SMA Solar Technology ETR: S92 reported first-half 2026 sales broadly in line with the prior year while profitability, cash generation and order backlog improved, supported by restructuring measures, stronger demand in its Home & Business Solutions unit and U.S. tariff refunds.
The company raised its full-year outlook on July 16 and now expects 2026 revenue of between €1.625 billion and €1.725 billion, with EBITDA projected at €180 million to €230 million. Management said it expects the second half to exceed the first half, with sequential improvement in the third quarter and the fourth quarter currently planned as the year’s strongest period.
First-Half Results Include Tariff Refund Effects
Group sales totaled €687 million in the first half, compared with €685 million a year earlier. The figure included a €22 million sales reduction related to U.S. tariff refunds, reflecting the reversal of tariff charges that had previously been passed on to large-scale customers. Excluding that effect, sales would have been approximately 4% above the prior-year period, the company said.
The tariff refunds also reversed €41 million of costs, resulting in an approximately €19 million improvement in EBIT and a €42 million increase in cash, including interest received on the refunds. SMA said it had collected the vast majority of refunds related to the U.S. International Emergency Economic Powers Act tariffs and does not expect a material impact going forward.
Operating group EBITDA before one-off earnings effects rose to €66 million from €50 million in the first half of 2025. Including a €22 million positive effect from the sale of previously written-down Home & Business Solutions inventory, EBITDA increased to €88 million from €9 million, representing a 13% margin.
Group EBIT margin was 9%. Home & Business Solutions narrowed its EBIT loss to €22 million from a loss of €129 million a year earlier, aided by transformation measures and inventory sales. Large Scale & Project Solutions generated EBIT of €78 million, below €111 million in the prior-year period. The company cited higher depreciation and amortization on development projects, a less favorable U.S. dollar exchange rate versus the prior year, and lower capitalization of research and development costs.
Home & Business Demand Rises as Large-Scale Backlog Expands
Home & Business Solutions revenue increased 25% to €145 million, as the company cited elevated second-quarter demand. SMA said the division benefited partly from higher energy prices associated with the military conflict in the Middle East. Its product and order backlog more than doubled to €100 million at the end of June from €43 million at the end of 2025, following the June launch of a new product portfolio.
Large Scale & Project Solutions revenue declined 5% to €542 million, primarily due to the treatment of U.S. tariff refunds as a revenue reduction. Management expects higher project execution in the second half, particularly in Europe, supported by a stronger project pipeline.
Total order backlog climbed to €1.75 billion at the end of June from €1.35 billion at the end of 2025. Product order backlog was €1.42 billion, including €1.3 billion in Large Scale & Project Solutions. The company recorded a quarterly record €567 million of large-scale order intake in the second quarter, while Home & Business Solutions recorded €137 million.
Chief Executive Officer Jürgen Reinert said the large-scale order momentum reflected demand from utility customers seeking more decentralized power procurement through solar and storage, as well as progress at Altenso, SMA’s project-development business. He said management expects demand to remain sustainable, although it may not repeat the record second-quarter level.
Reinert also said SMA had received its first U.S. data-center-related order and expects further opportunities, citing the company’s grid-forming capabilities, technology and reliability.
Transformation Program and New Product Launches
SMA said its restructuring and transformation program remains on track to deliver its targeted €250 million in savings. The company is establishing a shared-service center in Poland and a global competence center in India, where more than 30 of the planned 50 full-time employees have been hired. It is also simplifying operations and closing warehouse sites in Brazil and Singapore.
“We are moving from restructuring toward a more competitive and scalable operating model,” Reinert said, adding that the company aims to establish a foundation for sustainable profitability beyond 2027.
For Home & Business Solutions, SMA launched the Sunny Tripower Hybrid X, SMA Storage N, SMA Backup Solution and Energy Planner and Energy Maximizer software. The company said the integrated offerings are designed to combine solar generation, storage, energy optimization and backup power. The European rollout is scheduled to begin in the second half of 2026.
Management expects Home & Business Solutions to remain loss-making in 2026, though with substantial improvement from the prior year. During the question-and-answer session, management said it was targeting break-even for the segment in 2027 and estimated that revenue of roughly €350 million to €400 million could be needed, depending on product mix and margins.
Regulation, U.S. Operations and Cash Position
Reinert said regulatory developments in Europe and the U.S. are increasingly emphasizing cybersecurity, trusted technology and resilient supply chains. He said most SMA products currently marketed in the U.S. already hold Federal Communications Commission authorization and therefore are not directly affected by the FCC’s expanded Covered List framework for certain foreign-produced power and hybrid inverters.
The company opened a U.S. integration facility in Arkansas with partner CHEP and expanded local transformer sourcing through a partnership with Westchester. Reinert said SMA does not currently intend to establish U.S. inverter manufacturing, but believes its current supply-chain setup can meet requirements.
Free cash flow rose to €72 million from €66 million a year earlier. Net working capital declined to €178 million from €213 million at the end of 2025, while net cash increased by almost €70 million to €245 million. SMA said it fully repaid its revolving credit facility in the first quarter and had not used the cash credit line since then.
Management said its outlook remains subject to potential new trade restrictions, tariffs and foreign-exchange movements, but cited improved market conditions, stronger anticipated large-scale performance, favorable currency developments and Home & Business demand as current tailwinds.
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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