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Somero sees H2 rebound from new products, strong cash, and steady 2026 outlook.
This article covers information on Somero Enterprises Inc..
LON:SOMLast updated:
Somero’s latest trading update points to a stronger second half of 2025, driven by seasonality and the first commercial impact of new laser screed products. Full-year revenue is expected at US$ 88.9m, down from US$ 109.2m in 2024 but in line with guidance, and adjusted EBITDA is guided to US$ 17.5m.
Cash looks better than expected at year end, helped by advance customer deposits and US tax changes. Management is cautious about 2026, calling for a broadly similar year to 2025, but highlights growing traction in the mid-range contractor segment.
Second-half revenue of US$ 49.1m was up 23.4% on H1, reflecting normal seasonality and a good delivery finish. The next-generation S-15EZ and the new Hammerhead Laser Screed together contributed about US$ 13.0m, a solid showing for launches targeting low- to mid-range concrete contractors.
Operational execution was flagged as “excellent”, with a focus on cost efficiency and order fulfilment globally. In plain English: they shipped what they needed to ship, and kept a tight grip on costs.
| Metric | FY 2025 (est.) | FY 2024 | Comment |
|---|---|---|---|
| Revenue | US$ 88.9m | US$ 109.2m | In line with guidance |
| Adjusted EBITDA | US$ 17.5m | Not disclosed | In line with expectations |
| Year-end cash | US$ 33.2m | Not disclosed | Better than expected |
| H2 revenue | US$ 49.1m | Not applicable | Up 23.4% vs H1 |
| Parts & service revenue | US$ 17.0m | US$ 19.1m | Down 11%, outperforming group decline |
Note: Figures remain subject to audit adjustments.
North America revenue is expected at US$ 68.1m (2024: US$ 82.2m). Customers report more bids and healthy backlogs going into 2026, but purchases have not fully caught up, with uncertainty around tariffs, interest rates, restrictive immigration policies and geopolitical conflicts dampening conversion.
The big-picture read-through is that end-market indicators look better than the purchase orders, which may support a gradual recovery but not a snapback.
Europe should land at US$ 8.9m (2024: US$ 14.6m), with H2 better than H1 but ongoing macro and competitive headwinds. Somero says it is doubling down on the region via greater market awareness, localised product and pricing, and a broader dealer network.
The strategy makes sense: Europe is the second largest market, and distribution reach plus more accessible price points can open doors when sentiment improves.
Australia is expected at US$ 5.6m, down 15% year on year after a strong run during the switch from dealer to direct sales. Management frames this as a return to more sustainable levels following a step-change in capability.
Rest of World comes in at US$ 6.3m (2024: US$ 5.8m), with growth in the Middle East and India offset by Latin America and Southeast Asia. Given the small absolute base per territory, volatility is normal quarter to quarter.
Parts and service revenue, including accessories sold with machines, declined 11% to US$ 17.0m, less than the overall revenue drop. That resilience reflects a push to grow recurring revenue, including the Belgium Sales and Service Center and other initiatives.
Why it matters: services smooth the revenue curve and keep customer relationships sticky, which is useful when capital equipment orders slow.
Year-end cash is guided to US$ 33.2m, better than expected thanks to elevated advance customer deposits, favourable new US tax legislation, and lower capital expenditures and interim dividend payout. The interim dividend amount was not disclosed.
Quick explainer: advance customer deposits boost cash today but represent future delivery obligations, not revenue. Still, a strong cash balance gives Somero room to invest through the cycle and maintain discipline on margins.
Management anticipates continued volatility in 2026. Early signs of improving customer confidence are there, but uncertainty persists.
Two mix trends to watch: first, the expansion into the mid-range contractor segment via the S-15EZ and Hammerhead should make a meaningful contribution. Second, sales of large-line Boomed Screeds continue to trend down from the 2021 peak, as higher interest rates, tariffs and smaller warehouse sizes for final mile logistics dampen large project activity.
Netting those together, the Board expects 2026 trading to be broadly similar to 2025, with commensurate profits and cash generation.
Somero plans to release final results for 2025 on 10 March 2026. Estimates in this update remain subject to audit adjustments.
Dividend details, gross margin, capex amounts and EPS were not disclosed in this trading update.
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