Samsung SDI Co Ltd
KRX:006400
Samsung SDI Co Ltd
Samsung SDI Co Ltd., a pivotal arm of the Samsung conglomerate, has carved a niche for itself in the arena of energy solutions and electronic components. Born out of the strategic vision to diversify Samsung's dominance beyond consumer electronics, Samsung SDI ventured into the world of batteries and electronic materials. The company's initial focus lay in cathode ray tubes for color televisions, but it underwent a transformative shift in the early 2000s towards lithium-ion batteries, aligning with global tech's movement towards portable and sustainable energy. By harnessing the growing demand for energy-efficient solutions, Samsung SDI developed a business model deeply rooted in comprehensive research, innovation, and a prowess for anticipating market needs, allowing it to supply batteries for a wide array of products – from smartphones and laptops to electric vehicles.
Today, the true engine of Samsung SDI's growth lies within its expanding electric vehicle (EV) battery segment, a critical pillar reflecting global shifts toward renewable energy. This division not only caters to prestigious automotive brands but also propels advancements in energy storage systems, supporting green initiatives and smart grid technologies. Furthermore, the company's charge in the semiconductor materials space—providing cutting-edge display materials—reinforces its dual-strength strategy of serving both consumer and industrial markets. By strategically combining its battery innovations with electronics material prowess, Samsung SDI ensures a diversified revenue stream, attuned to both consumer electronics' cyclical nature and the steadier, ascending growth of industrial demands associated with global sustainability trends. This dual focus bestows Samsung SDI a robust and resilient position in the rapidly transforming world of energy and electronics.
Samsung SDI Co Ltd., a pivotal arm of the Samsung conglomerate, has carved a niche for itself in the arena of energy solutions and electronic components. Born out of the strategic vision to diversify Samsung's dominance beyond consumer electronics, Samsung SDI ventured into the world of batteries and electronic materials. The company's initial focus lay in cathode ray tubes for color televisions, but it underwent a transformative shift in the early 2000s towards lithium-ion batteries, aligning with global tech's movement towards portable and sustainable energy. By harnessing the growing demand for energy-efficient solutions, Samsung SDI developed a business model deeply rooted in comprehensive research, innovation, and a prowess for anticipating market needs, allowing it to supply batteries for a wide array of products – from smartphones and laptops to electric vehicles.
Today, the true engine of Samsung SDI's growth lies within its expanding electric vehicle (EV) battery segment, a critical pillar reflecting global shifts toward renewable energy. This division not only caters to prestigious automotive brands but also propels advancements in energy storage systems, supporting green initiatives and smart grid technologies. Furthermore, the company's charge in the semiconductor materials space—providing cutting-edge display materials—reinforces its dual-strength strategy of serving both consumer and industrial markets. By strategically combining its battery innovations with electronics material prowess, Samsung SDI ensures a diversified revenue stream, attuned to both consumer electronics' cyclical nature and the steadier, ascending growth of industrial demands associated with global sustainability trends. This dual focus bestows Samsung SDI a robust and resilient position in the rapidly transforming world of energy and electronics.
Revenue Growth: Q4 2025 revenue was KRW 3.9 trillion, up 26.4% quarter-over-quarter and 2.8% year-over-year.
Operating Loss: Q4 operating profit was a loss of KRW 299 billion, though losses narrowed compared to previous quarters.
ESS Momentum: Strong U.S. ESS sales, aided by local production and AMPC incentives, are expected to drive a 50% YoY increase in ESS revenue and significant profitability improvement in 2026.
EV Battery Headwinds: Ongoing weak EV demand, especially in Europe and the U.S., is causing slow recovery and continued operating losses in the EV battery segment.
Small Battery Recovery: Customer inventory levels for cylindrical batteries are normalizing with sales expected to recover gradually, especially for high-power and tabless batteries.
CapEx Trend: 2025 capital expenditures declined year-over-year and are expected to decline slightly again in 2026.
Profitability Outlook: Management expects sequential quarterly improvement in 2026 and aims to turn a profit in the second half of the year.
