Sociedad Química y Minera de Chile (SQM) reported a net income of US$588.1 million for the twelve months ended December 31, 2025, a dramatic turnaround from a US$404.4 million loss in 2024. Revenue rose to US$4.576 billion, a 1.0% increase year‑over‑year, while gross profit reached US$1.353 billion, representing 29.6% of revenue.
The earnings release highlighted record lithium sales volumes across both the Nova Andino Litio (formerly SQM Salar) and International Lithium divisions, driven by robust demand from energy‑storage systems and electric‑vehicle markets. Lithium volumes surged 23% year‑over‑year, and the first shipment of lithium hydroxide from SQM’s Kwinana refinery in Australia was certified under the International Lithium Association’s Life‑Cycle Assessment framework, demonstrating a 37% lower emissions footprint compared with traditional hard‑rock production refined in China.
SQM’s iodine and plant‑nutrition segment also performed strongly, with iodine contributing 42% of gross profit. The company’s iodine business continues to benefit from tight supply and record prices, providing a high‑margin buffer that supports cash flow generation.
Management emphasized full‑capacity operation at Nova Andino Litio and the expansion of its Atacama brine operations, while maintaining a disciplined capital‑expenditure plan of US$2.7 billion through 2027. The company’s guidance reflects confidence in sustaining lithium production growth and leveraging its iodine advantage to support profitability.
Analysts had expected Q4 2025 earnings per share of US$0.75; the actual EPS of US$0.64 represented a miss of US$0.11. Despite the miss, investors reacted positively, citing improving lithium pricing dynamics, stronger‑than‑expected demand, and operational milestones such as the Kwinana refinery shipment.
SQM’s turnaround underscores its ability to generate cash flow from high‑margin iodine while scaling lithium production, positioning the company for upside as lithium prices recover and demand for electric‑vehicle batteries and energy storage continues to rise.
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