Albemarle ALB · USD

Segment and Geographic Area Information:The Company has three operating and reportable segments, which are: (1) Energy Storage; (2) Specialties; and (3) Ketjen. 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.In 2025, the Company signed definitive agreements to divest the controlling ownership interest of its Refining Solutions business and its remaining ownership interest in the Eurecat S.A. joint venture, both within the Ketjen segment. The Eurecat S.A. transaction was completed on January 23, 2026 and the Company expects the Refining Solutions business transaction to be completed in the first quarter of 2026, subject to customary closing conditions. Upon completion of that transaction, the Company will retain its PCS business and a 49% ownership interest in the Refining Solutions business. Until the Refining Solutions transaction is completed, the Company will continue to report the results of these businesses within the Ketjen reportable segment.The Corporate category is not considered to be a segment and includes corporate-related items not allocated to the operating segments. 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 performance of the segment.

Commitments and Contingencies:In the ordinary course of business, we have commitments in connection with various activities. The Company believes that amounts recorded are adequate for known items which might become due in the current year. The most significant commitments are as follows: EnvironmentalThe Company had the following activity in our recorded environmental liabilities for the years ended December 31, 2025, 2024 and 2023 (in thousands):Year Ended December 31,202520242023Balance, beginning of year$20,023 $34,149 $38,245 Expenditures(740)(4,159)(3,393)Accretion of discount849 1,126 1,094 Additions, liability releases and changes in estimates, net34 (11,304)(2,541)Foreign currency translation adjustments and other382 211 744 Balance, end of year20,548 20,023 34,149 Less amounts reported in Accrued expenses4,247 4,240 10,925 Amounts reported in Other noncurrent liabilities$16,301 $15,783 $23,224 Environmental remediation liabilities included discounted liabilities of $17.0 million and $16.8 million at December 31, 2025 and 2024, respectively, discounted at rates with a weighted-average of 4.0%, with the undiscounted amount totaling $34.2 million and $34.5 million at December 31, 2025 and 2024, 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 the 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 $40 million before income taxes, in excess of amounts already recorded.

Long-Term Debt:Long-term debt consisted of the following at December 31, 2025 and 2024 (in thousands):December 31,202520241.125% notes due 2025$— $393,346 1.625% notes due 2028588,600 521,500 3.45% Senior notes due 2029171,612 171,612 4.65% Senior notes due 2027650,000 650,000 5.05% Senior notes due 2032600,000 600,000 5.45% Senior notes due 2044350,000 350,000 5.65% Senior notes due 2052450,000 450,000 Interest-free loan300,000 300,000 Variable-rate foreign bank loans17,892 27,477 Finance lease obligations106,796 118,796 Other20,500 22,000 Unamortized discount and debt issuance costs(61,859)(88,566)Total long-term debt3,193,541 3,516,165 Less amounts due within one year74,077 398,023 Long-term debt, less current portion$3,119,464 $3,118,142 Aggregate annual maturities of long-term debt as of December 31, 2025 are as follows (in millions): 2026—$74.1; 2027—$710.0; 2028—$648.6; 2029—$231.6; 2030—$60.0; thereafter—$1,531.1.2022 NotesOn May 13, 2022, the Company issued a series of notes (collectively, the “2022 Notes”) as follows:•$650.0 million aggregate principal amount of senior notes, bearing interest at a rate of 4.65% payable semi-annually on June 1 and December 1 of each year, beginning on December 1, 2022. The effective interest rate on these senior notes is approximately 4.84%. These senior notes mature on June 1, 2027.•$600.0 million aggregate principal amount of senior notes, bearing interest at a rate of 5.05% payable semi-annually on June 1 and December 1 of each year, beginning on December 1, 2022. The effective interest rate on these senior notes is approximately 5.18%. These senior notes mature on June 1, 2032.•$450.0 million aggregate principal amount of senior notes, bearing interest at a rate of 5.65% payable semi-annually on June 1 and December 1 of each year, beginning on December 1, 2022. The effective interest rate on these senior notes is approximately 5.71%. These senior notes mature on June 1, 2052.2019 NotesThe Company has the following outstanding series of notes originally issued on November 25, 2019 (collectively, the “2019 Notes”) as follows:•€500.0 million aggregate principal amount of notes, bearing interest at a rate of 1.625% payable annually on November 25 of each year, beginning in 2020. The effective interest rate on these notes is approximately 1.74%. These notes mature on November 25, 2028.•$171.6 million aggregate principal amount of senior notes, bearing interest at a rate of 3.

