Germany-based solar energy equipment supplier SMA Solar Technology reported sales of €684.9 million (~$795.6 million) for the first half (1H) of 2025, marking a 9.8% year-over-year (YoY) decline from €759.3 million (~$881.9 million).

Sales in the Home and Business Solutions division fell by 48.1% to €116.1 million (~$134.7 million), attributed to weaker demand and intensified competitive pressure.

The Large Scale and Project Solutions division posted an increase of 6.2%, reaching €568.8 million (~$660.9 million). This division accounted for 83% of SMA Group’s total sales, while the Home and Business Solutions segment contributed the remaining 17%.

During the first half of 2025, SMA sold 8,327 MW of solar inverters, down from 9,107 MW in 1H 2024. Of this total, 79.6% was exported to international markets. The company’s external sales were geographically distributed with 48.6% in Europe, the Middle East, and Africa; 32.7% in the North and South American region; and 18.8% in the Asia-Pacific region. The main markets during the reporting period included Germany, the U.S., the United Kingdom, and Australia.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) plummeted by 88.7% YoY to €9.1 million (~$10.6 million) from €80.6 million (~$93.6 million). The decline in EBITDA was primarily due to lower sales volumes, reduced fixed-cost degression in the Home and Business Solutions segment, as well as inventory write-offs resulting from impairment tests. Additional factors included allocations to provisions for purchase commitments and provisions for doubtful receivables in the U.S., which stemmed from a customer’s insolvency filing.

SMA Solar Technology reported a net loss of €42.4 million (~$492.5 million) for 1H 2025, a stark reversal from the net income of €4.1 million (~$4.8 million) recorded in the same period last year, reflecting a YoY drop of 196.1%. Loss per share stood at €1.22 (~$1.42), compared to earnings of €1.27 (~$1.48) per share in 1H 2024.

As of June 30, 2025, SMA Group’s order backlog totaled €1,161.4 million (~$1,348.4 million). This represented a decline in line with overall market conditions and was largely comprised of orders within the Large Scale and Project Solutions division. Of the total, €848.3 million (~$983.7 million) was attributed to the product business. In comparison, the service business accounted for €313.1 million (~$363.9 million), primarily related to extended warranties purchased for periods ranging from five to ten years.

SMA adjusted its full-year 2025 guidance downward due to weaker-than-expected first-half results and ongoing market pressures. Sales are now expected to range between €1.45 billion (~$1.683 billion) and €1.55 billion (~$1.79 billion), down from the previous forecast of €1.7 billion ~$1.974 billion) to €1.85 billion ($2.14 billion). EBITDA is forecasted between €80 million (~$92.9 million) and €130 million (~$150.9 million), revised from the earlier guidance of €220 million (~$255.5 million) to €290 million (~$336.8 million).

This adjustment reflects persistent low demand in the Home and Business Solutions segment, and a slower recovery in the global solar inverter market. Inventory impairments and provisions related to customer insolvency in the U.S and competitive pricing pressures across key markets are also factors behind this adjustment.

SMA Solar’s Home Solutions division has been under pressure, contributing to a 9.4% YoY decrease in Q1 2025 sales, extending the downward trend seen in 2024 when the company posted a 19.7% drop.