Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 4 of last 7 quarters
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Albemarle's strong quarter underscores the accelerating demand for lithium driven by stationary storage, a key component of AI infrastructure buildout. The company's raised stationary storage forecasts and tight inventory levels signal robust demand for grid-scale batteries, which are essential for supporting AI data centers and renewable integration. This positions Albemarle as a critical supplier in the AI infrastructure ecosystem.
Albemarle delivered a strong Q2 with net sales of $1.7B, up 31% YoY, and adjusted EBITDA of $858M, up 155%. Energy Storage sales rose 78% YoY on higher pricing, while Specialties sales grew 20% YoY with EBITDA up 61%. The company generated $710M in operating cash flow and $638M in free cash flow. Lithium demand grew 45% YoY through May, driven by stationary storage, and inventories are at near-record lows. The CGP3 plant at Greenbushes restarted on August 1 after a June 9 fire, and Wodgina outperformed on ore availability and recoveries.
Management raised the full-year Specialties outlook to net sales of $1.4B-$1.6B and adjusted EBITDA of $275M-$325M, citing strong year-to-date performance. They maintained total company outlook ranges but expect to come in at the high end of the $20/kg LCE scenario. Energy Storage volumes are now expected at 225,000-235,000 tons LCE, flat to down 4% YoY, due to the CGP3 fire, partially offset by better Wodgina performance. They expect Q3 net sales and EBITDA to decrease sequentially due to lower volumes and pricing, with Energy Storage margins pressured by spodumene inventory timing. Management raised 2026 stationary storage battery production forecast to 900-1,100 GWh and 2030 to 1,500-2,000 GWh, and expects CGP3 to reach full run rate in Q1 2027. They remain focused on cost discipline, capital efficiency, and advancing DLE at the Salar de Atacama.
“Our strong start to 2026 continued in the second quarter, supported by disciplined execution and improving conditions across our key markets.”
on Quarterly performance
“Global lithium consumption was up 45% year-over-year through May, tracking above our forecasted range, driven by continued strength in stationary storage and improving growth in electric vehicles.”
on Lithium demand
“We are improving our 2026 outlook considerations, including raising our specialty sales and EBITDA outlooks due to a strong year-to-date performance and reducing expected capital spending, thanks to ongoing capital efficiency efforts.”
on Outlook
Can you clarify your comments on guidance coming at the top end of the scenario ranges? Which one are you referring to total company or energy storage?
Neal Sheorey clarified that it applies to both, referring to the $20/kg LCE scenario. Market pricing in H1 averaged higher than $20, plus better volume performance and strong Specialties results, pushing toward the high end.
You've noted lithium demand is accelerating higher than expectations and growing faster than supply. What are your latest thoughts on the supply side and if the market requires higher pricing to support new investments?
Kent Masters said demand is stronger than anticipated, with EVs recovering and energy storage 'off the charts.' Supply is behind, keeping inventories tight. He noted that current pricing is sufficient for good projects but not speculative ones, and that supply needs to come on to keep pace with growth.
Could you talk about the constrained supply out of both Africa and China lepidolite? How long would you expect that to last?
Kent Masters said supply is starting to move, with Africa moving faster and one lepidolite mine ramping up. This will add capacity in the back half of the year, but the market remains tight and needs that capacity.