diluted share attributable to common shareholders which primarily excludes restructuring and other related charges.
• Adjusted EBITDA (a) of $646 million; up 186% due primarily to higher pricing in Energy Storage, increased pricing and volumes in Specialties and cost and productivity improvements.
• Cash from operating activities of $406 million and free cash flow of $325 million (a) . Operating cash flow conversion of 63% (a) , supported by a cash dividend from the Talison joint venture which partly offset timing of working capital changes.
• Delivered more than $150 million in year-to-date run -rate cost and productivity improvements, achieving the high end of our full-year target .
• Talison’s Chemical Grade Plant 3 (CGP3) achieved 30-days of nameplate performance in September.
◦ Specialties adjusted EBITDA of $350-$375 million (up from $275-$325 million), in part driven by ongoing cost and productivity improvements.
◦ Reducing full-year capital expenditure forecast to $300-$350 million (down from approximately $500 million), reflecting continued benefits from our focused capital efficiency improvements, as well as resequencing of some early-stage projects.
“Albemarle delivered another solid quarter, reflecting disciplined execution across the enterprise,” said Kent Masters, Chairman and CEO. “In Specialties, improved pricing and sustained progress on cost and productivity initiatives support an additional increased outlook for the year. Global lithium demand is up 48% year-to-date though August, driven by both electric vehicles and energy storage, reinforcing our confidence in the long-term outlook for the industry. We will continue to prioritize high-return organic growth by leveraging our advantaged resource base, capital spending efficiency, and financial flexibility.” 1 Third Quarter 2026 Results
Net sales for the third quarter of 2026 were $1.6 billion, up 19%, driven primarily by higher prices in both Energy Storage and Specialties and volume growth in Specialties. Adjusted EBITDA of $646 million increased by $420 million from the prior-year quarter, primarily due to higher net sales and ongoing cost and productivity improvements.
Net income attributable to Albemarle of $297 million increased year over year by $457 million. The effective income tax rate for the third quarter of 2026 was 16.4% or 5.8% on an adjusted basis due to geographic income mix.
(a) Includes aggregated salts and spodumene sales on a lithium carbonate equivalent (LCE) basis.
Energy Storage net sales for the third quarter of 2026 were $1.1 billion, an increase of $410 million, or 58%, due to higher pricing. Adjusted EBITDA of $560 million increased $436 million, or 351%, primarily due to improved lithium pricing and partially offset by higher price spodumene inventory processed in the quarter and increased Chilean commissions. Sales volume declined year-over- year primarily due to timing events in the prior-year period, including inventory destocking and higher-than-usual spodumene shipments, which led to the third quarter of 2025 being the segment’s record highest volume quarter on a lithium carbonate equivalent (LCE) basis.
Specialties net sales for the third quarter of 2026 were $389 million, an increase of $44 million, or 13%, primarily due to higher pricing (+10%) and volumes (+3%). Adjusted EBITDA of $99 million increased $23 million, or 31%, primarily due to higher volumes and favorable pricing in bromine and derivatives, along with continued productivity improvements and proactive management of cost escalations driven by the conflict in the Middle East. Additionally, the Jordan Bromine Company (JBC) joint venture achieved record quarterly production.
The table below reflects expected outcomes for the total company based on recently observed lithium market price scenarios. Outlook ranges for each scenario are based on variation in sales volume and product mix. Energy Storage production volumes are expected to increase year over year. Sales volumes are expected to be in the range of 225 to 235 kilotons lithium carbonate equivalent, as increased Wodgina volumes partially offset a 2 delay in the Talison CGP3 ramp due to a fire that occurred on June 9. All three scenarios assume flat market pricing flowing through Energy Storage’s current contract book which includes approximately 40% of salts volume (or one-third of total volumes) on long-term agreements. Scenarios also assume that spodumene pricing averages 10% of the lithium carbonate equivalent (LCE) price, while other costs are assumed to be constant.
(a) Price represents blend of relevant market pricing including spot and regional indices for the periods referenced.
(b) The Company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. See “Additional Information Regarding Non-GAAP Measures” for more information.
Fourth quarter 2026 net sales and adjusted EBITDA are expected to decrease sequentially due to lower market pricing with steady sales volumes. Fourth- quarter margins are expected to decrease sequentially due to consumption of higher-cost spodumene inventory purchased in prior periods.
Energy Storage FY 2026E Observed market FY 2025 avg. Q1 2026 avg. 2021-2025 avg. price case(a) Average lithium market price ~$10 ~$20 ~$30 ($/kg LCE)(a) Net sales $2.5 - $2.6 $4.0 - $4.2 $5.9 - $6.1 billion billion billion Adjusted EBITDA $0.7 - $0.8 $2.1 - $2.3 $3.9 - $4.1 billion billion billion Equity in net income of $0.2 - $0.3 $0.6 - $0.7 $1.0 - $1.1 unconsolidated billion billion billion investments (net of tax)(b)
(a) Price represents blend of relevant market pricing including spot and regional indices for the periods referenced.
Specialties adjusted EBITDA outlook is improved as strong year-to-date performance, primarily driven by cost and productivity improvements, more than offset supply chain related cost escalation due to the conflict in the Middle East. Our outlook continues to reflect modest volume growth in key end markets led by semiconductors, oil and gas, fl ame retardants and pharmaceuticals and steady year-to-date demand in automotive and petrochemical markets. Fourth quarter outlook assumes steady demand in the bromine market and the impact of the ongoing situation in the Middle East.
Specialties FY 2026E Specialties net sales $1.4 - $1.6 billion Specialties adjusted EBITDA $350 - $375 million
Albemarle now expects its full-year 2026 capital expenditures to b e $300-$350 million, reflecting continued benefits from our focused capital efficiency improvements as well as resequencing of some earl y-stage project spend.
Following the sale of a controlling stake in Ketjen’s refining catalyst solutions business, announced on March 2, 2026, the refining catalyst business earnings are now classified as equity income and included in Corporate, as are the results of the retained Performance Catalyst Solutions (PCS) business. The adjusted EBITDA and equity income contributions from these businesses are expected to be immaterial post transaction. 3
Other Corporate FY 2026E Capital expenditures $300 - $350 million Depreciation and amortization $660 - $680 million Adjusted effective tax rate(a) (50)% - 30% Corporate adjusted EBITDA (incl. FX, Ketjen equity ($20) - $20 million income & PCS) Interest and financing expenses $120 - $140 million Weighted-average common shares outstanding ~136 million (diluted)(b)
(a) Adjusted effective tax rate dependent on lithium market prices and geographic income mix
(b) Diluted weighted-average common shares outstanding amount assumes the conversion of preferred stock and the net income attributable to common shareholders will not be reduced by mandatory convertible preferred stock dividends. If the reduction of mandatory convertible preferred stock dividends results in a more dilutive earnings per share, the diluted weighted-average common shares outstanding will not assume conversion of the preferred stock.
Cash from operations of $1.5 billion in the first nine months of 2026 increased $568 million compared to the prior-year period. Year-to-date operating cash flow conversion is 67% as of September 30, 2026. Capital expenditures of $251 million in the first nine months of 2026 decreased by $184 million versus the prior-year period. As of September 30, 2026, Albemarle has delivered free cash flow of $1.2 billion year-to-date.
As of September 30, 2026, Albemarle had estimated liquidity of approximately $3.4 billion, including $1.8 billion of cash and cash equivalents, $1.5 billion available under our revolver and $79 million available under other credit lines. Total debt was $1.9 billion, representing a net debt to adjusted EBITDA ratio (as defined in our credit agreement) of approximately 0.3 (a) .
The company’s earnings presentation and supporting material are available on Albemarle’s website at https://investors.albemarle.com.
Albemarle Corporation (NYSE: ALB) is a world leader in transforming essential resources into critical ingredients for mobility, energy, connectivity and health. We partner to pioneer new ways to move, power, connect and protect with people and planet in mind. A reliable and high-quality global supply of lithium and bromine allows us to deliver advanced solutions for our customers. Learn more about how the people of Albemarle are enabling a more resilient world at Albemarle.com.
Albemarle regularly posts information to Albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations, U.S. Securities and Exchange Commission filings and other information regarding the company, its businesses and the markets it serves.
