Share Collapses: SMA Solar Shocks Investors With Profit Warning - Additional Uncertainties Due to European And US Elections

Niestetal, Germany - SMA Solar Technology AG published a significant sales and profit warning for the 2024 fiscal year yesterday after the close of trading, shocking investors and causing the share price to plummet.

The Managing Board of the solar group now only expects sales of between €1.55 billion and €1.70 billion (previously: €1.95 billion and €2.22 billion). SMA is adjusting its operating earnings before interest, taxes, depreciation and amortization (EBITDA) to a range of only €80 million to €130 million (previously: between €220 million and €290 million).

According to SMA, one reason for the adjustment of the forecast is the delayed increase in incoming orders due to the continued high inventory levels at distributors and installers, in addition to a persistently volatile market. As a result, sales and earnings development in the Home Solutions and Commercial & Industrial Solutions segments is below expectations. According to SMA, there is also new uncertainty in the market due to the outcome of the European elections and the upcoming elections in the USA on November 5, 2024.

The share price plummeted in early trading and is currently trading down 27.0 percent at €30.18 (08:33 a.m., June 19, 2024, Stuttgart Stock Exchange).

SMA plans to publish its 2024 half-year report as scheduled on August 8, 2024.

Source: IWR Online, 19 Jun 2024