Albemarle's Q1 Earnings Beat Estimates, Revenues Miss on Lower Prices

Core Insights - Albemarle Corporation reported an adjusted loss of 18 cents per share in Q1 2025, a decline from earnings of 26 cents per share a year ago, but better than the Zacks Consensus Estimate of a loss of 62 cents [1] - Revenues decreased approximately 21% year over year to $1,076.9 million, missing the Zacks Consensus Estimate of $1,171.4 million, primarily due to lower prices in the Energy Storage segment [2] - Adjusted EBITDA for the quarter was $267 million, down from $291 million in the prior-year quarter, as a decline in net sales outweighed lower average input costs and cost reduction measures [2] Segment Performance - Sales from the Energy Storage unit fell around 35% year over year to $524.6 million, missing the consensus estimate of $589 million, attributed to reduced pricing despite flat sales volumes [3] - The Specialties segment recorded sales of $321 million, up around 2% year over year but below the consensus estimate of $330 million, with lower pricing offset by increased volumes [4] - The Ketjen unit's revenues were $231.3 million, down roughly 5% year over year and below the consensus estimate of $244 million, as higher prices were offset by reduced volumes [4] Financial Position - Albemarle ended the quarter with cash and cash equivalents of approximately $1,518.5 million, up around 27% from the prior quarter, while long-term debt was around $3,128.7 million, up about 0.3% sequentially [5] - Cash from operations was around $545 million for Q1, increasing more than fivefold from the prior-year quarter [5] Outlook - The company is implementing cost-cutting measures, optimizing its conversion network, and enhancing efficiencies to maintain its long-term competitive position [6] - Albemarle achieved roughly 90% of its $350 million cost and productivity improvement target through April and identified opportunities to reach the high end of the $300-$400 million range [6] - Capital expenditures for the full year 2025 are expected to be in the range of $700-$800 million [6] Additional Financial Projections - Depreciation and amortization expenses are projected to be between $630-$670 million for 2025, with corporate costs expected to be $70-$100 million and interest and financing expenses forecasted at $180-$210 million for the full year [7] Stock Performance - Albemarle's shares have declined by 53.3% over the past year, compared to a 25.4% decline in the Zacks Chemicals Diversified industry [8]