Albemarle (ALB) Financial History

We have previously established and publicly announced certain goals, commitments and targets, which we may refine in the future, in respect of our sustainability initiatives.

Potential transition risks related to climate change include potential loss of customers due to climate-related performance and increased costs related to carbon pricing.

in decreased production and/or increased costs.

The Chemical Facility Anti-Terrorism Standards program (“CFATS Program”), which is administered by the Department of Homeland Security (“DHS”), identifies and regulates chemical facilities to ensure that they have sec…

We are also subject to federal regulations that have heightened security requirements for the transportation of hazardous chemicals in the U.S.

The occurrence or threat of extraordinary events, including domestic and international terrorist attacks, may disrupt our operations and increase costs.

In addition, risks associated with information technology systems failures or network disruptions, including risks associated with upgrading our systems or in successfully integrating information technology and other…

We have taken steps to prevent cybersecurity attacks, including by adopting Company policies covering cybersecurity and AI and engaging the Board of Directors in oversight of our cybersecurity efforts, and to mitigate…

We may be unable to identify appropriate acquisition or joint venture candidates or may be limited by our financial resources, including available cash and borrowing capacity to complete such acquisitions or joint ven…

We are subject to the regular examination of our income tax returns by various tax authorities.

Our future effective tax rates could be affected by changes in the mix of earnings in countries with differing statutory tax rates, rules governing transfer pricing for transactions between our affiliates, expirations…

Interest rates may have a direct impact on our business to the extent we borrow under our unsecured credit facility, utilize our commercial paper program, or incur other forms of variable rate indebtedness or new inde…

In 2024, we announced that we were undertaking proactive measures to optimize our cost structure in response to changing end-market conditions.

Under U.S.

Additionally, our senior credit facilities and the indentures governing our senior notes contain select restrictive covenants, which provide constraints on our financial flexibility.

As of December 31, 2025, our aggregate long-term debt was $3.2 billion, primarily related to senior notes.

Our success depends on our ability to attract and retain key personnel including our management team.

In 2024, the Company stopped construction of Kemerton Trains 3 and 4, and announced that it was placing Kemerton Train 2 into care and maintenance in an effort to optimize its cost structure in light of the depressed…

In addition, the price of lithium products is impacted by their purity and performance.

Our ability to successfully develop our lithium resources and generate a return on investment will be affected by changes in the demand for and market price of lithium-based end products, such as lithium hydroxide.

Demand and market prices for lithium will greatly affect the value of our investment in our lithium resources and conversion facilities, and our revenues and profitability generally.

For our existing operations, we utilize geological, hydrogeological and metallurgical assumptions, financial projections and price estimates.

Our inability to develop lithium or bromine reserves that are economically viable could have a material adverse effect on our future profitability.

Protection of our proprietary processes, methods and compounds and other technology is important to our business.

In September 2023, in connection with voluntary self-reporting of potential violations of the FCPA, we finalized agreements with the U.S.

In connection with the sale of certain properties and businesses, such as the divestiture of the controlling interest in our Refining Solutions business, we have agreed to indemnify the purchasers of such properties f…

We may be subject to indemnity claims and liable for other payments relating to properties or businesses we have divested, including in connection with the divestiture of the controlling interest in our Refining Solut…

While we are committed to operating in a socially responsible manner, there can be no assurance that our efforts in this respect will mitigate this potential risk.

Relationships with local communities and other stakeholders may impact our operations, particularly in Chile and Western Australia.

Our business and our customers are subject to significant requirements under REACH, which imposes obligations on E.U.

Agencies in the European Union (“E.U.”) continue to evaluate the risks to human health and the environment associated with certain brominated fire safety solutions such as tetrabromobisphenol A and decabromodiphenyl e…

Our HPC catalysts are used by petroleum refiners in their processing units to reduce the quantity of sulfur and other impurities in petroleum products.

The results of the Refining Solutions business are subject to fluctuation because of irregularities in the demand for our HPC catalysts and certain of our agrichemicals.

Additionally, certain of these industries are subject to regulatory schemes that may shift with changes in the political climate.

Our decision to develop a project is typically based on the results of feasibility studies, which estimate the anticipated economic returns of a project.

Development projects are inherently risky and may require more capital than anticipated or not prove to be economically viable based on ultimate costs and returns of a project, which could adversely affect our business.

Our industries and the end markets into which we sell our products experience technological change and product improvement.

affect our margins and profitability.

We compete against a number of highly competitive global chemical producers.

Our inability to secure key raw materials, or to pass through increases in costs and expenses for other raw materials and energy, on a timely basis or at all could have an adverse effect on the margins of our products…

In 2025, net sales shipped to or within China represented 39% of our total net sales.

Furthermore, we are subject to rules and regulations related to anti-bribery and antitrust prohibitions of the U.S.

In addition, certain of our operations, including joint ventures, and ongoing capital projects are in regions of the world such as Asia, the Middle East and South America that are of high risk due to significant civil…

•The occurrence or threat of extraordinary events, including domestic and international terrorist attacks, may disrupt our operations and increase costs.

•Our inability to acquire or develop lithium or bromine reserves that are economically viable could have a material adverse effect on our future profitability.

•We may be subject to indemnity claims and liable for other payments relating to properties or businesses we have divested, including in connection with the divestiture of the controlling interest in our Refining Solu…

•The results of the Refining Solutions business are subject to fluctuation because of irregularities in the demand for our HPC catalysts and certain of our agrichemicals.

•Development projects are inherently risky and may require more capital than anticipated or not prove to be economically viable based on ultimate costs and returns of a project, which could adversely affect our business.

