Decline in Profits Warned by SMA Solar - Sharp Drop in Shares
SMA Solar Announces Expanded Restructuring Measures Amidst Deteriorating Market Conditions
SMA Solar, a leading provider of solar inverters and energy storage systems, has announced a series of restructuring measures in response to the significantly deteriorated market conditions and worsening sales outlook in its Home & Business Solutions sectors. The company's management board initiated and supported these measures, as officially communicated in their announcements in 2025.
The restructuring measures, which are expected to be particularly intense in the Home & Business Solutions segment, will result in one-time expenses of approximately 170 to 220 million euros. These expenses are aimed at achieving annual savings of over 100 million euros by the end of 2027.
In May, SMA Solar had already lowered its expectations for the current fiscal year. As a result, the company now expects an EBITDA loss of between 80 and 30 million euros for 2025, compared to its previous forecast of an 70 to 80 million euro profit. The revised revenue expectation for the current year is between 1.45 and 1.50 billion euros.
The ongoing weak market development has led to a deterioration in the expected revenue development for 2025 and subsequent years in the Home & Business Solutions division. This has prompted SMA Solar to revise its 2025 targets downward due to weak demand.
The stock of SMA Solar lost double-digit percentages on Monday due to the announced restructuring and lowered targets. The risk-reward ratio for an investment in SMA Solar's solar stock is currently perceived as poor, and an investment is not recommended at this time. The stock lost additional double-digit percentages on Monday evening on the trading platform Tradegate.
The current situation at SMA Solar presents too many unanswered questions. However, the company remains committed to navigating these challenges and positioning itself for long-term success. The details of these restructuring measures were outlined in a press release issued by SMA Solar.
These measures are a response to the ongoing weak demand and thin margins that SMA Solar has been facing. The expansion of restructuring measures is due to the ongoing weak market development, and the company is working diligently to address these challenges head-on.
In conclusion, SMA Solar is undergoing a period of significant change as it navigates challenging market conditions. Investors are advised to exercise caution when considering an investment in SMA Solar's solar stock, given the current situation and the uncertainties that lie ahead.
