Item 1. Financial Statements (Unaudited).

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Item 1. Financial Statements (Unaudited).

ALBEMARLE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net sales	$	1,743,313	$	1,329,992	$	3,172,044	$	2,406,873
Cost of goods sold(a)	1,153,012		1,133,116		2,080,777		2,053,698
Gross profit	590,301		196,876		1,091,267		353,175
Selling, general and administrative expenses	126,353		132,457		263,759		255,959

Restructuring charges and asset write-offs	7,337		4,448		33,203		3,385
Research and development expenses	3,667		12,444		12,837		26,543
Loss on sale of business	—		—		95,018		—

Operating profit	452,944		47,527		686,450		67,288
Interest and financing expenses	(30,924)		(49,939)		(64,045)		(98,916)
Other income (expenses), net	19,629		(6,559)		73,439		3,691
Income (loss) before income taxes and equity in net income of unconsolidated investments	441,649		(8,971)		695,844		(27,937)
Income tax expense	94,002		34,094		115,513		30,116
Income (loss) before equity in net income of unconsolidated investments	347,647		(43,065)		580,331		(58,053)
Equity in net income of unconsolidated investments (net of tax)	151,564		78,258		247,857		142,544
Net income	499,211		35,193		828,188		84,491
Net income attributable to noncontrolling interests	(19,252)		(12,296)		(29,138)		(20,246)
Net income attributable to Albemarle Corporation	479,959		22,897		799,050		64,245
Mandatory convertible preferred stock dividends	(41,687)		(41,687)		(83,375)		(83,375)
Net income (loss) attributable to Albemarle Corporation common shareholders	$	438,272	$	(18,790)	$	715,675	$	(19,130)

Basic earnings (loss) per share attributable to common shareholders	$	3.72	$	(0.16)	$	6.07	$	(0.16)
Diluted earnings (loss) per share attributable to common shareholders	$	3.52	$	(0.16)	$	5.87	$	(0.16)
Weighted-average common shares outstanding – basic	117,961		117,665		117,907		117,634
Weighted-average common shares outstanding – diluted	136,212		117,665		136,170		117,634

(a)Included purchases from related unconsolidated affiliates of $322.5 million and $158.6 million for the three-month periods ended June 30, 2026 and 2025, respectively, and $450.7 million and $278.5 million for the six-month periods ended June 30, 2026 and 2025, respectively.

See accompanying Notes to the Condensed Consolidated Financial Statements.

ALBEMARLE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net income	$	499,211	$	35,193	$	828,188	$	84,491
Other comprehensive income (loss), net of tax:
Foreign currency translation and other	12,586		268,758		88,353		377,773

Net investment hedge	3,131		—		3,131		—
Cash flow hedge	(107)		(107)		(214)		(214)


Total other comprehensive income, net of tax	15,610		268,651		91,270		377,559
Comprehensive income	514,821		303,844		919,458		462,050
Comprehensive income attributable to noncontrolling interests	(19,349)		(12,355)		(29,200)		(20,287)
Comprehensive income attributable to Albemarle Corporation	$	495,472	$	291,489	$	890,258	$	441,763

See accompanying Notes to the Condensed Consolidated Financial Statements.

ALBEMARLE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Per Share Amounts)

(Unaudited)


	June 30,		December 31,
	2026		2025
Assets
Current assets:
Cash and cash equivalents	$	1,631,688	$	1,618,001
Trade accounts receivable, less allowance for credit losses (2026 – $4,582; 2025 – $4,578)	603,805		593,502
Other accounts receivable	123,870		105,110
Inventories	1,384,563		1,179,271
Other current assets	200,275		140,440
Current assets held for sale	—		371,815
Total current assets	3,944,201		4,008,139
Property, plant and equipment, at cost	11,902,156		11,768,840
Less accumulated depreciation and amortization	3,442,831		3,156,429
Net property, plant and equipment	8,459,325		8,612,411
Investments	1,109,241		900,926

Other assets	707,577		647,185
Goodwill	1,482,672		1,499,657
Other intangibles, net of amortization	202,079		214,233
Noncurrent assets held for sale	—		491,660
Total assets	$	15,905,095	$	16,374,211
Liabilities And Equity
Current liabilities:
Accounts payable to third parties	$	670,229	$	779,160
Accounts payable to related parties	445,421		134,369
Accrued expenses	507,556		521,831

Current portion of long-term debt	74,677		74,077
Dividends payable	61,514		61,387

Income taxes payable	131,703		35,467
Current liabilities held for sale	—		191,753
Total current liabilities	1,891,100		1,798,044
Long-term debt	1,802,107		3,119,464
Postretirement benefits	45,198		44,744
Pension benefits	105,729		117,361

Other noncurrent liabilities	1,158,555		1,084,892
Deferred income taxes	368,552		368,275
Noncurrent liabilities held for sale	—		59,970
Commitments and contingencies (Note 8)
Equity:
Albemarle Corporation shareholders’ equity:
Common stock, $.01 par value, authorized – 275,000, issued and outstanding – 117,994 in 2026 and 117,716 in 2025	1,180		1,178
Mandatory convertible preferred stock, Series A, no par value, $1,000 stated value, authorized – 15,000, issued and outstanding – 2,300 in 2026 and 2025	2,235,105		2,235,105
Additional paid-in capital	3,048,664		3,018,213
Accumulated other comprehensive loss	(243,599)		(334,807)
Retained earnings	5,233,819		4,613,676
Total Albemarle Corporation shareholders’ equity	10,275,169		9,533,365
Noncontrolling interests	258,685		248,096
Total equity	10,533,854		9,781,461
Total liabilities and equity	$	15,905,095	$	16,374,211

See accompanying Notes to the Condensed Consolidated Financial Statements.

ALBEMARLE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands, Except Per Share Amounts)

(Unaudited)


(In Thousands, Except Share Data)						Mandatory Convertible Preferred Stock				Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Albemarle Shareholders’ Equity		Noncontrolling Interests		Total Equity
Common Stock
Shares		Amounts			Shares		Amounts
Balance at March 31, 2026	117,885,794		$	1,179		2,300,000		$	2,235,105	$	3,029,667	$	(259,112)	$	4,843,335	$	9,850,174	$	257,942	$	10,108,116
Net income														479,959		479,959		19,252		499,211
Other comprehensive income												15,513				15,513		97		15,610
Common stock dividends declared, $0.405 per common share														(47,788)		(47,788)		(18,606)		(66,394)
Mandatory convertible preferred stock cumulative dividends														(41,687)		(41,687)				(41,687)
Stock-based compensation										8,540						8,540				8,540

Exercise of stock options	99,752		2							10,716						10,718				10,718

Issuance of common stock, net	9,434		—			(174)		—		—						—				—


Withholding taxes paid on stock-based compensation award distributions	(1,402)		(1)							(259)						(260)				(260)
Balance at June 30, 2026	117,993,578		$	1,180		2,299,826		$	2,235,105	$	3,048,664	$	(243,599)	$	5,233,819	$	10,275,169	$	258,685	$	10,533,854

Balance at March 31, 2025	117,650,568		$	1,177		2,300,000		$	2,235,105	$	2,991,389	$	(633,136)	$	5,433,704	$	10,028,239	$	246,103	$	10,274,342
Net income														22,897		22,897		12,296		35,193
Other comprehensive income												268,592				268,592		59		268,651
Common stock dividends declared, $0.405 per common share														(47,657)		(47,657)		—		(47,657)
Mandatory convertible preferred stock cumulative dividends														(41,687)		(41,687)				(41,687)
Stock-based compensation										10,179						10,179				10,179


Issuance of common stock, net	20,396		—							—						—				—

Withholding taxes paid on stock-based compensation award distributions	(1,713)		—							(37)						(37)				(37)
Balance at June 30, 2025	117,669,251		$	1,177		2,300,000		$	2,235,105	$	3,001,531	$	(364,544)	$	5,367,257	$	10,240,526	$	258,458	$	10,498,984


(In Thousands, Except Share Data)						Mandatory Convertible Preferred Stock				Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Albemarle Shareholders’ Equity		Noncontrolling Interests		Total Equity
Common Stock
Shares		Amounts			Shares		Amounts

Balance at December 31, 2025	117,715,875		$	1,178		2,300,000		$	2,235,105	$	3,018,213	$	(334,807)	$	4,613,676	$	9,533,365	$	248,096	$	9,781,461
Net income														799,050		799,050		29,138		828,188
Other comprehensive income												91,208				91,208		62		91,270
Common stock dividends declared, $0.81 per common share														(95,532)		(95,532)		(18,606)		(114,138)
Mandatory convertible preferred stock cumulative dividends														(83,375)		(83,375)				(83,375)
Stock-based compensation										15,017						15,017				15,017

Exercise of stock options	196,957		2							19,633						19,635				19,635

Issuance of common stock, net	131,473		1			(174)		—		(1)						—				—
Change in ownership interest of noncontrolling interest										—						—		(5)		(5)

Withholding taxes paid on stock-based compensation award distributions	(50,727)		(1)							(4,198)						(4,199)				(4,199)
Balance at June 30, 2026	117,993,578		$	1,180		2,299,826		$	2,235,105	$	3,048,664	$	(243,599)	$	5,233,819	$	10,275,169	$	258,685	$	10,533,854

Balance at December 31, 2024	117,559,774		$	1,176		2,300,000		$	2,235,105	$	2,985,606	$	(742,062)	$	5,481,692	$	9,961,517	$	238,171	$	10,199,688
Net income														64,245		64,245		20,246		84,491
Other comprehensive income												377,518				377,518		41		377,559
Common stock dividends declared, $0.81 per common share														(95,305)		(95,305)		—		(95,305)
Mandatory convertible preferred stock cumulative dividends														(83,375)		(83,375)				(83,375)
Stock-based compensation										17,681						17,681				17,681

Exercise of stock options	21,151		—							1,186						1,186				1,186

Issuance of common stock, net	126,469		1							(1)						—				—


Withholding taxes paid on stock-based compensation award distributions	(38,143)		—							(2,941)						(2,941)				(2,941)
Balance at June 30, 2025	117,669,251		$	1,177		2,300,000		$	2,235,105	$	3,001,531	$	(364,544)	$	5,367,257	$	10,240,526	$	258,458	$	10,498,984

See accompanying Notes to the Condensed Consolidated Financial Statements.

ALBEMARLE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)


	Six Months Ended June 30,
	2026		2025
Cash and cash equivalents at beginning of year	$	1,618,001	$	1,192,230
Cash flows from operating activities:
Net income	828,188		84,491
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization	313,606		330,485




Loss on sale of business	95,018		—
Gain on sale of equity investment	(42,300)		—


Stock-based compensation and other	14,661		17,068
Equity in net income of unconsolidated investments (net of tax)	(247,857)		(142,544)
Dividends received from unconsolidated investments and nonmarketable securities	131,744		67,765
Pension and postretirement expense	5,299		3,504
Pension and postretirement contributions	(14,298)		(9,934)

Unrealized (gain) loss on investments in marketable securities	(2,792)		4,984
Gain on early extinguishment of debt	(12,543)		—
Deferred income taxes	(19,798)		(38,907)
Working capital changes	(53,125)		(96,762)


Noncurrent liability changes and other, net	60,438		318,030
Net cash provided by operating activities	1,056,241		538,180
Cash flows from investing activities:


Capital expenditures	(170,407)		(302,252)

Proceeds from sale of businesses, net of cash sold	525,156		—
Proceeds from sale of property and equipment	—		23,751
Proceeds from sale of investments	123,270		—
Proceeds from sale of available for sale debt securities	—		288,000
(Payments) proceeds from settlement of foreign currency forward contracts, net	(18,772)		171,262

Sales of marketable securities, net	1,392		2,971

Investments in equity investments and nonmarketable securities	(119)		(120)
Net cash provided by investing activities	460,520		183,612
Cash flows from financing activities:


Repayments of long-term debt and credit agreements	(1,314,151)		(29,103)
Proceeds from borrowings of long-term debt and credit agreements	35,952		19,488
Other debt repayments, net	(12,309)		(2,427)
Fees related to early extinguishment of debt	(1,686)		—
Dividends paid to common shareholders	(95,372)		(95,244)
Dividends paid to mandatory convertible preferred shareholders	(83,375)		(83,375)
Dividends paid to noncontrolling interests	(37,463)		(18,169)

Proceeds from exercise of stock options	19,635		1,186
Withholding taxes paid on stock-based compensation award distributions	(4,199)		(2,941)

Other	(438)		(55)
Net cash used in financing activities	(1,493,406)		(210,640)
Net effect of foreign exchange on cash and cash equivalents	(9,668)		103,447
Increase in cash and cash equivalents	13,687		614,599
Cash and cash equivalents at end of period	$	1,631,688	$	1,806,829

See accompanying Notes to the Condensed Consolidated Financial Statements.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

NOTE 1—Basis of Presentation:

In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Albemarle Corporation and our wholly-owned, majority-owned and controlled subsidiaries (collectively, “Albemarle,” “we,” “us,” “our” or the “Company”) contain all adjustments necessary for a fair statement, in all material respects, of our consolidated balance sheets as of June 30, 2026 and December 31, 2025, our consolidated statements of income, consolidated statements of comprehensive income and consolidated statements of changes in equity for the three-month and six-month periods ended June 30, 2026 and 2025 and our condensed consolidated statements of cash flows for the six-month periods ended June 30, 2026 and 2025. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the U.S. Securities and Exchange Commission (“SEC”) on February 11, 2026. The December 31, 2025 consolidated balance sheet data herein was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles (“GAAP”) in the United States (“U.S.”). The results of operations for the three-month and six-month periods ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made to the accompanying condensed consolidated financial statements and the notes thereto to conform to the current presentation.

NOTE 2—Divestitures:

On October 25, 2025, the Company signed a definitive agreement to divest the controlling ownership interest of its Refining Solutions business to ChemCat AcquisitionCo, LLC and contribute the remaining ownership interest to ChemCat Holdings, LP, a newly formed limited partnership (“Holdco”), with the sale closing on March 2, 2026. The Refining Solutions business that was divested and contributed is defined as the Company’s Ketjen reportable segment, excluding its performance catalysts solutions (“PCS”) business and the Company’s 50% ownership interest in Eurecat S.A. (which the Company divested in a separate transaction as described below). Following the completion of the transactions in the definitive agreement (collectively, the “Refining Solutions Business Transaction”), the Company received $525.2 million in cash, net of cash sold, owned 49% of the common units of Holdco and retained 100% ownership of the PCS business. As a result of the Refining Solutions Business Transaction, the Company recorded a loss of $95.0 million before income taxes in 2026.

The Company’s ownership interest in Holdco, initially representing a 49% interest following completion of the Refining Solutions Business Transaction, consists of common units that are junior to the preferred equity in Holdco held by the other ownership group. The preferred equity accrues dividends, regardless of whether or not declared, for the first five years after the closing of the Refining Solutions Business Transaction, and is convertible into common equity of Holdco at the option of the holder.

In a separate transaction, on January 23, 2026, the Company completed the sale of its 50% ownership interest in Eurecat S.A., a joint venture included in the Refining Solutions reporting unit, for €105 million (approximately $123 million using foreign exchange rates on the closing date) in cash, to Axens SA and recorded a gain before income taxes of $42.3 million in Other income (expenses), net on the consolidated statements of income during the six-month period ended June 30, 2026.

