Samsung SDI has returned to profitability for the first time in seven quarters, driven by increased sales of batteries for AI data centers and European electric vehicles. The company achieved this turnaround earlier than expected, recording a cumulative operating profit for the first half of the year.
On July 30, Samsung SDI reported consolidated revenues of 3.7688 trillion won and an operating profit of 203.8 billion won for the second quarter of 2026. This represents an 18.5% increase year-on-year and a 5.4% increase from the previous quarter.
The company turned profitable in operating income for the first time since the third quarter of 2024, following a loss of 155.6 billion won in the first quarter. For the first half of the year, Samsung SDI recorded a cumulative operating profit of 48.2 billion won.
The battery division reported revenues of 3.519 trillion won and an operating profit of 159.3 billion won, marking an 18.8% increase in revenue year-on-year and a return to profitability. This improvement was attributed to increased sales of uninterruptible power supplies (UPS), battery backup units (BBU), high-output batteries for power tools, and batteries for electric vehicles in Europe.
The electronic materials division generated revenues of 249.8 billion won and an operating profit of 44.5 billion won, reflecting increases of 14.5% and 34.8%, respectively, compared to the same period last year.
During the conference call, Samsung SDI projected that the positive trend in its first-half performance would continue into the second half of the year. The company anticipates that growth in the U.S. energy storage system (ESS) and UPS markets will drive further improvements in performance.
O Jae-kyun, Vice President of Management Support at Samsung SDI, stated, "Considering the growth of the U.S. market for power ESS and UPS, we expect significant expansion in ESS sales in the second half. The increase in sales due to the operation of the new lithium iron phosphate (LFP) line and benefits from the Advanced Manufacturing Production Credit (AMPC) will support a favorable profitability trend."
Regarding concerns about a slowdown in the expansion of AI data centers, the company believes the impact on the ESS business will be limited.
Cho Yong-hwi, head of the ESS business team, explained, "Even if the pace of AI data center expansion slows, the structural growth of the U.S. ESS market remains valid. The share of renewable energy generation, particularly solar and wind, is increasing due to rising power demand and improved economics of renewable energy."
Samsung SDI also expressed optimism about securing additional orders in the European electric vehicle market. As demand for locally produced products increases, the company sees expanded opportunities for orders due to its production base in Hungary and supply chain for materials and components in Europe.
Jo Han-je, head of strategic marketing, noted, "As demand for locally produced products in Europe surges, our opportunities for orders are significantly increasing."
Additionally, Samsung SDI is targeting new battery markets, including humanoid robots and aerospace. The company is currently supplying high-output cylindrical batteries to several humanoid clients and is expanding related projects.
For aerospace batteries, demand is currently centered around low-Earth orbit satellites, but it is expected to expand to applications such as space data centers in the long term. However, due to the special performance requirements for extreme cold environments and high safety standards, the company is discussing product development and supply solutions with its clients.
Samsung SDI is preparing for mass production of solid-state batteries in the second half of 2027, with the first commercialization project likely to emerge in the humanoid sector.
* This article has been translated by AI.
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