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Albemarle (ALB)
NYSE:ALB
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Albemarle
(NYSE:ALB)
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Rating:60Neutral
Price Target:
$188.00
▲(5.22% Upside)
Action:ReiteratedDate:02/12/26
ALB scores highest on earnings-call momentum (strong 2025 cash generation, cost-out execution, capex discipline, and added liquidity from portfolio actions), partially offset by weak recent financial-statement profitability and data reliability issues. Technicals are moderately supportive on longer-term trend but neutral-to-soft near term, while valuation is constrained by loss-driven negative P/E and a modest dividend yield.
Positive Factors
Strong cash generation and capex discipline
Albemarle delivered durable cash-generation improvements in 2025: near $700M free cash flow and very high EBITDA-to-cash conversion. Combined with a ~65% YoY CapEx cut and ongoing cost saves, this underpins liquidity, funds deleveraging, and creates optionality for reinvestment over the medium term.
Leading position and rising lithium demand
Albemarle’s sizeable Energy Storage volumes and updated bullish demand outlook reflect structural EV and stationary storage trends. Sustained volume growth supports market share, long-term contract coverage (~40% salts under long‑term agreements), and capacity leverage, which bolsters recurring revenue potential.
Portfolio optimization improving liquidity
Proceeds from recent and expected divestitures plus a $1.6B year‑end cash position materially strengthen Albemarle’s liquidity. This structural boost enhances financial flexibility to reduce leverage, fund targeted capex, absorb idling costs, and support strategic investments without relying on unstable market financing.
Negative Factors
Sharp profitability deterioration and reporting gaps
Albemarle experienced a severe earnings downcycle with large GAAP losses and negative returns that materially weaken internal capital generation and retained earnings. Additionally, incomplete or inconsistent recent income statement items reduce confidence in trend assessment and planning over the medium term.
High sensitivity to lithium pricing and working capital
A structurally commodity‑linked business exposes Albemarle to price volatility: lithium price swings and supply returns (notably potential Chinese capacity) can rapidly change margins and cash flow. Coupled with working capital that can approach ~25% of sales, cash generation remains inherently lumpy and riskier over the medium term.
Idling costs and Specialty segment headwinds
Maintaining idled assets creates a recurring cash drag and restart economics that require materially higher conversion pricing to be viable. Concurrent weakness and margin compression in Specialties reduce diversification benefits and constrain overall margin resilience, pressuring medium‑term profitability.
Albemarle (ALB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.06B
Dividend Yield1.1%
Average Volume (3M)3.02M
Price to Earnings (P/E)―
Beta (1Y)1.72
Revenue Growth-23.92%
EPS Growth90.47%
CountryUS
Employees8,300
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.53
Shares Outstanding117,847,220
10 Day Avg. Volume2,205,400
30 Day Avg. Volume3,015,997
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)1.75
Price to Sales (P/S)3.24
P/FCF Ratio24.04
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue4.42
Enterprise Value/Gross Profit33.85
Enterprise Value/Ebitda30.33
Forecast
1Y Price Target
$189.44Price Target Upside6.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)7.95
Revenue Forecast (FY)$5.76B
Albemarle Business Overview & Revenue Model
Company DescriptionAlbemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Lithium, Bromine, and Catalysts. The Lithium segment offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and lithium specialties; and reagents, such as butyllithium and lithium aluminum hydride for use in lithium batteries for consumer electronics and electric vehicles, high performance greases, thermoplastic elastomers for car tires, rubber soles, plastic bottles, catalysts for chemical reactions, organic synthesis processes in the areas of steroid chemistry and vitamins, life sciences, pharmaceutical industry, and other markets. It also provides cesium products for the chemical and pharmaceutical industries; zirconium, barium, and titanium products for pyrotechnical applications that include airbag initiators; technical services for the handling and use of reactive lithium products; and lithium-containing by-products recycling services. The Bromine segment offers bromine and bromine-based fire safety solutions; specialty chemicals, including elemental bromine, alkyl and inorganic bromides, brominated powdered activated carbon, and other bromine fine chemicals for use in chemical synthesis, oil and gas well drilling and completion fluids, mercury control, water purification, beef and poultry processing, and other industrial applications; and other specialty chemicals, such as tertiary amines for surfactants, biocides, and disinfectants and sanitizers. The Catalysts segment provides hydroprocessing, isomerization, and akylation catalysts; fluidized catalytic cracking catalysts and additives; and organometallics and curatives. The company serves the energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, and crop protection markets. Albemarle Corporation was founded in 1887 and is headquartered in Charlotte, North Carolina.