In connection with the Company’s entry into the definitive agreement related to the Refining Solutions Business Transaction, on October 25, 2025, the Company concluded the Refining Solutions business met the criteria to be classified as held for sale in the Company’s consolidated financial statements. As such, the assets and liabilities of the Refining Solutions business were included in the current or noncurrent assets held for sale and liabilities held for sale, respectively, in the consolidated balance sheet at December 31, 2025. The Eurecat S.A. transaction was separate from the Refining Solutions Business Transaction, and its investment was not classified as held for sale. Upon classification as held for sale, the Refining Solutions business was measured at the lower of its carrying amount or its fair value less costs to sell.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The carrying amounts of the major classes of assets and liabilities that were classified as held for sale at December 31, 2025 were as follows (in thousands):


	December 31, 2025
Assets
Trade accounts receivable	$	179,502
Inventories	188,750
Other current assets	3,563
Current assets held for sale	371,815
Property, plant and equipment, at cost	1,043,529
Less accumulated depreciation and amortization	645,438
Net property, plant and equipment	398,091
Investments(a)	64,125
Other intangibles, net of amortization and other noncurrent assets	29,444
Noncurrent assets held for sale	491,660
Total assets held for sale	$	863,475
Liabilities
Accounts payable to third parties	$	116,397
Accrued expenses and other current liabilities	75,356
Current liabilities held for sale	191,753
Deferred income taxes	44,311
Other noncurrent liabilities	15,659
Noncurrent liabilities held for sale	59,970
Total liabilities held for sale	$	251,723

(a) Does not include the Company’s Eurecat investment of $81.9 million, which was not part of the Refining Solutions business transaction or classified as held for sale.

Neither the Refining Solutions business nor the investment in Eurecat S.A. qualified for discontinued operations treatment at December 31, 2025 because the Company’s management did not consider these sales as representing a strategic shift that had or will have a major effect on the Company’s operations and financial results.

NOTE 3—Inventories:

The following table provides a breakdown of inventories at June 30, 2026 and December 31, 2025 (in thousands):


	June 30,		December 31,
	2026		2025
Finished goods	$	832,861	$	620,738
Raw materials and work in process(a)	395,618		414,232
Stores, supplies and other	156,084		144,301
Total	$	1,384,563	$	1,179,271

(a)Includes $312.9 million and $297.9 million at June 30, 2026 and December 31, 2025, respectively, of work in process in our Energy Storage segment.

The Company purchases certain of its inventory from its equity method investments (primarily the Windfield Holdings Pty. Ltd. (“Windfield”) joint venture) and eliminates the balance of intra-entity profits on purchases of such inventory that remains unsold at the balance sheet date in Inventories, specifically finished goods, and equally reduces Equity in net income of unconsolidated investments (net of tax) on the consolidated statements of income. The balance of intra-entity profits on inventory purchased from equity method investments in Inventories totaled $143.0 million and $37.2 million at June 30, 2026 and December 31, 2025, respectively. The intra-entity profit is recognized in Equity in net income of unconsolidated

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

investments (net of tax) in the period that converted inventory is sold to a third-party customer. In the same period, the intra-entity profit is also recognized as higher Cost of goods sold on the consolidated statements of income.

NOTE 4—Investments:

Unconsolidated Joint Ventures

Following the completion of the Refining Solutions Business Transaction discussed in Note 2, “Divestitures,” the Company retained an initial 49% ownership interest in the Ketjen joint venture. The Company’s valuation of its investment in this Ketjen joint venture was measured using the Black-Scholes option-pricing model using key assumptions such as equity volatility, a risk-free rate and certain terms of the joint venture agreement. This nonrecurring fair value measurement is classified as Level 3 within the fair value hierarchy due to the unobservable inputs used. The Company’s investment in this unconsolidated joint venture is reported within Investments on the consolidated balance sheet, and its equity in net income of unconsolidated investments (net of tax) is included within Other joint ventures in the below table. In addition, the Company divested all of its direct ownership interests in Nippon Ketjen Company Limited and Fábrica Carioca de Catalisadores S.A., joint ventures included in the Refining Solutions Business Transaction. The investment balances for these unconsolidated investments were reported within Noncurrent assets held for sale at December 31, 2025.

In a separate transaction, on January 23, 2026, the Company divested its 50% ownership interest in the Eurecat S.A joint venture and recorded a gain of $42.3 million in Other income (expenses), net on the consolidated statements of income during the six-month period ended June 30, 2026.

The following table details the Company’s equity in net income of unconsolidated investments (net of tax) for the three-month and six-month periods ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Windfield	$	165,835	$	71,762	$	259,127	$	126,748
Other joint ventures	(14,271)		6,496		(11,270)		15,796
Total	$	151,564	$	78,258	$	247,857	$	142,544

The Company holds a 49% equity interest in Windfield, where the ownership parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Windfield to be a variable interest entity (“VIE”), however this investment is not consolidated as the Company is not the primary beneficiary. The carrying amount of the Company’s 49% equity interest in Windfield, which is the Company’s most significant VIE, was $985.0 million and $735.3 million at June 30, 2026 and December 31, 2025, respectively. The Company’s unconsolidated VIEs are reported in Investments on the consolidated balance sheets. The Company does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments.

The following table summarizes the unaudited results of operations for the Windfield joint venture, which met the significant subsidiary test for subsidiaries not consolidated or 50% or less owned persons under Rule 10-01 of Regulation S-X, for the three-month and six-month periods ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net sales	$	889,113	$	296,020	$	1,470,170	$	586,439
Gross profit	767,295		169,778		1,220,598		362,482
Income before income taxes	658,794		161,354		1,065,456		306,150
Net income	461,155		112,897		745,819		214,641

Public Equity Securities

Included in the Company’s investments balance are holdings in equity securities of public companies. The fair value is measured using publicly available share prices of the investments, with any changes reported in Other income (expenses), net in

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

our consolidated statements of income. During the three-month and six-month periods ended June 30, 2026, the Company recorded unrealized mark-to-market gains of $6.5 million and $1.0 million, respectively, in Other income (expenses), net for all public equity securities held at the end of the balance sheet date. During the three-month and six-month periods ended June 30, 2025, the Company recorded unrealized mark-to-market gains (losses) of $0.2 million and ($4.8) million, respectively, in Other income (expenses), net for all public equity securities held at the end of the balance sheet date.

Other

As part of the proceeds from the sale of the fine chemistry services (“FCS”) business on June 1, 2021, W.R. Grace & Co. (“Grace”) issued Albemarle preferred equity of a Grace subsidiary having an aggregate stated value of $270 million. The preferred equity began accruing payment-in-kind (“PIK”) dividends at an annual rate of 12% on June 1, 2023. In June 2025, the Company agreed to a redemption of the preferred equity for an aggregate value of $307.4 million, comprised of $288.0 million in cash received in June 2025 for the redemption and $19.4 million in cash previously received for tax liabilities. As a result, the Company recorded a loss of $38.0 million within Other income (expenses), net for the three-month and six-month periods ended June 30, 2025, representing the difference between the cash received and the recorded fair value of $326.0 million prior to redemption.

NOTE 5—Goodwill and Other Intangibles:

The following table summarizes the changes in goodwill by reportable segment for the six-month period ended June 30, 2026 (in thousands):


	Energy Storage		Specialties		Total
Balance at December 31, 2025(a)	$	1,466,959	$	32,698	$	1,499,657




Foreign currency translation adjustments	(17,080)		95		(16,985)
Balance at June 30, 2026(a)	$	1,449,879	$	32,793	$	1,482,672

(a) Balance as of June 30, 2026 and December 31, 2025 included an accumulated impairment loss of $6.8 million from the PCS reporting unit that is now reported within Corporate and All Other. Goodwill reported in Energy Storage and Specialties as of June 30, 2026 and December 31, 2025 relates entirely to the Energy Storage and Specialties reporting units, respectively.

