Albemarle Corporation has delivered a powerful second-quarter performance, reporting a sharp rise in revenue and profits as stronger pricing in energy storage and specialty markets, along with aggressive cost controls, fueled major gains.
The global supplier of essential elements for mobility, energy, connectivity and health reported second-quarter 2026 net sales of $1.7 billion, a 31% jump from the same period last year. The increase was driven by a 73% surge in Energy Storage pricing and stronger pricing and volumes in Specialties.
Net income attributable to Albemarle Corporation climbed to $480 million, or $3.52 per diluted share, compared with $22.9 million in the year-ago quarter. Adjusted EBITDA soared 155% to $858 million, powered by higher Energy Storage pricing, improved Specialties performance and continued cost and productivity improvements.
Energy Storage delivered the biggest boost, with adjusted EBITDA rising 229% to $723 million as higher lithium pricing offset increased CORFO commissions. Specialties also posted strong momentum, with adjusted EBITDA increasing 61% to $118 million on higher volumes, improved pricing and productivity gains.
The company generated $710 million in cash from operating activities and $638 million in free cash flow during the quarter, achieving an 83% operating cash flow conversion rate. Albemarle said the result was supported by the timing of an increased dividend from the Talison joint venture and one-time working capital benefits.
Albemarle also said it has achieved $100 million in year-to-date run-rate cost and productivity improvements, putting the company on track toward the upper end of its full-year target of $100 million to $150 million.
The company raised its 2026 outlook for its Specialties business, citing stronger-than-expected pricing and volume performance. It now expects full-year Specialties net sales of $1.4 billion to $1.6 billion and adjusted EBITDA of $275 million to $325 million.
Albemarle said the fire at the Talison CGP3 facility on June 9 is expected to have minimal impact on Energy Storage sales volumes, helped by better-than-planned production from the Wodgina mine. The company also lowered its full-year capital expenditure forecast to approximately $500 million, citing ongoing improvements in capital efficiency.
"Albemarle delivered another quarter of strong results, reflecting improved pricing, continued strength in Specialties, disciplined cost and productivity execution, and strong cash generation," said Kent Masters, Chairman and CEO.
"We continue to see resilient demand fundamentals across our core markets, including energy storage, electric vehicles, and semiconductors. We are advancing our highest value organic growth opportunities while maintaining a disciplined approach to capital allocation and execution."
For the quarter, Energy Storage revenue reached $1.3 billion, up $559 million, or 78%, year over year, while Specialties revenue rose to $423 million, an increase of $72 million, or 20%, driven by an 8% increase in volumes and an 11% increase in pricing.
Albemarle said Specialties growth was supported by favorable pricing in bromine and derivatives, continued productivity improvements and proactive management of cost pressures linked to the conflict in the Middle East.