How the Company Makes MoneyAlbemarle generates revenue through the sale of its specialty chemical products across its three business segments. The Lithium segment, which has seen significant growth due to the increasing demand for electric vehicles and renewable energy storage, is a major revenue driver for the company. The company has established long-term supply agreements with key players in the electric vehicle market, further enhancing its revenue potential. The Bromine Specialties segment earns income from the production of bromine and related compounds used in diverse industries, while the Catalysts segment benefits from sales of catalyst solutions that improve the efficiency of refining operations. Albemarle's strategic partnerships and investments in lithium production facilities, as well as its focus on innovation in specialty chemicals, also contribute to its overall earnings and market position.
Albemarle Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating potential shifts in strategic focus or market demand.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating potential shifts in strategic focus or market demand.
Data provided by:
The Fly
The FlyAlbemarle Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial progress narrative: solid revenue and adjusted EBITDA growth, strong Energy Storage volume performance, major cost/productivity gains (~$450M) and disciplined capital spending driving substantial free cash flow (~$700M) and an improved liquidity position (ending cash $1.6B plus ~$660M expected proceeds). Management also raised the medium-term lithium demand outlook and outlined further cost targets. Offsetting risks include a GAAP loss driven by noncash charges, margin compression (~150 bps) from FX and Specialties headwinds, temporary disruption at JBC, idling costs and ongoing expense to maintain Kemerton in care and maintenance (~$100M), and the sensitivity of cash generation to sustained lithium pricing and working capital timing. Overall, the highlights — clear cash generation, cost-out achievements, stronger demand outlook, and portfolio optimization actions — materially outweigh the notable but manageable lowlights and execution risks.Q4-2025 Updates
Positive Updates
Q4 Revenue and Volume Growth
Q4 net sales of $1.40B, up 16% year-over-year, with double-digit volume growth across segments (Energy Storage volumes +17% and Ketjen volumes +13% in the quarter).
Improved Adjusted EBITDA and Energy Storage Strength
Q4 adjusted EBITDA of $269M, up 7% year-over-year. Energy Storage posted full-year volumes of 235k tons LCE (up 14% YoY), Q4 net sales +23% YoY and Energy Storage adjusted EBITDA up 25% YoY, supported by higher lithium pricing and productivity gains.
Strong Full-Year Results and Cash Generation
Full-year 2025 net sales $5.1B and adjusted EBITDA $1.1B. Generated nearly $700M of positive free cash flow in 2025 and achieved EBITDA-to-operating-cash conversion of 117% (underlying conversion at or above long-term 60%-70% range after adjusting for one-time items).
Significant Cost & Productivity Improvements and CapEx Discipline
Achieved approximately $450M of run-rate cost and productivity improvements in 2025 and reduced capital expenditures by ~65% year-over-year. Targeting an additional $100M–$150M of cost and productivity improvements in 2026 and planning stable/flat capital spending for 2026.
Portfolio Optimization and Near-Term Liquidity Boost
Closed sale of Eurecat stake (Jan 2026) and expect to close sale of majority stake in Ketjen in Q1 2026; combined proceeds projected to be ~ $660M pretax, improving financial flexibility and enabling deleveraging and corporate priorities.
Updated, Stronger Lithium Demand Outlook
Increased lithium demand outlook: 2026 global demand now expected at 1.8M–2.2M tons (up 15%–40% YoY) and 2030 demand revised up ~10% versus prior forecast to 2.8M–3.6M tons, driven by robust stationary storage and continued EV growth.
Operational Actions to Improve Margins
Decision to idle Kemerton Train 1 is expected to be accretive to adjusted EBITDA beginning in Q2 2026 with no impact to sales volumes; company expects to meet hydroxide demand via other plants or tolling while preserving optionality to restart.
Ketjen Turnaround Momentum
Ketjen delivered strong Q4 performance: net sales +14% YoY, adjusted EBITDA +39% YoY (full-year adjusted EBITDA +15%), marking the third consecutive year of adjusted EBITDA improvements under the turnaround plan.
Negative Updates
GAAP Loss and Adjusted EPS Impacted by Charges
Reported GAAP net loss of $3.87 per diluted share in Q4. After excluding charges (notably tax-related items and a noncash impairment tied to the expected Ketjen transaction), adjusted diluted loss per share was $0.53.
