SMA Solar sales rise as Europe turns to rooftop panels

• First-quarter sales in the home and business unit reached 61 million euros ($71.5 million), up from 48 million euros in the same period last year
• SMA Solar now expects full-year company-wide sales in the upper third of its 1,475-1,675 million euro forecast range due to geopolitical tensions driving demand
• The EMEA region accounted for approximately three-quarters of residential and commercial sales in Q1, though CFO Kaveh Rouhi cautioned it remains uncertain whether demand will have a sustained impact

Summary

SMA Solar Reports Strong Q1 Growth Driven by European Rooftop Solar Demand

German solar inverter manufacturer SMA Solar announced Thursday that geopolitical tensions stemming from the Iran war have boosted demand for residential and commercial solar equipment across Europe since late February.

Key Financial Data:

• First-quarter sales in the home and business division rose 27% year-over-year to €61 million ($71.5 million), up from €48 million in Q1 2025
• Full-year company-wide sales expected in the upper third of guidance range between €1.475 billion and €1.675 billion
• EMEA region accounted for approximately 75% of residential and commercial sales in Q1

Market Drivers:

European households and businesses are increasingly adopting rooftop solar systems to reduce exposure to higher fuel costs amid energy security concerns. This marks a reversal from 2025, when new European solar installations slowed for the first time in nearly a decade, according to industry lobby SolarPower Europe.

Management Commentary:

CFO Kaveh Rouhi cautioned that uncertainty remains regarding whether the current demand surge will have a sustained impact on the home and business solutions division's sales performance.

Market Implications:

The update signals renewed momentum in Europe's residential and commercial solar sector, driven by geopolitical instability and energy security priorities. The strong Q1 performance and raised sales outlook suggest European markets are pivoting back toward distributed solar solutions. However, the sustainability of this trend remains unclear, presenting both opportunities and risks for investors in the solar equipment sector.