Key Highlights
- Albemarle delivered Q1 EPS of $2.95, significantly exceeding the $1.19 Wall Street forecast
- Revenue reached $1.4 billion, representing a 33% year-over-year increase from $1.1 billion
- ALB shares climbed 11% to $213 during early Thursday trading
- Lithium pricing currently stands at approximately $26,000 per metric ton, recovering from sub-$10,000 levels a year earlier
- UBS maintained its Buy rating with a $230 price target after reviewing the quarterly results
Albemarle shares climbed 11% to $213 during early Thursday trading following the lithium manufacturer’s release of Q1 earnings that substantially exceeded Wall Street projections.
The company delivered adjusted EPS of $2.95 compared to analyst consensus of $1.19. Revenue totaled $1.4 billion, surpassing the anticipated $1.3 billion and marking a 33% increase from the comparable quarter last year.
Adjusted EBITDA reached $664 million — 50% higher than the consensus forecast of $444 million. This represents a 148% increase year-over-year.
Twelve months earlier, Albemarle recorded a per-share loss of 18 cents with revenue of $1.1 billion. The reversal has been dramatic.
The catalyst behind these figures centers on lithium pricing dynamics. Benchmark prices currently hover around $26,000 per metric ton. A year ago, they traded below $10,000. Prices had climbed above $85,000 per metric ton in late 2022 before a confluence of oversupply conditions and weakening EV demand triggered a steep decline.
The rebound stems from expanding demand within energy storage applications, which has contributed to rebalancing market dynamics. Albemarle experienced increased volumes and improved pricing particularly from energy storage clients.
Strong Margins Expected to Moderate in Q2
Energy Storage and lithium margins achieved approximately 62% during the quarter, substantially exceeding the consensus projection of around 45%. Advantageous spodumene timing contributed to that stronger-than-expected performance.
The Specialties and Catalyst/Other divisions each surpassed forecasts by approximately $20 million. Albemarle preserved its full-year guidance, which incorporates roughly $80 million in supply chain disruption expenses related to Middle East logistics challenges.
Looking toward Q2, the company anticipates margins will decline sequentially because of unfavorable spodumene timing effects and those supply chain expenses. Albemarle achieved $17 per LCE in Q1 and projects that figure will increase throughout the year.
UBS Maintains Buy Rating as Full-Year Projections Strengthen
UBS confirmed its Buy rating and $230 price target on ALB after analyzing the results. The investment bank highlighted that the outperformance extended across all business segments.
Citi analyst Patrick Cunningham observed that Q2 EBITDA should increase sequentially across both Energy Storage and Specialties — a development he characterized as positive for investors.
Using Q1’s average lithium pricing, Albemarle management indicated they would project full-year sales of approximately $5.85 billion and EBITDA of roughly $2.5 billion. Wall Street currently forecasts $5.8 billion in sales and $2.3 billion in EBITDA for 2026.
The company’s lithium volume projection remains unchanged at flat year-over-year, despite potential headwinds from diminished output at the Greenbushes mine. UBS suggested this could prove more favorable than anticipated if validated.
As of Wednesday’s closing price of $193.58, ALB had already advanced approximately 37% in 2026 and jumped 236% over the preceding 12 months. The stock traded above $325 in late 2022 when lithium prices reached their zenith.
Albemarle generated EBITDA of $3.5 billion in 2022 and $1.1 billion in 2025. The Q1 2026 EBITDA of $664 million positions the company on a markedly different path entering the remainder of the year.
