Samsung SDI Cuts First-Quarter Operating Loss 64%, Sees Quarterly Profit in Second Half

Quarterly profit seen returning in the second half

Samsung SDI posted a sharp reduction in its first-quarter loss from a year earlier, signaling a rebound in earnings. The improvement was driven by higher U.S. energy storage system, or ESS, sales and increased shipments of higher-margin cylindrical batteries. The company expects losses that have persisted since the fourth quarter of 2024 to turn into quarterly profit in the second half of this year.

Samsung SDI said on April 28 that its preliminary consolidated operating loss for the first quarter was 155.6 billion won ($108 million), down 64.2% from 434.1 billion won a year earlier. Revenue rose 12.6% to 3.5764 trillion won ($2.48 billion). Net profit was 56.1 billion won ($38.9 million), compared with a loss a year earlier.

The battery division was the main driver of the narrower loss. Its loss shrank 61% from a year earlier to 176.6 billion won ($122 million). Demand recovered in downstream markets including ESS for power applications and uninterruptible power supplies, or UPS, used in artificial intelligence data centers. Expanded ESS sales in the U.S. lifted benefits from Advanced Manufacturing Production Credits, or AMPC, while sales of higher-value cylindrical batteries also increased. On April 20, Samsung SDI signed a multitrillion-won contract to supply electric-vehicle batteries to Mercedes-Benz.

The electronic materials division remained profitable, reporting revenue of 222 billion won ($154 million) and operating profit of 21 billion won ($14.6 million). A Samsung SDI official said the company expects to return to quarterly profit in the second half.

Yang Gil-seong, Hankyung.com reporter vertigo@hankyung.com