ALB Specialty Chemicals
Albemarle Corporation
Albemarle produces lithium compounds for batteries and bromine-based specialty chemicals, selling to about 1,900 customers in roughly 70 countries. Its lithium comes from a 49% stake in Australia's Greenbushes mine (through the Windfield joint venture), the Wodgina mine, and brine in Chile's Salar de Atacama and Nevada, and its earnings swing with lithium prices because most contracts are index-referenced. FY2025 revenue was $5.1 billion — down from $9.6 billion in 2023 — and Albemarle lost $511 million; it cut capital spending to $590 million from $2.2 billion in 2023 and sold its refining catalysts business in early 2026.
Last updated
Analysis last edited: October 4, 2026 · Financial data fetched: October 4, 2026 14:16 (SEC EDGAR) · Source 10-K filed: February 11, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- ALBEMARLE CORP
- Headquarters
- CHARLOTTE, NC
- Incorporated in
- Virginia
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: ALB
- Industry
- Specialty Chemicals
- CIK
- 915913
- Website
- https://www.albemarle.com/ ↗
Workforce (as of FY2025 year-end)
Employees
7,800
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 32–37 days after quarter end (Nov 5, 2025; Nov 6, 2024; Nov 1, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 30–45 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Aug 5, 2026 (+36 days) | Aug 5, 2026 10-Q (+36 days) |
| Q1 FY2026 | Mar 31, 2026 | May 6, 2026 (+36 days) | May 6, 2026 10-Q (+36 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 11, 2026 (+42 days) | Feb 11, 2026 10-K (+42 days) |
| Q3 FY2025 | Sep 30, 2025 | Nov 5, 2025 (+36 days) | Nov 5, 2025 10-Q (+36 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 30, 2025 (+30 days) | Aug 4, 2025 10-Q (+35 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 30, 2025 (+30 days) | Apr 30, 2025 10-Q (+30 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 12, 2025 (+43 days) | Feb 12, 2025 10-K (+43 days) |
| Q3 FY2024 | Sep 30, 2024 | Nov 6, 2024 (+37 days) | Nov 6, 2024 10-Q (+37 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 31, 2024 (+31 days) | Jul 31, 2024 10-Q (+31 days) |
| Q1 FY2024 | Mar 31, 2024 | May 1, 2024 (+31 days) | May 1, 2024 10-Q (+31 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 14, 2024 (+45 days) | Feb 15, 2024 10-K (+46 days) |
| Q3 FY2023 | Sep 30, 2023 | Nov 1, 2023 (+32 days) | Nov 1, 2023 10-Q (+32 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Energy Storage
Battery-grade lithium
Examples: Lithium hydroxide, lithium carbonate
For EV and grid storage batteries.
Specialties
Bromine and lithium specialties
Examples: Fire safety compounds, organolithium reagents
Specialty chemicals for electronics, mobility, and pharmaceuticals.
Ketjen
Catalysts
Examples: Hydroprocessing and FCC catalysts, organometallic co-catalysts
Refining catalysts now in a 49%-owned joint venture.
Descriptions are from the FY2025 Form 10-K's Item 1.
04
Recent strategic focus
FY2025 developments from the 10-K, and 2026 events from 8-Ks.
Selling refining catalysts
Albemarle sold its 50% of Eurecat to Axens in January 2026 and 51% of Ketjen's refining business to a KPS affiliate in March 2026, expecting about $547M in cash from the Ketjen sale.
Source: Form 10-K (FY2025) Item 1; 8-K filed 2026-03-06
Cost cuts
Capital spending fell to $590M in 2025 from $1.68B in 2024, after Albemarle halted Kemerton expansion and idled plants.
Source: Form 10-K (FY2025) MD&A and Note 25
New CEO
The board named Ragnar Udd, a mining and resources executive, to succeed Kent Masters as CEO by February 1, 2027.
Source: 8-K filed 2026-09-03
Capex ÷ D&A (FY2025)
0.90x
Roughly matches depreciation — mostly maintenance/replacement
formulacapital expenditures ÷ depreciation & amortization
e.g.$590M ÷ $659M = 0.90x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
1.0%
formularesearch & development expense ÷ revenue × 100
e.g.$51M ÷ $5,143M × 100 = 1.0%
Where the money goes, over time
Unit: $M. Capex went from $954M in FY2021 to $590M in FY2025
- Capex
- R&D
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$5.14B
As reported in the 10-K
Revenue CAGR (4 years)
+11.5%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($5,143M ÷ $3,328M) ^ (1÷4) − 1 = 11.5%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
-7.1%▼caution
-31.1pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$-367M ÷ $5,143M × 100 = -7.1%
ROE (FY2025)
-5.2%▼caution
5-year average: 8.5%
As reported in the 10-K
P/B (FY2025 end)
—
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
—
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +11.5% a year over 4 years (strong growth)
From $3.33B in FY2021 to $5.14B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 24.0% → -7.1%
How much operating profit is left per $100 of revenue. It moved -31.1 points over 4 years — pricing power, cost control, and product mix all show up here.
