SMA Group kicks off 2025 fiscal year in line with expectations
Niestetal, 08.05.2025 (PresseBox) -
- As expected, sales of €327.7million below the previous year (Q12024: €361.8million)
- EBITDA of €24.6million[1](Q12024: €49.9million[2])
- Order backlog as of March 31, 2025, at €1.3billion (March 31,2024: €1.5billion)
- Due to the deterioration of the macroeconomic environment and increased uncertainties caused by volatile tariff policies, the Managing Board expects sales and EBITDA to be in the lower third of the guidance range of €1,500million to €1,650million and €70million to €110million
As expected, sales in the Home Solutions and Commercial & Industrial Solutions segments (merged as of May 1, 2025 into the Home & Business Solutions division) in the first quarter of 2025 were significantly influenced by a normalized demand situation, coupled with still partially high inventory levels at distributors and installers. Against this backdrop, sales in the Home Solutions segment amounted to €21.9million (Q12024: €62.6million) and in the Commercial & Industrial Solutions segment to €26.3million, after €70.5million in the first quarter of 2024. As planned, the Large Scale & Project Solutions segment posted significant sales growth from €228.7million in the same quarter of the previous year to €279.5million in the first quarter of 2025.
The group’s EBITDA amounted to €24.6million1, compared to €49.9million2in the same quarter of the previous year. This corresponds to an EBITDA margin of 7.5% (Q12024: 13.8%). The main reasons for the change compared with the previous year were lower sales and the resulting lower fixed cost degression in the Home Solutions and Commercial & Industrial Solutions segments. EBIT amounted to €11.4million1(Q12024: €38.2million2). This corresponds to an EBIT margin of 3.5% (Q12024: 10.6%).
The Large Scale & Project Solutions segment further improved its profitability compared with the same quarter of the previous year, thanks to the high level of sales and the associated increase in productivity, achieving EBIT of €50.3million (Q12024: €41.3million). EBIT in the Home Solutions and Commercial & Industrial Solutions segments decreased due to the lower level of sales. The Home segment reached –€19.6million (Q12024: –€3.6million), the C&I segment achieved –€26.4million (Q12024: –€18.2million).
“We saw a slight improvement in order intake in the Home Solutions and Commercial & Industrial solutions segments in the first quarter of 2025,” said Jürgen Reinert, CEO of SMA. “Looking ahead to the coming quarters, we expect order intake to be less volatile overall due to the further normalization of inventories in distribution within these two segments, thereby returning to normal levels compared to the last two fiscal years. The large-scale PV power plant segment also continued to perform well, with order intake remaining roughly at the high level of the previous year’s quarter. However, the unclear U.S. tariff policy and its potential consequences for the global solar industry, for example through investment postponements, remain a major source of uncertainty.”
“Sales and earnings in the first quarter of 2025 are in line with our expectations,” added Kaveh Rouhi, CFO of SMA. “The Large Scale & Project Solutions segments continued its successful sales and earnings performance. As planned, the operating performance of the Home Solutions and Commercial & Industrial Solutions segments was lower than in the same quarter of the previous year. In addition, we are consistently working on implementing our restructuring and transformation program in order to gradually achieve the planned improvement in earnings.”
Net income amounted to €5.5million (Q12024: €28.5million). Earnings per share thus amounted to €0.16 (Q12024: €0.82).
The SMA Group’s free cash flow significantly rose to €96.1million after –€45.7million in the previous year. Net cash also improved significantly due to the early successes of the restructuring program and, at €176.5million as of March 31, 2025, was clearly above the level at the end of the year (December 31, 2024: €84.2million). With an equity ratio of 34.0% (December 31, 2024: 35.9%), SMA continues to have a solid equity capital base.
The order backlog was €1,293.9million as of March 31, 2025 (March 31,2024: €1,467.8million). At €972.1million, more than three-quarters of this is attributable to product business (March 31, 2024: €1,102.3million). Consequently, the product-related order backlog decreased only marginally compared with December 31, 2024 (€1,033.3million).
Due to the deterioration of the macroeconomic environment and increased uncertainties caused by volatile tariff policies, along with their potential direct and indirect impacts on SMA's business, the Managing Board expects sales and EBITDA to be in the lower third of the guidance range of €1,500million to €1,650million and €70million to €110million.
Additional Information
The quarterly statement for January to March 2025 can be found online atwww.sma.de/en/investor-relations/publications. SMA will discuss its business development during a conference call for analysts and investors at 9:30a.m. on May 8, 2025. An overview of analyst estimates (consensus) is available atAnalyst Coverage & Consensus | SMA Solar.
Disclaimer:
This corporate news serves only as information and does not constitute an offer or invitation to subscribe for, acquire, hold or sell any securities of SMA Solar Technology AG (the “Company”) or any present or future subsidiary of the Company (together with the Company, the “SMA Group”) nor should it form the basis of, or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any member of the SMA Group or commitment whatsoever.
This press release can contain future-oriented statements. Future-oriented statements are statements which do not describe facts of the past. They also include statements about our assumptions and expectations. These statements are based on plans, estimations and forecasts which the Managing Board of SMA Solar Technology AG (SMA or company) has available at this time. Future-oriented statements are therefore only valid on the day on which they are made. Future-oriented statements by nature contain risks and elements of uncertainty. Various known and unknown risks, uncertainties and other factors can lead to considerable differences between the actual results, the financial position, the development or the performance of the corporation and the estimates given here. These factors include those which SMA has discussed in published reports. These reports are available on the SMA website at www.SMA.de. The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.
[1]Including about €10 million from a compensation payment related to a claim settlement (reported in Corporate segment).
[2]Including €19 million from the sale of shares in elexon GmbH (reported in Corporate segment).
