SQM Reports Earnings for the Six Months Ended June 30, 2025
Rhea-AI Summary
SQM (NYSE: SQM) reported financial results for H1 2025, with total revenues of US$2,079.3 million, down 12.6% from US$2,378.1 million in H1 2024. The company posted net income of US$226.0 million (US$0.79 per share), compared to a net loss of US$(655.9) million in the same period last year.
Q2 2025 performance showed net income of US$88.4 million (US$0.31 per share), declining 58.6% year-over-year. The quarter was impacted by lower lithium market prices, affecting contracted volumes. Despite challenges, SQM expects 10% growth in sales volumes from Salar de Atacama operations compared to last year.
Notably, SQM announced the completion of the Kwinana refinery in Australia through Covalent, its joint venture with Wesfarmers. The facility achieved first production in July and is expected to produce 50,000 tons of battery-grade lithium hydroxide annually after an 18-month ramp-up period.
Positive
- Turned around from net loss to profit of US$226.0 million in H1 2025
- Record-high iodine sales prices
- Strong price environment in SPN and Potassium businesses
- Completion of Kwinana refinery with expected 50,000 tons annual lithium hydroxide production
- Projected 10% growth in Salar de Atacama sales volumes
Negative
- Revenue declined 12.6% year-over-year to US$2,079.3 million in H1 2025
- Q2 net income dropped 58.6% year-over-year to US$88.4 million
- Gross profit margin decreased to 26.8% from 31.6% year-over-year
- Lower lithium market prices affecting contracted volumes
- Kwinana refinery requires 18-month ramp-up period before full capacity
News Market Reaction
On the day this news was published, SQM declined 1.53%, reflecting a mild negative market reaction. Argus tracked a trough of -2.8% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $200M from the company's valuation, bringing the market cap to $12.87B at that time.
Data tracked by StockTitan Argus on the day of publication.
| Highlights | |
| • | SQM reported total revenues for the six months ended June 30, 2025 of US |
| • | Net income for the six months ended June 30, 2025 of US |
| • | Continue to observe record- high iodine sales price. |
| • | Strong price environment in SPN and Potassium businesses. |
| • | Increasing sales volumes for the coming months from the International Lithium Division and completion of the Kwinana refinery. |
| SQM will hold a conference call to discuss these results on Wednesday, August 20, 2025 at 12:00pm EDT (12:00pm Chile time). | |
| Participant Call link: https://register-conf.media-server.com/register/BI096c4f4e6f094d1db8eba9c6ed4a9bbd | |
| Webcast: https://edge.media-server.com/mmc/p/2zir238k | |
SANTIAGO, Chile, Aug. 20, 2025 (GLOBE NEWSWIRE) -- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today net income for the six months ended June 30, 2025, of US
Gross profit reached US
The Company also announced net income for the second quarter of 2025 of US
SQM’s Chief Executive Officer, Ricardo Ramos, stated, “As anticipated, during the second quarter, we navigated a period of lower lithium market prices than those observed in previous quarters. In this context, some of the contracts we had in place, hit the lower limits set in those contracts, affecting the volumes agreed. As a result, the total volume sold during the second quarter of this year was lower than what was reported in the first quarter of this year, despite the growth seen in the market. With that said, we now expect sales volumes from our Salar de Atacama operations to grow by approximately
He added: “We are also pleased to announce that Covalent, our Joint Venture with Wesfarmers in Australia, has completed construction of the Kwinana refinery in Australia, and achieved first product produced in July at the expected quality and cost. The ramp-up period is expected to take 18 months, and once at full capacity, the Mt. Holland Lithium Project is expected to produce approximately 50,000 tons of battery-grade lithium hydroxide per year, contributing to the growing demand of electric vehicles.”
To see full press release please visit our website: https://ir.sqm.com/
For media inquiries, contact: SQM Lithium Chile Division: Ignacia Lopez / ignacia.lopez@sqm.com SQM International Lithium Division: Diana Wearing Smith / diana.wearingsmith@sqm.com SQM Iodine & Plant Nutrition Division: Carolina Guzman / carolina.guzman@sqm.com
FAQ
What were SQM's earnings per share for H1 2025?
How much did SQM's revenue decline in Q2 2025?
What is the expected production capacity of SQM's new Kwinana refinery?
How much growth does SQM expect from Salar de Atacama operations?
What factors affected SQM's Q2 2025 performance?
