Somero Enterprises reports lower revenue and profit, stronger second half

10th Mar 2026 12:05

(Sharecast News) - Somero Enterprises reported lower revenue and profit for 2025 on Tuesday, but said a stronger second half helped deliver results in line with revised market expectations, supported by new product launches and cost measures to protect margins.

The AIM-traded manufacturer of concrete levelling equipment said revenue for the year ended 31 December fell 19% to $88.9m from $109.2m a year earlier.

Adjusted EBITDA declined 37% to $17.5m, while the adjusted EBITDA margin narrowed to 20% from 25%.

Profit before tax dropped 36% to $15.2m, while adjusted net income fell 40% to $11.1m, with diluted adjusted earnings per share decreasing to $0.20 from $0.33.

Operating cash flow remained broadly stable at $17.8m compared with $17.6m in 2024, while net cash increased 13% to $33.2m.

The company paid $9.3m in dividends during the year and completed $2.6m of share buybacks.

Its ordinary dividend for the year was reduced to 10.2 cents per share, from 16.9 cents.

Somero said trading improved in the second half, driven by seasonal factors and the contribution from new products.

North America revenue in the second half rose 14% compared with the first half, while Europe increased 55% and Australia climbed 58%.

New and next-generation products generated $13.0m of revenue during the year.

The firm said it had taken disciplined action to protect profitability, implementing cost measures to offset lower revenue while maintaining an EBITDA margin of 20%.

Operating cash flow benefited from higher advance customer deposits, the impact of new US tax legislation, and lower capital expenditure and interim dividend payments.

Operationally, the company highlighted new leadership appointments, with Tim Averkamp as chief executive and Bob Scheuer as chairman.

Product launches during the year included the SRS-4e, the company's first electric-powered boomed laser screed, the Hammerhead ride-on screed, and the S-15EZ next-generation mid-sized boomed screed.

Following the year-end, Somero said it had made a solid start to 2026, with customers reporting improved activity levels and healthy backlogs, although they remain cautious.

The company said it planned several new product launches, including a next-generation flagship boomed screed and a new walk-behind screed.

Somero also strengthened its European presence with the launch of the Somero Concrete Institute in Belgium to provide training aligned with its US facilities and support aftermarket growth.

The board proposed a final dividend of 6.2 cents per share, taking total ordinary dividends for 2025 to $5.5m including the interim payment.

It also authorised a new share buyback programme of up to $4m to offset equity award dilution and fund opportunistic repurchases.

The company said its outlook for 2026 remained unchanged, with revenue, profitability and cash generation expected to be broadly comparable with 2025.

"2025 underscored the resilience of Somero's business model," said chief executive Tim Averkamp.

"Despite ongoing macroeconomic uncertainty, we delivered a disciplined performance, measures to protect profitability, and made meaningful progress in the development of our long-term strategy.

"Our focus remained clear: safeguarding the core business while continuing to invest for future growth.

"Innovation remained central to our approach, with several new product launches during the year delivering impactful results, including our first electric boomed screed, the next-generation S-15EZ, and the Hammerhead ride-on screed.

"These products are expanding our addressable market, strengthening our international footprint, and positioning the company well as customer confidence begins to recover."

At 1122 GMT, shares in Somero Enterprises were down 1.35% at 212.1p.

Reporting by Josh White for Sharecast.com.