ALB

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:00 a.m. ET Vice President of Investor Relations and Sustainability - Meredith Bandy Chief Executive Officer - Kent Masters Chief Financial Officer - Neal Sheorey Chief Operations Officer - Mark Mummert Chief Commercial Officer - Eric Norris Operator: Hello, and welcome to Albemarle Corporation's Q2 2026 Earnings Call. I will now hand it over to Meredith Bandy, Vice President of Investor Relations and Sustainability. Meredith Bandy: Thank you, and welcome, everyone, to Albemarle's Second Quarter 2026 Earnings Conference Call. Our earnings were released after market close yesterday, and you'll find the press release and earnings presentation posted to our website under the Investors section at albemarle.com. Joining me on the call today are Kent Masters, Chief Executive Officer; Neal Sheorey, Chief Financial Officer; Mark Mummert, Chief Operations Officer; and Eric Norris, Chief Commercial Officer, are also available for Q&A. As a reminder, some of the statements made during this call, including outlook, guidance, expected company performance and strategic initiatives may constitute forward-looking statements. Please note the cautionary language about forward-looking statements contained in our press release and earnings presentation. That same language applies to this call. Please also note that some of our comments today may refer to non-GAAP financial measures. You can find reconciliations in our earnings materials. And now I'll turn the call over to Kent. Jerry Masters: Thank you, Meredith. Our strong start to 2026 continued in the second quarter, supported by disciplined execution and improving conditions across our key markets. Second quarter net sales of $1.7 billion increased 31% year-over-year, driven by higher pricing in energy storage and both higher pricing and volumes in specialties. Adjusted EBITDA more than doubled to $858 million, with our enterprise EBITDA margin expanding to 49%. Importantly, we converted that performance into cash. We generated $710 million of cash from operations, representing a more than 80% operating cash conversion and $638 million of free cash flow in the quarter. We are also on track to reach the high end of our $100 million to $150 million full year target for cost and productivity improvements. These results reflect a deliberate focus on operational excellence and cost discipline. We also benefit from globally diverse and resilient key end markets. 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. Needed supply increases are coming to market slower than demand growth due to limited spodumene availability, temporary disruptions in shipments from Africa and slower-than-expected ramp-up of Chinese lepidolite mines. And as a result, inventories are low and the physical lithium market remains tight. 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. Beyond our 2026 outlook, we are also advancing resource options that can support sustainable growth through the cycle. On today's call, I'll focus on our efforts at the Salar de Atacama, where we're leveraging decades of brine processing expertise to advance direct lithium extraction. We also have opportunities at our Australian hard-rock joint ventures. Wodgina is outperforming on better-than-planned ore availability and recoveries. This is helping offset the impact of a fire at Greenbushes CGP3 plant, which occurred on June 9. CGP3 restarted on August 1. Now I'll turn it over to Neal to discuss recent results and outlook. I will then cover recent market trends and give more detail on our resources before we open the call for Q&A. Neal Sheorey: Thank you, Kent, and good morning, everyone. I'll begin with our second quarter results on Slide 5. Second quarter net sales were $1.7 billion, driven by energy storage pricing, up 73%, while specialties pricing and volumes were up 11% and 8%, respectively. Adjusted EBITDA for the quarter was $858 million, up 155% year-over-year, reflecting higher net sales and our ongoing cost and productivity improvements. Both segments contributed to this strong growth with energy storage adjusted EBITDA up 229% and specialties up 61%. Net income attributable to Albemarle was $480 million, and we reported diluted earnings per share of $3.52. Turning to Slide 6. I'll walk through the key drivers of our year-over-year EBITDA performance. As I mentioned, second quarter adjusted EBITDA increased primarily due to higher pricing in both segments. Due to higher lithium pricing, our cost of goods sold reflects increased Chilean commission payments and higher-priced spodumene inventory. The impact of higher spodumene pricing is offset by increased equity income from our Talison joint venture versus the prior year. Across both segments, cost and productivity improvements helped offset raw material and supply chain cost increases related to the situation in the Middle East. Corporate and All Other reflects a reduction in adjusted EBITDA due to the Ketjen Refining Solutions divestiture, partially offset by favorable foreign exchange impacts. Turning to Slide 7. We are maintaining our total company outlook ranges and expect to come in at the high end of the scenario ranges due to strong year-to-date performance and an increased specialties outlook. These factors offset modestly lower expected energy storage sales volume due to the fire at the CGP3 plant at the Talison joint venture. Our outlook ranges continue to reflect the expected impact of supply chain disruptions related to the situation in the Middle East, which we still estimate at approximately $70 million to $90 million on an unmitigated basis for the full year. In Specialties, we are increasing our outlook due to higher pricing and volumes, which I will cover in more detail on the next slide. The Specialties segment delivered another strong quarter. Net sales were $424 million, up 20% year-over-year, and adjusted EBITDA was $118 million, up 61% year-over-year. Adjusted EBITDA margin was 28%, up 700 basis points from the prior year period. The solid performance in the second quarter was primarily due to higher pricing and volume and favorable product mix as a result of bromine market disruptions related to the situation in the Middle East. As a result, we are increasing our full year outlook ranges, raising net sales to $1.4 billion to $1.6 billion and adjusted EBITDA to $275 million to $325 million. This increase reflects strong year-to-date performance as our teams have worked to capture the upside of increased bromine pricing while mitigating Middle East-related supply chain disruptions through proactive cost management. Our second half outlook assumes stabilization of the bromine market as we've seen pricing normalize since reaching a peak in April, and it reflects continued uncertainty in the Middle East. As such, we expect third quarter net sales and EBITDA to be lower sequentially. Long term, we continue to see margin upside for the Specialties segment as our business and asset diversity continues to deliver positives. Specialties benefits from diverse end markets, including electronics and semiconductors, building and construction, oil and gas and pharmaceuticals. Geographic diversity also complements the platform's end market diversity and adds resilience against regional volatility. Turning to Energy storage on Slide 9. Net sales increased 78% year-over-year and adjusted EBITDA increased 229%, both driven by higher pricing. Second quarter sales volumes were 65,000 tons lithium carbonate equivalent, or LCE, with an average realized price of approximately $20 per kilogram LCE. Realized price was approximately 15% below market pricing due to the dilutive impact of spodumene sales on an LCE basis and the 3-month pricing lag for our long-term agreements. See Slide 24 in the appendix for additional information. For the third quarter, net sales and adjusted EBITDA are expected to decrease sequentially due to lower sales volumes and assuming that pricing is lower sequentially for the quarter as it stands today. Additionally, energy storage margins are expected to decrease sequentially due to the timing of spodumene inventories and also assuming that today's pricing continues for the quarter. As a reminder, it takes approximately 4 months to ship and process spodumene purchased from the Talison joint venture. In a rising price environment, this creates a margin tailwind as we process lower cost inventory while benefiting from higher selling prices. In a declining price environment, that timing effect reverses and is dilutive to margins. For the full year, energy storage sales volumes are now expected to be in the range of 225,000 to 235,000 tons LCE or flat to down 4% year-over-year. This reflects the delay in the CGP3 ramp following the June 9 fire, partially offset by better-than-planned production at Wodgina. As Kent mentioned, CGP3 restarted last weekend and is now ramping back up. Turning to Slide 10. We continue to focus on converting earnings into cash as evidenced by our performance over the last 3 years. First half operating cash flow conversion is at the high end of our long-term target range of 60% to 70%. In the second quarter, we benefited from increased Talison dividends and nonrecurring working capital reductions driven by favorable inventory and accounts receivable. On a full year basis, we still expect cash flow to be impacted by $87.5 million of deferred revenue related to our 2025 customer prepayment, which benefits EBITDA but does not contribute cash and approximately $100 million of spend related to idling Kemerton Train 1. Slide 11 highlights our continued focus on cost and productivity. Thus far, we have achieved approximately $100 million of run rate savings year-to-date. This performance puts us on track to reach the high end of our $100 million to $150 million full year target. Across these gross improvements, roughly 40% has been driven by supply chain and back-office initiatives. The remaining 60% includes manufacturing cost out and incremental volumes and yield. Examples of these productivity improvements include debottlenecking projects at La Negra, JBC and our lithium conversion sites in China. Importantly, these improvements continue to help us offset the supply chain disruptions and cost inflation related to the situation in the Middle East. With that, I'll turn it back over to Kent to discuss the market outlook. Jerry Masters: First, let me highlight the breadth of Albemarle's end markets and why we are generally seeing resilient demand trends. Our portfolio serves key markets across mobility, energy, connectivity and health, and that diversity strengthens our resilience through the cycle. Electric vehicles and stationary storage remain significant long-term growth drivers. Together, these 2 end markets make up about 50% to 60% of Albemarle's total net sales last year. We'll talk in more detail on both these markets in a moment. In specialties, electronics and semiconductors, building and construction and oil and gas remain key market segments. AI-related demand continues to support electronics and semiconductor applications. In oil and gas, clear brine fluid demand has remained stable in the Middle East, while geopolitical uncertainty has incentivized demand in other regions such as the Americas and Europe. We can serve all these geographies from our global asset network, creating resilience in volatile environments like we face today. Let's now turn to a deeper dive into EV and stationary storage markets. Turning to Slide 13. Lithium demand is up 45% through May, primarily driven by continued strength in stationary storage. We are increasing our 2026 and 2030 stationary storage forecast ranges due to that strong demand. We now expect stationary storage battery production of 900 to 1,100 gigawatt hours in 2026, up 11% or 100 gigawatt hours from our prior forecast. We are also raising the low end of our 2030 stationary storage range to between 1,500 and 2,000 gigawatt hours, up approximately 9% from our prior forecast. As a result of this change, we are also raising the low end of our 2030 forecast for total lithium demand by 100,000 tons. Lithium demand growth continues to outstrip supply growth. As a result, we exited the second quarter near record lows in terms of days of lithium salt inventory. Based on mass balance calculations, we also estimate spodumene inventories are at near historic lows and some conversion sites in China have reportedly shut down or reduced production due to the lack of spodumene availability. Lithium demand continues to diversify by application and geography as stationary storage gained share. Slide 14 highlights the strength of stationary storage demand. Global stationary storage production has nearly doubled year-over-year with broad support across most geographic regions. Long-term demand remains supported by multiple secular trends. First, global electricity demand growth is accelerating, led by urbanization, AI and data centers and EVs. With grid upgrades taking multiple years, stationary storage is the fastest and most cost-effective way to support grid reliability. Also, policy support in regions like China, Europe and Australia improves project economics for stationary storage and renewables. We now expect stationary storage to make up about 30% of 2026 global lithium market demand, nearing parity with light-duty EVs. Turning to Slide 15. Year-to-date, global EV sales are up 10% year-over-year. EV sales growth inflected in the second quarter, up 16% versus prior year. European EV demand remains strong, up 31% year-to-date, driven by policy support in key markets like the U.K., Germany, France and others. Europe also benefits from increased model availability and affordability as Chinese OEMs have increased exports and domestic production for the region. In China, growing EV exports and larger battery sizes have helped offset weaker domestic EV unit sales. The rest of the world was the fastest-growing region in the first half, up 90% year-over-year and has overtaken North America as the third largest market, led by growth in Brazil, Australia, India and South Korea. Turning to Slide 16 for an update on our Australian joint ventures. As previously mentioned, Greenbushes' CGP3 plant restarted on August 1. We had previously expected the plant to reach full run rate by year-end. Prior to this incident, the plant was ramping ahead of schedule. However, to ensure adequate contingency for our downstream operations, we've assumed CGP3 reaches full run rate in the first quarter of 2027. Greenbushes is in the middle of a multiyear transformation. Mine optimization studies are progressing well, and we anticipate operational improvements and further brownfield expansion projects. Our primary focus remains on operating the mine safely, and we have good alignment with all partners towards that goal. At Wodgina, operations are performing well, supported by better-than-planned ore availability and recoveries. All 3 processing trains are now operating. Ore quality is expected to remain consistent next quarter before improving later this year as the availability of clean ore increases. As we have highlighted before, these hard rock assets are an important part of our long-term resource position and provide near-term brownfield growth opportunities. Moving to Slide 17. Albemarle has decades of brine processing expertise at Magnolia and Silver Peak in the United States, the Salar de Atacama and La Negra in Chile and JBC in Jordan. That foundational experience informs how we are advancing DLE technology at the Salar de Atacama. Our dedicated team of scientists, engineers and operators have a deep understanding of DLE fundamentals based on more than 10 years of research and innovation. Over that time, we've evaluated dozens of DLE technologies, including both proprietary and third-party solutions. Our highest and best opportunity to leverage DLE is in the Salar de Atacama based on the large scale and high grade of that world-class asset. At the Salar, we have progressed from scientific research and lab scale work to pilot validation and integrated pilot testing. In March of 2026, we submitted an environmental assessment permit for a DLE project at the Salar de Atacama. Our phased approach to DLE is intended to support future growth and sustainability while leveraging Albemarle's existing infrastructure and process chemistry expertise. We intend to advance this project prudently, subject to regulatory approvals, community consultation and technology validation. On Slide 18, we show our phased DLE concept at the Salar de Atacama. Our current environmental permit submission seeks authorization for up to 6 trains. The planned investment will start with 1 train as we prove the technology at a commercial scale. Under this scenario, lithium-rich brine would be extracted from the Salar through pumping wells and sent in parallel to the existing evaporation ponds and the proposed DLE plant. The concentrated lithium solution from the DLE plant would be combined in the final solar evaporation ponds and further concentrated before being converted at La Negra into battery-grade lithium carbonate. Our proposed DLE plant does not use solvent extraction, meaning that we retain the option to reincorporate the lithium depleted brine back into the Salar through dedicated wells. The Atacama integrated pilot plant has operated for more than a year, or over 3,000 operating hours, giving us valuable data and confidence in our process design and scale-up capability. Recoveries are critical to efficiency and sustainability, particularly in brine deposits. This is something we've worked on for years. A conventional pond system recovers about 30% to 40% of the lithium in extracted brine. With Albemarle's Salar yield improvement technology, we've been able to increase recoveries to 50% to 60%. Our DLE pilot plant has demonstrated recoveries of over 90%, allowing us to extract more lithium with a smaller footprint and more fully utilize this world-class resource. Our team is also focused on minimizing water footprint in Chile. Approximately 85% of processed water is recycled at the current DLE pilot plant. Our DLE project is consistent with our broader strategy, leverage our world-class resources, technical expertise and existing infrastructure to create durable long-term value while improving sustainability outcomes. In summary, Albemarle delivered another strong quarter, including net sales of $1.7 billion and cash from operations of $710 million. We are improving our 2026 outlook considerations by increasing specialties outlook, optimizing capital expenditure spend and tracking toward the high end of our cost and productivity target. We are also capitalizing on long-term secular growth opportunities in energy transition and energy resilience, including strong global grid storage demand. Finally, we remain focused on execution and disciplined capital allocation to enable us to grow ratably through the cycle. With that, I'll turn the call over to the operator for Q&A. Operator: [Operator Instructions] Our first question comes from David Begleiter with Deutsche Bank Securities. David Begleiter: Kent and Neal, can you just 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? Just some clarification, that would be great. Neal Sheorey: David, this is Neal. It's really both, and maybe I can clarify that a little bit. So we were referring to the $20 per kg LCE scenario. And actually, if you -- there's a couple of reasons why we say that we're towards the top end. First of all, if you look at market pricing so far this year in the first half of the year, it has trended actually on average a little bit higher than $20. So naturally, that pushes us towards the higher end of the $20 range. Then in addition to that, obviously, we've had a little bit better volume performance in the first half of the year. We've been working on our cost and productivity improvement. And at least at an enterprise level, you had the very strong performance from specialties, particularly in the second quarter. So for all of those reasons, at an enterprise level, if pricing had been at that $20, we would be towards the upper end of that range in the first half of the year. And then the same would be true for the Energy Storage segment as well. David Begleiter: Very helpful. And Kent, just on a potential government funding for lithium, there's been an increasing talk about the government focused on critical mineral supply chain and shoring that up in the U.S. Can you talk about where you stand on those discussions. Jerry Masters: Okay. So look, there has been a lot of talk about it in discussions, and we've talked to the government quite a bit. So we've been involved in that process for quite some time. We don't have anything to tell you about today that involves that. So -- but it continues around critical minerals. Lithium is probably not the highest priority across all those critical minerals, and you probably see that for the projects that they've announced. But we have conversations, we're talking to them, but we have nothing to tell you about today. Operator: Our next question comes from Patrick Cunningham with Citi. Unknown Analyst: This is Rachel on for Patrick. So you've noted lithium demand is accelerating higher than expectations and growing faster than supply. So curious to hear kind of your latest thoughts on the supply side of the equation and if the market requires higher pricing levels to support new investments. Jerry Masters: Okay. So you kind of said it. So demand is a little stronger than we were anticipating. It is strong. There's a bit -- it was -- EVs were weak in the first quarter, but they kind of trended back in the second quarter and then energy storage demand is kind of off the charts. And that -- and so with EVs coming back, there is strong demand. Supply is a little behind that. So when we look out, say, for the year, there is supply coming on and you always need that supply to come on because this market is growing. It's a little -- it's behind demand. So that's probably why you see inventories getting down to levels which we haven't seen for a while. So the inventories of the physical market is very tight. And then you'll see -- there are projects on the board. We expect investments to come. You need that to keep up with supply. And then your question about is pricing driving that. I don't mean we're in a range where good projects will -- people will invest in good projects and