Samsung SDI (006400) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached KRW 3.8 trillion, up 5.4% sequentially and 19% year-over-year, with operating income returning to profit after seven quarters, aided by U.S. tariff refunds.

• Net profit for Q2 was KRW 472 billion, a 740.5% increase YoY, with strong contributions from both battery and electronic materials businesses.

• H1 2026 revenue was KRW 7.3 trillion, up 16% YoY, with operating profit of KRW 48 billion, a turnaround from a KRW 1,722.4 billion loss in the prior year.

• Growth was driven by high-power battery sales for ESS, UPS, BBU, power tools, and EVs, as well as robust semiconductor materials sales.

• Additional long-term ESS and EV orders were secured in the U.S., Europe, and Korea, including a new Mercedes-Benz project.

Financial highlights

• Q2 operating income, including tariff refunds, was KRW 204 billion; excluding tariffs, a small profit was recorded.

• Q2 net profit surged to KRW 472 billion; EBITDA climbed to KRW 803 billion, and gross margin improved to 24.9%.

• Pre-tax income was KRW 479 billion; total assets rose to KRW 47.6 trillion, liabilities to KRW 20.8 trillion, and equity to KRW 26.8 trillion.

• Q2 CapEx was KRW 503 billion; investments in non-current assets increased by KRW 2,410 billion QoQ.

• Gross profit for H1 2026 was KRW 1,522.1 billion, with a gross margin of 20.7%.

Outlook and guidance

• H2 2026 is expected to continue the improving trend, with significant sales expansion in ESS and UPS, especially in the U.S.

• Profitability in ESS to remain solid, supported by new LFP line ramp-up and AMPC benefits.

• Small battery business to see higher utilization and profitability from high-value products; EV battery losses to narrow as new projects ramp up.

• Electronic materials sales and profitability to remain stable, led by foldable display materials and new semiconductor products.

• No cash dividends planned for 2025–2027 due to ongoing investment and negative free cash flow; dividend policy to be reviewed in 2028.