Wedoany.com Report-Nov 15, German inverter maker SMA says it has recorded €1.06 billion ($1.12 billion) of revenue for the first nine months of 2024.

SMA Solar Technology has reported a steep decline in sales and profits for the first three quarters of 2024. Revenue dropped by 26% to €1.06 billion, with a more significant 77% decrease in earnings before interest and taxes (EBIT), from €201.6 million last year to €46 million. It said this decline stems from both reduced sales volume and rising costs.

Weak results in the residential and commercial sectors were partially offset by the large-scale and project solutions segment, which showed robust growth, according to the company.

SMA initiated restructuring in September, cutting up to 1,100 jobs – primarily in Germany – to adapt to market pressures. It said these layoffs led to one-time expenses between €100 million and €140 million, affecting overall profitability.

The company's revised forecast anticipates €1.45 billion to €1.5 billion in sales for 2024.

The company's home solutions segment recorded an EBIT loss of €46.6 million, down from a positive €136.9 million last year.

Its commercial and industrial solutions unit reported a negative EBIT of €77.2 million, worsening from €15.8 million.

However, its large-scale and project solutions segment posted an EBIT increase of 226% to €154.4 million, up from €47.3 million.

CEO Jürgen Reinert noted robust gains in large-scale projects, contrasting with the challenging environment for residential and commercial markets.

SMA said the restructuring aims to position the company as a global system provider, expecting cost savings of €150 million to €200 million, pending approval from employee representatives for final staffing measures.