more speculative projects, probably not. So it's not a bad place from a pricing perspective. I don't think it's driving projects that weren't planned, and it's not taking projects that were planned off the books. So it's not a bad place to be. Unknown Analyst: Got it. And you've raised both the 2026 and 2030 stationary storage demand forecast. So curious to hear if anything changed specifically in your customer discussions or project pipeline visibility to give you the confidence to increase the longer-term outlook. Jerry Masters: Yes. Look, I think it's just the confidence that we see in the projects that are happening, the supply chain that's getting built out and all the activity. Eric, maybe you want to talk about any specific customer discussions that give us more confidence. Eric Norris: Well, most of the chemistry in question that we're talking about that's driving this is driving our demand is iron phosphate chemistry comes out of China. So our customer discussions there indicate a market that is tight and struggling to keep up with installation demand. Installations are exceeding actual battery production. We can track sort of about a 1-year lag between when lithium is sold and when it goes into an installation. And the latter the installation number that's been announced, is larger than what's being produced today. And that drives a healthy market, and we're seeing that in our customer base in China right now. Operator: Our next question comes from John Roberts with Mizuho. John Ezekiel Roberts: Could you talk a little bit about the constrained supply out of both Africa and China, lepidolite. How long would you expect that to last? Jerry Masters: Yes. So that's been the story over the last year, I would say, and it's starting to move. So you see that starting to move, and that will go into the back half of the year of a bit of additional supply. I think it's a little different. Africa is moving a little faster. Lepidolite, I think we've seen one mine come back on and start to ramp up. So that will add capacity. But as we said, the market is pretty tight. Inventories are low. We kind of need that capacity. John Ezekiel Roberts: And then what's the sequential price assumed for bromine in the specialties guidance? Neal Sheorey: John, this is Neal. So look, it's hard to give you a specific price on bromine in the -- for the third quarter, mainly because as we've shown you before, there is a bromine index in China, but only about 1/3 of our volume tracks that bromine index. One thing I will say about the Chinese bromine index, which you can observe is that index hit a peak back in the second quarter and has come back down to levels today that are probably closer to where we started the year. So that's one data point. The other data point is that, look, I think supply-demand fundamentals were quite a bit tighter in the first half of the year due to the situation in the Middle East and as some supply chains were reorienting. So right now, what we're assuming is that there's a little bit more normalized kind of supply-demand fundamental in the back half of the year. But I will admit, we're watching this closely because obviously, the situation in the Middle East hasn't gone away. So generally speaking, we're assuming that pricing kind of holds where it is today, but it is a live situation. Operator: Next question comes from Arun Viswanathan with RBC. Arun Viswanathan: I guess, first off, I just wanted to ask about the volume picture. So maybe we should get some initial expectations for volume for next year. I guess you will be facing maybe some limitations this year just given the fire, but then that could be offset by Wodgina extra production. So do you expect to grow volumes next year and maybe kind of in the low single-digit range? Or how should we think about how volumes evolve from here for energy storage? Jerry Masters: Yes. So I'll start with that. But I would say, I mean, this year is -- I think we'll get close to offsetting the fire at Talison with extra performance at Wodgina. So we were kind of tight there. We kind of pulled back on our volume estimates a little bit, but we think we can cover that for the most part. And that will make us kind of flat year-over-year just because of our capacity. We will have growth into next year as CGP3 ramps. So we'll get -- we won't get the full year of it probably next year, I mean close. And we're saying we get close to full production in the first quarter, then you'd see that annualizing as we go forward. So we'll have room for growth next year. It will be -- I mean you can do the math on what that looks like. So it's high single digits. Neal Sheorey: Yes, Arun, and maybe I can point you back to, this is a slide that we put out, gosh, I think it might have been 2 quarters ago. So I don't expect you to remember this. But if you follow our 15% CAGR volume growth that we've said we're doing from '22 to '27, that would put 2027 in the range of 240,000 to 260,000 tons LCE. And I would say now that CGP3 is back and ramping back up, we're back on that trajectory. So that's maybe a way to think about 2027. Arun Viswanathan: Okay. Great. Appreciate it. And then just as a follow-up, just on the pricing outlook, you guys had mentioned that the market is relatively tight, energy storage demand is very robust. But we have seen anticipatory -- would you agree that we've seen anticipatory price declines ahead of new supply coming back online, specifically the lepidolite as well as the Zimbabwe tons. Do you expect that decline -- the recent price declines to kind of plateau and moderate as you go into the second half? Or do you see continued price declines possible, especially given the low inventory levels that you mentioned. So why have prices, I guess, been going down? And do you expect that to stop? Jerry Masters: Yes. So we're not going to tell you what we think the price is in the quarter. So we've not been very good at predicting that. But it's a very speculative market, driven by traders in China for the most part with the inventories tight, the demand that we've seen, you do have a forecasting volumes coming back on. But again, with the growth rates we see, we need that. Otherwise, you're going to get into a more difficult problem. But price, it was up, it has come back. But it's kind of, I'd say, consolidating, right, around the price where it is right now, which is around $20 or so, which is not -- that's not a bad price as we've talked about. So I can't speculate as to what it's going to do. It's very heavily driven by trading and someone's view of volumes coming on. We do see those volumes coming on, but we need that with the growth rate with the 45% growth, you're going to have to have supply coming on or you're going to -- it's going to get very, very tight. Operator: Our next question comes from Laurence Alexander with Jefferies. Laurence Alexander: So given your progress with the DLE at the Atacama, can you give your perspective on the attractiveness or not of projects elsewhere in Chile? What would you need to see for those to move up your priority list? Jerry Masters: Well, I would look, DLE, we've done a lot of work over time, and we've kind of prioritized the Salar de Atacama for that. So that's our focus. We still got technology development work to do, but we feel pretty good about it enough that we've submitted the permit, and we've kind of built a plan around that. So I think I want to execute on that project first and then see where that goes against other resources in Chile or in other places in South America or wherever. I think the -- we're getting more confidence in DLE and brine resources. And -- but we want to execute against the project in the Salar de Atacama, and then we'll be able to talk about that. Operator: Our next question comes from Joel Jackson with BMO. Evan McCaul: It's Evan on for Joel. Your cash buildup has been quite large recently, and some of your peers have announced restarts and project go ahead. When would we expect you to go ahead with some of your brownfield projects or shorter of that? How does the company want to use your extra cash? Jerry Masters: Okay. So let me start with projects. So I mean, we are kind of -- we're executing against that now. So you see CGP3, that we would consider that one of those. It's online now and ramping up after we had some issues there. And then the other projects, we have not gone through an FID. We've not agreed those projects with our partners either. But there's potential for doing projects both in Wodgina and at Talison additional. But we need to ramp CGP3 before we take that on. Again, we'll have to agree with our partners and get to FID. So that's going to take us a little bit of time, but that would be our next phase of growth. And then further out, the Salar de Atacama project that we're talking about is another. And then we have Kings Mountain. And then further, further out, we have Antofalla. Those are all resources we own. So there's -- potential there could be other resources that become available. So we expect your cash question. So we want to have a strong balance sheet and we've been doing that. We've used it for that. These growth projects are a big opportunity for us to invest. And we think given brownfield nature in jurisdictions that we know with partners that we know, with technology that we know, we feel that those are low-risk, good return projects. But that said, we're always evaluating projects against all alternatives for the use of capital, and we do that every time we look at a big investment. Evan McCaul: Great. And would you mind providing an update on the revamp of CGP3? Just any color you could give on the revamp. Jerry Masters: Well, it's been up about -- back on about 5 days now. And it's operating at reduced rates, but it's operating, I think, reasonably well as what we would have expected to be 5 days in from a restart. Operator: Our next question comes from Vincent Andrews with Morgan Stanley. Vincent Andrews: Neal, can I ask you on Specialties, just to give us a little bit of help bridging things into '27 sort of all else equal. How do we think about the normalization of the bromine price versus the incremental cost, the $70 million to $90 million, which I assume is largely in Specialties. It would seem like for the year that the higher price has offset the $70 million to $90 million. But will that $70 million to $90 million go away in 2027, assuming this resolution of the conflict by then? And then within the non-Chinese index business, has there been any benefit to you from the disruption caused by Iran in terms of you gained any market share? Have your prices gone up in that part of the business? Or is that -- we're really just talking about the Chinese index volume that we need to think about? Neal Sheorey: Okay. A lot in there, Vincent. Let me answer maybe the first half starting there, and then I'll pass it over to Eric to talk about the market piece of things in the back half of the year or in the back half of your question. Look, with regards to Specialties and probably too early for me to say what's going to happen to that $70 million to $90 million impact. I would just be guessing at the situation in the Middle East. Obviously, if things resolved