Q3 FY2026
Filed Nov 4, 2026Albemarle Reports Third Quarter 2026 Results
Q3 net sales increased 18.8%, adjusted EBITDA increased 186.1%, and the company reported positive net income, operating cash flow and free cash flow. Energy Storage pricing and Specialties pricing, volumes and productivity were the principal drivers, while the company raised its Specialties adjusted EBITDA outlook and lowered its capital-expenditure forecast.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $1.55B | – | 18.8 % |
| Q3 2026 gross profitGAAP | $300.7M | – | – |
| Q3 2026 operating income (loss)GAAP | $148.2M | – | – |
| Q3 2026 net incomeGAAP | $316.7M | – | – |
| Q3 2026 net income (loss) attributable to Albemarle CorporationGAAP | $296.8M | – | NM |
| Q3 2026 net income (loss) attributable to Albemarle Corporation common shareholdersGAAP | $255.1M | – | – |
| Q3 2026 diluted income (loss) per share attributable to common shareholdersGAAP | $ 2.15 | – | NM |
| Q3 2026 basic earnings (loss) per share attributable to common shareholdersGAAP | $ 2.16 | – | – |
| Q3 2026 adjusted net income attributable to Albemarle Corporationnon-GAAP | $353.6M | – | – |
| Q3 2026 adjusted diluted income (loss) per share attributable to common shareholdersnon-GAAP | $ 2.58 | – | NM |
| Q3 2026 adjusted EBITDAnon-GAAP | $645.5M | – | 186.1 % |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 41.6 % | – | – |
| Q3 2026 effective income tax rateGAAP | 16.4 % | – | – |
| Q3 2026 adjusted effective income tax ratenon-GAAP | 5.8 % | – | – |
| Q3 2026 cash from operating activitiesGAAP | $405.8M | – | – |
| Q3 2026 capital expendituresGAAP | $80.37M | – | – |
| Q3 2026 free cash flownon-GAAP | $325.4M | – | – |
| Q3 2026 operating cash flow conversionnon-GAAP | 63 % | – | – |
| Nine months ended September 30, 2026 net salesGAAP | $4.73B | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | $1.39B | – | – |
| Nine months ended September 30, 2026 operating income (loss)GAAP | $834.6M | – | – |
| Nine months ended September 30, 2026 net income attributable to Albemarle CorporationGAAP | $1.10B | – | – |
| Nine months ended September 30, 2026 diluted earnings (loss) per share attributable to common shareholdersGAAP | $ 8.03 | – | – |
| Nine months ended September 30, 2026 adjusted diluted income (loss) per share attributable to common shareholdersnon-GAAP | $ 9.28 | – | – |
| Nine months ended September 30, 2026 adjusted EBITDAnon-GAAP | $2.17B | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $1.46B | – | – |
| Nine months ended September 30, 2026 capital expendituresGAAP | $250.8M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Energy Storage Q3 2026Higher pricing; sales volume declined year-over-year primarily due to timing events in the prior-year period, including inventory destocking and higher-than-usual spodumene shipments. | $1.12B | – | 57.9 % |
| Specialties Q3 2026Higher pricing (+10%) and volumes (+3%), primarily in bromine and derivatives, along with continued productivity improvements and proactive management of cost escalations driven by the conflict in the Middle East. | $388.6M | – | 12.7 % |
| Corporate and all other Q3 2026The refining catalyst business earnings are classified as equity income and included in Corporate following the sale of a controlling stake in Ketjen’s refining catalyst solutions business. | $45.69M | – | – |
| Energy Storage nine months ended September 30, 2026Adjusted EBITDA was $ 1,834,619 thousand, compared with $ 530,157 thousand in the prior-year period. | $3.29B | – | – |
| Specialties nine months ended September 30, 2026Adjusted EBITDA was $ 292,578 thousand, compared with $ 207,187 thousand in the prior-year period. | $1.17B | – | – |
| Corporate and all other nine months ended September 30, 2026Adjusted EBITDA was $ 40,224 thousand, compared with $ 91,905 thousand in the prior-year period. | $268.0M | – | – |
FY 2026E outlook
- Tax rateAdjusted effective tax rate: (50)% - 30%
- NoteTotal Corporate net sales under FY 2025 avg. observed market price case: $4.1 - $4.3 billion
- NoteTotal Corporate adjusted EBITDA under FY 2025 avg. observed market price case: $0.9 - $1.0 billion
- NoteTotal Corporate net sales under Q1 2026 avg. observed market price case: $5.7 - $6.0 billion
