SMA Solar ($S92 (+4,53%) ) is lowering its forecast for the current year due to the persistently weak market development for residential and commercial systems and now expects an operating loss. The company announced on Monday in Niestetal that the expected sales development of the Home & Business Solutions division for 2025 and the following years had once again deteriorated significantly in the course of the third quarter. SMA Solar intends to further intensify the restructuring efforts already initiated. The costs for this and write-downs would amount to between 170 million and 220 million euros in 2025.
The SDax-listed company therefore anticipates a loss in earnings before interest, taxes, depreciation and amortization of between €30 million and €80 million. SMA had previously forecast a profit of 70 to 80 million euros. Sales are expected to reach 1.45 to 1.5 billion euros, slightly below the previous forecast of 1.5 to 1.55 billion euros for the current year.
The extended restructuring measures provide for the adjustment and development of the product portfolio and the depth of added value, greater use of the international locations and a more efficient service strategy, it said. As a result, SMA expects to save more than €100 million annually by the end of 2027.
The inverter group has been struggling for some time with continued weak demand and competitive pressure from Asian manufacturers. SMA had already become more cautious in May due to worsening conditions and the volatile US customs policy when looking ahead to the year.