SMA Solar Technology (ETR:S92) management outlined a year of steady revenue but sharply divergent performance between its Large Scale and Home and Business Solutions (HBS) divisions, alongside a major cash-flow turnaround and an outlook for 2026 shaped by tariff, currency, and policy uncertainty.
Full-year 2025 results: stable sales, weaker reported profitability
Chief Financial Officer Kaveh Rouhi said group sales for 2025 were EUR 1.5 billion, “nearly in line with last year.” Growth in the Large Scale and Project Solutions division offset a significant decline in Home and Business Solutions.
Operating group EBITDA before one-offs was EUR 107 million (down from EUR 148 million in 2024), with the Large Scale division’s operating performance more than offsetting negative operating results in HBS.
Management also highlighted headwinds not included in the company’s one-off adjustments. Rouhi said currency translation and tariffs negatively impacted 2025 results by almost EUR 50 million. He added that competitive pricing pressure in HBS drove “mid double-digit million” margin erosion, though he said restructuring and savings efforts in that division “overcompensated” for the effect.
Divisional performance: Large Scale grew while HBS contracted
By geography, the Americas represented 42% of revenue (up from 40% in 2024), supported by another strong year for Large Scale in the U.S. EMEA remained the largest region at 46% (down from 48%), with the decline linked to weaker HBS sales, which are concentrated in EMEA. APAC’s share was stable at 12%. The main markets in 2025 were the U.S., Germany, Australia, and the U.K.
- Home and Business Solutions (HBS): Sales fell 30% year over year to EUR 247 million from EUR 354 million. Rouhi said lower demand and high competitive and price pressure weighed on results, with Germany a key driver as the home segment installation rate was “about 30% lower than in 2024.” Reported EBIT was -EUR 376 million, compared with -EUR 315 million in 2024. Management cited one-offs including roughly EUR 123 million of inventory write-offs and scrapping, EUR 36 million in provisions for purchase commitments, and EUR 67 million of impairments on R&D and fixed assets.
- Large Scale and Project Solutions: Sales rose to EUR 1.3 billion from EUR 1.2 billion. EBIT was EUR 211 million, down from EUR 227 million in 2024. Rouhi said results were affected by U.S. dollar depreciation versus 2024 and tariffs, as well as a year-end update to warranty cost parameters that increased provisions. He also noted a EUR 7.5 million write-down of open receivables in the U.S. in the first half. These negatives were partly offset by the reversal of provisions tied to the settlement of an O&M contract in North America in the mid-single-digit million-euro range.
At the group level, reported EBIT margin was -12% versus 6% in 2024, while operating EBIT margin was 3.6% in 2025 compared with 6.3% in 2024. Depreciation and amortization rose to EUR 123 million, driven by about EUR 71 million of one-time impairments on R&D assets and fixed assets.
Cash flow and balance sheet: working-capital reduction drives turnaround
Despite net income of -EUR 181 million, Rouhi emphasized a strong cash performance, with free cash flow of EUR 110 million, compared with -EUR 184 million in the prior year. Cash flow from operating activities improved to EUR 156 million from -EUR 130 million, which management attributed to net working capital optimization and operating profits, while many one-time items were “nearly all non-cash.”
Net working capital declined to EUR 230 million from EUR 473 million, lowering the net working capital ratio to 14%. Inventories fell to EUR 357 million from EUR 564 million, driven mainly by write-downs and scrappage and by an operational reduction of physical inventories in HBS of about EUR 100 million, partly offset by about EUR 50 million of inventory build linked to Large Scale projects in the pipeline.
Net cash more than doubled to EUR 176 million at year-end, and total cash was EUR 222 million. The company continued to use its revolving credit facility, with EUR 45 million utilized at year-end; Rouhi said SMA reduced the facility position by EUR 100 million over the year on the back of cash generation. Equity fell to EUR 366 million, resulting in an equity ratio of 28%.
Order backlog: visibility supported by Large Scale demand
Total order backlog was EUR 1.3 billion at the end of December 2025, broadly in line with the end of 2024. Product order backlog stood at EUR 1.0 billion.
Large Scale product order backlog remained high at EUR 975 million, which management said supports visibility for 2026 revenues in the division. HBS backlog was EUR 43 million. In the fourth quarter, order intake for Large Scale was EUR 480 million and HBS was EUR 66 million.
Strategy updates and 2026 outlook: transformation progress and a wider guidance range
Rouhi said SMA is on track with its cost-saving targets in restructuring but argued that “bringing down the cost base alone will not be sufficient” for HBS competitiveness, outlining a broader transformation across portfolio, supply chain, production footprint, and sales/service.
In HBS, management described progress on a “renewed and leaner portfolio,” including a new three-phase hybrid solution in two power classes planned to be introduced at Intersolar in June, the January launch of the Sunny Tripower X 60, and a new storage solution for the U.S. market expected during 2026. SMA said it will focus more on software development and outsource hardware development for HBS solutions to partners. The company ramped a global competence center in India, recruiting 30 FTEs in 2025 with plans for 28 more in 2026, and said the shift enabled a reduction of around 50 FTEs in solution development in Germany.
In production, management said it is ramping assembly in Kraków, including Universe-line products such as Sunny Boy Smart Energy and Sunny Tripower X, and began production of the SMA eCharger there. The move enabled SMA to reduce headcount and production in Kassel. In sales and service, SMA said it withdrew HBS sales from Australia, Latin America, and Asia Pacific, and increased customer service headcount in its MSSC in Poland.
For Large Scale, management discussed a shift in the battery energy storage system (BESS) customer base toward independent power producers and specialized developers, and the need to adapt commercial engagement and long-term service offerings. The company also highlighted opportunities tied to data centers and hybrid solar-plus-storage architectures, including a DC-DC converter skid concept for large-scale hybrid systems.
For 2026, SMA issued a broader range due to uncertainties. Guidance calls for:
- Sales: EUR 1.475 billion to EUR 1.675 billion
- EBITDA: EUR 50 million to EUR 180 million
Planning assumptions include Large Scale sales slightly above 2025 supported by backlog and sustained demand, and higher HBS sales following the 2025 demand drop, with market growth in core countries projected in the low single digits and actions to fill product portfolio gaps aimed at regaining market share.
Rouhi also flagged risks around U.S. tariffs and refunds following a Supreme Court decision in February that the 2025 tariffs were unlawful, noting uncertainty over potential pass-through and the timing of refunds. Guidance reflects a potential negative impact in the “mid double-digit million” euro range on revenue and earnings. Management also cited currency sensitivity due to U.S. dollar exposure and noted policy uncertainty in Germany linked to discussions around EEG reform.
In Q&A, Rouhi said the company had not seen major changes in U.S. demand early in the year and that customers generally do not “safe harbor” through inverters. On Germany, he described the market as “very relevant” for HBS, and said internal modeling suggested subsidy changes would not be positive but were not expected to cause a “dramatic drop,” though uncertainty could weigh on demand.
About SMA Solar Technology (ETR:S92)
SMA Solar Technology AG, together with its subsidiaries, engages in development, production, and sale of PV and battery inverters, transformers, chokes, monitoring systems for PV systems, and charging solutions for electric vehicles in Germany and internationally. It operates through Home Solutions, Commercial and Industrial Solutions, and Large Scale and Project Solutions segments. The company offers string and central solar inverters for various module types; battery inverters for high voltage batteries, on- and off- grid applications, commercial and industrial storage solutions, large scale storage solutions, and accessories; medium-voltage technology products; and DC-DC converters.