Margin Compression and FX Headwinds
Adjusted EBITDA margin decreased ~150 basis points year-over-year driven by unfavorable foreign exchange and weaker Specialties margins; corporate results were impacted by unfavorable FX hedging largely from a stronger AUD and CNY.
Specialties Segment Weakness and Lower Pricing
Specialties Q4 net sales +5% YoY but adjusted EBITDA declined ~6% YoY due to margin compression in lithium specialties. 2026 Specialties outlook projects net sales of $1.2B–$1.4B and adjusted EBITDA $170M–$230M (mid-teens margins), reflecting expected year-over-year declines due to soft demand in oil & gas/elastomers and lower lithium specialties pricing.
Operational Disruption at JBC
Temporary production interruption at the JBC joint venture in Jordan following flooding caused estimated lost revenue of $10M–$15M (site has returned to full operating rates).
Kemerton Idling Costs and Restart Uncertainty
Idling Kemerton Train 1 will incur approximately $100M in cash costs to place the asset in care and maintenance and there are ongoing costs to maintain an idled, restart-ready state; restart economics require materially higher Western conversion pricing to bridge a reported ~$4–$5 per kg cost gap versus China.
Working Capital and Cash Timing Headwinds in 2026
An $88M deferred revenue recognition related to a 2025 customer prepayment will bolster EBITDA but not cash in 2026, and rising prices could create working capital headwinds; company notes working capital typically sits near ~25% of sales.
Equity Income and Inventory Timing Effects
Equity income, net of FX, decreased year-over-year due to a Greenbushes inventory timing lag; inventory drawdowns that aided 2025 sales contributed to a flatter 2026 volume outlook for Energy Storage (company expects roughly flat salts sales volumes year-over-year in 2026).
Market & Execution Risks Persist
Lithium specialties pricing has started to adjust lower from peak levels, and the company acknowledges that future cash generation and free cash flow are highly sensitive to sustained lithium pricing and market dynamics; potential Chinese capacity returns (estimated 30k–50k tons) could re-enter supply.
Company Guidance
Albemarle’s guidance and updates stressed strong 2025 results and a cautious, scenario-driven 2026 outlook: Q4 net sales were $1.4B (+16% YoY) and adjusted EBITDA $269M (+7%), with full‑year sales $5.1B and adjusted EBITDA $1.1B; Energy Storage volumes reached 235,000 t LCE (+14% YoY) with Q4 Energy Storage EBITDA up 25%. Management set 2026 demand scenarios using three LCE price cases (~$10/kg full‑year 2025 avg, ~$20/kg January 2026, ~$30/kg 2021–2025 avg), expects ~40% of salts volumes sold under long‑term agreements, and raised 2026 global lithium demand to 1.8–2.2M t (+15–40% YoY) and 2030 demand to 2.8–3.6M t (≈+10% vs prior). Financial actions include ~ $450M of run‑rate cost/productivity savings achieved in 2025, a target of an additional $100–150M of savings in 2026, CapEx reduced 65% YoY with flat CapEx targeted in 2026, nearly $700M of 2025 free cash flow, year‑end cash of $1.6B, 117% EBITDA‑to‑operating cash conversion (underlying ≥60–70%), expected ~$660M pretax proceeds from Eurecat/Ketjen transactions (Q1), recognition of $88M deferred revenue and ~ $100M cash to idle Kemerton (idling accretive to adjusted EBITDA from Q2), and company‑level margin upside to the low‑40% and mid‑50% ranges under the $20 and $30 LCE scenarios.Albemarle Financial Statement Overview
Summary
Underlying results reflect a down-cycle: a steep 2024 revenue decline and large net loss, with mixed cash generation (positive operating cash flow but negative 2024 free cash flow). Leverage appears manageable based on 2021–2024 trends, but negative returns and inconsistencies/incompleteness in the latest-year financial statement line items reduce confidence in the most recent trend.Income Statement
Results deteriorated sharply after a strong 2022–2023 cycle. Revenue fell materially in 2024 (down ~44% year over year) and profitability swung from healthy positive margins in 2022–2023 to significant losses in 2024 (net loss of ~$1.18B) with very weak gross profit. The latest annual period (2025) shows net losses continuing, while revenue is shown as zero, which limits comparability and suggests the most recent income statement data is incomplete.32
