Samsung Biologics reported second-quarter revenue in the 1.3 trillion won range this year, a 30% increase from the same period last year. The biopharmaceutical contract manufacturer delivered strong financial results despite a prolonged labor dispute and the first strike in its corporate history. With a finalized labor agreement still pending, management and union representatives are set to resume negotiations this Friday.
According to regulatory filings released on July 23, Samsung Biologics posted second-quarter revenue of 1.3209 trillion won and an operating profit of 586.4 billion won. Compared to the second quarter of last year—when the company reported revenue of 1.0142 trillion won and an operating profit of 477.2 billion won—revenue rose by 30% (306.7 billion won) while operating profit climbed 23% (109.2 billion won).
The company attributed its steady growth to full utilization across Plants 1 through 4 and favorable exchange rates. Operating margin for the second quarter reached 44.4%, down slightly from 47.1% a year earlier. Samsung Biologics noted that the slight margin drop reflected upfront costs incurred ahead of full-scale commercial production at its Plant 5 and its facility in Rockville, Maryland.
Business development momentum also remained solid. Cumulative orders since the company's founding reached 115 contract manufacturing organization (CMO) deals and 176 contract development organization (CDO) deals, representing a cumulative contract value of $21.7 billion. As of the end of the first quarter, the company's order backlog stood at $10.272 billion (15.17 trillion won) in minimum purchase commitments, rising to $13.106 billion (19.36 trillion won) based on expected expansion options. Driven by ongoing facility expansions and favorable exchange rates, the company expects to reach the upper end of its 2026 annual revenue growth guidance of 15% to 20%.
Stalled labor negotiations set to resume
Despite strong financial performance, ongoing labor-management conflict remains a key source of operational uncertainty. The dispute escalated after negotiations for the 2026 wage and collective bargaining agreement, which began in December last year, broke down earlier this year.
The conflict led to a partial strike from April 28 to 30, followed by a full five-day strike from May 1 to 5 involving approximately 2,800 workers—marking the first strike since Samsung Biologics was established. While the company initially estimated that the partial strike could cause losses of up to 150 billion won, it noted in its latest earnings report that the disruption was limited to minor batch production delays and did not disclose a finalized loss figure.
Wage and bonus demands remain the primary sticking point. The union initially sought a 14.3% base pay increase, a flat 3.5 million won raise, a 30 million won bonus, and an overall performance incentive (OPI) pool funded by 20% of operating profit. Management countered with a 6.2% wage increase, a bonus of roughly 6 million won, and an OPI pool funded by 10% of operating profit.
The union recently adjusted its position, lowering its wage demands to a 6.5% base increase, a flat 3 million won raise, and an average 3% performance-based increase companywide. However, it maintains demands for expanded bonuses, company stock options, and enhanced job security provisions, including requiring prior union consent for voluntary retirement programs. It has also adjusted clauses regarding management interference, such as requiring union approval for staffing assignments and corporate restructuring.
The two sides are scheduled to resume talks on July 24 to discuss the union's latest compromise proposal.
"Labor-management negotiations are scheduled to take place this Friday," said a Samsung Biologics official, adding that specific details of the discussions could not yet be disclosed.
Park Jae-sung, chair of the Samsung Biologics Coexistence Union, confirmed that working-level representatives from both sides will attend the meeting, noting that management had not yet presented a formal position on the union's mediation proposal.