This press release contains statements concerning our expectations, anticipations and beliefs regarding the future, which constitute “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties, often contain words such as “ambition,” “anticipate,” “believe,” “estimate,” “expect,” “goal,” “guidance,” “intend,” “may,” “outlook,” “scenario,” “should,” “would,” and “will.” Forward-looking statements may include statements regarding: our 2026 company and segment outlooks, including expected market pricing of lithium carbonate equivalent and spodumene and other underlying assumptions and outlook consideration; plans and expectations regarding customer demand and sales; production impacts; financial flexibility and optionality; expected or actual market pricing of lithium, spodumene, bromine, and lithium specialties (“Company Products”); supply and demand for Company Products; drivers of long-term demand and growth; other underlying assumptions and outlook considerations; expected capital allocation and expenditure amounts and the corresponding impact on cash flow; expected impact of tariffs 4 and other trade restrictions; long-term targets for operating cash flow conversion and other financial metrics; plans and expectations regarding other mining interests, resources, reserves, projects and activities, compound annual growth rate, cost reductions, conversion network optimization, margin improvement, accounting charges, and all other information relating to matters that are not historical facts. Factors that could cause Albemarle’s actual results to differ materially from the outlook expressed or implied in any forward-looking statement include: changes in economic and business conditions; changes in trade policies and tariffs; and the financial and operating performance of customers; timing and magnitude of customer orders; fluctuations in market pricing of lithium carbonate equivalent and spodumene; potential production volume shortfalls; increased competition and pressure to renegotiate contract terms; changes in product or conversion demand; availability and cost of raw materials and energy; technological change and development; fluctuations in foreign currencies; changes in laws and government regulation; regulatory actions, proceedings, claims or litigation; cyber-security breaches, terrorist attacks, industrial accidents or natural disasters; risks related to the integration of artificial intelligence technologies into our operations; geopolitical conflicts and political unrest affecting global trade; the global economy and clean energy initiatives; our ability to retain key personnel and attract new skilled personnel changes in inflation or interest rates; volatility and uncertainties in the debt and equity markets; acquisition and divestiture transactions; timing and success of projects; expected benefits and expenses from new operating structure and asset optimization activities; performance of Albemarle’s partners in joint ventures and other projects; changes in credit ratings; impacts of the situations in the Middle East, the tensions between China and Taiwan and the military conflict between Russia and Ukraine, and the related global responses; and the other factors detailed from time to time in the reports Albemarle files with the SEC, including those described under “Risk Factors” in Albemarle’s most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q, which are filed with the SEC and available on the investor section of Albemarle’s website (investors.albemarle.com) and on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this press release. Albemarle assumes no obligation to provide any revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws. 5 Albemarle Corporation and Subsidiaries
ASSETS September 30, December 31, Current assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 1,845,999 $ 1,618,001 equivalents Trade accounts 606,375 593,502 receivable Other accounts 145,065 105,110 receivable Inventories 1,392,595 1,179,271 Other current 242,729 140,440 assets Current assets held — 371,815 for sale Total current 4,232,763 4,008,139 assets Property, plant and 11,979,325 11,768,840 equipment Less accumulated depreciation and 3,595,344 3,156,429 amortization Net property, plant 8,383,981 8,612,411 and equipment Investments 1,084,557 900,926 Other assets 698,181 647,185 Goodwill 1,485,728 1,499,657 Other intangibles, 198,105 214,233 net of amortization Noncurrent assets — 491,660 held for sale Total assets $ 16,083,315 $ 16,374,211 LIABILITIES AND EQUITY Current liabilities: Accounts payable to $ 684,046 $ 779,160 third parties Accounts payable to 330,110 134,369 related parties Accrued expenses 530,903 521,831 Current portion of 74,602 74,077 long-term debt Dividends payable 62,134 61,387 Income taxes 124,260 35,467 payable Current liabilities — 191,753 held for sale Total current 1,806,055 1,798,044 liabilities Long-term debt 1,806,750 3,119,464 Postretirement 45,326 44,744 benefits Pension benefits 104,655 117,361 Other noncurrent 1,138,299 1,084,892 liabilities Deferred income 362,201 368,275 taxes Noncurrent liabilities held — 59,970 for sale Commitments and contingencies Equity: Albemarle Corporation shareholders’ equity: Common stock 1,180 1,178 Mandatory convertible 2,235,105 2,235,105 preferred stock Additional paid-in 3,058,640 3,018,213 capital Accumulated other -193,863 -334,807 comprehensive loss Retained earnings 5,440,508 4,613,676 Total Albemarle Corporation 10,541,570 9,533,365 shareholders’ equity Noncontrolling 278,459 248,096 interests Total equity 10,820,029 9,781,461 Total liabilities $ 16,083,315 $ 16,374,211 and equity
Nine Months Ended September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents at beginning $ 1,618,001 $ 1,192,230 of year Cash flows from operating activities: Net income (loss) 1,144,856 -63,450 Adjustments to reconcile net income (loss) to cash flows from operating activities: Depreciation and 482,010 494,968 amortization Non-cash goodwill — 181,070 impairment charges Loss on sale of business 95,018 — Gain on sale of equity -42,300 — investment Stock-based compensation 24,220 28,048 and other Equity in net income of unconsolidated -453,207 -203,184 investments (net of tax) Dividends received from unconsolidated 368,414 89,048 investments and nonmarketable securities Pension and postretirement 7,901 5,361 expense Pension and postretirement -18,534 -15,849 contributions Unrealized loss (gain) on investments in 4,739 -4,955 marketable securities Gain on early -12,543 — extinguishment of debt Deferred income taxes -30,031 10,316 Working capital changes -135,859 46,478 Noncurrent liability changes and other, 27,353 325,931 net Net cash provided by operating 1,462,037 893,782 activities Cash flows from investing activities: Capital expenditures -250,781 -434,416 Proceeds from sale of businesses, net of 525,156 — cash sold Proceeds from sale of property and — 25,651 equipment Proceeds from sale of 123,270 — investments Proceeds from sale of available for sale — 288,000 debt securities (Payments) proceeds from settlement of -24,526 144,540 foreign currency forward contracts, net Sales of marketable 2,008 7,038 securities, net Investments in equity investments and -178 -180 nonmarketable securities Net cash provided by investing 374,949 30,633 activities Cash flows from financing activities: Repayments of long-term debt and credit -1,331,231 -47,947 agreements Proceeds from borrowings of long-term 53,032 38,332 debt and credit agreements Other debt repayments, net -13,394 -3,694 Fees related to early extinguishment of -1,686 — debt Dividends paid to common -143,160 -142,899 shareholders Dividends paid to mandatory convertible -125,058 -125,063 preferred shareholders Dividends paid to noncontrolling -56,069 -18,169 interests Proceeds from exercise of 19,635 1,494 stock options Withholding taxes paid on stock-based -4,501 -3,170 compensation award distributions Other -438 -55 Net cash used in financing -1,602,870 -301,171 activities Net effect of foreign exchange on cash -6,118 116,284 and cash equivalents Increase in cash and cash 227,998 739,528 equivalents Cash and cash equivalents at end of $ 1,845,999 $ 1,931,758 period
It should be noted that adjusted net income attributable to Albemarle Corporation, adjusted net income (loss) attributable to Albemarle Corporation common shareholders, adjusted diluted income (loss) per share attributable to common shareholders, non-operating pension and other post-employment benefit (“OPEB”) items per diluted share, non-recurring and other unusual items per diluted share, adjusted effective income tax rates, EBITDA, adjusted EBITDA (on a consolidated basis), EBITDA margin, adjusted EBITDA margin, operating cash flow conversion and net debt to adjusted EBITDA ratio are financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States, or GAAP. These non-GAAP measures should not be considered as alternatives to Net income (loss) attributable to Albemarle Corporation (“earnings”) or other comparable measures calculated and reported in accordance with GAAP. These measures are presented here to provide additional useful measurements to review the company’s operations, provide transparency to investors and enable period-to-period comparability of financial performance. The company’s chief operating decision maker uses these measures to assess the ongoing performance of the company and its segments, as well as for business and enterprise planning purposes.
