SMA Solar (S92) Q1 2025 earnings summary

Executive summary

• Q1 2025 group sales declined to €327.7–328 million from €362 million in Q1 2024, mainly due to weak Home and C&I segments, while Large Scale & Project Solutions grew 22.2%.

• EBITDA dropped to €24.6–25 million from €50 million, reflecting lower sales and segment mix.

• Free cash flow turned positive at €96 million, driven by net working capital reduction.

• Order backlog remained robust at €1.29–1.3 billion, with Large Scale segment contributing the majority.

• Restructuring and transformation programs underway, targeting cost reductions and efficiency gains.

Financial highlights

• EBITDA margin was 7.5–8% in Q1 2025, down from 14% in Q1 2024, with a €10 million positive one-time effect from a claim settlement.

• EBIT margin dropped to 3.5–4% from 10.6–11% in Q1 2024.

• Net cash increased to €176.5–177 million at quarter-end, up from €84.2 million at year-end 2024.

• Gross cash flow was €20.8–21 million, down from €51–51.1 million in Q1 2024.

• Earnings per share fell to €0.16 from €0.82.

Outlook and guidance

• 2025 sales expected between €1,500–1,650 million, with EBITDA of €70–110 million; results expected in the lower third of guidance due to macroeconomic and tariff uncertainties.

• EBIT guidance for 2025 is €0–50 million, with capital expenditure around €115 million.

• Restructuring program targets €150–200 million EBIT improvement, with 40% of savings expected in 2025.

• Cautious outlook due to macroeconomic deterioration and tariff policy uncertainties, especially impacting large scale order intake in the U.S.

• Large Scale & Project Solutions to see slight sales growth; Home & Business Solutions to recover slightly.