there. Certainly, we would hope that some of that cost escalation would go away or some of those supply chains will get back to kind of a normal position. So that would be helpful to us. But I would say the team has done a really, really great job of managing through the situation in the Middle East so far in the front end of this year. And so that $70 million to $90 million, we didn't really see a lot of that impact yet in the first half of the year. But again, the situation is still a live dynamic. And so that's why we continue to say we still think that there's this potential through the year. With regards to margins in 2027, you're right that the bromine pricing has really increased here in the first half of the year due to some exogenous factors that has pushed our margin up pretty considerably. We're using this moment right now to continue to focus on cost and productivity, specifically in the specialties business to get the profitability of that business back into a better place than where it has been in the last year or 2. So I think even though you might have pricing kind of coming off maybe potentially as we go through 2027, certainly not as strong as we've seen in 2026. I do think -- I do expect that some of the cost and productivity that we're working on is going to shine through. And so net-net, I think that's why we continue to say we're on this multiyear journey of improving margins in Specialties. And we'll have more to say, I think, as we go through this year and start preparing for 2027. Maybe with that, I'll pass it over to Eric to talk about the market. Eric Norris: Vincent, you may or may not know this, this is a fairly diverse business. The upstream part of the business, which is elemental bromine and HBr, that's the part that is traded in the China market and -- or you see a price index rather, I should say, in the China market, the SunSirs Index. That's well less than 1/3 of our business. And so any -- and certainly, that skyrocketed up, that provided some opportunities and there was a benefit to that. But the vast majority of our business is downstream. It's the derivatives we sell downstream. And those have localized to their markets, pricing dynamics, in some cases, limited competition where we have a differentiation play. And in other cases, a regional play where we have a regional ability to supply that others can't, particularly in a volatile market. We're able to take advantage of that, both from a volumetric basis and in a few cases, price based. But the balloon, if you will, of pricing you're referring to is a pretty isolated part of our cost structure. The other thing we do across this business is it goes to the $70 million to $90 million, it's a second pricing mechanism. It's the pass-through of higher raw material costs. That obviously ebbs and flows with what those raw material costs will do over a period of time. That's separate and apart from what you saw in the upstream part of the business in China. I don't know if that helps, but I think it's a more diverse business. And as we go forward, I just want to emphasize we are looking at how we significantly improve the productivity and cost in this business and optimize some of those profitabilities in what is a pretty complex downstream set of derivatives with some good opportunities to do that, that we help -- that we expect to frame a more improved profitability going forward. Operator: Our next question comes from Joshua Spector with UBS. Joshua Spector: I was wondering if you could share some of your thoughts around some of the China battery tax breaks and how that might impact lithium demand, if at all? And if that has any ability on an ability to pay for lithium into that market. Just curious how you'd see that play out. Eric Norris: I'm sorry. Could you repeat the question again, I'm sorry. It was with regard to China, could you repeat it? Joshua Spector: China tax breaks specifically on batteries, how you see that impacting China demand, if at all, and how that potentially impacts the ability to pay for lithium? Eric Norris: Yes. I would say what we are seeing in the market, particularly on the grid storage side is that any changes in tax, there's been a consumption tax change. There's been a rollback of VAT on exported batteries that's phased in has been overwhelmed by demand. Yes, there have been moments of time where I think people are trying to get orders in before certain things expire, but the demand has been so strong that it has offset really any impacts we're seeing there that are of significance. And so -- and that's on the stationary storage side. There have been changes on the EV side as well, and that has led to a change in incentive regime. That has pushed actually towards higher energy density batteries, which has helped increase the gigawatt hours even as unit sales have been lower this year, although now recovering after a pull forward demand into last year in that incentive regime. Joshua Spector: That's helpful. And if I could just ask on volume growth into next year, I mean, given that's out of Australia, should we assume that, that's primarily spot volumes, so your mix will shift that way. Or are there any other conversations happening on the rest of your volumes to perhaps get more of that back into the contract type structure? Jerry Masters: It's a -- well, it's kind of hard to say, but it's probably a mix across the portfolio, right? So it'd be more -- there will be probably more spot than some of our contract volumes. So I wouldn't assume it all goes spot, but it would -- it's probably the same mix of our normal portfolio. Eric Norris: Yes. Well, I would say there are 2 things. I think that might be the right -- the answer to your immediate question maybe gives an opportunity to make a broader point, which is there are 2 things that are driving our mix that are going to result in a higher proportion of volume. It's either spot or sold under shorter duration contracts. One is China is growing faster than the rest of the world. And the other is that generally, spodumene is done not on long-term contracts. It's done on a market base or shorter term. We do have some longer term, but they're not done under this sort of floor ceiling basis. They're done on a market basis. So as a result, that percentage of contracts that we have that are under -- that we refer to as long-term agreements with floors and ceilings has become slightly smaller because of those 2 mix phenomenon that's going on in the market. Operator: Our next question comes from Matthew DeYoe with Bank of America. Matthew DeYoe: I have 2. So first, Eric, global lithium demand tracking 45%, clearly very strong. And I know this is no easy task. But when you look at the initial range given on the year, particularly the plus 15%, I mean, where do you think you were most strong or overly cautious? And is that still like a looming threat as it relates to potential deceleration? Or do you think that has been debunked? And then on the DLE plant, just conceptually, is the goal to increase concentrations of lithium before it hits the brine ponds where you're removing magnesium? Like can the DLE plant operate independent of the brine ponds? Or is it just an added part of the loop? And if it's the latter, what's like the net economic benefit between added OpEx and added recoveries? Eric Norris: I can answer the first question, and I'll let Kent answer the second one. So with regard to where we were most wrong, look, I think we're honest when we gave guidance at the beginning of the year and told you where we think we could be wrong, which was the growth in grid storage. We've come off a year that, frankly, surprised us in the prior year, 2025. We didn't -- the rate of growth, somewhat driven by AI, also driven by grid reliability and finally driven by renewables growth was incredibly strong last year. And we were redoubling our efforts to better get underneath the hood of that. This is a market that's new. It's supplied largely, as you know, LFP out of China. So there was some effort on our part to get our hands around that, and that put that range on that. The upper end of that range was, if you will, sort of a sustained momentum coming out of '25 and the lower end of the range was a pullback. The pullback didn't happen. And I think what -- another factor you have to remember is the policy plays a role here, incentives, tariffs, geopolitical aspects, those were unknowns to us as well. And for the prior question about did any tax headwinds slow down demand, they did not. Those were things we needed to see in the market before we could get comfortable with the higher end of the range. Grid storage or stationary storage in general, at a point where it's going to start to become as big a part of this market potentially as light-duty vehicles, EVs. So it's we have a higher degree of confidence around that now, I would say. Do you want to answer the DLE question, Kent? Jerry Masters: Yes. So I mean you see from the chart we put out. So it's a hybrid approach that we're taking. So we're still trying to leverage the solar evaporation in the pond system and the assets that we have, but we'll take a side stream from the normal pond system, run that through DLE, concentrate it and then put it back into the pond system to kind of finish it. So it's a hybrid system. It's a new approach. It's not full DLE. You could run full DLE technically, but we have those assets. And for the efficiency, I mean the solar evaporation is a very efficient way of doing this, and we're kind of kicking that. We're trying to leverage both the solar evaporation and the technology to get us more volumes and lower pumping rates, which allows us to get those more volumes. Operator: Our next question comes from Kevin McCarthy with Vertical Research Partners. Kevin McCarthy: My first question is on inventories. Can you provide an update on where your own inventories are on a unit basis relative to what you would consider to be optimal. And then externally, would welcome any thoughts that you have on inventory levels throughout the supply chain. Neal Sheorey: Kevin, this is Neal. I'll start on the first part, and then I'll pass it over to Eric to talk about what he's seeing in the overall supply chain. Look, our inventories, we certainly ended the quarter lower than normal. You probably have done the calculation around our working capital. We tend to think about our working capital running at about 25% of sales, but we ended the second quarter more like 19% of sales. And a good bit of that is because we ran into our inventory or we consumed some of our inventory in the quarter, part of that being because of the strong demand that we saw, part of that being because of the CGP3 fire that happened at the beginning of June. And so we were able to pivot into our inventories to be able to supply the market. So where I would put our current inventories are probably historically on the low side, and we'll need to build that back up, obviously, to be able to navigate the back half of the year, but then also be prepared for 2027 as well. Maybe I'll pass it over to Eric then to talk about the market inventories. Eric Norris: This follows the -- on the market side, follows the narrative that Kent said