AMG Raises Guidance After Lithium Volumes Power $92M EBITDA Quarter

AMG Critical Materials reported second-quarter adjusted EBITDA of $92 million, up 30% from $71 million a year earlier, and lifted its full-year guidance after lithium sales volumes nearly tripled and production costs fell sharply.

The company sold 35,020 dry metric tons of lithium concentrates in the quarter, compared with 13,278 a year earlier. About 12,000 of those tons were shipments delayed from the first quarter. The average realized price more than doubled to $1,285 per ton CIF China from $621. Production costs dropped to $183 per ton from $489, helped by higher volumes and stronger tantalum byproduct prices.

CEO Heinz Schimmelbusch said the quarter showed the platform's earnings potential. He also warned that favorable phasing effects inflated the result and that the third quarter would be "significantly down sequentially."

AMG now expects 2026 adjusted EBITDA of $230 million to $250 million, up from a prior range of $210 million to $240 million. The first-half total of roughly $150 million puts the midpoint within reach even with a weaker third quarter.

The lithium segment posted adjusted EBITDA of $31 million, versus $3 million in the same period last year. Production hit 11,000 metric tons in June, in line with the 130,000-ton-per-annum target. Schimmelbusch said the company feels comfortable hitting that target on a sustained basis toward year-end, though monthly fluctuations will continue.

AMG Vanadium's adjusted EBITDA of $33 million more than doubled, driven by higher ferrovanadium prices and increased volumes from a global sourcing strategy. The company also bought domestic volumes from a bankrupt competitor.

AMG Engineering signed $107 million in new orders during the quarter, led by turbine blade coating and induction furnaces. The book-to-bill ratio hit 1.27x, more than double the 0.63x a year ago. The order backlog reached $391 million as of June 30.

AMG Technologies' adjusted EBITDA fell to $27 million from $53 million a year earlier, when the segment benefited from exceptional profitability in antimony.

The company ended June with $508 million in total liquidity. That figure excludes more than $100 million in cash from a debt raise and the sale of Graphit Kropfmühl. By July 28, cash on hand stood at over $400 million after accounting for the Zinnwald purchase, a 10% share sale in April, and a term loan refinancing.

AMG closed its purchase of Zinnwald Lithium on July 27, adding one of Europe's largest lithium reserves. Schimmelbusch said the company's experience in mining, refining, and certifying critical materials will help reduce the project's capital needs and operating costs while improving its environmental footprint.

Income tax expense rose to $19 million from $7 million on higher earnings, with losses in Germany providing some offset. Cash tax payments hit $30 million, up from $12 million, driven by higher antimony profitability in the prior year.

SG&A expenses totaled $58 million, flat with the same period last year. Higher professional fees in lithium related to the Zinnwald acquisition were offset by lower spending in vanadium.

AMG's Alpha Score sits at 64 out of 100, a Moderate rating within the Financial Services sector. AMG stock page