Albemarle Corporation · NYSE:ALB
Albemarle — Q1 2025 Earnings Presentation
32 slides from Albemarle's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Earnings
Q1 2025 Earnings May 1, 2025 8:00am ET
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation, conference call and discussions that follow contain statements concerning our expectations, anticipations and beliefs regarding the future, which constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act o
Slide 3: Non-GAAP Measures
Non-GAAP Measures It should be noted that adjusted net income (loss) attributable to Albemarle Corporation, adjusted net income (loss) attributable to Albemarle Corporation common shareholders, adjusted diluted (loss) earnings per share attributable to common shareholders, non-operating pension and
Slide 4: Maintaining Long-term Competitiveness
Solid operational execution, demonstrated by Q1 2025 results: ▪ Net sales of $1.1B; Specialties volumes +11%; record lithium salt production from integrated conversion network ▪ Adj. EBITDA1 of $267M; Y/Y gains in Specialties +30% and Ketjen +76% ▪ Cash from operations of $545M, 204% OCF conversion3
Slide 5: Q1 2025 Financial Summary
Q1 2025 Financial Summary (in millions, except per share amounts) Q1 2025 Q1 2024 Variance Net Sales $1,077 $1,361 -21% Net Income Attributable to Albemarle Corporation $41 $2 +1,621% Adjusted EBITDA1 $267 $291 -8.3% Adjusted EBITDA Margin1 25% 21% +400 bps Diluted (Loss) Earnings per Share Attribut
Slide 6: Y/Y Adjusted EBITDA Bridges by Driver and Segment
Q1 Y/Y Adjusted EBITDA1 Bridges ($ in millions) $500 $445 $400 $44 Y/Y – by Driver $300 $291 ($8) ($162) ($55) Q1 2025 vs 2024 $200 $267 ▪ Lower input costs and on- $100 going cost and productivity $0 improvements mostly offset ($288) lower pricing and lower equity ($100) earnings driven by ongoing
Slide 7: Expected Direct Impact of Tariffs is Minimal; Benefits of Global Footprint & Exemptions
Expected Direct Impact of Tariffs is Minimal; Benefits of Global Footprint & Exemptions ▪ Assuming tariffs announced as of April 29, 20251 Additional 2025E Direct Tariff Impact, Unmitigated ‒ ~$30-40M direct impact in 2025, before mitigations By Key Trade Lanes2 ‒ Indirect impacts are more challengi
Slide 8: Total Company 2025E Outlook Considerations
Total Company 2025E Outlook Considerations1 Observed Lithium Ranges driven by variation in FY 2024A YE 2024 H1 2024 range Q4 2023 avg. Market Price Scenarios: sales volume and mix (US$/kg LCE)2 $12 $9 $12-15 $20 FY 2024A includes adj. EBITDA benefit of ~$100M in Q2 from FY 2024A FY 2025E higher-than
Slide 9: 2025 Commentary by Segment
2025 Commentary by Segment1 ENERGY STORAGE ▪ Q1 2025 sales volumes of 44 kT LCE2 ▪ Volume growth expected between 0% and 10% Y/Y; decreased reliance on tolling and absorbing fixed costs with ramp of Meishan, Kemerton ▪ ~50% of 2025E salts volumes sold on long-term agreements (LTAs)3 ▪ LTAs are index
Slide 10: Broad Set of Actions Underway to Maintain our Long-term Competitive Position
Broad Set of Actions Underway to Maintain our Long-term Competitive Position Optimizing Improving Reducing Enhancing Conversion Network Costs and Efficiency Capital Expenditures Financial Flexibility Actions • Significantly reduced footprint at • Announced proactive measures to • Re-phased capex to
Slide 11: Financial and Operational Actions Provide Flexibility to Navigate Dynamic Conditions
Our Financial and Operational Actions Have Provided the Flexibility to Navigate Dynamic Business Conditions Capital Structure1 Total Liquidity: $3.1B1 $106 Other Credit Lines Total Debt ▪ ~$1.5B of cash & cash equivalents1 $3,539 ▪ Full commercial paper capacity available for liquidity ($1.5B) $1,50
Slide 12: Strong Focus on Cash Improvements Yielding Results
Strong Focus on Cash Improvements Yielding Results Operating Cash Flow ▪ FY 2025E operating cash conversion expected to be >80%, Conversion1 well above historical average1, driven by: 1. $350M customer prepayment in Energy Storage secured in January 204%* 2. Ongoing working capital improvements, inc
Slide 13: Long-term Lithium Demand Outlook Remains Robust
Q1 2025 EARNINGS Long-term Lithium Demand Outlook Remains Robust 13
Slide 14: 2025 Global EV Demand Growth Off to a Strong Start
2025 Global EV Demand Growth Off to a Strong Start +34% Y/Y, Led by China Global EV Sales1 China EV Sales1 Europe EV Sales1 North America EV Sales1 (in millions) 20 20 20 20 60% 20% 10% 15 15 15 15 of Global of Global of Global 10 +34% 10 10 10 2025 Y/Y +41% 5 5 2025 Y/Y 5 +19% 5 +17% 2025 Y/Y 2025
Slide 15: Expected Lithium Demand Growth >2x (2024-2030)
