CHEMICAL & MINING CO OF CHILE INC (SQM): Financial results for H1 2026
CHEMICAL & MINING CO OF CHILE INC (SQM) furnished an SEC Form 6-K — earnings release. For Immediate Release SQM REPORTS EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2026 Highlights • SQM reported total revenues for the six months ended June 30, 2026 of US$4,228.5 million compared to total revenues of US$2,079.3 million for the same period last year. • Net income for
How this was made
The 30-second read
Why it matters
The earnings beat and record lithium volumes suggest strong demand from EV manufacturers, potentially boosting related equities.
Market read
SQM's earnings surprise is a catalyst for the lithium sector and may influence broader commodity and EV supply chain stocks.
What to watch
Capital expenditure of $3B over 2026‑2028 may pressure cash flow; exposure to Chilean political risk.
SQM reported H1 2026 net income of US$1,024.7 million, up 353.5%, as revenue more than doubled, led by lithium and derivatives.
H1 revenue increased 103.4%, gross profit increased 267.2%, net income increased 353.5%, and adjusted EBITDA margin expanded to 51.0%. Lithium revenue increased 212.7%, while Specialty Plant Nutrition and Iodine also grew.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, six months ended June 30, 2026other | US$4,228.5 million | – | 103.4% |
| Gross profit, six months ended June 30, 2026other | US$2,038.6 million | – | 267.2% |
| Gross profit margin, six months ended June 30, 2026other | 48.2% of revenues | – | – |
| Cost of sales, six months ended June 30, 2026other | US$2,189.9 million | – | 44% |
| Administrative expenses, six months ended June 30, 2026other | US$101.3 million (2.4% of revenues) | – | – |
| Net financial expenses, six months ended June 30, 2026other | US$48.9 million | – | – |
| Income before taxes, six months ended June 30, 2026other | US$1,860.4 million | – | – |
| Income tax expense, six months ended June 30, 2026other | US$738.3 million | – | – |
| Net income before minority interest, six months ended June 30, 2026other | US$1,122.1 million | – | – |
| Minority interest, six months ended June 30, 2026other | US$97.4 million | – | – |
| Net income, six months ended June 30, 2026other | US$1,024.7 million | – | 353.5% |
| Net income per share, six months ended June 30, 2026other | US$3.59 per share | – | – |
| EBITDA, six months ended June 30, 2026other | US$2,187.8 million | – | – |
| Adjusted EBITDA, six months ended June 30, 2026non-GAAP | US$2,154.8 million | – | – |
| Adjusted EBITDA margin, six months ended June 30, 2026non-GAAP | 51.0% | – | – |
| Total revenues, second quarter 2026other | US$2,468.4 million | – | 136.7% |
| Gross profit, second quarter 2026other | US$1,260.0 million | – | 398.1% |
| Net income, second quarter 2026other | US$660.0 million | – | 646.4% |
| Net income per share, second quarter 2026other | US$2.31 per share | – | – |
| EBITDA, second quarter 2026other | US$1,340.1 million | – | – |
| Adjusted EBITDA, second quarter 2026non-GAAP | US$1,317.8 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Lithium and Derivatives, six months ended June 30, 2026Sales volumes were 153.1 Th. MT (LCE), up 42%. Novandino revenue was US$2,764.7 million and International Lithium Division revenue was US$200.1 million. | US$2,964.8 million | – | 212.7% |
| Specialty Plant Nutrition, six months ended June 30, 2026Total volumes were 535.3 Th. MT, up 11%. The company cited increases in sales prices and volumes, supported by supply constraints in certain markets. | US$562.0 million | – | 18.9% |
| Iodine and Derivatives, six months ended June 30, 2026Sales volumes were 7.9 Th. MT, up 8%. The company reported robust demand and strong pricing. | US$578.1 million | – | 9.9% |
| Potassium, six months ended June 30, 2026Sales volumes were 148.9 Th. MT, down 20%. The company expects to continue reducing potassium chloride sales volumes as lithium production increases at the Salar de Atacama. | US$75.6 million | – | (8.8%) |
| Industrial Chemicals, six months ended June 30, 2026Industrial nitrates volumes were 26.4 Th. MT, up 1%. SQM expects modest and steady year-on-year growth and relatively stable market prices. | US$38.4 million | – | 1% |
| Other Commodity Fertilizers & Other Income, six months ended June 30, 2026Revenues decreased compared to US$11.4 million for the six months ended June 30, 2025. | US$9.6 million | – | – |
| Lithium and Derivatives, second quarter 2026Total sales volumes were 84.1 Th. MT (LCE), up 59%. Novandino sales volumes were 75.8 Th. MT (LCE), while International Lithium Division total sales volumes were approximately 8.3 th. MT in LCE. | US$1,779.2 million | – | 299.7% |
| Specialty Plant Nutrition, second quarter 2026Total volumes were 302.8 Th. MT, up 14%. Average realized sales price reached surpassing US$1,060 per metric ton. | US$322.9 million | – | 24% |
| Iodine and Derivatives, second quarter 2026Sales volumes were 4.1 Th. MT, up 9%. Average realized sales price reached a record high of approximately US$73.4 per kilogram. | US$302.2 million | – | 11.4% |
| Potassium, second quarter 2026Sales volumes were 79.8 Th. MT, down 6%. Higher revenues from potassium sulfate trading activities offset lower volumes. | US$41.2 million | – | 1.9% |
| Industrial Chemicals, second quarter 2026Industrial nitrates volumes were 13.4 Th. MT, up 3%. | US$19.5 million | – | 1.9% |
2026 outlook
- NoteGlobal lithium demand to be over 2.1 million metric tons in 2026.