A description of other non-GAAP financial measures that Albemarle uses to evaluate its operations and financial performance, and reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found on the following pages of this press release, which is also is available on Albemarle’s website at https://investors.albemarle.com. The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring or unusual items without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the company's results calculated in accordance with GAAP. 9
(Unaudited) See below for a reconciliation of adjusted net income attributable to Albemarle Corporation, adjusted net income (loss) attributable to Albemarle Corporation common shareholders, EBITDA and adjusted EBITDA (on a consolidated basis), which are non-GAAP financial measures, to Net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP. Adjusted net income attributable to Albemarle Corporation is defined as net income (loss) attributable to Albemarle Corporation before the non-recurring, other unusual and non-operating pension and other post-employment benefit (OPEB) items as listed below. The non- recurring and unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, certain litigation and arbitration costs and charges, and other significant non-recurring items. Adjusted net income (loss) attributable to Albemarle Corporation common stockholders is defined as adjusted net income attributable to Albemarle Corporation after consideration (or impact) of mandatory convertible preferred stock dividends. EBITDA is defined as net income (loss) attributable to Albemarle Corporation before interest and financing expenses, income tax expense (benefit), and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus or minus the proportionate share of Windfield Holdings income tax expense, non-recurring and other unusual items, and non-operating pension and OPEB items as listed below. 10
(a) Calculation of adjusted diluted income (loss) per share attributable to common shareholders for the three and nine months ended September 30, 2026 excludes $41.7 million and $125.1 million, respectively, of mandatory convertible preferred stock dividends and includes the assumed conversion of preferred stock into the diluted shares outstanding, as this results in the more dilutive per share result.
Non-operating pension and OPEB items, consisting of mark-to-market actuarial gains/losses, settlements/curtailments, interest cost and expected return on assets, are not allocated to Albemarle’s operating segments and are included in the Corporate and all other category. In addition, the company believes that these components of pension cost are mainly driven by market performance, and the company manages these separately from the operational performance of the company’s businesses. In accordance with GAAP, these non-operating pension and OPEB items are included in Other income, net. Non-operating pension and OPEB items were as follows (in thousands): 11
In addition to the non-operating pension and OPEB items disclosed above, the company has identified certain other items and excluded them from Albemarle’s adjusted net income (loss) calculation for the periods presented. A listing of these items, as well as a detailed description of each follows below (per diluted share):
(1) In 2026, the Company announced it would place Kemerton Train 1 into care and maintenance. As a result, and in addition to other previously announced restructuring actions, the Company recorded charges of $8.0 million and $41.2 million in Restructuring charges and asset write-offs for the three and nine months ended September 30, 2026, respectively. Due to the impact of valuation allowances, this resulted in total after-tax charges of $8.0 million and $41.4 million, or $0.06 and $0.30 per share, for the three and nine months ended September 30, 2026, respectively. The three and nine months ended September 30, 2025 included certain restructuring costs and adjustments to previously recorded costs related to restructuring actions originally entered into in 2024. As a result, the Company recorded charges of $2.3 million and $5.7 million in Restructuring charges and asset write-offs, respectively, and a loss of $0.1 million in Other income, net for the nine months ended September 30, 2025. Due to the impact of valuation allowances, this resulted in total after-tax gains of $2.2 million and $3.0 million, or $0.02 and $0.03 per share, for the three and nine months ended September 30, 2025, respectively.
(2) Primarily costs related to consulting fees for a project associated with the Company’s strategic cost savings initiative, recorded in Selling, general and administrative expenses for the three months and nine months ended September 30, 2026 were $11.6 million and $30.6 million ($0.08 and $0.22 per share, with no income tax effect due to the impact of valuation allowances), respectively.
(3) Non-cash goodwill impairment charge of $181.1 million ($175.7 million or $1.49 per share after income tax expense) recorded during the three and nine months ended September 30, 2025 related to our Refining Solutions reporting unit within our previously reported Ketjen reportable segment.
(4) Costs related to the acquisition, integration and divestitures for various significant projects, recorded in Selling, general and administrative expenses for the three and nine months ended September 30, 2026 were $4.2 million and $6.1 million ($0.03 and $0.04 per share, with no income tax effect due to the impact of valuation allowances), respectively, and for the three and nine months ended September 30, 2025 were $1.9 million and $5.1 million ($1.5 million and $4.0 million after income taxes, or $0.01 and $0.03 per share), respectively. 12 (5) During the first quarter of 2026, the Company divested its controlling ownership interest in its Refining Solutions business and its full 50% ownership interest in the Eurecat joint venture. As a result of these transactions, the Company recorded a net loss of $52.7 million ($0.39 per share, with no income tax effect due to the impact of valuation allowances), representing the proceeds received less the carrying value as of the transaction dates.
(6) During the first quarter of 2026, the Company completed a $1.3 billion debt tender and redemption, resulting in a gain on early extinguishment of debt of $12.5 million ($0.09 per share, with no income tax effect due to the impact of valuation allowances), representing the repurchase of this debt at a discount, partially offset by tender premiums and redemption fees.
(7) Losses resulting from the net change in fair value of investments in public equity securities, recorded in Other income, net for the three and nine months ended September 30, 2026 of $7.9 million and $6.8 million ($0.06 and $0.05 per share, with no income tax effect due to the impact of valuation allowances), respectively, and for the three and nine months ended September 30, 2025 gains of $8.0 million and $3.1 million ($6.2 million and $2.5 million after income taxes, or $0.05 and $0.02 per share), respectively.
(8) Other adjustments for the three months ended September 30, 2026 included amounts recorded in:
• Cost of goods sold - $11.4 million of expenses related to non-routine labor and compensation related costs that are outside normal compensation arrangements.
• Selling, general and administrative expenses - $1.0 million of expenses related to other costs outside of our regular operations.
Other adjustments for the three months ended September 30, 2025 included amounts recorded in:
• Selling, general and administrative expenses - $2.0 million of severance expenses not related to a restructuring plan, $1.4 million of expenses related to the redemption of preferred equity in a Grace subsidiary, $1.4 million related to the write-off of certain fixed assets and $1.3 million of expenses related to certain historical legal matters, partially offset by $1.9 million of gains from the sale of assets not part of our production operations.
• Other income, net - $0.5 million gain resulting from the adjustment of indemnification related to a previously disposed business.
Other adjustments for the nine months ended September 30, 2026 included amounts recorded in:
• Cost of goods sold - $15.3 million of expenses related to non-routine labor and compensation related costs that are outside normal compensation arrangements.
• Selling, general and administrative expenses - $3.9 million charge for a non- income tax audit of a facility no longer controlled by the Company and a net loss of $1.6 million primarily related to other costs outside of our regular operations.
• Other income, net - Primarily related to $3.4 million of charges for asset retirement obligations at a site not part of our operations and a net loss of $1.5 million primarily driven by indemnification charges related to the Eurecat S.A. joint venture sale, partially offset by a $3.9 million gain resulting from the adjustment of indemnification related to previously disposed businesses.
Other adjustments for the nine months ended September 30, 2025 included amounts recorded in:
• Selling, general and administrative expenses - $13.3 million of gains from the sale of assets not part of our production operations, partially offset by $3.8 million of severance expenses not related to a restructuring plan, $1.9 million of expenses related to certain historical legal matters, $1.4 million of expenses related to the redemption of preferred equity in a Grace subsidiary and $1.4 million related to the write-off of certain fixed assets.
• Other income, net - $38.0 million loss resulting from the redemption of preferred equity in a Grace subsidiary and $1.9 million of charges for asset retirement obligations at a site not part of our operations, partially offset by $19.8 million of income from PIK dividends of the preferred equity in a Grace subsidiary prior to redemption and a $2.4 million gain primarily resulting from the adjustment of indemnification related to previously disposed businesses.
After income taxes, these net losses totaled $8.4 million, or $0.07 per share. 13 (9) Included in Income tax expense (benefit) for the three and nine months ended September 30, 2026 are discrete net tax expenses of $15.3 million and $25.9 million, or $0.11 and $0.19 per share, respectively, primarily related to the impact of foreign tax reserves and foreign return to provisions.
Included in Income tax expense (benefit) for the three and nine months ended September 30, 2025 are discrete net tax expenses of $3.9 million, or $0.03 per share, and $1.9 million, or $0.02 per share, respectively, primarily related to the impact of foreign tax reserves, the change in the Company’s assertion over book and tax basis differences of a foreign entity and changes in certain foreign tax rates.
See below for a reconciliation of the adjusted effective income tax rate, the non-GAAP financial measure, to the effective income tax rate, the most directly comparable financial measure calculated and reporting in accordance with GAAP (in thousands, except percentages).
