Samsung SDI announced on July 30 that it recorded sales of 3.7688 trillion won and an operating profit of 203.8 billion won for the second quarter of this year.
Sales increased by 18.5% compared to the same period last year and rose by 5.4% from the previous quarter. Notably, the company returned to profitability for the first time in seven quarters since the third quarter of 2024. This resulted in a cumulative operating profit of 48.2 billion won for the first half of the year, successfully achieving an early turnaround.
The net profit for the second quarter was 471.6 billion won, a staggering increase of 740.5% from the previous quarter, and also marked a return to profitability compared to a year ago.
In terms of business segments, the battery division reported sales of 3.519 trillion won, an 18.8% increase year-on-year, and an operating profit of 159.3 billion won, marking a return to profit. Sales of high-output batteries used in uninterruptible power supplies (UPS), battery backup units (BBU), and power tools, as well as batteries for electric vehicles in Europe, contributed to the growth compared to both the same period last year and the previous quarter.
Particularly, the expansion of high-value products and improved profitability due to increased local production in the U.S. led to significant gains, aided by the Advanced Manufacturing Production Credit (AMPC) benefits and customs refunds. Samsung SDI received 107.7 billion won from AMPC. The market has positively evaluated the fact that the company recorded operating profit even excluding AMPC benefits.
The electronic materials division saw sales increase by 14.5% year-on-year, with operating profit rising by 34.8% to 44.5 billion won. Strong sales of semiconductor materials continued, particularly in film materials for foldable smartphones, leading to improvements in both sales and profitability.
The company cited increased demand related to AI data centers as a key factor for its strong performance.
Additionally, Samsung SDI secured long-term supply contracts with major ESS customers in the U.S. during the first half of the year and achieved significant orders in a domestic next-generation power distribution ESS project, laying the groundwork for market leadership in the ESS sector.
Furthermore, the company won a new project with Mercedes-Benz, securing all three major German premium automotive brands as clients, following contracts with BMW and Audi. It also became the first in the industry to win a project for cylindrical batteries for hybrid electric vehicles.
Alongside the increase in sales of high-output batteries for power tools, the launch of rectangular batteries with industry-leading energy density for electric vehicles has also boosted overall operational efficiency.
Samsung SDI stated, "Initially, we expected a turnaround in the second half of this year, but rapid sales growth and improved profitability have accelerated the timing of our return to profit. We will continue to pursue sustainable growth and profitability."
* This article has been translated by AI.
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