earlier and what is physically a very tight market. On the carbonate side, in particular, it's under 3 weeks of inventory in the upstream sort of converter cathode arena. And in hydroxide, it's under a month. Those are levels that at a month, we would -- for both either of those, we would have declared a tight market. Now we're under that. So it's an illustration of a market that is quite tight at the moment. As you move downstream, we have indication. It's a little more opaque, but we -- our take would be that battery inventories are also not that high either. That would make sense if you pick that with the comments I made on stationary storage earlier where installations are exceeding battery production. Basically, the material as soon as it's made is going out into an installation. And similarly, while EVs has been weak, I mean, the main part of this market now is particularly out of China has become the LFP market, and that's being driven by this -- very much by the stationary storage dynamic. So net-net, a very tight market. Kevin McCarthy: It's very helpful. And maybe a good segue to my second question, Eric, on energy storage. I appreciate the detail you set forth on Slides 13 and 14. If I did my math correctly, the new 2030 range, after the doubling, let's say, this year, it implies, I don't know, a mid-teens sort of a CAGR, which strikes me as relatively conservative. Just curious as to what kind of visibility or how conservative you think that medium- to long-term glide path is on the energy storage side. Eric Norris: Look, I mean, I'll pair your question with an earlier question, Kevin, that focused on how we were cautious at the beginning of this year. I think we've gotten to a point where we're confident -- we've gotten more comfortable with our demand projections for this market in the next couple of years. As for the next 5 years, I think we're going to have to spend more time working on that. This is a market that -- the trend is favorable in that the market is proving stronger than we thought throughout. I don't know that's going to be the case for sure. This is our best estimate at the moment. Operator: Our next question comes from Chris Parkinson with Wolfe Research. Harris Fein: This is Harris Fein on for Chris. Just with the EBITDA bridge on Slide 6, it looks like COGS were about a $150 million headwind. And that includes the spodumene price flow through the Chilean royalties and the productivity. Are you able to parse out those 3 components? And how should we be thinking about the quantum of the sequential spodumene inventory impact into the second half? Neal Sheorey: Yes. Look, I won't give you exact numbers around what drove COGS around all 3 of those items. But you can imagine that the spodumene lag or the spodumene inventory impact is the largest portion of the COGS driver that usually is the case for us. In terms of where -- how to think about maybe the spodumene cost lag as you go into the third quarter, look, the average market spodumene price in the second quarter was about $2,500, somewhere around there per ton thereabouts. And I think right now, we're probably in the $2,000 a range kind of case. So -- and again, remember that it takes about 4 months for spodumene to move through our inventory system and eventually get into salt and then to the customer. So take all of that into consideration that you will see this higher-priced spodumene rolling through our income statement in the third quarter. And that's just naturally because of where market prices were in the second quarter. Harris Fein: That's helpful. And I'll take another shot at the question someone asked earlier. Just CapEx is coming down, but it looks like the supply-demand gap is actually widening -- you're generating a healthy amount of cash. The balance sheet is pretty clean. So in terms of incremental uses of cash, are we still thinking debt pay down? Is it more build cash and preserve optionality? How should we be thinking about that? Jerry Masters: Yes. I think -- I mean, I said it before, so you're probably going to get the same answer, but we want to have a conservative balance sheet. We do at the moment. So there's not a whole lot of debt to pay down right now at the moment. We do have growth projects. So capital is coming down. I think of that more as capital efficiency. We're getting more and more focused on trying to drive efficiency in that, and we've been on that now for a couple of years. And we're -- I think we're getting better at that. But then there'll be growth projects that we layer. We've talked about brownfield projects. So there's a couple of brownfield projects we've got. We've talked about the Salar de Atacama. You know about Kings Mountain. So we have a portfolio of growth projects in the queue, we've just not really kicked off any of those at the moment. So we're not spending heavily against that. But there is -- we do have good growth projects. Again, as I said before, in jurisdictions we know in technology, we know and with partners that we know. So it is -- we feel pretty good about those projects going forward. So that's going to be where you see our focus. But again, we'll compare that against everything else, all the other alternatives, including our own shares. And we always look at that when we do a big investment, but that doesn't change. Operator: Our last question comes from Mazahir Mammadli with Rothschild & Co. Mazahir Mammadli: Just wanted to ask about lithium production. The Wodgina production surprise, should we take it as a bit of a one-off? Or is it a structural uplift in the production in ore quality? And on CGP3, basically, the Q1 '27 ramp-up timelines, it looks like it doesn't represent a massive slip versus the pre-fire expectations. Does that mean before the fire, you were kind of running ahead of the schedule on the ramp-up? Jerry Masters: Yes. So okay, Greenbushes first. You may have to remind me of the other question. But we were running a little bit ahead. And now this is our risk-adjusted view of that. So it's basically -- we just slipped the schedule from where we were by the outage. So the outage period, we've kind of shifted to that. That gets us to the first quarter. As we said, we've been up 5 days now. The restart, all that is going well. We're running at reduced rates. So we're back on a ramp schedule. And we -- that's our best guess is that first quarter. That's kind of all I can say. And sorry, can you remind me of your -- oh, Wodgina. Mazahir Mammadli: Yes. Jerry Masters: Yes. Look, that's -- we were working toward better ore, and we -- so that was in the plan. We just got there a little sooner. We're a little bit more efficient in getting there. We still got to work through some of that, and we expect later to get even better quality ore. So it was the plan. We got there a little early, and it's fortunate that it was at a time when it offset the fire at Greenbushes. Mazahir Mammadli: All right. And maybe if I could get your view on the supply-demand balance, specifically, what's your thinking of the impact of production restarts projects such as Bald Hill that has been restarted recently. Do you think that's enough to make a dent in the supply-demand balance? Jerry Masters: So you see that you've got 45% growth, right, in demand. So you need some supply to keep up with it. So what we see right now, we're well -- we're behind that curve at this part of the year, which is why I think you see inventories being tight. Some of those coming on, lepidolite, the African stuff, will make a bit of a dent in that, but you need 45% to stand still, and it's hard to see getting 45%. Operator: That's all the time we have for questions. I will now pass it back to Kent Masters for closing remarks. Jerry Masters: Thank you, operator, and thank you, everyone, for joining us today. Let me leave you with this. We continue to execute with discipline. Our end markets are strong, growing and increasingly diverse, and we are progressing growth options focused on our world-class low-cost resources. We remain focused on operational excellence, disciplined capital allocation and the durable competitive strength that set Albemarle apart. I look forward to sharing more milestones and successes with you in the coming quarters. Thank you. Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect. Before you buy stock in Albemarle, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Albemarle wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Albemarle (ALB) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Sigma Lithium (SGML) stock is in focus ahead of the miner’s fiscal second-quarter earnings scheduled to be released before the market opens on Aug. 14. Consensus is for the pure-play lithium producer to record $0.15 in earnings per share (EPS), which would represent a remarkable 188% increase on a year-over-year basis. A $20 Billion Reason Why Intel Stock Is in Focus Mark Cuban Says If You Win The Lottery, Don’t Take The Lump Sum — And Tell People Who Ask for Money No, But ‘Be Nice. No One Likes a Mean Billionaire’ Ahead of Applied Materials Earnings, Here's What Barchart Data Says Comes Next for AMAT Stock Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Heading into the quarterly release, Sigma Lithium shares are down a concerning 50% versus their year-to-date high in early May. For those who haven’t thrown in the towel on SGML shares due to their massive underperformance in 2026, the good news is that the options traders are betting on some recovery in the near term. According to Barchart, the put-to-call ratio on contracts expiring Aug. 14 sits at 0.19x currently, indicating a very strong bullish skew ahead of the company’s Q2 results. In fact, the upper price on those options contracts is set at $12.47 as of writing, signaling potential for just under a 10% surge after the quarterly release. That said, Barchart disagrees with the options market optimism, as evidenced by the average “64% SELL” opinion on Sigma Lithium, which suggests technical momentum isn’t in its favor heading into the earnings event. Despite bullish options pricing, investors should note that Sigma Lithium stock is currently more expensive to own than its key public rivals. At the time of writing, it’s trading at a price-to-sales (P/S) ratio of more than 12x versus less than 3x for Charlotte-headquartered rival Albemarle (ALB). On the flip side, however, insiders have aggressively loaded up on SGML in the trailing 12 months, recording a total of 60 buy transactions against only 14 sells. This suggests strong insider conviction in Sigma Lithium’s long-term growth prospects despite its premium valuation relative to industry peers. It's also worth mentioning that Wall Street firms remain bullish on Sigma Lithium for the remainder of 2026. The consensus rating on SGML stock sits at “Moderate Buy,” with the mean price target of nearly $22 indicating potential upside of more than 45% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Interested in Albemarle Corporation? Here are five stocks we like better. Albemarle delivered a strong second quarter: Sales rose 31% year over year to $1.7 billion, adjusted EBITDA more than doubled to $858 million, and free cash flow reached $638 million, supported by higher lithium prices and stronger Specialties results. Lithium demand and pricing remain supportive, but Energy Storage volumes are expected to be flat to down 4% in 2026 because of the Greenbushes CGP3 fire. The plant restarted on Aug. 1 but is not expected to reach full production until the first quarter of 2027. Management raised its Specialties and stationary-storage outlooks as bromine pricing and volumes outperformed and global lithium consumption grew 45% through May. Albemarle also advanced its Atacama direct-lithium-extraction project, with pilot recoveries above 90%, subject to further approvals and validation. Albemarle’s Blowout Quarter Shows Why Lithium Still Matters Albemarle (NYSE:ALB) reported higher second-quarter sales, earnings and cash generation as lithium pricing improved and its specialties business benefited from stronger pricing and volumes. Second-quarter net sales rose 31% from a year earlier to $1.7 billion, while adjusted EBITDA more than doubled to $858 million. The company’s adjusted EBITDA margin expanded to 49%. Net income attributable to Albemarle was $480 million, or $3.52 per diluted share. