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Investing.com -- Shares of SMA Solar Technology AG (XETRA:S92) fell by 5% as the company reported a decline in first-quarter revenue and earnings, missing analyst expectations. The German solar technology firm saw its revenue decrease by 9.4% compared to the first quarter of the previous year, amounting to €328 million, which fell short of the consensus estimate of €360.3 million.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also dropped to €24.6 million from €49.9 million in the same quarter last year, though it surpassed the consensus estimate of €8.7 million. Earnings before interest and taxes (EBIT) came in at €11.4 million, down from €38.2 million in the previous year, but outperformed the anticipated loss of €7.3 million. Net income similarly declined to €5.5 million from €28.5 million year-on-year (YoY).
SMA Solar attributed the revenue decline primarily to its Commercial & Industrial (C&I) segment, which saw a 63% decrease to €26.3 million, and its Home segment, which experienced a 65% drop to €21.9 million. These losses were partially offset by a 22% increase in its Large Scale segment, which generated €279.5 million. The average selling price (ASP) decreased by 12% compared to the first quarter of the previous year, although it showed a 5.5% quarter-on-quarter increase to €70.8k per megawatt.
Profitability suffered as well, with the first-quarter EBIT margin shrinking to 3.5% from 10.6% YoY, largely due to lower sales in the Home and C&I segments. The Large Scale segment was the only one to drive profits, with an EBIT of €50.3 million or an 18% margin, compared to €41.3 million or an 18.1% margin in the first quarter of the previous year.
Despite the downturn in sales, SMA Solar reported a significant YoY increase in order intake of 96.5%, though orders decreased quarter-on-quarter by 38.2% to €229 million. The company’s product backlog stands at €970 billion.
Looking ahead, SMA Solar provided full-year guidance for 2025 on the lower end of expectations. The company forecasts sales in the range of €1,500 million to €1,650 million, compared to a consensus of €1,531 million, and an EBITDA between €70 million and €110 million, against a consensus of €84.4 million. EBIT is projected to be between €0 and €50 million, compared to analyst expectations of €18.5 million.
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