10-Q · May 6, 2026
Albemarle Corporation reported Q1 2026 net sales of $1.428 billion, a 33% year-over-year increase, accompanied by a significant net income jump from $41 million to $319 million, resulting in a diluted EPS of $2.34. The…
Earnings analysis · 10-Q
ALB earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Albemarle delivered positive third-quarter EPS of $2.15 and free cash flow of $325.4 million, with a strong year-over-year recovery and Energy Storage growth of 57.9%. However, EPS and free cash flow declined…
Read full summary
Albemarle delivered positive third-quarter EPS of $2.15 and free cash flow of $325.4 million, with a strong year-over-year recovery and Energy Storage growth of 57.9%. However, EPS and free cash flow declined sequentially from $3.52 and $638 million, respectively, amid lower lithium pricing, higher-cost inventory, and a delayed Talison CGP3 ramp. Management raised Specialties EBITDA expectations to $350-$375 million while reducing FY2026 capital expenditure expectations to $300-$350 million, leaving the overall outlook highly dependent on lithium prices.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.15
- Segment
- Energy Storage: revenue increased 57.9% year over year; adjusted EBITDA increased 351.2%.
- Segment
- Specialties: FY2026 adjusted EBITDA outlook raised to $350-$375 million from $275-$325 million.
What stood out
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EPS recovered year over year
Reported diluted EPS was $2.15, versus $3.52 in the prior quarter and negative $1.72 in the year-ago quarter, indicating a sequential decline but substantial year-over-year recovery.
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Positive but lower free cash flow
Free cash flow was $325.4 million, down from $638 million in the prior quarter but above the negative $129 million reported in the year-ago comparable quarter.
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Energy Storage drove growth
Energy Storage revenue increased 57.9% year over year, while adjusted EBITDA increased 351.2%, making it the primary reported growth driver.
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Specialties outlook raised
FY2026 Specialties adjusted EBITDA outlook was raised to $350-$375 million from $275-$325 million.
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Capital spending forecast reduced
FY2026 capital expenditure guidance was reduced to $300-$350 million from approximately $500 million, implying lower planned spending and capital intensity.
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Limited variable-rate exposure
Variable-rate borrowings were $17.8 million at September 30, 2026, representing 1% of total debt, limiting near-term interest-rate exposure; a 100-basis-point rate increase would raise annualized interest expense by $0.2 million.
What to watch
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Lithium price sensitivity remains high
Lower lithium pricing and higher-cost inventory were identified as sources of sequential fourth-quarter pressure, while total-company outcomes remain highly dependent on lithium prices across a $4.1-$7.8 billion net-sales scenario range.
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Ramp-up and execution risk
The company cited a delayed Talison CGP3 ramp, creating volume and execution risk. The filing also identifies potential future earnings and cash-flow effects from anticipated transactions exposed to currency movements.
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Material foreign-exchange exposure
Foreign-currency forward contracts had aggregate notional value of $2.4 billion. A 10% U.S. dollar appreciation would increase their fair value by approximately $111.6 million, while a 10% depreciation would decrease it by approximately $116.9 million; underlying transaction effects could materially affect future earnings and cash flow.
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Expanded currency hedging activity
The company entered into cross-currency swaps with an aggregate notional amount of €1 billion in June 2026, indicating increased foreign-exchange hedging activity and exposure to net-investment translation effects.
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No material risk-factor update
The 10-Q states there were no material changes to previously disclosed risk factors, but the filing reports $17.8 million of variable-rate borrowings and a $0.2 million annualized interest sensitivity for a 100-basis-point rate increase.
Management's outlook
The 10-Q does not provide explicit company-wide EPS or revenue guidance. Previously disclosed quantitative outlook included FY2026 Specialties adjusted EBITDA of $350-$375 million, raised from $275-$325 million; FY2026 capital expenditures were reduced to $300-$350 million from approximately $500 million. Total-company outcomes remained dependent on lithium prices, with scenarios of $4.1-$7.8 billion of net sales and $0.9-$4.4 billion of adjusted EBITDA.
Earlier filings 4
10-K · February 11, 2026
Albemarle reports a portfolio organized into three segments (Energy Storage, Specialties and Ketjen) and is executing a material portfolio re‑shaping: it signed a definitive agreement on October 25, 2025 to divest…
10-Q · November 5, 2025
Albemarle reported Q3 net sales of $1,307,829,000 and a GAAP diluted loss per common share of $(1.72). Gross margin recovered to 9.0% and operating margin improved to -16.6%, both materially better than year-ago…
10-Q · November 6, 2024
Albemarle reported Q3 net sales of $1,354,692 (in thousands) and a GAAP diluted loss per share of $(9.45), driven by a large operating loss of $(1,108,830) (in thousands) and $828,146 (in thousands) of restructuring…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.