Albemarle Corporation reported "net sales of $1.4 billion, up 33% year-over-year" for the first quarter of 2026.
The company delivered adjusted EBITDA of $664 million for the quarter, reflecting higher pricing and volume in Energy Storage and Specialties.
First quarter net sales for Energy Storage increased 70% year-over-year, while the Specialties segment saw net sales increase 12% year-over-year.
The company reported diluted earnings of $2.34 per share for the quarter.
For the first quarter, the company generated $346 million of operating cash flow and $248 million of free cash flow.
During the first quarter, the company repaid $1.3 billion of debt following the successful sales of the Eurecat joint venture and a controlling stake in Ketjen.
Management noted they "ended the first quarter with a net debt-to-EBITDA leverage ratio of 1x". Albemarle achieved $40 million in cost and productivity improvements year-to-date.
Operations at Wodgina and Greenbushes are operating in line with expectations, and the CGP3 investment at Greenbushes is operational and ramping as planned. At the Salar de Atacama, the company has initiated the environmental permitting process for a commercial direct lithium extraction project, and the Kings Mountain project recently received federal mining permits.
For the full year 2026, Albemarle is raising its outlook for the Specialties segment, guiding for net sales between $1.3 billion and $1.5 billion, and an adjusted EBITDA outlook between $225 million and $275 million.
The company is maintaining its total company outlook for 2026 across all three price scenarios despite global supply chain disruptions related to the Middle East.
Management estimates that the unmitigated full year cost impact of these supply chain disruptions would be approximately $70 million to $90 million.
The company continues to expect full year capital expenditures of $550 million to $600 million and remains on track to hit its full year 2026 cost and productivity improvements target of $100 million to $150 million.
