Albemarle Beats Q1 Earnings Expectations Despite Lithium-Driven Revenue Drop

Albemarle Corporation (NYSE:ALB) reported second-quarter results that beat Wall Street expectations, overcoming continued pressure from falling lithium prices.

The specialty chemicals company posted adjusted earnings of $0.11 per share, significantly ahead of the -$0.78 per share analysts had forecasted. Revenue reached $1.33 billion, topping the consensus estimate of $1.22 billion, though down 7% year-over-year due to lower lithium pricing.

Sales in Albemarle’s Energy Storage division, which includes lithium, declined 13.5% to $717.7 million, with a 28% drop in average pricing outweighing a 15% increase in volumes. Conversely, revenue in the Specialties segment rose 5.1% to $351.6 million, driven by a 6% rise in volume.

Albemarle achieved its $400 million cost and productivity savings target, helping to offset lithium market headwinds. The company also reduced its capital spending forecast for 2025 to a range of $650 million to $700 million.

Management maintained full-year guidance, based on a lithium price assumption of $9/kg, projecting 2025 revenue between $4.9 billion and $5.2 billion and adjusted EBITDA in the range of $0.8 billion to $1.0 billion.

• Ben Kallo from Robert W. Baird sets a price target of $60 for Albemarle Corporation (NYSE:ALB), indicating a potential downside of approximately -16.18%.
• Albemarle's second-quarter earnings are expected to show a 13.1% revenue decline year-over-year, with the Energy Storage unit facing a significant sales drop of 28.4%.
• Despite a challenging market, Albemarle's cost-saving measures are anticipated to support profit margins, highlighted by a positive earnings surprise of 71% in the most recent quarter.

Albemarle Corporation (NYSE:ALB) is a global leader in the production of specialty chemicals, focusing on lithium, bromine, and refining catalysts. The company is a key player in the energy storage market, especially in lithium production for electric vehicle batteries. It faces competition from chemical companies like SQM and Livent.

On July 29, 2025, Ben Kallo from Robert W. Baird set a price target of $60 for Albemarle, while the stock was trading at $71.58. This represents a potential downside of approximately -16.18%. The bearish outlook comes as Albemarle prepares to announce its second-quarter earnings, with expectations of a 13.1% revenue decline compared to the previous year.

Despite challenges from declining lithium prices, Albemarle's cost-saving and productivity measures are expected to support its profit margins. The Energy Storage unit is projected to see a significant sales drop of 28.4%, while the Specialties segment may experience an increase of 11.3%. Over the past year, Albemarle's shares have decreased by 19.2%, reflecting the company's struggles.

Historically, Albemarle has missed the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average negative earnings surprise of 136%. However, the company delivered a positive earnings surprise of 71% in the most recent quarter. This mixed performance adds to the uncertainty surrounding Albemarle's future prospects.

Currently, Albemarle's stock is priced at $71.55, having decreased by 4.31% today. The stock has seen a low of $71.01 and a high of $74.29 during the day's trading. Over the past year, the stock has reached a high of $113.91 and a low of $49.43. Albemarle's market capitalization stands at approximately $8.42 billion, with a trading volume of 3,084,052 shares.

Albemarle Corporation (NYSE:ALB) is a global leader in the production of specialty chemicals, with a focus on lithium, bromine, and refining catalysts. The company plays a significant role in the energy storage market, particularly with its lithium products, which are essential for electric vehicle batteries. Albemarle faces competition from other chemical companies like SQM and Livent.

On July 29, 2025, Piper Sandler downgraded Albemarle to a Neutral grade from Underweight, with the stock priced at $72.81. This downgrade, reported by Benzinga, was among the top five for the day. The downgrade comes as Albemarle prepares to release its second-quarter earnings, with anticipated revenue decline of 13.1% compared to the previous year. Despite challenges from declining lithium prices, Albemarle's cost-saving measures are expected to support profit margins.

The Energy Storage unit is projected to see a significant sales drop of 28.4%, while the Specialties segment may experience an increase of 11.3%. Over the past year, Albemarle's shares have decreased by 19.2%, reflecting the company's struggles. Historically, Albemarle has missed the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average negative earnings surprise of 136%.

However, the most recent quarter showed a positive earnings surprise of 71%. Currently, ALB is priced at $72.50, having decreased by 3.04% today, with a trading volume of 1,683,290 shares. Albemarle's stock has seen a high of $113.91 and a low of $49.43 over the past year. The company's market capitalization stands at approximately $8.53 billion. As Albemarle navigates these financial challenges, investors will be closely watching the upcoming earnings release for further insights into the company's performance.

