AMG Critical Materials N.V.

AMG reported Q2 2026 adjusted EBITDA of $92 million, up 30% from $71 million in Q2 2025 and more than double Q1 2026's $44 million. Net income attributable to shareholders was $28 million versus $12 million last year. Lithium segment revenue more than tripled year over year and adjusted EBITDA was $31 million versus $3 million; vanadium revenue rose 36% and adjusted EBITDA was $33 million, while AMG Technologies revenue was $190 million, down 21% year over year, and adjusted EBITDA was $27 million versus $53 million. Operating cash flow was $55 million, investing cash outflow was $33 million, and the quarter was free cash flow positive. The company ended Q2 with $343 million of cash and cash equivalents, $440 million of net debt, and $508 million of total liquidity. Management raised full-year 2026 adjusted EBITDA guidance to $230 million-$250 million from $210 million-$240 million and said Q3 should be significantly down sequentially due to favorable Q2 phasing.

Heinz Schimmelbusch emphasized that earlier price increases were now supporting earnings and cash generation, and said Q2 showed the potential of AMG's platform. He highlighted strategic expansion in critical materials, including the Zinnwald Lithium acquisition and the opening of the Newcastle, Pennsylvania chrome metal facility as steps that strengthen AMG's resource base and domestic supply position. His tone was optimistic and expansive, with repeated emphasis on Europe, onshoring, and building controlled value chains across lithium and other critical materials.

Jackson Dunckel focused on the drivers behind the quarter's outperformance: lithium volumes and price, vanadium volumes, and favorable phasing effects. He noted lithium adjusted EBITDA of $31 million, vanadium adjusted EBITDA of $33 million, net income of $28 million, operating cash flow of $55 million, and free cash flow positivity. He also pointed to a stronger balance sheet after refinancing a $200 million revolver and issuing a new 7-year $500 million Term Loan B at SOFR plus 3.25%, capped at an all-in rate of 6.8%, plus $64 million of proceeds from the graphite sale, leaving more than $400 million of cash on hand as of July 29.

Analysts pressed on why guidance did not rise by as much as the Q2 beat, and management said the main surprises were higher lithium volumes/prices and stronger vanadium volumes, but Q3 and Q4 will not repeat the Q2 phasing benefit. Questions also focused on vanadium feedstock sourcing; management said the bankrupt-competitor opportunity was helpful but not significant, and that the broader supply structure remains long-term contracted while AMG expands in the Middle East. In lithium, management said Bitterfeld unqualified battery-grade sales should continue and increase, and they expect full-capacity operation next year, though customer qualification timing is not fully under their control.