ALBEMARLE CORP (ALB)

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AI: Fair-priced

Price checkAt $116.04, the shares look reasonably valued, but not clearly cheap.

The last verifiable close found was $116.04 on August 6, 2026. With 118.0 million June common shares, that implies $13.7 billion of common value. The March 2027 mandatory preferred conversion could add roughly 17.5–21.0 million shares, so a fully diluted view is nearer $16 billion. Adding $245 million of net debt gives about $16.2 billion of enterprise value. Against annualized first-half earnings before interest, taxes, depreciation and amortization of $2.0 billion, the multiple is about eight times. That is reasonable, not a bargain, because lithium earnings can reverse quickly.

Big pictureCash generation has recovered sharply, but the recent boom-bust history argues against extrapolation.

Revenue fell from $9.62 billion in 2023 to $5.14 billion in 2025, while net income swung from a $1.57 billion profit to a $511 million loss, showing lithium-price dependence. First-half 2026 revenue reached $3.17 billion, net income $799 million and operating cash $1.06 billion. After $170 million of investment spending, free cash flow—cash left after running and investing in the business—was $886 million. That recovery is encouraging, but annual free cash flow was only $692 million in 2025 and negative $993 million in 2024, so durability remains unproven.

Business strengthDebt is now modest, while scarce resources and specialties provide meaningful downside support.

At June 30, Albemarle held $1.63 billion of cash against $1.88 billion of debt, leaving only $245 million of net debt; current assets were more than twice current liabilities. Debt fell $1.32 billion from December 2025 after asset-sale proceeds and repayments, sharply reducing refinancing risk. Greenbushes, Wodgina and Chile provide large lithium resources, while bromine-based Specialties adds steadier earnings. Capital allocation has favored debt reduction and lower investment spending, with no reported buybacks; however, common dividends still cost about $191 million in 2025.

What could change the storySustained lithium prices could unlock upside, while renewed oversupply would erase today’s earnings.

At roughly $116, the bull case requires first-half momentum to last. Second-quarter revenue rose 31% from a year earlier, reported operating earnings nearly tripled to $609 million, and quarterly free cash flow reached $638 million. If annual free cash flow settles above $1.2 billion, the fully diluted value looks attractive. The bear case is renewed Chinese supply pushing lithium prices toward Albemarle’s roughly $10-per-kilogram low scenario, reviving losses and project write-downs. The March 2027 preferred conversion may also add 17.5–21.0 million common shares, limiting per-share upside.

$116.04 price considered

AI: News

Second-quarter reboundSecond-quarter profit and cash jumped as higher lithium prices improved the business.

On August 5, the SEC-derived history showed second-quarter revenue of $1.74 billion, net income of $480 million and earnings before interest, taxes, depreciation and amortization of $609 million. A year earlier, those figures were $1.33 billion, $23 million and $216 million. Operating cash reached $710 million while capital spending was only $72 million. MarketBeat recorded a 1.0% rise to $116.04 on August 6; that timing is consistent with a positive response, but does not prove the results caused it.

Lithium prices retreatChinese lithium prices fell back, testing whether Albemarle’s earnings recovery can last.

On July 9, S&P Global reported that China battery-grade lithium carbonate was assessed at 157,000 yuan per metric ton on July 8, after touching 146,000 yuan on June 29, its lowest since March 24. June electric-vehicle sales still grew 23.6% year over year, leaving demand strong but supply expectations uncertain. Because lithium prices flow directly into Albemarle’s sales, this retreat threatened the earnings rebound. The stock also fell over that period, though attribution remains uncertain.

First-quarter earnings surpriseFirst-quarter earnings beat expectations, confirming a sharp rebound from 2025 losses.

On May 6, Albemarle reported first-quarter sales of $1.43 billion, up 33%, and net income of $319 million versus $41 million a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization rose 148% to $664 million, mainly from higher lithium prices, volumes and cost savings. Reuters reported shares rose more than 9% after hours. That reaction reflected stronger expectations, although after-hours moves can reverse and cannot isolate every market influence.

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Net income

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2025

Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$5.14B	$5.38B	$9.62B	$7.32B	$3.33B	$3.13B	$3.59B	$3.37B	$3.07B	$2.68B	$2.83B	$2.45B	$2.39B	$2.52B	$2.87B	$2.36B	$2.01B	$2.47B
Gross profit	$668.7M	$62.5M	$1.19B	$3.07B	$998.0M	$994.9M	$1.26B	$1.22B	$1.11B	$970.3M	$860.2M	$770.8M	$850.5M	$898.8M	$954.9M	$741.9M	$483.9M	$607.7M
Research & development	$51.4M	$86.7M	$85.7M	$72.0M	$54.0M	$59.2M	$58.3M	$70.1M	$84.3M	$80.5M	$89.2M	$88.3M	$82.2M	$78.9M	$77.1M	$58.4M	$60.9M	$67.3M
Operating income	−$367.1M	−$1.78B	$251.9M	$2.47B	$798.4M	$505.8M	$666.1M	$911.5M	$571.7M	$601.0M	$345.1M	$271.3M	$576.7M	$399.8M	$517.8M	$401.9M	$186.3M	$220.9M
EBITDAderived	$291.6M	−$1.19B	$681.8M	$2.77B	$1.05B	$737.8M	$879.6M	$1.11B	$768.6M	$827.1M	$605.2M	$374.9M	$684.0M	$498.8M	$614.5M	$497.5M	$286.8M	$332.6M
Net income	−$510.6M	−$1.18B	$1.57B	$2.69B	$123.7M	$375.8M	$533.2M	$693.6M	$54.9M	$643.7M	$334.9M	$133.3M	$413.2M	$311.5M	$392.1M	$315.8M	$178.4M	$194.2M
Basic EPSper diluted share	-$5.76	-$11.20	$13.41	$22.97	$1.07	$3.53	$5.03	$6.40	$0.49	$5.73	$3.01	$1.69	$4.93	$3.49	$4.33	$3.46	$1.95	$2.12
Diluted EPSper diluted share	-$5.76	-$11.20	$13.36	$22.84	$1.06	$3.52	$5.02	$6.34	$0.49	$5.68	$3.00	$1.69	$4.90	$3.47	$4.28	$3.43	$1.94	$2.09

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)12$7.75M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 15, 2026Form 4	Masters J KentChairman & CEO	SellCommon Stock	700	$184.52	$129.2K	87.5K
May 15, 2026Form 4	Masters J KentChairman & CEO	SellCommon Stock	11.9K	$183.87	$2.18M	88.2K
May 15, 2026Form 4	Masters J KentChairman & CEO	SellCommon Stock	3.8K	$183.12	$700.6K	100.1K
Mar 10, 2026Form 4	Masters J KentChairman & CEO	SellCommon Stock	996	$171.82	$171.1K	134.6K
Mar 10, 2026Form 4	Masters J KentChairman & CEO	SellCommon Stock	5.4K	$171.18	$923.0K	135.6K

Review ownership filings at SEC.gov ↗

ALBEMARLE CORP (ALB)

Financial charts

Financial statements

Insider buys & sells