NIESTETAL (dpa-AFX) - The inverter manufacturer SMA Solar has had to set significantly lower targets for the current fiscal year due to weak demand. Earnings before interest, taxes, depreciation and amortization (EBITDA) in 2024 are expected to be only 80 to 130 million euros and thus noticeably below the previous forecast of 220 to 290 million euros, as the Group announced late Tuesday evening in Niestetal, Hesse. The MDax-listed share slumped on Wednesday.

The share price fell by almost 30 percent shortly after the start of trading, reaching its lowest level since spring 2022. The recent downward trend accelerated significantly once again. In the current year, the share has already lost around half of its value.

Analyst Constantin Hesse from investment bank Jefferies was particularly surprised by the extent of the lowered operating earnings target. According to the expert, this is now more than half below the market consensus. He fears that the North Hesse-based company's home business will be in the red again for the first time since 2018.

SMA Solar justified the reduced forecasts with a delayed increase in incoming orders, as customers' warehouses are still full. These would first have to be reduced before new orders could be placed. In addition, there are now uncertainties due to the elections in Europe and the USA.

In particular, business with private and commercial PV systems is not developing as planned, according to the press release. In contrast, large-scale industrial projects managed by SMA are in line with expectations, it said.

The Managing Board now expects earnings of 1.55 to 1.7 billion euros this year - previously 1.95 to 2.22 billion euros were still on the cards. Overall, SMA Solar would be significantly below the previous year's level: For 2023, the company had reported sales of just over 1.9 billion euros and an operating profit of 311 million euros.

Meanwhile, the half-year report is to be published as planned on August 8 /lew/ngu/niw/stk