See below for the calculation of operating cash flow conversion and a reconciliation of free cash flow, a non-GAAP measure, to net cash provided by operating activities, the most directly comparable financial measure calculated and reporting in accordance with GAAP. The Company defines operating cash flow conversion as Net cash provided by operating activities from the statement of cash flows divided by adjusted EBITDA, which is a non-GAAP measure. A reconciliation of adjusted EBITDA, the non-GAAP financial measure, from net income (loss) attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reporting in accordance with GAAP, is provided in the above tables (in thousands, except percentages). 14
Three Months Ended September 30, 2026 ─────────────────────────────────────────────────────────────────── Free cash flow: Net cash provided by operating $ 405,796 activities Less: Capital expenditures -80,374 Free cash flow $ 325,422 Operating cash flow conversion: Net cash provided by operating $ 405,796 activities Adjusted EBITDA $ 645,510 Operating cash flow conversion 63 %
See below for the calculation of the net debt to adjusted EBITDA ratio (“Consolidated Leverage Ratio,” as defined in our credit agreement), a non-GAAP financial measure, for the twelve months ended September 30, 2026 (in thousands, except ratio).
Twelve Months Ended September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Adjusted EBITDA $ 2,436,165 Equity in net income of non-Windfield Holdings unconsolidated investments 11,099 (net of tax) Dividends received from non-Windfield 4,691 Holdings unconsolidated investments Consolidated Windfield-Adjusted $ 2,451,955 EBITDA Total Albemarle Corporation long-term $ 1,881,352 debt (as reported) Unamortized discount and debt issuance 41,954 costs 49% Windfield Holdings debt 776,111 Off-balance sheet obligations and 96,900 other Consolidated Windfield-Adjusted Funded $ 2,796,317 Debt Less Cash 1,845,999 Less 49% Windfield Holdings cash 126,925 Consolidated Windfield-Adjusted Funded $ 823,393 Net Debt Consolidated Leverage Ratio 0.3
Full text with the tables
Exhibit 99.1
Contact:
invest@albemarle.com 1.980.308.6194
Albemarle Reports Third Quarter 2026 Results
CHARLOTTE, N.C. – November 4, 2026 - Albemarle Corporation (NYSE: ALB), a global
leader in providing essential elements for mobility, energy, connectivity and
health, today announced its results for the third quarter ended September 30,
2026.
Third Quarter 2026 and Recent Highlights
(Unless otherwise stated, all percentage changes represent year-over-year
comparisons and do not exclude the prior-period results of Ketjen’s refining
catalyst solutions business in which the company sold a 51% stake on March 2,
2026)
• Net sales of $1.6 billion, up 19% due to higher pricing in Energy Storage
(+68%) and higher pricing and volumes in Specialties (price +10%, volume +3%).
• Net income of $297 million, or $2.15 per diluted share attributable to common
shareholders; Adjusted net income (a) of $354 million, or $2.58 per diluted
share attributable to common shareholders which primarily excludes restructuring
and other related charges.
• Adjusted EBITDA (a) of $646 million; up 186% due primarily to higher pricing
in Energy Storage, increased pricing and volumes in Specialties and cost and
productivity improvements.
• Cash from operating activities of $406 million and free cash flow of $325
million (a) . Operating cash flow conversion of 63% (a) , supported by a cash
dividend from the Talison joint venture which partly offset timing of working
capital changes.
• Delivered more than $150 million in year-to-date run -rate cost and
productivity improvements, achieving the high end of our full-year target .
• Talison’s Chemical Grade Plant 3 (CGP3) achieved 30-days of nameplate
performance in September.
• Improving full-year 2026 outlook considerations including:
◦ Specialties adjusted EBITDA of $350-$375 million (up from $275-$325 million),
in part driven by ongoing cost and productivity improvements.
◦ Reducing full-year capital expenditure forecast to $300-$350 million (down
from approximately $500 million), reflecting continued benefits from our focused
capital efficiency improvements, as well as resequencing of some early-stage
projects.
(a) See Non-GAAP Reconciliations for further details.
“Albemarle delivered another solid quarter, reflecting disciplined execution
across the enterprise,” said Kent Masters, Chairman and CEO. “In Specialties,
improved pricing and sustained progress on cost and productivity initiatives
support an additional increased outlook for the year. Global lithium demand is
up 48% year-to-date though August, driven by both electric vehicles and energy
storage, reinforcing our confidence in the long-term outlook for the industry.
We will continue to prioritize high-return organic growth by leveraging our
advantaged resource base, capital spending efficiency, and financial
flexibility.”
1
Third Quarter 2026 Results
In
million…
except
per
share
amounts Q3 2026 Q3 2025 Change % Change
──────────────────────────────────────────────────────────────────────────────
Net $ 1,553.1 $ 1,307.8 $ 245.3 18.8 %
sales
Net
income
(loss)
attribu… $ 296.8 $ -160.7 $ 457.4 NM
to
Albemar…
Corpora…
Adjusted $ 645.5 $ 225.6 $ 419.9 186.1 %
EBITDA(…
Diluted
income
(loss)
per
share $ 2.15 $ -1.72 $ 3.87 NM
attribu…
to
common
shareho…
Non-ope…
pension 0.01 —
and OPEB
items(a)
Non-rec…
and
other 0.41 1.53
unusual
items(a)
Adjusted
diluted
income
(loss)
per $ 2.58 $ -0.19 $ 2.77 NM
share
attribu…
to
common
shareho…
(a) See Non-GAAP Reconciliations for further details.
(b) Totals may not add due to rounding.
Net sales for the third quarter of 2026 were $1.6 billion, up 19%, driven
primarily by higher prices in both Energy Storage and Specialties and volume
growth in Specialties. Adjusted EBITDA of $646 million increased by $420 million
from the prior-year quarter, primarily due to higher net sales and ongoing cost
and productivity improvements.
Net income attributable to Albemarle of $297 million increased year over year by
$457 million. The effective income tax rate for the third quarter of 2026 was
16.4% or 5.8% on an adjusted basis due to geographic income mix.
Energy Storage Results
In
millions Q3 2026 Q3 2025 Change % Change
──────────────────────────────────────────────────────────────────────────────
Net $ 1,118.8 $ 708.8 $ 410.0 57.9 %
Sales
Sales
Volume 56 69 -13 -18.8 %
(kT
LCE)(a)
Avg.
Realized
Price $ 20.02 $ 10.28 $ 9.74 94.7 %
($/kg
LCE)(a)
Adjusted $ 559.8 $ 124.1 $ 435.7 351.2 %
EBITDA
(a) Includes aggregated salts and spodumene sales on a lithium carbonate
equivalent (LCE) basis.
Energy Storage net sales for the third quarter of 2026 were $1.1 billion, an
increase of $410 million, or 58%, due to higher pricing. Adjusted EBITDA of $560
million increased $436 million, or 351%, primarily due to improved lithium
pricing and partially offset by higher price spodumene inventory processed in
the quarter and increased Chilean commissions. Sales volume declined year-over-
year primarily due to timing events in the prior-year period, including
inventory destocking and higher-than-usual spodumene shipments, which led to the
third quarter of 2025 being the segment’s record highest volume quarter on a
lithium carbonate equivalent (LCE) basis.
Specialties Results
In
millions Q3 2026 Q3 2025 Change % Change
──────────────────────────────────────────────────────────────────────────────
Net $ 388.6 $ 345.0 $ 43.7 12.7 %
Sales
Adjusted $ 98.7 $ 75.5 $ 23.2 30.7 %
EBITDA
Specialties net sales for the third quarter of 2026 were $389 million, an
increase of $44 million, or 13%, primarily due to higher pricing (+10%) and
volumes (+3%). Adjusted EBITDA of $99 million increased $23 million, or 31%,
primarily due to higher volumes and favorable pricing in bromine and
derivatives, along with continued productivity improvements and proactive
management of cost escalations driven by the conflict in the Middle East.
Additionally, the Jordan Bromine Company (JBC) joint venture achieved record
quarterly production.
2026 Outlook Considerations
Total Corporate Outlook Considerations
The table below reflects expected outcomes for the total company based on
recently observed lithium market price scenarios. Outlook ranges for each
scenario are based on variation in sales volume and product mix. Energy Storage
production volumes are expected to increase year over year. Sales volumes are
expected to be in the range of 225 to 235 kilotons lithium carbonate equivalent,
as increased Wodgina volumes partially offset a
2
delay in the Talison CGP3 ramp due to a fire that occurred on June 9. All three
scenarios assume flat market pricing flowing through Energy Storage’s current
contract book which includes approximately 40% of salts volume (or one-third of
total volumes) on long-term agreements. Scenarios also assume that spodumene
pricing averages 10% of the lithium carbonate equivalent (LCE) price, while
other costs are assumed to be constant.
