This article first appeared on GuruFocus .
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Adjusted EBITDA:$92 million in Q2 2026, a 30% increase from $71 million in Q2 2025 and more than double the $44 million in Q1 2026.
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Net Income:$28 million attributable to shareholders in Q2 2026, more than double the $12 million in Q2 2025.
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Lithium Segment Revenue:More than tripled versus the prior year in Q2 2026.
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Lithium Segment Adjusted EBITDA:$31 million in Q2 2026, compared to $3 million in Q2 2025.
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Vanadium Segment Revenue:Increased by 36% compared to Q2 2025.
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Vanadium Segment Adjusted EBITDA:$33 million in Q2 2026, more than doubled versus Q2 2025.
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AMG Technologies Revenue:$190 million in Q2 2026, 21% lower than the $241 million in Q2 2025.
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AMG Technologies Adjusted EBITDA:$27 million in Q2 2026, compared to $53 million in the same period last year.
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AMG Engineering New Orders:$107 million in Q2 2026, with a book-to-bill ratio of 1.27 times.
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Tax Expense:Increased from $7 million in Q2 2025 to $19 million in Q2 2026.
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Cash Tax Payments:$30 million in Q2 2026.
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Operating Cash Flow:$55 million for Q2 2026.
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Cash Used in Investing Activities:$33 million for the quarter.
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Net Debt:$440 million at the end of Q2 2026.
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Cash and Cash Equivalents:$343 million as of June 30, 2026.
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Total Liquidity:$508 million at the end of Q2 2026.
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2026 Adjusted EBITDA Guidance:Increased to between $230 million and $250 million, up from the previous guidance of $210 million to $240 million.
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Adjusted EBITDA surged 30% year-over-year to $92 million in Q2 2026, more than doubling from Q1 2026, driven by strong vanadium and lithium segment performance.
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Completed the acquisition of Zinnwald Lithium, a major European lithium reserve, significantly expanding the resource base and consolidating the critical materials industry in Europe.
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Opened a new chrome metal production facility in New Castle, Pennsylvania, establishing the only domestic producer of chrome metal in North America, onshoring a strategically important material for aerospace and energy.
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Successfully refinanced debt with a new $500 million term loan at a reduced interest rate (SOFR plus 3.25%) and capped the all-in rate at 6.8%, strengthening the balance sheet and liquidity.
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Closed the divestiture of Graphite Crop Mill for $64 million and completed a significantly oversubscribed equity offering, boosting cash on hand to over $400 million as of July 29, 2026.
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Raised full-year 2026 adjusted EBITDA guidance to $230-$250 million, up from the previous $210-$240 million, reflecting improved market dynamics and operational execution.
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AMG Engineering signed $107 million in new orders during Q2 2026, achieving a book-to-bill ratio of 1.27x, more than double the prior year, indicating strong future demand.
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Lithium segment revenue more than tripled year-over-year, with Bitterfeld selling unqualified battery-grade lithium hydroxide and benefiting from higher lithium and tantalum prices.
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Vanadium segment adjusted EBITDA more than doubled year-over-year, driven by increased volumes from a diversified sourcing strategy and higher ferrovanadium prices.
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The company is free cash flow positive for the quarter, with operating cash flow increasing to $55 million, and has a strong liquidity position of $508 million at quarter-end.
Negative Points
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Q3 2026 is expected to be significantly down sequentially due to favorable phasing effects in Q2, which may not repeat.
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AMG Technologies adjusted EBITDA declined to $27 million from $53 million in Q2 2025, primarily due to lower sales at AMG Antimony.
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Tax expense increased to $19 million in Q2 2026 from $7 million in Q2 2025, driven by improved operating results but partially offset by losses with no benefit in Germany.
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Cash tax payments of $30 million in Q2 2026 were largely due to the very high antimony profitability last year, impacting cash flow.
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The company remains at the mercy of customer qualification schedules for Bitterfeld, with no clear split on qualified versus unqualified sales, creating uncertainty for 2027.