The following table summarizes the changes in other intangibles and related accumulated amortization for the six-month period ended June 30, 2026 (in thousands):


	Customer Lists and Relationships		Patents and Technology		Other(a)		Total
Gross Asset Value
Balance at December 31, 2025	$	384,331	$	32,480	$	31,451	$	448,262


Foreign currency translation adjustments and other	(7,309)		1,616		388		(5,305)
Balance at June 30, 2026	$	377,022	$	34,096	$	31,839	$	442,957
Accumulated Amortization
Balance at December 31, 2025	$	(206,071)	$	(15,262)	$	(12,696)	$	(234,029)
Amortization	(8,650)		(1,282)		(498)		(10,430)

Foreign currency translation adjustments and other	4,076		(335)		(160)		3,581
Balance at June 30, 2026	$	(210,645)	$	(16,879)	$	(13,354)	$	(240,878)
Net Book Value at December 31, 2025	$	178,260	$	17,218	$	18,755	$	214,233
Net Book Value at June 30, 2026	$	166,377	$	17,217	$	18,485	$	202,079

(a) Following the completion of the sale of our Refining Solutions business, the remaining Trade Names and Trademarks balance was moved to Other. The Net Book Value of Trade Names and Trademarks includes only indefinite-lived intangible assets.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

NOTE 6—Long-Term Debt:

Long-term debt at June 30, 2026 and December 31, 2025 consisted of the following (in thousands):


	June 30,		December 31,
	2026		2025

1.625% notes due 2028	$	568,500	$	588,600

3.45% Senior notes due 2029	109,240		171,612

4.65% Senior notes due 2027	—		650,000
5.05% Senior notes due 2032	415,726		600,000
5.45% Senior notes due 2044	200,966		350,000
5.65% Senior notes due 2052	195,680		450,000




Interest-free loan	300,000		300,000
Variable-rate foreign bank loans	17,304		17,892

Finance lease obligations	104,849		106,796
Other	10,500		20,500
Unamortized discount and debt issuance costs	(45,981)		(61,859)
Total long-term debt	1,876,784		3,193,541
Less amounts due within one year	74,677		74,077
Long-term debt, less current portion	$	1,802,107	$	3,119,464

During the six-month period ended June 30, 2026, using proceeds from the sale of our Refining Solutions business and cash on hand, we redeemed the 4.65% Senior notes in full, and repurchased $62.4 million of the 3.45% Senior notes, $184.3 million of the 5.05% Senior notes, $149.0 million of the 5.45% Senior notes, and $254.3 million of the 5.65% Senior notes. As a result, included in Interest and financing expenses for the six-month period ended June 30, 2026 is a gain on early extinguishment of debt of $12.5 million, representing the repurchase of these notes at a discount, partially offset by tender premiums and redemption fees.

Accounts Receivable Purchase Agreements

We are party to master receivables purchase agreements, under which we may sell available and eligible outstanding customer accounts receivable generated by sales to certain customers of up to approximately $249 million at any one time. The agreements are uncommitted and can be terminated by us or the purchaser upon notice in accordance with the terms of the agreements. Transactions under these agreements are accounted for as sales of accounts receivable, and the receivables sold are removed from the consolidated balance sheets as of the effective time of the sales transaction. During the three-month and six-month periods ended June 30, 2026, the Company sold and removed approximately $281.6 million and $516.7 million, respectively, of accounts receivable under the master receivables purchase agreements. The Company incurred approximately $1.9 million and $3.5 million, respectively, of fees associated with the master receivables purchase agreements during the three-month and six-month periods ended June 30, 2026. Costs associated with the sales of receivables are reflected in the consolidated statements of income for the periods in which the sales occur.

NOTE 7—Deferred Revenue:

In the normal course of business, amounts received from customers in advance of the Company’s satisfaction of its contractual performance obligations are recorded as deferred revenue, and are recognized within Net sales as the Company satisfies the related performance obligation.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Deferred revenue at June 30, 2026 and December 31, 2025 consisted of the following (in thousands):


	June 30,		December 31,
	2026		2025
Current deferred revenue(a)	$	98,230	$	93,090
Noncurrent deferred revenue(b)	296,777		340,527
Total deferred revenue	$	395,007	$	433,617

(a) Reported in Accrued expenses on the consolidated balance sheets.

(b) Reported in Other noncurrent liabilities on the consolidated balance sheets.

During the year ended December 31, 2025, the Company received $350 million from a customer for the delivery of specified amounts of spodumene and lithium salts over the next 5 years. Deferred revenue of $21.9 million and $43.8 million was recognized in Net sales during the three-month and six-month periods ended June 30, 2026, respectively. There was no deferred revenue recognized in Net sales during the three-month and six-month periods ended June 30, 2025.

NOTE 8—Commitments and Contingencies:

Environmental

The following activity was recorded in environmental liabilities for the six months ended June 30, 2026 (in thousands):


Beginning balance at December 31, 2025	$	20,548
Expenditures	(307)

Accretion of discount	446

Foreign currency translation adjustments and other	(113)
Ending balance at June 30, 2026	20,574
Less amounts reported in Accrued expenses	4,031
Amounts reported in Other noncurrent liabilities	$	16,543

Environmental remediation liabilities included discounted liabilities of $17.1 million and $17.0 million at June 30, 2026 and December 31, 2025, respectively, discounted at rates with a weighted-average of 4.0%, and with the undiscounted amount totaling $33.9 million and $34.2 million at June 30, 2026 and December 31, 2025, respectively.

The amounts recorded represent our future remediation and other anticipated environmental liabilities. These liabilities typically arise during the normal course of our operational and environmental management activities or at the time of acquisition of a site, and are based on internal analysis as well as input from outside consultants. As evaluations proceed at each relevant site, changes in risk assessment practices, remediation techniques and regulatory requirements can occur, therefore such liability estimates may be adjusted accordingly. The timing and duration of remediation activities at these sites will be determined when evaluations are completed. Although it is difficult to quantify the potential financial impact of these remediation liabilities, management estimates (based on the latest available information) that there is a reasonable possibility that future environmental remediation costs associated with our past operations could represent an additional $38 million before income taxes, in excess of amounts already recorded.

We believe that any sum we may be required to pay in connection with environmental remediation matters in excess of the amounts recorded would likely occur over a period of time and would likely not have a material adverse effect upon our results of operations, financial condition or cash flows on a consolidated annual basis although any such sum could have a material adverse impact on our results of operations, financial condition or cash flows in a particular quarterly reporting period.

Litigation

We are involved from time to time in legal proceedings of types regarded as common in our business, including administrative or judicial proceedings seeking remediation under environmental laws, such as the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as CERCLA or Superfund, products liability, breach of contract liability and premises liability litigation. Where appropriate, we may establish financial reserves for such proceedings. We also maintain insurance to mitigate certain of such risks. Costs for legal services are generally expensed as incurred.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Indemnities

We are indemnified by third parties in connection with certain matters related to acquired and divested businesses. Although we believe that the financial condition of those parties that may have indemnification obligations to the Company is generally sound, in the event the Company seeks indemnity under any of these agreements or through other means, there can be no assurance that any party that may have obligations to indemnify us will adhere to their obligations and we may have to resort to legal action to enforce our rights under the indemnities.

The Company may be subject to indemnity claims relating to properties or businesses it divested, including properties or businesses of acquired businesses that were divested prior to the completion of the acquisition. In the opinion of management, and based upon information currently available, the ultimate resolution of any indemnification obligations owed to the Company or by the Company is not expected to have a material effect on the Company’s financial condition, results of operations or cash flows. The Company had approximately $17.5 million and $12.1 million at June 30, 2026 and December 31, 2025, respectively, recorded in Other noncurrent liabilities, primarily related to the indemnification of certain income and non-income tax liabilities associated with the Chemetall Surface Treatment entities sold in 2016 and the Refining Solutions Business Transaction in March 2026.

Other

The Company has contracts with certain of its customers which serve as guarantees of product delivery and performance according to customer specifications that can cover both shipments on an individual basis, as well as blanket coverage of multiple shipments under certain customer supply contracts. The financial coverage provided by these guarantees is typically based on a percentage of net sales value. The Company is unable to estimate the maximum amount of the potential future liability under performance guarantees. However, the Company accrues for any potential loss for which we believe a future payment is probable and a range of loss can be reasonably estimated. At June 30, 2026, the Company believes its liability under such obligations is immaterial.

