Sociedad Química y Minera de Chile (SQM) Q1 2026 earnings summary

Executive summary

• Achieved strong operational and financial results in Q1 2026, with significant year-over-year growth in revenue, gross profit, net income, and EBITDA, supported by all key business lines performing well.

• Record sales volumes and robust pricing in lithium, with the Novandino Lithium partnership (CODELCO) completing its first full quarter and contributing over $530 million to the Chilean state.

• Continued leadership and market share gains in iodine and specialty plant nutrition (SPN), with ongoing capacity expansions and stable or growing market share.

• Advancing environmental permitting for the Salar Futuro lithium project and investing in future growth and production expansion.

• Operating at full capacity across international lithium operations, including Mount Holland and Kwinana Refinery ramp-up.

Financial highlights

• Q1 2026 revenue reached $1,760 million, up 69.8% year-over-year, with gross profit of $779 million and net income of $365 million, reflecting strong margin improvements.

• Lithium sales volumes increased 25% year-over-year to approximately 69,000 MT, with average realized lithium price at $18/kg in Q1 2026.

• Adjusted EBITDA was $837 million (47.6% margin), up 133% year-over-year.

• Higher cash and cash equivalents at quarter-end, driven by increased prices in lithium, iodine, and nitrates.

• Effective tax rate and income tax expense rose due to increased profitability and mining royalty, with mining royalty at 11%-12%.

Outlook and guidance

• Raised lithium sales volume guidance for 2026 to 15% growth over 2025, with global lithium demand projected to exceed 1.9 million MT.

• SPN sales volume guidance increased to at least 10% growth for 2026.

• Iodine sales volumes expected to be in line or slightly above last year, with continued strong pricing and 3% market growth.

• Potassium sales volumes expected to decline by 50% in 2026.

• Anticipate higher lithium sales prices in Q2 2026 compared to Q1.