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Metals and Mining Stocks Riding the Commodity Supercycle Chief Executive Officer Kent Masters said the results reflected operational execution, cost discipline and strengthening conditions in the company’s key markets. The company generated $710 million in operating cash flow and $638 million in free cash flow during the quarter. Energy Storage sales increased 78% year over year and segment adjusted EBITDA rose 229%, driven primarily by higher lithium pricing. Albemarle sold 65,000 metric tons of lithium carbonate equivalent, or LCE, during the quarter at an average realized price of about $20 per kilogram LCE. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Gold and Silver Rebound, But This Metal Is Outperforming Both Chief Financial Officer Neal Sheorey said the realized price was roughly 15% below market pricing, reflecting spodumene sales and a three-month pricing lag in the company’s long-term agreements. For the full year, Albemarle now expects Energy Storage volumes of 225,000 to 235,000 tons LCE, ranging from flat to down 4% year over year. The outlook reflects a June 9 fire at the CGP3 plant at the Greenbushes joint venture, partly offset by stronger-than-expected production at Wodgina. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The CGP3 plant restarted Aug. 1 and is ramping up, although Albemarle now assumes it will reach full run rate in the first quarter of 2027. Masters said the plant had been ramping ahead of schedule before the incident. Wodgina, meanwhile, is operating all three processing trains and has benefited from better-than-planned ore availability and recoveries. Albemarle expects third-quarter Energy Storage sales and adjusted EBITDA to decline sequentially, citing lower expected volumes and an assumption of lower lithium pricing. Margins are also expected to face pressure from the timing of higher-priced spodumene inventory moving through the company’s processing system. Masters said lithium prices were near $20 per kilogram and that the market remained physically tight, though he declined to forecast prices. He said additional supply from Africa and Chinese lepidolite operations is beginning to return, but demand growth has required new supply to enter the market. The company raised its 2026 outlook for its Specialties segment following a strong first half. Albemarle now expects Specialties net sales of $1.4 billion to $1.6 billion and adjusted EBITDA of $275 million to $325 million for the full year. Second-quarter Specialties sales increased 20% to $424 million, while adjusted EBITDA rose 61% to $118 million. The segment’s adjusted EBITDA margin expanded by 700 basis points from the prior-year period to 28%. Sheorey attributed the performance to higher pricing and volumes, as well as favorable mix, amid bromine-market disruptions related to the Middle East situation. He said Albemarle expects pricing to normalize during the second half after bromine prices peaked in April, and therefore anticipates lower sequential sales and EBITDA in the third quarter. The company continues to estimate that Middle East-related supply-chain disruptions could have a full-year unmitigated impact of approximately $70 million to $90 million. Albemarle said it had not yet experienced much of that impact during the first half and has used proactive cost management to mitigate disruptions. Masters said the company is on track to reach the high end of its $100 million to $150 million full-year cost and productivity-improvement target. Albemarle has achieved about $100 million of run-rate savings year to date, with approximately 40% coming from supply-chain and back-office initiatives and the remainder from manufacturing cost reductions, incremental volumes and improved yields. Management said global lithium consumption increased 45% year over year through May, led by stationary energy storage and improving electric-vehicle demand. Albemarle raised its 2026 forecast for stationary-storage battery production to 900 to 1,100 gigawatt hours, an increase of 100 gigawatt hours from its previous outlook. The company also raised the low end of its 2030 stationary-storage forecast to a range of 1,500 to 2,000 gigawatt hours. As a result, it increased the low end of its 2030 total lithium-demand forecast by 100,000 tons. Masters said stationary storage could account for about 30% of global lithium demand in 2026, approaching parity with light-duty electric vehicles. Global stationary-storage production has nearly doubled year over year, according to the company. Global EV sales were up 10% year to date and increased 16% in the second quarter from the prior-year period, Albemarle said. European EV demand rose 31% year to date, while the rest-of-world market increased 90%, led by Brazil, Australia, India and South Korea. Albemarle also outlined progress on direct lithium extraction, or DLE, at Chile’s Salar de Atacama. The company submitted an environmental assessment permit in March for a project that could include up to six DLE trains, though its planned initial investment would begin with one train. The proposed process would operate alongside the company’s existing solar evaporation ponds. Lithium-rich brine would be sent both to the existing ponds and to the DLE plant, with the DLE output returning to final evaporation ponds before conversion into battery-grade lithium carbonate at La Negra. Masters said Albemarle’s integrated pilot plant has operated for more than a year and accumulated more than 3,000 operating hours. The pilot has demonstrated lithium recoveries above 90%, compared with roughly 30% to 40% for a conventional pond system and 50% to 60% using Albemarle’s existing yield-improvement technology. The company said the project remains subject to regulatory approvals, community consultation and further technology validation. Masters characterized the initiative as part of Albemarle’s effort to pursue long-term growth through existing resources, infrastructure and operating expertise. Albemarle Corporation is a leading global specialty chemicals company primarily engaged in the production and distribution of lithium, bromine, and catalysts. Its lithium segment supplies key components used in rechargeable batteries for electric vehicles, portable electronics, and grid storage systems. The company's bromine specialty products serve a wide range of industries, including oil and gas drilling fluids, fire safety solutions, and water treatment. In its catalysts division, Albemarle provides products for petroleum refining, chemical processing and emissions control. Founded in 1994 as a spin-off from Ethyl Corporation, Albemarle has grown through strategic acquisitions and capacity expansions to become one of the world's foremost chemical producers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Albemarle Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Albemarle Corporation ALB used its second-quarter 2026 earnings call to stress tight lithium inventories, stronger stationary-storage demand and cost execution, while warning that third-quarter Energy Storage sales, EBITDA and margins should decline sequentially. Adjusted earnings of $3.75 per share topped the Zacks Consensus Estimate of $3.35, while revenues of $1.74 billion exceeded the $1.59 billion estimate. Management kept company scenario ranges intact, raised Specialties expectations and cut planned capital spending. Albemarle Corporation price-consensus-eps-surprise-chart | Albemarle Corporation Quote CFO Neal Sheorey said that Albemarle expects results near the high end of the $20-per-kilogram LCE scenario for both the company and Energy Storage. The company’s scenario calls for 2026 sales of $5.7-$6 billion and adjusted EBITDA of $2.4-$2.6 billion. Sheorey cited first-half lithium pricing slightly above $20, better volumes, cost and productivity gains and stronger Specialties performance.A Deutsche Bank analyst asked whether the high-end comment applied to the company or Energy Storage. Sheorey clarified that it applied to both. Chairman and CEO Kent Masters said that global lithium demand rose 45% year over year through May, with supply additions lagging demand and inventories tight. Masters stated that Albemarle raised its 2026 stationary-storage battery production forecast to 900-1,100 gigawatt hours and lifted the low end of its 2030 range to 1,500-2,000 gigawatt hours. The low end of the 2030 total lithium demand forecast increased by 100,000 tons. Chief commercial officer Eric Norris told a Bank of America analyst that an anticipated storage-demand pullback did not occur. Norris said that management has greater confidence in the next couple of years, while the five-year outlook needs more work. Sheorey expects third-quarter Energy Storage sales and adjusted EBITDA to fall sequentially on lower volumes and lower assumed pricing. Margins should also decline as higher-priced spodumene inventory flows through results after an approximately four-month lag. Full-year Energy Storage sales volume is expected at 225,000-235,000 tons LCE, or flat to down 4% year over year. Masters said that Greenbushes CGP3 restarted Aug. 1, and is assumed to reach full run rate in the first quarter of 2027, while Wodgina continues to outperform. Asked by an RBC analyst about 2027, Sheorey pointed to 240,000-260,000 tons LCE, consistent with the company's previously discussed volume-growth trajectory. Sheorey raised 2026 Specialties sales expectations to $1.4 billion-$1.6 billion and adjusted EBITDA to $275-$325 million after stronger pricing, volume and productivity. Sheorey expects third-quarter Specialties sales and EBITDA to decline sequentially as bromine pricing normalizes. The outlook still includes a $70-$90 million unmitigated full-year impact from Middle East-related supply-chain disruption. A Morgan Stanley analyst pressed management on bromine normalization. Chief commercial officer Norris said that the Chinese bromine index applies to well under one-third of the business, while most Specialties sales are downstream derivatives with localized pricing. Sheorey said that year-to-date