NOTE 9—Equity:

Common Stock

On May 5, 2026, the Company’s board of directors declared a cash dividend of $0.405 per share. This dividend was paid on July 1, 2026 to shareholders of record at the close of business as of June 12, 2026. On July 21, 2026, the Company’s board of directors declared a cash dividend of $0.41 per share, an increase from the prior regular quarterly dividend. This dividend is payable on October 1, 2026 to shareholders of record at the close of business as of September 11, 2026.

Mandatory Convertible Preferred Stock

On March 8, 2024, the Company issued 46,000,000 depositary shares (“Depositary Shares”), each representing a 1/20th interest in a share of Series A Mandatory Convertible Preferred Stock (“Mandatory Convertible Preferred Stock”). The 2,300,000 shares of Mandatory Convertible Preferred Stock issued had a $1,000 per share liquidation preference.

The Company pays a quarterly cash dividend of $18.125 per share of Mandatory Convertible Preferred Stock. Dividends that are declared on the Mandatory Convertible Preferred Stock are payable quarterly to the holders of record on February 15, May 15, August 15 and November 15 of each year, and are expected to be paid on March 1, June 1, September 1 and December 1 of each year ending on, and including, March 1, 2027.

Unless converted earlier in accordance with its terms, each share of Mandatory Convertible Preferred Stock will automatically convert on the mandatory conversion date, which is expected to be March 1, 2027, into between 7.618 shares and 9.140 shares of common stock, in each case, subject to customary anti-dilution adjustments described in the certificate of designations related to the Mandatory Convertible Preferred Stock. The number of shares of common stock issuable upon conversion will be determined based on the average volume weighted average price per share of common stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately prior to March 1, 2027.

There were 2,299,826 shares of Mandatory Convertible Preferred Stock issued and outstanding at June 30, 2026.

Accumulated Other Comprehensive Loss

The components and activity in Accumulated other comprehensive loss (net of deferred income taxes) consisted of the following during the periods indicated below (in thousands):

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Foreign Currency Translation and Other(a)		Net Investment Hedge(b)		Cash Flow Hedge(c)		Total
Three months ended June 30, 2026
Balance at March 31, 2026	$	(263,717)	$	—	$	4,605	$	(259,112)
Other comprehensive income before reclassifications	12,569		3,131		46		15,746
Amounts reclassified from accumulated other comprehensive loss	17		—		(153)		(136)
Other comprehensive income (loss), net of tax	12,586		3,131		(107)		15,610
Other comprehensive income attributable to noncontrolling interests	(97)		—		—		(97)
Balance at June 30, 2026	$	(251,228)	$	3,131	$	4,498	$	(243,599)
Three months ended June 30, 2025
Balance at March 31, 2025	$	(638,169)	$	—	$	5,033	$	(633,136)
Other comprehensive income before reclassifications	268,742		—		165		268,907
Amounts reclassified from accumulated other comprehensive loss	16		—		(272)		(256)
Other comprehensive income (loss), net of tax	268,758		—		(107)		268,651
Other comprehensive income attributable to noncontrolling interests	(59)		—		—		(59)
Balance at June 30, 2025	$	(369,470)	$	—	$	4,926	$	(364,544)
Six months ended June 30, 2026
Balance at December 31, 2025	$	(339,519)	$	—	$	4,712	$	(334,807)
Other comprehensive income (loss) before reclassifications	39,022		3,131		(64)		42,089
Amounts reclassified from accumulated other comprehensive loss	49,331		—		(150)		49,181
Other comprehensive income (loss), net of tax	88,353		3,131		(214)		91,270

Other comprehensive income attributable to noncontrolling interests	(62)		—		—		(62)
Balance at June 30, 2026	$	(251,228)	$	3,131	$	4,498	$	(243,599)
Six months ended June 30, 2025
Balance at December 31, 2024	$	(747,202)	$	—	$	5,140	$	(742,062)
Other comprehensive income (loss) before reclassifications	377,741		—		(66)		377,675
Amounts reclassified from accumulated other comprehensive loss	32		—		(148)		(116)
Other comprehensive income (loss), net of tax	377,773		—		(214)		377,559
Other comprehensive income attributable to noncontrolling interests	(41)		—		—		(41)
Balance at June 30, 2025	$	(369,470)	$	—	$	4,926	$	(364,544)

(a)Amount reclassified from accumulated other comprehensive loss for the six-month period ended June 30, 2026 is primarily included in Loss on sale of business on the consolidated statement of income, and resulted from the release of cumulative foreign currency translation adjustments into earnings upon the sale of the Refining Solutions business on March 2, 2026. See Note 2, “Divestitures,” for additional information.

(b)See Note 15, “Fair Value of Financial Instruments,” for details of the Company’s net investment hedge.

(c)We previously entered into a foreign currency forward contract, which was designated and accounted for as a cash flow hedge under ASC 815, Derivatives and Hedging. During 2024, the Company dedesignated the remaining foreign currency forward contracts accounted for as cash flow hedges. The balance of the settled hedged foreign currency forward contracts will be reclassified to earnings over the life of the related assets.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The amount of income tax (expense) benefit allocated to each component of Other comprehensive income for the three-month and six-month periods ended June 30, 2026 and 2025 is provided in the following tables (in thousands):


	Foreign Currency Translation and Other		Net Investment Hedge		Cash Flow Hedge		Total
Three months ended June 30, 2026
Other comprehensive income (loss), before tax	$	14,437	$	3,131	$	(107)	$	17,461
Income tax expense	(1,851)		—		—		(1,851)
Other comprehensive income (loss), net of tax	$	12,586	$	3,131	$	(107)	$	15,610
Three months ended June 30, 2025
Other comprehensive income (loss), before tax	$	263,101	$	—	$	(107)	$	262,994
Income tax benefit	5,657		—		—		5,657
Other comprehensive income (loss), net of tax	$	268,758	$	—	$	(107)	$	268,651
Six months ended June 30, 2026
Other comprehensive income (loss), before tax	$	90,175	$	3,131	$	(214)	$	93,092
Income tax expense	(1,822)		—		—		(1,822)
Other comprehensive income (loss), net of tax	$	88,353	$	3,131	$	(214)	$	91,270
Six months ended June 30, 2025
Other comprehensive income (loss), before tax	$	372,119	$	—	$	(214)	$	371,905
Income tax benefit	5,654		—		—		5,654
Other comprehensive income (loss), net of tax	$	377,773	$	—	$	(214)	$	377,559

NOTE 10—Restructuring Charges and Asset Write-offs:

Kemerton Train 1 Restructuring

In February 2026, in connection with the Company’s ongoing review of its cost and operating structure, the Company put the Kemerton Train 1 in Western Australia into care and maintenance. Since February 2026, the Company recorded charges in Restructuring charges and asset write-offs of $31.8 million, consisting of decommissioning costs, asset disposal costs, contract cancellation costs, severance and other associated charges resulting from placing Kemerton Train 1 into care and maintenance (the “Kemerton Train 1 Restructuring”). All charges related to the Kemerton Train 1 Restructuring were recorded in the Energy Storage segment.

In connection with the Kemerton Train 1 Restructuring, the Company expects to record additional charges in the range of $70 million to $90 million, primarily related to decommissioning costs during the remainder of 2026 and 2027, when the actions are expected to be completed.

Second Half 2024 Restructuring

In July 2024, the Company announced a comprehensive review of its cost and operating structure to proactively respond to ongoing industry headwinds, particularly in the lithium value chain, and to maintain a competitive position (the “Second Half 2024 Restructuring”). As part of this review, the Company made the decision to stop construction of Kemerton Train 3 in Western Australia, and put Kemerton Train 2 into care and maintenance, as the Company determined the current lithium price environment makes it less economical to expand conversion in Australia. Additionally, as part of this restructuring plan, the Company placed the Chengdu, China conversion plant into care and maintenance during the first half of 2025. Production from the Chengdu site has been transferred to another processing facility in China.

