SMA Solar Technology Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags

Ladies and gentlemen, buckle up! We're diving into the earnings report of SMA Solar Technology AG for the full year 2024, and it's a rollercoaster ride of highs and lows. Let's break it down!

REVENUES BEAT EXPECTATIONS!

First, the good news: SMA Solar Technology AG reported revenues of €1,530.0 million for the full year 2024, which is a 19.7% decrease from the previous year. But hold on, don't let that fool you! The company's Large Scale & Project Solutions segment posted significant sales growth by 39.1% to €1,175.8 million. That's right, folks! This segment is the star of the show, contributing 76.9% of total sales. The segment's EBIT rose significantly to €227.0 million, driven by high sales levels, a profitable product mix, and the sale of a battery storage project by Altenso GmbH. This is a no-brainer! The Large Scale & Project Solutions segment is the growth engine of SMA Solar Technology AG.

EPS LAGS!

Now, the bad news: SMA Solar Technology AG's earnings per share (EPS) decreased to -€3.39, down from €6.50 in the previous year. The company's EBITDA amounted to -€16.0 million, significantly below the previous year's level of €311.0 million. The reasons for this development were lower fixed cost degression due to low sales in the Home Solutions and Commercial & Industrial Solutions segments, increased costs, inventory devaluations, and provisions associated with the restructuring and transformation program. This is a red flag, folks! The company's earnings are under pressure, and it's time to take action.

WHAT'S NEXT?

SMA Solar Technology AG has been working on significantly reducing its cost base and simplifying the corporate structure and corporate management since September 2024. The company plans to merge the two segments Home Solutions and Commercial & Industrial Solutions to form the new division "Home & Business Solutions" in the first half of 2025. This segment is intended to complement the existing "Large Scale & Project Solutions" unit, creating two divisions with strong vertical integration and complete responsibility for profit and loss. Furthermore, corporate functions will be streamlined to make the strategy and performance of the company as efficient as possible, ensuring the required governance and giving the two divisions operational freedom. This is a bold move, folks! SMA Solar Technology AG is taking decisive action to address its challenges and position itself for future growth.

BOTTOM LINE

SMA Solar Technology AG's full year 2024 earnings report is a mixed bag of highs and lows. The company's Large Scale & Project Solutions segment is the star of the show, posting significant sales growth and EBIT. However, the company's EPS and EBITDA are under pressure, and it's time to take action. SMA Solar Technology AG is taking decisive action to address its challenges and position itself for future growth. This is a no-brainer, folks! SMA Solar Technology AG is a company to watch in the renewable energy sector. Stay tuned for more updates!