It has been about a month since the last earnings report for Albemarle (ALB). Shares have added about 25.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Albemarle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Albemarle's Earnings & Revenues Surpass Estimates in Q2
Albemarle logged adjusted earnings (barring one-time items) of 11 cents per share in the second quarter of 2025. This compares to earnings of 4 cents per share a year ago. Earnings per share beat the Zacks Consensus Estimate of a loss of 83 cents.
Revenues fell roughly 7% year over year to roughly $1.33 billion in the quarter. The top line beat the Zacks Consensus Estimate of $1.24 billion. The top line was hurt by lower prices in the Energy Storage segment, partly offset by the volume growth in the Energy Storage and Specialties unit.
Adjusted EBITDA for the reported quarter was $336.5 million, down from $386.4 million in the prior-year quarter. A decline in lithium pricing more than offset lower average input costs and Albemarle’s cost reduction actions.
Segment Highlights
Sales from the Energy Storage unit fell around 13.5% year over year to $717.7 million. It surpassed the consensus estimate of $589.4 million. The decline in sales was attributed to reduced pricing. Sales volumes were up 15% as record production at the company’s integrated conversion network offset lower tolling volumes.
The Specialties segment recorded sales of $351.6 million, up around 5.1% year over year. It was above the consensus estimate of $344.7 million. Increased volumes more than offset low prices.
The Ketjen unit recorded revenues of $260.8 million in the reported quarter, down roughly 1.8% year over year. It marginally beat the consensus estimate of $260 million. Higher prices were more than offset by reduced volumes.
Financial Position
Albemarle ended the quarter with cash and cash equivalents of roughly $1.81 billion, up from $1.52 billion reported in the prior quarter. Long-term debt was around $3.18 billion, up around 1.6% sequentially.
Cash from operations was around $538 million for the first half of 2025, up 15.7% from the prior-year period.
2025 Outlook
Albemarle is taking actions to improve costs, productivity and efficiencies to preserve its long-term competitive position. The company is expecting growth in volumes in key end markets in the Specialties unit.
Albemarle expects capital expenditures for full-year 2025 in the range of $650-$700 million.
Albemarle expects depreciation and amortization expenses of $630-$670 million for 2025. Corporate costs are expected to be $40-$70 million, while Interest and financing expenses are forecast to be $180-$210 million for the full year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -60.13% due to these changes.
VGM Scores
At this time, Albemarle has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Albemarle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Albemarle belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, Dow Inc. (DOW), has gained 5.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
Dow Inc. reported revenues of $10.1 billion in the last reported quarter, representing a year-over-year change of -7.4%. EPS of -$0.42 for the same period compares with $0.68 a year ago.
For the current quarter, Dow Inc. is expected to post a loss of $0.26 per share, indicating a change of -155.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -24.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Dow Inc.. Also, the stock has a VGM Score of F.
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Albemarle Corporation (ALB): Free Stock Analysis Report Dow Inc. (DOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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