SQM net income jumps 353.5% on record lithium sales volumes

SQM reported H1 2026 net income of US$1,024.7 million, up 353.5% from a year earlier, on record lithium sales volumes and higher iodine prices.

"In lithium, we achieved record quarterly sales volumes of over 84 thousand metric tons of Lithium Carbonate Equivalent," Chief Executive Officer Ricardo Ramos said. "Prices increased during the second quarter, supported by stronger-than-expected market demand."

Second-quarter net income reached US$660.0 million, or US$2.31 per share, beating the US$2.04 consensus estimate by 13.24%. Quarterly revenue of US$2,468.4 million topped the US$2.255 billion estimate by 9.43% and rose 136.7% from US$1,042.7 million a year earlier. Gross profit for the quarter was US$1,260.0 million, up 398.1%.

The company now expects global lithium demand to exceed 2.1 million metric tons in 2026, Ramos said, reinforcing confidence in long-term market fundamentals. SQM and its subsidiaries accrued more than US$1.6 billion in payments to the Chilean State during the first half, including corporate and mining taxes, Corfo lease payments and a dividend accrued to Codelco.

H1 revenue totaled US$4,228.5 million, up 103.4% from US$2,079.3 million. Gross profit reached US$2,038.6 million, or 48.2% of revenue, compared with 26.7% a year earlier. The margin expansion reflects operating leverage as cost structures grew slower than top-line sales.

The company also posted record iodine sales prices and quarterly revenue, while its Specialty Plant Nutrition division delivered strong sales volumes and solid prices. Lithium operations span Chile through Nova Andino Litio, the joint venture with Codelco, and Australia through Covalent Lithium, a partnership with Wesfarmers.

Analysts have issued mixed price targets. JP Morgan's Lucas Ferreira set a US$100 target in June, while Scotiabank's Ben Isaacson assigned US$105 in May. Goldman Sachs' Marcio Farid maintained a Neutral rating and raised its target to US$82 from US$64. B of A Securities' Isabella Simonato set a US$53 target in March.

The results mark a sharp recovery from 2025, when SQM returned to profitability after a lithium price slump. The company will hold a conference call to discuss results on August 19 at 12:00pm EDT. Investors will watch for updated volume guidance and the pace of Chilean State payments, which could weigh on free cash flow.

This article is for informational purposes only and does not constitute investment advice.