[Q1] Company reports KRW 3.18 trillion ($2.23 billion) in revenue, and KRW 434.1 billion in operating profit amid weak seasonality and customers’ inventory adjustments
[Q2] Earnings to improve upon demand recovery, despite persisting uncertainties
Company aims to respond swiftly to demand changes while steadily preparing for the future – securing new orders for high-nickel, LFP, 46-series as well as all solid-state batteries
SAMSUNG SDI today reported financial results for the first quarter that ended March 31, 2025.
The company posted a quarterly revenue of KRW 3.18 trillion ($2.23 billion) and an operating loss of KRW 434.1 billion for the first three months of 2025.
The battery business generated revenue of KRW 2.98 trillion, down 34.9% year-on-year and 16.4% quarter-on-quarter. Its operating loss was at KRW 452.4 billion.
Revenue declined due to inventory adjustments by major customers, including batteries for electric vehicles and power tools, and weak seasonality in the energy storage (ESS) market. These factors led to lower utilization rates and higher fixed costs, resulting in decreased profitability.
The electronic materials business reported revenue of KRW195.9 billion, down 16.4% year-over-year but up 3.1% quarter-on-quarter. The operating profit stood at KRW 18.3 billion.
The revenue and profitability slightly increased from the previous quarter, owing to higher demand for organic light-emitting diode (OLED) materials.
Business highlights for First Quarter
SAMSUNG SDI has commenced early operations at its joint venture with Stellantis in the U.S., achieving high yield rates. The company has also begun construction of the joint venture with General Motors, targeting mass-production of batteries in 2027. These developments will enable SAMSUNG SDI to further strengthen its prismatic battery supply system at its full-scale production bases in the U.S.
In addition, SAMSUNG SDI began mass-production of 46-series cylindrical batteries in the first quarter. The company also signed an MOU with Hyundai Motor Group to jointly develop batteries for robotics applications, further diversifying its product portfolio and enhancing competitiveness.
Business Outlook for the Second Quarter 2025
Starting from the second quarter, the company expects to see the overall performance to gradually improve as demand recovers. However, uncertainties stemming from the U.S. tariff policies are likely to expand.
Regarding the EV battery market, major OEMs are expected to finalize their inventory adjustments, and demand for EVs is projected to start picking up in Europe where carbon emissions regulations and EV-friendly policies are scheduled to take effect. Nonetheless, the uncertainties from the U.S. tariffs would remain, affecting demand recovery.
SAMSUNG SDI plans to actively respond to changes in market demand by finalizing discussions with major customers on new projects, including high-nickel NCA (nickel-cobalt-aluminum), LFP (lithium-iron-phosphate), and 46-series batteries, and by clinching new deals. The company will be upgrading samples its all-solid-state batteries, as part of preparations for long-term growth.
The ESS business is forecast to continue the recent growth momentum as the market for utilities and uninterruptible power supply (UPS) system keeps growing along with the rising demand for renewable energy and AI data centers across the globe. New business opportunities in the domestic market are also anticipated as the 11th Basic Plan for Long-term Electricity Supply and Demand will be finalized in the quarter.
SAMSUNG SDI aims to expand sales of its utilities-scale SAMSUNG Battery Box (SBB) featuring safety, and high energy density batteries, as well as high-power batteries for UPS. The company also plans to actively participate in domestic grid stabilization projects to sustain its growth momentum.
For the small battery business, SAMSUNG SDI plans to increase sales of the battery back-up unit (BBU), whose demand is expected to rise significantly alongside the expansion of AI data centers. The company will also focus on securing revenue and profitability from mobile devices.
As demand for semiconductors and OLED materials remains strong, the electronic materials business will continue to expand sales of high-value products, including semiconductor patterning materials and foldable OLED materials.
Despite the high market volatility in the second quarter, SAMSUNG SDI forecasts its business performance would bottom out in the first quarter and start improving in the next three months. The company plans to take active measures to improve its performance, while proceeding with the preparations for future competitiveness as planned.