run-rate cost and productivity improvements reached about $100 million, putting Albemarle on track toward the high end of its $100 million-$150 million full-year target. Capital expenditures are now expected at about $500 million. CEO Masters told BMO and Wolfe Research analysts that Albemarle wants a conservative balance sheet while evaluating brownfield growth at Wodgina and Talison, along with Salar de Atacama and Kings Mountain. No new brownfield project has reached final investment decision. On direct lithium extraction, Masters said the phased Atacama plan starts with one train. The pilot has logged more than 3,000 operating hours and demonstrated recoveries above 90%. Masters closed by emphasizing operational excellence, disciplined capital allocation and growth tied to Albemarle's resource base. Management's near-term focus balances tight lithium conditions with softer third-quarter expectations, cost productivity, selective growth and continued CGP3 ramp-up. ALB carries a Zacks Rank #3 (Hold). It has a Growth Score of B and a VGM Score of B, while its Value Score is C and Momentum Score is C, giving it stronger marks on growth and the combined style measure than on value or momentum. The Zacks Style Score complements the Zacks Rank, with A and B grades preferred and the strongest combinations centered on Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks. ALB's current mix is more balanced than top-tier, and the Zacks Rank can change as earnings estimates are revised after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Albemarle Corporation (ALB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Albemarle Corp (NYSE:ALB) delivered a strong Q2 2026 with net sales up 31% year-over-year and adjusted EBITDA more than doubling to $858 million, with enterprise EBITDA margin expanding to 49%. The company generated robust cash flow, with $710 million from operations and $638 million in free cash flow, achieving over 80% operating cash conversion. Global lithium demand grew 45% year-over-year through May, driven by strong stationary storage and improving EV growth, with inventories at near-record lows indicating a tight market. Albemarle Corp (NYSE:ALB) is advancing its direct lithium extraction (DLE) technology at the Salar de Atacama, with a pilot plant demonstrating recoveries of 80-90% and a submitted environmental permit, positioning for sustainable growth. The company raised its full-year outlook for specialties and is on track to hit the high end of its cost productivity target of $100-150 million, with strong performance in bromine and specialty markets. Albemarle Corp (NYSE:ALB) faced a setback from the June 9 fire at the Greenbushes CGP3 plant, which delayed the ramp-up to full production until Q1 2027, impacting energy storage volumes. Energy storage sales volumes for 2026 are now expected to be flat to down 4% year-over-year due to the CGP3 fire, partially offset by better performance at Wodgina. The company expects sequential declines in Q3 net sales and adjusted EBITDA due to lower sales volumes and pricing, with energy storage margins pressured by the timing of spodumene inventory costs. Ongoing Middle East supply chain disruptions are estimated to cost $70-90 million on an unmitigated basis for the full year, adding uncertainty to specialty segment performance. Lithium market pricing remains volatile and speculative, with recent price declines and a 3-month pricing lag in long-term agreements diluting realized prices, creating margin headwinds in a declining price environment. Warning! GuruFocus has detected 5 Warning Signs with ALB. Is ALB fairly valued? Test your thesis with our free DCF calculator. Q: Can you clarify your comments on guidance coming at the top end of the scenario rangesare you referring to the total company or energy storage? A: Neil Sherry (CFO): It's both. We were referring to the $20 per kg LCE scenario. Market pricing in the first half trended slightly higher than $20 on average, pushing us toward the higher end. Additionally, we had better volume performance, strong cost and productivity improvements, and very strong performance from specialties, particularly in Q2. At an enterprise level, if pricing had been at $20, we would be at the top end of that range, and the same is true for the energy storage segment. Q: Lithium demand is growing faster than expectations. What are your latest thoughts on the supply side, and does the market require higher pricing to support new investments? A: Kent Masters (CEO): Demand is stronger than anticipated, with EVs trending back in Q2 and energy storage demand "off the charts." Supply is a little behind demand, which is why inventories are getting down to low levels and the physical market is very tight. We expect investments to come to keep up with supply. We're in a price range where good projects will invest, but more speculative projects probably won't. It's not driving projects that weren't planned, but it's bringing planned projects off the booksa good place to be. Q: You've raised both 2026 and 2030 stationary storage demand forecasts. What gives you the confidence to increase the longer-term outlook? A: Eric Norris (Chief Commercial Officer): The confidence comes from what we see in projects happening and the supply chain activity. Most of the demand is driven by LFP out of China. Customer discussions indicate the market is tight and struggling to keep up. Installations are exceeding actual battery productionthere's about a one-year lag between when lithium is sold and when it goes into an installation, and announced installation numbers are larger than what's being produced today. That drives a healthy market. Q: Can you talk about the constrained supply out of Africa and China spodumenehow long would you expect that to last? A: Kent Masters (CEO): That's been a story over the last year, but it's starting to move. We'll see additional supply in the back half of the year. Africa is moving a little faster; we've seen one lepidolite mine come back on and start to ramp up. That will add capacity, but the market is pretty tight and inventories are lowwe kind of need that capacity. Q: What is assumed for bromine in the specialties guidance? A: Neil Sherry (CFO): It's hard to give a specific price because only about a third of our volume tracks the Chinese bromine index. That index hit a peak in Q2 and has come back down to levels closer to where we started the year. Supply-demand fundamentals were tighter in H1 due to the Middle East situation, but we're assuming a bit more normalized fundamentals in H2. We're watching closely because the situation hasn't gone away. Generally, we're assuming pricing holds where it is today. Q: Should we expect volumes to grow next year for energy storage, and how should we think about volume evolution from here? A: Kent Masters (CEO): This year we'll get close to offsetting the fire at Talison with extra performance at Wodgina, making us roughly flat year-over-year. Next year we will have growth as CGP3 rampswe expect to get close to full production in Q1, then annualize that forward. That gives us room for high single-digit growth next year. Neil Sherry (CFO): Following our 15% CAGR volume growth from 2022 to 2027, that would put 2027 in the range of 240,000 to 260,000 tons LCE, and with CGP3 ramping back up, we're back on that trajectory. Q: The market is tight and energy storage demand is robust, but we've seen anticipatory price declines ahead of new supply. Do you expect continued price declines, especially given low inventory levels? A: Kent Masters (CEO): We're not going to predict the priceit's a very speculative market driven by traders in China. With tight inventories and strong demand, you do have supply forecast coming back on, but given the growth rates we see, we need that supply. Prices have come back but are consolidating around $20, which is not a bad price. We can't speculate on what it will doit's very volatile. We see volumes coming on, but with 45% growth, supply needs to come on or the market will get very tight. Q: Given your progress with DLE at the Atacama, can you give your perspective on the attractiveness elsewhere in Chile? What would you need to see for those to move up your priority list? A: Kent Masters (CEO): We've done a lot of work on DLE and prioritized the Salar de Atacama. We still have technology development work, but we feel good enough to have submitted a permit and built a plan around it. We want to execute on that project first, then see where that goes against other resources in South America or elsewhere. We're getting more confidence in DLE for brine resources, but we want to execute the Atacama project before talking about others. Q: Your cash buildup has been quite large, and peers have announced restarts and project go-aheads. When would we expect you to go ahead with brownfield projects, and how does the company want to use extra cash? A: Kent Masters (CEO): We're executing against projects nowCGP3 is online and ramping. Other projects at Wodgina and Talison haven't gone through FID yet; we'll need to agree with partners before taking those on. Further out is the Salar de Atacama project, Kings Mountain, and others. We want a strong balance sheet. These growth projects are big opportunitiesbrownfield in jurisdictions we know, with partners we know, and technology we feel good aboutthey're low-risk, good-return projects. But we weigh projects against all alternatives for capital use every time. Q: Can you provide an update on CGP3 and the revamp? A: Kent Masters (CEO): It's been back up about 5 days now, operating at a reduced rate. It's performing reasonably well, as we For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net sales grew 31% year-over-year to $1.7 billion, fueled by a 73% increase in energy storage pricing and robust performance in the Specialties segment. Management attributes the strong quarter to disciplined execution and a physical lithium market that remains tight due to demand outstripping supply growth. Global lithium consumption rose 45% year-to-date through May, exceeding internal forecasts and driven primarily by the rapid expansion of stationary storage. Supply constraints in Africa and slower-than-expected ramp-ups of Chinese lepidolite mines have kept lithium salt and spodumene inventories at near-historic lows. The Specialties segment achieved a 28% EBITDA margin, a 700 basis point improvement, benefiting from bromine market disruptions and proactive cost management. Operational excellence initiatives are on track to reach the high end of the $100 million to $150 million full-year cost and productivity improvement target. The 2026 and 2030 stationary storage forecasts were raised by approximately 9-11%, with stationary storage is expected to make up about 30% of global lithium market demand by 2026, nearing parity with light-duty EVs. Management expects to hit the high end of 2026 scenario ranges, assuming market pricing remains around $20 per kg LCE. Energy storage volumes for the full year are projected to be flat to down 4% due to a fire at the Greenbushes CGP3 plant, though outperformance at Wodgina is providing a partial offset. The CGP3 plant is now expected to reach full run rate in Q1 2027, a slight delay from previous year-end 2026 targets to ensure downstream contingency. Albemarle is advancing a phased Direct Lithium Extraction (DLE) project at Salar de Atacama, targeting 90% recovery rates compared to 30-40% for conventional ponds. Geopolitical uncertainty in the Middle East is estimated to have a $70 million to $90 million unmitigated impact on full-year supply chain costs. A 4-month spodumene inventory lag creates a margin headwind in declining price environments as higher-cost inventory is processed against lower selling prices. The divestiture of Ketjen Refining Solutions and idling of Kemerton Train 1 represent structural shifts impacting year-over-year EBITDA and cash flow comparisons. The company maintains a 15% CAGR volume growth target through 2027, despite temporary disruptions at Australian hard-rock assets. