Q2 2026 AMG Critical Materials NV Earnings Call Transcript
Key Points
- 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.
- Completed the acquisition of Zinnwald Lithium, a major European lithium reserve, significantly expanding the resource base and consolidating the critical materials industry in Europe.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Vanadium segment adjusted EBITDA more than doubled year-over-year, driven by increased volumes from a diversified sourcing strategy and higher ferrovanadium prices.
- 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.
- Q3 2026 is expected to be significantly down sequentially due to favorable phasing effects in Q2, which may not repeat.
- AMG Technologies adjusted EBITDA declined to $27 million from $53 million in Q2 2025, primarily due to lower sales at AMG Antimony.
- 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.
- Cash tax payments of $30 million in Q2 2026 were largely due to the very high antimony profitability last year, impacting cash flow.
- 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.
- Despite the acquisition of Zinnwald Lithium, the company faces challenges in balancing the value chain from spodumene to technical grade, requiring careful timeline management.
- Geopolitical tensions remain elevated, which could impact supply chains and operations, particularly in the Middle East where shipping is limited.
- The company's growth strategy relies on significant captive contractual supply, which may limit flexibility and increase risk if contracts are not secured.
- The divestiture of Graphite Crop Mill and other transactions, while strengthening the balance sheet, may reduce revenue streams and operational diversity.
- 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.
Good morning everyone, and welcome to today's AMG Q2 2026 earnings conference call. (Operator Instructions) It is now my pleasure, to turn the conference over to Thomas Swoboda. Please go ahead, sir.
Thank you, Ross. Good day, everyone. Welcome to AMG second quarter 2026 earnings call. Joining me on this call is the entire AMG Management Board, namely Dr. Heinz Schimmelbusch, the Chairman of the Management Board and Chief Executive Officer, Mr. Jackson Dunckel, the Chief Financial Officer, and Mr. Michael Connor, the Chief Corporate Development Officer. We published our second quarter 2026 annual press release yesterday, along with a presentation for investors, both of which you can find on our website. They include our disclaimers about forward-looking statements. Today call will begin with a review of the comments on which surface early morning.
Today call will begin with a review of the second quarter 2026 business highlights by Dr. Heinz Schimmelbusch . Mr. Michael Connor
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