ALB · Q2 2026 Earnings

Bullish

Albemarle Corporation

Reported August 5, 2026

30-second summary

30-second take: Albemarle reported Q2 revenue of $1.743B (+31.1% YoY) and non-GAAP EPS of $3.75, with Energy Storage revenue up 77.9% YoY to $1.277B on realized pricing of $19.53/kg. Total Adjusted EBITDA of $858M was up 155% YoY, with segment EBITDA margins of ~57% in Energy Storage and ~28% in Specialties. Management raised Specialties FY26 net sales to $1.4-1.6B and EBITDA to $275-325M (+$50M at both ends), lowered FY26 capex to ~$500M (from $550-600M), and reaffirmed the three-scenario Total Corporate EBITDA framework ($0.9-1.0B / $2.4-2.6B / $4.2-4.4B) across the $10/$20/$30 price cases. Q2 realized pricing of $19.53/kg lands squarely in the mid-scenario, and Q2 EBITDA annualized to a $3.4B run-rate — above the mid-case FY range.

Headline numbers

EPS

Q2 FY2026

$3.75

+15.7% vs est.

Revenue

Q2 FY2026

$1.74B

+31.1% YoY

+6.9% vs est.

Gross margin

Q2 FY2026

33.9%

Free cash flow

Q2 FY2026

$0.64B

Operating margin

Q2 FY2026

26.0%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$1.74B	$1.33B	+31.1%	$1.43B	+21.9%
EPS	$3.75	$0.11	+3309.1%	$2.95	+27.1%
Gross margin	33.9%	14.8%	+1910bps	35.1%	-120bps
Operating margin	26.0%	3.6%	+2240bps	16.4%	+960bps
Free cash flow	$0.64B	—	—	$0.25B	+157.3%

Guidance

Albemarle raised FY2026 full-year guidance on stronger-than-expected

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	expected to be up sequentially	$1.743 billion	+6.9% above consensus estimate; +31.1% YoY	Beat

New guidance

Metric	Period	Guide	YoY
Energy Storage Sales Volumes	FY2026	225 to 235 kilotons lithium carbonate equivalent	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Energy Storage net sales	FY2026	$2.5 - $2.6 billion / $4.0 - $4.2 billion / $5.9 - $6.1 billion (depending on lithium price scenario)	Not separately disclosed in current guidance	Implicitly raised via total guidance improvement and qualitative commentary on stronger-than-expected volumes	Raised
Specialties net sales	FY2026	$1.3 - $1.5 billion	$1.4 - $1.6 billion	+$0.1B at both low and high end	Raised
Specialties Adjusted EBITDA	FY2026	$225 - $275 million	$275 - $325 million	+$50M at low end, +$50M at high end	Raised
Total Adjusted EBITDA	FY2026	$2.4 - $2.6 billion (mid-scenario from $0.9-$1.0B / $2.4-$2.6B / $4.2-$4.4B depending on lithium price scenario)	$2.4 - $2.6 billion (noted as FY2025 avg price case)	Reaffirmed on surface but context shift: prior guidance encompassed three scenarios; current states 'FY2025 avg price case' specifically, suggesting management confidence in mid-case outcome.	Raised
Energy Storage Adjusted EBITDA	FY2026	$0.7 - $0.8 billion / $2.1 - $2.3 billion / $3.9 - $4.1 billion (depending on lithium price scenario)	Not separately disclosed in current guidance	Implicitly raised via stronger pricing and volume performance commentary; Q2 Energy Storage Adjusted EBITDA $723.5M suggests elevated run-rate	Raised
Capital Expenditures	FY2026	$550 - $600 million	approximately $500 million	-$50M to -$100M reduction (point estimate $500M vs prior range midpoint $575M)	Lowered
Cost and Productivity Improvements	FY2026	$100 - $150 million	Withdrawn — no replacement	—	Withdrawn

Reaffirmed unchanged this quarter: Interest and Financing Expenses ($120 - $140 million)

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Energy Storage	$1.277B	$0.718B	+77.9%
Specialties	$0.424B	$0.352B	+20.5%

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Energy Storage Adjusted EBITDA	$723.5M	—	—
Specialties Adjusted EBITDA	$117.7M	—	—
Total Adjusted EBITDA	$858.1M	—	—
Energy Storage Sales Volume (kT LCE)	65	—	—
Energy Storage Avg. Realized Price ($/kg LCE)	$19.53	—	—
Operating Cash Flow Conversion	83%	—	—
Adjusted EBITDA Margin	49.2%	25.3%	—
Net Debt to Adjusted EBITDA (LTM)	0.5x	—	—

Management tone

Cost program on track → Specialties pricing recovery → Capacity discipline (capex cut) → Three-scenario framework reaffirmed

No transcript is available for this print; tone analysis is inferred from the press release framing and guidance updates alone.

The three-scenario disclosure framework was reaffirmed intact. Management continues to present Total Corporate FY26 Adjusted EBITDA across the $10/$20/$30 price cases ($0.9-1.0B / $2.4-2.6B / $4.2-4.4B), with the segment-level Energy Storage ladder unchanged as well. With Q2 realized pricing at $19.53/kg and Q2 EBITDA annualized to $3.4B, actual results are tracking in the mid-scenario, but management has explicitly preserved optionality across all three cases.

Cost program is tracking toward the high end of the $100-150M FY26 target. Management disclosed $100M in year-to-date run-rate cost and productivity improvements, tracking toward the high end of the full-year target — a positive read-through vs. Q1's $40M run-rate.

Capital discipline tightened from range to point estimate. FY26 capex moved from $550-600M range to "approximately $500M" point estimate — down 15% vs. 2025 per management, and a 13% reduction against the prior midpoint. At $638M of Q2 FCF and ~$500M FY26 capex, FCF generation now materially outpaces reinvestment.

Kemerton Train 1 placed in care and maintenance. The press release quantified restructuring charges of $7.3M in Q2 and $33.2M for H1 tied to the Kemerton decision and other previously announced actions — the first explicit dollar quantification of the Kemerton-related restructuring impact.

Answers to last quarter's watch list

Q2 Energy Storage EBITDA margin holding above 55%. Segment EBITDA of $723.5M on $1.277B revenue implies ~57% margin — comfortably above the 55% threshold.

Resolved positively

Whether the $20/kg FY scenario gets formally re-anchored to the $30/kg ladder in Q2 commentary. Management reaffirmed all three price scenarios unchanged. With Q2 realized pricing at $19.53/kg, actuals are tracking in the mid-case, but there was no re-anchoring higher.

Not resolved

Specialties bromine pricing durability in Chinese and Indian spot markets. Specialties Q2 EBITDA of $117.7M (implied ~28% margin) supported a second consecutive guide raise, with FY26 EBITDA now $275-325M (+$50M at both ends) and net sales raised to $1.4-1.6B.

Resolved positively

Kemerton Train 1 idle benefit quantification. Management placed Kemerton Train 1 into care and maintenance and disclosed restructuring charges of $7.3M in Q2 and $33.2M for H1. Explicit go-forward idle savings were not separately quantified, but the restructuring cost side is now on the record. Status: Partially resolved.

FY26 cost program run-rate progression beyond $40M Q1. Management disclosed $100M in year-to-date run-rate cost and productivity improvements, tracking toward the high end of the $100-150M FY26 target.

Resolved positively

Long-term agreement coverage % update. The press release notes that approximately 40% of salts volume (or one-third of total volumes) is on long-term agreements — this assumption is baked into all three scenarios. Status: Resolved.

What to watch into next quarter

Q3 Energy Storage realized pricing vs. Q2's $19.53/kg baseline. With Q2 pricing landing in the mid-scenario, a Q3 realized price sustaining above $19.50/kg would keep actuals tracking above the mid-case EBITDA range. A print below $17/kg would pull results toward the low scenario.

Q3 Energy Storage sales volume tracking against the new 225-235 kT LCE FY guide. Q2 volume of 65 kT annualizes to 260 kT — above the upper end. Watch whether Q3 volumes hold above 55 kT or normalize lower as Talison CGP3 fire mitigation via Wodgina runs its course.

Talison CGP3 fire recovery status and Wodgina production capacity. Management called the impact "minimal" in Q2. Watch Q3 for an explicit CGP3 restart timeline and whether Wodgina's better-than-planned output persists as a structural volume tailwind.

Free cash flow trajectory against the ~$500M FY26 capex plan. Q2 delivered $638M of FCF; H1 capex of $170M puts full-year spending well inside the ~$500M target. A Q3 FCF print above $200M would put FY26 FCF in the $1B+ zone and open the door to capital return decisions beyond the current 0.5x leverage.

Cost program progression against the $100-150M target. With $100M year-to-date run-rate already achieved, watch whether Q3 disclosure lifts the run-rate further toward or above the $150M upper bound.

Kemerton idle cash cost quantification. Restructuring charges are now disclosed ($7.3M Q2 / $33.2M H1), but the ongoing cash cost of holding Train 1 in care and maintenance was not separately called out. Watch Q3 for a run-rate figure.

Sources

Albemarle Q2 2026 Earnings Release, SEC Filing (Exhibit 99.1): https://www.sec.gov/Archives/edgar/data/915913/000091591326000101/a2q26earningsreleaseex991.htm

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