AI Takeaway
ALB (Albemarle) posted FY2025 revenue of $5.14B (down 4.4% YoY) but dramatically improved its gross margin to 13.0% from 1.2% a year ago, while narrowing its net loss to $510.6M as cost reductions and operational efficiencies partially offset continued lithium market headwinds.
Revenue
$5.14B
-4.37% YoY
EPS (Basic)
$-5.76
++48.57% YoY
Gross Margin
13.0%
++11.84% YoY
Operating Income
$-367.08M
++79.34% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue fell 4.4% YoY to $5.14B in FY2025 from $5.38B in the prior year, reflecting continued weakness in lithium pricing that has weighed on Albemarle's top line for multiple consecutive periods.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Gross profit surged 969.3% YoY to $668.7M, pushing gross margin from a near-breakeven 1.2% to 13.0%, driven primarily by a 15.8% reduction in cost of revenue ($4.47B vs. $5.31B prior year), indicating significant progress in cost management and operational efficiency.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating loss improved 79.3% YoY to -$367.1M from -$1.78B, reflecting the combined benefit of lower cost of revenue, reduced SG&A (down 11.0% to $550.0M), and sharply lower R&D spending (down 40.7% to $51.4M), signaling aggressive cost discipline.
Source: Source: 10-K Income Statement (XBRL Financial Data)
2 more insights available
Upgrade to unlockAlbemarle's revenue and profitability are highly sensitive to global lithium market prices, which have experienced severe downturns. The 4.4% revenue decline in FY2025 despite operational improvements illustrates how pricing pressure can overwhelm cost-reduction efforts, and any further deterioration in lithium prices could push margins back toward breakeven or worse.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $-0.53 versus the $-0.41 analyst consensus — a -28.5% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.14B | $5.38B | -4.37% |
Cost of Revenue | $4.47B | $5.31B | -15.82% |
Gross Profit | $668.72M | $62.54M | +969.28% |
Operating Income | $-367.08M | $-1.78B | +79.34% |
Net Income | $-510.63M | $-1.18B | +56.71% |
EPS (Basic) | $-5.76 | $-11.20 | +48.57% |
EPS (Diluted) | $-5.76 | $-11.20 | +48.57% |
R&D Expense | $51.4M | $86.72M | -40.73% |
SG&A Expense | $550.04M | $618.05M | -11.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $16.37B | $16.61B | -1.42% |
Current Assets | $4.01B | $3.84B | +4.32% |
Current Liabilities | $1.8B | $1.97B | -8.56% |
Stockholders' Equity | $9.53B | $9.96B | -4.30% |
Long-Term Debt | $3.19B | $3.52B | -9.18% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.28B | $687.88M | +86.41% |
Investing Cash Flow | $-146.01M | $-1.58B | +90.79% |
Financing Cash Flow | $-834.19M | $1.24B | -167.18% |
D&A | $658.68M | $588.64M | +11.90% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 13.0% | 1.2% | +11.84% |
Operating Margin | -7.1% | -33.0% | +25.90% |
Net Margin | -9.9% | — | — |
ROE | -5.4% | — | — |
ROA | -3.1% | — | — |
Current Ratio | $2.229 | — | — |
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ALB's FY2025 results showed meaningful improvement despite continued lithium market headwinds: revenue declined 4.4% to $5.14B, but gross margin expanded dramatically to 13.0% from 1.2%, and the net loss narrowed to -$510.6M from -$1.18B. Operating cash flow nearly doubled to $1.28B, highlighting the company's ability to generate cash even while reporting accounting losses.
No, ALB did not return to profitability in FY2025, reporting a net loss of $510.6M and a basic EPS of -$5.76. However, the loss improved significantly from -$1.18B (-$11.20 EPS) in the prior year, driven by aggressive cost reductions and a 969% surge in gross profit to $668.7M.
ALB's gross margin jumped from 1.2% to 13.0% primarily because cost of revenue fell 15.8% to $4.47B — a much steeper decline than the 4.4% drop in revenue — reflecting the company's success in cutting production costs and streamlining operations. This cost discipline allowed gross profit to surge from $62.5M to $668.7M despite lower selling prices.
ALB's near-term liquidity appears solid, with a current ratio of 2.23 and operating cash flow of $1.28B, providing a meaningful buffer against continued lithium price weakness. However, the company carries $3.19B in long-term debt and continues to report net losses, so its financial health is contingent on lithium market recovery and sustained cost discipline.
ALB reduced R&D spending 40.7% to $51.4M and slashed investing cash outflows from -$1.58B to -$146.0M in FY2025, reflecting a deliberate strategy to preserve cash and stabilize the balance sheet during the lithium price downturn. While these cuts improved near-term cash flow, they raise questions about the company's long-term capacity to invest in growth when market conditions improve.