- ▲
Equity ratio is 58.2% (a high level of financial stability)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▼
Free cash flow was positive in 2 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 8.5% over 5 years (latest: -5.2%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
Energy Storage
Lithium carbonate, hydroxide, and chloride for batteries in electric vehicles and grid storage, plus other uses. Lithium is sourced from the Greenbushes and Wodgina hard-rock mines in Western Australia and from brine in Chile and Nevada.
01 what it draws on
Inputs & resources
- 49% of Windfield (owner of the Greenbushes mine)
- 50% of the MARBL joint venture (Wodgina mine)
- Brine ponds at the Salar de Atacama and Silver Peak, Nevada
02 what it does
Activities
- Mining and converting lithium into battery-grade compounds
03 who it serves
Customers
- Battery and cathode makers and automakers, mainly in China, South Korea, and Japan
04 how money comes in
How it earns
- Sales under contracts that are mostly index-referenced and variable-priced
- Equity income from Windfield
Energy Storage: how it makes money
- Revenue $2.71B (−10%) and Adjusted EBITDA $697M (non-GAAP) in FY2025.
- Equity income from unconsolidated investments in the segment fell to $185M from $1.82B in 2023 as lithium prices dropped.
- Albemarle stopped building Kemerton Trains 3 and 4 and put Kemerton Trains 1 and 2 and the Chengdu conversion plant into care and maintenance.
Specialties
Bromine-based fire safety and other chemicals, and specialized lithium products, for energy, mobility, electronics, pharmaceuticals, and agriculture. Bromine comes from brine in Arkansas and, through the 50%-owned Jordan Bromine Company, from the Dead Sea.
01 what it draws on
Inputs & resources
- Arkansas brine rights
- 50% of Jordan Bromine Company
02 what it does
Activities
- Producing bromine derivatives and lithium specialties
- Recycling lithium by-products for customers
03 who it serves
Customers
- Electronics, automotive, pharmaceutical, agriculture, and oilfield customers
04 how money comes in
How it earns
- Product sales under supply contracts
Specialties: how it makes money
- Revenue $1.37B (+3%) and Adjusted EBITDA $276M (+21%) in FY2025.
- Albemarle expects lower Specialties sales and profit in 2026 from lower lithium specialties pricing.
Ketjen (being divested)
Refinery catalysts (clean fuels and fluidized catalytic cracking) and performance catalyst solutions. Albemarle sold 51% of the refining business to a KPS Capital Partners affiliate in March 2026, keeping 49% of the new joint venture and the performance catalyst business.
01 what it draws on
Inputs & resources
- Catalyst plants and technology
02 what it does
Activities
- Making refinery catalysts and organometallics
03 who it serves
Customers
- Oil refiners and polymer producers
04 how money comes in
How it earns
- Product sales
Ketjen (being divested): how it makes money
- Revenue $1.07B and Adjusted EBITDA $150M in FY2025.
- A $181M goodwill impairment and $246M asset impairment were recorded on the refining business in 2025 after the sale agreement.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Energy Storage
2,710 (53%)profit 697 · margin 25.7%
Specialties
1,366 (27%)profit 276 · margin 20.2%
Ketjen
1,066 (21%)profit 150 · margin 14.1%
Source: Form 10-K (FY2025) — MD&A and Note 25, Segment and Geographic Area Information Profit is segment adjusted EBITDA, a non-GAAP measure that includes Albemarle's share of joint venture earnings. Corporate costs aren't shown.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
China — 39% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
China
2,026 (39%)United States
890 (17%)South Korea
790 (15%)Japan
360 (7%)Other
1,077 (21%)
Source: Form 10-K (FY2025) — Note 25, Segment and Geographic Area Information Net sales by country of final shipment destination. Sales to South Korea fell from $3.1B in 2023 and to Japan from $1.4B.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Energy Storage sells lithium mostly under index-referenced, variable-priced contracts, so its revenue follows market lithium prices up and down. Specialties and Ketjen compete for supply contracts on performance, quality, price, and terms.
