SMA Solar Technology AG, a German manufacturer of photovoltaic (PV) and battery inverters, announced plans to reduce its workforce by up to 1,100 jobs as part of a restructuring strategy aimed at addressing persistent challenges in its Home and Commercial and Industrial (C&I) segments.
The company, which reported its results for the first nine months of 2024, also revised its full-year financial outlook, now projecting earnings before interest, tax, depreciation, and amortisation (EBITDA) to be between a loss of EUR 20 million (USD 21 million) and EUR 20 million in profit.
In September, SMA Solar initiated a restructuring process, aiming to achieve cost savings between EUR 150 million and EUR 200 million. The job cuts, set to be implemented by the end of 2025, will impact up to 1,100 full-time positions globally, with approximately two-thirds of the reductions occurring in Germany.
The company's net profit for the nine-month period fell sharply to EUR 34.7 million, down from EUR 180.4 million during the same period in 2023. EBITDA also dropped to EUR 83.5 million, compared to EUR 231.2 million last year. Group sales declined to EUR 1.06 billion from EUR 1.34 billion, with notable reductions in the Home Solutions and C&I Solutions segments, where sales dropped to EUR 147 million and EUR 148.7 million, respectively.
However, SMA Solar's Large Scale and Project Solutions segment showed stronger performance, with sales increasing to EUR 764 million from EUR 517.5 million.
CEO Juergen Reinert emphasized the need for the restructuring, stating that the company's focus would be on making the Home and C&I segments more sustainable while continuing to build on its strength in the Large Scale & Project Solutions business.
SMA Solar also warned of inventory value adjustments and restructuring costs amounting to EUR 100 million to EUR 140 million for the current year, and now expects annual EBIT losses in the range of EUR 100 million to EUR 50 million. The company has lowered its revenue forecast to EUR 1.45 billion to EUR 1.5 billion, down from a previous range of EUR 1.55 billion to EUR 1.7 billion.
