Samsung SDI Co., Ltd. manufactures and sells batteries in South Korea, Europe, China, North America, Southeast Asia, and internationally. The company operates ...
Samsung SDI Co., Ltd. (006400.KS) is a global battery and advanced materials manufacturer headquartered in Yongin-si, South Korea. The company was established in 1970 and today operates primarily around two business areas: Energy Solutions and Electronic Materials. Under Energy Solutions, Samsung SDI manufactures and sells lithium-ion batteries used in consumer ...Samsung SDI Co., Ltd. (006400.KS) is a global battery and advanced materials manufacturer headquartered in Yongin-si, South Korea. The company was established in 1970 and today operates primarily around two business areas: Energy Solutions and Electronic Materials. Under Energy Solutions, Samsung SDI manufactures and sells lithium-ion batteries used in consumer and mobile devices (e.g., laptops, tablets, mobile phones, wearable devices), as well as applications such as power tools, e-mobility devices (e-bikes and e-scooters), and various power-related products. It is also a key participant in the automotive battery market, supplying lithium-ion batteries for electric vehicles. In parallel, the company provides energy storage systems targeted at residential, utility-scale, commercial/industrial UPS applications, and base transceiver station (telecom) power backup.
In Electronic Materials, Samsung SDI supplies materials used in semiconductor and display-related processes. The portfolio described in the provided sources includes semiconductor-related products (such as spin-on hardmasks and spin-on dielectrics, plus epoxy molding compounds), LCD-related materials (including polarizing films and color photoresist products), and OLED-related materials (including evaporation materials and thin film encapsulation products). This dual-engine model supports technological cross-application of materials know-how while also diversifying end-market exposure between electronics manufacturing supply chains and the rapidly growing energy/battery sector.
From a cost and operational perspective, Samsung SDI’s business is strongly influenced by raw material procurement (e.g., battery-grade chemicals), manufacturing scale and yield (electrode and cell production efficiency), and sustained research and development to improve energy density, safety, cycle life, and manufacturing competitiveness. Battery manufacturing typically requires substantial capital expenditure for capacity expansion and process upgrades, and the company’s long-term competitiveness depends on maintaining technology leadership and supply-chain stability for key inputs. The provided financial snapshot indicates profitability pressure in the most recent trailing twelve months (e.g., negative operating margins and free-cash-flow metrics), which is consistent with the sector’s cycle, investment intensity, and potential timing effects of capex and demand.
Financially, the provided dataset shows a market capitalization on the order of tens of trillions of KRW and valuation multiples (e.g., price-to-book and enterprise-value multiples). It also includes liquidity/working-capital indicators and margins (gross margin and operating/EBIT margins) derived from trailing-twelve-month performance, suggesting that while gross profitability exists, operating profitability and cash generation may be constrained versus longer-term targets. Such patterns are common for high-investment industrial manufacturers during periods of capacity buildout or product-transition.
Key leadership includes Joo Sun Choi, who serves as President and CEO (as indicated in the sources). Samsung SDI also benefits from its parent relationship within the Samsung ecosystem, supporting strategic manufacturing and technology resources. Looking forward, industry expectations for companies like Samsung SDI typically center on scaling advanced battery formats, improving cost per kWh, expanding energy storage deployments, and continuing to upgrade electronic materials for next-generation semiconductor and display manufacturing.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$13266.7B
-20.0%
+5.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-649.5B
-208.4%
+1315.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+10.3%
-44.7%
+60.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-13.0%
-692.9%
+181.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-4.9%
-235.5%
+1253.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-2274.5B
+65.0%
-0.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-17.1%
+56.2%
+4.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
51.6%
-13.1%
-3.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.89x
-6.3%
-12.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Thank you for joining Samsung SDI's earnings call. Following the presentation, we will hold a Q&A session with attendees. [Operator Instructions] Now we'll begin Samsung SDI's Q2 2026 earnings call.
Yoontae Kim: Good afternoon. I'm Yoontae Kim, Executive Vice President of the Finance and Accounting Team at Samsung SDI. First of all, I would like to thank everyone for joining today's earnings call. Joining me are EVP Jae-kyun Oh from Business Management Operation; EVP Hanjae Cho from Strategic Marketing Office; EVP Yonghui Cho from ESS Business Team; and VP Ik Soo Kim from Strategic Marketing Team of Electronic Materials Business. The earnings call presentation will be provided with simultaneous interpretation and Q&A session with consecutive interpretation. Now let us begin Samsung SDI's 2026 Second Quarter Earnings Call. I'll start with financial results for Q2 2026. The Q2 revenue reached KRW 3.8 trillion, up 5% Q-o-Q and 19% Y-o-Y. Operating income, including the impact of U.S. reciprocal tariff refunds, reached KRW 204 billion, returning to profitability in 7 quarters. Excluding the impact of tariffs, a small profit was recorded. Reflecting equity income in affiliates and other factors, pretax income was KRW 479 billion, and net profit was KRW 472 billion. I will now present the financial status as of the end of Q2 2026. With an increase in the equity value of affiliates, total assets rose by KRW 3.1 trillion Q-o-Q to KRW 47.6 trillion. Liabilities increased by KRW 1.2 trillion Q-o-Q to KRW 20.8 trillion. And the total equity increased by KRW 1.9 trillion Q-on-Q to KRW 26.8 trillion. Second quarter CapEx executed was KRW 503 billion. For detailed financial figures, please refer to the appendix. Next, I will share the Q2 financial results of each business unit. First, the Battery business revenue grew both Q-o-Q and Y-o-Y, driven by expanded sales of high-power products such as batteries for UPS, BBU and power tools as well as EV batteries for the European market. The operating income returned to a surplus due to expanded sales of high-value products, AMPC benefits from increased local production in the U.S. and the aforementioned tariff impact. Moving on to the Electronic Materials business. Sales of semiconductor materials remain solid, while revenue and profitability improved, primarily driven by film materials for foldable smartphones. Next are the business highlights for the first half of the year. We continue to achieve sustained quarterly performance improvements posting a profit in Q2, as mentioned earlier, as well as on a cumulative H1 basis with revenue of KRW 7.3 trillion and operating profit of KRW 48 billion. We had initially anticipated a turnaround in the second half, but thanks to rapid revenue growth and improved profitability across the business units, coupled with favorable exchange rates and tariff refunds, we were able to return to profitability sooner than expected. Here are the key contributors for each …
