[SMM Analysis] SQM Quarterly Profit Hits Two-Year High

SQM's Q3 2025 financial report showed that adjusted EBITDA reached $404 million, the highest level since 2023.

This performance benefited from the recovery in lithium prices and the company's record lithium sales. In Q3, SQM's net profit increased 35.8% YoY to $178 million, while revenue grew 8.9% to $1.173 billion.

SQM's performance this quarter was outstanding, with not only impressive profit metrics but also steady growth in sales revenue. Revenue from the company's lithium and derivatives business reached $603.7 million, up 21.4% YoY.

Sales growth was particularly notable, with lithium sales volume reaching 72,900 mt in Q3, up 43% YoY, setting a new company record. This data indicates that market demand is accelerating its recovery.

Stronger-than-expected lithium market demand is the core factor behind SQM's positive performance. CEO Ricardo Ramos pointed out, "The strong growth in lithium demand comes not only from the EV sector but also from BESS, which now accounts for over 20% of global lithium demand."

However, SQM executives also emphasized vigilance regarding market volatility. CEO Ramos stated, "We remain cautiously optimistic, although the market remains highly volatile."

While achieving strong performance, SQM has not overlooked potential risks. The company highlighted challenges such as supply chain disruptions, intensifying market competition, regulatory changes, and global economic uncertainty.

From capital markets to industrial demand, recovery signals in the lithium industry are clearly visible. Driven by the dual engines of EVs and ESS, the lithium market is gradually emerging from a prolonged "winter" and entering a new growth cycle.