The Company’s actions regarding Kemerton were part of a broader effort focused on preserving its world-class resource advantages, optimizing its global conversion network, improving the Company’s cost competitiveness and efficiency by lowering operating costs, reducing capital intensity and enhancing the Company’s financial flexibility. As part of this overall effort, the Company also implemented a global workforce reduction that impacted 6-7% of total headcount during the second half of 2024.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Since July 2024, the Company has recorded charges for this plan consisting of decommissioning costs of $13.2 million, asset write-offs of $726.0 million, severance and employee benefits of $53.4 million, contract cancellation costs of $38.4 million and other (primarily consisting of the reclassification of the related dedesignated cash flow hedge from Accumulated other comprehensive loss) of $29.3 million. Charges related to Second Half 2024 Restructuring were primarily recorded in the Energy Storage segment, with the exception of severance and employee benefits, which were recorded globally in Corporate and all segments. The Company finalized placing Kemerton Train 2 into care and maintenance during the first half of 2026.

Detail of Restructuring Charges and Liabilities

The following table provides details of our restructuring related charges recorded to Restructuring charges and asset write-offs on the consolidated statements of income (with the exception of dedesignated cash flow hedge charges recorded in Other income (expenses), net) for the three-month and six-month periods ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30, 2026
	Decommissioning Costs(a)		Asset Write-offs(b)		Severance and Employee Benefits		Contract Cancellation Costs(c)		Other(d)		Total

Kemerton Train 1 Restructuring	$	7,476	$	(406)	$	—	$	—	$	55	$	7,125
Second Half 2024 Restructuring(e)	212		—		—		—		—		212
	$	7,688	$	(406)	$	—	$	—	$	55	$	7,337

	Three Months Ended June 30, 2025
	Decommissioning Costs(a)		Asset Write-offs(b)		Severance and Employee Benefits		Contract Cancellation Costs(c)		Other(d)		Total

Second Half 2024 Restructuring(e)	$	1,430	$	370	$	564	$	2,603	$	(683)	$	4,284


	Six Months Ended June 30, 2026
	Decommissioning Costs(a)		Asset Write-offs(b)		Severance and Employee Benefits		Contract Cancellation Costs(c)		Other(d)		Total

Kemerton Train 1 Restructuring	$	11,819	$	2,326	$	15,397	$	1,013	$	1,246	$	31,801
Second Half 2024 Restructuring(e)	1,402		—		—		—		—		1,402
	$	13,221	$	2,326	$	15,397	$	1,013	$	1,246	$	33,203

	Six Months Ended June 30, 2025
	Decommissioning Costs(a)		Asset Write-offs(b)		Severance and Employee Benefits		Contract Cancellation Costs(c)		Other(d)		Total

Second Half 2024 Restructuring(e)	$	7,185	$	(6,878)	$	2,184	$	777	$	183	$	3,451

(a) Decommissioning costs to put Kemerton Trains 1 and 2 and the Chengdu, China conversion plant into care and maintenance.

(b) In 2026, the Company updated its estimates concerning the progress of construction activities, resulting in a net favorable adjustment of asset write-offs. In 2025, the Company received proceeds for certain Kemerton equipment and updated its estimates concerning the progress of construction activities and related contractual obligations, resulting in a net favorable adjustment of asset write-offs.

(d) Other costs recorded as part of the Kemerton Train 1 Restructuring plan were primarily related to the disposal of assets. Other costs recorded during the three-month and six-month periods ended June 30, 2025 with respect to the Second Half 2024 Restructuring include a gain (loss) of $0.1 million and ($0.1) million, respectively, recorded in Other income (expenses), net.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

(e) Severance and employee benefits related to all segments, as well as Corporate and all other. All other restructuring costs were primarily recorded in the Energy Storage segment.

The following tables summarize the changes in restructuring liabilities for the six-month period ended June 30, 2026 (in thousands):


Kemerton Train 1 Restructuring	Decommissioning Costs		Asset Write-offs		Severance and Employee Benefits		Contract Cancellation Costs		Other		Total
Beginning balance at December 31, 2025	$	—	$	—	$	—	$	—	$	—	$	—
2026 charges	11,819		2,732		15,397		1,013		1,246		32,207
Change in estimate(a)	—		(406)		—		—		—		(406)
Cash payments	(11,819)		—		(6,400)		(266)		(207)		(18,692)
Asset write-off	—		(2,326)		—		—		—		(2,326)
Foreign currency translation adjustments	—		—		(193)		—		—		(193)
Ending balance at June 30, 2026(b)	$	—	$	—	$	8,804	$	747	$	1,039	$	10,590

Second Half 2024 Restructuring	Decommissioning Costs		Asset Write-offs		Severance and Employee Benefits		Contract Cancellation Costs		Other		Total
Beginning balance at December 31, 2025	$	—	$	—	$	1,115	$	16,158	$	4,843	$	22,116
2026 charges	1,402		—		—		—		—		1,402

Cash payments	(1,402)		—		(837)		(5,181)		—		(7,420)

Foreign currency translation adjustments and other	—		—		(278)		(446)		—		(724)
Ending balance at June 30, 2026(b)	$	—	$	—	$	—	$	10,531	$	4,843	$	15,374

(a) In 2026, the Company updated its estimates concerning the progress of construction activities, resulting in a net favorable adjustment of asset write-offs.

(b) Approximately $15.7 million of the remaining balance is expected to be paid in the next twelve months and are recorded in Accrued expenses as of June 30, 2026. $10.2 million of the liability is recorded in Other noncurrent liabilities as of June 30, 2026, and relates to certain take or pay liabilities that will be paid in line with the terms of the original contract through 2027 and severance liabilities that are expected to be paid beyond the next twelve months.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

NOTE 11—Pension Plans and Other Postretirement Benefits:

The components of pension and postretirement benefits cost (credit) for the three-month and six-month periods ended June 30, 2026 and 2025 were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Pension Benefits Cost (Credit):
Service cost	$	1,500	$	1,447	$	3,050	$	2,844
Interest cost	8,365		8,454		16,777		16,793
Expected return on assets	(8,140)		(8,588)		(15,834)		(17,123)

Amortization of prior service benefit	20		20		40		39
Total net pension benefits cost	$	1,745	$	1,333	$	4,033	$	2,553
Postretirement Benefits Cost:
Service cost	$	4	$	5	$	8	$	10
Interest cost	629		470		1,258		941




Total net postretirement benefits cost	$	633	$	475	$	1,266	$	951
Total net pension and postretirement benefits cost	$	2,378	$	1,808	$	5,299	$	3,504

All components of net benefit cost, other than service cost, are included in Other income (expenses), net on the consolidated statements of income.

During the three-month and six-month periods ended June 30, 2026, the Company made contributions of $11.1 million and $14.3 million, respectively to its qualified and nonqualified plans and the U.S. postretirement benefit plan. During the three-month and six-month periods ended and June 30, 2025, the Company made contributions of $4.7 million and $9.9 million, respectively, to its qualified and nonqualified plans and the U.S. postretirement benefit plan. We expect contributions to our domestic nonqualified and foreign qualified and nonqualified pension plans to be approximately $19.1 million in 2026.

