German inverter and battery storage specialist SMA Solar has narrowed its full-year guidance for 2026 towards the upper half of its previously raised range after reporting improved financial results for the first nine months of 2026.
Presenting the results today (12 November), chief financial officer Kaveh Rouhi highlighted group sales of €1,161 million (US$1,287 million) for the nine-month period, up from €1,135 million in the same period of 2025.
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This was despite a negative impact in the Large Scale & Project Solutions division from tariff refunds recognised in the second quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to €136 million from €115 million a year earlier, while free cash flow strengthened to €146 million, compared with a negative €16.9 million in the prior-year period.
Divisional performance
SMA said its Home & Business Solutions division delivered a significant improvement in profitability, aided by reversals of inventory provisions and other one-off effects, though it remained loss-making at the EBIT level. The large-scale division continued to generate solid profitability but saw EBIT impacted by reduced capitalisation of R&D costs and one-time warranty and legal provisions recorded in the third quarter.
The company’s order backlog climbed to €1.858 billion as of 30 September 2026, up substantially from €1.282 billion a year earlier, with growth recorded across both divisions and a product order backlog of €1.5 billion providing strong visibility into future revenue.
Guidance towards upper range
SMA narrowed its full-year 2026 guidance for sales to €1,675–1,725 million, up from a previous range of €1,625–1,725 million. This previous range was itself an increase on earlier full-year guidance, which was raised in July from the €1,475 million-1,675 million range off the back of better-than-expected results.
SMA also tightened its EBITDA guidance to €205-230 million, from €180-230 million previously. Management indicated that both HBS and LS sales are expected to remain strong in the fourth quarter, with full-year sales set to exceed 2025 levels.
Beyond the financial results, SMA outlined strategic progress including the opening of its Gigawatt Factory, adding more than 60GW of annual production capacity, and its entry into the fast-growing AI and hyperscale data centre market, where it expects data centre-related revenues to reach mid- to high-double-digit millions of euros in 2027.
The company also pointed to regulatory tailwinds, including softened reforms to Germany’s Renewable Energy Sources Act, which support the residential PV and storage market, alongside ongoing engagement with the EU’s RfG 2.0 grid connection requirements, which it said could create new market opportunities for both its home and large-scale businesses.
“Our business performance during the first nine months confirms our expectations for the full year,” said Rouhi. “Based on the course of business to date and the trends anticipated for the fourth quarter, we expect to reach the upper half of our raised guidance ranges for both sales and EBITDA. At the same time, we are seeing a strong improvement in net cash, which, even after just the first nine months, is significantly higher than the previous year.
“Furthermore, the high order backlog in the Large Scale & Project Solutions division demonstrates our strong positioning in the large-scale systems segment. In addition, the growing importance of battery storage systems is creating further market opportunities for our existing product portfolio, not least with regard to the requirements for data centres.”
