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CHARLOTTE, N.C., Nov. 5, 2025 /PRNewswire/ -- Albemarle Corporation (NYSE: ALB), a global leader in providing essential elements for mobility, energy, connectivity and health, today announced its results for the third quarter ended September 30, 2025. Third Quarter 2025 and Recent Highlights (Unless otherwise stated, all percentage changes represent year-over-year comparisons) Net sales of $1.3 billion, including volume growth in Energy Storage (+8%) and Ketjen (+8%).Net loss of ($161) million, or ($1.72) per diluted share attributable to common shareholders; Adjusted loss of ($0.19) per diluted share attributable to common shareholders excludes a non-cash goodwill impairment charge associated with Ketjen.Adjusted EBITDA of $226 million; up 7% due to improved fixed cost absorption and on-going cost savings.On track to achieve full-year run-rate cost and productivity improvements of approximately $450 million, surpassing initial $300 to $400 million target.Third quarter cash from operations of $356 million was up 57%, or $128 million; year-to-date cash from operations of $894 million was also up 29%, or $202 million, due to cost and productivity improvements, cash management actions and a customer prepayment received in January.Reducing full-year 2025 capital expenditures outlook to approximately $600 million.Expect to achieve positive free cash flow(a) of $300 to $400 million for the full year 2025.Enhancing full-year outlook considerations; enterprise results are expected to be towards the higher end of the previously published $9/kg scenario ranges given year-to-date financial performance and lithium market pricing and better-than-expected Energy Storage volumes.On October 27, announced agreements to sell stakes in Ketjen and the Eurecat joint venture for combined pre-tax proceeds of approximately $660 million. "Our team delivered strong third quarter results, with adjusted EBITDA up year-over-year despite lower lithium prices, demonstrating the strength of our business and disciplined execution," said Kent Masters, Chairman and CEO. "Our successful implementation of cost and productivity improvements and reduced capital expenditures coupled with our recent portfolio management actions underscore our commitment to long-term value and enhanced financial flexibility. We remain confident in our full-year outlook and ability to navigate dynamic markets." Third Quarter 2025 Results Net sales for the third quarter of 2025 were $1.3 billion compared to $1.4 billion for the prior-year quarter, a decline of 3% driven primarily by lower pricing in Energy Storage, offset by higher volumes in Energy Storage and Ketjen. Adjusted EBITDA of $226 million increased by $14 million from the prior-year quarter as lower input costs and on-going cost reduction efforts offset reduced lithium pricing. Net loss attributable to Albemarle of ($161) million decreased year-over-year by $908 million, due primarily to restructuring charges recorded in the prior-year period. The effective income tax rate for the third quarter of 2025 was 12.8% compared to (9.4)% in the same period of 2024. On an adjusted basis, the effective income tax rates were 50.9% and (12.9)% for the third quarters of 2025 and 2024, respectively, with the change primarily due to geographic income mix and the impact of tax valuation allowances in Australia and China. Energy Storage Results Energy Storage net sales for the third quarter of 2025 were $709 million, a decrease of $59 million, or 8%, due to lower pricing (-16%). Volumes were up 8% due to higher spodumene sales, record production from our integrated conversion facilities and inventory reductions. Adjusted EBITDA of $124 million decreased $19 million, as lower input costs and on-going cost reduction efforts mostly offset lower lithium pricing. Specialties Results Specialties net sales for the third quarter of 2025 were $345 million, an increase of $3 million, or 1%, as foreign exchange benefits offset slightly lower volumes (-1%) due to strength in demand for flame retardants in electrical and electronics applications offset by weakness in automotive end-markets. Adjusted EBITDA of $76 million increased $19 million versus the prior-year quarter due to decreased manufacturing costs related to productivity initiatives. Ketjen Results Ketjen net sales for the third quarter of 2025 were $254 million, up 4% compared to the prior-year quarter as higher volumes (+8%) were partially offset by lower prices (-5%). Adjusted EBITDA of $34 million decreased $2 million, driven by lower prices and higher input costs partially offset by higher volumes and favorable clean fuels technology joint venture equity earnings. 2025 Outlook Considerations Total Corporate Outlook Considerations Albemarle is enhancing its prior full-year outlook considerations for the enterprise and Energy Storage, which are based on observed lithium market price scenarios. Full-year 2025 results are expected to be towards the higher end of the previously published $9/kg scenario ranges given year-to-date financial performance and lithium market pricing and better-than-expected Energy Storage volumes. Ketjen and Specialties outlook considerations are unchanged. The table below reflects expected outcomes for the total company based on recently observed lithium market price scenarios, and are unchanged from the prior quarter. Ranges are based on variation in sales volume and mix, including a projected increase in Energy Storage sales volumes of 0% to 10% in 2025 compared to 2024. All three scenarios assume flat market pricing flowing through Energy Storage's current contract book. Scenarios also assume spodumene pricing averages 10% of the lithium carbonate equivalent (LCE) price, while other costs are assumed to be constant. Energy Storage Market Price Scenarios Specialties and Ketjen Outlook Considerations Specialties outlook reflects volume growth in key end markets led by pharma, automotive and oilfield, partially offset by weakness in building and construction. Ketjen outlook assumes strong fluidized catalytic cracking (FCC) volume offset by lower clean fuel technologies (CFT) volume due to order timing. Other Corporate Outlook Considerations Albemarle expects its 2025 capital expenditures to be approximately $600 million, down 65% from $1.7 billion in 2024. This level of spending reflects in part a timing impact and a continued prioritization on sustaining existing assets and resources. Reduced corporate costs reflect cost savings and foreign exchange gains to date. Cash Flow and Capital Deployment Cash from operations of $894 million in the first nine months of 2025 increased $202 million compared to the prior-year period due to cost and productivity improvements, cash management actions and a customer prepayment received in January. We now expect to achieve positive free cash flow of approximately $300 to $400 million for the full year 2025 given year-to-date financial performance and lithium market pricing and better-than-expected Energy Storage volumes. Capital expenditures of $434 million in the first nine months of 2025 decreased by $903 million versus the prior-year period, reflecting the impact of decisions that stopped or slowed spending and the completion of capacity expansions in Energy Storage and Specialties. We are reducing our full-year 2025 capital expenditures outlook to approximately $600 million. Balance Sheet and Liquidity As of September 30, 2025, Albemarle had estimated liquidity of approximately $3.5 billion, including $1.9 billion of cash and cash equivalents, $1.5 billion available under our revolver and $107 million available under other credit lines. Total debt was $3.6 billion, representing a net debt to adjusted EBITDA rati