NOTE 12—Income Taxes:

The effective income tax rate for the three-month and six-month periods ended June 30, 2026 were 21.3% and 16.6%, respectively, compared to (380.0)% and (107.8)% for the three-month and six-month periods ended June 30, 2025, respectively. The Company’s effective income tax rate fluctuates based on, among other factors, the amount and location of income. The change in effective tax rate in the three-month and six-month periods ended June 30, 2026, compared to the three-month and six-month periods ended June 30, 2025, was due to the impact of 2026 earnings in various jurisdictions, including the impact of valuation allowances. The difference between the U.S. federal statutory income tax rate of 21% and the Company’s effective income tax rate for the three-month and six-month periods ended June 30, 2026 was due to the net impact of the location in which income was earned, including the impact of valuation allowances for losses in the Company’s consolidated U.S. entities, Australian entities and certain entities in China. The difference between the U.S. federal statutory income tax rate of 21% and the Company’s effective income tax rate for the three-month and six-month periods ended June 30, 2025 was due to the net impact of the location in which income was earned, including the impact of valuation allowances for losses in our consolidated Australian entities and certain entities in China.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

NOTE 13—Earnings Per Share:

Basic and diluted earnings (loss) per share for the three-month and six-month periods ended June 30, 2026 and 2025 are calculated as follows (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Basic earnings (loss) per share
Numerator:
Net income attributable to Albemarle Corporation	$	479,959	$	22,897	$	799,050	$	64,245
Mandatory convertible preferred stock dividends	(41,687)		(41,687)		(83,375)		(83,375)
Net income (loss) attributable to Albemarle Corporation common shareholders	$	438,272	$	(18,790)	$	715,675	$	(19,130)
Denominator:
Weighted-average common shares for basic earnings (loss) per share	117,961		117,665		117,907		117,634
Basic earnings (loss) per share	$	3.72	$	(0.16)	$	6.07	$	(0.16)

Diluted earnings (loss) per share
Numerator:
Net income attributable to Albemarle Corporation	$	479,959	$	22,897	$	799,050	$	64,245
Mandatory convertible preferred stock dividends	—		(41,687)		—		(83,375)
Net income (loss) attributable to Albemarle Corporation common shareholders	$	479,959	$	(18,790)	$	799,050	$	(19,130)
Denominator:
Weighted-average common shares for basic earnings (loss) per share	117,961		117,665		117,907		117,634
Incremental shares under mandatory convertible preferred stock	17,521		—		17,521		—
Incremental shares under stock compensation plans	730		—		742		—
Weighted-average common shares for diluted earnings (loss) per share	136,212		117,665		136,170		117,634
Diluted earnings (loss) per share	$	3.52	$	(0.16)	$	5.87	$	(0.16)

The following table summarizes the number of shares, calculated on a weighted average basis, not included in the computation of diluted earnings per share because their effect would have been anti-dilutive (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Shares assuming the conversion of the mandatory convertible preferred stock	—	21,022	—	21,022
Shares under the stock compensation plans	90	1,543	90	1,352

NOTE 14—Leases:

We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term.

Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides details of our lease contracts for the three-month and six-month periods ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease cost	$	9,298	$	8,605	$	18,974	$	17,337
Finance lease cost:
Amortization of right of use assets	1,613		2,026		3,222		4,024
Interest on lease liabilities	1,594		1,612		3,120		3,231
Total finance lease cost	3,207		3,638		6,342		7,255

Short-term lease cost	4,143		5,833		9,497		11,999
Variable lease cost	14,432		15,283		27,411		23,699


Total lease cost	$	31,080	$	33,359	$	62,224	$	60,290

Supplemental cash flow information related to our lease contracts for the six-month periods ended June 30, 2026 and 2025 is as follows (in thousands):


	Six Months Ended June 30,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	18,389	$	17,042
Operating cash flows from finance leases	3,120		3,222
Financing cash flows from finance leases	2,309		2,427
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	10,414		13,258

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at June 30, 2026 and December 31, 2025 is as follows (in thousands, except as noted):


	June 30, 2026			December 31, 2025
Operating leases:
Other assets	$	111,662		$	116,404

Accrued expenses	26,431			24,561
Other noncurrent liabilities	95,723			103,110
Total operating lease liabilities	122,154			127,671
Finance leases:
Net property, plant and equipment	101,241			103,915

Current portion of long-term debt	4,177			4,077
Long-term debt	100,672			102,719
Total finance lease liabilities	104,849			106,796
Weighted average remaining lease term (in years):
Operating leases	13.1			13.4
Finance leases	20.0			20.5
Weighted average discount rate (%):
Operating leases	5.02		%	5.01		%
Finance leases	5.47		%	5.47		%

Maturities of lease liabilities at June 30, 2026 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2026	$	17,073	$	4,934
2027	24,894		9,799
2028	20,678		9,661
2029	18,037		9,661
2030	12,853		9,013
Thereafter	101,062		122,949
Total lease payments	194,597		166,017
Less imputed interest	72,443		61,168
Total	$	122,154	$	104,849

NOTE 15—Fair Value of Financial Instruments:

In assessing the fair value of financial instruments, the Company uses methods and assumptions that are based on market conditions and other risk factors existing at the time of assessment. Fair value information for the Company’s financial instruments is as follows:

Long-Term Debt—the fair values of the Company’s notes are estimated using Level 1 inputs and account for the difference between the recorded amount and fair value of our long-term debt. The carrying value of the Company’s remaining long-term debt reported in the accompanying consolidated balance sheets approximates fair value as substantially all of such debt bears interest based on prevailing variable market rates currently available in the countries in which we have borrowings.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	June 30, 2026				December 31, 2025
	Recorded Amount		Fair Value		Recorded Amount		Fair Value
	(In thousands)
Long-term debt	$	1,883,644	$	1,820,107	$	3,207,210	$	3,112,590

Foreign Currency Forward Contracts—In connection with our risk management strategies, we enter into derivative financial instruments that have not been designated as hedging instruments under ASC 815, Derivatives and Hedging. These derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. At June 30, 2026 and December 31, 2025, we had outstanding non-designated derivative financial instruments with notional values totaling $1.4 billion and $2.4 billion, respectively. The non-designated derivative financial instruments are primarily comprised of foreign currency forward contracts that attempt to minimize the financial impact of changes in foreign currency exchange rates. The fair values of our non-designated foreign currency forward contracts are estimated based on current settlement values. At June 30, 2026, these foreign currency forward contracts hedge our exposure to various currencies including the Chinese Renminbi, Euro and Australian Dollar.

Net Investment Hedge—In June 2026, the Company entered into cross currency swaps with an aggregate notional amount of €1 billion to minimize the financial impact of changes in foreign currency exchange rates between the U.S. Dollar and Euro. These derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. These cross currency swaps qualify and have been designated as an effective net investment hedge of the Company's foreign currency exchange rate exposure of the net investments in foreign subsidiaries where the Euro serves as the functional currency. The Company will account for the net investment hedge using the spot method. Gains or losses on the revaluation of these cross currency swaps to our reporting currency are recorded in Accumulated other comprehensive loss. Excluded components are amortized as interest income, within Other income (expenses), net on the consolidated statements of income, as that interest is accrued.

The following table summarizes the fair value of our derivative financial instruments included in the consolidated balance sheets as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026				December 31, 2025
	Assets		Liabilities		Assets		Liabilities
Designated as hedging instruments

Other assets	$	3,909	$	—	$	—	$	—

Other noncurrent liabilities	—		778		—		—
Total designated as hedging instruments	$	3,909	$	778	$	—	$	—
Not designated as hedging instruments
Other current assets	$	—	$	—	$	2,163	$	—

Accrued expenses	—		4,061		—		4,781

Total not designated as hedging instruments	$	—	$	4,061	$	2,163	$	4,781
Total	$	3,909	$	4,839	$	2,163	$	4,781

The following table summarizes the net gains (losses) recognized for our derivative financial instruments during the three-month and six-month periods ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Designated as hedging instruments
Gain (loss) recognized in Other comprehensive income	$	3,177	$	165	$	3,067	$	(66)

Not designated as hedging instruments
(Loss) gain recognized in Other income (expenses), net(a)	$	(4,432)	$	112,344	$	(20,216)	$	164,422

(a) Fluctuations in the value of our foreign currency forward contracts not designated as hedging instruments are generally expected to be offset by changes in the value of the underlying exposures being hedged, which are also reported in Other income (expenses), net.

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

In addition, for the six-month periods ended June 30, 2026 and 2025, we recorded net cash (settlements) receipts of ($18.8) million and $161.9 million, respectively, in (Payments) proceeds from settlement of foreign currency forward contracts, net, in our condensed consolidated statements of cash flows.

The counterparties to our foreign currency forward contracts are major financial institutions with which we generally have other financial relationships. We are exposed to credit loss in the event of nonperformance by these counterparties. However, we do not anticipate nonperformance by the counterparties.

