Albemarle Corporation, a global leader in materials for mobility, energy, connectivity, and health, reported strong fourth-quarter and full-year 2025 results, driven by higher volumes, pricing gains, and operational efficiencies.
Quarterly Results: Net sales jumped 16% year-over-year to $1.4 billion, fueled by Energy Storage (+17%) and Ketjen (+13%). Volume rose 12% across all segments. Adjusted EBITDA increased 7% to $269 million, led by Energy Storage (+25%) and Ketjen (+39%).
The company posted a net loss of $414 million, or $3.87 per share, reflecting tax-related items and a write-down tied to the expected Ketjen transaction. Excluding these one-time items, adjusted loss per share narrowed to $0.53.
Full-Year Highlights: Albemarle generated $1.3 billion in cash from operations, representing more than 100% operating cash flow conversion, and delivered $692 million in free cash flow, aided by sharply reduced capital expenditures of $590 million (down 65%). Cost and productivity improvements totaled roughly $450 million, surpassing the original $300–$400 million target.
Strategically, the company closed the sale of a 50% stake in the Eurecat joint venture for $123 million in January 2026 and remains on track to sell a controlling stake in Ketjen in Q1 2026.
Segment snapshots:
Energy Storage: Q4 net sales surged 23% to $759 million, with adjusted EBITDA up 25% to $167 million due to higher volumes, pricing, and cost improvements. Full-year EBITDA was $697 million, down 8% due to lower lithium pricing.
Specialties: Net sales rose 5% to $349 million; adjusted EBITDA fell $4 million amid margin compression. Full-year EBITDA grew 21% to $276 million.
Ketjen: Net sales climbed 14% to $320 million, while adjusted EBITDA increased $14 million to $50 million, driven by product mix and lower input costs. Full-year EBITDA rose 15% to $150 million.
Albemarle expects meaningful free cash flow in 2026 under higher lithium prices, with capital expenditures roughly flat year-over-year and targeted investments in productivity and resource development.
CEO Kent Masters said, “Our results for the fourth quarter and full year 2025 are a testament to our team's focus on execution amid dynamic market conditions. Albemarle achieved year-over-year sales growth of more than 15% in the fourth quarter, as well as strong full-year cash flow generation and significant cost and productivity improvements.
"The steps we have taken to optimize our asset portfolio, reduce costs and strengthen our financial flexibility have improved our competitive position. Even as market conditions improve, we continue to drive cost reduction and productivity actions.”
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