SMA Solar (S92) Q4 2024 earnings summary

Executive summary

• Group sales declined to EUR 1.5 billion in 2024 from EUR 1.9 billion in 2023, mainly due to weak Home and C&I segments, while Large Scale performed strongly.

• EBITDA dropped to EUR -16 million from EUR 311 million, impacted by lower sales, increased costs, significant impairments, restructuring expenses, and one-time effects.

• Free cash flow was negative at EUR -184 million, driven by higher net working capital, reduced sales, and increased inventories.

• Order backlog decreased to EUR 1,356 million from EUR 1,705 million, with Large Scale robust and Home/C&I segments soft.

• Restructuring and transformation programs are underway, targeting EUR 150–200 million EBIT improvement, with 1,100 FTE reductions and organizational consolidation.

Financial highlights

• Home segment revenue fell 71% to EUR 170 million; C&I dropped to EUR 184 million; Large Scale grew to EUR 1.18 billion, up 8% year-over-year.

• EBITDA margin was -1% (2023: 16%); EBIT margin for the group was -6% (2023: +14%).

• Net cash decreased to EUR 84 million from EUR 283 million, mainly due to net working capital build-up.

• Shareholders' equity declined to EUR 553 million from EUR 686 million, reflecting the net loss and a 19% year-over-year decrease.

• Inventory devaluations of EUR 113 million, severance provisions of EUR 33 million, and purchase obligations of EUR 16 million weighed on profitability.

Outlook and guidance

• 2025 group sales expected between EUR 1.5–1.65 billion, with Large Scale slightly above 2024 and Home & Business Solutions also slightly higher.

• Group EBITDA forecasted at EUR 70–110 million, with a single-digit EBITDA margin.

• Home & Business Solutions to remain loss-making but improve; Large Scale earnings to be slightly below 2024 due to higher costs and product mix.

• Restructuring and transformation program to drive cost efficiency and profitability, with first positive effects in 2025.