Germany-based solar energy equipment supplier SMA Solar Technology reported sales of €686.6 million (~$789.6 million) for the first half (1H) of 2026, up 0.3% year-over-year (YoY) from €684.9 million (~$787.6 million).

The figure included a €22.3 million (~$25.6 million) reduction in sales related to reimbursements of U.S. customs duties. Excluding this effect, sales stood at €708.9 million (~$815.2 million).

Sales in the Home and Business Solutions division increased 24.5% YoY to €144.5 million (~$166.2 million) from €116.1 million (~$133.5 million), driven by higher demand. The division accounted for 21% of SMA Group’s total sales, compared with 17% in the same period last year.

The Large Scale and Project Solutions division reported sales of €542.1 million (~$623.4 million), down 4.7% compared with €568.8 million (~$654.1 million) in 1H 2025. The decline was primarily attributed to U.S. customs duty reimbursements, as the repayment of duties previously passed on to customers was recorded as a reduction in sales. The division contributed 79% of SMA Group’s total sales, compared with 83% a year earlier.

During the first half of 2026, SMA sold 8,985 MW of inverter capacity, up 7.9% from 8,327 MW in 1H 2025. The company’s export ratio stood at 73.7%, compared with 79.6% in the corresponding period last year.

SMA generated 47.3% of its external sales before sales deductions in Europe, the Middle East, and Africa, 34.9% in North and South America, and 17.8% in the Asia-Pacific region. The corresponding shares in 1H 2025 were 48.6%, 32.7%, and 18.8%, respectively. The company’s main markets during the reporting period were the U.S., Germany, Great Britain, and Australia.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to €88.3 million (~$101.5 million) compared with €9.1 million (~$10.5 million) in 1H 2025, an increase of 872.6%. The EBITDA margin improved to 12.9% from 1.3%.

Net income came in at €72.8 million (~$83.7 million), reversing a net loss of €42.4 million (~$48.8 million) in the corresponding period last year.

Earnings per share stood at €2.10 (~$2.42), compared with a loss per share of €1.22 (~$1.40) in 1H 2025.

As of June 30, 2026, SMA Group’s order backlog stood at €1.75 billion (~$2.01 billion), compared with €1.16 billion (~$1.33 billion) a year earlier, following record order intake in the Large Scale and Project Solutions division during the second quarter. The backlog was concentrated primarily in that division and included battery energy storage system projects attributable to Altenso.

Of the total order backlog, €1.43 billion (~$1.64 billion) was attributable to the product business, compared with €848.3 million (~$975.5 million) as of June 30, 2025. The service business accounted for €325 million (~$373.8 million), up from €313.1 million (~$360.1 million), and was primarily related to paid warranty extensions with terms ranging from five to ten years.

SMA is also targeting rising electricity demand from data centers. Management said during the earnings call that the company had secured its first U.S. data-center project and expects further orders. It said SMA’s grid-forming technology and integrated solar-plus-storage offering position the company to address growing power demand from data centers and artificial intelligence applications.

Management said production capacity is currently not a constraint in either division. However, SMA is seeing longer lead times and higher prices for key materials and components, including copper, aluminum, steel, and printed circuit boards.

In the U.S., SMA does not currently plan to manufacture inverters locally. Instead, it is relying on local integration and transformer sourcing. Management said these activities account for roughly half of the sales price or cost of its solutions and believes its existing supply-chain and local-integration setup positions it well for evolving U.S. requirements.

SMA also sees regulatory developments in Europe and the U.S. as increasingly supportive of trusted technology providers. Management said resilience of critical energy infrastructure, cybersecurity, and secure supply chains are becoming more important procurement considerations alongside performance and cost.

In Europe, SMA said implementation of the Net-Zero Industry Act is beginning to translate into procurement activity, citing initial tenders in Italy, Spain, and France, with Germany expected to follow. Management said the growing emphasis on sustainability, supply-chain transparency, and resilience could favor suppliers such as SMA with an established European manufacturing base and transparent supply chains.

In the U.S., management said the Federal Communications Commission expanded its Covered List framework at the end of July to include certain foreign-produced power and hybrid inverters. SMA said the vast majority of its products currently on the U.S. market already hold FCC authorization and are therefore not directly affected, with the framework primarily affecting future product approvals.

SMA believes the regulatory direction could strategically support its Large Scale and Project Solutions business, where cybersecurity, trusted technologies, and resilient supply chains are becoming increasingly important procurement criteria. Management expects a more limited impact on the Home and Business Solutions division.

Outlook

SMA raised its full-year 2026 sales and earnings guidance in July. The company now expects sales of €1.625 billion (~$1.87 billion) to €1.725 billion (~$1.98 billion) and EBITDA of €180 million (~$207 million) to €230 million (~$264.5 million).

It had previously projected sales of €1.608 billion (~$1.85 billion) to €1.675 billion (~$1.93 billion) and EBITDA of €137 million (~$157.6 million) to €180 million (~$207 million).

The revised guidance reflects lower risks compared with the beginning of the fiscal year and improved operating conditions across both divisions. SMA expects a stronger second half for the Large Scale and Project Solutions division and cited a more favorable U.S. dollar exchange rate trend and earlier-than-expected refunds of U.S. tariffs as supporting factors.

The company also expects improved sales in the Home and Business Solutions division during the second half, supported by higher order intake during the second quarter. Earnings are expected to benefit from cost reductions under the restructuring and transformation program and further planned reversals of inventory write-downs arising from targeted sales initiatives.

SMA expects to sell between 20 GW and 23 GW of inverter capacity in 2026. It also forecasts EBIT of €130 million (~$149.5 million) to €180 million (~$207 million), an EBITDA margin of 11.1% to 13.3%, and an EBIT margin of 8% to 10.4%. Capital expenditure is expected to be approximately €40 million (~$46 million), while net cash is projected at around €250 million (~$287.5 million).