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November 14, 2025 • 4 min read
Today, we're diving into the latest quarterly report from Albemarle Corp. (NYSE: ALB), a global leader in specialty chemicals, most famous for being one of the world's largest lithium producers. Lithium is a critical component in batteries for electric vehicles (EVs) and energy storage systems. Given the recent volatility in the lithium market, this filing for the third quarter of 2025 gives us a crucial look at how the company is navigating the challenging environment.
At first glance, the most striking change from last year is the bottom line. Albemarle reported a net loss attributable to the company of $161 million for Q3 2025. While a loss is never ideal, it's a massive improvement over the staggering $1.07 billion loss reported in the same quarter last year.
What caused this dramatic swing? It wasn't a surge in sales. Instead, the difference lies in major one-off charges. In Q3 2024, Albemarle booked a colossal $828 million in restructuring charges and asset write-offs, primarily related to its Kemerton facility in Australia. This quarter, those charges were a mere $2.3 million.
However, the company wasn't entirely free of write-downs. In Q3 2025, Albemarle recorded a $181 million goodwill impairment charge. In simple terms, a goodwill impairment occurs when a company determines that an asset it acquired is no longer worth the price it paid, forcing a write-down. This charge was related to its Ketjen segment, which produces catalysts for the refining industry.
To visualize how Albemarle’s revenue flows through its various costs and expenses to the final net loss for the quarter, the following diagram breaks down the income statement.
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Overall net sales dipped slightly by 3% to $1.31 billion from $1.35 billion in Q3 2024. The performance across Albemarle's business segments tells a more detailed story:
Energy Storage (Lithium): This is Albemarle's largest segment and the one most watched by investors. Net sales fell 8% to $709 million. The company cited "unfavorable pricing impacts" in lithium carbonate and hydroxide as the primary reason, a headwind that was only partially offset by higher sales volumes. Adjusted EBITDA for the segment also declined by 13%.
Specialties (Bromine & Lithium Specialties): This division saw sales remain essentially flat at $345 million. The bright spot here was profitability—Adjusted EBITDA surged by an impressive 34% to $76 million. Albemarle credited this to lower raw material costs and savings from its restructuring and productivity initiatives.
Ketjen (Catalysts): Sales in this segment grew 4% to $254 million, driven by higher volumes. However, Adjusted EBITDA fell 5% to $34 million, hurt by unfavorable pricing.
This breakdown shows the company grappling with price pressures in its core lithium business while finding strong profitability gains in its Specialties division.
Despite the slight revenue decline, Albemarle's underlying profitability showed significant improvement. The company swung from a gross loss of $104 million last year to a gross profit of $118 million this quarter. This indicates a much healthier cost structure.
Management's focus on cost-cutting is evident elsewhere in the income statement. Selling, General & Administrative (SG&A) expenses were down 10% to $139 million, and Research & Development (R&D) spending was slashed by 43% to $12.7 million. These actions demonstrate a concerted effort to streamline operations in a tougher market.
Albemarle's Q3 2025 results paint a picture of a company in transition. It is weathering the storm of lower lithium prices that have impacted the entire industry. The key takeaway is the significant improvement in operational profitability, driven by cost discipline and the absence of the massive write-offs that defined the prior year. While the goodwill impairment is a setback for the Ketjen segment, the overall financial health appears to be stabilizing. For investors, the long-term outlook remains tied to the global push for electrification, but this report shows that near-term operational efficiency is front and center for management.
Last updated: November 14, 2025