SMA headquarters in Niestetal, Germany
Image: SMA Solar Technology
SMA Solar Technology has reported a sharp decline in revenue and profit for the first three quarters of 2024. Revenue fell 26% to €1.06 billion, with a more significant 77% decline in earnings before interest and taxes (EBIT ), of €201.6 billion. million last year to €46 million. According to the company, this decline is due to both lower sales volume and rising costs.
Weak results in the residential and commercial sectors were partially offset by the large-scale and project solutions segment, which showed robust growth, according to the company.
SMA started restructuring in September, cutting up to 1,100 jobs – mainly in Germany – to adapt to market pressures. According to the company, these layoffs resulted in one-off costs of between €100 million and €140 million, which affected overall profitability.
The company’s revised forecast assumes sales of €1.45 billion to €1.5 billion for 2024.
The company’s home solutions segment posted an EBIT loss of €46.6 million, compared to a positive €136.9 million last year.
The Commercial and Industrial Solutions division reported negative EBIT of €77.2 million, down from €15.8 million.
However, the large-scale and project solutions segment posted an EBIT increase of 226% to €154.4 million, up from €47.3 million.
CEO Jürgen Reinert recorded robust gains in large-scale projects, in contrast to the challenging environment for the residential and commercial markets.
SMA said the restructuring aims to position the company as a global systems provider, with cost savings of €150 million to €200 million expected, pending approval from employee representatives for final personnel measures.
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