AMG Faces Revenue Drop Amid Market Weakness
- AMG reported third quarter revenue of $356 million, reflecting a 3% decrease from 2023.
- Order intake was $131 million, a significant 63% increase year-on-year, driven by strong demand.
- The company expects its lithium concentrate plant expansion to reach full capacity by the end of 2024.
On November 6, 2024, AMG Critical Materials N.V. disclosed its financial performance for the third quarter of 2024, revealing revenue of $356 million, a 3% decline from $367 million in the same period last year. This downturn was attributed to lower prices in lithium and vanadium. Order intake in this period reached $131 million, marking a 63% increase year-on-year, primarily driven by strong demand for remelting furnaces. Despite this demand, the EBITDA fell 65% to $10 million, significantly impacted by declining lithium prices. The company’s efforts to expand its lithium concentrate production from 90,000 tons to 130,000 tons per year are ongoing, with full capacity expected by the end of 2024. Additionally, AMG's vanadium segment saw a revenue decrease of 13%, while AMG Technologies experienced a revenue increase of 19% compared to last year. The results demonstrate a mixed performance across AMG's segments in a challenging market environment, prompting concerns over continued profitability as lithium prices remain low.