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Samsung SDI finds profitability in Q1 on back of ESS battery drive

Published: 28 Apr. 2026, 15:49

Samsung SDI headquarters [SAMSUNG SDI]

Samsung SDI, a major Korean battery manufacturer, said Tuesday it swung to a profit in the first quarter from a year earlier, driven by expanded energy storage system (ESS) sales.

In the three months that ended in March, the company shifted to a net profit of 56.1 billion won ($38.1 million) from a net loss of 216 billion won in the same period last year, it said in a regulatory filing.

The company attributed the turnaround to increased U.S.-based production and sales of ESS batteries, along with stronger demand for high-margin cylindrical batteries.

It expects overall U.S. ESS demand to grow at an average annual rate of 12 percent, reaching 160 gigawatt-hours (GWh) in 2030 from 90 GWh in 2025. Of the total, demand for ESS used in data centers is projected to increase by more than 30 percent annually, rising to 40 GWh from 9 GWh over the same period.

Lower corporate tax outlays also contributed to the improved results. Operating loss narrowed to 155.6 billion won from 434.1 billion won during the same period. Sales rose 12.6 percent to 3.57 trillion won from 3.17 trillion won.

Samsung SDI expects its performance to recover gradually from the second quarter, supported by improving market demand.

In the electric vehicle battery segment, demand is projected to strengthen on the back of expanded incentives in Europe and the rising total cost of ownership of internal combustion engine vehicles, the company said. For the ESS business, Samsung SDI plans to expand U.S. production and sales capacity to meet increasing demand from AI data centers.

"Despite ongoing uncertainties in the global business environment, we will continue to execute our strategies across all business areas and aim to return to quarterly profit in the second half," a company official said.

Yonhap