SMA Solar (S92) Q2 2025 earnings summary

Executive summary

• H1 2025 sales declined to €684.9–685 million from €759 million year-over-year, with Large Scale & Project Solutions growing and Home & Business Solutions (HBS) declining sharply due to lower demand and price pressure.

• EBITDA dropped to €9–9.1 million (1.3% margin) from €80.6–81 million (10.6%) in H1 2024, impacted by significant one-time effects including inventory write-offs and provisions.

• Free cash flow improved to €66 million from -€203 million year-over-year, driven by net working capital reduction.

• Order backlog decreased to €1,161–1,161.4 million, reflecting softer demand in HBS and the US.

• Restructuring and transformation programs are underway, targeting €150–200 million EBIT improvement, with more than half expected by 2025.

Financial highlights

• EBITDA margin fell to 1.3% from 10.6% year-over-year; gross margin declined to 18.2% from 26.0% due to product mix and inventory write-downs.

• Net cash increased to €135 million at H1 end, mainly from working capital improvements; financial liabilities halved to €70 million.

• Net working capital reduced to €283 million (19.4% of sales LTM), below the targeted 23–27% range.

• Cash flow from operating activities was €90 million, a strong turnaround from -€174 million last year.

• Investments rose to €80.1 million, mainly for new production capacity.

Outlook and guidance

• 2025 sales guidance narrowed to €1,500–1,550 million; EBITDA expected at €70–80 million, with sales and EBITDA at the lower end due to soft HBS demand and macro uncertainty.

• Large Scale & Project Solutions sales expected slightly above 2024; HBS sales to decline significantly.

• Capital expenditure for 2025 forecast at ~€115 million, focused on new products and digital solutions.

• Further write-downs possible if HBS business deteriorates.

• Ongoing restructuring and cost optimization measures to support profitability.