Somero Enterprises Inc. (LSE:SOM) raised its full-year 2026 guidance after reporting first-half revenue of $48.7 million, an increase of 22% from the same period a year earlier.
The concrete-leveling equipment company said market conditions stabilised and customer activity increased across its regions during the period.
Adjusted EBITDA rose 59%, with the adjusted EBITDA margin increasing by 480 basis points. Somero attributed the improvement to higher sales volumes, pricing measures and operating efficiencies.
Operating cash flow increased to $7.1 million, while the company reported a net cash position of $29.6 million at the end of the first half.
North American Revenue Increases 22%
Revenue in North America rose 22%, supported by demand associated with AI-related data centre construction and sales of Boomed and Ride-on screeds.
Somero also reported revenue growth in Europe, Australia and other international markets.
New customers accounted for 28% of direct machine revenue during the period. The company said recently introduced products, including the Hammerhead Ride-on and new Boomed screeds, contributed to sales.
Somero continues to expand its dealer network and develop its product portfolio as part of its growth strategy.
Company Expands Aftermarket Operations
The group also invested in its aftermarket operations, including service capabilities, fleet management and the development of an e-commerce platform.
Somero is seeking to increase recurring revenue from aftermarket services alongside its equipment sales.
Cash generation during the period allowed the company to fund higher dividend payments and share repurchases. Somero also expanded its share buyback programme.
The company raised its full-year guidance following the first-half performance, while continuing investment in new products and dealer expansion.
Somero is also implementing governance changes intended to increase board independence.
More about Somero Enterprises Inc.
Somero Enterprises Inc. provides concrete-leveling equipment, training and technical support to customers in more than 90 countries.
The company’s laser-based screeds and concrete placement technology are used in the installation of horizontal concrete floors for commercial construction projects.
Somero entered the Laser Screed market in 1986 and develops equipment using proprietary and patent-protected designs. Its operations also include aftermarket services, customer training and technical support.
Leave a Reply