Samsung SDI has reported a marked improvement in its first-quarter 2026 results, cutting losses sharply on the back of stronger energy storage demand, expanded U.S. production, and a more diversified battery portfolio.

 

For the quarter ended March 31, 2026, the company posted revenue of KRW 3.58 trillion ($2.43 billion), up 12.6% year-on-year. Operating loss narrowed dramatically to KRW 155.6 billion, a 64.2% improvement. Crucially, Samsung SDI returned to the bottom line with a net profit of KRW 56.1 billion.

 

The battery division, the core of the business, generated KRW 3.35 trillion in revenue but still recorded an operating loss of KRW 176.6 billion. However, losses narrowed significantly as demand strengthened across energy storage systems (ESS), UPS, BBU, and power tools. 

 

Revenue in the segment rose 12.5% year-on-year, with losses reduced by more than 61%.

 

The company attributed the turnaround momentum to rising Advanced Manufacturing Production Credit (AMPC) benefits from expanded U.S. ESS production, along with stronger sales of high-value cylindrical batteries.

 

Meanwhile, the electronic materials business delivered a solid performance, posting KRW 222 billion in revenue and KRW 21 billion in operating profit, supported by stable semiconductor demand and a rebound in display materials tied to stronger flagship smartphone sales.

 

Samsung SDI highlighted several strategic wins during the quarter, including expanded ESS orders, deeper EV customer diversification, and continued investment in next-generation technologies.

 

In ESS, the company secured new prismatic LFP battery projects and supply deals for high-power BBU batteries. It also began restructuring its supply chain to comply with U.S. Prohibited Foreign Entity (PFE) regulations, positioning itself for sustained growth in North America.

 

In EV batteries, Samsung SDI signed a multi-year supply agreement with Mercedes-Benz, securing partnerships with all three major German premium automakers. It also expanded its portfolio into tabless cylindrical batteries for hybrid vehicles.

 

At InterBattery 2026 in Seoul, the company unveiled a pouch-type all-solid-state battery sample aimed at physical AI applications and introduced new solutions targeting improved lifespan and safety in next-generation lithium batteries.

 

Looking ahead to Q2 2026, Samsung SDI expects a gradual recovery in performance as demand conditions improve.

 

In EV batteries, the company anticipates stronger demand from European incentive programs and rising total cost of ownership advantages over internal combustion engines. It plans to scale up new projects while improving utilization rates to boost profitability.

 

The ESS business is expected to accelerate further, driven by AI data center demand and expanded U.S. production. Samsung SDI also plans to participate in Korea’s government-led ESS procurement programs for power utilities and grid infrastructure.

 

Small batteries are expected to grow on the back of BBU and power tool demand, supported by AI-driven data center expansion and a recovery in micro-mobility markets.

 

In electronic materials, demand for semiconductor and OLED components is expected to remain steady, with the company pushing deeper into advanced patterning and display solutions.

 

Despite the improving outlook, the company remained cautious.

 

“Uncertainty in the global business environment is expected to persist in the second quarter as well,” said a company official. “We will continue efforts to execute our strategies across all business areas smoothly as planned and to swing to a quarterly profit in the second half of the year.”