Shares of Samsung SDI surged 10.3% to KRW 395,500 after the Korean battery maker posted a surprise return to profitability, ending nearly two years of losses. The question now: whether booming demand for data-center batteries can carry a company still nursing a weak electric-vehicle business.
Seven Quarters of Red Ink Ended in a Single Stroke
Samsung SDI posted operating profit of KRW 203.8 billion ($140 million) in Q2, reversing an operating loss of KRW 290.2 billion a year earlier.
The result significantly exceeded market expectations, with analysts predicting the company would remain in the red until the second half of the year.
Revenue rose 18.5% year-on-year to KRW 3.77 trillion, while net profit reached KRW 471.6 billion, up 740.5% from the previous quarter. For shareholders, the beat signals that management's cost-cutting and product-mix shift are working faster than the Street assumed.
AI Data Centers Are Replacing EVs as the Growth Engine
Backup-power and uninterruptible-power-supply battery sales are projected to grow more than 70% year-over-year in 2026, reflecting the rapid expansion of AI data center infrastructure and grid storage applications.
Rival LG Energy Solution also swung to an operating profit in Q2, underscoring the growing importance of energy storage systems as AI investment offsets sluggish EV demand. Samsung SDI is essentially riding one of the few segments in the battery industry where customers are scrambling for supply rather than negotiating discounts.
The EV Cloud Hasn't Lifted
The company's performance reflects broader industry dynamics, with growing demand for energy storage and AI-related batteries offsetting weakness in certain electric vehicle markets.
Samsung SDI did secure a seven-year EV battery supply deal with Hyundai Motor starting in 2026 , and European EV demand is expected to rise on expanded incentives and the increasing total cost of owning gasoline cars. Still, EV batteries remain a drag — the turnaround hinges on whether AI-related revenue can compensate long enough for the auto side to recover.
The Next Chapter: Solid-State and Robotics
Samsung SDI plans to begin mass production of all-solid-state batteries in the second half of 2027 and expand into robotics, humanoids, and industrial automation.
The global robot battery market was just 0.03 GWh in 2025, but Samsung SDI expects it to reach roughly 1.4 GWh by 2030. These are early bets that won't move the revenue needle soon, but they signal management is positioning for a world where batteries power far more than cars and phones. The 10% pop reflects justified relief — sustaining it requires proving AI battery demand isn't a one-quarter phenomenon.