AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 18/10/2026
Moat31
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 1/4 · Producing resource interests and reserves provide a tangible competitive foundation, but no comparative cost leadership is demonstrated. Aggressive entry and uneconomic Australian conversion expansion limit the strength of the position.
durability · 1/4 · Reserves and deliveries committed through 2029 support continuity, but continuity of supply does not demonstrate durable excess returns. Index-based pricing and realized asset write-offs weaken durability.
customer dependency · 2/4 · A received $350 million prepayment for deliveries through 2029 demonstrates meaningful customer commitment. Broader dependency is unproven because exclusivity, switching costs and customer qualification requirements are absent.
erosion resilience · 1/4 · Production transfers and the 2026 profit recovery demonstrate adaptability, but substantial write-offs, idled conversion assets and aggressive supply expansion show a fragile competitive position through the downturn.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Higher realized Jordan Bromine pricing is favorable evidence. Historical lower selling prices and increasingly index-based lithium pricing show mixed outcomes and do not establish discretionary pricing power.
retention · 2/4 · The customer prepayment for deliveries through 2029 and 2025 volume growth provide indirect operating evidence of continuing demand. They do not establish broad customer retention, renewals or durable switching friction.
margin resilience · 2/4 · First-half operating profit improved substantially in 2026, demonstrating recovery. Historical price weakness and conversion shutdowns show that profitability and asset economics remain cyclical; the recovery alone is not a moat.
contractual freedom · 1/4 · Increasing index-referenced and variable-priced battery-grade lithium contracts constrain unilateral price setting. Disclosed pass-through limitations reinforce weak contractual pricing freedom, although complete contract terms are unavailable.
Predictability32
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 60.60
- Positive FCF years (%)
- 40.00
- FCF margin volatility (pp)
- 13.40
Financial strength37
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 48.40
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 0.00
- currentRatioGrade
- 100.00
- Debt / FCF (x)
- 4.61
- Interest coverage (x)
- -1.77
- Current ratio (x)
- 2.23
Capital allocation49
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- -4.94
- 3-year average dilution (%)
- 0.15
- 3-year average SBC / revenue (%)
- 0.59
- cashConversionGrade
- 0.00
Management50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · 2025 operating cash flow of $1.282 billion against $589.8 million of capital expenditures produced positive free cash flow, and the portfolio sale was completed. These achievements are offset by $726 million of restructuring asset write-offs and mandatory-convertible financing with future dilution. Working-capital release and a prepayment supported cash generation.
incentive alignment · 2/4 · Actual 2023–2025 adjusted-ROIC PSUs paid zero, while relative-TSR PSUs paid 90.1% of target, demonstrating performance sensitivity. Equity incentives support alignment, but annual incentives muted two-thirds of lithium-price effects and paid 151.5% of target. Executive ownership is not established.
execution · 2/4 · Realized volume growth, production transfers, the completed divestiture and improved interim operating profit demonstrate execution. Major write-offs and uneconomic conversion investments materially temper that record. Execution is assessed from operating outcomes rather than management's leadership claims.
governance · 2/4 · Disclosed capital oversight, committee attendance and an adopted related-person transaction policy support functioning governance. Approximately 69% say-on-pay support signals shareholder reservations. Remaining charter supermajority provisions were proposed for removal, but adoption is not established.
Evidence
Ltd., a company incorporated in Australia (“Talison”) that owns the Greenbushes mine, and from our 50%-owned unincorporated joint venture, MARBL Lithium Joint Venture (“MARBL”) in Western Australia, which owns the Wodgina hard rock lithium mine project (“Wodgina”); and (b) through solar evaporation of our ponds at the Salar de Atacama, in Chile, and in Silver Peak, Nevada.
Business — Raw Materials and Significant Supply Sources · Filed 11/02/2026
36 Albemarle Corporation and Subsidiaries Proven Mineral Reserves Probable Mineral Reserves Total Mineral Reserves Amount (‘000s metric tonnes) Grade (Li2O%) Amount (‘000s metric tonnes) Grade (Li2O%) Amount (‘000s metric tonnes) Grade (Li2O%) Lithium - Hard Rock: Australia Greenbushes(a) — — 79,800 1.9% 79,800 1.9% Wodgina(b) — — 51,100 1.3% 51,100 1.3% Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Amount (‘000s metric tonnes) Concentration (mg/L) Lithium - Brine: Chile Salar de Atacama 188 2,643 120 2,385 308 2,270 United States Silver Peak, NV 14 97 64 119 78 115 Bromine: United States Magnolia, AR(c) 2,264 395 2,658 (a) Through our Windfield joint venture, we own a 49% interest in the Greenbushes mine.
