Somero Enterprises Inc. (LSE:SOM) said trading strengthened in the second half of 2025, supported by normal seasonal patterns and the rollout of new and next-generation products, even as full-year sales declined in line with guidance. Newly launched machines, including the S-15EZ and the Hammerhead Laser Screed, generated around $13m of revenue and helped expand the group’s addressable market among low- to mid-range concrete contractors.
For the full year, Somero expects revenue of approximately $88.9m, down from $109.2m in 2024 but consistent with management expectations. Regional performance was mixed, with North America and Europe affected by macroeconomic and geopolitical pressures, Australia returning to more normal levels after a period of exceptional growth, and Rest of World revenues remaining broadly stable. Parts and service income proved more resilient than equipment sales, highlighting progress in building a more recurring revenue base. Adjusted EBITDA is forecast at $17.5m, while year-end cash is expected to reach a stronger-than-anticipated $33.2m, underlining the group’s solid balance sheet.
Looking ahead, management said trading conditions in 2026 are likely to be similar to 2025, with profitability broadly stable amid continued market volatility and softer demand for larger boomed screeds. However, the group believes its ‘Fortify, Innovate, Amplify’ strategy, wider product offering and strong financial position leave it well placed to defend its global leadership position and benefit when construction markets recover.
Overall, Somero continues to demonstrate financial resilience, supported by low debt levels, attractive valuation metrics and ongoing share buybacks. These strengths partially offset the risks associated with declining revenue and cash flow generation, while technical indicators currently point to a broadly neutral share price trend.
More about Somero Enterprises Inc.
Somero Enterprises Inc. operates in the construction equipment sector, specialising in concrete levelling and screeding technology. The company designs and manufactures laser screeds and related products for concrete contractors worldwide, with key markets in North America, Europe, Australia and other international regions. In recent years, Somero has been expanding its reach within the low- to mid-range contractor segment while maintaining a strong global market presence.
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