Samsung SDI 2025 Annual Results: Energy Solutions Segment Swings to KRW 1.85 Trillion Loss

Key takeaways

• Samsung SDI’s Energy Solutions segment (EV + ESS + small Li-ion) recorded a KRW 1.85 trillion operating loss in FY2025, swinging from a KRW 218 billion profit in FY2024, on revenue that fell 21 % to KRW 12.38 trillion.
• Consolidated gross margin halved from 18.6 % to 11.0 %, while SG&A rose 23 % (including KRW 1.42 trillion in R&D), pushing the group to a KRW 1.72 trillion operating loss.
• The company raised KRW 1.65 trillion in equity capital (11.8 million new shares at KRW 140,000) in May 2025 and suspended dividends for three years (2025–2027) to preserve liquidity.
• R&D spending grew 9.5 % to KRW 1.42 trillion, signaling continued investment in next-generation battery technology despite the loss-making year.
• US manufacturing joint ventures with Stellantis (StarPlus Energy) and General Motors (SDI-GM Synergy Cells) continued to advance, supported by growing AMPC tax credit recognition (KRW 275 billion, up from KRW 90 billion in FY2024).
• Samsung SDI does not disclose ESS-specific revenue — the Energy Solutions segment combines automotive, energy storage, and small-format Li-ion batteries into a single reporting line.

1. Headline numbers

Samsung SDI reported total revenue of KRW 13.27 trillion (~US$9.3 billion) for the year ended December 31, 2025, a 20 % decline from KRW 16.59 trillion in FY2024. The company swung from an operating profit of KRW 363 billion to an operating loss of KRW 1.72 trillion (~US$1.2 billion).

Net loss attributable to owners was KRW 649 billion (~US$457 million). This was partially offset by a KRW 290 billion gain from discontinued operations — the sale of the polarizer film business in September 2025 for KRW 1.18 trillion.

The revenue decline was concentrated in the Energy Solutions segment, which accounts for 93 % of group revenue. Gross margin contracted sharply from 18.6 % to 11.0 %, reflecting pricing pressure and underutilization across the battery portfolio.

Metric	FY2025	FY2024	Change
Total revenue	KRW 13.27 T	KRW 16.59 T	-20.0 %
Gross profit	KRW 1.46 T	KRW 3.09 T	-52.7 %
Gross margin	11.0 %	18.6 %	-7.6 pp
Operating profit (loss)	KRW (1.72 T)	KRW 363 B	Loss vs profit
Net income (loss), owners	KRW (649 B)	KRW 599 B	Loss vs profit
Basic EPS	KRW (8,796)	KRW 8,961	Loss vs profit

2. Energy Solutions segment

The Energy Solutions segment — which combines automotive (EV) batteries, energy storage systems (ESS), and small-sized Li-ion batteries — is Samsung SDI’s core business.

Metric	FY2025	FY2024	Change
Revenue	KRW 12.38 T	KRW 15.69 T	-21.1 %
Operating profit (loss)	KRW (1.85 T)	KRW 218 B	Loss vs profit
Share of group revenue	93.3 %	94.6 %	—

The segment’s swing from KRW 218 billion profit to KRW 1.85 trillion loss represents a KRW 2.07 trillion deterioration in a single year. This is the dominant factor in Samsung SDI’s group-level performance.

Samsung SDI does not break out ESS revenue, volumes, or margins separately. However, the company is a major supplier of utility-scale energy storage battery cells and rack-level DC blocks to system integrators globally. The consolidated Energy Solutions result reflects the combined impact of EV battery pricing pressure, potential customer destocking, and the costs of ramping new manufacturing capacity — particularly the US joint ventures.

The Electronic Materials segment remained profitable at KRW 130 billion operating profit on KRW 883 billion revenue, providing a modest offset.

3. Geographic revenue

Europe remained Samsung SDI’s largest market, followed by North America. However, both regions saw significant declines.

Region	FY2025	Share	FY2024	Share	Change
Europe	KRW 5,338 B	40.2 %	KRW 6,914 B	41.7 %	-22.8 %
North America	KRW 3,610 B	27.2 %	KRW 5,700 B	34.4 %	-36.7 %
SE Asia and others	KRW 2,422 B	18.3 %	KRW 2,120 B	12.8 %	+14.3 %
China	KRW 982 B	7.4 %	KRW 964 B	5.8 %	+1.8 %
Korea	KRW 915 B	6.9 %	KRW 894 B	5.4 %	+2.3 %

The KRW 2.09 trillion decline in North American revenue (-37 %) is striking. European revenue fell KRW 1.58 trillion (-23 %). Meanwhile, Southeast Asia grew 14 % and China held steady, suggesting the geographic revenue shift partly reflects changing customer ordering patterns in Western EV markets.

Four customers each exceeded 10 % of total revenue in FY2025, indicating significant customer concentration.

4. R&D and capital expenditure

Despite the operating loss, Samsung SDI increased R&D spending by 9.5 % to KRW 1.42 trillion (~US$1.0 billion). R&D represented 10.7 % of revenue, up from 7.8 % in FY2024 — reflecting both the absolute increase in spending and the decline in the revenue denominator.

Capital expenditure moved in the opposite direction, falling 50.5 % from KRW 6.65 trillion to KRW 3.29 trillion (~US$2.3 billion). The reduction signals a more selective approach to capacity expansion as the company navigates the downturn. Total property, plant, and equipment stood at KRW 19.24 trillion at year-end.

