Sociedad Química y Minera de Chile (SQM) reported third‑quarter 2025 net profit of $178.4 million, or $0.62 per share, a rise from $131.4 million in Q3 2024. The company’s earnings per share fell short of the consensus estimate of $0.68, missing analysts’ expectations by $0.06, or roughly 9%. Revenue for the quarter reached $1.17 billion, slightly below the $1.16 billion consensus estimate, a miss of $0.01 billion or 0.9%.
The EPS miss can be traced to a combination of higher input costs and a modest decline in lithium pricing momentum relative to the prior year. While realized average lithium prices increased for the first time in two years, the rebound was not as strong as analysts had anticipated, limiting the upside on the revenue side. Additionally, the company’s cost‑efficient brine‑based extraction model faced higher operating expenses in the quarter, partially offsetting the price lift. The revenue miss was driven by a 1.5% decline in specialty plant nutrition sales, which counterbalanced the 21.4% growth in lithium and derivatives revenue.
SQM’s segment performance highlights a record‑high lithium sales volume of 1.1 million tonnes, up 18% year‑over‑year, driven by robust demand from electric‑vehicle and energy‑storage customers. Lithium and derivatives revenue rose 21.4% to $603.7 million, reflecting the higher average price and volume. Specialty plant nutrition revenue grew modestly, while iodine revenue maintained a high gross margin of 57%. Potassium revenue fell sharply as the company deliberately cut potash output by about 50% to prioritize lithium production, a strategic shift that reduced the contribution of the legacy fertilizer segment to the overall results.
Management reiterated confidence in the lithium market’s upward trajectory. CEO Ricardo Ramos stated that the company expects the price trend to continue through the fourth quarter, supported by strong demand from EVs and storage systems. He also highlighted the company’s record lithium sales volumes and low operating costs at its Atacama operations. The company’s strategic partnership with Codelco received Chinese antitrust approval, clearing a key milestone for expanding lithium production capacity. SQM also reaffirmed its guidance for 2025, projecting a 20% growth in global lithium demand and maintaining a focus on cost discipline and operational efficiency.
Investors reacted positively to the earnings release, citing the record lithium volumes, the rebound in lithium prices, and the strategic approval of the Atacama partnership as key drivers. The market’s favorable response reflects confidence in SQM’s ability to capitalize on the recovering lithium market and its strategic focus on high‑margin lithium production, despite the modest misses on EPS and revenue estimates.
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