SMA Solar Technology AG Q2 2025 Earnings Recap

SMA Solar Technology AG reported a challenging first half of 2025, with revenues declining to EUR 685 million and significant one-time effects impacting profitability, yet free cash flow improved significantly.

Key Takeaways

• Group sales decreased 9.7% year-over-year to EUR 685 million, driven by a 48% decline in the Home & Business Solutions (HBS) division.
• Reported EBITDA dropped to EUR 9 million from EUR 81 million in the previous year, primarily due to one-time inventory write-offs and provisions totaling over EUR 50 million.
• Free cash flow showed a substantial turnaround at EUR 66 million, reflecting improved net working capital management.
• The total order backlog remains strong at EUR 1.2 billion, indicating a solid pipeline for future growth.
• The Large Scale and Project Solutions division reported growth in EBIT to EUR 113 million, counterbalancing declines in the HBS division's profitability.