13 Best Magnesium Stocks to Buy Right Now

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4. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 36

Albemarle Corporation (NYSE:ALB), a global specialty chemicals company, operates across catalyst solutions, energy storage, and specialty chemicals. The company provides lithium compounds for bromine-based fire safety solutions, batteries, and performance catalysts for refining petrochemical industries. Moreover, magnesium hydroxide remains a core product in its portfolio, with the MAGNIFIN line of family retardants commonly used in construction electronics and transportation for halogen-free fire protection.

For Q4 ended December 31, 2024, Albemarle Corporation (NYSE:ALB) reported net sales of $1.2 billion, indicating a 48% decrease YoY due to lower lithium prices and volumes. However, fueled by higher volumes in the Specialties segment and cost reductions, EBITDA surged to $251 million, a rise of $386 million from the prior-year quarter. The company recorded a net loss of $1.2 billion due to restructuring charges and asset write-offs. On the other hand, the full-year revenue stood at $5.4 billion, with Energy Storage sales volume rising by 26%.

Meanwhile, the company has implemented firm measures to solidify long-term resilience. Albemarle Corporation (NYSE:ALB) decreased capital expenditures by over $450 million in 2024 and aims to further reduce spending by $100 million in 2025, targeting a range of $700-$800 million. Production enhancements are in progress, with the Chengdu site set to be placed into care and maintenance by mid-2025 and shifts in lithium production at Qinzhou to improve efficiency.

With Energy Storage sales volumes anticipated to grow by 10% in 2025, Ablemarle projects a steady recovery in the lithium market. Moreover, backed by cost enhancements and working capital management, the company targets breakeven free cash flow. With this, the company makes it to our list of the best magnesium stocks to buy.

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