SMA Solar Technology AG

First-half 2026 group sales were EUR 687 million versus EUR 685 million in H1 2025. Operating group EBITDA before special items was EUR 66 million versus EUR 50 million last year; reported group EBITDA was EUR 88 million versus EUR 9 million, including a EUR 22 million positive earnings effect in Home & Business Solutions and about EUR 19 million of EBIT improvement from U.S. tariff refunds. Free cash flow was EUR 72 million versus EUR 66 million in the prior-year period. Large Scale sales were EUR 542 million, down 5%, and Home & Business Solutions sales were EUR 145 million, up 25%. EBITDA margin was 13%, reported EBIT margin was 9%, net working capital was EUR 178 million with a 12% ratio, and net cash was EUR 245 million at end-June. Full-year 2026 guidance was raised to revenue of EUR 1.625 billion to EUR 1.725 billion and EBITDA of EUR 180 million to EUR 230 million. Management said Q3 should improve sequentially versus Q2 and Q4 is planned to be the strongest quarter.

Jürgen Reinert framed the quarter as evidence that SMA’s restructuring and commercial recovery are working, saying the company is moving from restructuring toward a more scalable operating model. He emphasized that the remaining savings actions toward the EUR 250 million target are defined and on track, and that the new product launches in HBS and Large Scale reinforce SMA’s shift from components to integrated energy solutions. His tone was upbeat but measured, repeatedly noting that the new products, regulatory changes, and data-center demand are promising, while also saying it is still early to quantify their full impact.

Kaveh Rouhi highlighted that tariff refunds had a meaningful but transparent impact on H1 results: minus EUR 22 million of sales, EUR 41 million reversed in COGS, about EUR 19 million of EBIT improvement, and EUR 42 million of cash benefit including interest. He pointed to net working capital falling to EUR 178 million from EUR 213 million at year-end, net cash rising to EUR 245 million, and net CapEx at EUR 10 million, which supported free cash flow of EUR 72 million. He also noted that the HBS one-off from selling previously written-down inventories contributed EUR 22 million, while the updated full-year outlook reflects better market conditions, improved FX, and the reduced risk around tariff refunds.

Analysts focused on whether the record Large Scale order momentum was sustainable, especially given data-center exposure and project timing, and management said momentum should remain strong though not necessarily at Q2’s record level. On the U.S. regulatory backdrop, management said the FCC changes are broadly supportive, most of SMA’s current U.S. products already have authorization, and they do not plan inverter manufacturing in the U.S. for now. Questions on HBS breakeven pressed management on the needed sales level and timing; Kaveh said the target is still around EUR 350 million to EUR 400 million in annual sales depending on mix, but it is too early to commit to breakeven in Q3 or Q4 and the current plan is to reach breakeven next year.