SMA Solar (S92) Q3 2024 earnings summary

Executive summary

• Group sales for the first nine months of 2024 declined to €1,059.7 million from €1,337 million year-over-year, mainly due to weakness in Home and C&I segments, while Large Scale & Project Solutions showed strong growth.

• EBITDA dropped to €83.5 million from €231 million, impacted by product mix, lower production utilization, and inflationary pressures.

• Free cash flow was negative at €220 million, primarily due to increased net working capital.

• Net income fell sharply to €34.7 million from €180.4 million year-over-year, with EPS at €1.00 versus €5.20.

• A restructuring and transformation program was launched, targeting €150–200 million in cost savings and up to 1,100 FTE reductions globally.

Financial highlights

• EBITDA margin fell to 7.9% from 17% year-over-year, with last year benefiting from a favorable product mix and lower costs.

• EBIT for Home and C&I segments was significantly negative, while Large Scale EBIT rose to €154.4 million from €47 million, with a margin increase to 20.2%.

• Net cash declined from €283 million at 2023 year-end to €45 million, mainly due to net working capital buildup.

• Gross cash flow was €53 million, down from €253 million year-over-year.

• Capital expenditure rose to €81.5 million (7.7% of sales), up from €58 million (4.3%).

Outlook and guidance

• Full-year 2024 sales guidance revised down to €1,450–1,500 million.

• Adjusted 2024 EBITDA after restructuring is expected between -€20 million and €20 million.

• No significant order intake recovery in Home and C&I expected before H2 2025.

• Management anticipates positive cash flow in H2 2025, with restructuring cash outflows mainly in H1.

• Significant job cuts of up to 1,100 positions worldwide by end of 2025.