Sociedad Química y Minera de Chile (SQM) Q4 2024 earnings summary

Executive summary

• Total 2024 revenues were slightly above $4.5 billion (US$4,528.8M), with record lithium and iodine sales volumes, but net income was significantly impacted by a one-time $1.1 billion (US$1,106.2M) tax charge, resulting in a net loss of US$404.4M.

• Fourth quarter 2024 revenue was US$1,074 million, down 18% year-over-year, with net income of US$120 million, a 73% decline.

• Adjusted EBITDA for 2024 was US$1,483.6M (32.8% margin), down from US$3,180.1M (42.6%) in 2023.

• Record lithium and iodine sales volumes were driven by strong global demand, especially in China and for X-ray contrast media applications.

• Continued capacity expansion in lithium and iodine, with major investments in Chile, Australia, and new exploration in Namibia.

Financial highlights

• 2024 revenues exceeded $4.5 billion, with gross profit of $1.3 billion (US$1,327.1M, 29.3% margin), down from $3.1 billion (41.2%) in 2023.

• Net income was reduced by a $1.1 billion (US$1,106.2M) one-time charge related to a tax dispute.

• Record lithium sales volumes of nearly 205,000 metric tons for 2024, with Q4 sales surpassing 58,000 metric tons.

• Iodine segment achieved record volumes and benefited from strong price growth.

• Adjusted EBITDA margin for 2024 was 32.8%.

Outlook and guidance

• Lithium sales volumes expected to grow ~15% in 2025, but average realized prices anticipated to be lower than 2024.

• Iodine prices expected to remain stable in 2025, with sales volumes in line with 2024.

• Potassium sales volumes projected to drop ~50% in 2025 due to production strategy shifts.

• Capital expenditure for 2025 planned at $1.1 billion, focused on lithium, iodine, and international expansion.

• Specialty plant nutrition market expected to grow 4-5% in 2025.