SMA exceeds management expectations for Q1 2016 by €10 million, year forecast still holds

Facebook
Twitter
LinkedIn
Reddit
Email
An SMA solar-diesel hybrid installation. Image: SMA.

Despite preparing investors’ expectations for flat revenues in 2016, inverter maker SMA Solar Technology has reported an increase in sales for the first quarter and exceeded management expectations by more than €10 million (US$11.4 million).

The company underwent an extensive restructuring process during the past couple of years which necessitated a scaling back of the workforce. It began reporting a return to profitability last year, topping global rankings for inverter revenues in 2015 according to a GTM Research report in March. However, as reported by PV Tech at the time of that publication, SMA slid to third in the rankings for total inverter shipments, behind China’s Huawei and Sungrow.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

In the latest results, sales were reported to have increased to €253.8 million for Q1 2016, a rise of 12.2% over the equivalent period last year, when the tally stood at €226.3 million. The management board had forecast sales to be in the region of €235 million to €240 million.

The largest growth driver was in the commercial segment, SMA said, where year-on-year sales showed an increase of over 50%, while residential and utility-scale sales were “stable” as well as profitable. There were also increases in business in SMA’s operations and maintenance (O&M) business.

The share of sales made outside its home territory of Germany increased even further from 88% in Q1 2015 to 92.4% in the most recent quarter, while overall PV inverter sales totalled 2.1GW, representing an increase from 1.7GW in the first quarter of 2015 of 21.3%.

Gross cash flow was improved from €16.1 million in Q1 2015 to €40.6 million, and net cash from €285.6 million to €323.4 million. Equity ratio moved up slightly from 41.1% to 21.9%, leading the inverter maker to conclude that the company has a “comfortable equity base and…extremely solid balance sheet structure”.

Board confirms forecast for year

The board confirmed forecasts it made in January at its annual analyst day; that it is anticipating sales of €950 million to €1,050 million for this year, with earnings before interest and taxes (EBIT) to be between €80 million and €120 million. SMA said order backlog at the end of Q1 2016 stood at €691.6 million.

SMA also launched its own Tesla Powerwall-compatible bi-directional inverter a few months ago. Senior vice president of hybrid energy and storage integration, Volker Wachenfeld, told PV Tech that the company’s plans for this year include taking a more active role in seeing how solar inverters can provide ancillary services to grid operators in Germany.

“If we want to further increase the share of PV we need to think about the third generation [of SMA inverters], which means more functionality,” Wachenfeld said.

“Primary reserve without batteries is something that’s very interesting. You could use a PV inverter and throttle it down a little bit, so if the sun is [irradiating] 10kW you could operate at 9kW and if additional power is required you could open up the throttle and the inverter could feed in 100%. You lose a little bit of yield but it would be a functionality that’s very similar to a conventional power plant.”

SMA will also be looking to add more ‘virtual power plant’ functionality to residential solutions, so that the systems can be aggregated to form assets that can benefit the grid, Wachenfeld said.

In other notable developments during the quarter, SMA purchased a stake in module-level power electronics (MLPE) maker Tigo Energy.

SMA will be adding more functionality to its inverters both for solar and for solar-plus-storage applications, Volker Wachenfeld told PV Tech. Image: SMA.
21 October 2025
New York, USA
Returning for its 12th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.

Read Next

August 28, 2025
JinkoSolar has sold 41.8GW of PV modules in the first half of the year, despite growing financial losses for its manufacturing subsidiary.
August 26, 2025
Daqo New Energy has posted gross losses of US$81.4 million in Q2 2025, up from losses of US$81.5 million in Q1.
August 22, 2025
AEMO has predicted the NEM will see a steady rise in renewable energy generation capacity, reaching 229TWh by 2035.
August 20, 2025
Solar manufacturer T1 Energy has signed a 437MW module supply agreement with an as-yet undisclosed US utility.
August 20, 2025
New South Wales, Australia's most coal-dependent state, will transition from 40% to 90% renewable energy by 2035, according to grid operator Transgrid's latest planning report.
August 19, 2025
Scatec has reported stable financial results in the second quarter of 2025, with revenue holding steady at NOK2.3 billion (US$220 million).

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines