In This Article:
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Net Sales: $1.1 billion, including increased specialties volumes and record lithium production.
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Adjusted EBITDA: $267 million, reflecting strong year-over-year improvements in specialties and kitchen.
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Operating Cash Flow: $545 million, with an operating cash conversion rate exceeding 200%.
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Adjusted EBITDA Margin: Improved by approximately 400 basis points year over year.
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Adjusted Diluted EPS: Loss of $0.18 after preferred dividends and excluding discrete tax items.
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SG&A Costs: Down more than 20% year over year due to restructuring and cost savings initiatives.
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Energy Storage EBITDA Margin: 36% in Q1, expected to average in the mid-20% range for the full year 2025.
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Available Liquidity: $3.1 billion, including $1.5 billion in cash and cash equivalents.
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Net Debt to Adjusted EBITDA Ratio: 2.4 times at the end of Q1.
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Free Cash Flow: Slightly positive without the customer pre-payment.
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Capital Expenditures: Expected to reduce by more than 50% year over year.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Albemarle Corp (NYSE:ALB) reported net sales of $1.1 billion, driven by increased specialties volumes and record lithium production.
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The company achieved an operating cash conversion rate exceeding 200%, generating $545 million in cash from operations.
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Albemarle Corp (NYSE:ALB) has identified opportunities to reach the high end of their $300 to $400 million cost and productivity improvement target.
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The company expects lithium demand to more than double from 2024 to 2030, driven by the energy transition and global demand for electric vehicles and grid storage.
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Albemarle Corp (NYSE:ALB) maintains a strong financial position with available liquidity of $3.1 billion, including $1.5 billion in cash and cash equivalents.
Negative Points
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First quarter net sales were lower year over year, mainly due to lower lithium market pricing.
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Adjusted EBITDA was down 8% year over year, impacted by lower lithium pricing and reduced JV pre-tax equity earnings.
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Earnings per share was break-even in the first quarter, with an adjusted diluted loss of $0.18 per share.
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The company anticipates a modest direct impact of tariffs in 2025, estimated at $30 to $40 million on an unmitigated basis.
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Second quarter energy storage margins are expected to be lower due to a lower proportion of lithium salts sold under long-term agreements.
Q & A Highlights
Q: Could you elaborate on the scenarios that might lead to the lower or higher end of the 15 to 40% demand growth forecast for 2025? A: Jerry Masters, CEO, explained that the current environment is uncertain, which is why the forecast range is wide. The middle of the range, around 20-25%, is considered reasonable based on current conditions. The extremes represent scenarios where everything goes either wrong or right.