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

Rhea-AI Summary

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.

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

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.”

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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.