Total Corporate
FY 2026E
Observed market FY 2025 avg. Q1 2026 avg. 2021-2025 avg.
price case(a)
Average lithium
market price ~$10 ~$20 ~$30
($/kg
LCE)(a)
Net sales $4.1 - $4.3 $5.7 - $6.0 $7.5 - $7.8
billion billion billion
Adjusted $0.9 - $1.0 $2.4 - $2.6 $4.2 - $4.4
EBITDA(b) billion billion billion
(a) Price represents blend of relevant market pricing including spot and
regional indices for the periods referenced.
(b) The Company does not provide a reconciliation of forward-looking non-GAAP
financial measures to the most directly comparable financial measures calculated
and reported in accordance with GAAP, as the company is unable to estimate
significant non-recurring or unusual items without unreasonable effort. See
“Additional Information Regarding Non-GAAP Measures” for more information.
Energy Storage Market Price Scenarios
Fourth quarter 2026 net sales and adjusted EBITDA are expected to decrease
sequentially due to lower market pricing with steady sales volumes. Fourth-
quarter margins are expected to decrease sequentially due to consumption of
higher-cost spodumene inventory purchased in prior periods.
Energy Storage
FY 2026E
Observed market FY 2025 avg. Q1 2026 avg. 2021-2025 avg.
price case(a)
Average lithium
market price ~$10 ~$20 ~$30
($/kg
LCE)(a)
Net sales $2.5 - $2.6 $4.0 - $4.2 $5.9 - $6.1
billion billion billion
Adjusted EBITDA $0.7 - $0.8 $2.1 - $2.3 $3.9 - $4.1
billion billion billion
Equity in net
income of $0.2 - $0.3 $0.6 - $0.7 $1.0 - $1.1
unconsolidated billion billion billion
investments
(net of tax)(b)
(a) Price represents blend of relevant market pricing including spot and
regional indices for the periods referenced.
(b) Included in adjusted EBITDA on a pre-tax basis.
Specialties Outlook Considerations
Specialties adjusted EBITDA outlook is improved as strong year-to-date
performance, primarily driven by cost and productivity improvements, more than
offset supply chain related cost escalation due to the conflict in the Middle
East. Our outlook continues to reflect modest volume growth in key end markets
led by semiconductors, oil and gas, fl ame retardants and pharmaceuticals and
steady year-to-date demand in automotive and petrochemical markets. Fourth
quarter outlook assumes steady demand in the bromine market and the impact of
the ongoing situation in the Middle East.
Specialties FY 2026E
Specialties net sales $1.4 - $1.6 billion
Specialties adjusted EBITDA $350 - $375 million
Other Corporate Outlook Considerations
Albemarle now expects its full-year 2026 capital expenditures to b e $300-$350
million, reflecting continued benefits from our focused capital efficiency
improvements as well as resequencing of some earl y-stage project spend.
Following the sale of a controlling stake in Ketjen’s refining catalyst
solutions business, announced on March 2, 2026, the refining catalyst business
earnings are now classified as equity income and included in Corporate, as are
the results of the retained Performance Catalyst Solutions (PCS) business. The
adjusted EBITDA and equity income contributions from these businesses are
expected to be immaterial post transaction.
3
Other Corporate FY 2026E
Capital expenditures $300 - $350 million
Depreciation and amortization $660 - $680 million
Adjusted effective tax rate(a) (50)% - 30%
Corporate adjusted EBITDA (incl. FX, Ketjen
equity ($20) - $20 million
income & PCS)
Interest and financing expenses $120 - $140 million
Weighted-average common shares outstanding ~136 million
(diluted)(b)
(a) Adjusted effective tax rate dependent on lithium market prices and
geographic income mix
(b) Diluted weighted-average common shares outstanding amount assumes the
conversion of preferred stock and the net income attributable to common
shareholders will not be reduced by mandatory convertible preferred stock
dividends. If the reduction of mandatory convertible preferred stock dividends
results in a more dilutive earnings per share, the diluted weighted-average
common shares outstanding will not assume conversion of the preferred stock.
Cash Flow and Capital Deployment
Cash from operations of $1.5 billion in the first nine months of 2026 increased
$568 million compared to the prior-year period. Year-to-date operating cash flow
conversion is 67% as of September 30, 2026. Capital expenditures of $251 million
in the first nine months of 2026 decreased by $184 million versus the prior-year
period. As of September 30, 2026, Albemarle has delivered free cash flow of $1.2
billion year-to-date.
Balance Sheet and Liquidity
As of September 30, 2026, Albemarle had estimated liquidity of approximately
$3.4 billion, including $1.8 billion of cash and cash equivalents, $1.5 billion
available under our revolver and $79 million available under other credit lines.
Total debt was $1.9 billion, representing a net debt to adjusted EBITDA ratio
(as defined in our credit agreement) of approximately 0.3 (a) .
(a) See Non-GAAP Reconciliations for further details.
Earnings Call
Date: Thurs., November 5, 2026
──────────────────────────────────────────────────────
Time: 8:00 AM Eastern time
Dial-in (U.S.): 1-800-590-8290
Dial-in (International): 1-240-690-8800
Conference ID: ALBQ3
The company’s earnings presentation and supporting material are available on
Albemarle’s website at https://investors.albemarle.com.
About Albemarle
Albemarle Corporation (NYSE: ALB) is a world leader in transforming essential
resources into critical ingredients for mobility, energy, connectivity and
health. We partner to pioneer new ways to move, power, connect and protect with
people and planet in mind. A reliable and high-quality global supply of lithium
and bromine allows us to deliver advanced solutions for our customers. Learn
more about how the people of Albemarle are enabling a more resilient world at
Albemarle.com.
Albemarle regularly posts information to Albemarle.com, including notification
of events, news, financial performance, investor presentations and webcasts,
non-GAAP reconciliations, U.S. Securities and Exchange Commission filings and
other information regarding the company, its businesses and the markets it
serves.
Forward-Looking Statements
This press release contains statements concerning our expectations,
anticipations and beliefs regarding the future, which constitute “forward-
looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements, which are based on
assumptions that we have made as of the date hereof and are subject to known and
unknown risks and uncertainties, often contain words such as “ambition,”
“anticipate,” “believe,” “estimate,” “expect,” “goal,” “guidance,” “intend,”
“may,” “outlook,” “scenario,” “should,” “would,” and “will.” Forward-looking
statements may include statements regarding: our 2026 company and segment
outlooks, including expected market pricing of lithium carbonate equivalent and
spodumene and other underlying assumptions and outlook consideration; plans and
expectations regarding customer demand and sales; production impacts; financial
flexibility and optionality; expected or actual market pricing of lithium,
spodumene, bromine, and lithium specialties (“Company Products”); supply and
demand for Company Products; drivers of long-term demand and growth; other
underlying assumptions and outlook considerations; expected capital allocation
and expenditure amounts and the corresponding impact on cash flow; expected
impact of tariffs
4
and other trade restrictions; long-term targets for operating cash flow
conversion and other financial metrics; plans and expectations regarding other
mining interests, resources, reserves, projects and activities, compound annual
growth rate, cost reductions, conversion network optimization, margin
improvement, accounting charges, and all other information relating to matters
that are not historical facts. Factors that could cause Albemarle’s actual
results to differ materially from the outlook expressed or implied in any
forward-looking statement include: changes in economic and business conditions;
changes in trade policies and tariffs; and the financial and operating
performance of customers; timing and magnitude of customer orders; fluctuations
in market pricing of lithium carbonate equivalent and spodumene; potential
production volume shortfalls; increased competition and pressure to renegotiate
contract terms; changes in product or conversion demand; availability and cost
of raw materials and energy; technological change and development; fluctuations
in foreign currencies; changes in laws and government regulation; regulatory
actions, proceedings, claims or litigation; cyber-security breaches, terrorist
attacks, industrial accidents or natural disasters; risks related to the
integration of artificial intelligence technologies into our operations;
geopolitical conflicts and political unrest affecting global trade; the global
economy and clean energy initiatives; our ability to retain key personnel and
attract new skilled personnel changes in inflation or interest rates; volatility
and uncertainties in the debt and equity markets; acquisition and divestiture
transactions; timing and success of projects; expected benefits and expenses
from new operating structure and asset optimization activities; performance of
Albemarle’s partners in joint ventures and other projects; changes in credit
ratings; impacts of the situations in the Middle East, the tensions between
China and Taiwan and the military conflict between Russia and Ukraine, and the
related global responses; and the other factors detailed from time to time in
the reports Albemarle files with the SEC, including those described under “Risk
Factors” in Albemarle’s most recent Annual Report on Form 10-K and any
subsequently filed Quarterly Reports on Form 10-Q, which are filed with the SEC
and available on the investor section of Albemarle’s website
(investors.albemarle.com) and on the SEC’s website at www.sec.gov. These
forward-looking statements speak only as of the date of this press release.
