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SMA Solar Technology AG has presented preliminary, non-audited figures for 2024 as a whole. On a year-over-year basis, the SMA Group’s sales fell by 19.7% to €1,530.0 million (2023: €1,904.1 million). EBITDA amounted to -€16.0 million and was thus significantly below the previous year’s level (2023: €311.0 million). This corresponds to an EBITDA margin of -1.0% (2023: 16.3%). The reasons for this development were, among other things, lower fixed cost degression due to low sales in the segments Home Solutions and Commercial & Industrial Solutions, increased costs, and impairments on inventories as well as provisions associated with the restructuring and transformation program. The Group’s earnings before interest and taxes (EBIT) fell from €269.5 million in the 2023 fiscal year to -€93.1 million (EBIT margin in 2024: -6.1%; 2023: 14.2%). Inverter output sold in 2024 as a whole was 19.5 GW (2023: 20.5 GW). Due to the lower demand situation combined with high inventories at distributors, the sales in the segments Home Solutions with €170.3 million (2023: €580.2 million) and Commercial & Industrial Solutions with €183.8 million (2023: €478.9 million) were considerably lower than the previous year. The EBIT in the Home Solutions segment deteriorated to -€150.7 million (2023: €148.0 million) due to the sales decline, increased costs and impairments on inventories (€44.6 million), capitalized development projects (€14.5 million) and a production line (€4.2 million), as well as provisions for purchase commitments (€10.2 million). The EBIT in the Commercial & Industrial Solutions segment deteriorated to -€164.3 million (2023: €22.7 million) due to the sales decline, higher costs, impairments on inventories (€49.5 million) and capitalized development projects (€7.9 million), as well as provisions for purchase commitments (€5.4 million). Sales in the Large Scale & Project Solutions segment were up considerably at €1,175.8 billion (2023: €845.0 million) and achieved an EBIT of €227.0 million (2023: €103.8 million). The reasons for the positive earnings development were the high sales level combined with a reduction in fixed costs, a profitable product mix and the sale of a battery storage project by SMA Altenso GmbH. The impairments on inventories (€19.3 million) had a negative impact on the EBIT. As expected, the order backlog with €1,355.6 million resulting from the challenging situation in the segments Home Solutions and Commercial & Industrial Solutions was below the previous year’s figure of €1,705.0 million. Of this amount, €1,033.3 million was attributable to product business (December 31, 2023: €1,329.8 million). The net income fell to -€117.7 million (2023: €225.7 million) and earnings per share decreased accordingly to -€3.39 (2023: €6.50). At €84.2 million, net cash was considerably lower than in the previous year (December 31, 2023: €283.3 million). The preliminary figures are still subject to the auditor’s review. Consequent implementation of the restructuring and transformation program Since September 2024, SMA has focused on cost reduction and corporate streamlining. In early 2025, Home Solutions and C&I Solutions will merge into “Home & Business Solutions,” alongside “Large Scale & Project Solutions.” SMA will exit low-growth markets, streamline operations, and implement a voluntary termination program. SMA will exit low-growth markets and has finalized a voluntary termination program in Germany, with implementation starting in February. Olaf Heyden, appointed Chief Transformation Officer (CTrO) on 14 February 2025, also serves as Chief Operating Officer (COO), overseeing Operations, Human Resources, and Digitalization. SMA CEO Jürgen Reinert stated that despite strong performance in Large Scale & Project Solutions, 2024 was challenging due to market overcapacity and declining demand in Home and C&I Solutions. Cost-cutting and sales initiatives began in mid-2024, followed by a restructuring program in September. SMA aims to enhance efficiency and save €150–€200 million from 2026. SMA CFO Barbara Gregor stated that the restructuring program aims to drive future profitability, with initial positive effects expected in 2025. The Home & Business Solutions (HBS) division will launch in early 2025, maintaining stable sales but remaining below break-even. Large Scale & Project Solutions will see slight sales growth, though earnings may decline due to higher costs and a shifting product mix. Against this backdrop, the Managing Board expects the SMA Group to generate sales of between €1,500 million and €1,650 million and EBITDA of between €70 million and €110 million in the current fiscal year 2025. |
