Stock Markets May 13, 2026 01:57 AM

SMA Solar posts mixed Q1 with stronger orders but misses profit marks

Revenue inches up, margins fall short of estimates even as management lifts full-year targets

By Sofia Navarro

SMA Solar Technology delivered a mixed first quarter: top-line growth and a sizable rise in orders contrasted with EBITDA and EBIT that missed analyst consensus. The company tightened its full-year guidance toward the upper end of prior ranges while reporting a reduction in net cash and negative free cash flow for the quarter.

SMA Solar posts mixed Q1 with stronger orders but misses profit marks

Key Points

  • Revenue rose 4% year-over-year to 2341 million but missed the consensus of 2342 million.
  • EBITDA of 26.1 million and EBIT of 13.3 million fell short of consensus expectations.
  • Order intake increased 60.7% year-over-year to 368 million, with Large Scale orders making up 305 million and backlog at 1.15 billion.

SMA Solar Technology reported first-quarter results that combined rising sales and a healthy pickup in orders with profit measures that missed market expectations.

The German inverter specialist recorded revenue of 2341 million in the quarter, a 4% increase compared with the same period a year earlier. That figure fell narrowly short of the company consensus estimate of 2342 million.

On the earnings front, EBITDA was reported at 26.1 million, below the 28 million consensus by roughly 7%. EBIT came in at 13.3 million against expectations of 15 million. Management said EBITDA in part reflected non-recurring items that lifted the metric by 3.5 million, composed of reversals of inventory write-down accruals and other provision reversals, while a 2 million commission payment partially offset these gains.

Revenue growth was concentrated in the Home and Business Solutions division, which expanded 27.4% to 261.4 million. Company commentary linked this segment strength to higher demand arising from conflict in the Middle East. The Large Scale segment remained essentially unchanged, generating 179.5 million in sales.

Average selling prices moved in two directions: compared with the first quarter of 2025 they were down 3.8%, yet on a sequential basis ASPs rose 19% to 68,143 per megawatt.

Order intake showed notable momentum, increasing 60.7% year-over-year to 368 million, though it was 13.9% lower than in the prior quarter. Orders for the Large Scale business represented the bulk of new bookings, accounting for 305 million. At quarter end the firm reported a book-to-bill ratio of 1.2 times and a product order backlog of 1.15 billion.

Cash flow metrics weakened in the period: free cash flow was negative 27 million for the quarter. Net cash on the balance sheet declined to 148 million from 176 million at the end of 2025.

Looking ahead, SMA refined its 2026 guidance toward the upper third of its previous ranges. The company now targets sales between 1,608 million and 1,675 million, with EBITDA forecast at 137 million to 180 million. The midpoint of the revised sales range equates to approximately a 9% increase versus the prior consensus sales figure of 1,582 million.


Context and implications

The results highlight a split between demand dynamics and near-term profitability. Strong order intake and a larger backlog support revenue visibility, while margin performance and cash flow will be watched closely through the remainder of the year.

Risks

  • Profitability risk - EBITDA and EBIT missed consensus, indicating potential pressure on margins in the near term.
  • Cash flow and balance-sheet risk - negative free cash flow of 27 million and a decline in net cash to 148 million could constrain flexibility.
  • Demand variability risk - although orders rose strongly year-over-year, quarterly orders were down 13.9% sequentially, suggesting short-term volatility in order flow.

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