Samsung SDI (006400) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached KRW 3,859 billion, up 26.4% QoQ and 2.8% YoY, with full-year 2025 revenue at KRW 13,267 billion, down 20% from 2024.

• Q4 2025 operating loss was KRW 299 billion, narrowing from the previous quarter; full-year operating loss was KRW 1,722 billion.

• Net loss for Q4 2025 was KRW 208 billion; full-year net loss was KRW 585 billion.

• Asset base increased to KRW 42,255 billion, liabilities decreased to KRW 18,700 billion, and equity rose to KRW 23,570 billion, supported by a capital increase.

Financial highlights

• Q4 battery revenue grew 28% QoQ to KRW 3.6 trillion, but operating loss was KRW 339 billion.

• Electronic Materials Business Q4 revenue was KRW 237 billion with operating profit of KRW 39 billion.

• Annual battery revenue fell 21% YoY to KRW 12.4 trillion, with an operating loss of KRW 1.9 trillion.

• Gross margin improved to 21.0% in Q4 2025 from 5.5% in Q3 2025, but full-year margin dropped to 11.0% from 18.6% in 2024.

• EBITDA rebounded to KRW 273 billion in Q4 2025 from -KRW 77 billion in Q3 2025.

Outlook and guidance

• Sequential quarterly improvement expected in 2026, with a return to profit in the second half.

• Global EV battery demand expected to grow 16% YoY in 2026, with ex-China growth at 6%.

• ESS profitability to improve as U.S. local production ramps up and AMPC benefits increase.

• Small battery sales to recover gradually; electronic materials to maintain solid growth.

• US and EU battery competition to intensify due to lower US EV demand and stricter regulations on Chinese products.