Samsung SDI Returns to Profitability Ahead of Schedule in Q2 2026, Revenue Up 18.5%
Samsung SDI reported Q2 2026 revenue of KRW 3.77 trillion and operating profit of KRW 203.8 billion, its first operating profit in seven quarters and ahead of its own turnaround target.
KRW 3.77 trillion
KRW 203.8 billion
Since Q3 2024
What Happened
Samsung SDI posted Q2 2026 revenue of KRW 3.77 trillion ($2.59 billion), up 18.5% year-on-year and 5.4% from the previous quarter. Operating profit reached KRW 203.8 billion, turning positive for the first time in seven quarters since Q3 2024. Net profit surged 740.5% quarter-on-quarter to KRW 471.6 billion, also turning profitable year-on-year. Cumulative operating profit for the first half hit KRW 48.2 billion, achieving a turnaround earlier than the company had expected.
In the Battery Business, revenue rose 18.8% year-on-year to KRW 3.52 trillion, with operating profit of KRW 159.3 billion marking a return to surplus. Growth was driven by high-power batteries for UPS, BBU, and power tools, as well as electric vehicles in Europe. Profitability improved thanks to higher sales of high-value products, AMPC benefits from U.S. local production, and U.S. tariff refunds. The Electronic Materials Business saw revenue up 14.5% to KRW 249.8 billion and operating profit up 34.8% to KRW 44.5 billion, led by semiconductor materials and foldable smartphone film materials.
- Secured long-term ESS supply agreements with major U.S. customers using prismatic battery technology and local manufacturing.
- Won key orders for next-generation distribution-grid ESS projects in Korea.
- Won a new EV battery project with Mercedes-Benz, completing its portfolio of Germany's top three premium automakers (BMW, Audi, Mercedes-Benz).
- Won the industry's first cylindrical battery project for hybrid electric vehicles.
- Expanded sales of high-power batteries for power tools and launched a new prismatic EV battery with industry-highest energy density.
- Expanded partnerships in emerging sectors such as humanoid robotics and aerospace, and diversified customers for next-generation semiconductor packaging materials.
“While SAMSUNG SDI initially anticipated a turnaround in the second half of the year, stronger-than-expected revenue growth and improved profitability across the business units enabled the company to return to profitability earlier than expected.”
For the second half of 2026, Samsung SDI expects continued earnings recovery. Plans include strengthening the U.S. local supply chain for ESS batteries, preparing mass production of prismatic LFP batteries, and expanding UPS production capacity. The company is also advancing sodium-ion battery development for AI data center UPS and utility-scale ESS. In EV batteries, it expects European demand to rise despite U.S. softness, and will pursue LFP projects and mass-market model supplies. For small batteries, it will expand high-power cylindrical capacity for BBU, power tools, and emerging robotics and aerospace applications. In electronic materials, strong demand for semiconductor and display materials is expected, with expanded sales of next-generation packaging and high-value film materials.
Previously from Samsung SDI
In Q1 2026, Samsung SDI reported an operating loss and aimed to return to quarterly profitability in the second half of the year. In April, it signed its first EV battery supply deal with Mercedes-Benz. Today's results show the company achieved a turnaround ahead of schedule, and it has since won a new project with Mercedes-Benz.
- Samsung SDI Reports Q1 2026 Revenue Up 12.6%, Operating Loss Narrows 64.2%
- Samsung SDI Signs First EV Battery Supply Deal with Mercedes-Benz
Background drawn from MotorClaw's earlier coverage of Samsung SDI's official releases.
Why this matters
This earnings beat shows Samsung SDI's recovery is accelerating, driven by AI data center battery demand and new EV projects. For investors and industry watchers, it signals the company is on track for sustainable growth after a prolonged loss period.
Terms in This Story
- AMPC
- Advanced Manufacturing Production Credit, a U.S. tax credit for domestic battery production.
- prismatic battery
- A battery cell with a rectangular shape, often used in EVs and ESS for efficient packing.
- sodium-ion battery
- A rechargeable battery that uses sodium ions instead of lithium, offering lower cost and abundant materials.
Summarised from the linked release; details can be imperfect — always verify against the original source.