SMA Solar backlog leaps on energy storage demand, lifting shares (updated)
UPDATE 2-SMA Solar backlog leaps on energy storage demand, lifting shares Recasts to focus on order backlog, adds share move and context in paragraphs 3-4, detail on July preliminary announcement in paragraph 10.
Aug 13 (Reuters) - SMA Solar S92G.DE said on Thursday its order backlog expanded by a half over the past year, driven by demand for flexible energy storage systems amid booming AI adoption and data center build-up.
The German supplier of solar power equipment and battery parts reported an end-June order backlog of around €1.75 billion ($2.02 billion), a surge of 50% compared to a year ago.
Shares in SMA, which have gained roughly 70% in value since January, jumped 5.8% by 0602 GMT in early Frankfurt trade.
Demand for energy storage systems is rising as grid bottlenecks in Europe and North America curtail transmission volumes, while U.S. electricity consumption continues to surge.
"Driven not least by data centers and AI applications, electricity consumption is rising, thus increasing the global demand for reliable, sustainable energy," CEO Jürgen Reinert said in a statement.
The company also reported broadly stable half-year sales of €687 million ($792 million).
Sales in its household and business division grew by around a quarter, boosted by demand for rooftop solar panels as households sought to limit the impact of high fuel prices.
Its utility-scale division meanwhile saw a 5% year-on-year fall, mainly because it passed on a U.S. tariff reimbursement of €22.3 million to customers. But the strong order backlog, largely driven by this unit, indicates future sales growth.
SMA last month reported preliminary second-quarter earnings ahead of market expectations and lifted its annual core profit target to between €180 million and €230 million.
($1 = 0.8680 euros)
(Reporting by Danny Callaghan, editing by Milla Nissi-Prussak)
((Email: danny.callaghan@thomsonreuters.com))