- NoteLithium production between 280,000 and 290,000 metric tons of LCE through a combination of lithium chloride processing in Chile and lithium sulfate refining in China.
- NoteLithium production capacity to surpass 300,000 metric tons by the end of 2027.
- NoteLithium prices to remain relatively stable during the third quarter.
- NoteThe lithium hydroxide plant conversion into a dual-purpose facility is expected to be completed by mid-2027.
- NoteMt. Holland expansion investment of approximately US$450–500 million attributable to SQM between 2026 and 2029.
- NoteMt. Holland expansion to double spodumene concentrate production capacity to approximately 350 thousand metric tons (SC 6%) per year attributable to SQM, with first production expected during 2030.
- NoteSpecialty Plant Nutrition full-year sales volumes to increase by approximately 10% compared to 2025.
- NoteThe Specialty Plant Nutrition market conditions are expected to gradually normalize toward year-end.
- NoteThe potassium nitrate market is expected to remain broadly stable in 2026.
- NoteIodine sales volumes could moderate toward year-end as additional supply from third-party producers enters the market.
- NoteIodine production could be around 15,500 metric tons this year.
- NoteCapital expenditures to be approximately US$3 billion over the three-year period from 2026 to 2028, including approximately US$300 million per year of sustaining capital expenditures across all divisions.
- NoteApproximately 60% of 2026 to 2028 capital expenditures for Novandino, 20% for the Iodine and Plant Nutrition Division, and 20% for the International Lithium Division.
- NoteSalar Futuro estimated capital investment of approximately US$3 billion, to be deployed over approximately seven years following receipt of required approvals.
What drove it
- Lithium and derivatives accounted for 78% of consolidated gross profit for the six months ended June 30, 2026.
- Specialty Plant Nutrition accounted for 6% of consolidated gross profit, iodine and derivatives for 16%, potassium for 0.5%, and industrial chemicals for 0.8%.
- Lithium demand was supported by the fast-growing energy-storage systems market, which helped offset slower-than-expected Battery Electric Vehicle market growth.
- Novandino average realized lithium sales price during the second quarter was approximately US$21.8 per kilogram, increasing almost 23% compared to the first quarter of 2026 and close to 160% year-on-year.
- International Lithium Division average realized spodumene sales price during the second quarter was approximately US$2,048 per metric ton, increasing more than 40% compared to the first quarter of 2026 and more than 160% year-on-year.
- Iodine demand was driven primarily by X-ray contrast media, complemented by demand from polarizing films used in LCD displays and steady consumption from pharmaceutical, biocide and other industrial applications.
- Specialty Plant Nutrition volume and pricing gains were primarily driven by lower product availability from China and other minor disruptions arising from the conflict in the Middle East.
Concerns
- SQM expects Specialty Plant Nutrition supply constraints in certain markets to gradually normalize toward year-end.
- SQM anticipates iodine sales volumes could moderate toward year-end as additional supply from third-party producers enters the market.
- SQM expects to continue reducing potassium chloride sales volumes as lithium production at the Salar de Atacama increases.
- The Salar Futuro project is subject to required approvals.
- The filing states that 2025 figures related to cost of goods sold, other income and expenses, and share of profit of associates and joint ventures were updated due to different accounting methods applied for this period.
What to watch
- Lithium prices during the third quarter, which SQM expects to remain relatively stable based on current market conditions.
- Progress on converting the lithium hydroxide plant into a dual-purpose carbonate or hydroxide facility, expected to be completed by mid-2027.
- Required approvals and capital deployment for the Salar Futuro project.
- Mt. Holland mine and concentrator expansion execution, with first production from the expansion expected during 2030.
- Iodine demand, third-party supply additions, and commissioning of the seawater pipeline.
- Whether Specialty Plant Nutrition supply conditions normalize toward year-end.
Balance sheet and cash flow
- Cash and cash equivalents as of Jun. 31, 2026: US$3,376.8 million; as of Dec. 31, 2025: US$1,750.3 million.
- Other current financial assets as of Jun. 31, 2026: US$975.9 million; as of Dec. 31, 2025: US$976.6 million.
- Short-term debt as of Jun. 31, 2026: US$425.7 million; as of Dec. 31, 2025: US$470.8 million.
- Long-term debt as of Jun. 31, 2026: US$4,790.7 million; as of Dec. 31, 2025: US$4,220.6 million.
- Total assets as of Jun. 31, 2026: US$16,648.1 million; as of Dec. 31, 2025: US$14,505.0 million.
- Total shareholders’ equity as of Jun. 31, 2026: US$8,676.4 million; as of Dec. 31, 2025: US$8,053.9 million.