- NoteTotal Corporate adjusted EBITDA under Q1 2026 avg. observed market price case: $2.4 - $2.6 billion
- NoteTotal Corporate net sales under 2021-2025 avg. observed market price case: $7.5 - $7.8 billion
- NoteTotal Corporate adjusted EBITDA under 2021-2025 avg. observed market price case: $4.2 - $4.4 billion
- NoteEnergy Storage sales volumes: 225 to 235 kilotons lithium carbonate equivalent
- NoteEnergy Storage net sales under FY 2025 avg. observed market price case: $2.5 - $2.6 billion
- NoteEnergy Storage adjusted EBITDA under FY 2025 avg. observed market price case: $0.7 - $0.8 billion
- NoteEnergy Storage net sales under Q1 2026 avg. observed market price case: $4.0 - $4.2 billion
- NoteEnergy Storage adjusted EBITDA under Q1 2026 avg. observed market price case: $2.1 - $2.3 billion
- NoteEnergy Storage net sales under 2021-2025 avg. observed market price case: $5.9 - $6.1 billion
- NoteEnergy Storage adjusted EBITDA under 2021-2025 avg. observed market price case: $3.9 - $4.1 billion
- NoteSpecialties net sales: $1.4 - $1.6 billion
- NoteSpecialties adjusted EBITDA: $350 - $375 million
- NoteCapital expenditures: $300 - $350 million
- NoteDepreciation and amortization: $660 - $680 million
- NoteCorporate adjusted EBITDA (incl. FX, Ketjen equity income & PCS): ($20) - $20 million
- NoteInterest and financing expenses: $120 - $140 million
- NoteWeighted-average common shares outstanding (diluted): ~136 million
- NoteFourth quarter 2026 Energy Storage net sales and adjusted EBITDA are expected to decrease sequentially due to lower market pricing with steady sales volumes.
- NoteFourth-quarter Energy Storage margins are expected to decrease sequentially due to consumption of higher-cost spodumene inventory purchased in prior periods.
Capital returns
- Dividends paid to common shareholders for the nine months ended September 30, 2026: $ 143,160 thousand
- Dividends paid to mandatory convertible preferred shareholders for the nine months ended September 30, 2026: $ 125,058 thousand
- Dividends paid to noncontrolling interests for the nine months ended September 30, 2026: $ 56,069 thousand
What drove it
- Energy Storage adjusted EBITDA increased primarily due to improved lithium pricing, partially offset by higher price spodumene inventory processed in the quarter and increased Chilean commissions.
- Specialties benefited from higher volumes and favorable pricing in bromine and derivatives, productivity improvements, and proactive management of cost escalations.
- Talison’s Chemical Grade Plant 3 achieved 30-days of nameplate performance in September.
- The company delivered more than $150 million in year-to-date run-rate cost and productivity improvements.
- A cash dividend from the Talison joint venture partly offset timing of working capital changes.
- Global lithium demand was up 48% year-to-date through August, driven by electric vehicles and energy storage.
Concerns
- Energy Storage sales volume was 56 kT LCE, down (18.8) % from 69 kT LCE in Q3 2025.
- Fourth-quarter Energy Storage net sales and adjusted EBITDA are expected to decrease sequentially due to lower market pricing.
- Fourth-quarter Energy Storage margins are expected to decrease sequentially due to consumption of higher-cost spodumene inventory purchased in prior periods.
- The Talison CGP3 ramp was delayed by a fire that occurred on June 9.
- The Specialties fourth-quarter outlook assumes the impact of the ongoing situation in the Middle East.
- Q3 restructuring charges and asset write-offs were $ 8,038 thousand, and strategic cost savings initiative costs were $11.6 million.
What to watch
- Energy Storage sales volumes expected to be in the range of 225 to 235 kilotons lithium carbonate equivalent for FY 2026E.
- The flow-through of market pricing into Energy Storage contracts, including approximately 40% of salts volume, or one-third of total volumes, on long-term agreements.
- Consumption of higher-cost spodumene inventory in the fourth quarter.
- Execution of the $300 - $350 million FY 2026E capital-expenditure forecast and resequencing of early-stage projects.
- Specialties demand in semiconductors, oil and gas, flame retardants and pharmaceuticals, as well as bromine-market demand.
