SMA cuts sales guidance due to supply chain challenges, project pushbacks

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
A shortage of electrical components had a minor impact on the company’s sales in H1. Image: SMA Solar Technology.

Inverter supplier SMA Solar Technology has lowered its revenue and earnings guidance for the remainder of the year due to the undersupply of electronic components.  

CEO Jürgen Reinert said that as a result of recent delivery cancellations, the situation has “worsened significantly” for the company in the short term, adding: “We are also seeing that project developers and investors are postponing the implementation of larger PV projects until the following year.”

SMA’s board now expects 2021 sales to be €980 million – €1,030 million (US$1,158 million – US$1,217 million), down on the firm’s previous guidance of €1,075 million – €1,175 million. Full-year EBITDA is expected to be €50 million – €65 million, compared to the earlier €75 million – €95 million forecast.

Despite warning of potential delivery capacity constraints for the remainder of the year, SMA had confirmed its previous sales and earnings guidance in its H1 results statement, published last month.

“We are in intensive contact with our partners on the supplier side in order to develop suitable solutions to secure deliveries and to compensate for delivery delays as far as possible in the coming weeks,” Reinert said.

The company continues to expect H2 sales to be higher than those in H1, when sales declined 5% year-on-year to €488.3 million (US$573.1 million). It said this was down to a reluctance among small and medium-sized businesses to invest early in the year because of uncertainties surrounding COVID-19.

SMA said in its H1 results announcement that while it maintained supply chains in the first half, a shortage of electronic components had a “minor overall impact” on sales. Nonetheless, H1 EBITDA of €38.1 million was up 59% on the same six months last year.

Supply chain challenges were also recently noted by Enphase Energy, which is adding new suppliers of drivers used in its flagship microinverter products. In its second-quarter results announcement, the company said supply constraints were impacting the rollout of its IQ8 microinverters.

Elsewhere, module manufacturers have also been affected by supply chain bottlenecks, with Meyer Burger missing components required for the full ramp-up of its plants in Germany and Maxeon Solar Technologies revealing last month it may not be able to deliver some products to customers on time due to raw materials and components supply issues.

Read Next

September 14, 2021
The US solar industry is set to continue breaking annual installation records in the coming years despite supply chain constraints that have led to higher prices as well as disruptions caused by the government’s withhold release order (WRO), according to new research.
September 1, 2021
Solar manufacturer Tongwei increased the prices of its cells for the second time in a month on Monday, with polysilicon pricing also edging upwards this week.
September 1, 2021
The new edition of PV Tech Power is now available to download, including comprehensive coverage of supply chain issues disrupting the solar sector, learnings from our bankability ratings and much more.
PV Tech Premium
August 25, 2021
US solar companies have called upon the Biden administration to excise caution as a number of trade barriers risk threatening the supply of solar modules to the country just as deployment is set to accelerate.
August 23, 2021
Solar construction firm iSun expects to double its revenue in 2021 compared to last year despite supply chain delays and labour shortages impacting its Q2 performance.
August 19, 2021
Size, scale and vertical integration are imperative for success in the richly competitive US solar market as a result of its maturation and evolving customer base, the CEO of Arevon Energy, the US renewables platform spun out of Capital Dynamics, has said.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
Solar Media Events
December 1, 2021