SQM profit rises 165% as tight lithium market drives volume upgrades

Sociedad Química y Minera de Chile (NYSE:SQM) reported a sharp rebound in its first-quarter financial results for 2026, driven by an acceleration in electric vehicle battery materials demand that led the producer to raise its full-year delivery guidance.

The Santiago-based company—one of the world's largest lithium extractors—announced that its total revenue for the three months ended March 31, 2026, climbed 69.8% year-over-year to US$1,760.1 million.

Net income for the period experienced a steeper trajectory, surging 165.2% to land at US$364.7 million, or US$1.28 per share, up from US$137.5 million, or US$0.48 per share, in the opening quarter of 2025.

The bottom-line acceleration reflected a broader firming of margins across the company's core extractive lines.

SQM's gross profit more than doubled to US$778.6 million, representing a healthy 44.2% gross profit margin.

This expansion signals a material shift from the tight pricing constraints and oversupply dynamics that pressured the global battery metal supply chain over the preceding fiscal cycles.

Operationally, quarterly lithium and derivative sales volumes reached approximately 69,000 metric tons of lithium carbonate equivalent (LCE).

Citing ongoing supply-demand deficits and indications of persistent global market tightness, management adjusted its full-year 2026 lithium sales volume guidance upward.

The company now expects volume growth to reach 15% for the year, up from an earlier forecast of 10%.

Parallel strength was recorded across the company's non-lithium agricultural portfolios.

Driven by optimized pricing power and tighter supply dynamics stemming from major competitors in Asia, SQM's Specialty Plant Nutrition (SPN) segment delivered ahead of internal seasonal targets.

Consequently, management lifted its full-year 2026 SPN sales volume growth expectations to approximately 10%.

The operational surge occurred during the company's first full quarter of running its primary brine operations alongside state-owned miner Codelco through their newly integrated Nova Andino Litio partnership.

Management noted that the joint corporate framework continues to run at full utilization, generating over US$530 million in combined fiscal royalties, local tax distributions, and statutory contributions to the Chilean state during the single three-month window.