Arcadium Lithium (ALTM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $255 million, with GAAP net income of $85.7 million and adjusted EBITDA of $99.1 million, reflecting a 39% adjusted EBITDA margin despite challenging lithium market conditions.

• Completed the Allkem Livent Merger, creating a vertically integrated global lithium producer focused on integration, cost synergies, and capital management.

• Achieved higher realized pricing for lithium hydroxide and carbonate at $17,200 per metric ton through long-term contracts and a low-cost operating footprint.

• Deferred investment in two major expansion projects, reducing planned capital expenditures by $500 million over 24 months to align with market demand.

• Acquired Li-Metal Corp’s lithium metal business for $11 million, expanding specialty product capabilities.

Financial highlights

• Q2 2024 revenue: $255 million; GAAP net income: $85.7 million; adjusted EBITDA: $99.1 million; adjusted EPS: $0.05; GAAP EPS: $0.07.

• Adjusted EBITDA margin was 39% in Q2 2024.

• Sold 10,800 metric tons of lithium hydroxide and carbonate at $17,200/ton; spodumene sales at 23,500 dry metric tons, $1,000–$1,013/ton.

• Cash and cash equivalents as of June 30, 2024, were $380.4 million, with $479.4 million available under the Revolving Credit Facility.

• CapEx for Q2 2024 was $154 million; YTD CapEx $372 million.

Outlook and guidance

• Projecting a 25% increase in combined lithium hydroxide and carbonate sales volumes in both 2024 and 2025, driven by recent capacity expansions.

• Full-year 2024 revenue expected between $1.1–$1.2 billion, with adjusted EBITDA of $380–$470 million depending on market prices.

• 2024 CapEx guidance: $550–$700 million, with major capital savings expected in 2025.

• Adjusted tax rate for 2024 expected between 25% and 30%; D&A outlook reduced by $45 million due to slower ramp-up.

• Tracking toward the high end of $60–80 million cost savings guidance for 2024, with further reductions being accelerated.