Albemarle assumes no obligation to provide any revisions to any forward-looking
statements should circumstances change, except as otherwise required by
securities and other applicable laws.
5
Albemarle Corporation and Subsidiaries
Consolidated Statements of Income (Loss)
(In Thousands Except Per Share Amounts) (Unaudited)
Three Nine
Months Months
Ended Septe… Ended Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 1,553… $ 1,307,… $ 4,725,… $ 3,714…
sales
Cost
of 1,252… 1,190,… 3,333,… 3,243…
goods
sold
Gross 300,7… 117,610 1,391,… 470,7…
prof…
Sell…
gene…
and 136,3… 138,577 400,112 394,5…
admi…
expe…
Good…
impa… — 181,070 — 181,0…
char…
Rest…
char…
and 8,038 2,275 41,241 5,660
asset
writ…
Rese…
and 8,173 12,674 21,010 39,217
deve…
expe…
Loss
on
sale — — 95,018 —
of
busi…
Oper…
inco… 148,1… -216,9… 834,610 -149,…
(los…
Inte…
and -27,8… -50,959 -91,848 -149,…
fina…
expe…
Other
inco… 12,861 28,799 86,300 32,490
net
Inco…
(los…
befo…
inco…
taxes
and
equi… 133,2… -239,1… 829,062 -267,…
in
net
inco…
of
unco…
inve…
Inco…
tax 21,900 -30,565 137,413 -449
expe…
(ben…
Inco…
(los…
befo…
equi…
in 111,3… -208,5… 691,649 -266,…
net
inco…
of
unco…
inve…
Equi…
in
net
inco…
of 205,3… 60,640 453,207 203,1…
unco…
inve…
(net
of
tax)
Net
inco… 316,6… -147,9… 1,144,… -63,4…
(los…
Net
inco…
attr… -19,9… -12,753 -49,051 -32,9…
to
nonc…
inte…
Net
inco…
(los…
attr… 296,7… -160,6… 1,095,… -96,4…
to
Albe…
Corp…
Mand…
conv…
pref… -41,6… -41,688 -125,0… -125,…
stock
divi…
Net
inco…
(los…
attr…
to $ 255,0… $ -202,3… $ 970,747 $ -221,…
Albe…
Corp…
comm…
shar…
Basic
earn…
(los…
per
share $ 2.16 $ -1.72 $ 8.23 $ -1.88
attr…
to
comm…
shar…
Dilu…
earn…
(los…
per
share $ 2.15 $ -1.72 $ 8.03 $ -1.88
attr…
to
comm…
shar…
Weig…
comm…
shar… 118,0… 117,685 117,941 117,6…
outs…
–
basic
Weig…
comm…
shar… 118,5… 117,685 136,492 117,6…
outs…
–
dilu…
6
Albemarle Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In Thousands) (Unaudited)
ASSETS September 30, December 31,
Current assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 1,845,999 $ 1,618,001
equivalents
Trade accounts 606,375 593,502
receivable
Other accounts 145,065 105,110
receivable
Inventories 1,392,595 1,179,271
Other current 242,729 140,440
assets
Current assets held — 371,815
for sale
Total current 4,232,763 4,008,139
assets
Property, plant and 11,979,325 11,768,840
equipment
Less accumulated
depreciation and 3,595,344 3,156,429
amortization
Net property, plant 8,383,981 8,612,411
and equipment
Investments 1,084,557 900,926
Other assets 698,181 647,185
Goodwill 1,485,728 1,499,657
Other intangibles, 198,105 214,233
net of amortization
Noncurrent assets — 491,660
held for sale
Total assets $ 16,083,315 $ 16,374,211
LIABILITIES AND
EQUITY
Current
liabilities:
Accounts payable to $ 684,046 $ 779,160
third parties
Accounts payable to 330,110 134,369
related parties
Accrued expenses 530,903 521,831
Current portion of 74,602 74,077
long-term debt
Dividends payable 62,134 61,387
Income taxes 124,260 35,467
payable
Current liabilities — 191,753
held for sale
Total current 1,806,055 1,798,044
liabilities
Long-term debt 1,806,750 3,119,464
Postretirement 45,326 44,744
benefits
Pension benefits 104,655 117,361
Other noncurrent 1,138,299 1,084,892
liabilities
Deferred income 362,201 368,275
taxes
Noncurrent
liabilities held — 59,970
for sale
Commitments and
contingencies
Equity:
Albemarle
Corporation
shareholders’
equity:
Common stock 1,180 1,178
Mandatory
convertible 2,235,105 2,235,105
preferred stock
Additional paid-in 3,058,640 3,018,213
capital
Accumulated other -193,863 -334,807
comprehensive loss
Retained earnings 5,440,508 4,613,676
Total Albemarle
Corporation 10,541,570 9,533,365
shareholders’
equity
Noncontrolling 278,459 248,096
interests
Total equity 10,820,029 9,781,461
Total liabilities $ 16,083,315 $ 16,374,211
and equity
7
Albemarle Corporation and Subsidiaries
Selected Consolidated Cash Flow Data
(In Thousands) (Unaudited)
Nine Months Ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents
at beginning $ 1,618,001 $ 1,192,230
of year
Cash flows from operating
activities:
Net income (loss) 1,144,856 -63,450
Adjustments to reconcile
net income
(loss) to cash flows from
operating
activities:
Depreciation and 482,010 494,968
amortization
Non-cash goodwill — 181,070
impairment charges
Loss on sale of business 95,018 —
Gain on sale of equity -42,300 —
investment
Stock-based compensation 24,220 28,048
and other
Equity in net income of
unconsolidated -453,207 -203,184
investments (net of tax)
Dividends received from
unconsolidated 368,414 89,048
investments and
nonmarketable securities
Pension and postretirement 7,901 5,361
expense
Pension and postretirement -18,534 -15,849
contributions
Unrealized loss (gain) on
investments in 4,739 -4,955
marketable securities
Gain on early -12,543 —
extinguishment of debt
Deferred income taxes -30,031 10,316
Working capital changes -135,859 46,478
Noncurrent liability
changes and other, 27,353 325,931
net
Net cash provided by
operating 1,462,037 893,782
activities
Cash flows from investing
activities:
Capital expenditures -250,781 -434,416
Proceeds from sale of
businesses, net of 525,156 —
cash sold
Proceeds from sale of
property and — 25,651
equipment
Proceeds from sale of 123,270 —
investments
Proceeds from sale of
available for sale — 288,000
debt securities
(Payments) proceeds from
settlement of -24,526 144,540
foreign currency forward
contracts, net
Sales of marketable 2,008 7,038
securities, net
Investments in equity
investments and -178 -180
nonmarketable securities
Net cash provided by
investing 374,949 30,633
activities
Cash flows from financing
activities:
Repayments of long-term
debt and credit -1,331,231 -47,947
agreements
Proceeds from borrowings of
long-term 53,032 38,332
debt and credit agreements
Other debt repayments, net -13,394 -3,694
Fees related to early
extinguishment of -1,686 —
debt
Dividends paid to common -143,160 -142,899
shareholders
Dividends paid to mandatory
convertible -125,058 -125,063
preferred shareholders
Dividends paid to
noncontrolling -56,069 -18,169
interests
Proceeds from exercise of 19,635 1,494
stock options
Withholding taxes paid on
stock-based -4,501 -3,170
compensation award
distributions
Other -438 -55
Net cash used in financing -1,602,870 -301,171
activities
Net effect of foreign
exchange on cash -6,118 116,284
and cash equivalents
Increase in cash and cash 227,998 739,528
equivalents
Cash and cash equivalents
at end of $ 1,845,999 $ 1,931,758
period
8
Albemarle Corporation and Subsidiaries
Consolidated Summary of Segment Results
(In Thousands) (Unaudited)
Three Nine
Months Months
Ended Ended
Septem… Septe…
Net 30, 30,
sale… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Ener… $ 1,118… $ 708,755 $ 3,286,… $ 1,950…
Stor…
Spec… 388,6… 344,960 1,170,… 1,017…
Total
segm… 1,507… 1,053,… 4,457,… 2,968…
net
sales
Corp…
and 45,691 254,114 267,989 746,1…
all
other
Total
net $ 1,553… $ 1,307,… $ 4,725,… $ 3,714…
sales
Adju…
EBIT…
Ener… $ 559,8… $ 124,077 $ 1,834,… $ 530,1…
Stor…
Spec… 98,729 75,544 292,578 207,1…
Total
segm… 658,5… 199,621 2,127,… 737,3…
adju…
EBIT…
Corp…
and -13,0… 26,009 40,224 91,905
all
other
Total
adju… $ 645,5… $ 225,630 $ 2,167,… $ 829,2…
EBIT…
See accompanying non-GAAP reconciliations below.