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they are tracking toward the high end of the $20 per kg LCE scenario due to first-half pricing averaging slightly above that mark. Strong Specialties performance and cost productivity are providing additional buffers to the enterprise-level outlook. Demand is currently 'off the charts' for stationary storage, while supply remains hindered by limited spodumene availability and slow lepidolite restarts. Management noted that current pricing levels are sufficient to support planned high-quality projects but are likely stalling more speculative investments. While bromine pricing peaked in April and is normalizing, management expects long-term margin upside from ongoing cost and productivity improvements. The business is diversified, with less than one-third of volume tracking the volatile Chinese bromine index, providing resilience against regional price swings. The proposed DLE plant will act as a side stream to existing evaporation ponds, leveraging existing infrastructure to increase total resource recovery to over 90%. This hybrid model allows for the re-injection of lithium-depleted brine, improving the environmental footprint while maximizing yield from the high-grade Atacama resource.

Albemarle Corporation ALB posted second-quarter 2026 adjusted earnings of $3.75 per share, up from 11 cents a year ago. The figure beat the Zacks Consensus Estimate of $3.35 by 11.9%, supported by stronger lithium pricing, Specialties growth and productivity gains.On a reported basis, net income (attributable to Albemarle common shareholders) was $438.3 million or $3.52 per share. This compares favorably with a loss of $18.8 million or 16 cents per share in the prior-year quarter. Net sales increased 31.1% year over year to $1.74 billion and topped the consensus mark of $1.59 billion by 9.9%. Energy Storage sales volume rose 11% to 65 kilotons of lithium carbonate equivalent, while average realized pricing advanced 60.5% to $19.53 per kilogram. Adjusted EBITDA climbed 155% year over year to $858.1 million. The increase reflected higher Energy Storage pricing, stronger Specialties pricing and volumes, and ongoing cost and productivity improvements. Albemarle Corporation price-consensus-eps-surprise-chart | Albemarle Corporation Quote Energy Storage net sales surged 77.9% year over year to $1.28 billion. It beat the consensus estimate of $1.19 billion. The improvement was driven by higher pricing, with volume also increasing from the year-ago period.The segment’s adjusted EBITDA advanced 229.3% to $723.5 million. Higher lithium pricing drove the gain, partly offset by increased CORFO commissions.Specialties net sales rose 20.5% year over year to $423.5 million. It was above the consensus estimate of $363 million. Volumes increased 8%, while pricing improved 11%, reflecting strength across bromine and derivatives.Adjusted EBITDA for the segment increased 61.3% to $117.7 million. Favorable pricing, higher volumes, productivity gains and proactive management of Middle East-related cost escalation supported profitability. Cash from operating activities totaled $710 million in the quarter, while free cash flow was $638.3 million. Operating cash flow conversion reached 83%, helped by the timing of a larger Talison joint venture dividend and non-recurring working capital benefits.As of June 30, 2026, cash and cash equivalents were $1.63 billion, and estimated liquidity was about $3.2 billion. Total debt totaled $1.9 billion, with net debt to adjusted EBITDA of roughly 0.5.For the first half of 2026, operating cash flow increased $518 million year over year to $1.06 billion. Capital expenditures declined $131.8 million to $170.4 million. Albemarle increased its 2026 Specialties net sales outlook to $1.4-$1.6 billion from the prior $1.3-$1.5 billion range. The adjusted EBITDA forecast rose to $275-$325 million from $225-$275 million, reflecting stronger-than-expected year-to-date pricing and volume performance. The company cut its capital expenditure forecast to about $500 million from $550-$600 million expected earlier. ALB also expects Energy Storage sales volumes of 225-235 kilotons, as higher Wodgina output partly offsets a delay in the Talison CGP3 ramp following the June 9 fire. Shares of Albemarle have gained 69.6% in the past year compared with the Zacks Chemicals Diversified industry’s 6.7% rise. Image Source: Zacks Investment Research ALB currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the Basic Materials space are Almonty Industries Inc. ALM, Neo Performance Materials Inc. NOPMF and Skeena Resources Limited SKE. Almonty is expected to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for ALM’s second-quarter earnings is pegged at 10 cents per share. It carries a Zacks Rank #2 (Buy) at present. NOPMF is slated to report second-quarter results on Aug. 11. The Zacks Consensus Estimate for earnings is pegged at 50 cents per share. NOPMF has a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Skeena Resources is expected to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for SKE’s second-quarter loss is pegged at 11 cents per share. It currently carries a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Albemarle Corporation (ALB) : Free Stock Analysis Report Skeena Resources Limited (SKE) : Free Stock Analysis Report Almonty Industries Inc. (ALM) : Free Stock Analysis Report Neo Performance Materials Inc. (NOPMF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Albemarle (ALB) is back in focus as analysts outline expectations for higher quarterly earnings and revenue, with the Energy Storage segment projected to contribute a large share of the anticipated growth. See our latest analysis for Albemarle. At a share price of $120.82, Albemarle’s recent 1-day and 7-day share price returns of 1.78% and 6.77% contrast with a 30-day share price decline of 10.87% and a 90-day share price decline of 37.27%. The 1-year total shareholder return of 79.42% sits against weaker 3-year and 5-year total shareholder returns, which suggests that momentum has cooled after a stronger earlier run. If the latest earnings expectations and board changes have your attention, it can be useful to see what else is moving in related areas through the 28 best rare earth metal stocks After a sharp pullback from its recent highs, Albemarle now sits at a level where some investors are starting to reengage while others prefer to wait for deeper weakness. How does the current valuation stack up against that choice? With Albemarle last closing at $120.82 against a narrative fair value of $187.16, the current gap raises clear questions about what assumptions sit behind that number. Read the complete narrative. Curious what earnings path needs to unfold to support that higher fair value for Albemarle. The narrative leans on meaningfully higher margins and a different profit profile than today. The key building blocks are all laid out, from revenue forecasts to the future earnings multiple that would need to hold. Result: Fair Value of $187.16 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, investors also need to weigh the risk that prolonged weak lithium pricing or extended industry oversupply could pressure Albemarle’s margins and challenge this undervaluation narrative. Find out about the key risks to this Albemarle narrative. The narrative fair value of $187.16 suggests Albemarle is 35.4% undervalued. Yet on a P/S basis, the picture is very different. Albemarle trades on a 2.6x P/S, compared with 1.1x for the US Chemicals industry, a peer average of 2.6x, and a fair ratio of 1.7x. That premium raises a simple question for investors: Is the stock cheap on future cash flows but rich on current sales? See what the numbers say about this price — find out in our valuation breakdown. With mixed signals around Albemarle’s valuation and outlook, it helps to review the numbers, sentiment and risks for yourself, then assess the 2 key rewards and 2 important warning signs Albemarle may be front of mind today, but you do not want to miss out on other potential opportunities that fit your style and risk comfort. Target potential mispricings by reviewing companies highlighted in the 52 high quality undervalued stocks that combine solid fundamentals with prices that may sit below their implied worth. Strengthen your income focus by scanning stocks in the 7 dividend fortresses that offer higher yields backed by more resilient payout histories. Prioritize resilience and support your ability to sleep easier at night by assessing companies in the 82 resilient stocks with low risk scores that score better on stability and financial strength. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ALB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Albemarle (ALB) came out with quarterly earnings of $3.75 per share, beating the Zacks Consensus Estimate of $3.35 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.94%. A quarter ago, it was expected that this specialty chemicals company would post earnings of $1.24 per share when it actually produced earnings of $2.95, delivering a surprise of +137.9%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Albemarle, which belongs to the Zacks Chemical - Diversified industry, posted revenues of $1.74 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.94%. This compares to year-ago revenues of $1.33 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Albemarle shares have lost about 14.6% since the beginning of the year versus the S&P 500's gain of 13%. While Albemarle has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Albemarle was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.68 on $1.75 billion in revenues for the coming quarter and $12.79 on $6.21 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Diversified is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Koppers (KOP), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This maker of chemicals, carbon compounds and wood treatment products is expected to post quarterly earnings of $1.12 per share in its upcoming report, which represents a year-over-year change of -24.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Koppers' revenues are expected to be $506.1 million, up 0.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Albemarle Corporation (ALB) : Free Stock Analysis Report Koppers Holdings Inc. (KOP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research