- Liquidity as of Jun. 31, 2026: 2.61; as of Dec. 31, 2025: 3.27.
- SQM and its subsidiaries accrued over US$1.6 billion in payments to the Chilean State during the first half of 2026.
Analysis
SQM delivered a substantial H1 2026 earnings improvement under IFRS. Revenue reached US$4,228.5 million, up 103.4% from US$2,079.3 million, while gross profit reached US$2,038.6 million, up 267.2%. The gross-profit margin was 48.2% of revenues versus 26.7% of revenues a year earlier. Net income increased 353.5% to US$1,024.7 million, or US$3.59 per share. Adjusted EBITDA increased to US$2,154.8 million and its margin expanded to 51.0% from 32.0%.
Lithium was the principal earnings driver. H1 lithium and derivatives revenue increased 212.7% to US$2,964.8 million and represented 78% of consolidated gross profit. Second-quarter lithium revenue was US$1,779.2 million, up 299.7%, on sales volumes of 84.1 Th. MT (LCE), up 59%. SQM cited BESS demand as support for Chilean volumes, offsetting slower-than-expected BEV growth. The company reported a Novandino average realized lithium price of approximately US$21.8 per kilogram in the second quarter and expects lithium prices to remain relatively stable during the third quarter.
The other principal businesses also contributed growth. Specialty Plant Nutrition H1 revenue increased 18.9% to US$562.0 million, with volumes up 11%, as supply constraints supported both volume and price. Iodine H1 revenue increased 9.9% to US$578.1 million, with volumes up 8%, and the second-quarter realized price reached a record high of approximately US$73.4 per kilogram. Potassium H1 revenue decreased 8.8% to US$75.6 million as volumes declined 20%, reflecting SQM's stated strategy to reduce potassium chloride sales as lithium output rises.
The balance sheet showed US$3,376.8 million of cash and cash equivalents as of Jun. 31, 2026, compared with US$1,750.3 million as of Dec. 31, 2025. Short-term debt was US$425.7 million and long-term debt was US$4,790.7 million. Liquidity was 2.61 versus 3.27. SQM disclosed no dividends, share repurchases, operating cash flow, free cash flow, or cash capital-return figures in the release.
SQM outlined a sizeable investment program. It expects capital expenditures of approximately US$3 billion during 2026 to 2028, including approximately US$300 million annually of sustaining capital expenditures. The company also described Salar Futuro as an approximately US$3 billion project to be deployed over approximately seven years following required approvals. Operationally, investors should monitor lithium pricing and production delivery, the expected normalization of Specialty Plant Nutrition market conditions, potential moderation in iodine volumes as third-party supply enters, and execution of the Salar Futuro and Mt. Holland expansion projects.
Management, verbatim
In lithium, we achieved record quarterly sales volumes of over 84 thousand metric tons of Lithium Carbonate Equivalent (LCE) from our lithium operations in Chile through Nova Andino Litio ii and in Australia through Covalent Lithium iii . As anticipated in our previous earnings report, prices increased during the second quarter, supported by stronger-than-expected market demand.
Ricardo Ramos, Chief Executive Officer
Moving to iodine, we once again delivered solid results, supported by strong pricing and robust market demand.
Ricardo Ramos, Chief Executive Officer
Finally, our Specialty Plant Nutrition business delivered another strong quarter, building on the positive momentum established in the previous quarter. Our position as a reliable and well-prepared supplier allowed us to capture additional commercial opportunities amid supply constraints in certain markets.
Ricardo Ramos, Chief Executive Officer
Not in the filing
stated, not guessed- Operating income or operating margin were not reported.
- GAAP or IFRS operating cash flow was not reported.
- Free cash flow was not reported.
- Cash capital expenditures for H1 2026 or the second quarter of 2026 were not reported.
- Dividends declared or paid were not reported.
- Share repurchases were not reported.
- A cash tax-payment amount was not reported.
- Prior-quarter comparisons for reported revenue, earnings, gross profit, and segment revenue metrics were not reported.
- No previous outlook section was provided, so comparison with prior guidance is unavailable.
- Revenue guidance, gross-margin guidance, operating-expense guidance, and tax-rate guidance were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SQM is a leading lithium and specialty chemicals producer listed on NYSE, reporting its first half 2026 results.
Ticker impact
SQM reported H1 2026 revenue of $4.23B and net income of $1.02B, a 353% YoY increase, marking a major earnings surprise.
Expect price to rise 4‑6% in the next trading session on the earnings beat.
Revenue more than doubled YoY, net income surged over 350%, and lithium volumes hit record highs, indicating robust demand and operational execution.
Market effects
Lithium and specialty chemicals sectors may see broader price lifts as SQM's results highlight strong demand.
Positive for Chilean mining stocks and related Latin American resource equities.
Reinforces bullish outlook for global EV battery supply chain.
Counterpoint
High valuation multiples could limit upside; any slowdown in lithium demand or regulatory changes could reverse gains.
Key entities
- CompanySQM
Lithium and specialty chemicals producer.
- Joint Venture PartnerCodelco
Partner in Nova Andino Litio joint venture.
