Albemarle (ALB) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $1.553B, up 18.8% YoY; adjusted EBITDA reached $645.5M, up 186.1%, driven by higher pricing, segment growth, and productivity gains.

• Net income attributable to shareholders was $296.8M, or $2.15 diluted EPS; adjusted net income was $353.6M, or $2.58 adjusted diluted EPS.

• Global lithium demand rose 48% YTD through August, led by EV and energy storage demand.

Financial highlights

• Q3 gross profit was $300.7M and operating income was $148.2M, versus an operating loss of $217.0M in Q3 2025.

• Q3 cash from operations was $405.8M and free cash flow was $325.4M; nine-month operating cash flow was $1.462B and free cash flow was $1.2B.

• Nine-month net sales rose 27% to $4.725B; net income attributable to shareholders was $1.096B versus a $96.4M loss.

• Adjusted EBITDA growth reflected higher pricing in both segments and higher Specialties volumes; higher COGS, including higher-priced spodumene inventory and Chilean commissions, partly offset gains.

Outlook and guidance

• FY26 Specialties adjusted EBITDA guidance increased to $350M-$375M; net sales guidance is $1.4B-$1.6B.

• FY26 Energy Storage sales volume guidance is 225-235 kt LCE; higher Wodgina volumes partly offset the delayed CGP3 ramp.

• FY26 capex guidance was reduced to $300M-$350M from approximately $500M; sustaining capital is expected below $300M as early-stage project spending is resequenced.

• At $20/kg LCE, FY26 net sales guidance is $5.7B-$6.0B and adjusted EBITDA is $2.4B-$2.6B; YTD performance trended toward the higher end of the scenario.

• Q4 Energy Storage sales and adjusted EBITDA are expected to decline sequentially if lower market pricing persists; volumes are expected steady, with margins also pressured by higher-cost spodumene inventory.