Earnings call transcript: SQM beats Q2 2026 estimates as lithium sales hit record

SQM reported a net income of $1.02B (US$3.59 per share) for 1H 2026, up 353.5% YoY. Revenues reached $4.23B, a 103.4% increase. Lithium sales volumes hit a record 84k metric tons of LCE. CEO Ricardo Ramos highlighted strong demand and long-term growth prospects in lithium, iodine, and specialty plant nutrition.

SQM reported a 646.4% YoY increase in Q2 2026 profit to US$660M, driven by record lithium sales (84,100 tonnes) and price rebound. Revenue rose 136.7% to US$2.47B, with EPS at US$2.31. Analysts expected US$2.03 EPS on US$2.24B revenue. Lithium prices doubled from mid-2025 lows, reaching US$19,850/tonne. SQM's joint venture with Codelco, Nova Andino Litio, controls Atacama lithium operations.

Lithium equities fell after Chile’s government outlined a National Lithium Strategy requiring future Atacama salar developments to be structured as public-private partnerships with state control. SQM’s NY shares dropped 2.00% to $67.06, while the LIT ETF rose 1.31% to $69.32. Albemarle edged down 0.09% to $117.67.

SQM and Wesfarmers said Covalent Lithium has approved a final investment decision to expand the Mt Holland lithium project. The plan adds a new ore sorting facility and second concentrator, targeting output to rise from about 380,000 to 760,000 tonnes per year of 5.5% Li2O spodumene concentrate. SQM’s capex share is estimated at USD 450-500 million, with production starting in 1H 2030.

SQM and Wesfarmers announced a final investment decision to expand the Mt Holland lithium project via their Covalent Lithium JV. The expansion will add a second concentrator and new ore sorting, doubling spodumene concentrate output to about 760,000 tonnes per year from ~380,000. SQM’s capex share is estimated at US$450 million to US$500 million, with first production expected in 1H 2030.

SQM’s Q1 2026 earnings call said it is evaluating how to use higher lithium-driven windfall free cash flow, with no decision yet on a special dividend for the quarter, while weighing taxes and investments. SPN volumes rose as China suspended potassium nitrate exports, though sustainability is uncertain. SQM expects lithium sales volumes up 15% YoY to over 270,000 tons, and cited Salar Futuro investment of about $30B, with environmental studies due by Q3 2026 and investment starting in 2030.