Income Taxes: Income before income taxes and equity in net income of unconsolidated investments, and current and deferred income tax expense (benefit) are composed of the following (in thousands):Year Ended December 31,202520242023Income before income taxes and equity in net income of unconsolidated investments:Domestic$(624,724)$201,266 $(461,897)Foreign72,651 (1,965,091)708,635 Total$(552,073)$(1,763,825)$246,738 Current income tax expense (benefit):Federal$(11,226)$212,542 $(54,250)State1,683 (450)(3,395)Foreign85,255 105,399 387,045 Total$75,712 $317,491 $329,400 Deferred income tax expense (benefit):Federal$53,058 $(172,464)$(8,545)State21,183 1,523 (4,154)Foreign6,928 (59,465)113,576 Total$81,169 $(230,406)$100,877 Total income tax expense$156,881 $87,085 $430,277 Following the adoption and prospective application of Accounting Standards Update (“ASU”) 2023-09, the reconciliation of the U.S. federal statutory rate to the effective income tax rate for the year ended December 31, 2025 is as follows (in thousands, except percentages):Year Ended December 31,2025$%Federal statutory rate$(115,935)21.0 %State and local income tax, net of federal tax effect(a)22,513 (4.1)Foreign tax effects:ChinaStatutory tax rate difference5,318 (1.0)Change in valuation allowance8,692 (1.6)Other(2,885)0.5 ChileStatutory tax rate difference2,200 (0.4)State and local income tax (mining tax)7,066 (1.3)Non-deductible payments7,265 (1.3)Other2,430 (0.4)JordanStatutory tax rate difference3,580 (0.6)Tax rate incentive(28,639)5.2 NetherlandsStatutory tax rate difference(7,929)1.4 Non-deductible goodwill impairment46,712 (8.4)Pillar two tax impact10,855 (2.0)Return to provision(7,860)1.4 Other(3,487)0.6 United KingdomNon-deductible payments16,858 (3.1)Other2,752 (0.5)Other foreign jurisdictions15,103 (2.7)Effect of cross-border tax laws:Subpart F income5,573 (1.0)Outside basis difference(79,899)14.5 Tax credits:Research and development(1,748)0.3 Change in valuation allowance192,584 (34.9)Non-taxable or non-deductible items:Long-lived asset impairment51,576 (9.3)Section 162(m) limitation7,876 (1.4)Other, net(2,413)0.5 Change in unrecognized tax benefits(1,277)0.2 Effective income tax rate$156,881 (28.4)%(a)State taxes in Louisiana and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category.The reconciliation of the U.S.

Stock-based Compensation Expense:Incentive PlansWe have various share-based compensation plans that authorize the granting of (i) qualified and non-qualified stock options to purchase shares of our common stock, (ii) restricted stock and restricted stock units, (iii) performance unit awards and (iv) stock appreciation rights (“SARs”) to employees and non-employee directors, at our option. Stock options granted to employees generally vest over three years and have a term of ten years. Restricted stock and restricted stock unit awards vest in periods ranging from one to five years from the date of grant. Performance unit awards are earned at a level ranging from 0% to 200% contingent upon the achievement of specific performance criteria over periods ranging from one to three years. Distribution of earned units occurs generally 50% upon completion of the applicable measurement period with the remaining 50% distributed one year thereafter.In May 2017, the Company adopted the Albemarle Corporation 2017 Incentive Plan (the “Incentive Plan”), which replaced the Albemarle Corporation 2008 Incentive Plan. The maximum number of shares available for issuance to participants under the Incentive Plan is 4,500,000 shares. The adoption of the Incentive Plan did not affect awards already granted under the Albemarle Corporation 2008 Incentive Plan. In February 2023, the Company adopted the Albemarle Corporation 2023 Stock Compensation and Deferral Election Plan for Non-Employee Directors (the “Non-Employee Directors Plan”). The Non-Employee Directors Plan replaced the 2013 Stock Compensation and Deferral Election Plan for Non-Employee Directors, which expired by its terms in May 2023. Under the Non-Employee Directors Plan, a maximum aggregate number of 500,000 shares of our common stock is authorized for issuance to the Company’s non-employee directors; any shares remaining available for issuance under the prior plans were canceled. The aggregate fair market value of shares that may be issued to a director during any compensation year (as defined in the Non-Employee Directors Plan, generally July 1 to June 30) shall not exceed $750,000. At December 31, 2025, there were 2,015,321 shares available for grant under the Incentive Plan and 455,344 shares available for grant under the Non-Employee Directors Plan.Total stock-based compensation expense associated with our incentive plans for the years ended December 31, 2025, 2024 and 2023 amounted to $36.6 million, $33.

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 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.

Albemarle recognizes the importance of maintaining the security and integrity of our information systems and the data we collect, process, and store. We have implemented a comprehensive cybersecurity program based on the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework (“CSF”). As such, we map the CSF to corresponding legal, regulatory, and industry security practices, which guide our global policies and procedures to prevent, identify, protect, detect, respond, and recover from cybersecurity threats and incidents. Our cybersecurity program is managed by our Cybersecurity Director and is overseen by our Chief Information Officer (“CIO”), who assumes responsibility for the Chief Information Security Officer (“CISO”) role. The cybersecurity program is integrated into our overall enterprise risk management framework and thus is factored into our long-term strategy and business continuity plans. Our Cybersecurity Director brings extensive experience in cybersecurity, including service in U.S. Army Cyber Operations, and has led initiatives in threat management, risk mitigation, and security architecture to strengthen enterprise resilience. His expertise in incident response and security strategy ensures our cybersecurity program remains aligned with industry best practices and evolving cyber threats. The Audit and Finance Committee (“AFC”) of our Board of Directors oversees information security matters and the Company’s cybersecurity program. Our CIO reports on cybersecurity related matters, including the status of ongoing initiatives, incident reporting, compliance with regulatory requirements and industry standards, and emerging threats in global cybersecurity, on an as needed basis, but at least annually, to the AFC and executive leadership. The AFC and executive leadership offer guidance on certain matters and approval for material initiatives. In addition, the full Board of Directors is updated on cybersecurity matters as needed depending on the nature and materiality of a cybersecurity matter.All information assets are inventoried, classified, prioritized, and protected based on the respective risk, with appropriate cybersecurity controls applied to each. We have also implemented and maintain a documents management program which governs the classification, protection, and use of sensitive company data within the Albemarle environment.

Portions of Albemarle Corporation’s definitive Proxy Statement for its 2026 Annual Meeting of Shareholders to be filed with the U.S. Securities and Exchange Commission pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, are incorporated by reference into Part III of this Annual Report on Form 10-K.