Sociedad Química y Minera de Chile (SQM) Q3 2025 earnings summary

Executive summary

• Achieved record lithium sales volumes in Q3 2025, with improved pricing and strong demand from EV and ESS sectors, supported by operational efficiencies in Atacama and progress in Australia.

• Third quarter 2025 revenue reached $1,173 million, up 12.5% quarter-on-quarter and 9% year-on-year, with net income rising 35.8% year-over-year to $178.4M.

• Iodine and specialty plant nutrition segments delivered strong results, with high prices and sustainable growth in volumes and revenues.

• Updated CAPEX plan for 2025–2027 totals $2.7B, focused on lithium, iodine, and water infrastructure expansion.

• Earnings per share for the nine months were $1.42, compared to a loss of $1.84 per share in the prior year.

Financial highlights

• Gross profit for Q3 was $346 million, up 36% quarter-on-quarter and 24% year-on-year, with adjusted EBITDA at $404 million and a margin of 34%.

• Iodine revenues increased 5% year-over-year, with average prices near $73/kg.

• Lithium segment contributed 40% to gross profit, with record sales volumes (+43%) but lower average prices (-15%) year-on-year.

• Gross margin for the nine months was $904.1M (27.8% of revenues), down from $1,033.3M (29.9%) year-over-year.

• Adjusted EBITDA for the nine months was $1,071.6M (32.9% margin), compared to $1,155.5M (33.4%) in the prior year.

Outlook and guidance

• Lithium demand expected to exceed 1.5 million metric tons in 2025 (25% YoY growth), with 2026 demand projected over 1.7 million metric tons.

• Upward trend in lithium prices anticipated for Q4, with robust demand from EV and ESS markets.

• Iodine market demand projected to grow 3% in 2026, with prices expected to remain high.

• Specialty plant nutrition market expected to return to 4% growth in 2025, with healthy demand and firmer prices.

• No capital raise anticipated in 2026 due to a strong balance sheet and improving KPIs.