Expected Lithium Demand Growth >2x (2024-2030) Stationary Storage EV Lithium Demand 2025 lithium demand range includes assumed impact of Installations1 Market Penetration2 by Application2 (GWh) 2024-2030 (MMT LCE) tariffs announced to date. 2024-2030 CAGR: 15-20% 2024-2030 Continuing to monitor near
Slide 16: Energy Transition Continues – EV Share of Vehicle Production by Region
Energy Transition Continues – EV Share of Vehicle Production by Region1 Global EV Penetration China EV Penetration Europe EV Penetration North America EV Penetration 70% 55% 90% 80% 100% 2030E BEV as 2030E BEV as 2030E BEV as 2030E BEV as 80% % Total EV2 % Total EV2 80% % Total EV2 % Total EV2 67% 6
Slide 17: Higher Long-Term Lithium Pricing Required to Meet 2030E Demand
Higher Long-Term Lithium Pricing Required to Meet 2030E Demand >$20/kg LCE 2030E Supply 3.0 MMT LCE @ $15/kg LCE $13/kg LCE Cost1 2030E Demand 2.5 - 3.3 MMT LCE Cumulative Supply (kT LCE) 1 Albemarle analysis AISC for resources, cash costs for conversion 2 vs. 2024 global lithium production Stronger
Slide 18: Maintaining Long-term Competitiveness
Solid operational execution, demonstrated by Q1 2025 results: Net sales of $1.1B; Adj. EBITDA1 of $267M, with Y/Y gains in Specialties +30% and Ketjen +76% Maintaining FY 2025 total company outlook considerations and cash flow considerations; driving to breakeven free cash flow in 2025 Maintaining L
Slide 19: Q2 2025 Investor Relations Events
Q2 2025 Investor Relations Events May 19-20 East Coast NDR Meredith Bandy, CFA VP, Investor Relations & Sustainability meredith.bandy@albemarle.com +1 980.999.5168 Jun 3-4 EU NDR Isaac Price Manager, Investor Relations Jun 17-19 Sustainability NDR (Virtual) isaac.price@albemarle.com +1 980.308.6194
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Slide 21: Appendix
\ Albemarle* Appendix
Slide 22: Introducing FY 2025E Energy Storage Market Price Scenarios
Introducing FY 2025E Energy Storage Market Price Scenarios1 Albemarle does not provide forecasts of lithium price Observed Lithium FY 2024A YE 2024 H1 2024 range Q4 2023 avg. Market Price Scenarios: Scenarios based on recent (US$/kg LCE)2 $12 $9 $12-15 $20 observed lithium market pricing FY 2024A FY
Slide 23: Specialties, Ketjen, and Corporate FY 2025E Outlook Considerations
Specialties, Ketjen, and Corporate FY 2025E Outlook Considerations FY 2025E Segments FY 2024A as of February 12, 2025 Specialties Net Sales $1.3B $1.3B – $1.5B Specialties Adj. EBITDA $229M $210M – $280M Ketjen Net Sales $1.0B $1.0B – $1.1B Ketjen Adj. EBITDA $131M $120M – $150M Other Corporate Capi
Slide 24: Illustrative Calculation of FY 2025E Adj. EPS at $9/kg Scenario
Illustrative Calculation of FY 2025E Adj. EPS at $9/kg Scenario FY 2025E $9/kg Scenario (in millions, except per share amounts) Low High Adjusted EBITDA1 $800 $1,000 - Pre-Tax Equity Income $290 $430 Assuming 30% AU tax rate - Interest Expenses $180 $210 - Depreciation and Amortization $630 $670 Pre
Slide 25: Definitions of Non-GAAP Measures
Definitions of Non-GAAP Measures NON-GAAP MEASURE DESCRIPTION Adjusted Net Income Attributable to Net income after mandatory convertible preferred stock dividends before non-recurring, other unusual and non-operating pension and OPEB. Common Shareholders Adjusted Diluted EPS Attributable to Diluted
Slide 26: Adjusted Net Income
Adjusted Net Income See above for a reconciliation of adjusted net income, the non-GAAP financial measure, to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with GAAP. 26
Slide 27: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA (a) Operating cash flow conversion is defined as Net cash provided by operating activities divided by adjusted EBITDA. See above for a reconciliation of EBITDA and adjusted EBITDA, the non-GAAP financial measures, to Net income attributable to Albemarle Corporation, the mo
Slide 28: Adjusted EBITDA supplemental
Adjusted EBITDA supplemental1 1 This supplemental is for net-debt-to-adjusted EBITDA ratio based on the bank covenant definition. 28
Slide 29: Diluted EPS
Diluted EPS 1Totals may not add due to rounding. 29
Slide 30: Effective Tax Rate
Effective Tax Rate See above for a reconciliation of the adjusted effective income tax rate, the non-GAAP financial measure, to the effective income tax rate, the most directly comparable financial measure calculated and reporting in accordance with GAAP. 30
Slide 31: Equity Income and Noncontrolling Interest
Equity Income and Noncontrolling Interest Note: Corporate equity income relates to foreign exchange gains or losses of our Windfield Holdings joint venture. 31
Slide 32: www.albemarle.com
NYSE www.albemarle.com \ Albemarle®