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1. Company Snapshot

1.a. Company Description

Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide.It operates through three segments: Lithium, Bromine, and Catalysts.The Lithium segment offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and lithium specialties; and reagents, such as butyllithium and lithium aluminum hydride for use in lithium batteries for consumer electronics and electric vehicles, high performance greases, thermoplastic elastomers for car tires, rubber soles, plastic bottles, catalysts for chemical reactions, organic synthesis processes in the areas of steroid chemistry and vitamins, life sciences, pharmaceutical industry, and other markets.


It also provides cesium products for the chemical and pharmaceutical industries; zirconium, barium, and titanium products for pyrotechnical applications that include airbag initiators; technical services for the handling and use of reactive lithium products; and lithium-containing by-products recycling services.The Bromine segment offers bromine and bromine-based fire safety solutions; specialty chemicals, including elemental bromine, alkyl and inorganic bromides, brominated powdered activated carbon, and other bromine fine chemicals for use in chemical synthesis, oil and gas well drilling and completion fluids, mercury control, water purification, beef and poultry processing, and other industrial applications; and other specialty chemicals, such as tertiary amines for surfactants, biocides, and disinfectants and sanitizers.The Catalysts segment provides hydroprocessing, isomerization, and akylation catalysts; fluidized catalytic cracking catalysts and additives; and organometallics and curatives.


The company serves the energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, and crop protection markets.Albemarle Corporation was founded in 1887 and is headquartered in Charlotte, North Carolina.

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1.b. Last Insights on ALB

Albemarle Corporation's recent performance has been driven by several positive factors. The company's Q3 2025 earnings report showed net sales of $1.3 billion and an adjusted EBITDA of $226 million, a 7% increase year over year. Additionally, cash from operations surged 57% year over year to $356 million. The company's strong fundamentals, including a 30-year dividend growth streak and $3.5 billion in liquidity, signal strength for future shareholder returns. Furthermore, ALB's cost-saving initiatives and improved free cash flow have enhanced its financial flexibility. Recent analyst upgrades, including a price target increase from HSBC from $87.00 to $117.00, have also contributed to the stock's momentum. Increased investment from institutional investors, such as AXQ Capital LP's new stake, has also been a positive driver. According to MarketBeat.com, the consensus rating from twenty-seven analysts is "Hold", with five recommending a buy. Rising output, cost cuts, and cash strength have highlighted ALB's edge in the lithium market.

1.c. Company Highlights

2. Albemarle's Q3 2025 Earnings: A Strong Performance Amidst a Tight Lithium Market

Albemarle Corporation reported a robust Q3 2025, with net sales reaching $1.3 billion and adjusted EBITDA of $226 million, a 7% year-over-year increase. The company's cash from operations was $356 million, a 57% year-over-year increase, driven by inventory reductions. The actual EPS came out at '-0.19', significantly better than estimates at '-0.92'. The company's financial performance was bolstered by strong lithium market pricing and energy storage sales volumes, leading to an enhanced 2025 outlook.

Publication Date: Nov -13

📋 Highlights
  • Q3 2025 Net Sales & Adjusted EBITDA:: Net sales reached $1.3 billion, with adjusted EBITDA at $226 million, up 7% year-over-year.
  • Cash from Operations Growth:: Cash from operations surged to $356 million in Q3, a 57% increase compared to the same period in 2024.
  • Enhanced 2025 Outlook:: Full-year results projected toward the upper end of $9/kg scenario ranges, driven by strong lithium pricing and energy storage sales growth.
  • Global EV & Grid Storage Growth:: EV sales grew 30% year-to-date, while grid storage demand skyrocketed 105%, fueled by China and EU markets.
  • Cost Savings & Free Cash Flow:: Achieved $450 million in annual cost/productivity improvements and expects $300–$400 million in 2025 free cash flow.

Market Outlook and Demand Trends

The global EV sales grew 30% year-to-date, led by China and EU battery electric vehicles, while grid storage growth was even more pronounced, climbing 105% year-to-date. Jerry Masters, during the earnings call, cited a tight global lithium supply-demand balance with lithium consumption growth up over 30% year-to-date. The company's lithium demand forecast for 2030 has moved up within its previously stated range, driven by stronger demand from both EVs and fixed storage.

Operational Efficiency and Cost Management

Albemarle made significant progress in implementing cost and productivity improvements, reducing capital expenditures, and achieved full-year cost and productivity improvements of around $450 million. The company expects to continue this trend into 2026, with a focus on driving productivity and cost savings across its operations, supply chain, and back office. As Jerry Masters emphasized, "the company is focused on driving productivity and cost savings across its operations, supply chain, and back office."

Valuation and Growth Prospects

With a P/S Ratio of 2.62 and EV/EBITDA of 22.71, the market is pricing in a certain level of growth for Albemarle. Analysts estimate next year's revenue growth at 2.3%. The company's strong performance in Q3 2025 and enhanced 2025 outlook suggest that it is well-positioned to capitalize on the growing demand for lithium and energy storage solutions. The current valuation metrics indicate that the market is expecting a moderate growth rate, which is in line with the analysts' estimates.

Cash Flow and Capital Allocation

Albemarle reported cash conversion over 100% year-to-date, with Q3 conversion being strong due to inventory reductions. The company expects to achieve positive free cash flow of $300 million to $400 million in 2025, with cash conversion averaging over 80% for the year. The proceeds from the partial monetization of Eurecat and Ketjen will be used to deleverage the balance sheet, as stated by Neal Sheorey.

