Albemarle Corporation Reports Fourth Quarter and Full Year 2024 Results
Albemarle Corporation, a global leader in providing essential elements for mobility, energy, connectivity, and health, has released its financial results for the fourth quarter and full year ending December 31, 2024. The company has faced a challenging year with significant restructuring and strategic initiatives aimed at maintaining long-term competitiveness.
Financial Highlights
For the fourth quarter of 2024, Albemarle reported net sales of $1.2 billion, a significant decline from $2.4 billion in the same period last year. The net income for the quarter was $75 million, or $0.29 per diluted share, compared to a net loss of $618 million in Q4 2023. Adjusted EBITDA for the quarter was $251 million, showing a substantial improvement from a negative $135 million in the previous year.
For the full year 2024, net sales were $5.4 billion, with a net loss of $1.2 billion, or ($11.20) per diluted share. The adjusted EBITDA for the year was $1.1 billion, aligning with the company's outlook considerations. Cash from operations was $702 million, driven primarily by effective working capital management.
Business and Operational Highlights
Albemarle's Energy Storage segment saw a 26% increase in sales volumes for the full year, although the fourth quarter experienced a 63% decline in net sales due to lower pricing and volumes. The Specialties segment reported a slight decrease in net sales by 2% for the quarter, while the Ketjen segment saw a 17% decline in net sales.
Operationally, Albemarle achieved record production at its La Negra and Meishan lithium conversion plants. The company also announced plans to place its Chengdu site into care and maintenance by mid-2025 and to shift a portion of Qinzhou production from hydroxide to carbonate.
Strategic Initiatives and Corporate Developments
Albemarle has taken several strategic actions to enhance its resilience, including optimizing its conversion network, improving cost efficiency, and reducing capital expenditures. The company reduced its 2024 capital expenditures by over $450 million year-over-year and plans to further reduce them in 2025. Additionally, Albemarle pursued multiple cash generation steps and proactively amended its credit agreement to strengthen its balance sheet.
Management's Perspective
Kent Masters, Chairman and CEO of Albemarle, stated, "We are taking decisive actions to reduce costs, optimize our conversion network, and increase efficiencies to preserve our long-term competitive position. As we look ahead, we expect dynamic market conditions to persist but remain confident in our ability to deliver value to stakeholders by increasing our financial flexibility, strengthening our core capabilities, and positioning Albemarle for future growth."
Future Outlook
Albemarle has introduced new full-year 2025 outlook considerations, including ranges based on updated lithium market price scenarios. The company expects to reduce its capital expenditures further, targeting a range of $700 to $800 million for 2025. Albemarle also aims to achieve breakeven free cash flow in 2025.
SEC Filing: ALBEMARLE CORP [ ALB ] - 8-K - Feb. 12, 2025