- SMA Solar has offered an upward revision of its financials for the rest of the year
- While the Q3/2023 and 9M/2023 financial guidance is significantly higher than the last year, that for FY 2023 has been revised upwards
- The management cites positive revenue and earnings development for the guidance revision for this year
SMA Solar Technology AG, the German solar PV inverter manufacturer, has raised its financial guidance for this year citing ‘a very positive revenue and earnings development’ in Q3/2023.
It is the large scale and project solutions, and commercial & industrial solutions segments where the management sees strong growth to make this change.
For Q3/2023, SMA has guided for sales to range within €555 million and €565 million, and EBITDA between €105 million and €110 million, compared with €252 million and €34 million in the previous year, respectively.
Its consolidated revenues guidance for 9M/2023 is between €1.335 billion and €1.345 billion and an EBITDA of €230 million and €235 million. During 9M/2023, these parameters were reported to have brought in €724 million in revenues and €50 million in EBITDA.
Factoring in the ‘very positive development’ in Q3, SMA now forecasts 2023 consolidated sales to range within €1.8 billion to €1.9 billion, while EBITDA will grow to between €285 million and €325 million. This is up from the previous guidance of €1.7 billion and €1.8 billion for sales and within €230 million and €270 million for EBITDA (see Home Solutions Lead Business For SMA Solar).
TD Cowen’s Jeffrey Osborne does the math to peg SMA’s Q4/2023 revenues between €461 million and €561 million, while the EBITDA should fall in the range of €52 million and €92 million.
Osborne believes the revised guidance should mean the manufacturer’s Q3 product backlog is likely to decline QoQ since the management previously announced that it anticipates residential and C&I customers are placing orders in September and October for 2024.
Cowen analysts say they await greater visibility on the company’s ability to replenish converted backlog for 2024 and 2025. Things will be clearer once SMA publishes its quarterly statement for 9M/2023 on November 9, 2023.
