Albemarle Corporation (NYSE: ALB) shares declined 3.1% in post-market trading on Wednesday following a larger-than-expected adjusted loss for the fourth quarter of 2025 and plans to idle its remaining operational train at the Kemerton lithium hydroxide processing plant in Western Australia.
Q4 2025 Earnings Highlights
The company reported net sales of $1.43 billion for Q4, marking a 16% increase year-over-year and surpassing analyst expectations by $80 million. Despite the revenue beat, Albemarle posted a net loss of $414.2 million, or $3.87 per diluted share, compared to net income of $75.3 million in the prior-year period.
Adjusted diluted loss per share came in at $0.53, wider than the anticipated $0.49 loss. Adjusted EBITDA rose 7% to $268.7 million. Energy Storage, the key lithium segment, saw net sales climb 23% to $759 million, with adjusted EBITDA up 25% to $167 million, driven by higher volumes.
“Our results for the fourth quarter and full year 2025 are a testament to our team’s focus on execution amid dynamic market conditions,” stated Kent Masters, Chairman and CEO. “Albemarle achieved year-over-year sales growth of more than 15% in the fourth quarter, as well as strong full-year cash flow generation and significant cost and productivity improvements.”
Kemerton Plant Decision
Albemarle will immediately place Train 1 at its Kemerton facility into care and maintenance, following the idling of Train 2 in 2024 and the halt of expansion for Trains 3 and 4. The plant processes spodumene from the Greenbushes mine.
“Idling operations at Kemerton was a difficult decision,” Masters noted. “It follows significant actions we have taken over the past two and a half years to reduce operating costs during an extended period of price volatility in the market. Unfortunately, recent lithium price improvements alone are not enough to offset the challenges facing Western hard-rock lithium conversion operations.”
This move is expected to boost adjusted EBITDA starting in Q2 2026 without affecting projected 2026 volumes. The company’s Australian mining assets, including Greenbushes and Wodgina, remain unaffected.
2026 Outlook
Albemarle anticipates capital expenditures of $550-600 million in 2026. Guidance varies by lithium price scenarios: at $10/kg LCE, net sales project $4.1-4.3 billion and adjusted EBITDA $0.9-1.0 billion; at $20/kg, $5.7-6.0 billion sales and $2.4-2.6 billion EBITDA; at $30/kg, $7.5-7.8 billion sales and $4.2-4.4 billion EBITDA.
Persistent weak lithium prices continue to pressure operations, but cost reductions totaling around $450 million and robust cash flow of $1.28 billion for the full year provide financial flexibility.
