Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Albemarle's second quarter of fiscal 2026 was defined by a sharp recovery in lithium prices, driving a 42% year-over-year increase in overall pricing and more than doubling adjusted EBITDA. The outperformance was led by the Energy Storage segment, where index-referenced contracts translated higher lithium carbonate and hydroxide prices into a 78% surge in net sales. A tension remains from the CGP3 fire at the Talison joint venture, which is expected to temporarily constrain spodumene supply through mid-2026, partially offset by stronger-than-expected output from Wodgina and lower inventory requirements. Meanwhile, the divestiture of the Refining Solutions business removed a $215.3 million quarterly revenue stream, but proceeds helped reduce long-term debt by nearly half, strengthening the balance sheet.
Revenue
$1.74B
+31.08% YoY
EPS (Diluted)
$3.52
+2300.00% YoY
Gross Margin
33.9%
+19.1 pts YoY
Operating Income
$452.94M
+853.02% YoY
Source: SEC XBRL
Albemarle (ALB) reported Q2 FY2026 revenue of $1.74B, up 31.1% year over year. Operating margin was 26.0%, up 22.4 points from 3.6% a year earlier. ALB's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 2.95 | 1.11 | Beat +166.8% |
| Dec 2025 | -0.53 | -0.41 | Miss -28.5% |
| Sep 2025 | -0.19 | -0.79 | Beat +75.9% |
| Jun 2025 | 0.11 | -0.83 | Beat +113.2% |
2 reported segments · SEC XBRL
Segment revenue totals $1.7B; with $43.15M of reconciling items (corporate, unallocated and eliminations) it ties to the $1.74B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
A 42% year-over-year increase in average selling prices across the portfolio was the primary driver of the 31% revenue growth, despite the revenue headwind from the Refining Solutions divestiture.
Source: 10-Q Item 2 MD&A
The sale of the Refining Solutions business closed in Q1 FY2026, removing $215.3 million in net sales and $32.9 million in adjusted EBITDA from the year-ago comparison; proceeds were used to redeem senior notes and reduce leverage.
Source: 10-Q Item 2 MD&A
A fire at the Talison joint venture’s third chemical grade plant (CGP3) will keep spodumene output below normal until the second half of 2026, though integrated production and Wodgina volume are mitigating the impact.
Source: 10-Q Item 2 MD&A
Management placed Kemerton Trains 1 and 2 and the Chengdu conversion facility into care and maintenance, contributing to a 71% drop in R&D expense and a modest decline in SG&A, even as restructuring charges rose.
Source: 10-Q Item 2 MD&A
The Specialties segment grew net sales 20% on higher volumes and favorable pricing in bromine, flame retardants, and derivatives, partially offset by weakness in lithium specialties.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Energy Storage revenue is highly sensitive to lithium carbonate and hydroxide prices, which are volatile and index-referenced; a sustained decline would materially reduce net sales and adjusted EBITDA.
Source: 10-Q Income Statement (XBRL)
The CGP3 fire at the Talison joint venture has temporarily reduced spodumene supply, and any extended downtime or additional operational failures could further impair production and raise costs.
Source: 10-Q Balance Sheet (XBRL)
While management assesses minimal direct impact from current U.S. and international tariff proposals, an escalation or expansion of trade restrictions could disrupt Energy Storage and Specialties supply chains, particularly given production in China.
Source: 10-Q Income Statement (XBRL)
Energy Storage accounted for 73% of total segment net sales in Q2 FY2026, and a slowdown in EV or energy storage system demand—or loss of key customers—could disproportionately affect results.
Source: 10-Q Income Statement (XBRL)
The care and maintenance of multiple lithium conversion assets, combined with restructuring charges of $33.2 million year-to-date, indicate potential future impairments or additional write-offs if market conditions deteriorate.
Source: 10-Q Balance Sheet (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.74 $B | 1.33 $B | +31.08% |
Cost of Revenue $B | 1.15 $B | 1.13 $B | +1.76% |
Gross Profit $M | 590.30 $M | 196.88 $M | +199.83% |
Operating Income $M | 452.94 $M | 47.53 $M | +853.02% |
Net Income $M | 479.96 $M | 22.90 $M | +1996.17% |
EPS (Basic) $ | 3.72 $ | -0.16 $ | +2425.00% |
EPS (Diluted) $ | 3.52 $ | -0.16 $ | +2300.00% |
R&D Expense $M | 3.67 $M | 12.44 $M | -70.53% |
SG&A Expense $M | 126.35 $M | 132.46 $M | -4.61% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
ALB delivered a strong Q1 FY2026 with revenue surging 32.7% YoY to $1.43B and operating income jumping over 10x to $233.5M, driven by dramatically improved gross margins and a significant reduction in long-term debt.
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.
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