Albemarle Corp.

Strong Q1 performance; big EBITDA surge - Net sales: $1.4B, +33% YoY (driven by higher pricing and volume in both segments). - Adjusted EBITDA: $664M, more than doubled (+397M YoY / ~+148%), supported by higher price/volume plus cost & productivity improvements. - Segment growth: Energy Storage EBITDA +196%, Specialties EBITDA +30%; EBITDA margin expanded by 20+ percentage points YoY due mainly to pricing and cost actions. - Cash generation: $346M operating cash flow and $248M free cash flow in Q1; CapEx $99M.

2026 guidance raised for Specialties; lithium/ESS outlook maintained - Specialties (raised): Full-year net sales $1.3B–$1.5B and adjusted EBITDA $225M–$275M (higher than prior expectations); expects EBITDA margin in the high teens. - Energy Storage (maintained): Energy Storage guidance ranges unchanged (including geopolitical supply-chain cost effects); Q2 expected sequential improvement in net sales/EBITDA assuming flat lithium pricing, but margin down sequentially (spodumene inventory timing + supply chain costs). - Total company outlook: Maintaining across all lithium price scenarios despite Middle East-related disruptions, because expected cost impacts are offset by other factors (notably pricing/volume strength in Specialties + lower interest expense from debt paydown).

Key 2026/near-term assumptions and forecasts - Lithium market demand tracking: Consumption up 37% YTD, within the upper band of Albemarle’s 2026 forecast (+15% to +40%); management expects demand to be “relatively resilient” to Middle East disruption (could be slightly up or down but still inside the range). - Energy Storage demand growth: Management reiterated strong lithium demand tied to ESS; cited ESS-related lithium market growth up 117% YoY. - EV growth nuance: Despite weaker EV unit sales in early 2026 (China subsidy/timing effects; also U.S. incentives), global EV lithium demand still supported by larger battery sizes (e.g., China battery size up ~20%, global EV sales +3% YoY on GWh basis).