• Sales amount to EUR 759.3 million compared to EUR 778.9 million in the first half of 2023
• EBITDA of €80.6 million (H1 2023: €125.3 million)
• Order backlog amounts to €1.35 billion (June 30, 2023: €2.45 ​​billion)
• Equity ratio increased slightly to 42.6% (December 31, 2023: 42.3%)
• Management Board confirms adjusted forecast for 2024 from June 18: Sales between EUR 1,550 and 1,700 million; EBITDA between EUR 80 and 130 million

As expected, SMA Solar Technology AG’s sales and earnings fell year-on-year in the first half of 2024. Group sales reached EUR 759.3 million, slightly below the previous year (H1 2023: EUR 778.9 million).

Sales in the Home Solutions and Commercial & Industrial Solutions segments were significantly influenced by the persistently high inventory levels at distributors and installers as well as an overall very challenging market environment. Against this background, sales in the Home Solutions segment amounted to €109.9 million (H1 2023: €327.3 million) and in the Commercial & Industrial Solutions segment to €113.6 million, after €194.2 million in the first half of 2023. The Large Scale & Project Solutions segment recorded significant sales growth as planned, reaching €535.8 million after €257.4 million in the first half of 2023.

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 80.6 million (including EUR 19.1 million from the sale of shares in elexon GmbH in Q1 2024), compared to EUR 125.3 million in the first half of 2023. This corresponds to an EBITDA margin of 10.6% (H1 2023: 16.1%). The main reasons for the change compared to the previous year were the reduced sales volumes, the change in the product mix and an increase in the Group’s cost base. Earnings before interest and taxes (EBIT) amounted to EUR 56.2 million compared to EUR 106.1 million in the same period last year. This corresponds to an EBIT margin of 7.4% (H1 2023: 13.6%).

The EBIT of the Home Solutions and Commercial & Industrial Solutions segments was below the previous year’s figure due to low sales, reduced capacity utilization and the associated undercoverage of fixed costs. Home: € -21.6 million (H1 2023: € 93.4 million); Commercial & Industrial Solutions: € -45.2 million (H1 2023: € 6.7 million). The Large Scale & Project Solutions segment was able to significantly improve its profitability compared to the same period last year thanks to high sales and the associated fixed cost degression as well as a profitable product mix, achieving an EBIT of € 100.5 million (H1 2023: € 8.8 million).

“The global PV market has developed very unevenly this year. Order intake in the Home and Commercial & Industrial segments continues to be affected by the high inventory levels of distributors and installers. In addition, lower electricity prices are leading to postponed investments and cautious final demand in many countries, as well as overcapacities at Chinese manufacturers, which are putting additional pressure on the market. Although prices for PV systems have already fallen, customers are still expecting further price reductions. Our Large Scale & Project Solutions segment, which continues to show above-average operational development, is not affected by this. In this challenging environment, it is once again clear that our diversified business model with three segments is a major advantage for SMA and makes us more flexible than our competitors,” says Jürgen Reinert, CEO of SMA. “One example is production, where we are currently directing capacity to the Large Scale segment in order to be able to process the high order backlog as planned.”

“Despite the volatile market, the first half of 2024 showed solid development. In the Large Scale & Project Solutions segment, we were able to achieve significant growth in both sales and earnings in the second quarter. In view of the delayed market recovery in the Home and C&I segments, we have expanded our sales activities to additional product groups and countries in recent weeks. In addition, we have implemented a number of measures to adapt the cost structure and working capital to the reduced sales level in the Group and to stabilize cash flow,” adds Barbara Gregor, CFO at SMA.

Consolidated net profit amounted to €44.1 million (H1 2023: €103.5 million). Earnings per share thus increased to €1.27 (H1 2023: €2.98).

As a result of the higher net working capital, the SMA Group’s free cash flow fell to EUR -202.6 million from EUR 80.6 million in the previous year. At EUR 65.7 million as of June 30, 2024, net cash was below the level at the end of the previous year (December 31, 2023: EUR 283.3 million). With an equity ratio of 42.6 percent (December 31, 2023: 42.3%), SMA continues to have a good equity base.

The order backlog as of June 30, 2024, amounted to €1,348.6 million (June 30, 2023: €2,453.7 million). Three quarters of this, €988.0 million, is attributable to the product business (June 30, 2023: €2,075.7 million).

The SMA Managing Board confirms its sales and earnings forecast for the 2024 fiscal year, which was adjusted on June 18, 2024. This forecast envisages sales of between EUR 1,550 million and EUR 1,700 million (2023: EUR 1,904.1 million) and EBITDA of between EUR 80 million and EUR 130 million (2023: EUR 311 million).

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