Samsung SDI (006400) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached KRW 3.9 trillion, up 26.4% QoQ and 2.8% YoY, with full-year 2025 revenue at KRW 13.3 trillion, down 20% from 2024.

• Q4 2025 operating loss was KRW 299 billion, narrowing from the previous quarter, but full-year operating loss was KRW 1.7 trillion.

• Net loss for Q4 2025 was KRW 208 billion, with a full-year net loss of KRW 585 billion.

• Asset base increased to KRW 42.3 trillion, liabilities decreased to KRW 18.7 trillion, and equity rose to KRW 23.6 trillion YoY.

Financial highlights

• Battery business Q4 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 profitability weighted toward the second half.

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

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

• Small battery sales expected 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.