Samsung SDI Co. swung to an operating loss in the third quarter as sluggish electric vehicle demand and U.S. tariff policies undermined its battery business.
The South Korean company reported a 591.3 billion won ($413 million) operating loss for the three months ended September, compared with a 129.9 billion won profit a year earlier. Revenue dropped 22.5% to 3.05 trillion won ($2.13 billion).
Net profit tumbled 97.5% to just 5.7 billion won ($4 million), supported only by one-time gains from exiting its polarizer film operations.
The battery division, which accounts for over 90% of sales, posted a 630.1 billion won ($440 million) operating loss. EV battery shipments weakened while Washington’s tariffs pressured energy storage system margins. The deficit widened from the previous quarter’s 398 billion won loss.
Samsung SDI attributed the deterioration to consumers shifting toward cheaper EV models and tariff-related headwinds. The firm landed 110 gigawatt-hours in new supply contracts during the period, though profitability and timing details weren’t disclosed.
Electronic materials provided limited relief, with operating profit rising to 38.8 billion won ($27 million) on display component sales.
The company expects narrower losses in the current quarter, projecting recovery in European EV sales and U.S. energy storage demand. Shares climbed 9.2% Tuesday following the earnings release as investors wagered on an eventual turnaround.
