Albemarle Reports Fourth Quarter and Full Year 2024 Results

Core Insights - Albemarle Corporation reported significant financial results for Q4 and full year 2024, with net sales declining by 48% year-over-year to $1.2 billion, primarily due to lower pricing and volumes in Energy Storage [4][6] - The company achieved a net income of $75 million for Q4 2024, a substantial increase from a loss of $618 million in Q4 2023, driven by lower costs and tax benefits [6][9] - Adjusted EBITDA for Q4 2024 was $251 million, reflecting a year-over-year increase of $386 million, attributed to favorable volume growth and productivity improvements [6][9] Financial Performance - Q4 2024 net sales were $1,231.7 million, down from $2,356.2 million in Q4 2023, marking a 47.7% decline [4] - Net income attributable to Albemarle Corporation for Q4 2024 was $75.3 million, compared to a loss of $617.7 million in Q4 2023, representing a 112.2% increase [4][6] - Adjusted EBITDA for Q4 2024 was $250.7 million, up from a loss of $134.9 million in Q4 2023, indicating a 285.8% improvement [4][6] Segment Performance - Energy Storage segment net sales for Q4 2024 were $616.8 million, a decrease of 63.2% from $1,675.1 million in Q4 2023, primarily due to lower pricing and volumes [8][11] - Specialties segment net sales decreased by 2% to $332.9 million, while adjusted EBITDA increased by 144.2% to $72.9 million, driven by productivity benefits [12] - Ketjen segment net sales fell by 17.4% to $281.9 million, but adjusted EBITDA rose by 14.4% to $35.8 million, supported by a favorable product mix [13] Cash Flow and Capital Expenditures - Full year cash from operations for 2024 was $702 million, representing over 60% operating cash flow conversion, primarily driven by working capital management [9] - Capital expenditures for 2024 were $1.7 billion, down by $463 million compared to the previous year, reflecting a strategic reduction in spending [9][23] - The company plans to further reduce capital expenditures in 2025 to a range of $700 million to $800 million, more than 50% lower than 2024 [9][22] 2025 Outlook - Albemarle anticipates a range of net sales for 2025 between $4.9 billion and $5.2 billion, with adjusted EBITDA expected to be between $0.8 billion and $1.0 billion [16][18] - The company projects Energy Storage volumes to increase by 0% to 10% in 2025 compared to 2024, depending on market conditions [14] - The average lithium market price is expected to range from $12 to $15 per kg LCE in H1 2024, down from approximately $20 in Q4 2023 [16][18] Balance Sheet and Liquidity - As of December 31, 2024, Albemarle had estimated liquidity of approximately $2.8 billion, including $1.2 billion in cash and equivalents [25] - Total debt stood at $3.5 billion, with a net debt to adjusted EBITDA ratio of approximately 2.6 times [25]