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1. Company Snapshot

1.a. Company Description

SMA Solar Technology AG, together with its subsidiaries, engages in development, production, and sale of PV and battery inverters, transformers, chokes, monitoring systems for PV systems, and charging solutions for electric vehicles in Germany and internationally.It operates through Home Solutions, Business Solutions, and Large Scale and Project Solutions segments.The company offers string and central solar inverters for various module types; battery inverters for high voltage batteries, on- and off- grid applications, commercial and industrial storage solutions, large scale storage solutions, and accessories; medium-voltage technology products; and DC-DC converters.


It also provides E-mobility charging solutions; monitoring and control solutions for PV systems; and energy data services, as well as digital solutions to design, operate, and service PV systems and energy systems.The company was formerly known as SMA Technologie AG and changed its name to SMA Solar Technology AG in June 2008.SMA Solar Technology AG was founded in 1981 and is headquartered in Niestetal, Germany.

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1.b. Last Insights on S92

SMA Solar Technology AG's recent performance was driven by its strong Q3 2023 earnings release, which showed a significant increase in revenue and profitability. The company's solar inverter business saw a notable surge, driven by growing demand for renewable energy solutions. Additionally, SMA Solar Technology AG's share buyback program, announced in 2023, is expected to reduce the number of outstanding shares and potentially boost earnings per share. This, combined with the company's expanding product portfolio and increasing market share, has contributed to its recent growth momentum.

1.c. Company Highlights

2. SMA's Q3 2025 Earnings: Navigating a Challenging Market Environment

SMA's 9-month 2025 results revealed a revenue of €1.1 billion, below the previous year's level, primarily due to a challenging market environment for the Home and Commercial & Industrial (HBS) business. The company's EBITDA stood at -€122 million, with a significant impact from one-off costs. The actual EPS came out at -€0.3645, beating estimates of -€0.79. The Large Scale and Project Solutions division, however, is expected to see sales slightly above the previous year's high level. The company's guidance range for 2025 has been reduced to €1.45-1.5 billion in sales and -€80-30 million in EBITDA.

Publication Date: Nov -29

📋 Highlights
  • 2025 Guidance Reduced:: Sales guidance cut to €1.45-1.5 billion and EBITDA to -€80-30 million, with one-offs of €250-265 million.
  • Restructuring Plan:: 300-50 FTE reductions in Germany and non-core markets, 200 FTE additions in Poland/India, with €30-40 million Q4 restructuring costs.
  • HBS Breakeven Target:: Requires €300-400 million in sales post-restructuring, with breakeven above €300 million pre-restructuring.
  • Large Scale Momentum:: Q3 order intake surge to €300-400 million in Q4, driven by EMEA, with EMEA-focused growth in grid stability solutions.
  • Profitability Challenges:: C&I business not operationally profitable despite Q3 EBIT positivity; Large Scale EBIT margin expected <20% in 2026 due to R&D and FX costs.

Segmental Performance

The HBS business faced significant challenges, with sales expected to be well below the previous year's level. The Commercial & Industrial (C&I) business was not operationally profitable, despite showing a positive EBIT in Q3. In contrast, the Large Scale division saw a blowout quarter in Q3, with order intake exceeding €300-400 million, mostly driven by the EMEA region. The company's CFO, Kaveh Rouhi, expressed confidence in the US market, expecting momentum to continue, driven by a growing demand for grid stability solutions.

Restructuring and Cost Optimization

SMA has announced plans to reduce about 300 FTEs in Germany and 50 in non-core markets while building up around 200 FTEs in Poland and India. The restructuring costs for Q4 are estimated to be between €30 million and €40 million, mainly for severance payments. The company expects to break even in the HBS business with revenue between €300 million and €400 million post-restructuring.

Valuation and Outlook

With a P/E Ratio of -5.88 and an EV/EBITDA of -13.41, the market is pricing in significant challenges for the company. However, the company's pipeline is at a similar level as last year, and it expects to end the year with a similar backlog. Analysts estimate next year's revenue growth at 0.5%. The company's management team is cautiously optimistic about its prospects, and the balance sheet is considered healthy, with a Net Debt / EBITDA of 0.06. The company is open to M&A opportunities, but no plans were discussed.

3. NewsRoom

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What Catalysts Are Shaping the Changing Story for SMA Solar Technology

Oct -28

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SMA Solar Technology AG's (ETR:S92) largest shareholders are individual investors with 54% ownership, institutions own 23%

Oct -19

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Should You Investigate SMA Solar Technology AG (ETR:S92) At €21.64?

