v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information:
Following the completion of the sale of our Refining Solutions business discussed in Note 2, “Divestitures,” the Company has two reportable segments: (1) Energy Storage and (2) Specialties. 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.
The Corporate and All Other category is not considered to be a segment and includes corporate-related items not allocated to the operating segments, as well as the results of the PCS business and the ownership interest in the Ketjen joint venture, as they do not fit into any of our core businesses. 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 the segments’ performance. 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, restructuring charges and asset write-offs, facility divestiture charges, certain litigation and arbitration costs and 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. Prior period amounts have been recast to reflect the current segment structure.
See below for a reconciliation of segment Net sales to adjusted EBITDA by segment showing significant segment expenses regularly provided to the CODM for the three-month and six-month periods ended June 30, 2026 and 2025 (in thousands):
Energy StorageSpecialtiesTotal Segments
Three Months Ended June 30, 2026
Net sales(a)
$1,276,684 $423,484 $1,700,168 
Cost of goods sold(b)
(727,831)(260,130)(987,961)
Selling, general and administrative expenses(b)
(47,839)(24,468)(72,307)
Other segment items(c)
(639)(1,914)(2,553)
Equity in net income of unconsolidated investments(d)
223,082 — 223,082 
Net income attributable to noncontrolling interests— (19,252)(19,252)
Adjusted EBITDA by segment$723,457 $117,720 $841,177 
Three Months Ended June 30, 2025
Net sales(a)
$717,656 $351,560 $1,069,216 
Cost of goods sold(b)
(526,884)(240,432)(767,316)
Selling, general and administrative expenses(b)
(48,712)(23,830)(72,542)
Other segment items(c)
(1,659)(2,025)(3,684)
Equity in net income of unconsolidated investments(d)
79,324 — 79,324 
Net income attributable to noncontrolling interests— (12,296)(12,296)
Adjusted EBITDA by segment$219,725 $72,977 $292,702 
Six Months Ended June 30, 2026
Net sales(a)
$2,167,849 $781,897 $2,949,746 
Cost of goods sold(b)
(1,137,535)(502,920)(1,640,455)
Selling, general and administrative expenses(b)
(97,120)(51,529)(148,649)
Other segment items(c)
(1,540)(4,461)(6,001)
Equity in net income of unconsolidated investments(d)
343,159 — 343,159 
Net income attributable to noncontrolling interests— (29,138)(29,138)
Adjusted EBITDA by segment$1,274,813 $193,849 $1,468,662 
Six Months Ended June 30, 2025
Net sales(a)
$1,242,221 $672,574 $1,914,795 
Cost of goods sold(b)
(892,405)(471,658)(1,364,063)
Selling, general and administrative expenses(b)
(93,247)(44,209)(137,456)
Other segment items(c)
(4,209)(4,818)(9,027)
Equity in net income of unconsolidated investments(d)
153,720 — 153,720 
Net income attributable to noncontrolling interests— (20,246)(20,246)
Adjusted EBITDA by segment$406,080 $131,643 $537,723 
(a)Intersegment sales are not considered material. See below for reconciliation of reportable segment net sales to total Albemarle net sales.
(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 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 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 income attributable to Albemarle Corporation (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Total segment adjusted EBITDA$841,177 $292,702 $1,468,662 $537,723 
Corporate and all other adjusted EBITDA16,920 43,773 53,249 65,896 
Depreciation and amortization(155,801)(168,731)(313,606)(330,485)
Interest and financing expenses(a)
(30,924)(49,939)(64,045)(98,916)
Income tax expense(94,002)(34,094)(115,513)(30,116)
Proportionate share of Windfield income tax expense(b)
(70,766)(33,150)(112,300)(58,476)
Loss on sale of business/equity investment, net(c)
— — (52,718)— 
Acquisition and integration related costs(d)
(765)(1,768)(1,872)(3,208)
Restructuring charges and asset write-offs(e)
(7,337)(4,284)(33,203)(3,451)
Non-operating pension and OPEB items(854)(336)(2,201)(611)
Gain (loss) in fair value of public equity securities(f)
6,530 186 1,043 (4,836)
Other(g)
(24,219)(21,462)(28,446)(9,275)
Net income attributable to Albemarle Corporation$479,959 $22,897 $799,050 $64,245 
(a)Includes a gain on early extinguishment of debt of $12.5 million for the six months ended June 30, 2026. See Note 6, “Long-Term Debt,” for further details.
(b)Albemarle’s 49% ownership interest in the reported income tax expense of the Windfield joint venture.
(c)Loss on sale of controlling ownership interest in Refining Solutions business included in Loss on sale of business on the consolidated statement of income. Partially offset by gain on sale of Eurecat S.A. joint venture recorded in Other income (expenses), net. See Note 2, “Divestitures,” for further details.
(d)Costs related to the acquisition, integration and divestitures for various significant projects, recorded in Selling, general and administrative expenses (“SG&A”).
