Q2 2025 Samsung SDI Co Ltd Earnings Call Transcript
Key Points
- Samsung SDI Co Ltd (FRA:XSDG) secured an order for 46-phi cylinder batteries for European global EV lineup, indicating future growth in the battery business.
- The company won multiple projects in the ESS business, including a contract for a utility ESS project in the US, with local production scheduled to begin in Q4.
- Sales of OLED materials for major customers and semiconductor wafer production increased, improving revenue and profitability in the Electronic Materials business.
- Samsung SDI Co Ltd (FRA:XSDG) plans to supply newly developed tablet ultra-high-power batteries to major customers in Q3, expanding its small battery market.
- The company is actively diversifying its applications and customer base, including discussions to expand applications to HEVs, humanoids, and UAM.
- Q2 revenue was down by 22% year-over-year, and the company recorded a net income loss of KRW167 billion.
- Operating income recorded a loss of KRW398 billion, with the battery business facing a significant operating deficit.
- Sluggish demand from major EV customers and delayed volume compensation impacted revenue and profitability.
- The US tariff policy is expected to have a mid-single-digit percentage impact on operating margin in the second half.
- Macroeconomic uncertainties and external factors such as tariffs are expected to continue contributing to earnings volatility.
Good afternoon, everyone. Thank you for joining Samsung SDI's 2025 second quarter earnings call. (Operator Instructions) Now we'll begin 2025 second quarter earnings results.
Good afternoon. I'm Yoontae Kim, Executive Vice President of the Business Management Office at Samsung SDI. First, thank you for joining today's earnings call. And joining me are CFO, Jong Sung Kim; VP, Soo Han Kim, for Automotive and ESS battery; EVP, Hanjae Cho, for small battery and VP, Ik Soo Kim for electronic materials.
We'll provide simultaneous interpretation for the earnings presentation and consecutive interpretation for the Q&A session. Now we'll begin Samsung SDI's 2025 second quarter earnings call. First off, please note that starting with the 2024, 3Q results the profit or loss from discontinued operations is separately stated due to the decision to discontinue the [polarizer] phone business. Today's presentation will also be based on the same reporting standards. We'll start with our 2025 Q2 financial results.
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