•Our inability to secure key raw materials, or to pass through increases in costs and expenses for other raw materials and energy, on a timely basis or at all could have an adverse effect on the margins of our product…

present numerous operational, regulatory, reputational, financial, legal, and other risks, any of which could have a material adverse impact, including on our reputation and stock price.

In recent years, there has been an increased focus from stakeholders, regulators and the public in general on sustainability matters, including greenhouse gas emissions and climate-related risks, renewable energy, wat…

We maintain property, business interruption, casualty, and other insurance, but such insurance may not cover all risks associated with the hazards of our business and is subject to limitations, including deductibles a…

operations.

•creating competitive disadvantages relative to other companies with lower debt level.

•reducing funds available for operations, capital expenditures, share repurchases, dividends and other activities; and

•to the extent that our debt is subject to floating interest rates, increasing our vulnerability to fluctuations in market interest rates;

•reducing access to capital and increasing borrowing costs generally or for any additional indebtedness to finance future operating and capital expenses and for general corporate purposes;

•reducing flexibility in planning for, or reacting to, changes in our businesses, the competitive environment and the industries in which we operate, and to technological and other changes;

Any such additional indebtedness and the related debt service obligations (whether or not arising from acquisitions) could have important consequences and risks for us, including:

We have historically expanded our business primarily through acquisitions.

We may continue to expand our business through acquisitions and we may incur additional indebtedness, including indebtedness related to acquisitions.

As part of our business growth strategy, we have acquired businesses and entered into joint ventures in the past and intend to pursue acquisitions and joint venture opportunities in the future.

Our effective tax rate and related tax balance sheet attributes could be impacted by changes in tax legislation throughout the world.

Restrictive covenants in our debt instruments may adversely affect our business.

As of December 31, 2024, we had approximately 8,300 employees, including employees of our consolidated joint ventures.

Our lithium business is significantly dependent on the development and adoption of new applications for lithium batteries and the growth in demand for plug-in hybrid electric vehicles and battery electric vehicles.

There is risk to the growth of lithium markets.

reserves, including many factors beyond our control, that could cause results to differ materially from expected financial and operating results or result in future impairment charges.

Protection of our proprietary processes, methods and compounds and other technology is important to our business.

We are subject to government regulation in non-U.S.

We are subject to extensive foreign government regulation that can negatively impact our business.

condition and results of operations, including, but not limited to, as a result of increased costs, reduced revenues, diversion of management attention, reputational harm, disruptions to our operations and other reasons.

Agencies in the European Union (“E.U.”) continue to evaluate the risks to human health and the environment associated with certain brominated fire safety solutions such as tetrabromobisphenol A and decabromodiphenyl e…

In December 2021, the United States adopted the Uyghur Forced Labor Prevention Act (“UFLPA”) which creates a rebuttable presumption that any goods, wares, articles, and merchandise mined, produced, or manufactured in…

•our foreign operations may experience staffing difficulties and labor disputes;

You should consider carefully the following risks when reading the information, including the financial information, contained in this Annual Report on Form 10-K.

•We may continue to expand our business through acquisitions and we may incur additional indebtedness, including indebtedness related to acquisitions.

•Restrictive covenants in our debt instruments may adversely affect our business.

•There is risk to the growth of lithium markets.

•We are subject to extensive foreign government regulation that can negatively impact our business.

Impacts of climate change include changes in rainfall and in storm patterns and intensities, water scarcity, significantly changing sea levels and increasing atmospheric and water temperatures, among others.

We are potentially at risk if one or more of our insurance carriers fail.

We utilize a combination of commercial insurance and self-insurance programs, including a captive insurance subsidiary, to manage certain property, liability, and/or other risks, but such insurance may not cover all r…

There can be no assurance that AI systems will perform as expected, or that future market or regulatory developments will not materially delay our efforts or increase compliance burdens.

Our AI‑related activities also expose us to legal risks, as global regulatory frameworks—including U.S.

We currently use certain AI tools and are continually evaluating additional applications of AI technologies to enhance productivity and operational efficiency across our business.

Integration of AI technologies into our operations may introduce new risks, require significant additional investment, and materially impact our competitive position if unsuccessful.

We face increased information technology security and fraud risks due to the ability of employees to work remotely, which may create additional information security vulnerabilities and/or magnify the impact of any dis…

We and our third-party service providers have been and will continue to be subject to advanced and persistent threats in the areas of information and operational technology security and fraud.

We periodically assess our business structure in order to maintain operational efficiency and manage our cost structures.

We may discontinue or divest all or part of a particular business or plant as we periodically assess our business structure.

tax legislative changes thereof could impact our initial assessment; therefore, we will continue to monitor and refine our assessment as further guidance is made available.

Our effective tax rate and related tax balance sheet attributes could be impacted by changes in tax legislation throughout the world.

During 2024, we made the decision to stop construction of Kemerton Trains 3 and 4, and put Kemerton Train 2 into care and maintenance.

In 2025, we entered into definitive agreements to divest our 50% ownership interest in Eurecat S.A., a joint venture within the Refining Solutions reporting unit, and to divest the controlling ownership interest in ou…

In October 2025, we announced that we had reached a definitive agreement to divest the controlling ownership interest in our Refining Solutions business in a series of transactions that will result in the formation of…

U.S.

As of December 31, 2025, we had approximately 7,800 employees, including employees of our consolidated joint ventures.

operations.

profitability of HPC catalysts sales can have a significant impact on revenue and profit in any one quarter.