Additional Information Regarding Non-GAAP Measures
It should be noted that adjusted net income attributable to Albemarle
Corporation, adjusted net income (loss) attributable to Albemarle Corporation
common shareholders, adjusted diluted income (loss) per share attributable to
common shareholders, non-operating pension and other post-employment benefit
(“OPEB”) items per diluted share, non-recurring and other unusual items per
diluted share, adjusted effective income tax rates, EBITDA, adjusted EBITDA (on
a consolidated basis), EBITDA margin, adjusted EBITDA margin, operating cash
flow conversion and net debt to adjusted EBITDA ratio are financial measures
that are not required by, or presented in accordance with, accounting principles
generally accepted in the United States, or GAAP. These non-GAAP measures should
not be considered as alternatives to Net income (loss) attributable to Albemarle
Corporation (“earnings”) or other comparable measures calculated and reported in
accordance with GAAP. These measures are presented here to provide additional
useful measurements to review the company’s operations, provide transparency to
investors and enable period-to-period comparability of financial performance.
The company’s chief operating decision maker uses these measures to assess the
ongoing performance of the company and its segments, as well as for business and
enterprise planning purposes.
A description of other non-GAAP financial measures that Albemarle uses to
evaluate its operations and financial performance, and reconciliation of these
non-GAAP financial measures to the most directly comparable financial measures
calculated and reported in accordance with GAAP can be found on the following
pages of this press release, which is also is available on Albemarle’s website
at https://investors.albemarle.com. The company does not provide a
reconciliation of forward-looking non-GAAP financial measures to the most
directly comparable financial measures calculated and reported in accordance
with GAAP, as the company is unable to estimate significant non-recurring or
unusual items without unreasonable effort. The amounts and timing of these items
are uncertain and could be material to the company's results calculated in
accordance with GAAP.
9
ALBEMARLE CORPORATION AND SUBSIDIARIES
Non-GAAP Reconciliations
(Unaudited)
See below for a reconciliation of adjusted net income attributable to Albemarle
Corporation, adjusted net income (loss) attributable to Albemarle Corporation
common shareholders, EBITDA and adjusted EBITDA (on a consolidated basis), which
are non-GAAP financial measures, to Net income (loss) attributable to Albemarle
Corporation, the most directly comparable financial measure calculated and
reported in accordance with GAAP. Adjusted net income attributable to Albemarle
Corporation is defined as net income (loss) attributable to Albemarle
Corporation before the non-recurring, other unusual and non-operating pension
and other post-employment benefit (OPEB) items as listed below. The non-
recurring and unusual items may include acquisition and integration related
costs, gains or losses on sales of businesses, restructuring charges, facility
divestiture charges, certain litigation and arbitration costs and charges, and
other significant non-recurring items. Adjusted net income (loss) attributable
to Albemarle Corporation common stockholders is defined as adjusted net income
attributable to Albemarle Corporation after consideration (or impact) of
mandatory convertible preferred stock dividends. EBITDA is defined as net income
(loss) attributable to Albemarle Corporation before interest and financing
expenses, income tax expense (benefit), and depreciation and amortization.
Adjusted EBITDA is defined as EBITDA plus or minus the proportionate share of
Windfield Holdings income tax expense, non-recurring and other unusual items,
and non-operating pension and OPEB items as listed below.
10
… …
… …
… … … …
… … … … … …
──────────────────────────────────────────────────────────────────────────────
% % % %
$ … $ … $ … $ …
… … … …
… … … …
… $ … $ … $ …
… … … …
… … … …
… … … …
— … — …
… $ … $ … $ …
$ … $ … $ … $ …
… … … …
… … % $ … … % $ … … % $ … … %
… … % … … % … … % … … %
… … % … … % … … % … — %
… … % … … % … … % … … %
… … % … … % … … % … … %
… … % … … % … … % … … %
… … % … — % … … % … — %
… … % … … % … … % … … %
… … % $ … … % $ … … % $ … … %
$ … $ … $ … $ …
(a) Calculation of adjusted diluted income (loss) per share attributable to
common shareholders for the three and nine months ended September 30, 2026
excludes $41.7 million and $125.1 million, respectively, of mandatory
convertible preferred stock dividends and includes the assumed conversion of
preferred stock into the diluted shares outstanding, as this results in the more
dilutive per share result.
Non-operating pension and OPEB items, consisting of mark-to-market actuarial
gains/losses, settlements/curtailments, interest cost and expected return on
assets, are not allocated to Albemarle’s operating segments and are included in
the Corporate and all other category. In addition, the company believes that
these components of pension cost are mainly driven by market performance, and
the company manages these separately from the operational performance of the
company’s businesses. In accordance with GAAP, these non-operating pension and
OPEB items are included in Other income, net. Non-operating pension and OPEB
items were as follows (in thousands):
11
Three Nine
Months Months
Ended Septem… Ended Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Inter… $ 8,975 $ 8,976 $ 27,010 $ 26,710
cost
Expec…
return -7,897 -8,609 -23,731 -25,7…
on
assets
Total $ 1,078 $ 367 $ 3,279 $ 978
In addition to the non-operating pension and OPEB items disclosed above, the
company has identified certain other items and excluded them from Albemarle’s
adjusted net income (loss) calculation for the periods presented. A listing of
these items, as well as a detailed description of each follows below (per
diluted share):
Three Nine
Months Months
Ended Septem… Ended Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Restr…
charg…
and $ 0.06 $ 0.02 $ 0.30 $ 0.03
asset
write…
Strat…
cost 0.08 — 0.22 —
savin…
initi…
Goodw…
impai… — 1.49 — 1.49
charg…
Acqui…
and
integ… 0.03 0.01 0.04 0.03
relat…
costs…
Loss
on
sale
of — — 0.39 —
busin…
inves…
net(5)
Gain
on
early — — -0.09 —
extin…
of
debt(…
Loss
(gain)
in
fair
value 0.06 -0.05 0.05 -0.02
of
public
equity
secur…
Other… 0.07 0.03 0.13 0.07
Tax
relat… 0.11 0.03 0.19 0.02
items…
Total
non-r…
and $ 0.41 $ 1.53 $ 1.23 $ 1.62
other
unusu…
items
(1) In 2026, the Company announced it would place Kemerton Train 1 into care and
maintenance. As a result, and in addition to other previously announced
restructuring actions, the Company recorded charges of $8.0 million and $41.2
million in Restructuring charges and asset write-offs for the three and nine
months ended September 30, 2026, respectively. Due to the impact of valuation
allowances, this resulted in total after-tax charges of $8.0 million and $41.4
million, or $0.06 and $0.30 per share, for the three and nine months ended
September 30, 2026, respectively. The three and nine months ended September 30,
2025 included certain restructuring costs and adjustments to previously recorded
costs related to restructuring actions originally entered into in 2024. As a
result, the Company recorded charges of $2.3 million and $5.7 million in
Restructuring charges and asset write-offs, respectively, and a loss of $0.1
million in Other income, net for the nine months ended September 30, 2025. Due
to the impact of valuation allowances, this resulted in total after-tax gains of
$2.2 million and $3.0 million, or $0.02 and $0.03 per share, for the three and
nine months ended September 30, 2025, respectively.
(2) Primarily costs related to consulting fees for a project associated with the
Company’s strategic cost savings initiative, recorded in Selling, general and
administrative expenses for the three months and nine months ended September 30,
2026 were $11.6 million and $30.6 million ($0.08 and $0.22 per share, with no
income tax effect due to the impact of valuation allowances), respectively.
(3) Non-cash goodwill impairment charge of $181.1 million ($175.7 million or
$1.49 per share after income tax expense) recorded during the three and nine
months ended September 30, 2025 related to our Refining Solutions reporting unit
within our previously reported Ketjen reportable segment.
