Samsung SDI(006400) posted an operating profit of 203.8 billion won in the second quarter this year, returning to the black after seven quarters. Even excluding more than 107.7 billion won in the U.S. Advanced Manufacturing Production tax credit (AMPC) received, it logged a profit of 96.1 billion won.
Samsung SDI said in a filing on the 30th that its second-quarter operating profit on a consolidation basis was 203.8 billion won, turning profitable from a loss a year earlier on a preliminary basis. It was the first profit in seven quarters since the third quarter of 2024. Sales for the same period rose 18.5% to 3.7688 trillion won, and net profit also swung to a profit of 471.6 billion won.
Samsung SDI said, "Results improved as we actively responded to artificial intelligence (AI) data center demand in the first half, focusing on high-power products for energy storage systems (ESS), uninterruptible power supplies (UPS), and battery backup units (BBU)."
Samsung SDI signed long-term supply agreements (LTA) with major U.S. energy storage system (ESS) customers based on its competitiveness in prismatic batteries and local production capabilities. Winning contracts in Korea's next-generation power distribution ESS projects also had a positive impact on results.
It then won a new project from Mercedes-Benz, securing all three of Germany's premium finished car brands as clients. It also won the industry's first project for cylindrical batteries for hybrid electric vehicles.
Sales of high-power batteries for power tools increased, and at the same time, the launch of prismatic batteries for electric vehicles with industry-leading energy density lifted overall utilization rates. It also expanded cooperation with key customers in humanoids, aerospace, and new semiconductor packaging.
Battery sales rose 18.8% year over year to 3.519 trillion won, and operating profit swung to a profit of 159.3 billion won. Sales of high-power batteries and electric-vehicle batteries bound for Europe increased, and profitability improved significantly with 107.7 billion won in U.S. AMPC receipts reflected.
Electronic materials sales increased 14.5% from a year earlier to 249.8 billion won, and operating profit rose 34.8% to 44.5 billion won.
Samsung SDI expects improvements to continue in the second half. For ESS batteries, it plans to proceed without setbacks in building a U.S. local supply chain and preparing for mass production of prismatic LFP batteries, actively participate in various projects in Korea, and expand UPS production capacity.
Sodium-ion (sodium) batteries will see concrete mass production plans for UPS for AI data centers and power ESS products. For electric-vehicle batteries, it will expand supply centered on the European market and pursue orders for various projects, including LFP batteries. For small batteries, it will expand production capacity for high-power cylindrical batteries in response to market growth in humanoids and aerospace.
A Samsung SDI official said, "With sales growth and profitability improvement accelerating, the timing of the turnaround came earlier than expected," adding, "We will continue to pursue sustainable top-line growth and profitability."