Albemarle (NYSE: ALB) reported Q2 2026 revenue of $1.74 billion, up 31.1% year over year, while diluted EPS improved to $3.52 from a loss of $0.16. Higher lithium pricing drove a sharp recovery in Energy Storage profitability, and quarterly operating cash flow reached $710 million, although dividend timing and non-recurring working-capital benefits contributed.
Core earnings data
For the quarter ended June 30, adjusted EBITDA grew substantially faster than revenue as higher pricing and cost-productivity measures lifted margins. Gross margin increased to approximately 33.9% from 14.8%, while adjusted EBITDA margin expanded to 49.2% from 25.3%.
Year-over-year comparisons include the prior-period results of Ketjen’s refining catalyst solutions business, even though Albemarle sold a 51% stake on March 2, 2026.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Revenue | $1,743.3 million | $1,330.0 million | +31.1% |
| Gross profit and margin | $590.3 million / approximately 33.9% | $196.9 million / approximately 14.8% | Profit approximately +200%; margin +19.1 points |
| Operating income and margin | $452.9 million / approximately 26.0% | $47.5 million / approximately 3.6% | Income approximately +853%; margin +22.4 points |
| Net income attributable to Albemarle | $480.0 million | $22.9 million | +1,996.2% |
| Diluted EPS | $3.52 | $(0.16) | NM |
| Adjusted diluted EPS | $3.75 | $0.11 | NM |
| Adjusted EBITDA and margin | $858.1 million / 49.2% | $336.5 million / 25.3% | EBITDA +155.0%; margin +23.9 points |
Adjusted EPS and adjusted EBITDA are non-GAAP measures. Albemarle recorded a 21.3% effective tax rate for the quarter, or 19.1% on an adjusted basis.
Business and segment performance
Energy Storage accounted for most of the earnings improvement, supported by a 60.5% increase in average realized lithium pricing and an 11% increase in sales volume. Specialties also recorded higher revenue and faster EBITDA growth as pricing, volume, and productivity improved.
| Segment metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Energy Storage revenue | $1,276.7 million | $717.7 million | +77.9% |
| Energy Storage sales volume | 65 kT LCE | 59 kT LCE | +11.0% |
| Average realized price | $19.53/kg LCE | $12.17/kg LCE | +60.5% |
| Energy Storage adjusted EBITDA | $723.5 million | $219.7 million | +229.3% |
| Specialties revenue | $423.5 million | $351.6 million | +20.5% |
| Specialties adjusted EBITDA | $117.7 million | $73.0 million | +61.3% |
Higher lithium pricing was the main Energy Storage driver, although higher CORFO commissions partially offset the benefit. In Specialties, volume rose 8% and pricing increased 11%, with bromine and derivatives, productivity measures, and cost management supporting profitability amid Middle East-related cost pressures.
Corporate and other revenue declined to $43.1 million from $260.8 million. The comparison reflects Albemarle’s portfolio change following the Ketjen transaction, after which refining catalyst earnings were classified as equity income.
Lithium pricing rebuilt margins, while cash flow benefited from timing
Energy Storage’s 78% revenue growth translated into a 229% increase in adjusted EBITDA, illustrating the effect of higher realized lithium prices on profitability. Albemarle also delivered $100 million of year-to-date run-rate cost and productivity improvements and said it was tracking toward the high end of its $100 million to $150 million full-year target.
Quarterly operating cash flow was $710.0 million, free cash flow was $638.3 million, and operating cash flow conversion reached 83%. Management attributed part of this result to the timing of a larger dividend from the Talison joint venture and non-recurring working-capital benefits, indicating that not all of the quarter’s cash generation was recurring.
For the first six months of 2026, operating cash flow increased to $1.06 billion from $538.2 million, while capital expenditures declined to $170.4 million from $302.3 million. These are first-half figures and should not be compared directly with the quarterly earnings metrics.
As of June 30, Albemarle held $1.63 billion in cash and had approximately $3.2 billion of total liquidity. Total debt was about $1.9 billion, down from approximately $3.2 billion at the end of 2025 following first-quarter debt reduction actions, and the net debt-to-adjusted EBITDA ratio was approximately 0.5.