(4) Costs related to the acquisition, integration and divestitures for various
significant projects, recorded in Selling, general and administrative expenses
for the three and nine months ended September 30, 2026 were $4.2 million and
$6.1 million ($0.03 and $0.04 per share, with no income tax effect due to the
impact of valuation allowances), respectively, and for the three and nine months
ended September 30, 2025 were $1.9 million and $5.1 million ($1.5 million and
$4.0 million after income taxes, or $0.01 and $0.03 per share), respectively.
12
(5) During the first quarter of 2026, the Company divested its controlling
ownership interest in its Refining Solutions business and its full 50% ownership
interest in the Eurecat joint venture. As a result of these transactions, the
Company recorded a net loss of $52.7 million ($0.39 per share, with no income
tax effect due to the impact of valuation allowances), representing the proceeds
received less the carrying value as of the transaction dates.
(6) During the first quarter of 2026, the Company completed a $1.3 billion debt
tender and redemption, resulting in a gain on early extinguishment of debt of
$12.5 million ($0.09 per share, with no income tax effect due to the impact of
valuation allowances), representing the repurchase of this debt at a discount,
partially offset by tender premiums and redemption fees.
(7) Losses resulting from the net change in fair value of investments in public
equity securities, recorded in Other income, net for the three and nine months
ended September 30, 2026 of $7.9 million and $6.8 million ($0.06 and $0.05 per
share, with no income tax effect due to the impact of valuation allowances),
respectively, and for the three and nine months ended September 30, 2025 gains
of $8.0 million and $3.1 million ($6.2 million and $2.5 million after income
taxes, or $0.05 and $0.02 per share), respectively.
(8) Other adjustments for the three months ended September 30, 2026 included
amounts recorded in:
• Cost of goods sold - $11.4 million of expenses related to non-routine labor
and compensation related costs that are outside normal compensation
arrangements.
• Selling, general and administrative expenses - $1.0 million of expenses
related to other costs outside of our regular operations.
After income taxes, these losses totaled $9.0 million, or $0.07 per share.
Other adjustments for the three months ended September 30, 2025 included amounts
recorded in:
• Selling, general and administrative expenses - $2.0 million of severance
expenses not related to a restructuring plan, $1.4 million of expenses related
to the redemption of preferred equity in a Grace subsidiary, $1.4 million
related to the write-off of certain fixed assets and $1.3 million of expenses
related to certain historical legal matters, partially offset by $1.9 million of
gains from the sale of assets not part of our production operations.
• Other income, net - $0.5 million gain resulting from the adjustment of
indemnification related to a previously disposed business.
After income taxes, these net losses totaled $3.0 million, or $0.03 per share.
Other adjustments for the nine months ended September 30, 2026 included amounts
recorded in:
• Cost of goods sold - $15.3 million of expenses related to non-routine labor
and compensation related costs that are outside normal compensation
arrangements.
• Selling, general and administrative expenses - $3.9 million charge for a non-
income tax audit of a facility no longer controlled by the Company and a net
loss of $1.6 million primarily related to other costs outside of our regular
operations.
• Other income, net - Primarily related to $3.4 million of charges for asset
retirement obligations at a site not part of our operations and a net loss of
$1.5 million primarily driven by indemnification charges related to the Eurecat
S.A. joint venture sale, partially offset by a $3.9 million gain resulting from
the adjustment of indemnification related to previously disposed businesses.
After income taxes, these net losses totaled $17.0 million, or $0.13 per share.
Other adjustments for the nine months ended September 30, 2025 included amounts
recorded in:
• Selling, general and administrative expenses - $13.3 million of gains from the
sale of assets not part of our production operations, partially offset by $3.8
million of severance expenses not related to a restructuring plan, $1.9 million
of expenses related to certain historical legal matters, $1.4 million of
expenses related to the redemption of preferred equity in a Grace subsidiary and
$1.4 million related to the write-off of certain fixed assets.
• Other income, net - $38.0 million loss resulting from the redemption of
preferred equity in a Grace subsidiary and $1.9 million of charges for asset
retirement obligations at a site not part of our operations, partially offset by
$19.8 million of income from PIK dividends of the preferred equity in a Grace
subsidiary prior to redemption and a $2.4 million gain primarily resulting from
the adjustment of indemnification related to previously disposed businesses.
After income taxes, these net losses totaled $8.4 million, or $0.07 per share.
13
(9) Included in Income tax expense (benefit) for the three and nine months ended
September 30, 2026 are discrete net tax expenses of $15.3 million and $25.9
million, or $0.11 and $0.19 per share, respectively, primarily related to the
impact of foreign tax reserves and foreign return to provisions.
Included in Income tax expense (benefit) for the three and nine months ended
September 30, 2025 are discrete net tax expenses of $3.9 million, or $0.03 per
share, and $1.9 million, or $0.02 per share, respectively, primarily related to
the impact of foreign tax reserves, the change in the Company’s assertion over
book and tax basis differences of a foreign entity and changes in certain
foreign tax rates.
See below for a reconciliation of the adjusted effective income tax rate, the
non-GAAP financial measure, to the effective income tax rate, the most directly
comparable financial measure calculated and reporting in accordance with GAAP
(in thousands, except percentages).
Income
(loss)
before
income
taxes and
Three equity in
months net Income
ended income of tax Effective
Septemb… unconsol… expense income
30, 2026 investme… (benefit) tax rate
──────────────────────────────────────────────────────────────────────────────
As $ 133,218 $ 21,900 16.4 %
reported
Non-rec…
other
unusual
and 45,245 -11,612
non-ope…
pension
and OPEB
items
As $ 178,463 $ 10,288 5.8 %
adjusted
Three
months
ended
Septemb…
30, 2025
As $ -239,146 $ -30,565 12.8 %
reported
Non-rec…
other
unusual
and 181,424 1,210
non-ope…
pension
and OPEB
items
As $ -57,722 $ -29,355 50.9 %
adjusted
Nine
months
ended
Septemb…
30, 2026
As $ 829,062 $ 137,413 16.6 %
reported
Non-rec…
other
unusual
and 150,098 -20,301
non-ope…
pension
and OPEB
items
As $ 979,160 $ 117,112 12.0 %
adjusted
Nine
months
ended
Septemb…
30, 2025
As $ -267,083 $ -449 0.2 %
reported
Non-rec…
other
unusual
and 202,805 11,789
non-ope…
pension
and OPEB
items
As $ -64,278 $ 11,340 -17.6 %
adjusted
See below for the calculation of operating cash flow conversion and a
reconciliation of free cash flow, a non-GAAP measure, to net cash provided by
operating activities, the most directly comparable financial measure calculated
and reporting in accordance with GAAP. The Company defines operating cash flow
conversion as Net cash provided by operating activities from the statement of
cash flows divided by adjusted EBITDA, which is a non-GAAP measure. A
reconciliation of adjusted EBITDA, the non-GAAP financial measure, from net
income (loss) attributable to Albemarle Corporation, the most directly
comparable financial measure calculated and reporting in accordance with GAAP,
is provided in the above tables (in thousands, except percentages).
14
Three Months Ended
September 30, 2026
───────────────────────────────────────────────────────────────────
Free cash flow:
Net cash provided by operating $ 405,796
activities
Less: Capital expenditures -80,374
Free cash flow $ 325,422
Operating cash flow conversion:
Net cash provided by operating $ 405,796
activities
Adjusted EBITDA $ 645,510
Operating cash flow conversion 63 %
See below for the calculation of the net debt to adjusted EBITDA ratio
(“Consolidated Leverage Ratio,” as defined in our credit agreement), a non-GAAP
financial measure, for the twelve months ended September 30, 2026 (in thousands,
except ratio).
Twelve Months Ended
September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Adjusted EBITDA $ 2,436,165
Equity in net income of non-Windfield
Holdings unconsolidated investments 11,099
(net
of tax)
Dividends received from non-Windfield 4,691
Holdings unconsolidated investments
Consolidated Windfield-Adjusted $ 2,451,955
EBITDA
Total Albemarle Corporation long-term $ 1,881,352
debt (as reported)
Unamortized discount and debt
issuance 41,954
costs
49% Windfield Holdings debt 776,111
Off-balance sheet obligations and 96,900
other
Consolidated Windfield-Adjusted
Funded $ 2,796,317
Debt
Less Cash 1,845,999
Less 49% Windfield Holdings cash 126,925
Consolidated Windfield-Adjusted
Funded $ 823,393
Net Debt
Consolidated Leverage Ratio 0.3
15