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SQM Reports Earnings for the Three Months Ended March 31, 2025

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SQM reported its Q1 2025 financial results with total revenues of US$1,036.6 million, down 4.4% from US$1,084.5 million in Q1 2024. The company posted a net income of US$137.5 million (US$0.48 per share), compared to a net loss of US$(869.5) million in the same period last year. Lithium sales volumes grew approximately 27% year-on-year, driven by strong EV market demand, particularly in China, and energy storage systems. However, the company expects lower lithium prices in Q2 2025 due to market oversupply. The Mount Holland refinery plant commissioning is progressing as planned, while SQM continues expanding its Chilean lithium production capacity to 240,000 MT of carbonate and 100,000 MT of hydroxide. The iodine business showed strong performance with record-high prices and steady market growth of 1-2% annually.
SQM ha comunicato i risultati finanziari del primo trimestre 2025 con ricavi totali di US$1.036,6 milioni, in calo del 4,4% rispetto a US$1.084,5 milioni nel primo trimestre 2024. L'azienda ha registrato un utile netto di US$137,5 milioni (US$0,48 per azione), rispetto a una perdita netta di US$(869,5) milioni nello stesso periodo dell'anno precedente. I volumi di vendita del litio sono cresciuti di circa il 27% su base annua, trainati dalla forte domanda del mercato dei veicoli elettrici, in particolare in Cina, e dai sistemi di accumulo energetico. Tuttavia, la società prevede prezzi del litio più bassi nel secondo trimestre 2025 a causa di un eccesso di offerta sul mercato. La messa in funzione dell'impianto di raffinazione di Mount Holland procede secondo i piani, mentre SQM continua ad espandere la capacità produttiva di litio in Cile a 240.000 tonnellate di carbonato e 100.000 tonnellate di idrossido. Il settore dello iodio ha mostrato una forte performance con prezzi record e una crescita stabile del mercato dell'1-2% annuo.
SQM informó sus resultados financieros del primer trimestre de 2025 con ingresos totales de US$1.036,6 millones, una disminución del 4,4% respecto a US$1.084,5 millones en el primer trimestre de 2024. La compañía registró un ingreso neto de US$137,5 millones (US$0,48 por acción), en comparación con una pérdida neta de US$(869,5) millones en el mismo período del año anterior. Los volúmenes de ventas de litio crecieron aproximadamente un 27% interanual, impulsados por la fuerte demanda del mercado de vehículos eléctricos, especialmente en China, y los sistemas de almacenamiento de energía. Sin embargo, la empresa espera precios más bajos del litio en el segundo trimestre de 2025 debido a una sobreoferta en el mercado. La puesta en marcha de la planta de refinación Mount Holland avanza según lo previsto, mientras SQM continúa ampliando su capacidad de producción de litio en Chile a 240.000 toneladas de carbonato y 100.000 toneladas de hidróxido. El negocio de yodo mostró un sólido desempeño con precios récord y un crecimiento estable del mercado del 1-2% anual.
SQM은 2025년 1분기 재무 결과를 발표하며 총 매출액이 10억 3,660만 달러로, 2024년 1분기의 10억 8,450만 달러 대비 4.4% 감소했다고 밝혔습니다. 회사는 순이익 1억 3,750만 달러(주당 0.48달러)를 기록했으며, 이는 작년 같은 기간의 순손실 8억 6,950만 달러와 비교됩니다. 리튬 판매량은 전년 대비 약 27% 증가했으며, 특히 중국의 강력한 전기차 시장 수요와 에너지 저장 시스템이 성장의 원동력이었습니다. 다만, 2025년 2분기에는 시장 공급 과잉으로 인해 리튬 가격 하락이 예상됩니다. 마운트 홀랜드 정제 공장 가동은 계획대로 진행 중이며, SQM은 칠레 내 리튬 생산 능력을 탄산염 24만 톤, 수산화물 10만 톤으로 확장하고 있습니다. 아이오딘 사업은 기록적인 가격과 연간 1-2%의 안정적인 시장 성장으로 강한 실적을 보였습니다.
SQM a publié ses résultats financiers du premier trimestre 2025 avec un chiffre d'affaires total de 1 036,6 millions de dollars US, en baisse de 4,4 % par rapport à 1 084,5 millions de dollars US au premier trimestre 2024. La société a enregistré un bénéfice net de 137,5 millions de dollars US (0,48 dollar US par action), contre une perte nette de 869,5 millions de dollars US sur la même période l'année précédente. Les volumes de ventes de lithium ont augmenté d'environ 27 % en glissement annuel, stimulés par une forte demande du marché des véhicules électriques, notamment en Chine, et des systèmes de stockage d'énergie. Cependant, l'entreprise prévoit des prix du lithium plus bas au deuxième trimestre 2025 en raison d'une offre excédentaire sur le marché. La mise en service de l'usine de raffinage de Mount Holland progresse comme prévu, tandis que SQM continue d'élargir sa capacité de production de lithium au Chili à 240 000 tonnes de carbonate et 100 000 tonnes d'hydroxyde. Le secteur de l'iode a montré une solide performance avec des prix records et une croissance stable du marché de 1 à 2 % par an.
SQM meldete seine Finanzergebnisse für das erste Quartal 2025 mit einem Gesamtumsatz von 1.036,6 Millionen US-Dollar, was einem Rückgang von 4,4 % gegenüber 1.084,5 Millionen US-Dollar im ersten Quartal 2024 entspricht. Das Unternehmen verzeichnete einen Nettoertrag von 137,5 Millionen US-Dollar (0,48 US-Dollar pro Aktie), im Vergleich zu einem Nettoverlust von 869,5 Millionen US-Dollar im gleichen Zeitraum des Vorjahres. Die Lithiumverkaufsvolumen stiegen im Jahresvergleich um etwa 27 %, angetrieben durch die starke Nachfrage im Elektrofahrzeugmarkt, insbesondere in China, sowie durch Energiespeichersysteme. Das Unternehmen erwartet jedoch niedrigere Lithiumpreise im zweiten Quartal 2025 aufgrund eines Marktüberangebots. Die Inbetriebnahme der Mount Holland Raffinerie verläuft planmäßig, während SQM seine Lithiumproduktionskapazität in Chile auf 240.000 Tonnen Carbonat und 100.000 Tonnen Hydroxid erweitert. Das Jodgeschäft zeigte eine starke Leistung mit rekordhohen Preisen und einem stabilen Marktwachstum von 1-2 % jährlich.
Positive
  • Lithium sales volumes increased 27% year-over-year
  • Record-high iodine sales prices with steady market growth
  • Net profit of US$137.5M vs loss of US$(869.5)M in previous year
  • Mount Holland refinery plant on track for first production
  • Expansion of lithium production capacity progressing in Chile
Negative
  • Total revenues decreased 4.4% year-over-year to US$1,036.6M
  • Gross profit margin declined to 29.4% from 34.0% year-over-year
  • Expected lower lithium prices in Q2 2025 due to market oversupply
  • Limited global iodine supply affecting market dynamics

