v3.25.4
Segment and Geographic Area Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographic Area Information Segment and Geographic Area Information:
The Company has three operating and reportable segments, which are: (1) Energy Storage; (2) Specialties; and (3) Ketjen. The segments are organized based on their similar markets, customers, economic characteristics and production processes. The organizational structure facilitates the continued standardization of business processes across the organization, and is consistent with the manner in which information is presently used internally by the Company’s Chairman, President and Chief Executive Officer, who is the Company’s chief operating decision maker (“CODM”), to evaluate performance and make resource allocation decisions.
In 2025, the Company signed definitive agreements to divest the controlling ownership interest of its Refining Solutions business and its remaining ownership interest in the Eurecat S.A. joint venture, both within the Ketjen segment. The Eurecat S.A. transaction was completed on January 23, 2026 and the Company expects the Refining Solutions business transaction to be completed in the first quarter of 2026, subject to customary closing conditions. Upon completion of that transaction, the Company will retain its PCS business and a 49% ownership interest in the Refining Solutions business. Until the Refining Solutions transaction is completed, the Company will continue to report the results of these businesses within the Ketjen reportable segment.
The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating segments. Pension and other post-employment benefit (“OPEB”) service cost (which represents the benefits earned by active employees during the period) and amortization of prior service cost or benefit are allocated to the reportable segments and Corporate, whereas the remaining components of pension and OPEB benefits cost or credit (“Non-operating pension and OPEB items”) are included in Corporate. Segment data includes inter-segment transfers of raw materials at cost and allocations for certain corporate costs.
The CODM uses adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources by considering the variance in the actual results to the forecasts on a monthly basis. The annual operating budget and ongoing forecasting process use adjusted EBITDA as a key metric in assessing performance of the segment. In addition, the CODM uses adjusted EBITDA for business and enterprise planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. The Company’s definition of adjusted EBITDA is earnings before interest and financing expenses, income tax expenses, the proportionate share of Windfield income tax expense, depreciation and amortization, as adjusted on a consistent basis for certain non-operating, non-recurring or unusual items on a segment basis. These non-operating, non-recurring or unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, gains or losses on the fair value of public equity securities, restructuring charges and asset write-offs, facility divestiture charges, certain litigation and arbitration costs and charges, goodwill and long-lived asset impairment charges, non-operating pension and OPEB items and other significant non-recurring items. This calculation is consistent with the definition of adjusted EBITDA used in the leverage financial covenant calculation in the Company’s credit agreement, which is a material agreement for the Company and aligns the information presented to various stakeholders.
See below for a reconciliation of segment Net sales to adjusted EBITDA by segment showing significant segment expenses regularly reviewed by the CODM for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Energy StorageSpecialtiesKetjenTotal Segments
Year Ended December 31, 2025
Net sales(a)
$2,710,035 $1,366,435 $1,066,263 $5,142,733 
Cost of goods sold(b)
(2,084,515)(948,295)(819,323)(3,852,133)
Selling, general and administrative expenses(b)
(185,773)(87,981)(95,809)(369,563)
Other segment items(c)
(7,785)(9,002)(26,962)(43,749)
Equity in net income of unconsolidated investments(d)
265,253 — 26,229 291,482 
Net income attributable to noncontrolling interests— (45,418)— (45,418)
Adjusted EBITDA by segment$697,215 $275,739 $150,398 $1,123,352 
Year Ended December 31, 2024
Net sales(a)
$3,015,121 $1,325,983 $1,036,422 $5,377,526 
Cost of goods sold(b)
(2,992,566)(935,017)(810,319)(4,737,902)
Selling, general and administrative expenses(b)
(249,805)(93,533)(90,653)(433,991)
Other segment items(c)
(25,101)(25,676)(26,852)(77,629)
Equity in net income of unconsolidated investments(d)
1,009,891 — 22,468 1,032,359 
Net income attributable to noncontrolling interests— (43,253)— (43,253)
Adjusted EBITDA by segment$757,540 $228,504 $131,066 $1,117,110 
Year Ended December 31, 2023
Net sales(a)
$7,078,998 $1,482,425 $1,055,780 $9,617,203 
Cost of goods sold(b)
(6,205,403)(961,177)(847,018)(8,013,598)
Selling, general and administrative expenses(b)
(266,190)(100,173)(94,387)(460,750)
Other segment items(c)
(22,632)(25,719)(30,972)(79,323)
Equity in net income of unconsolidated investments(d)
2,596,820 — 20,469 2,617,289 
Net income attributable to noncontrolling interests— (96,850)— (96,850)
Adjusted EBITDA by segment$3,181,593 $298,506 $103,872 $3,583,971 
(a)Intersegment sales are not considered material.
(b)The significant expense categories and amounts align with the segment information that is regularly provided to the CODM. Excludes depreciation and amortization, and non-operating, non-recurring or unusual items as described in the reconciliation of total segment adjusted EBITDA to consolidated Net (loss) income attributable to Albemarle Corporation below.