The combination of maintained R&D with halved capex suggests Samsung SDI is prioritizing technology development over volume expansion in the near term.

5. US joint ventures and AMPC credits

Samsung SDI’s US manufacturing strategy centers on two joint ventures:

• StarPlus Energy LLC — a JV with Stellantis (FCA US LLC) for battery manufacturing in the United States. Samsung SDI’s 51 % equity interest is pledged as collateral for StarPlus’s US Department of Energy borrowings.
• SDI-GM Synergy Cells Holdings LLC — a JV with General Motors for US battery manufacturing.

The US Inflation Reduction Act’s Advanced Manufacturing Production Credit (AMPC) provided KRW 275 billion (~US$193 million) in tax credits during FY2025, recognized as other operating income within Energy Solutions. This tripled from KRW 90 billion in FY2024, indicating meaningful production ramp at US facilities.

The AMPC credits partially offset the Energy Solutions segment loss, though the segment remained deeply unprofitable even after their inclusion.

6. Capital structure and liquidity

Samsung SDI took significant steps to shore up its balance sheet during FY2025:

Capital raise: In May 2025, the company issued 11.8 million new ordinary shares at KRW 140,000 per share, raising KRW 1.65 trillion (~US$1.2 billion) in fresh equity.

Dividend suspension: No cash dividends will be paid for the three-year period 2025 to 2027, preserving cash for operations and investment commitments.

Balance sheet metric	FY2025	FY2024	Change
Total assets	KRW 42.26 T	KRW 40.60 T	+4.1 %
Total equity	KRW 23.57 T	KRW 21.57 T	+9.3 %
Total borrowings	KRW 10.88 T	KRW 11.58 T	-6.0 %
Cash and equivalents	KRW 1.80 T	—	—
Net debt	KRW 8.98 T	—	—
Debt to equity	79.3 %	88.2 %	-8.9 pp
Net borrowings to equity	38.1 %	—	—

The equity raise and dividend suspension improved the debt-to-equity ratio from 88.2 % to 79.3 %. Operating cash flow also turned positive at KRW 792 billion, up from negative KRW 138 billion in FY2024 — likely reflecting working capital releases as production volumes declined.

7. Discontinued operations: polarizer film sale

Samsung SDI completed the transfer of its polarizer film business on September 1, 2025, for KRW 1.18 trillion. The transaction generated a gain on disposal of KRW 441 billion and contributed KRW 290 billion in profit from discontinued operations.

This divestiture signals a strategic focus on the core battery business. The proceeds provided additional liquidity during a period of operating losses.

8. Impairments and litigation

The auditor’s report flagged several risk areas:

• NOVALED goodwill impairment: KRW 114 billion written off
• PP&E impairment: KRW 105 billion on idle facilities
• Inventory valuation: identified as a key audit matter, reflecting the challenge of maintaining inventory value amid falling battery prices
• Pending litigations: 36 active cases, including CRT collusion civil claims in Europe
• Impairment test for medium-sized EV Li-ion battery CGU: the auditor assessed management’s impairment test as a key audit matter, though no impairment was recognized (recoverable value exceeded carrying amount)

The idle facility impairment and the auditor’s focus on inventory valuation and the EV battery CGU test are consistent with an industry experiencing overcapacity and pricing pressure.

9. What to watch

ESS remains invisible in the financials. Samsung SDI does not disclose ESS-specific revenue, volumes, or margins. Until the company provides sub-segment detail, it is not possible to assess whether energy storage is contributing to or offsetting the Energy Solutions segment loss. The company’s ESS products (battery cells and DC blocks for utility-scale storage) serve a growing market, but their financial contribution cannot be isolated from this filing.

North American revenue declined 37 %. The sharp drop — KRW 2.09 trillion in a single year — coincided with the ramp-up period for the US joint ventures. Whether this reflects customer destocking, contract timing, or structural demand shifts will become clearer with subsequent filings.

AMPC credits tripled to KRW 275 billion. The growth in US manufacturing tax credits confirms increasing production at US facilities. At scale, these credits can materially improve Energy Solutions profitability. The trajectory from KRW 90 billion to KRW 275 billion in one year suggests significant volume ramp.

Three-year dividend suspension is unusual for Samsung SDI. The suspension through 2027, combined with the May 2025 equity raise, indicates management expects the operating environment to remain challenging and that capital preservation is the priority.

Capex was halved but R&D grew. The company is investing in next-generation technology while pulling back on volume expansion. This positions Samsung SDI to compete on technology differentiation rather than scale — a different strategy from Chinese competitors expanding capacity aggressively.

Debt-to-equity improved despite losses. The equity raise more than offset the net loss, bringing leverage down to 79 %. The balance sheet provides headroom, but continued losses at the FY2025 rate would erode this buffer within two to three years without further capital action.

10. Sources

All data in this article is sourced from Samsung SDI’s Consolidated Financial Statements for the year ended December 31, 2025, audited by Samil PricewaterhouseCoopers with an unqualified opinion dated February 19, 2026.

• Samsung SDI 2025 Audit Report (PDF) — Consolidated financial statements, English translation of Korean original
• Samsung SDI Manufacturer Profile — BESS Manufacturers directory page