Lithium supply contracts
Energy Storage: $2.7B (53% of FY2025 revenue)
Typical term: Mostly index-referenced and variable-priced
Increases or decreases in lithium market prices could materially affect results.
Specialty chemical and catalyst supply contracts
Specialties $1.4B and Ketjen $1.1B
Typical term: Awarded on product performance, quality, price, and contract terms
09
Alliances & capital ties
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Joint venture
Windfield Holdings
49%-owned joint venture that owns Talison Lithium and the Greenbushes mine in Western Australia; Albemarle buys lithium concentrate from it.
Joint venture
MARBL Lithium Joint Venture
50%-owned unincorporated joint venture owning the Wodgina hard-rock lithium mine in Western Australia.
Joint venture
Jordan Bromine Company
50%-owned consolidated joint venture since 1999 in Safi, Jordan, processing bromine sourced from the Dead Sea.
Joint venture
KPS Capital Partners (ChemCat)
In March 2026 Albemarle sold 51% of Ketjen's refining business to an entity affiliated with KPS, keeping a 49% interest in the resulting joint venture.
Source: Form 8-K (filed 2026-03-06) — completion of Ketjen sale
10
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
About 1,900 customers in roughly 70 countries, including battery and cathode makers, automakers, electronics, pharmaceutical, agriculture, and refining customers.
Named by the company
No customer is named.
What the filings disclose
- No customer exceeded 10% of net sales in 2024 or 2025; one Energy Storage customer was about 12% in 2023. (Form 10-K (FY2025), Note 25)
- By destination, 2025 sales were $2.03B to China, $890M to the U.S., $790M to South Korea, and $360M to Japan. (Form 10-K (FY2025), Note 25)
Suppliers
Lithium concentrate from its own joint ventures; bromine from Arkansas and the Dead Sea; catalyst raw materials bought at market prices.
Named by the company
- Windfield Holdings (Talison Lithium) — 49%-owned joint venture; Albemarle buys lithium concentrate from the Greenbushes mine.Form 10-K (FY2025) — Item 1
- MARBL Lithium Joint Venture — 50%-owned; supplies concentrate from Wodgina.Form 10-K (FY2025) — Item 1
What the filings disclose
- Most Ketjen raw materials (such as kaolin, aluminum, and metals) are readily available from numerous independent suppliers. (Form 10-K (FY2025), Item 1)
11
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Albemarle's 10-K names major competitors in each business, and describes the lithium market as highly competitive, growing rapidly, and seeing aggressive expansion by existing and new players.
Competitors named in the 10-K
Lithium compounds (Energy Storage)
- SQM (Sociedad Química y Minera de Chile)site ↗
- Tianqi Lithiumsite ↗
- Ganfeng Lithiumsite ↗
- Rio Tintosite ↗
- Pilbara Minerals (PLS)site ↗
- Teslasite ↗
Plus a large number of additional Chinese companies.
Specialties (bromine)
Plus producers in India and China.
Ketjen — clean fuels catalysts
Peer group the company chose
2026 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Chemicals and metals & mining companies with revenue of about 0.4x–2.5x Albemarle's, global operations, and value-added processing. Revised for 2026 to fit Albemarle's smaller, lithium-price-depressed revenue: Dow and Freeport-McMoRan were removed and Cabot, H.B. Fuller, Avient, and Ashland added.
- Air Productssite ↗
- FMCsite ↗
- Celanesesite ↗
- Chemourssite ↗
- Huntsmansite ↗
- Cortevasite ↗
- Mosaicsite ↗
- Newmontsite ↗
- DuPontsite ↗
- Olinsite ↗
- Eastman Chemicalsite ↗
- Westlakesite ↗
- Cabotsite ↗
- H.B. Fullersite ↗
- Avientsite ↗
- Ashlandsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
12
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Recent portfolio moves have been divestitures of the catalysts business rather than acquisitions.
Mar 2026 (sale)
51% of Ketjen's refining solutions business — sold to ChemCat (KPS Capital Partners affiliate)
About $547M in cash expected (including $22M of Ketjen cash)
Since divestedRefinery catalysts (clean fuels and FCC).
- Stated purpose (company)
- Albemarle keeps the performance catalyst solutions business and a 49% stake in the new joint venture.
Source: Form 8-K (filed 2026-03-06)
Jan 2026 (sale)
50% of Eurecat — sold to Axens
Not disclosed in the 10-K
Since divestedA catalyst services joint venture in the Ketjen segment.
- Stated purpose (company)
- Part of the Ketjen divestiture.
