Sociedad Química y Minera de Chile (SQM) Q1 2026 earnings summary

Executive summary

• Achieved strong operational and financial results in Q1 2026, with revenue up 69.8% year-over-year to $1,760.1 million and net income rising 165.2% to $364.7 million ($1.28/share).

• Record lithium sales volumes and robust pricing, supported by tight global supply-demand dynamics.

• Novandino Lithium (Nova Andino Litio) partnership with Codelco completed its first full quarter, contributing over $530 million to the Chilean state.

• Continued leadership and upgraded guidance in specialty plant nutrition and iodine, with ongoing capacity expansions.

• Advancing environmental permitting for the Salar Futuro lithium project.

Financial highlights

• Q1 2026 lithium sales volumes rose 25% year-over-year to approximately 69,000 MT LCE, with revenues up 135.7% to $1,185.5 million.

• Average realized lithium price in Q1 2026 was $18/kg, up from $10/kg in Q4 2025.

• Gross profit reached $778.6 million (44.2% margin), and adjusted EBITDA was $837 million (47.6% margin).

• Net income margin increased to 20.7% from 13.3% year-over-year.

• Effective tax rate increased due to higher profitability and mining royalty rates, with mining royalty currently at 11%-12%.

Outlook and guidance

• Raised lithium sales volume guidance to 15% growth over 2025, expecting over 270,000 MT from Salar de Atacama.

• Specialty Plant Nutrition sales volume guidance increased to at least 10% growth, capitalizing on reduced Chinese exports.

• Iodine sales volumes expected to be in line or slightly higher than last year, with continued strong pricing and 3% market growth projected for 2026.

• Potassium volumes expected to decline by 50% in 2026.

• Industrial chemicals volumes and prices expected to remain stable.