Insights

SQM reports profitable Q1 2025 with strong lithium volumes despite falling prices and achieves record iodine pricing amid supply constraints.

SQM's Q1 2025 results present a mixed financial picture that requires careful interpretation. Revenue declined 4.4% year-over-year to $1.04 billion, while gross profit margins contracted from 34.0% to 29.4%. However, the company posted net income of $137.5 million ($0.48 per share) compared to a significant loss in the same period last year – though that previous loss included a one-time $1.1 billion tax adjustment related to lithium mining.

The company's performance reveals diverging trends across its key business segments. In lithium, SQM achieved impressive sales volume growth of approximately 27% year-over-year, demonstrating strong market demand particularly from Chinese EV manufacturers and emerging energy storage applications. However, management signals price deterioration in recent weeks due to market oversupply, with expectations for lower realized prices in Q2 2025.

The iodine segment stands out as a bright spot, achieving record-high sales prices amid steady market growth of 1-2% annually and constrained global supply. This suggests continued pricing power in this division, though sales volumes are expected to remain stable rather than grow significantly.

On the operational front, SQM is progressing on several strategic initiatives: the Mount Holland refinery is nearing completion with first production expected within months, while Chilean operations continue expanding toward 240,000 metric tons of lithium carbonate and 100,000 metric tons of lithium hydroxide capacity. The seawater pipeline project represents a crucial infrastructure investment to support future production growth.

These results highlight SQM's ongoing transition through challenging lithium market conditions while leveraging strength in iodine. The substantial improvement in bottom-line performance (excluding one-time items) demonstrates resilience, but investors should note the explicit warnings about lithium price pressure in the immediate future.