NOTE 16—Fair Value Measurement:

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy:


Level 1			Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2			Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability

Level 3			Unobservable inputs for the asset or liability

We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth our financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30, 2026		Quoted Prices in Active Markets for Identical Items (Level 1)		Quoted Prices in Active Markets for Similar Items (Level 2)		Unobservable Inputs (Level 3)

Assets:

Investments under executive deferred compensation plan(a)	$	31,504	$	31,504	$	—	$	—
Public equity securities(b)	$	30,090	$	30,090	$	—	$	—
Private equity securities measured at net asset value(c)	$	4,531	$	—	$	—	$	—
Derivative financial instruments(d)	$	3,909	$	—	$	3,909	$	—

Liabilities:
Obligations under executive deferred compensation plan(a)	$	31,504	$	31,504	$	—	$	—
Derivative financial instruments(d)	$	4,839	$	—	$	4,839	$	—

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	December 31, 2025		Quoted Prices in Active Markets for Identical Items (Level 1)		Quoted Prices in Active Markets for Similar Items (Level 2)		Unobservable Inputs (Level 3)

Assets:

Investments under executive deferred compensation plan(a)	$	30,750	$	30,750	$	—	$	—
Public equity securities(b)	$	29,047	$	29,047	$	—	$	—
Private equity securities measured at net asset value(c)	$	4,515	$	—	$	—	$	—
Derivative financial instruments(d)	$	2,163	$	—	$	2,163	$	—

Liabilities:
Obligations under executive deferred compensation plan(a)	$	30,750	$	30,750	$	—	$	—
Derivative financial instruments(d)	$	4,781	$	—	$	4,781	$	—

(a)We have maintained an Executive Deferred Compensation Plan (“EDCP”) since 2001. The purpose of the EDCP is to provide current tax planning opportunities as well as supplemental funds upon the retirement or death of certain of our employees. The EDCP is intended to aid in attracting and retaining employees of exceptional ability by providing them with these benefits. We also maintain a Benefit Protection Trust (the “Trust”) that was created to provide a source of funds to assist in meeting the obligations of the EDCP, subject to the claims of our creditors in the event of our insolvency. Assets of the Trust are consolidated in accordance with authoritative guidance. The assets of the Trust consist primarily of mutual fund investments (which are accounted for as trading securities and are marked-to-market on a monthly basis through the consolidated statements of income) and cash and cash equivalents. As such, these assets and obligations are classified within Level 1.

(b)Holdings in equity securities of public companies is reported in Investments in the consolidated balance sheets. The fair value is measured using publicly available share prices of the investments, and as a result these balances are classified within Level 1. Any changes are reported in Other income (expenses), net in our consolidated statements of income. See Note 4, “Investments,” for further details.

(c)The Company’s private equity security investments are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been categorized in the fair value hierarchy. Private equity securities are reported in Investments in the consolidated balance sheets and changes in fair value are reported in Other income (expenses), net in the consolidated statements of income.

(d)Derivative financial instruments are primarily comprised of the net investment hedge and foreign currency forward contracts. As a result of the Company’s global operating and financing activities, it is exposed to market risks from changes in foreign currency exchange rates which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes its risks from foreign currency exchange rate fluctuations through the use of foreign currency forward contracts and the net investment hedge. The foreign currency forward contracts and net investment hedge are valued using broker quotations or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within Level 2. See Note 15, “Fair Value of Financial Instruments,” for further details about the Company’s derivative financial instruments.

NOTE 17—Related Party Transactions:

Our consolidated statements of income include sales to and purchases from unconsolidated affiliates in the ordinary course of business as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Sales to unconsolidated affiliates	$	—	$	676	$	—	$	2,212
Purchases from unconsolidated affiliates(a)	$	440,431	$	144,233	$	722,381	$	303,439

(a)Purchases from unconsolidated affiliates primarily relate to spodumene purchased from the Company’s Windfield joint venture.

Our consolidated balance sheets include accounts receivable due from and payable to unconsolidated affiliates in the ordinary course of business as follows (in thousands):


	June 30, 2026		December 31, 2025
Receivables from unconsolidated affiliates	$	—	$	2,643
Payables to unconsolidated affiliates(a)	$	445,421	$	134,369

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

(a)Payables to unconsolidated affiliates primarily relate to spodumene purchased from the Company’s Windfield joint venture under normal payment terms.

Following the divestiture of the controlling ownership interest of the Refining Solutions business in the first quarter of 2026, the Company no longer transacts with, or has balances outstanding with, the joint ventures previously reported in the Ketjen segment. See Note 2, “Divestitures,” for additional information about the divestiture.

NOTE 18—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):

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Energy Storage		Specialties		Total 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):

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Total segment adjusted EBITDA	$	841,177	$	292,702	$	1,468,662	$	537,723
Corporate and all other adjusted EBITDA	16,920		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

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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,
	2026		2025
Assets:
Energy Storage	$	11,415,555	$	11,086,694
Specialties	2,081,519		2,067,191

Total segment assets	13,497,074		13,153,885

Corporate and all other	2,408,021		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 investees	987,388		737,792
Corporate and all other	38,843		82,056
Total investments in equity method investees	$	1,026,231	$	819,848

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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,
	2026		2025		2026		2025
Net sales:
Energy Storage	$	1,276,684	$	717,656	$	2,167,849	$	1,242,221
Specialties	423,484		351,560		781,897		672,574
Total segment net sales	1,700,168		1,069,216		2,949,746		1,914,795
Corporate and all other	43,145		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
Specialties	28,974		25,668		57,665		51,401

Total segment depreciation and amortization	151,058		152,843		304,099		298,924


Corporate and all other	4,743		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
Specialties	22,066		23,734		42,484		85,959

Total segment capital expenditures	68,020		82,247		142,559		238,915


Corporate and all other	3,711		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.

NOTE 19—Supplemental Cash Flow Information:

Supplemental information related to the condensed consolidated statements of cash flows is as follows (in thousands):


	Six Months Ended June 30,
	2026		2025
Supplemental non-cash disclosure related to investing and financing activities:
Capital expenditures included in Accounts payable	$	68,514	$	100,149

Non-cash investments in equity investments(a)	$	53,000	$	—

(a)Represents the Company’s investment in the Ketjen unconsolidated joint venture following the completion of the sale of our Refining Solutions business during the six-month period ended June 30, 2026. See Note 2, “Divestitures,” for further details regarding the sale of the Company’s Refining Solutions business.

Noncurrent liability changes and other, net within Cash flows from operating activities on the condensed consolidated statements of cash flows for the six-month period ended June 30, 2025 included the receipt of a $350.0 million customer

ALBEMARLE CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

prepayment. See Note 7, “Deferred Revenue,” for further details. Noncurrent liability changes and other, net within Cash flows from operating activities on the condensed consolidated statements of cash flows for the six-month period ended June 30, 2025 included $44.6 million representing the reclassification of the current portion of the one-time transition tax resulting from the enactment of the U.S. Tax Cuts and Jobs Act from Other noncurrent liabilities to Income taxes payable within current liabilities. The final payment of this transition tax was made during the six-month period ended June 30, 2026.

NOTE 20—Recently Issued or Adopted Accounting Pronouncements:

In November 2024, the FASB issued Accounting Standards Update (“ASU”) 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” to require tabular disclosures disaggregating certain types of expenses presented on the income statement within continuing operations, as well as disclosures about selling expenses. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted, and the amendments should be applied prospectively; however, retrospective application is also permitted. The Company is currently evaluating the impact this guidance will have on its financial statement disclosures.

In December 2025, the FASB issued ASU 2025-10, “Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities,” on the recognition, measurement and presentation of government grants received by business entities and amends certain existing disclosure requirements in ASC 832, Government Assistance. This guidance is effective for fiscal years beginning after December 15, 2028, and interim periods within those fiscal years. As allowed by its provisions, the Company early-adopted this guidance in the fourth quarter of 2025 and applied the amendments on a modified prospective basis. The adoption of this guidance does not have a significant impact on our condensed consolidated financial statements.

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