Samsung SDI (006400) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached KRW 3,576 billion, up 12.6% year-over-year but down 7.3% sequentially from Q4 2025.

• Net income turned positive at KRW 56 billion, reversing losses from both Q1 2025 and Q4 2025.

• Operating income posted a loss of KRW 156 billion, narrowing from both the previous quarter and the same period last year.

• EBITDA surged to KRW 428 billion, a 56.6% increase quarter-over-quarter and 542.7% year-over-year.

• Assets grew to KRW 44.5 trillion, liabilities to KRW 19.6 trillion, and equity to KRW 24.9 trillion.

Financial highlights

• Battery business revenue increased 13% year-over-year to KRW 3.4 trillion, despite a 7% sequential decline due to seasonality.

• Electronic materials revenue and operating income both rose 13% and 15% year-over-year, respectively, driven by semiconductor and display material sales.

• Gross margin improved to 16.4% from 6.4% in Q1 2025 and 21.0% in Q4 2025.

• Cash and cash equivalents stood at KRW 1,738 billion, down KRW 66 billion from Q4 2025 but up KRW 385 billion year-over-year.

• Operating loss narrowed to KRW -156 billion from KRW -299 billion in Q4 2025 and KRW -434 billion in Q1 2025.

Outlook and guidance

• Losses are expected to further narrow in Q2, with a return to quarterly profitability targeted for the second half of 2026.

• Expanded subsidies in key countries and rising TCO of ICE vehicles anticipated to boost EV demand, especially in Europe.

• ESS demand, particularly for AI data centers, is projected to grow rapidly in the U.S., with local production and supply chain adjustments underway.

• Growth in high-value semiconductor and OLED display materials projected.

• Gradual performance improvement expected amid continued front-end market growth.