Albemarle (NYSE:ALB) shares dropped more than 4% on Friday after UBS downgraded the company to Sell from Neutral, slashing its price target to $57 from $64, as the firm sees persistent oversupply in the lithium market weighing on the company's earnings through at least 2026.

Drawing on research from its global lithium team, UBS expects lithium prices to remain below $10/kg for the next two years—well under the $17–$18/kg mid-cycle levels that appear to be baked into Albemarle’s current valuation. While modest year-over-year gains in realized prices are still expected, UBS forecasts that lithium will stay in surplus for the foreseeable future, delaying any meaningful price recovery until later in the decade.

This bearish outlook translates into a 2026 EBITDA projection that is roughly 14% below consensus. UBS warns that the market is still pricing Albemarle shares based on overly optimistic assumptions, and that earnings expectations will likely need to reset lower in a “lower-for-longer” pricing scenario.

Despite potential investor interest in buying the dip, the firm sees more downside risk ahead, arguing that estimates need to be brought back in line with a more realistic view of the lithium supply-demand imbalance.

• UBS analyst Joshua Spector sets a price target of $57 for Albemarle Corporation (NYSE:ALB), indicating a -23.25% potential downside.
• Despite a downgrade to "Sell" by UBS, Albemarle's stock recently increased by 7.2%, closing at $70.22.
• Albemarle is expected to report a quarterly loss of $0.80 per share, with projected revenues of $1.21 billion, marking a 15.5% decrease year-over-year.

Albemarle Corporation (NYSE:ALB), a leading specialty chemicals company known for its lithium production crucial for electric vehicle batteries, faces significant challenges in the lithium market. UBS analyst Joshua Spector has set a price target of $57, significantly lower than its current trading price of $74.27. This target reflects a -23.25% difference, leading UBS to downgrade Albemarle to a "Sell" rating.

Despite the downgrade, Albemarle's stock recently saw a 7.2% increase, closing at $70.22, with trading volume higher than average. This rise followed a Jefferies analyst's decision to slightly lower the price target from $85 to $84 while maintaining a "Buy" rating, suggesting some analysts still see growth potential in Albemarle, despite the challenges highlighted by UBS.

Albemarle is expected to report a quarterly loss of $0.80 per share, a significant year-over-year change of -2100%. Revenues are projected to be $1.21 billion, a 15.5% decrease from the previous year. These figures are crucial for investors, as trends in earnings estimate revisions often correlate with near-term stock price movements, as highlighted by empirical research.

Albemarle's stock has seen fluctuations, with a low of $49.43 and a high of $113.91 over the past year. The current market capitalization stands at approximately $8.74 billion, with a trading volume of 5,713,302 shares.

• UBS downgraded Albemarle Corporation (NYSE:ALB) to a "Sell" rating due to ongoing challenges in the lithium market.
• The company's stock experienced a 7.2% increase, closing at $70.22, driven by higher-than-average trading volume.
• Albemarle is expected to report a quarterly loss of $0.80 per share and revenues of $1.21 billion, indicating potential market challenges.

Albemarle Corporation (NYSE:ALB) is a leading global producer of specialty chemicals, with a strong focus on lithium, bromine, and refining catalysts. The company plays a crucial role in the lithium market, which is essential for electric vehicle batteries. Despite its significant market presence, Albemarle faces stiff competition from other major players in the lithium industry, such as SQM and Livent.

On July 11, 2025, UBS downgraded Albemarle to a "Sell" rating, highlighting ongoing challenges in the lithium market, as reported by StreetInsider. At the time, the stock was priced at $74.27. This downgrade reflects concerns about the company's ability to navigate the current market conditions, despite recent positive movements in its stock price.

Albemarle's stock recently experienced a 7.2% increase, closing at $70.22, driven by higher-than-average trading volume. This surge follows a 5.1% gain over the past four weeks. However, a Jefferies analyst adjusted the price target slightly from $85 to $84, maintaining a "Buy" rating, indicating confidence in the company's growth potential despite the challenges.

The company is expected to report a quarterly loss of $0.80 per share, marking a dramatic year-over-year decline of 2100%. Additionally, revenues are projected to be $1.21 billion, reflecting a 15.5% decrease from the previous year. These figures suggest potential challenges ahead, despite the recent positive market performance.

Albemarle's stock has seen fluctuations, with a low of $49.43 and a high of $113.91 over the past year. The current market capitalization stands at approximately $8.74 billion, with a trading volume of 5,713,302 shares. Despite the recent price increase of 4.92%, the company faces significant hurdles in the lithium market.