Recently, German solar inverter company SMA Solar Technology AG (hereinafter referred to as “SMA”) released its financial report for the first half of 2025. The company recorded a net loss of €42.4 million (approximately ¥354 million), a staggering 196.15% drop compared to its net profit of €44.1 million in the same period of 2024. Total revenue declined by 9.8% year-on-year to €684.9 million (about $797.5 million).
Core Businesses Shrink Across the Board, Asian Competition Intensifies Market Pressure
The financial report revealed a sharp downturn in SMA’s two core business segments. Sales in the residential sector plummeted from €109.9 million in the same period of 2024 to just €54 million (about $63 million), while the commercial & industrial segment saw sales shrink from €113.6 million to €62.1 million (about $72.3 million). Compared to the same period in 2023, the cumulative decline in these two segments exceeded 70%, highlighting persistent weakness in the German domestic market.
“The slowdown in Germany’s market growth, the intensifying price war with Asian suppliers, and distributor inventory overstocking form a triple pressure on our current challenges,” admitted SMA CEO Jürgen Reinert during the earnings call. Data shows that the company’s EBITDA margin plunged from 10.6% in the same period last year to just 1.3% in H1 2025, with total EBITDA dropping 68% year-on-year to €55.1 million (about $64.2 million).
