Wed, Apr 30, 8:43 PM (18 days ago)
**Albemarle Corporation (ALB) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1.1 billion (down 21% YoY) - **Gross Profit:** $156.3 million (up 301% YoY) - **Net Income:** $41.3 million (up from $2.4 million in Q1 2024) - **EPS:** $0.00 (up from -$0.08 in Q1 2024) - **Cash Flow from Operations:** $545.4 million (up 457% YoY) **Profit Margins:** - **Gross Margin:** 14.5% (up from 2.9% in Q1 2024) - **Operating Margin:** 1.8% (up from -13.9% in Q1 2024) **Cash Flow:** - **Operating Cash Flow:** $545.4 million (up 457% YoY) - **Capital Expenditures:** $182.6 million (down from $579.3 million in Q1 2024) **Earnings Changes:** - **Revenue Decrease:** $283.9 million (21% YoY) - **Gross Profit Increase:** $117.4 million (301% YoY) - **Net Income Increase:** $38.9 million **Quarterly Performance Discussion:** - **Revenue:** Decreased due to lower lithium carbonate and hydroxide market pricing in Energy Storage, partially offset by higher sales volume in Specialties. - **Gross Profit:** Increased due to lower average input costs, higher sales volume in Specialties, and unfavorable currency exchange impacts. - **Operating Expenses:** Decreased due to cost reduction efforts. - **Cash Flow:** Increased due to higher earnings and a customer prepayment in Energy Storage. **Trends & Uncertainties:** - **Lithium Market:** Volatile pricing and demand uncertainty. - **Cost Reduction:** Ongoing efforts to optimize cost structure. - **Capital Expenditures:** Reduced spending to unlock cash flow and generate long-term financial flexibility. **Future Operations Impact:** - **Energy Storage:** Expects decreased net sales and profitability due to lower lithium market prices. - **Specialties:** Expects higher net sales and profitability due to recovering demand. - **Ketjen:** Expects increased results due to higher revenues. - **Corporate:** Focus on cash generation, working capital management, and process efficiencies. **Segment Performance:** - **Energy Storage:** Adjusted EBITDA down 6% YoY. - **Specialties:** Adjusted EBITDA up 30% YoY. - **Ketjen:** Adjusted EBITDA up 76% YoY. **Outlook:** - **Revenue:** Expected to decrease in Energy Storage, increase in Specialties. - **Profitability:** Expected to decrease in Energy Storage, increase in Specialties and Ketjen. - **Capital Expenditures:** Expected to be between $700 million to $800 million in 2025.