(c)Other segment items are comprised of Research and development expenses excluding depreciation and amortization.
(d)Excludes Albemarle’s 49% ownership interest in the income tax expense of the Windfield joint venture.
The Company reconciles the total segment adjusted EBITDA to the consolidated Net (loss) income attributable to Albemarle Corporation given the impact of equity in net income from unconsolidated investments, the majority of which relates to the Windfield joint venture. This reconciliation reflects the strategic and operational significance of the Company’s joint ventures and aligns with our allocation of equity in net income from unconsolidated investments at the segment level, representing each segment's contribution to the Company's overall financial performance. See below for a reconciliation of total segment adjusted EBITDA to consolidated Net (loss) income attributable to Albemarle Corporation (in thousands):
Year Ended December 31,
202520242023
Total segment adjusted EBITDA$1,123,352 $1,117,110 $3,583,971 
Corporate expenses, net(25,359)22,668 (37,983)
Depreciation and amortization(658,678)(588,638)(429,944)
Interest and financing expenses(a)
(207,651)(165,619)(116,072)
Income tax expense(156,881)(87,085)(430,277)
Proportionate share of Windfield income tax expense(b)
(94,549)(299,193)(779,703)
Gain on change in interest in properties/sale of business, net(c)
— — 71,190 
Acquisition and integration related costs(d)
(8,303)(6,223)(26,767)
Restructuring charges and asset write-offs(e)
(7,893)(1,180,806)(9,491)
Goodwill impairment(f)
(181,070)— (6,765)
Long-lived asset impairment(g)
(245,600)— — 
Non-operating pension and OPEB items(17,710)11,335 7,971 
Gain (loss) in fair value of public equity securities(h)
11,137 (70,758)(44,732)
Legal accrual(i)
— — (218,510)
Other(j)
(41,423)67,760 10,588 
Net (loss) income attributable to Albemarle Corporation$(510,628)$(1,179,449)$1,573,476 
(a)Includes a loss on early extinguishment of debt of $7.5 million for the year ended December 31, 2025. See Note 12, “Long-term Debt,” for additional information.
(b)Albemarle’s 49% ownership interest in the reported income tax expense of the Windfield joint venture.
(c)Gain recorded during the year ended December 31, 2023 resulting from the restructuring of the MARBL joint venture with MRL. See Note 8, “Investments,” for further details.
(d)Costs related to the acquisition, integration and potential divestitures for various significant projects, recorded in Selling, general and administrative expenses (“SG&A”).
(e)See Note 17, “Restructuring Charges and Asset Write-offs,” for further details.
(f)See Note 2, “Divestitures,” and Note 10, “Goodwill and Other Intangibles,” for further details.
(g)See Note 2, “Divestitures,” for further details.
(h)Represents the net change in fair value of investments in public equity securities for the years ended December 31, 2025 and 2023, recorded in Other income, net. The year ended December 31, 2024 included losses of $37.0 million and $33.7 million, recorded in Other income, net, resulting from the net change in fair value of investments in public equity securities and the sale of investments in public equity securities, respectively.
(i)Loss recorded in SG&A for the agreements to resolve a previously disclosed legal matter with the DOJ and SEC during the year ended December 31, 2023. See Note 15, “Commitments and Contingencies,” for further details.
(j)Included amounts for the year ended December 31, 2025 recorded in:
•Cost of goods sold - $4.8 million related to the write-off of assets damaged in a severe weather incident in Jordan.
•SG&A - $9.2 million related to the write-off of assets damaged in a severe weather incident in Jordan, $3.1 million of severance expenses not related to a restructuring plan, $2.2 million related to the write-off of certain fixed assets, $2.0 million of expenses related to certain historical legal matters and $1.4 million of expenses related to the redemption of preferred equity in a Grace subsidiary, partially offset by $13.3 million of gains from the sale of assets not part of our production operations.
•Other income, net - $38.0 million loss resulting from the redemption of preferred equity in a Grace subsidiary, $14.3 million loss related to the sale of our ownership interest in the Nippon Aluminum Alkyls joint venture and $1.9 million of charges for asset retirement obligations at a site not part of our operations, partially offset by $19.8 million of income from PIK dividends of the preferred equity in a Grace subsidiary prior to redemption and a $2.4 million gain primarily resulting from the adjustment of indemnification related to previously disposed businesses.
Included amounts for the year ended December 31, 2024 recorded in:
•Cost of goods sold - $1.4 million of expenses related to non-routine labor and compensation related costs that are outside normal compensation arrangements.
•SG&A - $5.3 million of expenses related to certain historical legal and environmental matters.
•Other income, net - $40.9 million of gains from the sale of assets at a site not part of our operations, $36.3 million of income from PIK dividends of preferred equity in a Grace subsidiary, a $1.8 million net gain primarily resulting from the adjustment of indemnification related to previously disposed businesses and a $0.6 million gain from an updated cost estimate of an environmental reserve at a site not part of our operations, partially offset by $2.9 million of charges for asset retirement obligations at a site not part of our operations and $2.1 million of a loss related to the fair value adjustment of a nonmarketable security investment.
