EQS-News: SMA Group presents final figures for the first half of 2025

EQS-News: SMA Solar Technology AG / Key word(s): Half Year Results
SMA Group presents final figures for the first half of 2025

07.08.2025 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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SMA Group presents final figures for the first half of 2025

* Sales stand below the previous year's figure at €684.9 million (H1 2024:
€759.3 million) in line with expectations

* Operating EBITDA reaches €55.1 million; EBITDA including one-time
effects at €9.1 million [1] (H1 2024: €80.6 million [2])

* Order backlog on June 30, 2025 stands at €1.2 billion (June 30, 2024:
€1.4 billion)

* Large Scale & Project Solutions increase sales and earnings

* Demand in Home & Business Solutions remains weak

* Outlook for sales and EBITDA in the lower third of the forecast range
published on March 5, 2025 at €1,500 million to €1,650 million and €70
million to €110 million respectively

Niestetal, August 7, 2025 – SMA Solar Technology AG (SMA/ISIN:
DE000A0DJ6J9/FWB: S92) achieved consolidated sales of €684.9 million in the
first half of 2025 following on from €759.3 million in the previous year.
Sales development in the Home & Business Solutions division was impacted by
declining demand as well as high competitive and price pressure. Sales stood
at €116.1 million (of which Home Solutions accounted for €54.0 million and
Commercial & Industrial Solutions €62.1 million) (H1 2024: €223.5 million,
of which Home Solutions €109.9 million and Commercial & Industrial Solutions
€113.6 million). The Large Scale & Project Solutions division recorded an
increase in sales from €535.8 million in the previous year to €568.8 million
in the first half of 2025, in line with budget expectations.

Operating Group EBITDA amounted to €55.1 million compared to €80.6 million2
in the same period of the previous year. Including one-time effects EBITDA
reached €9.1 million1. This corresponds to an EBITDA margin of 1.3% (H1
2024: 10.6%). Among the reasons for this change compared to the previous
year are lower sales and the resulting lower fixed cost degression in the
Home & Business Solutions division. In addition, one-time effects had a
significant impact on earnings, including write-offs on inventory and
provisions for purchase obligations totaling about €50 million, and
provisions for doubtful receivables (€7.5 million). EBIT stood at −€19.0
million1 (H1 2024: €56.2 million2). This corresponds to an EBIT margin of
−2.8% (H1 2024: 7.4%).

The Large Scale & Project Solutions division further improved its
profitability compared to the same quarter of the previous year thanks to
the high level of sales and the associated increase in productivity,
achieving EBIT of €113.4 million (H1 2024: €100.5 million). In the Home &
Business Solutions division, EBIT fell to −€129.2 million (H1 2024: −€66.8
million) due to a decline in sales, write-offs on inventories, and
provisions for purchase obligations.

"The market for residential and commercial systems remained weak in the
first half of 2025. Alongside declining growth rates in Germany, competition
and price pressures from Asian suppliers has once again risen. Furthermore,
some distributors have persistently high inventory levels, which are only
being reduced very slowly. Against this backdrop, it is all the more
important that we position our HBS division for the future as planned. In
addition to cutting costs and increasing efficiency, we will also be
systematically streamlining our product portfolio. At the same time, the
performance of the Large Scale & Project Solutions division in the first
half of 2025 was up on the previous year, as expected. The outlook for this
market segment remains good. However, uncertainties arising due to customs
duties and the still unclear safe harbor requirements under America's new
tax and spending bill (One Big Beautiful Bill (OBBB)) have increased,"
explains Jürgen Reinert, CEO of SMA.

“The challenging market environment in HBS and the increased uncertainty due
to tariffs, trade barriers, and the 'OBBB' grew significantly once again in
the second quarter. We are therefore putting greater efforts into planning
for scenarios so that we can map different developments at an early stage.
Furthermore, we are currently evaluating a range of options for action that
will enable us to react quickly in the event of a further deterioration in
business development in the HBS division. These include in particular
further measures to optimize costs," adds Kaveh Rouhi, CFO of SMA.

Net income came in at −€42.4 million (H1 2024: €44.1 million). Earnings per
share thus amounted to −€1.22 (H1 2024: €1.27).

The SMA Group's free cash flow increased significantly to €65.5 million,
following on from −€202.6 million in the previous year. Net cash as at June
30, 2025, was significantly higher than at the end of the year, coming in at
€135.0 million (December 31,2024: €84.2 million). With an equity ratio of
33.4% (December 31,2024: 35.9%), SMA continues to have a solid equity
capital base.

