Samsung SDI Co. reported a smaller-than-expected first-quarter loss, sending its shares higher as investors cheered resilience in the battery maker's European business. The South Korean company benefited from strong demand for energy storage systems and electric vehicles across Europe, which helped offset weakness in the US market.

The better-than-expected results extended a recent rally in Samsung SDI shares, reflecting investor confidence in the company's ability to navigate shifting global EV markets. While US EV incentives have dwindled, European demand for battery storage and electric cars has remained robust, providing a crucial revenue stream for the manufacturer.

The performance highlights how Samsung SDI's diversified customer base across regions has become a strategic advantage. European automakers' continued push toward electrification despite broader market headwinds has created steady demand for the company's battery technology, supporting margins during a challenging period for the industry.