• Continuing weak market development and declining order intake for residential and commercial systems necessitate further savings and adjustments
• Additional annual savings of more than €100 million identified
• Planned reduction of approximately 300 full-time jobs in Germany and 50 full-time jobs internationally until the end of 2026
• Strategic realignment of the product portfolio, focus on profitable markets, and adjustments to the depth of value creation for some products in the residential and commercial sectors initiated
• Focus on core competencies—cybersecurity, quality, service, and sustainability
• Negotiations with employee representatives to begin immediately

This week, SMA Solar Technology AG announced the expansion of its ongoing restructuring and transformation program. The program launched in September 2024 aims to increase competitiveness and reduce the company’s cost base in the long term.

“In view of the continuing weak market and immense price pressure in the home and commercial sectors, we must expand our ongoing restructuring and transformation program, particularly in the Home & Business Solutions division,” said CEO Jürgen Reinert. “This will result in additional savings of more than €100 million and a further reduction of around 300 full-time jobs in Germany.”

“While the business with solutions for large-scale power plants is developing very well and we have been able to expand our market position, we are currently experiencing a strong decline in new installations in the residential sector compared to 2024—particularly in our core market, Germany,” noted CFO Kaveh Rouhi. “The goal of the expanded restructuring and transformation is to put Home & Business Solutions back on a clear path to success and to ensure the company’s overall performance through balanced development of both divisions.”

“We will restore our competitiveness by focusing even more strongly on our core competencies in the future,” said Reinert. “This includes our technical expertise in the field of cybersecurity and quality and our ability to develop comprehensive solutions in accordance with the highest international and national standards, which also increasingly meet the changing needs of our customers. At the same time, we will increasingly leverage our international presence in the future to optimize our value creation in the area of production.”

“We have achieved a lot in recent months,” added CTrO/COO Olaf Heyden. "Our original savings target is within reach, and we have made the company leaner, more efficient, and more agile. Nevertheless, our journey is not over yet. In view of the current situation, it is imperative that we make further adjustments to our cost base and business model. We will adapt our product portfolio, further streamline and internationalize our production, and realize additional cost-saving potential by the end of 2027.”

The greatest levers for achieving savings potential in the residential and commercial sectors lie in

• the optimization of research and development expenses resulting, among other things, from an adjustment of the product portfolio, greater utilization of the existing Competence Center in India, and a withdrawal from unprofitable markets,
• an adjustment of the production strategy that, through reduced vertical integration in terms of hardware and an expansion of in-house production capacities in Poland, enables stronger internationalization, and
• a more efficient service strategy with improved service times, reduced costs, and adjusted prices.

In addition, further savings potential is to be realized throughout the company, primarily through further streamlining of the Corporate Center and reduction of operating costs.

The company has already begun initial discussions with the employee representative bodies regarding the necessary further job cuts. Official negotiations will begin next Monday and are expected to be concluded in November. SMA plans to begin implementing job cuts in January 2026.

Disclaimer:

This press release serves only as information and does not constitute an offer or invitation to subscribe for, acquire, hold or sell any securities of SMA Solar Technology AG (the “Company”) or any present or future subsidiary of the Company (together with the Company, the “SMA Group”) nor should it form the basis of, or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any member of the SMA Group or commitment whatsoever. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.

This press release can contain future-oriented statements. Future-oriented statements are statements which do not describe facts of the past. They also include statements about our assumptions and expectations. These statements are based on plans, estimations and forecasts which the Managing Board of SMA Solar Technology AG (SMA or company) has available at this time. Future-oriented statements are therefore only valid on the day on which they are made. Future-oriented statements by nature contain risks and elements of uncertainty. Various known and unknown risks, uncertainties and other factors can lead to considerable differences between the actual results, the financial position, the development or the performance of the corporation and the estimates given here. These factors include those which SMA has discussed in published reports. These reports are available on the SMA website at www.SMA.de. The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.