Properties — attributable mineral reserves at December 31, 2025 · Filed 11/02/2026
The Company’s actions regarding Kemerton were part of a broader effort focused on preserving its world-class resource advantages, optimizing its global conversion network, improving the Company’s cost competitiveness and efficiency by lowering operating costs, reducing capital intensity and enhancing the Company’s financial flexibility.
Restructuring — management's resource and network optimization rationale · Filed 05/08/2026
The following table details the Company’s equity in net income of unconsolidated investments (net of tax) for the three-month and six-month periods ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Windfield $ 165,835 $ 71,762 $ 259,127 $ 126,748 Other joint ventures (14,271) 6,496 (11,270) 15,796 Total $ 151,564 $ 78,258 $ 247,857 $ 142,544 The Company holds a 49% equity interest in Windfield, where the ownership parties share risks and benefits disproportionate to their voting interests.
Note 4 — equity income from Windfield and other joint ventures · Filed 05/08/2026
It is characterized by aggressive expansion and entry from existing and new players, including automotive OEMs, commodity traders, junior miners, and large, well-capitalized diversified miners.
Business — lithium competition and entry · Filed 11/02/2026
Competition in the global lithium market is increasingly based on index-based market pricing and differentiated via product quality, product diversity, reliability of supply and customer service.
Business — lithium pricing and differentiation · Filed 11/02/2026
As part of this review, the Company made the decision to stop construction of Kemerton Train 3 in Western Australia, and put Kemerton Train 2 into care and maintenance, as the Company determined the current lithium price environment makes it less economical to expand conversion in Australia.
Second Half 2024 Restructuring — uneconomic Australian conversion expansion · Filed 05/08/2026
18 Table of Contents ALBEMARLE CORPORATION AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) Since July 2024, the Company has recorded charges for this plan consisting of decommissioning costs of $13.2 million, asset write-offs of $726.0 million, severance and employee benefits of $53.4 million, contract cancellation costs of $38.4 million and other (primarily consisting of the reclassification of the related dedesignated cash flow hedge from Accumulated other comprehensive loss) of $29.3 million.
Restructuring — realized asset write-offs and other charges · Filed 05/08/2026
We expect sales volume to be relatively flat to slightly down compared to prior year as a result of a fire at our Talison joint venture’s third chemical grade plant in Greenbushes (“CGP3”), offset by strong integrated production, stronger than expected spodumene sales from our Wodgina joint venture and our ability to operate with lower inventory levels.
Outlook — Greenbushes fire and mitigating production sources · Filed 05/08/2026
Factors that could cause actual results to differ materially from the outlook expressed or implied in any forward-looking statement include those disclosed under the heading “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, as well as, without limitation, information related to: changes in economic and business conditions; product development; changes in financial and operating performance of our major customers and industries and markets served by us; the timing of orders received from customers; the gain or loss of significant customers; fluctuations in lithium market pricing, which could impact our revenues and profitability particularly due to our increased exposure to index-referenced and variable-priced contracts for battery grade lithium sales; changes with respect to contract renegotiations; potential production volume shortfalls; competition from other manufacturers; changes in the demand for our products or the end-user markets in which our products are sold; limitations or prohibitions on the manufacture and sale of our products; availability of raw materials; our rights to use water and our usage of water, particularly with respect to our early warning plan at our facilities in Chile; technological change and development; changes in our markets in general; fluctuations in foreign currencies; changes in trade policies and tariffs; political instability affecting our manufacturing operations or joint ventures; changes in accounting standards; the inability to achieve results from our global manufacturing cost reduction initiatives as well as our ongoing continuous improvement and rationalization programs; changes in the jurisdictional mix of our earnings and changes in tax laws and rates or interpretation; changes in monetary policies, inflation or interest rates that may impact our ability to raise capital or increase our cost of funds, impact the performance of our pension fund investments and increase our pension expense and funding obligations; the ability to apply for and obtain government funding to support new operations; volatility and uncertainties in the debt and equity markets; decisions we may make in the future; expected benefits and expenses related to our ongoing and any future operating structure and asset optimization activities; timing of active and proposed restructuring and cost optimization projects; impacts of the situations in the Middle East, the tensions between China and Taiwan and the military conflict between Russia and Ukraine, and the related global responses; performance of our partners in joint ventures and other projects; and the other factors detailed from time to time in the reports we file with the Securities and Exchange Commission (“SEC”).
Forward-looking statement factors — variable-priced contracts, water rights and operational risks · Filed 05/08/2026
Major competitors in lithium compounds include Sociedad Quimica y Minera de Chile S.A., Sichuan Tianqi Lithium, Jiangxi Ganfeng Lithium, Rio Tinto plc, Pilbara Minerals, Tesla and a large number of additional Chinese companies.
Business — named lithium competitors · Filed 11/02/2026
•In January, we received a $350 million customer prepayment for delivery of spodumene and lithium salts through 2029 — an important recognition of Albemarle’s critical role in energy security and our diverse and global footprint.