- The impact of the Talison CGP3 ramp following the June 9 fire delay.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 1,845,999 thousand
- Estimated liquidity as of September 30, 2026: approximately $3.4 billion, including $1.8 billion of cash and cash equivalents, $1.5 billion available under the revolver and $79 million available under other credit lines.
- Total debt as of September 30, 2026: $1.9 billion
- Net debt to adjusted EBITDA ratio as of September 30, 2026: approximately 0.3
- Nine-month net cash provided by operating activities: $ 1,462,037 thousand, compared with $ 893,782 thousand
- Nine-month capital expenditures: $ 250,781 thousand, compared with $ 434,416 thousand
- Year-to-date operating cash flow conversion as of September 30, 2026: 67%
- Free cash flow delivered year-to-date as of September 30, 2026: $1.2 billion
- Repayments of long-term debt and credit agreements for the nine months ended September 30, 2026: $ 1,331,231 thousand
Analysis
Albemarle reported a strong third quarter, with net sales of $ 1,553.1 million versus $ 1,307.8 million in Q3 2025 and adjusted EBITDA of $ 645.5 million versus $ 225.6 million. GAAP net income attributable to Albemarle Corporation was $ 296.8 million, compared with a loss of $ (160.7) million, while adjusted diluted income per share was $ 2.58 versus $ (0.19). Q3 gross profit was $ 300,724 thousand and operating income was $ 148,160 thousand, compared with gross profit of $ 117,610 thousand and an operating loss of $ (216,986) thousand a year earlier.
Energy Storage was the principal earnings contributor. Segment net sales were $ 1,118.8 million and adjusted EBITDA was $ 559.8 million, with the EBITDA increase attributed primarily to improved lithium pricing. Sales volume was 56 kT LCE versus 69 kT LCE, with the company attributing the decline to prior-year timing events. The fourth-quarter outlook calls for sequential declines in Energy Storage net sales, adjusted EBITDA and margins due to lower market pricing and consumption of higher-cost spodumene inventory.
Specialties delivered net sales of $ 388.6 million and adjusted EBITDA of $ 98.7 million. The company cited pricing growth of +10%, volume growth of +3%, favorable bromine and derivatives pricing, productivity gains and cost-escalation management. It raised Specialties adjusted EBITDA outlook to $350 - $375 million from $275 - $325 million. The outlook continues to assume modest volume growth in key end markets and steady automotive and petrochemical demand, while incorporating ongoing Middle East supply-chain impacts.
Cash generation improved materially. Q3 cash from operating activities was $ 405,796 thousand, free cash flow was $ 325,422 thousand and operating cash flow conversion was 63 %. For the first nine months, net cash provided by operating activities was $ 1,462,037 thousand and capital expenditures were $ 250,781 thousand. Albemarle reduced its FY 2026E capital-expenditure forecast to $300 - $350 million from approximately $500 million, citing capital-efficiency improvements and resequencing of early-stage projects.
Liquidity was approximately $3.4 billion as of September 30, 2026, including $1.8 billion of cash and cash equivalents. Total debt was $1.9 billion and the net debt to adjusted EBITDA ratio was approximately 0.3. The company also repaid $ 1,331,231 thousand of long-term debt and credit agreements in the first nine months. FY 2026 outcomes remain highly dependent on observed lithium market-price scenarios, with total-corporate adjusted EBITDA ranges from $0.9 - $1.0 billion to $4.2 - $4.4 billion across the disclosed price cases.
Management, verbatim
Albemarle delivered another solid quarter, reflecting disciplined execution across the enterprise.
Kent Masters, Chairman and CEO
In Specialties, improved pricing and sustained progress on cost and productivity initiatives support an additional increased outlook for the year.
Kent Masters, Chairman and CEO
We will continue to prioritize high-return organic growth by leveraging our advantaged resource base, capital spending efficiency, and financial flexibility.
Kent Masters, Chairman and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for Q3 financial metrics were not reported.
- Q3 gross margin was not reported as a line item.
- Q3 share repurchases were not reported.
- A single FY 2026E total-company revenue range was not provided; revenue outlook was presented under three observed lithium market-price scenarios.
- FY 2026E gross-margin guidance and operating-expense guidance were not provided.
- Previous-release outlook was not provided, so a formal comparison of actual results with prior guidance cannot be made.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.