Source: Form 10-K (FY2025) — Item 1
Figures as disclosed in the FY2025 10-K and 8-Ks.
13
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 3,328 | 7,320 | 9,617 | 5,378 | 5,143 |
| Operating income | 798 | 2,470 | 252 | -1,777 | -367 |
| Pretax income | 134 | 2,433 | 247 | -1,764 | -552 |
| Net income (attributable) | 124 | 2,690 | 1,573 | -1,179 | -511 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 120.0% | 31.4% | -44.1% | -4.4% |
| Operating margincalcoperating income ÷ revenue × 100 | 24.0% | 33.7% | 2.6% | -33.0% | -7.1% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 3.7% | 36.7% | 16.4% | -21.9% | -9.9% |
| Balance sheet ($M) | |||||
| Total assets | 10,974 | 15,457 | 18,271 | 16,610 | 16,374 |
| Total equity | 5,806 | 8,191 | 9,665 | 10,200 | 9,781 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 2,394 | 3,217 | 4,167 | 3,516 | 3,194 |
| Equity ratio | 51.3% | 51.6% | 51.5% | 60.0% | 58.2% |
| ROE | 2.2% | 39.5% | 18.1% | -12.2% | -5.2% |
| Cash flow ($M) | |||||
| Operating CF | 344 | 1,908 | 1,327 | 688 | 1,282 |
| Investing CF | -667 | -1,423 | -2,565 | -1,585 | -146 |
| Financing CF | 50 | 612 | 624 | 1,242 | -834 |
| Free cash flowcalccash flow from operations − capital expenditures | -609 | 646 | -828 | -993 | 692 |
| Cash and equivalents | 439 | 1,499 | 890 | 1,192 | 1,618 |
| Per share & other | |||||
| EPS ($) | 1.06 | 22.84 | 13.36 | -11.20 | -5.76 |
| BVPS ($) | 48.07 | 68.13 | 80.20 | 84.74 | 80.99 |
| Dividend per share ($) | 1.56 | 1.58 | 1.60 | 1.61 | 1.62 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 147.2% | 6.9% | 12.0% | — | — |
| P/E (x) | 220.5 | 9.5 | 10.8 | — | — |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 27.8 | 9.8 | 29.8 | — | — |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 4.86 | 3.18 | 1.80 | — | — |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
14
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
-2.2%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$-367M × (1 − 21%) ÷ $13,345M × 100 = -2.2%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
10.37%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $9.78B ÷ ($9.78B + $3.19B) = 75.4%
e.g.Debt weight: $3.19B ÷ ($9.78B + $3.19B) = 24.6%
e.g.WACC: 12.1% × 75.4% + 6.5% × (1 − 21%) × 24.6% = 10.37%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 10.37% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 1.47 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 12.08%
- Cost of debt
- 6.50%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 75% : 25%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 10.37%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 1.47 (price-derived adjusted beta. Raw β 1.70, R² 0.22, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 1.697 + 0.33 = 1.467
termsβ (beta)
Period 2024-04-05–2026-10-02, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 1.47 × 5.5% = 12.1%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Not enough data for this calculation (FY2025): it needs positive free cash flow, a fiscal year-end P/E, and a positive enterprise value.
16
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.45x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -10.9%
A small share of profit rests on accounting estimates.
- ✓
Days sales outstanding: 61 → 42 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-11
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$594M ÷ $5,143M × 365 = 42 days
17
Strengths & weaknesses
Strengths
1. World-class lithium resources
A 49% stake in Greenbushes, half of Wodgina, and brine operations in Chile and Nevada; Albemarle cites its world-class resources with reliable and consistent supply as a basis for staying a leader.
Evidence: Form 10-K (FY2025) Item 1
2. Cash flow despite low prices
Operating cash flow rose to $1.28B in 2025 while capital spending fell to $590M, turning free cash flow positive after two negative years.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025) Note 25
3. Profitable specialties business
Specialties grew Adjusted EBITDA 21% to $276M in 2025, a steadier contributor than lithium.
Evidence: Form 10-K (FY2025) MD&A
4. Broad customer base
About 1,900 customers in roughly 70 countries; no customer exceeded 10% of sales in 2024 or 2025.
Evidence: Form 10-K (FY2025) Item 1 and Note 25
Weaknesses
1. Earnings tied to lithium prices
Revenue fell from $9.6B (FY2023) to $5.1B (FY2025) as lithium prices dropped, and Albemarle posted net losses of $1.18B in 2024 and $511M in 2025.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025) MD&A
2. Idle capacity
Expansion at Kemerton was stopped and several conversion plants were put into care and maintenance, after heavy spending in 2022–2024.
