Germany-based solar energy equipment supplier SMA Solar Technology has reported a 19.7% decline in its 2024 revenue, primarily due to a significant decrease in sales in the home solutions segment.

The company’s full-year revenue totaled €15.30 billion (~$16.83 billion), down from €19.04 billion (~$20.50 billion) in the previous year. The year-on-year (YoY) decrease in revenue reflects the decline in business development in the home and commercial and industrial (C&I) solutions segments.

In the home solutions segment, sales decreased by 70.6% YoY to €170.3 million (~$183.5 million) from €580.2 million (~$561 million).

The significant decline was due to a combination of price and volume-related sales reduction, increased costs, and inventory devaluations.

Europe, the Middle East, and Africa accounted for the highest share of sales, at 92.9%. The company attributed it to soft sales development in home solutions and C&I in 2024.

SMA Solar’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) decreased from €311 million (~$335 million) to €16 million (~$17.2 million), resulting in a lower EBITA margin of 1% compared to last year’s 16.3%.

The reduced EBITDA was due to low sales and the resulting lower fixed cost degression in the home and C&I solutions segments, increased costs, and impairment losses on inventories of €113.4 million (~$12 million).

At the end of 2024, the company’s net income stood at €117.7 million (~$126 million), a 47% YoY decrease from €225.7 million (~$243 million). Earnings per share in 2024 came in at a negative €3.39 (~$3.66), compared to a positive €6.50 (~$7.01) in 2023.

The company’s net cash stood at €84.2 million (~$90.24 million), a decline from €283.3 million (~$305.5 million) in 2023. The group’s inverter output sales in 2024 totaled 19.5 GW.

Outlook

SMA Solar expects sales for its home and business solutions divisions to be slightly higher in 2025.

The company expects its sales to reach between €1.5 million (~$1.6 million) and €1.7 million (~$1.8 million), projecting higher sales in inverter output ranging from 20 GW to 22 GW.

EBITDA is expected to see a positive impact in 2025, driven by cost reductions and increased efficiency as part of the company’s restructuring and transformation program. It is projected to reach between €70 million (~$75 million) and €110 million (~$118.6 million).

SMA Solar had recorded a net income of €28.5 million (~$30.6 million), a 44.8% decrease from €51.7 million (~$55.6 million) in the first quarter of 2023.

In 2023, the company reported a 79% increase in revenue, driven by strong inverter sales.