Samsung SDI (006400) Q3 2026 earnings summary

Executive summary

• 3Q26 revenue including AMPC was KRW 4,686bn, up 20.9% QoQ and 52.6% YoY; operating income was KRW 408bn and net income KRW 342bn.

• EBITDA rose to KRW 983bn from KRW 803bn in 2Q26; operating income and EBITDA returned to profit after losses in 3Q25.

• ESS orders exceeded 60 GWh through October; Q4 guidance targets continued company-wide profitability, led by ESS and small batteries.

Financial highlights

• Gross profit was KRW 1,371bn and gross margin 29.3%, versus KRW 1,045bn and 27.0% in 2Q26; operating margin was 8.7%, versus 5.3%.

• Pre-tax income was KRW 262bn; net income was KRW 342bn, including KRW 36bn in equity-method losses and supported partly by an income tax reversal.

• Net income attributable to parent owners was KRW 295bn; non-operating income was KRW -146bn.

Outlook and guidance

• Q4 company-wide profitability is expected to continue, supported by ESS and small batteries; higher U.S. production is expected to improve AMPC benefits and ESS profitability.

• Q4 ESS utility sales and UPS shipments are expected to rise QoQ; small-battery profitability is expected to improve, while declining volumes in existing EV projects weigh on profitability.

• SPE's two additional LFP lines are scheduled to start operating in phases from H1 next year, with capacity covered by orders; prioritize U.S. LFP ramp-up and long-term ESS/UPS deals.

• SynergyCells ESS LFP mass production is expected between H2 2028 and early 2029, subject to investment progress, with phased capacity additions.

• All-solid-state battery commercialization for humanoids is targeted for H2 next year after customer evaluations of cell and pack samples supplied in September.