Highlights
  • SQM reported total revenues for the three months ended March 31, 2025 of US$1,036.6 million compared to total revenues of US$1,084.5 million for the same period last year.
  • Net income for the three months ended March 31, 2025 of US$137.5 million or US$0.48 per share, compared to net loss(1) of US$(869.5) million or US$(3.04) per share for the same period last year.
  • Record-high iodine sales price
  • Record first-quarter lithium sales volumes reflect strong market demand
SQM will hold a conference call to discuss these results on Wednesday, May 28, 2025 at 12:00pm EDT (12:00pm Chile time).
Participant Call link: https://register-conf.media-server.com/register/BI6159b9c8909e448cb6684738c5d43086
Webcast: https://edge.media-server.com/mmc/p/kosehsfr


SANTIAGO, Chile, May 28, 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 three months ended March 31, 2025, of US$137.5 million or US$0.48 per share, compared to a loss1 of US$(869.5) million or US$(3.04) per share reported for the same period last year.

Gross profit(2) reached US$304.7 million (29.4% of revenues) for the three months ended March 31, 2025, lower than US$368.5 million (34.0% of revenues) recorded for the three months ended March 31, 2024. Revenues totaled US$1,036.6 million for the three months ended March 31, 2025, representing a decrease of 4.4% compared to US$1,084.5 million reported for the three months ended March 31, 2024.

SQM’s Chief Executive Officer, Ricardo Ramos, stated, “We closed the first quarter with strong growth—approximately 27% year-on-year—in lithium sales volumes. This is a reflection of the strong demand growth seen during the past few months, driven by the electric vehicle market, particularly in China, along with new demand coming from energy storage systems. Despite the fact that average prices reported during the first quarter 2025 were similar to those reported at the end of last year, we have seen lower prices during the past few weeks, as consequence of a continuously oversupplied market. Therefore, we expect lower realized prices in the second quarter of 2025.”

He continued: “On the production side, things are evolving as expected. The commissioning of the Mount Holland refinery plant is on track to deliver first product in the upcoming months, meanwhile we are actively selling spodumene concentrate in the market. In Chile we continue working to reach a total capacity of 240,000 metric tons of lithium carbonate and 100,000 metric tons of lithium hydroxide. All of this while we continue to process lithium sulfate in China.”

Mr. Ramos added: “We are very pleased with the performance of our iodine business. We continue to see steady market growth, driven by strong demand that is putting upward pressure on prices. However, global supply remains limited, and we expect demand to grow by 1% to 2% annually. In this context, we anticipate maintaining stable sales volumes while prices remain at elevated levels. Construction of our seawater pipeline is moving full steam ahead and will be key to unlocking additional production capacity in the coming years, in the meantime, we are focused on improving operational efficiencies to better respond to market needs2.”

___________________________
1 Includes the net effect of accounting adjustments for payments related to the specific mining tax for lithium exploitation as of March 31, 2024, for a total amount of US$1,097.6 million. See more in section Income Tax Expenses, below in the document.
2 To see full press release please visit our website: https://ir.sqm.com/



Media contacts:
SQM Lithium Chile Division: Ignacia Lopez / ignacia.lopez@sqm.com
SQM International Lithium Division: Kathryn Ogilvie / kathryn.ogilvie@sqm.com
SQM Iodine & Plant Nutrition Division: Carolina Guzman / carolina.guzman@sqm.com

FAQ

What were SQM's Q1 2025 earnings per share?

SQM reported earnings of US$0.48 per share for Q1 2025, compared to a loss of US$(3.04) per share in Q1 2024.

How much did SQM's lithium sales volumes grow in Q1 2025?

SQM's lithium sales volumes grew approximately 27% year-over-year in Q1 2025, driven by strong EV market demand in China and energy storage systems.

What is SQM's lithium production capacity target in Chile?

SQM is working to reach a total capacity of 240,000 metric tons of lithium carbonate and 100,000 metric tons of lithium hydroxide in Chile.

What is the expected growth rate for SQM's iodine market?

SQM expects the iodine market to grow by 1% to 2% annually, with prices remaining at elevated levels due to strong demand and limited global supply.

How did SQM's revenue change in Q1 2025 compared to Q1 2024?

SQM's total revenues decreased by 4.4% to US$1,036.6 million in Q1 2025, compared to US$1,084.5 million in Q1 2024.
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2.73%
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