SK On Q2 Posts Record Quarterly Profit Since Listing
N.R. Finch
SK On posted KRW 821.8 billion in operating profit in Q2 — a record since its 2021 spinoff; all three Korean battery makers turned profitable the same quarter, making the second half the real test of sustainability.
Where did KRW 821.8 billion in profit come from?
SK On reported Q2 revenue of roughly KRW 2.95 trillion, up about 40% year-on-year. Operating profit swung from a loss a year ago to KRW 821.8 billion.
The company attributed the turnaround to three factors: a one-time customer compensation payment, rising sales in Asia, and lower production costs. This means → profit was not purely volume-driven — the one-time payment inflated the base.
SK On also benefited from larger advanced-manufacturing tax credits under the U.S. Inflation Reduction Act (IRA), though it did not disclose the exact amount.
What happens after the Ford split?
SK On's U.S. joint venture with Ford, BlueOval SK, completed its dissolution in Q2. The Tennessee plant is now operated by SK On alone.
In plain terms = they used to share a factory with Ford; now SK On owns the capacity and the decisions outright.
Management expects fixed costs to fall further in H2 as it reshuffles its product mix and production footprint. This means → the post-breakup cost structure is SK On's core bet on second-half margins.
All three Korean battery giants profitable — what does that signal?
It is not just SK On. LG Energy Solution posted Q2 operating profit of KRW 113.3 billion; Samsung SDI swung to profit without relying on U.S. subsidies — its first positive quarter in nearly seven quarters, since Q3 2024.
This reflects an industry-level floor signal: three Korean battery majors all profitable in the same quarter is not a single-company story.
But the quality varies. SK On's profit includes a one-time payout; LG Energy Solution's figure is far smaller; Samsung SDI only just broke even — the recovery is uneven.
What to watch in the second half?
SK On plans a two-track push: expand EV battery sales while accelerating orders for energy-storage systems (ESS) — large-scale batteries for AI data centers and utilities.
In plain terms = one leg is the traditional car-battery business; the other is building giant "power banks" for data centers and power grids.
Whether the Korean battery trio can turn a one-quarter rebound into a sustained recovery is the market's key validation point for H2 — strip out the one-time income, and the remaining profit is the real measure.
Content is for reference only, not financial advice.