Why SMA Solar Technology (XTRA:S92) Swung to Losses Despite Revenue Growth in Q3 2025

• SMA Solar Technology AG recently reported its third quarter and nine-month earnings for 2025, showing sales growth to €449.88 million and €1.13 billion respectively, but with a much higher net loss of €102.15 million for the quarter and €144.54 million for the nine-month period compared to the previous year.
• This sharp swing from profitability to sizeable losses despite increased revenue points to significant operational or cost pressures challenging the company's financial performance.
• We'll explore how these widening losses, even amid higher sales, challenge the investment outlook and risk assumptions for SMA Solar Technology.

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SMA Solar Technology Investment Narrative Recap

To be a shareholder in SMA Solar Technology today, you have to believe in the company’s ability to restore profitability through cost actions and innovation, despite stronger sales being outweighed by steep losses. The latest results do add immediate weight to worries about operational weakness in Home & Business Solutions, as profit pressure has become the most important near-term risk, at least for now. The main short-term catalyst, execution of restructuring and margin improvement, now has a higher bar to clear in light of these losses.

One recent announcement shaping this narrative was the September 2025 guidance cut, which lowered expected 2025 sales to a range of €1,450 million to €1,500 million from €1,500 million to €1,550 million. This revision, issued before the third quarter report, flagged ongoing uncertainty around core business momentum and echoed today’s evidence of eroding margins, placing more scrutiny on management’s ability to stabilize earnings.

In contrast, investors should pay close attention to the risk that ongoing margin pressure, even with cost measures underway, may not...

Read the full narrative on SMA Solar Technology (it's free!)

SMA Solar Technology's narrative projects €1.5 billion revenue and €104.5 million earnings by 2028. This requires 1.6% yearly revenue growth and a €308.7 million increase in earnings from the current €-204.2 million.

Uncover how SMA Solar Technology's forecasts yield a €18.80 fair value, a 46% downside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community see fair value for SMA Solar Technology ranging from €15 to €110 per share. Their diverse estimates reflect widely different assessments, especially important in light of recent earnings pressures and ongoing challenges in the Home & Business Solutions segment. Consider exploring these varied viewpoints to form your own understanding.

Explore 7 other fair value estimates on SMA Solar Technology - why the stock might be worth less than half the current price!

Build Your Own SMA Solar Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SMA Solar Technology research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free SMA Solar Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SMA Solar Technology's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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