REG - Somero Enterprises - Trading Update

Somero EnterprisesAnnouncement

Yesterday 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250730:nRSd0606Ta&default-theme=true

RNS Number : 0606T  Somero Enterprises Inc.  30 July 2025

30 July 2025

Somero Enterprises, Inc.

("Somero" or "the Company")

 

Trading Update

 

Somero® provides the following update on trading ahead of announcing its
results for the six-month period ending 30 June 2025 on 9 September 2025.

 

Market conditions and H1 2025 trading

 

Long-term demand drivers in non-residential construction remain intact -
including onshoring, data infrastructure (processing, data centers and chip
plants), equipment electrification, EV and battery facilities, manufacturing,
warehousing and logistics, and power generation - and Somero's customers
continue to report high bidding activity and strong backlogs. However, the
market pressures and global uncertainty highlighted previously, including the
ongoing effects of tariffs, restrictive immigration policies and persistently
high interest rates, continue to weigh heavily on activity.

 

In Somero's largest market, the US, the subdued pace of project starts has
caused caution over investment decisions, impacting trading and leading to a
weaker-than-expected June, historically a strong month and a key indicator of
momentum entering H2.  International markets have also slowed as they await
clarity on potential trade deals.

 

H1 2025 trading is therefore expected to be lower than the comparable period
in 2024, and FY 2025 performance is expected to fall below the guidance issued
on 24 April. H2 2025 is anticipated to be stronger than H1, supported by
normal seasonality and contributions from two new products, the Hammerhead by
Somero and the next generation S-15EZ Boomed Screed.

 

The Hammerhead is designed for a broad customer segment that works on small to
medium-scale concrete projects, both residential and non-residential, where
productivity and affordability are prioritized. The S-15EZ Boomed Screed is
geared to medium to large-sized projects, a popular segment, and incorporates
the latest technology and features that improve usability and performance.
 

 

Cost actions

 

In response to the softer trading environment and consistent with Somero's
agile operating model, the Company has initiated further cost reduction
measures totaling US$3.0m on an annualized basis. These include a limited
workforce reduction across both operational and non-operational departments,
cuts to variable expenses, and tighter cost controls. Combined with the cost
reduction announced in the 24 April trading update, total proforma annualized
savings now amount to US$6.0m. These actions are expected to partly offset the
impact of lower revenues on profitability in 2025.

 

Updated FY 2025 guidance

 

In light of these market dynamics, and assuming current conditions persist
throughout the remainder of the year, Somero now expects:

 

 ·         Revenues of approximately US$ 90.0m (previous guidance: US$ 105.0m)
 ·         EBITDA of approximately US$ 18.0m (previous guidance: US$ 24.0 m)
 ·         Year-end cash of approximately US$ 24.0m (previous guidance: US$ 28.0m)

 

Longer-term outlook and updated strategic framework

 

Despite near-term headwinds, the Board remains confident in Somero's medium
and long-term opportunity. The underlying demand and growing pipeline for
large, high-specification buildings - where efficiently placed, laser leveled
concrete floors are fundamental requirements - is only expected to strengthen.
This will inevitably support a recovery in project starts and capital
investment as economic conditions improve.

 

As the clear market leader, with a strong balance sheet, a proven record of
navigating challenging conditions, and a steadfast commitment to innovation
guided by close customer engagement, Somero is well positioned to benefit as
market momentum returns. To ensure the business takes full advantage of the
opportunity, the Board is finalizing an updated strategic framework, which
will be shared alongside the H1 2025 results.

 

Tim Averkamp, CEO of Somero, said:

 

"While ongoing market uncertainty has resulted in project start delays and
soft trading, we are confident in our ability to adapt and emerge strongly
when conditions normalize. Encouragingly, our customers report increasing
bidding activity, which coupled with broader end-market tailwinds, supports
our confidence in the medium-term outlook.

 

"In line with our flexible operating model, we've taken further steps to
reduce costs while staying focused on our long-term objectives. We are excited
to introduce the new Hammerhead and S-15EZ, two key innovative,
customer-driven product offerings, in the second half of 2025, and look
forward to sharing our long-term strategic framework, which will guide our
next phase of growth, in September."

 

 

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
 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  TSTPKCBPPBKDDOB