3. NewsRoom

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Here Are Tuesday’s Top Wall Street Analyst Research Calls: Albemarle, Circle Internet, Cloudflare, Danaher, Inspire Medical, Six Flags, Workday and More

Dec -02

Source: 247wallst.com

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Albemarle: Ride The Lithium Surge

Nov -30

Source: seekingalpha.com

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Best Dividend Aristocrats For December 2025

Nov -29

Source: seekingalpha.com

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Can ALB's Cash Strength Power Bigger Shareholder Returns Ahead?

Nov -28

Source: zacks.com

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LAC vs. ALB: Which Lithium Stock Has More Upside Potential Now?

Nov -27

Source: zacks.com

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Albemarle (NYSE:ALB) Hits New 12-Month High on Analyst Upgrade

Nov -27

Source: defenseworld.net

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AXQ Capital LP Makes New Investment in Albemarle Corporation $ALB

Nov -25

Source: defenseworld.net

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Albemarle Stock Tumbles. What's Behind the Lithium Miner's Volatility?

Nov -21

Source: barrons.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.36%)

6. Segments

Energy Storage

Expected Growth: 5%

Albemarle's Energy Storage segment growth is driven by increasing adoption of electric vehicles, renewable energy integration, and grid modernization. Strong demand for lithium-ion batteries, particularly in the electric vehicle market, is a key growth catalyst. Additionally, government incentives and investments in clean energy infrastructure are fueling growth in this segment.

Specialties

Expected Growth: 3%

Albemarle's 3% growth in Specialties is driven by increasing demand for lithium-based battery materials, growth in the electric vehicle market, and rising adoption of clean energy technologies. Additionally, the company's investments in research and development, as well as its strategic acquisitions, have expanded its product offerings and enhanced its market position.

Ketjen

Expected Growth: 2%

Ketjen's 2% growth is driven by increasing demand for clean fuels, stringent environmental regulations, and Albemarle's strategic expansion into high-growth markets. Additionally, the segment benefits from its diversified customer base, long-term contracts, and continuous R&D investments, ensuring a steady supply of innovative catalysts and services.

7. Detailed Products

Lithium

Albemarle's Lithium segment produces lithium and its derivatives, which are used in a wide range of applications, including lithium-ion batteries for electric vehicles and consumer electronics, as well as in ceramics, glass, and pharmaceuticals.

Bromine

Albemarle's Bromine segment produces bromine and its derivatives, which are used in various applications, including flame retardants, water treatment, and oil and gas well completion fluids.

Refinery Catalysts

Albemarle's Refinery Catalysts segment produces catalysts used in the refining of crude oil to produce gasoline, diesel fuel, and other petroleum products.

Performance Catalyst Solutions

Albemarle's Performance Catalyst Solutions segment produces catalysts used in the production of polyethylene and polypropylene, as well as in the purification of hydrogen and other gases.

Curia

Albemarle's Curia segment provides contract development and manufacturing services for the pharmaceutical and biotech industries.

8. Albemarle Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Albemarle Corporation's lithium business has a moderate threat of substitutes due to the availability of alternative energy storage technologies, such as lead-acid batteries and fuel cells. However, lithium-ion batteries remain the dominant technology in the electric vehicle market, reducing the threat of substitutes.

Bargaining Power Of Customers

Albemarle Corporation's customers, primarily automotive manufacturers, have limited bargaining power due to the company's strong market position and the lack of alternative suppliers of high-quality lithium.

Bargaining Power Of Suppliers

Albemarle Corporation's suppliers of raw materials, such as spodumene and lithium chloride, have moderate bargaining power due to the company's dependence on these inputs and the limited number of suppliers.

Threat Of New Entrants

The threat of new entrants in the lithium market is low due to the high barriers to entry, including the need for significant capital investment, technical expertise, and established relationships with customers.

Intensity Of Rivalry

The intensity of rivalry in the lithium market is high due to the presence of established competitors, such as SQM and FMC, and the ongoing competition for market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.31%
Debt Cost 3.95%
Equity Weight 69.69%
Equity Cost 12.21%
WACC 9.71%
Leverage 43.48%

11. Quality Control: Albemarle Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WD-40

A-Score: 4.7/10

Value: 1.5

Growth: 6.0

Quality: 8.2

Yield: 3.0

Momentum: 1.0

Volatility: 8.7

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Axalta Coating Systems

A-Score: 4.6/10

Value: 5.8

Growth: 5.6

Quality: 6.9

Yield: 0.0

Momentum: 2.0

Volatility: 7.7

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Quaker Chemical

A-Score: 4.4/10

Value: 5.8

Growth: 6.3

Quality: 3.2

Yield: 3.0

Momentum: 2.5

Volatility: 5.3

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Avient

A-Score: 4.2/10

Value: 5.2

Growth: 3.2

Quality: 4.0

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Albemarle

A-Score: 3.9/10

Value: 8.2

Growth: 3.6

Quality: 2.9

Yield: 3.0

Momentum: 3.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Avantor

A-Score: 3.5/10

Value: 6.3

Growth: 5.8

Quality: 5.0

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

125.19$

Current Price

125.19$

Potential

-0.00%

Expected Cash-Flows