As of June 30, 2025, the order backlog amounted to €1,161.4 million (June
30, 2024: €1,348.6 million). At €848.3 million, three quarters of this is
attributable to the product business (June 30, 2024: €988.0 million).

As announced on May 8, 2025, the Managing Board has narrowed the forecast
range to sales and EBITDA in the lower third of €1,500 million to €1,650
million and €70 million to €110 million respectively, and as such
anticipates sales of €1,500 million to €1,550 million and EBITDA of €70
million to €80 million. In addition to the deterioration in the
macroeconomic environment and the declining growth rates in the residential
and commercial sectors, the reasons for the downward revision to the lower
third of the forecast range are the increased uncertainties caused by
volatile customs policies and the potential direct and indirect effects on
SMA's business. The tax and spending bill (OBBB) signed into law on July 4,
2025 adds a further uncertainty factor, which in the opinion of the Managing
Board could have a negative impact on the prospects for the development of
the photovoltaic market in the USA in the mid- to long term.

Additional Information

The half-year report for January to June 2025 is available to view on the
website www.sma.de/en/investor-relations/publications. SMA will discuss its
business development during a conference call for analysts and investors on
August 7, 2025 at 1:30 p.m.. An overview of analyst estimates (consensus) is
available at Analyst Coverage & Consensus | SMA Solar.

About SMA

As a leading global specialist in photovoltaic and storage system
technology, the SMA Group is setting the standards today for the
decentralized and renewable energy supply of tomorrow. SMA’s portfolio
contains a wide range of efficient PV and battery inverters, holistic system
solutions for PV and battery-storage systems of all power classes,
intelligent energy management systems and charging solutions for electric
vehicles and power-to-gas applications. Digital energy services as well as
extensive services round off SMA’s range. SMA inverters installed throughout
the world within the last 20 years with a total output of approximately 132
GW help avoid the emission of more than 70 million tons of CO2. SMA’s
multi-award-winning technology is protected by more than 1,600 patents and
utility models. Since 2008, the Group’s parent company, SMA Solar Technology
AG, has been listed on the Prime Standard of the Frankfurt Stock Exchange
(S92) and is listed on the SDAX and the TechDAX index.

SMA Solar Technology AG

Sonnenallee 1

34266 Niestetal

Germany

Press Contact:

Nina McDonagh

Tel.+49 561 9522425911

Presse@SMA.de

Investor Relations Contact:

Viona Brandt

Tel. +49 151 277 65 825

Investor.Relations@SMA.de

Disclaimer:

This corporate news serves only as information and does not constitute an
offer or invitation to subscribe for, acquire, hold or sell any securities
of SMA Solar Technology AG (the “Company”) or any present or future
subsidiary of the Company (together with the Company, the “SMA Group”) nor
should it form the basis of, or be relied upon in connection with, any
contract to purchase or subscribe for any securities in the Company or any
member of the SMA Group or commitment whatsoever. Securities may not be
offered or sold in the United States of America absent registration or an
exemption from registration under the U.S. Securities Act of 1933, as
amended.

This corporate news can contain future-oriented statements. Future-oriented
statements are statements which do not describe facts of the past. They also
include statements about our assumptions and expectations. These statements
are based on plans, estimations and forecasts which the Managing Board of
SMA Solar Technology AG (SMA or company) has available at this time.
Future-oriented statements are therefore only valid on the day on which they
are made. Future-oriented statements by nature contain risks and elements of
uncertainty. Various known and unknown risks, uncertainties and other
factors can lead to considerable differences between the actual results, the
financial position, the development or the performance of the corporation
and the estimates given here. These factors include those which SMA has
discussed in published reports. These reports are available on the SMA
website at www.SMA.de. The company accepts no obligation whatsoever to
update these future-oriented statements or to adjust them to future events
or developments.

[1] Including around €10 million from a compensation payment as part of a
claims settlement (reported in the "Corporate" segment)

[2] Including €19 million from the sale of shares in elexon GmbH (reported
in the "Corporate" segment)


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07.08.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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The issuer is solely responsible for the content of this announcement.

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Language: English
Company: SMA Solar Technology AG
Sonnenallee 1
34266 Niestetal
Germany
Phone: +49 (0)561 / 9522 - 0
Fax: +49 (0)561 / 9522 - 100
E-mail: info@sma.de
Internet: www.sma.de
ISIN: DE000A0DJ6J9
WKN: A0DJ6J
Indices: SDAX,
Listed: Regulated Market in Frankfurt (Prime Standard);
Regulated Unofficial Market in Berlin, Dusseldorf,
Munich, Stuttgart, Tradegate Exchange
EQS News ID: 2180480



End of News EQS News Service
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2180480 07.08.2025 CET/CEST