Samsung SDI (006400) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was KRW 3.2 trillion (₩3,177B), down 15% QoQ and 34% YoY due to weak market demand.

• Operating profit posted a loss of KRW 434 billion, with net profit at a loss of KRW 216 billion.

• Battery business revenue and profitability declined due to EV and power tool destocking, seasonal ESS weakness, and low fab utilization.

• Electronic Materials saw slight revenue and profitability improvement, driven by OLED demand.

Financial highlights

• Q1 assets rose to KRW 40.7 trillion (₩40,710B), up KRW 113 billion from end-2024 and ₩5,259B YoY, mainly due to EV battery CapEx.

• Liabilities increased to KRW 19.2 trillion, with total debt rising to ₩11,616B, up ₩5,329B YoY.

• CapEx for Q1 was KRW 774 billion.

• Gross margin dropped to 6.4% in Q1 2025 from 17.5% a year ago.

• EBITDA fell 90% YoY to ₩73B in Q1 2025.

Outlook and guidance

• Q2 is expected to show improvement from Q1, with gradual demand recovery but ongoing volatility from tariffs and political uncertainties.

• EV battery sales in Europe are expected to rise due to supportive policies, while North America faces tariff-related uncertainty.

• ESS and BBU markets projected to grow, especially with AI data center expansion and renewable energy trends.

• Small battery segment expects loss margin reduction in Q2, with new applications like BBU and robots driving growth.

• Focus on new customer acquisition, high-value product sales, and entry into HEV and solid-state battery markets.