- Revenue rises 4.0% to €340.9 million, with Home and Business segment up 27.4%.
- Operating EBITDA climbs 67.3% to €24.6 million, margin improves to 7.7%.
- Order backlog grows to €1.41 billion, with guidance lifted to upper range.
SMA Solar Technology AG has reported a solid start to the 2026 financial year, supported by improved performance in its Home and Business Solutions segment and stable delivery in large scale projects.
The Germany based solar technology company recorded revenue of €340.9 million in the first three months of the year, up 4.0% from €327.7 million in the same period in 2025. Growth was driven by a 27.4% increase in the Home and Business Solutions division to €61.4 million, while the Large Scale and Project Solutions segment remained flat at €279.5 million in line with expectations.
Operating EBITDA excluding one off items rose sharply by 67.3% to €24.6 million. Reported EBITDA reached €26.1 million, translating to a margin of 7.7%, slightly higher than 7.5% a year earlier. The improvement was supported by reversals of provisions and inventory related accruals, partly offset by project related commission costs.
EBIT increased to €13.3 million, with margin improving to 3.9%. Performance in the Large Scale and Project Solutions division declined compared to a strong prior year, with EBIT at €33.8 million due to higher customs costs and lower capitalisation of development expenses. Meanwhile, losses in the Home and Business Solutions segment narrowed significantly to €19.6 million, reflecting restructuring progress.
The group posted a net loss of €1.6 million, impacted by deferred tax expenses, compared to a net profit of €5.5 million in the prior year period.
SMA reported an order backlog of €1.41 billion as of March 31, 2026, up from €1.35 billion a year earlier, underlining continued demand for large scale solar and battery energy storage projects. Around three quarters of the backlog is linked to product business, including battery storage projects through its subsidiary Altenso.
Cash flow performance weakened, with free cash flow at negative €27 million compared to €96 million in the first quarter of 2025, driven by restructuring related cash outflows and higher working capital. Net cash stood at €148.2 million, while the equity ratio improved slightly to 28.4%.
Management indicated that market conditions remain volatile due to geopolitical uncertainty, although demand has shown signs of stabilising since March, particularly in residential and commercial solar segments. The company also noted a potential uptick in demand linked to ongoing tensions in the Middle East, though the durability of this trend remains unclear.
Looking ahead, SMA expects stronger revenue contribution from large scale projects in the second half of the year, supported by a robust project pipeline.
The company has refined its full year 2026 outlook and now expects both revenue and EBITDA to fall within the upper third of previously announced ranges. SMA forecasts revenue between €1.48 billion and €1.68 billion and EBITDA between €50 million and €180 million, reflecting improving operational performance and potential tariff related refunds.
Author: Bryan Groenendaal
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