Shareholder letter — received customer prepayment and deliveries through 2029 · Filed 24/03/2026
During the year, we took decisive actions to reinforce our balance sheet, enhance our portfolio, and position the Company for sustainable growth: •Operationally, the Company delivered $5.1 billion in net sales in 2025, including volume growth of 7% year-over-year, with improvements across all segments, reflecting our competitive resource base, strong customer relationships, and diverse product mix.
Shareholder letter — 2025 sales and realized volume growth · Filed 24/03/2026
Historically, cyclical or secular industry downturns have resulted in diminished demand for our products, excess manufacturing capacity and lower average selling prices, and we may experience similar problems in the future.
Risk Factors — historical downturns, excess capacity and lower selling prices · Filed 11/02/2026
Partially offset by lower deferred profits of the converted inventory sold by Albemarle to third-party customers •$12.1 million decrease attributable to unfavorable foreign exchange impacts from the Windfield joint venture Net Income Attributable to Noncontrolling Interests In thousands Q2 2026 Q2 2025 $ Change % Change Net income attributable to noncontrolling interests $ (19,252) $ (12,296) $ (6,956) 57 % •Increase in consolidated income related to our Jordan Bromine Company Limited (“JBC”) joint venture primarily due to higher pricing Net Income Attributable to Albemarle Corporation In thousands Q2 2026 Q2 2025 $ Change % Change Net income attributable to Albemarle Corporation $ 479,959 $ 22,897 $ 457,062 NM Percentage of Net sales 27.5 % 1.7 % Net income (loss) attributable to Albemarle Corporation common shareholders $ 438,272 $ (18,790) $ 457,062 NM Basic earnings (loss) per share attributable to common shareholders $ 3.72 $ (0.16) $ 3.88 NM Diluted earnings (loss) per share attributable to common shareholders $ 3.52 $ (0.16) $ 3.68 NM •Increase in 2026 results due to reasons noted above •Net income (loss) attributable to Albemarle Corporation common shareholders includes reductions of $41.7 million for mandatory convertible preferred stock dividends in both 2026 and 2025 Segment Information Overview.
Results of Operations — higher realized Jordan Bromine pricing · Filed 05/08/2026
ALBEMARLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net sales $ 1,743,313 $ 1,329,992 $ 3,172,044 $ 2,406,873 Cost of goods sold(a) 1,153,012 1,133,116 2,080,777 2,053,698 Gross profit 590,301 196,876 1,091,267 353,175 Selling, general and administrative expenses 126,353 132,457 263,759 255,959 Restructuring charges and asset write-offs 7,337 4,448 33,203 3,385 Research and development expenses 3,667 12,444 12,837 26,543 Loss on sale of business — — 95,018 — Operating profit 452,944 47,527 686,450 67,288 Interest and financing expenses (30,924) (49,939) (64,045) (98,916) Other income (expenses), net 19,629 (6,559) 73,439 3,691 Income (loss) before income taxes and equity in net income of unconsolidated investments 441,649 (8,971) 695,844 (27,937) Income tax expense 94,002 34,094 115,513 30,116 Income (loss) before equity in net income of unconsolidated investments 347,647 (43,065) 580,331 (58,053) Equity in net income of unconsolidated investments (net of tax) 151,564 78,258 247,857 142,544 Net income 499,211 35,193 828,188 84,491 Net income attributable to noncontrolling interests (19,252) (12,296) (29,138) (20,246) Net income attributable to Albemarle Corporation 479,959 22,897 799,050 64,245 Mandatory convertible preferred stock dividends (41,687) (41,687) (83,375) (83,375) Net income (loss) attributable to Albemarle Corporation common shareholders $ 438,272 $ (18,790) $ 715,675 $ (19,130) Basic earnings (loss) per share attributable to common shareholders $ 3.72 $ (0.16) $ 6.07 $ (0.16) Diluted earnings (loss) per share attributable to common shareholders $ 3.52 $ (0.16) $ 5.87 $ (0.16) Weighted-average common shares outstanding – basic 117,961 117,665 117,907 117,634 Weighted-average common shares outstanding – diluted 136,212 117,665 136,170 117,634 (a)Included purchases from related unconsolidated affiliates of $322.5 million and $158.6 million for the three-month periods ended June 30, 2026 and 2025, respectively, and $450.7 million and $278.5 million for the six-month periods ended June 30, 2026 and 2025, respectively.
Consolidated Statements of Income — first-half 2026 and 2025 operating results · Filed 05/08/2026
We generally attempt to pass through changes in the prices of raw materials and energy to our customers, but we may be unable to do so (or may be delayed in doing so).
