Feb 27 - SQM, the Chilean miner that is among the world's largest lithium producers, reported a significant increase in fourth-quarter profit as average lithium prices firmed and sales volumes rose.
Net income for the quarter totaled $183.8 million, up 53% from the same period a year earlier. Quarterly revenue climbed 23.3% to $1.32 billion from $1.07 billion the prior year, while gross profit expanded 52.7% to $448.5 million.
Operational drivers and management commentary
"Our fourth quarter 2025 results reflected record-high sales volumes across both of our lithium businesses, Nova Andino Litio (formerly SQM Salar) and our International Lithium Division," said SQM CEO Ricardo Ramos. "In November 2025, we began to see early signs of an improved supply-demand balance, driven by stronger-than-expected demand from energy storage systems (ESS)."
The company said it is increasing refining of lithium carbonate from lithium sulfate in China through tolling agreements, a move intended to raise processed output available to customers.
Full-year results
For the full year, SQM reported net income of $588.1 million, reversing a loss of $404.4 million posted in 2024. Annual revenue rose 1.0% to $4.58 billion.
Beyond lithium, the company also produces fertilizers and industrial chemicals.
Market context and outlook
The company and industry peers have faced margin pressure after lithium prices cooled from the record highs seen in 2022, as supply growth outpaced demand. The article notes that this dynamic constrained profitability for SQM and competing producers such as U.S.-based Albemarle. Nevertheless, demand for lithium is expected to increase in the coming years in step with growth in electric vehicles and battery storage.
Investor tools mentioned
The piece also references ProPicks AI, describing it as an AI-driven tool that evaluates SQM alongside thousands of other companies each month using more than 100 financial metrics to identify stock ideas based on fundamentals, momentum, and valuation. The description highlights past winners identified by the tool but does not detail SQM's current placement within any ProPicks strategies.
Summary
SQM's fourth-quarter and full-year results show a rebound to profitability driven by higher lithium prices, record sales volumes in its lithium divisions, and increased refining activity in China via tolling agreements. Despite lingering margin pressure from a period of supply growth exceeding demand, management reports early signs of an improving supply-demand balance coming from stronger energy storage systems demand.