Dear Fellow Shareowners,
As Chairman and Chief Executive Officer, it is my privilege to report on Albemarle’s performance in 2025 and share our vision for the future. Despite navigating a dynamic and sometimes challenging environment characterized by volatility in the lithium market, global macroeconomic headwinds, inflationary pressures, and supply chain disruptions, our dedicated global team delivered strong financial results.
In 2025, Albemarle achieved record Adjusted EBITDA and free cash flow, demonstrating the strength of our underlying businesses and our operational agility. These results underscore our commitment to creating sustainable value for our shareholders.
Our strategic transformation continues to progress, focusing its portfolio on its core lithium and bromine businesses. We are investing in high-return projects that support the energy transition and deliver essential solutions to critical industrial applications. Our strategy is focused on long-term value creation, disciplined capital allocation, and strengthening our competitive advantages.
Growth Strategy and Market Leadership
We remain committed to meeting the growing demand for sustainable lithium, a critical component for electric vehicles and renewable energy storage, and supporting critical growth in the bromine market, which is vital for fire safety, chemical synthesis, and energy storage. Our leadership position in both markets is built on our extensive global resource base, integrated value chain, cost-effective production, and advanced technology.
Mega-Project Execution and Operational Excellence
2025 was a pivotal year for our mega-project execution. We successfully commissioned new lithium conversion capacity at Kemerton, expanded production at Meishan and Qinzhou, and made significant progress at our Sal de Vida project in Argentina. We also commenced construction at Mina da Piedade, a new lithium mining operation that will further enhance our integrated value chain. These investments significantly increase our capacity to meet future demand and reinforce our commitment to operational excellence.
Disciplined Capital Allocation and Shareholder Returns
We are diligently managing our capital to maximize shareholder value. While we navigated a period of significant investment to support future growth, we are now entering a phase of optimizing our asset base and generating enhanced returns. We are well-positioned for strong performance in 2026 and beyond, anticipating a return to positive free cash flow in the second half of 2026 and targeting $2.4 billion in annual Adjusted EBITDA by 2027. We are also reducing our capital expenditures to $1.6 billion in 2026, down from 2025 levels, while maintaining our growth trajectory, which is a testament to our operational efficiency and strategic prioritization. Debt reduction will remain a priority as we continue to generate significant free cash flow, after which we expect to generate significant free cash flow for increased shareholder returns.
Sustainability and Our People
Our commitment to sustainability is integral to our business strategy. We are dedicated to responsible operations, minimizing our environmental footprint, and contributing positively to the communities where we operate. We continue to invest in innovative technologies and practices that promote circularity and reduce emissions across our value chain.
Our dedicated global team continues to be the foundation of our success. Their resilience, expertise, and commitment enable us to deliver on our promises and navigate complex global challenges. Thank you for your hard work and unwavering dedication throughout 2025.
Looking ahead, we are confident in our ability to execute our strategy, deliver sustainable growth, and create long-term value for our shareowners. We appreciate your continued trust and investment in Albemarle.
Sincerely,
J. Kent Masters
Chairman and Chief Executive Officer
March 24, 2026
Xavier analysis
The CEO acknowledges past challenges like market volatility and macroeconomic headwinds but consistently emphasizes strong past performance (record EBITDA, FCF), successful strategic execution, and expresses confidence in future growth, highlighting specific financial targets and operational achievements.
Strategic themes by emphasis
#1Strategic Direction & Market Leadership
#2Sustainability & Employee Engagement
#3Financial Discipline & Shareholder Value
#4Major Project Execution & Operational Excellence
6 named projects & initiatives
Mina da Piedade, Kemerton, Meishan, Qinzhou, Sal de Vida, Energy Transition
5 facility, 1 other
Forward-looking statements
9 total: 3 quantified, 5 directional, 1 vague
Capital allocation priority
Organic Growth (high-return projects, capacity expansion) → Debt Reduction → Shareholder Returns (dividends, buybacks)
Key quotes
“Despite navigating a dynamic and sometimes challenging environment characterized by volatility in the lithium market, global macroeconomic headwinds, inflationary pressures, and supply chain disruptio”
Sets a tone of resilience and effective performance amidst significant external challenges.
“Our strategy is focused on long-term value creation, disciplined capital allocation, and strengthening our competitive advantages.”
A concise summary of the company's core strategic pillars.