Key Highlights

  • Third quarter net sales were USD 1.553 billion against an estimate of USD 1.52 billion, with pricing up 39%.
  • EPS was USD 2.58 against an estimate of USD 2.53, while GAAP diluted EPS to common shareholders was USD 2.15.
  • Adjusted EBITDA was USD 645.5 million, with Energy Storage at USD 559.8 million and Specialties at USD 98.7 million.
  • Capital expenditures for 2026 are guided to USD 300 million to USD 350 million, against USD 589.8 million in 2025.

Albemarle Corporation (NYSE:ALB) guided to capital expenditures of USD 300 million to USD 350 million for 2026 as it reported third quarter net sales of USD 1.553 billion. That compares with an estimate of USD 1.52 billion and USD 1.308 billion a year earlier. EPS was USD 2.58 against an estimate of USD 2.53, and GAAP diluted EPS attributable to common shareholders was USD 2.15, against a loss of USD 1.72 in the prior-year quarter.

Guidance and Management Priorities

Management projects higher Energy Storage net sales and profitability for 2026 on increased average lithium pricing, and it guided sales Volume to be relatively flat to slightly down because of a fire at the Talison joint venture's third chemical grade plant in Greenbushes. For Specialties, management projects net sales and profitability above 2025 levels on improved bromine pricing and modest volume growth.

On costs, the company said it met its initial USD 400 million per year cost and productivity target from the 2024 review. It stopped construction of Kemerton Trains 3 and 4 and has placed, or is placing, Kemerton Trains 1 and 2 and the Chengdu conversion facilities into care and maintenance. Additional charges of USD 60 million to USD 80 million, mainly decommissioning costs for Kemerton Train 1, are guided across the rest of 2026 and 2027.

The Quarter in Detail

Net sales rose 19%. The company attributed a USD 512.8 million increase to higher pricing in Energy Storage and Specialties, a USD 82.8 million decrease to lower Energy Storage volume, and a USD 207.3 million decrease to the absence of Refining Solutions, which was sold on March 2, 2026. Gross Profit was USD 300.7 million, or 19.4% of net sales, against USD 117.6 million, or 9.0%.

Equity in Net Income of unconsolidated investments was USD 205.4 million against USD 60.6 million, which the company tied mainly to higher pricing at the Windfield joint venture. Interest and financing expenses were USD 27.8 million against USD 51.0 million. Net income attributable to Albemarle was USD 296.8 million, against a loss of USD 160.7 million a year earlier that included a USD 181.1 million Goodwill Impairment charge.

Segments, Cash and Debt

Energy Storage net sales were USD 1.119 billion against USD 708.8 million, and Specialties net sales were USD 388.6 million against USD 345.0 million. Adjusted EBITDA for Energy Storage was USD 559.8 million against USD 124.1 million, and for Specialties it was USD 98.7 million against USD 75.5 million.

Cash from operations over nine months was USD 1.5 billion against USD 893.8 million. Uses of cash included about USD 1.3 billion for Debt Redemption and tender payments and USD 143.2 million in common dividends. Cash and equivalents were USD 1.8 billion at September 30, with estimated Liquidity of about USD 3.4 billion. On October 29, the company entered a new USD 1.5 billion revolving Credit agreement maturing October 29, 2031.

Reference Points for Investors

Third quarter net sales of USD 1.553 billion sit alongside adjusted EBITDA of USD 645.5 million, EPS of USD 2.58 and GAAP diluted EPS of USD 2.15.

The company named a short list of markers: 2026 capital spending of USD 300 million to USD 350 million, additional Kemerton charges of USD 60 million to USD 80 million, and no significant long-term debt maturities before the fourth quarter of 2028. It also named repayments on an interest-free USD 300.0 million loan, which begin December 31, 2026 in five equal annual installments. A Dividend of USD 0.41 per share was paid on October 1, 2026.