Albemarle (ALB) Beats Earnings Estimates Despite Falling Lithium Prices

Albemarle Corporation Reports Strong Q2 Results Amidst Falling Lithium Prices

Key Points:

Albemarle Corporation (NYSE: ALB) reported adjusted earnings of $0.11 per share for Q2, surpassing analysts’ expectations of -$0.78 per share.
Revenue for the quarter reached $1.33 billion, exceeding the consensus estimate of $1.22 billion, but down 7% year-over-year due to declining lithium prices.
The Energy Storage division, which includes lithium, saw sales decline by 13.5% to $717.7 million, driven by a 28% drop in average pricing, despite a 15% increase in volumes.
In contrast, revenue from the Specialties segment grew by 5.1% to $351.6 million, fueled by a 6% rise in volume.
Albemarle achieved its target of $400 million in cost and productivity savings, helping mitigate the impact of the lithium market challenges.
The company lowered its capital spending forecast for 2025 to between $650 million and $700 million.
Management maintained its full-year guidance, projecting 2025 revenue between $4.9 billion and $5.2 billion, with adjusted EBITDA expected to range from $0.8 billion to $1.0 billion based on a lithium price assumption of $9/kg.Overall, Albemarle’s ability to exceed earnings expectations while navigating a challenging market reflects its operational resilience.

ALB opened at $69.53, hit a high of $74.20, dropped to a low of $65.40, and closed at $67.85