SMA Solar Technology ETR: S92 reported a modest increase in first-quarter 2026 sales and operating profitability, while narrowing its full-year outlook toward the upper end of its prior guidance range as demand in its large-scale business remained strong and momentum improved in its Home and Business Solutions segment.
Chief Financial Officer Kaveh Rouhi told investors and analysts that group sales rose 4% year over year to EUR 341 million in the first quarter. Reported group EBITDA increased to EUR 26 million from EUR 25 million a year earlier, while operating EBITDA before one-off items rose 67% to EUR 25 million from EUR 15 million.
“This is another proof point of our transformation progress,” Rouhi said, pointing to the improvement in the Home and Business Solutions business, where EBIT improved to negative EUR 20 million from negative EUR 46 million a year earlier.
Home and Business Sales Rise, Large Scale Holds Steady
SMA said sales in its Home and Business Solutions division increased 27% to EUR 61 million, compared with EUR 48 million in the first quarter of 2025. The division’s share of total group sales increased to 18% from 15% a year earlier. Rouhi said demand was higher than in the prior-year period and that the company continues to focus on EMEA as part of its transformation program.
Large Scale & Project Solutions sales were stable at EUR 280 million, roughly in line with the first quarter of 2025. Rouhi said the Americas was the strongest region for the large-scale division, followed by EMEA and APAC. For the group overall, the U.S., Germany and Australia were the main markets in the quarter.
By region, EMEA accounted for 45% of revenue, up from 41% a year earlier, driven by growth in Germany and Benelux across both divisions. The Americas remained stable at 35% of revenue, supported by U.S. growth in Home and Business Solutions and another strong quarter for Large Scale & Project Solutions. APAC’s share declined to 20% from 24%, as large-scale revenue in Australia fell below the unusually high level of the prior-year quarter.
Cash Flow Turns Negative on Working Capital Build
Free cash flow was negative EUR 27 million in the quarter, compared with positive EUR 96 million in the first quarter of 2025. Rouhi attributed the decline primarily to restructuring-related cash effects and an increase in net working capital, especially higher trade receivables tied to strong sales late in March.
Net working capital increased to EUR 243 million from EUR 230 million at the end of 2025, resulting in a net working capital ratio of 16%. Trade receivables rose to EUR 242 million, which Rouhi said the company expects to convert to cash in the second quarter. Inventories were stable at EUR 360 million, while trade payables increased by EUR 40 million, mainly due to supplier payment timing.
Net cash declined 16% to EUR 148 million at the end of March. Rouhi said SMA had fully repaid its revolving credit facility, which had been drawn by EUR 45 million at the end of December.
Order Backlog Climbs to EUR 1.41 Billion
Total order backlog increased to EUR 1.41 billion at the end of March from EUR 1.35 billion at the end of 2025. Product order backlog was nearly EUR 1.1 billion, including EUR 1 billion in the large-scale division. The Home and Business Solutions product order backlog rose to nearly EUR 50 million from EUR 43 million at year-end.
Order intake was EUR 340 million for Large Scale & Project Solutions and EUR 71 million for Home and Business Solutions in the first quarter.
In response to a question from Jefferies analyst Constantin Hesse about whether geopolitical tensions had boosted orders, Rouhi said the first quarter did not reflect an impact from what he called the “Iran crisis,” because order intake typically takes several weeks to materialize. However, he said SMA saw “an uplift” in April, while cautioning that it was too early to determine whether the increase represents a sustained trend.
Rouhi also said demand dynamics in large scale remain healthy. “We had a great Q1 in terms of order intake,” he said, adding that the company is “confident and quite optimistic” for coming quarters.
Battery Inverters Become Larger Part of Large-Scale Sales
Storage was a recurring topic during the call. Asked by Hesse about the role of storage in large-scale orders, Rouhi said photovoltaic products remain SMA’s main business, but battery inverters are becoming increasingly important.
“In the battery piece, we have much better differentiation capabilities, and that’s a big part of the sales already in Q1,” Rouhi said. He added that, in the Large Scale business, battery inverters represented roughly 60% of first-quarter sales. He also said Home and Business Solutions is seeing a shift toward hybrid inverters, while PV-only inverters are becoming less relevant in that market.
SMA highlighted a battery energy storage project in Finland as a recent milestone. Rouhi said SMA Altenso and local partner Infinergies Finland Oy developed the 95 MW, 220 MWh battery park project, which has been transferred to greentech investor re:cap. Altenso will remain the central execution partner, with construction planned to start in spring 2026 and commissioning scheduled for 2027.
SMA Refines 2026 Guidance Toward Upper Third
SMA narrowed its 2026 guidance to the upper third of its previous range, citing improved conditions in both divisions. The company now expects group sales between EUR 1.475 billion and EUR 1.675 billion, with EBITDA between EUR 50 million and EUR 180 million.
Rouhi said large-scale demand remains high and the U.S. dollar’s stronger development against the euro is supporting the Large Scale & Project Solutions division compared with SMA’s original planning assumptions. He also said the company sees a higher likelihood of potential refunds related to IEEPA tariffs that were deemed unlawful, though timing, amount and entitlement remain uncertain.
Rouhi said tariff refunds could provide a EUR 20 million to EUR 30 million upside potential, mostly in cash, and said the company is monitoring the process closely. He noted that the potential upside is included within the refined guidance range.
For Large Scale & Project Solutions, SMA expects sales slightly above the prior year’s high level, supported by backlog and sustained demand, but EBIT below the prior year because of higher operating costs and lower capitalization of research and development costs. For Home and Business Solutions, the company expects sales above the previous year, with negative earnings again in 2026 but a significant improvement driven by the transformation program.
Rouhi said SMA remains “cautiously optimistic,” citing possible upside from stronger-than-expected demand in Home and Business Solutions and favorable currency developments in Large Scale, while warning that geopolitical tensions, trade restrictions, tariffs or foreign exchange movements could require changes to the company’s assumptions.
About SMA Solar Technology ETR: S92
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, Commercial and Industrial 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.
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