Risk Factors — limits on raw-material and energy cost pass-through · Filed 11/02/2026
Year Ended ($ in thousands, except percentages) December 31, 2025 Free cash flow: Net cash provided by operating activities $ 1,282,267 Less: Capital expenditures (589,801) Free cash flow $ 692,466 Operating cash flow conversion: Net cash provided by operating activities $ 1,282,267 Adjusted EBITDA $ 1,097,993 Operating cash flow conversion 117 % 142
Non-GAAP reconciliation — 2025 operating cash flow, capital expenditures and free cash flow · Filed 24/03/2026
We delivered significant operating cash flow of $1.3B, supported by working capital reductions and a customer prepayment.
2025 performance — working-capital reductions and prepayment supporting cash flow · Filed 24/03/2026
Mandatory Convertible Preferred Stock On March 8, 2024, the Company issued 46,000,000 depositary shares (“Depositary Shares”), each representing a 1/20th interest in a share of Series A Mandatory Convertible Preferred Stock (“Mandatory Convertible Preferred Stock”).
Note 9 — March 2024 mandatory convertible preferred issuance · Filed 05/08/2026
Unless converted earlier in accordance with its terms, each share of Mandatory Convertible Preferred Stock will automatically convert on the mandatory conversion date, which is expected to be March 1, 2027, into between 7.618 shares and 9.140 shares of common stock, in each case, subject to customary anti-dilution adjustments described in the certificate of designations related to the Mandatory Convertible Preferred Stock.
Note 9 — mandatory conversion terms and potential common-share dilution · Filed 05/08/2026
The Committee believes CEO compensation in fiscal 2025 was closely aligned with our performance and shareholder experience •2025 Annual Incentive Plan paid out at 151.5% of target payout, reflecting our strong adjusted EBITDA and Operating Cash Flow Conversion Rate performance •Fiscal 2023 PSUs associated with the 2023-2025 performance period paid out at 90.1% of target for rTSR PSUs and 0% for adjusted ROIC PSUs, demonstrating alignment with shareholder experience over the applicable three-year period Pay-for-Performance 2026 Compensation Program Enhancements •In response to shareholder feedback, the Committee approved a revised compensation peer group to better reflect Albemarle’s company size based on revenue and market cap.
Compensation discussion — actual annual incentive and 2023–2025 PSU payouts · Filed 24/03/2026
This approach enabled the Committee to mute two-thirds of the upward and downward impact of lithium prices to align management’s annual incentive pay with actions that they could reasonably take within a year to maximize annual financial performance.
Compensation discussion — muting lithium-price effects on annual incentives · Filed 24/03/2026
Albemarle's 2025 LTIP for its NEOs was comprised of 50% target PSUs, 25% time-based RSUs and 25% stock options.
Compensation discussion — actual 2025 long-term incentive mix · Filed 24/03/2026
2025 SAY-ON-PAY VOTE AND SHAREHOLDER ENGAGEMENT At the 2025 Annual Meeting of Shareholders, approximately 69% of our shareholders who voted cast a favorable vote for our Say-on-Pay proposal.
Governance — 2025 say-on-pay voting result · Filed 24/03/2026
Van Deursen (Chair) The Committee oversees the following: •Management's execution of major capital expenditure projects in support of the Company's strategic plans •Critical path, cost, and risk oversight for capital projects •Recommendations to the Board with respect to new major capital expenditures •Management's efforts to enhance operational efficiency and effectiveness •Health, safety and environment and sustainability programs and initiatives •Emergency response and crisis communication plans •Programs related to natural resource management, and •Annual and long-term goals and targets for the Company’s environmental programs.
Board committees — capital-project and operating oversight responsibilities · Filed 24/03/2026
Widmar Meetings in 2025: 4 Attendance: Each member attended 100% of meetings held in 2025 during which time he or she was a member CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS The Company has adopted a written Related Person Transaction Policy that applies: •to any transaction or series of transactions in which the Company or a subsidiary is a participant; •when the amount involved exceeds $120,000; and •when a related party (a Director or executive officer of the Company, nominee for Director, or a holder of more than 5% of our common stock and any immediate family member of any such person) has a direct or indirect material interest (other than solely as a result of being a director or trustee or in any similar position or a less-than-10% beneficial owner of another entity).
Governance — committee attendance and adopted related-person transaction policy · Filed 24/03/2026
In response to shareholder preferences, this year’s proxy voting ballot includes a management proposal to approve a Charter amendment to remove the remaining supermajority provisions of our Company Charter, which we encourage you to support.
Shareholder letter — proposed removal of remaining charter supermajority provisions · Filed 24/03/2026
Production from the sites placed into care and maintenance has been transferred to other processing facilities.
Operating outlook — completed production transfers from idled sites · Filed 05/08/2026
Following the completion of the sale of our Refining Solutions business in the first quarter of 2026, we report results across two operating segments: Energy Storage and Specialties.
Operating segments — completed Refining Solutions sale · Filed 05/08/2026
