SQM reported record quarterly earnings for the second quarter of 2026 on Wednesday, driven by a sharp rebound in lithium prices and volumes, with net income jumping 646% year-over-year to $660 million.
Revenue for the quarter totaled $2.47 billion, up 137% from a year ago and exceeding analyst expectations by nearly 13%. Earnings per share reached $2.31, surpassing Wall Street estimates of $1.91. The company’s adjusted EBITDA rose to $1.32 billion, yielding a margin of 53%, while gross profit climbed 403% year-over-year to $1.26 billion.
The lithium division accounted for the bulk of the company’s performance, generating $1.33 billion in revenue and $930 million in gross profit. Quarterly sales volumes hit a record 84,000 metric tons of lithium carbonate equivalent, split between operations in Chile and Australia. Novandino’s Chilean operations sold 75,800 metric tons, up from 52,300 metric tons in the same period last year, while Australian spodumene sales reached 55,900 metric tons. Average selling prices surged 152% year-over-year, with Novandino’s pricing more than doubling to $21.8 per kilogram and Australian spodumene concentrate recovering to $2,048 per metric ton from a low of $736 in the third quarter of 2025.
SQM’s iodine segment contributed $31 million to quarterly revenue, with LTM revenue of $1.10 billion and gross profit of $599 million. Sales volumes remained flat at 4,100 metric tons, though average pricing rose to $73.4 per kilogram. The specialty plant nutrition division added $63 million to Q2 revenue, with LTM revenue of $1.07 billion and gross profit of $187 million. Sales volumes increased 14% to 303,000 metric tons, and average pricing climbed 8% to $1,067 per metric ton.
The company’s potassium segment reported LTM revenue of $148 million, with Q2 volumes recovering to 80,000 metric tons and average pricing strengthening to $516 per metric ton. Industrial chemicals generated LTM revenue of $76 million.
SQM reaffirmed its 2026 guidance, projecting global lithium demand to exceed 2.1 million metric tons and iodine production at approximately 15,500 metric tons. Total capital expenditure is expected to reach around $3 billion from 2026 through 2028. The company also outlined long-term targets, including expanding production capacity to surpass 300,000 metric tons by 2027 and targeting 350,000 metric tons per year from the Mt Holland expansion by 2030. SQM’s shares rose 2.89% to $76.62 on the news, trading above its 52-week low of $40.58 but below its peak of $98.
