Germany-based solar energy equipment supplier SMA Solar Technology reported revenue of €1.13 billion (~$1.31 billion) for the first nine months (9M) of 2025, a 7% year-over-year (YoY) decline from €1.06 billion (~$1.22 billion).

Sales in the Home and Business Solutions division declined by 38.7% to €181.3 million (~$210.32 million), primarily due to weaker demand, intensified competitive pressure, and pricing pressure.

The Large Scale and Project Solutions division reported a 24.8% increase in revenue, reaching €953.4 million (~$1.10 billion).

Earnings before interest, taxes, depreciation, and amortization (EBITDA) were a loss of €16.9 million (~$19.6 million) compared to €83.5 million (~$96.86 million) in the same period last year. The decline in EBITDA was due to lower sales and the resulting lower fixed cost degression in the Home and Business Solutions division. In addition, one-time effects involved write-offs and
Scrapping of inventories, as well as allocations to provisions for purchase commitments and provisions for doubtful receivables, also led to the decline.

Jürgen Reinert, CEO of SMA, said the third quarter clearly highlighted the contrasting market conditions faced by SMA’s two divisions. While sales in the Home and Business Solutions segment remained weak but stable, the Large Scale and Project Solutions division again posted strong growth in both sales and EBITDA.

He added that orders for large-scale solar power plants continued to rise as expected. According to Reinert, these trends validate SMA’s strategy of targeting high-growth markets, strengthening its core capabilities, and positioning itself as a focused systems and solutions provider.

Kaveh Rouhi, CFO at SMA, explained that with demand falling in the residential and commercial segments, expanding the company’s restructuring program was a necessary move to strengthen competitiveness.

He stated that SMA is steadily advancing the program and that the added measures are driving significant cost reductions in the Home and Business Solutions division, as well as at the corporate level, resulting in lasting improvements in efficiency.

As of September 30, 2025, the order backlog amounted to €1.28 billion (~$1.48 billion).

SMA confirmed its sales and earnings guidance for the 2025 fiscal year, adjusted on September 1, 2025. Sales are expected to be between €1.45 billion (~$1.68 billion) to €1.5 billion (~$1.74 billion). The company expects its EBITDA to be between a loss of €80 million (~$92.81 million) €30 million (~$34.8 million).

“The U.S. market is returning to normal levels, which is important. We expect order intake to be between €300 million (~$348.09 million) and €400 million (~$464.12 million), depending on project timing. So, while it will be lower than in Q3, Q4 will still be at a healthy level,” said Rouhi.

He explained that SMA operates roughly equally in both battery and solar markets across regions. Demand remains healthy, and the company is well-positioned with strong products and sales. The focus now is on sustaining momentum rather than aggressively chasing market share.

Rouhi said two main factors will influence profitability: increased investments in the large-scale business next year to boost competitiveness, and the impact of U.S.–euro exchange rates, which will pressure margins since SMA manufactures in Germany and exports to the U.S.

Regarding possible gains from foreign entity of concern rules in the U.S., he said the company is not building any upside into its forecasts because such regulated markets can shift quickly. SMA will welcome customers seeking European-made equipment; however, FEOC benefits are not included in the planning.

He noted that safe harbor rules have had no meaningful effect on SMA’s business. Developers often meet requirements by beginning physical work rather than purchasing inverters, so SMA hasn’t seen any drop in its pipeline.

SMA Solar’s Home Solutions division has been under pressure, contributing to a 9.8% YoY decrease in the 1H 2025 sales, extending the downward trend seen in Q1 when the company posted a 9.4% drop.