EQS-News: SMA Group: Business development in 2024 influenced by challenging market environment and one-time items from restructuring and transformation program

EQS-News: SMA Solar Technology AG / Key word(s): Annual Report
SMA Group: Business development in 2024 influenced by challenging market
environment and one-time items from restructuring and transformation program

27.03.2025 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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SMA Group: Business development in 2024 influenced by challenging market
environment and one-time items from restructuring and transformation program

* Group sales at €1,530.0 million significantly below the previous year
(2023: €1,904.1 million)

* EBITDA decreases from €311.0 million to −€16.0 million

* Earnings significantly impacted by one-time inventory devaluations and
restructuring expenses

* Guidance for 2025: sales of €1,500 million to €1,650 million; EBITDA
between €70 million and €110 million

Niestetal, March 27, 2025 – SMA Solar Technology AG (SMA/ISIN:
DE000A0DJ6J9/FWB: S92) confirms preliminary figures for 2024 as a whole and
guidance for 2025 published on March 5, 2025. In the 2024 fiscal year,
consolidated sales decreased by 19.7% to €1,530.0 million (2023: €1,904.1
million). The gross margin was down significantly year on year at 16.5%
(2023: 29.4%), driven in particular by lower profitability in the segments
Home Solutions and Commercial & Industrial Solutions, [1] as well as
one-time items associated with the restructuring program.

EBITDA amounted to −€16.0 million [2] and was thus significantly below the
previous year’s level (2023: €311.0 million). This corresponds to an EBITDA
margin of −1.0% (2023: 16.3%). The reasons for this development were, among
other things, lower fixed cost degression due to low sales in the segments
Home Solutions and Commercial & Industrial Solutions, increased costs,
inventory devaluations and provisions associated with the restructuring and
transformation program.

The Group's earnings before interest and taxes (EBIT) fell from €269.5
million to −€93.1 million in the 2024 fiscal year (EBIT margin in 2024:
−6.1%; 2023: 14.2%).

The net income fell to −€117.7 million (2023: €225.7 million) and earnings
per share decreased accordingly to −€3.39 (2023: €6.50). Inverter output
sold in 2024 as a whole was 19.5 GW (2023: 20.5 GW).

At €84.2 million, net cash was considerably lower than in the previous year
(December 31, 2023: €283.3 million). Compared to €45.1 million in net cash
at the end of the third quarter of 2024, however, a significant improvement
could be achieved. The equity ratio fell to 35.9% (December 31, 2023:
42.3%).

Strong sales and earnings performance in the Large Scale & Project Solutions
segment

The Large Scale & Project Solutions segment again posted significant sales
growth by 39.1% to €1,175.8 million (2023: €845.0 million). The share of
total sales increased to 76.9% (2023: 44.4%). 48.5% of segment sales were
attributable to the Americas region (2023: 48.6%), 13.9% to the APAC region
(2023: 10.5%), and 37.6% to the EMEA region (2023: 40.9%). EBIT rose
significantly to €227.0 million (2023: €103.8 million). The increase in
sales, a profitable product mix, and the sale of the first battery storage
project by Altenso GmbH contributed to this. The EBIT margin was 19.3%
(2023: 12.3%).

Sales in the Home Solutions segment significantly decreased by 70.6% to
€170.3 million (2023: €580.2 million). The share of total sales thus
amounted to 11.1% (2023: 30.5%). The EMEA region continued to account for
the highest share of sales at 92.9% (2023: 96.9%). A share of 5.3% was
attributable to the Americas region (2023: 2.0%) and 1.8% to the APAC region
(2023: 1.1%). EBIT decreased to −€150.7 million (2023: €148.0 million) due
to the price- and volume-related sales decline, as well as increased costs
and inventory devaluations. Furthermore, the segment earnings were
negatively impacted by provisions for purchase commitments, the impairment
of a production line, and impairments on capitalized development projects.
The EBIT margin was thus −88.5% (2023: 25.5%).

The Commercial & Industrial Solutions segment also recorded a significant
decline in sales by 61.6% to €183.8 million due to the weak demand combined
with high inventories at distributors and installers (2023: €478.9 million).
Its share of the SMA Group’s total sales was 12.0% (2023: 25.1%). The EMEA
region accounted for 74.0% of segment sales, the Americas region for 17.0%,
and the APAC region for 9.0% (2023: 80.8% EMEA, 11.7% Americas, 7.5% APAC).
EBIT reduced to −€164.3 million (2023: €22.7 million) with an EBIT margin of
−89.4% (2023: 4.7%). The reasons for this development were the decrease in
sales, as well as the increased costs and inventory devaluations.
Furthermore, the segment earnings were negatively impacted by provisions for
purchase commitments and impairments on capitalized development projects.

Order backlog reflects different demand in the segments

At €1,355.6 million, the SMA Group’s order backlog as of December 31, 2024,
was, as expected, below the order backlog at the end of the previous year
(December 31, 2023: €1,705.0 million) due to the reduced demand in the Home
Solutions and Commercial & Industrial Solutions segments. €1,033.3 million
was attributable to product business (December 31, 2023: €1,329.8 million).

Persistently strong demand was seen in the Large Scale & Project Solutions
segment, with the order backlog rising to €982 million (December 31, 2023:
€914 million), followed by the C&I segment with €31 million and the Home
Solutions segment with €21 million (December 31, 2023: C&I: €238 million;
Home €177 million).

The Managing Board confirms the full-year guidance from March 5, 2025, with
sales of between €1,500 million and €1,650 million and EBITDA of between €70
million and €110 million.

Additional Information

SMA published its audited Consolidated Financial Statements and the Annual
Report for 2024 today. The Managing Board will explain the business
development as well as the restructuring and transformation program during a
virtual press conference on financial statements at 10:30 a.m. and a
conference call for analysts and investors at 1:30 p.m.


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 index.

SMA Solar Technology AG

Sonnenallee 1

34266 Niestetal

Germany

Press Contact:

Dagmar Buth-Parvaresh

Tel.+49 561 9522 421414

Presse@SMA.de

Investor Relations contact:

Viona Brandt

Tel. +49 175 93 93 320

Investor.Relations@SMA.de

Disclaimer:

This press release 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 press release 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] Merging into the division Home & Business Solutions in the first half of
2025.

[2] Including €19 million positive one-time item from the sale of shares in
elexon GmbH, and a low two-digit million euro amount from the sale of a
battery storage project by SMA Altenso GmbH.


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27.03.2025 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: 2107072



End of News EQS News Service
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2107072 27.03.2025 CET/CEST