Due to the ongoing downturn in the residential and commercial renewable energy installation markets and continuously declining sales, German inverter manufacturer SMA Solar Technology AG expects to report financial losses in 2025 and will implement further restructuring measures.
SMA indicated that it anticipates its EBITDA for this fiscal year to fall to a loss of €30 million to €80 million (€34.9 million to €93.1 million). Previously, the company had projected an EBITDA profit of €70 million to €80 million, but now expects to swing to a loss. Meanwhile, SMA forecasts that sales will “decline slightly,” revising its earlier expectation of €1.5 billion to €1.55 billion down to €1.45 billion to €1.5 billion.
This adjustment in forecasts will have additional one-time impacts on the company’s assets, including inventory write-downs, impairment of capitalized R&D projects, and fixed asset impairments such as production lines. SMA management expects these negative one-time effects to amount to €170 million to €220 million.
SMA attributed the performance changes to the “persistently challenging market environment in the residential, commercial, and industrial sectors.” The first-half 2025 financial report showed that SMA recorded a loss of €42.4 million, impacted by weakness in the residential and commercial markets. At the time, CEO Jürgen Reinert stated that slowing growth in the German market, competition from Asian suppliers, and pricing pressures had affected the company’s performance. Additionally, uncertainties in the U.S. market and unstable import tariff rates had also adversely impacted profits.
In response to these market dynamics, SMA Solar is actively pursuing restructuring efforts. The company stated that these changes include “adjusting and optimizing the product portfolio and the depth of value creation, making greater use of our international footprint, and implementing more efficient customer service strategies.” SMA aims to save €100 million in costs annually through the restructuring.
Overall, the inverter market has been hit hard by the downturn in the residential and commercial sectors. Over the past year, as demand weakened and market dynamics shifted, SMA and its Western competitors, such as Enphase Energy and SolarEdge, have maintained low profits or reported losses. Over the past year and a half, these companies have announced restructuring efforts, executive changes, or layoffs. In September 2024, SMA was forced to initiate layoffs affecting 1,100 employees, while the company employs a total of 5,500 people worldwide.
As early as November last year, SolarPower Europe called on the EU to support inverter manufacturers on the continent to prevent the industry from collapsing, as happened with the EU’s solar cell module manufacturing business. Today, SMA Solar’s difficulties once again highlight the severe challenges facing Europe’s inverter industry in the current market environment. Against the backdrop of the global energy transition, the inverter market is highly competitive, and companies must continuously improve technology, optimize costs, and expand their market presence to secure their position. Whether SMA’s restructuring measures can help turn the situation around remains to be seen.
