Albemarle (ALB)
NYSE:ALB
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Albemarle
(NYSE:ALB)
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Rating:57Neutral
Price Target:
$188.00
▲(8.27% Upside)
Action:ReiteratedDate:03/26/26
The score is held back primarily by weak reported financial performance through the downturn and loss-driven valuation (negative P/E), despite signs of recovery in cash flow. Offsetting this, the technical trend is constructive with price above key moving averages, and the earnings call highlighted meaningful cost-out progress, strong 2025 free cash flow, and liquidity improvements, though results remain highly sensitive to lithium pricing and execution factors.
Positive Factors
Energy Storage Volume & EBITDA Growth
Sustained double‑digit Energy Storage volume growth and materially higher segment EBITDA indicate durable demand capture in battery supply chains. Higher volumes support fixed‑cost absorption, strengthen long‑term margin scalability, and underpin recurring cash generation if EV and stationary storage adoption continues to expand.
Negative Factors
Earnings Deterioration & Prior Net Loss
A sharp cyclical downturn produced a large GAAP loss and steep revenue decline, weakening returns and reserve cushions. Restoring sustainable profitability requires multi‑year price and volume improvement or structural margin gains; absent that, capital reinvestment and shareholder returns may remain constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Energy Storage Volume & EBITDA Growth
Sustained double‑digit Energy Storage volume growth and materially higher segment EBITDA indicate durable demand capture in battery supply chains. Higher volumes support fixed‑cost absorption, strengthen long‑term margin scalability, and underpin recurring cash generation if EV and stationary storage adoption continues to expand.
Read all positive factors
Albemarle (ALB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.46B
Dividend Yield1.1%
Average Volume (3M)1.84M
Price to Earnings (P/E)―
Beta (1Y)1.51
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. Volume1,437,957
30 Day Avg. Volume1,841,328
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/Revenue4.31
Enterprise Value/Gross Profit32.97
Enterprise Value/Ebitda29.54
Forecast
1Y Price Target
$192.40Price Target Upside10.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)8.08
Revenue Forecast (FY)$5.80B
Albemarle Business Overview & Revenue Model
Company Description
Albemarle 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, lit...
How the Company Makes Money
Albemarle makes money primarily by selling specialty chemical products, with lithium as its largest revenue driver. The company generates revenue through (1) Lithium: sales of lithium compounds and related products (e.g., lithium carbonate and lit...
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.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).
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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).
Read all positive updates
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
Income Statement
32
Negative
Balance Sheet
56
Neutral
Cash Flow
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
173.64
Price Trends
170.80
Positive
158.02
Positive
119.94
Positive
Market Momentum
1.64
Positive
51.03
Neutral
25.11
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 173.64 is above the 20-day moving average (MA) of 171.80, above the 50-day MA of 170.80, and above the 200-day MA of 119.94, indicating a bullish trend. The MACD of 1.64 indicates Positive momentum. The RSI at 51.03 is Neutral, neither overbought nor oversold. The STOCH value of 25.11 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 47 risk factors in its most recent earnings report. Albemarle reported the most risks in the "Production" 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 | $8.49B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
62 Neutral | $22.12B | 33.47 | 10.92% | ― | -10.07% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $15.14B | -6.32 | -15.50% | 2.88% | -5.32% | -1108.29% | |
59 Neutral | $23.75B | -18.77 | -6.63% | 12.78% | -19.65% | -157.13% | |
57 Neutral | $20.46B | -32.60 | -5.13% | 1.10% | -23.92% | 90.47% | |
50 Neutral | $5.34B | ― | -9.02% | ― | -3.59% | -126.16% |
* Basic Materials Sector Average
ALB
Albemarle
173.64
117.24
207.88%
EMN
Eastman Chemical
74.25
-1.40
-1.85%
LYB
LyondellBasell
73.72
21.14
40.21%
SQM
Sociedad Quimica Y Minera SA
82.12
46.33
129.45%
WLK
Westlake Corporation
118.37
30.64
34.92%
AVTR
Avantor
7.90
-7.66
-49.23%
Albemarle Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Albemarle Amends Credit Facility, Extends Maturity to 2028
Positive
Mar 25, 2026
On March 19, 2026, Albemarle Corporation and its lenders executed a third amendment to the company’s amended and restated credit agreement originally dated October 28, 2022. The amendment extends the credit facility’s maturity to at le...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Albemarle Divests Ketjen Stake to Streamline Portfolio
Positive
Mar 6, 2026
On March 2, 2026, Albemarle completed the previously announced sale of its 51% controlling stake in Ketjen Corporation’s refining catalyst solutions business to an affiliate of KPS Capital Partners, while retaining a 49% minority interest an...
Business Operations and StrategyExecutive/Board Changes
Albemarle Adds Independent Directors to Strengthen Board Governance
Positive
Mar 4, 2026
On February 26, 2026, Albemarle’s board appointed Michelle T. Collins and Mark R. Widmar as independent directors, with the company disclosing the move in a press release dated March 2, 2026. Collins joined the Audit Finance and Governance ...
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.