Bank CEOs meet with Trump to discuss Fannie Mae and Freddie Mac - Bloomberg
Investing.com -- Albemarle Corporation (NYSE:ALB) shares surged 6.1% after the lithium producer reported second-quarter earnings that significantly exceeded analyst expectations, despite continued pressure from lower lithium prices.
The global specialty chemicals company posted adjusted earnings of $0.11 per share for the second quarter, substantially beating analyst estimates of -$0.78 per share. Revenue came in at $1.33 billion, surpassing the consensus forecast of $1.22 billion, though still down 7% YoY due to lower lithium pricing.
"We delivered strong second quarter results and are maintaining our previous outlook considerations assuming current lithium market pricing persists," said Kent Masters, Chairman and CEO. "Due to recent cash management actions, we now expect to generate positive free cash flow for the year."
The company’s Energy Storage segment, which includes lithium products, saw sales decline 13.5% YoY to $717.7 million, as a 28% drop in pricing offset a 15% increase in volume. Meanwhile, the Specialties segment grew 5.1% to $351.6 million, driven by a 6% volume increase.
Albemarle has successfully achieved its cost and productivity improvement target of $400 million, helping to offset the impact of lower lithium prices. The company also reduced its 2025 capital expenditure outlook to between $650 million and $700 million.
Cash from operations reached $538 million in the first half of 2025, up $73 million from the prior-year period. The company now expects positive free cash flow for the full year, assuming current lithium market pricing continues.
Albemarle maintained its previous full-year outlook, with projections based on lithium market prices of approximately $9/kg. At this price level, the company expects net sales of $4.9 billion to $5.2 billion and adjusted EBITDA of $0.8 billion to $1.0 billion for 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.