AMG Critical Materials (AMG) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 20% year-over-year to $439 million, with adjusted EBITDA up 79% to $71 million, marking the highest quarterly adjusted EBITDA since Q4 2023, driven by strong Technologies segment performance and antimony profitability.

• Net income attributable to shareholders was $12 million, reversing an $11 million loss in Q2 2024, reflecting a significant profitability recovery.

• Strategic expansion in the U.S. and global joint ventures, particularly in the Middle East, reinforce execution capabilities and long-term growth.

• No material negative direct effects from increased tariffs or trade barriers; operations benefit from critical materials within domestic value chains.

• Robust liquidity position of $462 million supports ongoing growth initiatives and capital allocation.

Financial highlights

• Adjusted EBITDA reached $71 million in Q2 2025, up from $39 million in Q2 2024, with margin improving to 16.1% from 10.8% year-over-year.

• Revenue increased to $439 million, a 20% rise compared to Q2 2024.

• Adjusted gross profit increased 60% year-over-year to $97 million, with adjusted gross margin rising to 22.2%.

• Tax expense for Q2 2025 was $7 million, down from $11 million YoY, aided by Brazilian deferred tax benefits.

• SG&A expenses rose 28% year-over-year, mainly due to increased headcount and a non-recurring executive retirement benefit.

Outlook and guidance

• Adjusted EBITDA outlook for 2025 raised from $170 million or more to $200 million or more, reflecting strong first-half performance and improved segment profitability.

• Five-year guidance targets normalized EBITDA of $500 million or more.

• Lithium production expected to reach 110,000 tons annualized in H2 2025, with volumes likely weighted toward Q4.

• Free cash flow expected to improve in H2, with a chance to reach break-even for FY2025.

• Management notes ongoing global economic and market uncertainties.