(e)See Note 10, “Restructuring Charges and Asset Write-offs,” for further details.
(f)Represents the net change in fair value of investments in public equity securities, recorded in Other income (expenses), net.
(g)Included amounts for the three months ended June 30, 2026 recorded in:
•Cost of goods sold - $3.9 million of expenses related to non-routine labor and compensation related costs that are outside normal compensation arrangements.
•SG&A - Primarily comprised of $19.0 million of expenses, mainly consulting fees, related to the Company's strategic cost savings initiative.
•Other income (expenses), net - Primarily related to $3.4 million of charges for asset retirement obligations at a site not part of our operations and a net loss of $1.5 million primarily driven by indemnification charges related to the Eurecat S.A. joint venture sale, partially offset by a $3.9 million gain resulting from the adjustment of indemnification related to previously disposed businesses.
Included amounts for the three months ended June 30, 2025 recorded in:
•SG&A - $8.3 million of gains from the sale of assets not part of our production operations, partially offset by $1.8 million of severance expenses not related to a restructuring plan.
•Other income (expenses), net - $38.0 million loss resulting from the redemption of preferred equity in a Grace subsidiary, partially offset by $10.1 million of income from PIK dividends of that preferred equity prior to redemption. See Note 4, “Investments,” for further details.
Included amounts for the six months ended June 30, 2026 recorded in:
•Cost of goods sold - $3.9 million of expenses related to non-routine labor and compensation related costs that are outside normal compensation arrangements.
•SG&A - Primarily comprised of $19.0 million of expenses, mainly consulting fees, related to the Company's strategic cost savings initiative and a $3.9 million charge for a non-income tax audit of a facility no longer controlled by the Company.
•Other income (expenses), net - Primarily related to $3.4 million of charges for asset retirement obligations at a site not part of our operations and a net loss of $1.5 million primarily driven by indemnification charges related to the Eurecat S.A. joint venture sale, partially offset by a $3.9 million gain resulting from the adjustment of indemnification related to previously disposed businesses.
Included amounts for the six months ended June 30, 2025 recorded in:
•SG&A - $11.4 million of gains from the sale of assets not part of our production operations, partially offset by $1.8 million of severance expenses not related to a restructuring plan and $0.6 million of expenses related to certain historical legal matters.
•Other income (expenses), net - $38.0 million loss resulting from the redemption of preferred equity in a Grace subsidiary 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 $1.9 million gain primarily resulting from the adjustment of indemnification related to previously disposed businesses.
Total assets and investments in equity method investees by segment at June 30, 2026 and December 31, 2025 were as follows (in thousands):
June 30,December 31,
20262025
Assets:
Energy Storage$11,415,555 $11,086,694 
Specialties2,081,519 2,067,191 
Total segment assets13,497,074 13,153,885 
Corporate and all other2,408,021 3,220,326 
Total assets$15,905,095 $16,374,211 
Investments in equity method investees:
Energy Storage$987,388 $737,792 
Total segment investments in equity method investees987,388 737,792 
Corporate and all other38,843 82,056 
Total investments in equity method investees$1,026,231 $819,848 
Additional segment information for the three-month and six-month periods ended June 30, 2026 and 2025 was as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Net sales:
Energy Storage$1,276,684 $717,656 $2,167,849 $1,242,221 
Specialties423,484 351,560 781,897 672,574 
Total segment net sales1,700,168 1,069,216 2,949,746 1,914,795 
Corporate and all other43,145 260,776 222,298 492,078 
Total net sales$1,743,313 $1,329,992 $3,172,044 $2,406,873 
Depreciation and amortization:
Energy Storage$122,084 $127,175 $246,434 $247,523 
Specialties28,974 25,668 57,665 51,401 
Total segment depreciation and amortization151,058 152,843 304,099 298,924 
Corporate and all other4,743 15,888 9,507 31,561 
Total depreciation and amortization$155,801 $168,731 $313,606 $330,485 
Equity in net income of unconsolidated investments (net of tax):
Energy Storage$156,250 $53,851 $239,217 $104,696 
Total segment equity in net income of unconsolidated investments (net of tax)156,250 53,851 239,217 104,696 
Corporate and all other(a)
(4,686)24,407 8,640 37,848 
Total equity in net income of unconsolidated investments (net of tax)$151,564 $78,258 $247,857 $142,544 
Capital expenditures:
Energy Storage$45,954 $58,513 $100,075 $152,956 
Specialties22,066 23,734 42,484 85,959 
Total segment capital expenditures68,020 82,247 142,559 238,915 
Corporate and all other3,711 37,381 27,848 63,337 
Total capital expenditures$71,731 $119,628 $170,407 $302,252 
(a)Corporate and all other equity in net income of unconsolidated investments (net of tax) relates to foreign exchange gains or losses from the Windfield joint venture and our 49% ownership interest in the Ketjen joint venture.