NYSE$ALB

Albemarle Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Albemarle's financial performance increased driven by higher prices and volumes in the Energy Storage business.

Albemarle Corporation reported a net sales increase of 60% for the second quarter of 2023, reaching $2.4 billion. Net income also increased by 60% to $650.0 million, or $5.52 per diluted share. Adjusted diluted EPS increased by 112% to $7.33, and adjusted EBITDA increased by 69% to $1.0 billion.

  • Net sales increased by 60% to $2.4 billion.
  • Net income increased by 60% to $650.0 million, or $5.52 per diluted share.
  • Adjusted diluted EPS increased by 112% to $7.33.
  • Adjusted EBITDA increased by 69% to $1.0 billion.

Headline financials

Total Revenue

$2.37B

Previous: $1.48B+60.2%
EPS (adj)

$7.33

Previous: $3.45+112.5%
Adjusted EBITDA

$1B

Previous: $610M+63.9%
Capital Expenditures

-$919M

Previous: -$503M-82.9%
Free Cash Flow

-$269M

Previous: -$95.8M-181.0%
Net Income

$650M

Previous: $407M+59.8%
Operating Income

$140M

Previous: $434M-67.7%
Gross Profit

$558M

Previous: $580M-3.8%
Cash & Equivalents

$1.6B

Previous: $931M+71.9%
Total Assets

$19.1B

Previous: $12.5B+52.6%
Stock-Based Comp

$9.48M

Previous: $11M-13.7%

Revenue & EPS history

Albemarle · Revenue · Quarterly

$2.37B

Q2 2023+60.2%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Albemarle · $2.37B total across 3 segments · Q2 2023

  • Energy Storage
    $1.76B
  • Specialties
    $371M
  • Ketjen
    $236M

Forward guidance

The company is updating its full-year 2023 outlook to reflect recent lithium market prices. Net sales are expected to increase 40% to 55% over the prior year. The year-over-year increase in Adjusted EBITDA is expected to be in the range of 10% to 25%.

Tailwinds

  • Net sales are expected to increase 40% to 55% over the prior year.
  • Adjusted EBITDA is expected to increase 10% to 25% year-over-year.
  • Energy Storage net sales for the full year are estimated to range between $7.9 billion and $8.8 billion.
  • Energy Storage volumes are projected to be at the higher end of the previous range of 30% to 40% in 2023 compared to 2022.
  • Adjusted EBITDA is anticipated to range between $3.5 billion and $3.9 billion.

Headwinds

  • Net cash from operations is expected to be in the range of $1.2 billion to $1.8 billion for the full year 2023, below previous outlook.
  • Changes in working capital related to timing of Energy Storage shipments.
  • Agreements in principle to resolve the previously disclosed matter with the U.S. Department of Justice and the Securities Exchange Commission.
  • Adjusted EBITDA 2023 margins are expected to be down year-over-year due to continued weakness in certain end-use markets including consumer and industrial electronics and elastomers.
  • Capital expenditures are expected to be between $1.9 billion and $2.1 billion for 2023, above previous outlook due to the retention of full ownership in lithium processing assets under the amended agreements with MinRes.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.5%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+1.5%

Avg return

30 days after

60%

41 / 68 earnings

Positive

+20.0%

Q1 2022

Best reaction

-18.4%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%+6.4%-19.2%
Q4 2025-9.4%-3.7%-9.8%
Q3 2025-0.3%+13.0%+36.1%
Q1 2025+1.3%-1.8%-4.8%
Q4 2024+3.5%+9.1%-1.8%
Q3 2024+0.2%+10.7%+5.2%
Q2 2024+0.7%-9.7%-2.4%
Q1 2024+4.1%+8.7%+1.9%
Q4 2023+4.7%+9.3%+8.9%
Q3 2023-1.7%-5.8%-0.5%
Q2 2023-4.2%-5.4%-3.7%
Q1 2023+1.3%+7.2%+20.2%
Q4 2022+5.5%-4.7%-23.0%
Q3 2022-1.6%+2.7%+1.9%
Q2 2022-3.7%+0.4%+6.6%
Q1 2022+20.0%+12.4%+27.2%
Q4 2021-18.4%-21.0%-17.9%
Q3 2021+4.9%+7.1%-3.3%
Q2 2021+5.6%+11.8%+16.9%
Q1 2021-5.7%-1.6%+7.1%
Q4 2020-12.8%-3.5%-6.6%
Q3 2020+8.1%+19.6%+42.6%
Q2 2020-2.3%+2.2%+11.0%
Q1 2020+2.2%+10.2%+44.2%
Q4 2019+6.3%+1.0%-39.7%
Q3 2019+6.0%+0.5%-4.6%
Q2 2019+12.3%+2.9%-3.4%
Q1 2019-4.3%-9.6%-8.9%
Q4 2018+7.4%+10.2%-0.5%
Q3 2018-1.8%-9.0%-17.8%
Q2 2018+6.6%+6.3%+5.4%
Q1 2018-2.3%-1.5%-5.3%
Q4 2017-8.8%-13.7%-15.8%
Q3 2017-1.6%+0.2%-8.8%
Q2 2017-3.5%-8.6%-0.8%
Q1 2017+0.3%+1.1%+5.3%
Q4 2016+9.2%+12.7%+13.0%
Q3 2016-0.9%-3.7%+6.4%
Q2 2016-2.7%-2.6%-2.9%
Q1 2016+11.0%
Q4 2015+4.2%
Q3 2015-9.6%
Q2 2015-3.5%
Q1 2015+4.7%
Q4 2014-15.3%
Q3 2014+0.5%
Q2 2014-8.8%
Q1 2014+1.6%
Q4 2013+2.6%
Q3 2013+5.0%
Q2 2013-3.0%
Q1 2013-6.3%
Q4 2012+0.4%
Q3 2012+3.6%
Q2 2012-3.0%
Q1 2012-0.6%
Q4 2008+1.2%
Q4 2011+1.2%
Q3 2011+8.5%
Q2 2011-1.1%
Q1 2010+3.6%
Q1 2011+1.2%
Q4 2010+2.7%
Q3 2010+1.5%
Q3 2009+1.5%
Q2 2010+1.3%
Q4 2009+1.3%
Q2 2009+1.3%

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