Sociedad Química y Minera de Chile (SQM) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 revenue was $1,043 million, down over 30% year-over-year, with gross profit at $254 million and adjusted net income of $88 million; adjusted EBITDA was $308 million with a 30% margin.

• Revenues for the first half of 2025 were $2,079.3 million, down 12.6% year-over-year; net income rebounded to $226 million from a prior loss.

• Iodine was the most profitable segment, with a 57% adjusted gross margin and contributing over half of total gross profit; prices remain strong due to tight supply and healthy demand.

• Kwinana refinery in Australia was completed on time and on budget, with first product produced in July and ramp-up to full capacity expected in 18 months.

• Record-high iodine sales prices and strong pricing in SPN and Potassium businesses offset lithium price declines.

Financial highlights

• Revenue declined 19% year-over-year and 17% quarter-on-quarter in Q2 2025; gross profit dropped 34% year-over-year.

• Lithium sales volumes from Chile were nearly flat year-over-year, but full-year sales are expected to increase by at least 10% versus 2024.

• International Lithium Division sales guidance updated to approximately 20,000 metric tons of lithium carbonate equivalent for 2025.

• Adjusted EBITDA for the first half was $667.5 million (32.1% margin); Q2 margin was 29.5%.

• Net income per share for Q2 was $0.31.

Outlook and guidance

• Lithium sales volumes from Salar de Atacama expected to grow ~10% year-over-year; Australian operations sales guidance increased.

• Expectation of higher lithium sales volumes and prices in Q3 2025, with second-half sales and prices anticipated to exceed both the first half and the same period last year.

• Iodine prices expected to remain strong into coming years, with demand growth limited by supply constraints.

• Potash prices projected to remain stable; potassium sales volumes to stay reduced as per guidance.

• Mount Holland expansion decision deferred to 2026, with ongoing engineering and approvals; Salar Futuro environmental study submission planned for mid-2026, with major CapEx to begin post-approval, likely from 2030 onward.