Included amounts for the year ended December 31, 2023 recorded in:
•Cost of goods sold - $15.1 million loss recorded to settle an arbitration matter with a regulatory agency in Chile, partially offset by a $4.1 million gain from an updated cost estimate of an environmental reserve at a site not part of our operations.
•SG&A - $2.3 million of facility closure expenses related to offices in Germany, $1.9 million of charges primarily for environmental reserves at sites not part of our operations and $1.8 million of various expenses including for certain legal costs and shortfall contributions for a multiemployer plan financial improvement plan.
•Other income, net - $19.3 million gain from PIK dividends of preferred equity in a Grace subsidiary, a $7.3 million gain resulting from insurance proceeds of a prior legal matter and $5.5 million of gains from the sale of investments and the write-off of certain liabilities no longer required, partially offset by $3.6 million of charges for asset retirement obligations at a site not part of our operations and $0.9 million of a loss resulting from the adjustment of indemnification related to previously disposed businesses.
Identifiable assets by segment as of December 31, 2025, 2024 and 2023 were as follows (in thousands):
December 31,
202520242023
Assets:
Energy Storage$11,086,694 $11,285,847 $13,246,412 
Specialties2,067,191 1,843,564 1,696,307 
Ketjen(a)
1,146,671 1,426,189 1,355,743 
Total segment assets14,300,556 14,555,600 16,298,462 
Corporate2,073,655 2,054,049 1,972,190 
Total assets$16,374,211 $16,609,649 $18,270,652 
(a)Ketjen assets include the Refining Solutions business assets reported as held for sale on the consolidated balance sheet, the investment in Eurecat joint venture divested on January 23, 2026 and the PCS business assets.
Additional segment information for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands):
Year Ended December 31,
202520242023
Depreciation and amortization:
Energy Storage$497,903 $434,916 $258,436 
Specialties105,390 95,043 86,673 
Ketjen46,504 51,488 76,023 
Total segment depreciation and amortization649,797 581,447 421,132 
Corporate8,881 7,191 8,812 
Total depreciation and amortization$658,678 $588,638 $429,944 
Equity in net income of unconsolidated investments (net of tax):
Energy Storage$184,669 $705,378 $1,822,620 
Ketjen26,229 22,468 20,469 
Total segment equity in net income of unconsolidated investments (net of tax)210,898 727,846 1,843,089 
Corporate(a)
32,846 (12,413)10,993 
Total equity in net income of unconsolidated investments (net of tax)$243,744 $715,433 $1,854,082 
Capital expenditures:
Energy Storage(b)
$284,100 $1,225,748 $1,757,701 
Specialties171,243 257,673 214,039 
Ketjen120,161 163,921 132,510 
Total segment capital expenditures575,504 1,647,342 2,104,250 
Corporate14,297 33,187 50,292 
Total capital expenditures$589,801 $1,680,529 $2,154,542 
(a)Corporate equity in net income of unconsolidated investments (net of tax) relates to foreign exchange gains or losses from the Windfield joint venture.
(b)Energy Storage capital expenditures for the years ended December 31, 2024 and 2023 include adjustments to correct previously identified immaterial errors. See Note 1, “Summary of Significant Accounting Policies,” for further details.
The following table summarizes the Company’s net sales by geographic area for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year Ended December 31,
202520242023
Net Sales(a):
United States$890,498 $901,870 $930,838 
South Korea789,547 912,376 3,125,372 
China2,026,293 1,961,143 2,851,809 
Japan359,631 589,268 1,396,360 
Other(b)
1,076,764 1,012,869 1,312,824 
Total$5,142,733 $5,377,526 $9,617,203 
(a)Net sales are attributed to countries based upon shipments to final destination.
(b)Net sales to any other country are individually immaterial.
During the years ended December 31, 2025 and 2024, no customer represented greater than 10% of the Company’s consolidated net sales. During the year ended December 31, 2023, one customer in the Energy Storage business represented approximately 12% of the Company’s consolidated net sales.
The following table summarizes the Company’s long-lived assets by geographic area for the years ended December 31, 2025, 2024 and 2023 was as follows (in thousands):
As of December 31,
202520242023
(In thousands)
Long-Lived Assets(a):
United States$1,810,967 $2,134,371 $1,912,243 
Australia3,895,577 3,943,847 4,610,963 
Chile2,167,720 2,253,647 2,258,619 
China990,536 966,785 819,119 
Jordan327,439 309,148 292,870 
Netherlands— 177,587 186,963 
Germany111,946 90,367 91,979 
France68,285 59,815 56,876 
Brazil— 29,733 33,730 
Other foreign countries59,673 92,655 87,489 
Total$9,432,143 $10,057,955 $10,350,851 
(a)    Long-lived assets are comprised of the Company’s Property, plant and equipment and joint ventures included in Investments. The balances of long-lived assets as of December 31, 2025 exclude assets held for sale.