2026 outlook
Albemarle framed its consolidated 2026 outlook around three lithium market-price scenarios rather than a single forecast. The wide range of potential results demonstrates the company’s continuing sensitivity to lithium prices.
| Average lithium market price | 2026 net sales | 2026 adjusted EBITDA |
|---|---|---|
| Approximately $10/kg LCE | $4.1 billion-$4.3 billion | $0.9 billion-$1.0 billion |
| Approximately $20/kg LCE | $5.7 billion-$6.0 billion | $2.4 billion-$2.6 billion |
| Approximately $30/kg LCE | $7.5 billion-$7.8 billion | $4.2 billion-$4.4 billion |
The scenarios assume flat market pricing flowing through the existing contract book. Approximately 40% of salts volume, equivalent to roughly one-third of total volume, is covered by long-term agreements. The cases also assume spodumene pricing averages 10% of the LCE price and that other costs remain constant.
Additional outlook updates include:
- Specialties revenue guidance was raised to $1.4 billion-$1.6 billion, with adjusted EBITDA of $275 million-$325 million, reflecting stronger year-to-date pricing and volume.
- Energy Storage sales volume is expected to reach 225-235 kT LCE. Better-than-planned Wodgina output is expected to partially offset the delayed Talison CGP3 ramp following a June 9 fire, resulting in minimal expected sales-volume impact.
- The 2026 capital expenditure forecast was reduced to approximately $500 million, 15% below 2025, due to capital-efficiency improvements.
- Interest and financing expense is expected to be $120 million-$140 million following first-quarter debt reduction.
Recent insider transactions
The available six-month insider data show 99,732 shares purchased across 30 transactions and 42,322 shares sold across four transactions, producing net purchases of 57,410 shares. Total insider holdings were listed at 225.25 thousand shares, with net purchases representing 34.1%.
Eight of the latest ten reported records were zero-value director stock awards. The other two records involved CEO Jerry Kent Masters Jr., including a sale and a stock gift; these disclosures alone do not indicate insiders’ views on the company’s outlook.
| Date | Insider | Role | Transaction | Reported price | Reported value |
|---|---|---|---|---|---|
| July 21, 2026 | Eduardo Desalles Bartolomeo | Director | Stock award | $0.00 | $0 |
| July 1, 2026 | Six directors | Directors | Six stock awards | $0.00 each | $0 each |
| May 15, 2026 | Jerry Kent Masters Jr. | CEO | Sale | $183.12-$184.52 | $3,011,766 |
| April 1, 2026 | Alejandro Daniel Wolff | Director | Stock award | $0.00 | $0 |
| March 12, 2026 | Jerry Kent Masters Jr. | CEO | Stock gift | $162.79 | $5,000,258 |
Risks investors need to watch
- Lithium price sensitivity: Albemarle’s adjusted EBITDA scenarios range from $0.9 billion-$1.0 billion to $4.2 billion-$4.4 billion depending on the assumed lithium price. This remains the most significant variable for earnings and margins.
- Talison operating disruption: The CGP3 fire delayed the facility’s ramp. Albemarle expects Wodgina to offset much of the impact, but the outcome depends on continued production execution.
- Cash flow normalization: Q2 operating cash flow benefited from Talison dividend timing and non-recurring working-capital items, so the reported conversion rate does not represent only underlying operating improvements.
- Specialties geopolitical exposure: The outlook assumes stabilization in the bromine market while Middle East tensions continue to create uncertainty for costs and the Jordan Bromine Company joint venture.
Summary
Albemarle’s Q2 2026 earnings recovery was driven primarily by higher lithium pricing, with Specialties growth and cost-productivity measures providing additional support. The resulting margin expansion, stronger cash generation, lower debt, and reduced capital spending improved the financial position, but the full-year scenario ranges show that lithium pricing remains the central determinant of results. The durability of cash flow, the Talison recovery, and execution against the raised Specialties outlook are the main items to monitor.
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