In This Article:
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Net Sales (Q4 2024): $1.2 billion.
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Adjusted EBITDA (Q4 2024): $251 million.
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Net Sales (Full Year 2024): $5.4 billion.
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Adjusted EBITDA (Full Year 2024): $1.1 billion.
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Energy Storage Sales Volume Increase: 26% year-over-year.
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Cash from Operations (2024): $702 million.
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Operating Cash Conversion Rate (2024): Exceeded 60%.
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Capital Expenditure Outlook (2025): Reduced by $100 million to $700-$800 million.
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Adjusted Earnings Per Share (Q4 2024): Loss of $1.09.
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Available Liquidity (End of Q4 2024): $2.8 billion.
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Net Debt to Adjusted EBITDA Ratio (End of Q4 2024): 2.6x.
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Operating Cash Flow Conversion (2024): 62%.
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Expected Operating Cash Flow Conversion (2025): Exceed 80%.
Release Date: February 13, 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 a 26% year-over-year increase in sales volumes in its Energy Storage segment, surpassing initial guidance.
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The company achieved an adjusted EBITDA of $1.1 billion for the full year 2024, in line with its outlook considerations.
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Operating cash conversion rate exceeded 60%, surpassing the target of 50% and aligning with long-term objectives.
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Albemarle Corp (NYSE:ALB) has decreased its full-year 2025 CapEx outlook by an additional $100 million, expecting to spend between $700 million to $800 million.
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The company has a strong liquidity position with $2.8 billion available, including $1.2 billion in cash and cash equivalents.
Negative Points
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Net sales for the fourth quarter were $1.2 billion, marking a year-over-year decline primarily due to lower lithium market pricing.
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Adjusted earnings per share for the fourth quarter reflected a loss of $1.09, excluding gains on asset sales and reduced restructuring charges.
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The company is placing its Chengdu lithium conversion facility into care and maintenance due to market conditions.
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Albemarle Corp (NYSE:ALB) anticipates that cash dividends from Talison in 2025 will remain below historical averages.
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The company faces challenges with a wide range in tax guidance for 2025 due to varying lithium price scenarios.
Q & A Highlights
Q: Can you explain the contract mix for lithium sales and any recent renegotiations? A: Kent Masters, CEO: About 50% of our lithium sales are on long-term contracts with floors, and the rest follow spot mechanisms. We haven't had any significant renegotiations recently.
Q: Where are you cutting back on CapEx, and how does this affect future growth? A: Kent Masters, CEO: Initially, we reduced CapEx in conversion projects and have since focused on sustaining capital and high-quality resources. We aim to grow at a 15% CAGR from 2022 to 2027, but growth rates may decrease post-2027 due to resource constraints.