Evidence: Form 10-K (FY2025) MD&A
3. Asian customer concentration
China, South Korea, and Japan took about 62% of 2025 sales by destination.
Evidence: Form 10-K (FY2025) Note 25
18
What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
—
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
—
(Operating CF − capex) ÷ market cap
1. Leverage to a lithium recovery
Because contracts track index prices, higher lithium prices flow through to revenue and Windfield's equity income; Albemarle earned $2.7B in 2022 at high prices.
- What has to hold
- EV and grid storage demand keeps growing and lithium prices recover.
- The other side
- The 10-K describes aggressive supply expansion, including by automakers and Chinese producers, which can keep prices low.
Evidence: Form 10-K (FY2025) Item 1 and MD&A; SEC EDGAR XBRL
2. Dividend maintained through the downturn
Dividends per share edged up every year from $1.56 to $1.62 over FY2021–FY2025, even as Albemarle lost money in 2024 and 2025.
- What has to hold
- Cash flow covers the dividend.
- The other side
- Free cash flow was negative in 2023 and 2024; the dividend is now covered mainly because capital spending was cut.
Evidence: SEC EDGAR XBRL
P/E isn't shown for FY2024–FY2025 because of net losses. Albemarle's beta is high (1.70), reflecting lithium price swings.
19
Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
21.8x
$1.62B vs. $74M
Interest coverage (operating income ÷ interest expense)
-1.8x
−$367M vs. $208M
Free cash flow ÷ dividends paid
3.6x
$692M vs. $191M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -44.1% in FY2024 ($9.62B → $5.38B) | Not yet, as of FY2025 |
| Operating income | -805.3% in FY2024 ($252M → −$1.78B) | Not yet, as of FY2025 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Spending cut quickly
Capital spending fell from $2.15B (2023) to $590M (2025), and operating cash flow recovered to $1.28B.
Source: Form 10-K (FY2025), Note 25; SEC EDGAR XBRL
Low-cost resources
Interests in Greenbushes and Wodgina and brine operations in Chile and Nevada give it diversified sources of lithium.
Source: Form 10-K (FY2025), Item 1
Non-lithium earnings
Specialties (mainly bromine) and the retained catalyst business add earnings from end markets beyond batteries, such as electronics, pharmaceuticals, and agriculture.
Source: Form 10-K (FY2025), MD&A
Exposure to price swings
Index-referenced contracts mean a further fall in lithium prices hits revenue directly.
Source: Form 10-K (FY2025), MD&A · See Contract structure
20
Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
Geopolitical risk highlights
- [3]Trade and Chinese demand
- 1Raw materials & energy
Lithium price volatility
- Company disclosure (summarized from the 10-K)
- Most Energy Storage contracts are index-referenced, so changes in lithium market prices could materially affect results.
- Company’s stated mitigation
- Cost cuts, reduced capital spending, and shifting production from idled sites to other facilities.
- This site’s assessment
- Impact High / Likelihood High
- 2Competition & technology shift
New lithium supply
- Company disclosure (summarized from the 10-K)
- The lithium market is characterized by aggressive expansion by existing and new players, including automakers, traders, junior miners, and large diversified miners, and many Chinese producers.
- Company’s stated mitigation
- Competing on product quality and service as pricing becomes index-based.
- This site’s assessment
- Impact High / Likelihood Med
- 3Geopolitical
Trade and Chinese demand
- Company disclosure (summarized from the 10-K)
- About 39% of 2025 sales went to China; tariffs and trade policy could affect Specialties and Ketjen, though Albemarle expects minimal direct tariff exposure in Energy Storage.
- Company’s stated mitigation
- Most China production is sold into China or other Asian countries.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Governance & quality
CEO transition
- Company disclosure (summarized from the 10-K)
- Ragnar Udd is to succeed Kent Masters as CEO by February 1, 2027, with Masters becoming Executive Chair.
- Company’s stated mitigation
- Announced succession plan.
- This site’s assessment
- Impact Low / Likelihood Med
21
What to watch going forward
- Lithium prices — Albemarle expects higher Energy Storage sales and profit in 2026 if prices stay at early-2026 levels.
- Whether idled plants restart or stay in care and maintenance.
- Use of proceeds from the Ketjen and Eurecat sales.
- Strategy under incoming CEO Ragnar Udd.
22
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 4, 2026 · Financial data fetched: October 4, 2026 14:16 (SEC EDGAR) · Source 10-K filed: February 11, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Albemarle Corporation’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.