Negative
Balance Sheet
Leverage looks manageable overall, with debt-to-equity generally in a moderate range in recent years (roughly ~0.36–0.45 in 2021–2024, improving from higher leverage in 2020). However, profitability pressure is showing up in returns, with negative return on equity in 2024. The 2025 balance sheet also shows total debt as zero alongside reduced equity, which is not consistent with the prior trend and makes the latest-year balance sheet less reliable for trend assessment.56
Neutral
Cash Flow
Cash generation is mixed. Operating cash flow remained positive in 2024 (~$702M), but free cash flow was meaningfully negative (about -$984M), indicating heavy cash outflows (likely investment/capex) despite weaker earnings. The latest annual period (2025) shows a sharp rebound to solid operating cash flow (~$1.28B) and positive free cash flow (~$692M), but given the simultaneous revenue/earnings data gaps, the strength of the rebound should be viewed cautiously.49
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.14B | 5.38B | 9.62B | 7.32B | 3.33B |
| Gross Profit | 671.62M | 60.24M | 1.20B | 3.09B | 1.01B |
| EBITDA | 754.37M | -45.07M | 671.07M | 2.80B | 786.66M |
| Net Income | -510.63M | -1.18B | 1.57B | 2.69B | 123.67M |
Balance Sheet | |||||
| Total Assets | 16.37B | 16.61B | 18.27B | 15.46B | 10.97B |
| Cash, Cash Equivalents and Short-Term Investments | 1.62B | 1.19B | 889.90M | 1.50B | 439.27M |
| Total Debt | 3.30B | 3.62B | 4.28B | 3.32B | 2.52B |
| Total Liabilities | 6.59B | 6.41B | 8.61B | 7.27B | 5.17B |
| Stockholders Equity | 9.53B | 9.96B | 9.41B | 7.98B | 5.63B |
Cash Flow | |||||
| Free Cash Flow | 692.47M | -992.65M | -827.96M | 646.20M | -609.41M |
| Operating Cash Flow | 1.28B | 687.88M | 1.33B | 1.91B | 344.26M |
| Investing Cash Flow | -146.01M | -1.58B | -2.56B | -1.42B | -666.59M |
| Financing Cash Flow | -834.19M | 1.24B | 623.91M | 611.89M | 50.21M |
Albemarle Technical Analysis
Positive
178.67
Price Trends
165.41
Positive
136.88
Positive
104.00
Positive
Market Momentum
4.87
Negative
53.81
Neutral
57.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALB, the sentiment is Positive. The current price of 178.67 is above the 20-day moving average (MA) of 171.53, above the 50-day MA of 165.41, and above the 200-day MA of 104.00, indicating a bullish trend. The MACD of 4.87 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 57.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALB.
Albemarle Risk Analysis
Albemarle disclosed 53 risk factors in its most recent earnings report. Albemarle reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Albemarle Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $8.62B | 18.42 | 8.07% | 5.33% | -3.33% | -19.59% | |
63 Neutral | $20.99B | 41.84 | 9.87% | ― | -10.07% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $21.06B | -31.04 | -5.24% | 1.10% | -23.92% | 90.47% | |
60 Neutral | $18.53B | -24.59 | -7.03% | 12.78% | -19.65% | -157.13% | |
55 Neutral | $13.48B | -9.00 | -15.56% | 2.88% | -5.32% | -1108.29% | |
50 Neutral | $6.17B | -11.64 | -9.20% | ― | -3.59% | -126.16% |
* Basic Materials Sector Average
ALB
Albemarle
178.67
110.14
160.72%
EMN
Eastman Chemical
75.51
-14.77
-16.36%
LYB
LyondellBasell
57.52
-9.31
-13.93%
SQM
Sociedad Quimica Y Minera SA
76.30
38.99
104.50%
WLK
Westlake Corporation
105.38
-0.48
-0.45%
AVTR
Avantor
9.05
-6.82
-42.97%
Albemarle Corporate Events
Executive/Board Changes
Albemarle Board Member Dean Seavers Resigns
Neutral
Dec 12, 2025
On December 8, 2025, Dean L. Seavers resigned from the Board of Directors of Albemarle Corporation, effective December 12, 2025. His departure is not due to any disagreements with the company’s operations, policies, or practices, suggesting a smooth transition without internal conflicts.
The most recent analyst rating on (ALB) stock is a Buy with a $152.00 price target. To see the full list of analyst forecasts on Albemarle stock, see the ALB Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.