EL7.AI
StocksMedium•29 October 2026•
4 min read

Samsung SDI posts third-quarter operating profit of 361.9 billion won

Key Facts

1Battery business revenue was 4.41 trillion won, up 55.3% year on year, and the segment posted operating profit of 361.9 billion won in the third quarter of 2026.
2Samsung SDI secured energy storage battery orders exceeding 60 gigawatt-hours during 2026 through the end of the period covered by the results.
3Electronic materials revenue rose 18.9% to 275.7 billion won, while operating profit increased 18.3% to 45.9 billion won.
4The shares traded at 516,000 won at 10:46 a.m. on October 29, down 3.37% from the previous session.

Samsung SDI returned to operating profit in the third quarter of 2026, with its battery business posting operating profit of 361.9 billion won on revenue of 4.41 trillion won. The company said revenue in the segment rose 55.3% year on year, attributing the improvement to higher sales of energy storage systems and backup battery units. The performance came amid the global expansion of AI data centers, which is supporting demand for power and storage solutions. It marked a return to operating profitability in the segment after a loss in the same period a year earlier. The company also described the result as its highest since the third quarter of 2023, when operating profit was 496.0 billion won.

The company attributed the improvement in its battery business to a mix of demand sources, with sales of energy storage systems and backup power units contributing as the AI data center market expanded. It added that sales of cylindrical batteries used in power tools and electric vehicles also increased. These factors show that the improvement did not rely on storage systems alone, but spanned multiple products and applications within the battery business. Samsung SDI said rising U.S. demand for storage helped it secure orders exceeding 60 gigawatt-hours during 2026 through the end of the period covered by the results. That order volume indicates the reach of its storage business beyond sales in the quarter alone.

The electronic materials segment also improved, with revenue rising 18.9% year on year to 275.7 billion won. Operating profit increased 18.3% to 45.9 billion won, according to company data. Results growth thus extended to electronic materials alongside the battery business, which remained the largest driver of the operating performance cited. Company disclosures also said third-quarter revenue and operating profit included 122.5 billion won in U.S. manufacturing tax credits linked to the Inflation Reduction Act. Beginning this quarter, the company started changing how it presents those credits in its financial statements.

In manufacturing, Samsung SDI said it began mass production in October of high-capacity prismatic lithium iron phosphate cells at the Star Plus Energy plant in the United States. It said it plans to convert additional production lines in the U.S. to produce cells using the technology. The move comes alongside the expansion of its storage business, whose growth the company linked to demand from data centers and backup power. It also said it aims to complete long-term supply agreements under discussion during 2026 for utility-scale energy storage applications and uninterruptible power supply systems. The company's plans therefore combine increased production capacity with efforts to secure demand through long-term supply contracts.

Samsung SDI shares traded at 516,000 won at 10:46 a.m. on October 29, down 3.37% from the previous session, according to Aju Press. The decline came on the day results were announced, despite the return to operating profitability in the battery segment and revenue growth. Yonhap News Agency, meanwhile, said net profit came in below the average analyst estimate, adding another dimension to investors' reading of the figures. The available data do not identify the reason for the share move, but document the decline during morning trading on the announcement date. The move is recorded as of the stated observation time, not as the day's closing result.

For the fourth quarter of 2026, the company expects momentum in demand growth for energy storage systems to continue, alongside increased demand for electric vehicles in Europe. It sees weak U.S. demand for electric vehicles persisting for now. Samsung SDI said it expects to maintain profitability in the fourth quarter, supported by continued growth in its storage and small-battery businesses. It added that it will continue to pursue profitable growth over the medium and long term. In the coming months, the company's focus will be on sustained storage growth and execution of its production plans and long-term agreements, as prospects for the electric vehicle market diverge between Europe and the United States.