SQM reports Q1 earnings miss, revenue beats estimates

Published 28/05/2025, 12:36
SQM reports Q1 earnings miss, revenue beats estimates

SANTIAGO - On Wednesday, Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) reported first quarter 2025 earnings that fell short of analyst expectations, while revenue slightly exceeded estimates.

The Chilean lithium and specialty chemicals producer saw its stock dip 0.03% in pre-market trading following the release.

SQM posted adjusted earnings per share of $0.48 for the quarter, missing the analyst consensus of $0.61 by $0.13. Revenue came in at $1.04 billion, edging past estimates of $1.02 billion and down 4.4% YoY from $1.08 billion.

The company reported record first-quarter lithium sales volumes, up approximately 27% YoY, driven by strong demand from electric vehicles and energy storage systems. However, CEO Ricardo Ramos noted that lithium prices have declined in recent weeks due to oversupply, stating, "We expect lower realized prices in the second quarter of 2025."

Iodine business performance was strong, with steady market growth and elevated prices due to limited global supply. SQM anticipates maintaining stable iodine sales volumes with prices remaining high.

"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," said Ramos.

Net income for the quarter was $137.5 million, compared to a net loss of $869.5 million in the same period last year, which included significant tax-related accounting adjustments.

SQM continues to expand production capacity, with its Mount Holland refinery plant on track to deliver first product in the coming months. The company is also progressing towards total capacity of 240,000 metric tons of lithium carbonate and 100,000 metric tons of lithium hydroxide in Chile.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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