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Despite the acquisition of Zinnwald Lithium, the company faces challenges in balancing the value chain from spodumene to technical grade, requiring careful timeline management.
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Geopolitical tensions remain elevated, which could impact supply chains and operations, particularly in the Middle East where shipping is limited.
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The company's growth strategy relies on significant captive contractual supply, which may limit flexibility and increase risk if contracts are not secured.
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The divestiture of Graphite Crop Mill and other transactions, while strengthening the balance sheet, may reduce revenue streams and operational diversity.
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The company's net debt stands at $440 million, and despite refinancing, the interest rate environment could pose risks if rates rise above the capped level.
Q & A Highlights
Q: What were the key drivers behind the strong Q2 performance, and why was the full-year guidance increase not larger given the beat? A: Jackson Dunckel (CFO) stated that the key surprises were higher-than-expected lithium volumes and prices, as well as total volumes sold in vanadium. He explained that the guidance increase was not a straight $20 million addition because the company expects significant phasing effects in Q3 and Q4, cautioning analysts not to simply multiply the Q2 result by four.
Q: Can you provide more color on the vanadium sourcing strategy, the impact of the bankrupt competitor's feedstock, and other supply targets? A: Heinz Schimmelbusch (CEO) noted that the feedstock from the bankrupt competitor is "nice to have" but not significant to their highly diversified global supply strategy. Jackson Dunckel (CFO) clarified that this specific transaction is not expected to repeat in Q3 and Q4. The company's supply is largely contracted under long-term agreements, and they are expanding their footprint in the Middle East, including a multi-phase project in Saudi Arabia based on gasification ash.
Q: Regarding lithium, will the sales of unqualified battery-grade lithium hydroxide continue, and is Bitterfeld nearing breakeven? A: Michael Connor (Chief Corporate Development Officer) confirmed that sales of unqualified material are expected to continue and increase as the plant ramps up. He did not disclose exact volumes but pointed to the segment's sales growth, expecting it to grow throughout the year as they move towards full run rate.
Q: What should we expect for Bitterfeld's production and sales in 2027 as it moves towards full capacity and customer qualifications? A: Michael Connor (Chief Corporate Development Officer) stated that they expect to be operating at full capacity next year. The qualification process is dependent on customer schedules, with qualifications expected to start next quarter and increase through the end of the year. They expect to be producing battery-grade lithium hydroxide at full capacity for 2027.
Q: What is the status of the tantalum production, and when will it return to full capacity? A: Michael Connor (Chief Corporate Development Officer) explained that tantalum production is a byproduct of lithium production. At the full 130,000-ton run rate, they would produce roughly 400,000 pounds of tantalum. They hit that level in June and are looking to stabilize it in the second half of the year, expecting to run at full capacity next year.
Q: Given the strong demand and order backlog, are there opportunities to expand the capacity of the ALD engineering business? A: Heinz Schimmelbusch (CEO) highlighted that the engineering business has a very strong order intake and backlog, with half of the business directed to North America. He emphasized that ALD is the "guiding light" into the critical materials industry, driven by the aerospace industry's growth and the increasing share of critical materials due to higher operating temperatures in engines. He stated they are the number one critical materials company for aerospace engineering globally.
Q: How much net cash proceeds did the company receive from the divestiture of the Graphite business? A: Michael Connor (Chief Corporate Development Officer) confirmed that the company received $64 million in cash proceeds from the sale of AMG Graphite to Asbury Advanced Materials, which was completed on July 28.
Q: Is there increased pressure to complete the European lithium value chain, and what is the strategy for Zinnwald Lithium? A: Heinz Schimmelbusch (CEO) stated that AMG is fully prepared technically to make the bridge step in Brazil and expand the value chain from spodumene to technical grade in Europe. He emphasized a "harmonized value chain" with significant equity control, aiming to be the number one producer in Europe. Regarding Zinnwald, he mentioned they have developed a breakthrough technology to avoid chemical waste streams and plan to produce lithium chloride, which could elegantly lead to lithium metal production, an extremely interesting market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
