REG - Somero Enterprises - Trading Update

Somero EnterprisesAnnouncement

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RNS Number : 8218Q  Somero Enterprises Inc.  29 January 2026

29 January 2026

Somero Enterprises, Inc.

("Somero" or "the Company")

 

Trading Update

 

Solid H2 trading supported by seasonality and new product contribution

 

Somero® provides the following update on trading for the financial year ended
31 December 2025.

 

Trading

 

The Board is pleased to report improved trading in H2 2025, as anticipated,
supported by an uplift in second half seasonality and the positive impact of
new and next-generation product launches. It expects the Company to report FY
2025 revenue of approximately US$ 88.9m (2024: US$ 109.2m), in line with
previous guidance and market expectations, with H2 revenues up 23.4% on H1 to
$49.1m.

 

Customer response to products launched in the second half of the year has been
positive. The next generation S-15EZ and the new Hammerhead Laser Screed,
designed for quality, simplicity and affordability, targeting the low- to
mid-range concrete contractor segment, collectively contributed approximately
US$ 13.0m. A strong finish to the year was supported by excellent operational
performance in fulfilling customer orders globally, alongside continued focus
on cost efficiency.

 

Demand for US non-residential construction was mixed, with positive support
from long-term trends across key end-markets, but this has not fully
translated into customer purchases. Customers report improved levels of
bidding activity and healthy backlogs entering FY 2026, albeit with continuing
uncertainty linked to tariffs, interest rates, restrictive immigration
policies and ongoing geopolitical conflicts. The Board expects to report FY
2025 North America revenues of US$ 68.1m (2024: US$ 82.2m).

 

Revenues in Europe, the Company's second largest market, improved in H2 2025
compared to H1, and the Board expects to report revenues of US$ 8.9m (2024:
US$ 14.6m). While trading continued to be impacted by the same macro-economic
and geopolitical headwinds, competitive pressures and US-related uncertainty
reported previously, Europe remains a priority international market. The
Company is focused on strengthening its presence there through increasing
market awareness, optimizing product and pricing for local markets, and
expanding its dealer network.

 

Australian revenues are anticipated to represent a decline of 15% to US$ 5.6m
(2024: US$ 6.6m). Following a period of exceptional growth post the transition
from a dealer model to direct sales and aided by the addition of key sales and
support personnel, trading in Australia appears to be normalizing to more
sustainable levels.

 

In the Rest of World segment, which comprises regions that each contribute
modest revenue and therefore are susceptible to volatility period-to-period,
the Board expects to report overall relatively consistent sales at US$ 6.3m
(2024: US$ 5.8m). Improvement in the Middle East and India was offset by
declines in Latin America and Southeast Asia.

 

In FY 2025, parts and service revenue, including accessories sold with
machines, declined 11% to US$ 17.0m (2024: US$ 19.1m), a smaller decrease than
overall revenue, reflecting the Company's strategic drive to grow recurring
revenue, including the establishment of the Belgium Sales and Service Center
and other supporting initiatives.

 

The Board expects the Company to report FY 2025 adjusted EBITDA of US$ 17.5m,
in line with previous guidance and market expectations. Year-end cash is
anticipated to be better than expected at US$ 33.2m, as a result of elevated
advance customer deposits, the favorable impact of new US tax legislation, and
lower than expected capital expenditures and interim dividend payout. These
estimates remain subject to any audit adjustments.

 

Strategic Progress

 

The Company has made encouraging progress in delivering against the long-term
strategic framework it outlined at the half-year, with initiatives developed
across the organization and implementation underway. More detail on progress
against our strategic pillars of 'Fortify, Innovate, and Amplify' will be
provided in the FY 2025 results.

 

Outlook

 

The Board anticipates continued market volatility in FY 2026. While there are
early signs of improving customer confidence, uncertainty persists.

 

The Company's strategic initiatives, including expanding the product range to
address the broader mid-range concrete contractor segment, are expected to
make meaningful contributions to FY 2026 trading. Against this, sales of
large-line Boomed Screeds have continued to trend down from the elevated
levels in 2021, with large scale projects continuing to be adversely affected
by interest rates, tariffs, and reduced warehouse sizes for final mile
delivery.

 

With consideration of these factors, the Board expects overall trading in FY
2026 to be broadly similar to that of FY 2025, with commensurate profits and
cash generation.

 

The Board remains confident in the long-term, underlying drivers for Somero's
products which, coupled with the recently implemented strategic initiatives,
renders Somero agile to react to shifting market dynamics. With clear global
market leadership, a strong financial position and a commitment to innovation,
the Board believes it is well placed to capture demand when market activity
strengthens.

 

Somero's final results for 2025 are scheduled for release on 10 March 2026.

 

Tim Averkamp, CEO of Somero, said:

 

"FY 2025 closed out strongly as expected against a backdrop of persistent
near-term uncertainty. We are pleased with the performance of our newer
products which are broadening our addressable market and gaining traction in
the US and European markets.

 

Customers are more optimistic about 2026 but remain cautious. We are staying
close to them and to our teams around the world, delivering with discipline
and consistency, preserving margins and continuing to invest in product
development.

 

Somero has weathered extended periods of market softness before and our
priorities are clear. We are focused on protecting the core strength of the
business, continuing to invest in our product and technology pipeline, and
building the commercial platform to accelerate growth when market conditions
improve."

 

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, Inc.                                         www.somero.com (http://www.somero.com)
 Tim Averkamp, CEO                                                +1 239 210 6500
 Enzo 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 (ECM)

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

 

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