SMA Solar expects to report an 88% YoY drop in H1 2025 EBITDA, due to €46.8 million in inventory impairment charges
Q2 EBITDA and EBIT fall sharply, significantly missing expectations amid ongoing market challenges
It expects over a 10% YoY decline in H1 2025 sales, with EBIT turning negative from the previous year’s €56.2 million
Germany-headquartered solar inverter supplier SMA Solar expects an 88% drop in H1 2025 EBITDA to €9.1 million ($10.6 million). It attributes the decline to €46.8 million ($55 million) in inventory impairment charges within its Home & Business Solutions division.
Sharing its preliminary financial results for the period, SMA expects its Q2 2025 EBITDA to be -€15.5 million (-$18 million), below the consensus of -€4.0 million. EBIT for the quarter is also expected to be -€30.4 million (-$35.6 million) as against the previously expected -€19 million.
Overall, the company projects sales of €684.9 million ($801.5 million) for H1 2025, down by over 10% year-over-year (YoY). Its EBIT for the period will be in the negative at €19 million ($22 million), compared to last year’s €56.2 million (see ‘Challenging Market Conditions’ Spoil H1 2024 For SMA Solar Technology).
SMA’s business, especially in the home solutions and commercial and industrial (C&I) segments, has been suffering owing to high inventories with its distributors and installers since 2024. It attributes the decline in demand in these segments to falling electricity prices and surplus production capacity among Chinese manufacturers.
Large Scale & Project Solutions business has been driving business for the German company. It has been directing capacity into this segment to process the high order backlog. As part of its restructuring and transformation program, SMA aims to achieve cost savings of €150 million to €200 million (see SMA Solar Announces Company-Wide Restructuring & Job Cuts).
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