Sep -22

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Is SMA Solar Technology AG (ETR:S92) Worth €22.7 Based On Its Intrinsic Value?

Aug -31

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SMA Solar Technology Second Quarter 2025 Earnings: €1.38 loss per share (vs €0.45 profit in 2Q 2024)

Aug -10

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SMA Solar Technology (ETR:S92 investor three-year losses grow to 63% as the stock sheds €59m this past week

Aug -05

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Retail investors who hold 51% of SMA Solar Technology AG (ETR:S92) gained 15%, institutions profited as well

May -10

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€18.00 - That's What Analysts Think SMA Solar Technology AG (ETR:S92) Is Worth After These Results

Mar -30

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.77%)

6. Segments

Large Scale & Project Solutions

Expected Growth: 2.5%

SMA Solar Technology AG's Large Scale & Project Solutions segment growth of 2.5% is driven by increasing adoption of renewable energy, government incentives for solar power, and declining system costs. Additionally, growing demand for energy storage and grid parity in key markets contribute to the segment's growth.

Home Solutions

Expected Growth: 2.8%

SMA Solar Technology AG's Home Solutions segment growth of 2.8% is driven by increasing adoption of renewable energy, declining solar panel costs, and government incentives for sustainable energy solutions. Additionally, growing demand for energy independence and backup power systems, particularly in regions with frequent grid outages, contributes to the segment's growth.

Commercial & Industrial Solutions

Expected Growth: 3.2%

SMA Solar Technology AG's Commercial & Industrial Solutions segment growth of 3.2% is driven by increasing adoption of renewable energy, declining solar panel costs, and government incentives for clean energy. Additionally, growing demand for energy storage and grid parity in key markets contribute to the segment's growth.

7. Detailed Products

Sunny Boy

A line of string inverters for residential and commercial solar power systems

Sunny Tripower

A line of three-phase string inverters for commercial and industrial solar power systems

Sunny Central

A line of central inverters for large-scale solar power plants

Sunny Island

A line of off-grid inverters for remote power systems

Sunny Home Manager

A smart energy management system for homes and small businesses

Sunny Portal

A monitoring and control platform for solar power systems

Data Manager M

A data monitoring and control system for commercial and industrial solar power systems

8. SMA Solar Technology AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SMA Solar Technology AG is medium due to the presence of alternative energy sources such as wind and hydro power. However, solar energy is becoming increasingly cost-competitive, reducing the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers for SMA Solar Technology AG is low due to the fragmented nature of the customer base and the lack of significant buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for SMA Solar Technology AG is medium due to the presence of a few large suppliers of components and materials. However, the company's large scale of operations and diversified supply chain mitigate this risk.

Threat Of New Entrants

The threat of new entrants for SMA Solar Technology AG is high due to the relatively low barriers to entry in the solar inverter market and the increasing attractiveness of the industry.

Intensity Of Rivalry

The intensity of rivalry for SMA Solar Technology AG is high due to the presence of several established players in the market and the increasing competition from new entrants.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.63%
Debt Cost 10.30%
Equity Weight 83.37%
Equity Cost 10.30%
WACC 10.30%
Leverage 19.95%

11. Quality Control: SMA Solar Technology AG passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Seplat Energy

A-Score: 5.4/10

Value: 7.6

Growth: 4.0

Quality: 5.3

Yield: 8.1

Momentum: 4.5

Volatility: 3.0

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VivoPower

A-Score: 5.1/10

Value: 10.0

Growth: 2.9

Quality: 7.5

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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SMA Solar Technology

A-Score: 3.8/10

Value: 7.8

Growth: 2.8

Quality: 2.5

Yield: 1.9

Momentum: 8.0

Volatility: 0.0

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7C Solarparken

A-Score: 3.8/10

Value: 7.7

Growth: 2.8

Quality: 2.9

Yield: 1.9

Momentum: 1.0

Volatility: 6.3

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SolarEdge Technologies

A-Score: 3.3/10

Value: 7.2

Growth: 0.7

Quality: 2.6

Yield: 0.0

Momentum: 9.5

Volatility: 0.0

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Meyer Burger Technology

A-Score: 2.7/10

Value: 9.2

Growth: 4.4

Quality: 2.6

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.94$

Current Price

35.94$

Potential

-0.00%

Expected Cash-Flows