REG - Somero Enterprises - Trading Update

Somero EnterprisesAnnouncement

24/04/2025 07:02

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250424:nRSX9461Fa&default-theme=true

RNS Number : 9461F  Somero Enterprises Inc.  24 April 2025

24 April 2025

Somero Enterprises, Inc.

("Somero" or "the Company")

 

Trading Update

 

Somero® provides the following update on trading for the three months ended
31 March 2025 and on expectations for FY 2025 results.

 

Market conditions and Q1 2025 trading

 

Non-residential construction in the US, the Company's largest market, remains
active, supported by demand from end markets including manufacturing,
warehousing and logistics, data centers, chip factories, and electric vehicle
and battery plants. However, recent developments in international trade
relations and US immigration policies have heightened global uncertainty. This
has exacerbated an already challenging selling environment in the US, where
elevated interest rates remain the primary factor causing project delays and
pauses, alongside broader macroeconomic pressures.

 

While customers continue to report robust bidding levels and healthy project
backlogs, economic uncertainty and a lack of clarity around the timing of
project starts or resumptions are impacting capital investment decisions. As a
result, trading in Q1 was weaker than expected.

 

Cost actions

 

In response to the softer trading environment and consistent with Somero's
agile operating model, the Company has initiated a targeted operational
workforce reduction of approximately 15%. This restructuring, effective
immediately, is limited to areas directly affected by lower sales volumes and
does not currently impact customer-facing teams, future growth functions or
administrative support. Together with a reduction in variable expenses and
tighter cost controls, these actions are expected to partly offset the
profitability impact of lower revenues in 2025. Management will continue to
monitor commercial activities and will reassess its cost structure as
required.

 

Updated FY 2025 guidance

 

In light of these market dynamics, and assuming trading conditions remain the
same through 2025, Somero now expects:

 

 ·         Revenues of approximately US$ 105.0m (previous market consensus estimate: US$
           113.6m)
 ·         EBITDA of approximately US$ 24.0m (previous market consensus estimate: US$
           28.6m)
 ·         Year-end cash of approximately US$ 28.0m (previous market consensus estimate:
           US$ 31.2m)

 

Tim Averkamp, CEO of Somero, said:

 

"Somero has successfully navigated challenging market conditions many times
before, and we are taking measured, proactive steps to do so again. Our
flexible operating model allows us to respond decisively to near-term
uncertainty while continuing to invest in product innovation and other
strategic initiatives that underpin future growth.

 

"The fundamental demand drivers in our core markets remain intact, and we
believe the actions we are taking now will position us to emerge stronger as
conditions improve. Supported by a strong balance sheet, we remain focused on
executing our growth strategy and are confident in Somero's long-term
prospects."

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 as retained as part of UK law by virtue of
the European Union (Withdrawal) Act 2018 as amended. Upon the publication of
this Announcement, this inside information is now considered to be in the
public domain.

 

For further information, please contact:

 

 Somero Enterprises,                                                                                                                                                        www.somero.com (http://www.somero.com)
 Inc.
 Tim Averkamp,                                                                                                                                                             +1 239 210 6500
 CEO
 Vincenzo LiCausi, CFO
 Howard Hohmann, EVP Sales

 Cavendish Capital Markets Ltd (NOMAD and Broker)                                                                                                                          +44 (0)20 7220 0500
 Matt Goode/Seamus Fricker/Trisyia Jamaludin (Corporate Finance)
 Tim Redfern/Harriet Ward (Corporate Broking)

 Alma (Financial Communications Advisor)                                                                                                                                   somero@almastrategic.com (mailto:somero@almastrategic.com)
 David Ison                                                                                                                                                                +44 (0)20 3405 0205
 Rebecca Sanders-Hewett
 Will Merison

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTPKNBBKBKBNQB