Revenue holds steady at KRW 3.18 trillion; Operating loss narrows to KRW 397.8 billion
Gradual recovery expected in second half amid ongoing uncertainties with focus on operational efficiency and new product-driven growth
SEOUL, Korea – July 31, 2025 – Samsung SDI today reported financial results for the second quarter that ended June 30, 2025.
The company announced that it recorded KRW 3.18 trillion ($2.13 billion) in aggregate revenue with an operating loss of KRW 397.8 billion ($286 million). In comparison with the previous quarter, the revenue edged up 0.1%, while the operating loss decreased modestly by 8.4%.
The battery business posted KRW 2.96 trillion ($2.13 billion) in revenue, decreasing 0.7% quarter-on-quarter and 23.5% year-on-year. Operating loss decreased to KRW 430.8 billion ($310 million), improving by 4.8% from the previous quarter. However, the battery business posted a loss, when compared to the same period last year.
Although the revenue from battery sales for Energy Storage Systems (ESS) and Battery Backup Units (BBU) increased, the overall battery revenue remained flat quarter-on-quarter due to a slowdown in electric vehicle demand from key customers. But the operating profit could achieve a modest reduction, owing to profitability improvement from the small battery business unit, despite the persisting pressures of fixed cost burdens and tariff-related challenges amid delayed recovery.
The electronic materials business recorded KRW 218 billion ($157 million) in revenue, up 11.9% quarter-on-quarter and 8.9% year-on-year. Operating profit increased to KRW 33 billion ($24 million) compared to the previous quarter. This growth was driven by increased sales of OLED materials following new smartphone launches by key customers, as well as higher semiconductor wafer production.
Business Highlights for First Half
Amidst the expanding uncertainties in the business environment in the first half of the year, Samsung SDI rolled out increased activities for new business opportunities in the EV and ESS sectors, laying a solid foundation for future growth.
The company signed a contract with a major OEM in Europe to supply 46-series cylindrical batteries for a premium EV model. It is also in active discussions with other OEMs in the U.S. and Europe on LFP and NCA prismatic battery projects.
In addition, Samsung SDI joined multiple domestic projects in the first-round bid for the government-led ESS construction plan. The company also clinched a supply deal with a customer in the U.S. and is scheduled to start production of batteries for ESS in the U.S. from the fourth quarter.
Business Outlook for Second Half of 2025
In the second half of the year, the company has positive forecasts for improvements in revenue and profitability, while being cautious of impacts of lingering macroeconomic uncertainties.
Samsung SDI aims to mitigate the impact of fluctuating demand by improving operational efficiency at StarPlus Energy (SPE), its joint venture with Stellantis in the U.S. In parallel, the company plans to expand its presence in the affordable EV market by introducing new battery chemistries, including prismatic LFP cells.
As part of its ESS battery business strategy, Samsung SDI plans to begin mass production in the U.S. within the year, and expand domestic sales through the power grid stabilization project in Korea. The company will also actively seek orders for LFP batteries for utilities and ultra-high-power UPS batteries, in response to the growing renewable energy sector and rising demand from AI data centers.
For the small battery business, the company plans to increase sales of high-power batteries for BBUs and grow its presence in the power tool battery market through the introduction of a new tabless cylindrical battery.
Samsung SDI expects its electronic materials business to maintain the strong growth momentum supported by rising demand for OLED and semiconductor materials. The company plans to expand market share by ensuring timely supplies for new platforms and expansion into new products.
Despite the challenging market conditions, Samsung SDI remains committed to consistently executing its core business strategies with an aim to recover its business performance and achieve growth in the mid- to long term.
