SMA Solar: Tariff Refunds and Data Center Bets Fuel a Turnaround

After a brutal restructuring, SMA is riding record order intake, tariff refunds, and a growing data center pipeline to raise guidance and point to sustainable profitability.

S92.DE · Earnings Call · 2026-08-13

From Restructuring to Rebound

SMA Solar Technology AG's first-half 2026 results marked a clear inflection. The company, which endured a painful restructuring and significant losses in Home & Business Solutions (HBS), reported group EBITDA of EUR 88 million (including one-off effects) versus EUR 9 million a year earlier, and raised its full-year guidance in July. A key driver was the collection of IEEPA tariff refunds from the U.S. Treasury, which contributed roughly EUR 19 million to EBIT and EUR 42 million to cash. Management insists these are not one-offs: “We do not consider the tariff refund effects as true one-off effects since we also did not and do not report the tariff costs as one-offs.” — Kaveh Rouhi, Chief Executive Officer · 2026-08-13 This transparency suggests the company is comfortable with the underlying momentum. The tariff refund narrative is now embedded in the company's operating story, and it came alongside a record order quarter. “we really had a record-high Q2, mainly coming, of course, from Large Scale order intake.” — Jürgen Reinert, Chief Financial Officer · 2026-08-13 Order backlog swelled to EUR 1.75 billion, with Large Scale product backlog at EUR 1.3 billion. This is a stark contrast to a year ago when the company was still bogged down by destocking and pricing pressure.

New Growth Vectors: Data Centers and Regulatory Tailwinds

Beyond the tariff refunds, the company is positioning itself for structural demand shifts. The FCC's expanded covered list for foreign-produced inverters, combined with Europe's Net Zero Industry Act, is creating a favorable environment for a European manufacturer like SMA. But perhaps the most exciting development is the data center opportunity. Jürgen Reinert highlighted:

We are gaining more and more traction and visibility in this attractive market segment and have built up capabilities and offerings accordingly. The first project in the United States is already underway.
Jürgen Reinert, Chief Financial Officer · 2026-08-13

The company is leveraging its grid-forming technology and integrated solutions to address the power needs of AI-driven data centers, a theme that is resonating across the industry. This aligns with global market keywords. data centers is a high-momentum theme across the entire market, and SMA is clearly intent on capturing a share of it. The new U.S. integration facility in Arkansas, built with partner CEP, strengthens local supply chain and responsiveness, further supporting the data center push.

HBS: From Break-even Hope to Real Progress

The Home & Business Solutions segment has been the primary drag on SMA's performance, but the latest quarter shows tangible improvement. Sales grew 25% year-over-year to EUR 145 million, and the division's EBIT improved from minus EUR 129 million to minus EUR 22 million. Kaveh Rouhi acknowledged the improvement but cautioned against premature celebration: “I think it's too early to say. I think we see a good development in order intake, also profitability improves, as you can read in the numbers.” — Kaveh Rouhi, Chief Executive Officer · 2026-08-13 The new product portfolio, including the Sunny Tripower Hybrid X and the SMA Storage M, has been well received, and the order backlog for HBS more than doubled to EUR 100 million. The path to break-even is still ahead. A year ago, the company's guidance was far more pessimistic. In November 2025, Kaveh remarked: “we will not be breakeven next year, obviously not, because there's still much going on.” — Kaveh Rouhi, CEO · 2025-11-13 Now, the company is targeting break-even in 2027, with a clearer view of the cost structure and a more competitive product range. Even earlier, in August 2025, the company was still wrestling with U.S. uncertainty: “the big question is how the U.S. market will react, right?” — Kaveh Rouhi, CFO or Investor Relations (Management) Lead · 2025-08-08 That uncertainty has now been replaced by a tangible catalyst. The Business Solutions segment is also benefiting from the energy management and hybridization trends. The integrated solutions approach is precisely what the market is looking for, and SMA's new offerings are gaining traction. In summary, SMA Solar is emerging from its dark period with a stronger balance sheet, a filled order book, and a credible growth narrative anchored in data centers and regulatory tailwinds. The tariff refunds provided a welcome cash injection, but the real story is the operational turnaround and the strategic pivot toward integrated solutions and high-growth markets.