SMA Solar lowers its 2018 sales guidance again; SolarEdge's annual revenue will surpass SMA Solar for the first time

PV inverter manufacturer SMA Solar Technology has lowered its 2018 revenue and profit forecasts again since October, now expecting sales of between EUR 760 million and EUR 780 million, compared with its previous forecast of EUR 800 million to EUR 850 million. The revenue loss plus the costs of the previously announced restructuring will result in SMA's EBITDA being negative, compared with its previous EBITDA break-even.

“The main reason for SMA’s lowering of its revenue and profit outlook is the continued strong price pressure in November,” said Dr. Jürgen Reinert, CEO of SMA Solar. “We hope to conclude the discussions in the works council on the planned restructuring measures as soon as possible and to implement them from the beginning of next year. In addition, we have already started to launch new products and solutions on the international markets and to intensify our sales program in order to increase sales and achieve positive EBITDA in the following year.” SMA Solar noted that it still expects sales growth and positive EBITDA at the end of fiscal 2019.

What is worrying is that SMA's market share is also being gradually swallowed up by competitors. SolarEdge Technologies has maintained good revenue growth in the past two years while maintaining high gross margins and strong profitability. SolarEdge surpassed SMA Solar for the first time in quarterly revenue data in the third quarter of 2018. SMA Solar has lost market share to competitors such as SolarEdge Technologies.

SMA Solars has again lowered its annual revenue guidance, and compared to SolarEdge's most recent full-year forecast, SolarEdge's annual revenue figure will exceed SMA Solar's for the first time.