Arcadium Lithium plc reported its financial results for the three and nine months ended September 30, 2024, reflecting significant changes following the Allkem Livent Merger completed on January 4, 2024. For Q3 2024, the company generated revenue of $203.1 million, a decrease of approximately 4% from $211.4 million in Q3 2023. Year-to-date (YTD) revenue reached $718.8 million, up 2.6% from $700.7 million in the prior year, primarily driven by contributions from Allkem, which amounted to $242.9 million.

Net income for Q3 2024 was $24.7 million, a substantial decline of 71.7% compared to $87.4 million in Q3 2023. YTD net income also decreased to $139.1 million, down 52% from $292.4 million in the same period last year. The decline in profitability was attributed to lower gross margins, which fell by 56% to $56.2 million in Q3 2024, and increased restructuring and administrative expenses related to the merger.

The company’s total assets surged to $10,004.6 million as of September 30, 2024, compared to $3,230.1 million at the end of 2023, largely due to the acquisition of Livent and Allkem. Goodwill increased significantly to $1,293.2 million, reflecting the excess of purchase price over the fair value of net assets acquired. Total liabilities also rose to $2,870.7 million, up from $946.3 million, primarily due to the debt assumed in the merger.

Arcadium's cash and cash equivalents decreased to $137.9 million from $237.6 million at the end of 2023. The company reported cash used in operating activities of $(158.9) million for the YTD period, a stark contrast to cash provided of $261.8 million in the previous year. This shift was driven by decreased net income, increased inventories, and higher tax payments.

Strategically, Arcadium announced plans to suspend operations at its Mt Cattlin site due to declining spodumene prices, with a non-cash impairment charge of $51.7 million recorded in Q3 2024. The company also completed the acquisition of Li-Metal Corp's lithium metal division for $11 million, enhancing its production capabilities.

Looking ahead, Arcadium entered into a transaction agreement with Rio Tinto on October 9, 2024, to sell its ordinary shares for $5.85 each, pending regulatory and shareholder approvals. This transaction, if completed, would lead to the delisting of Arcadium's shares from the New York Stock Exchange.