Earnings release
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TRADING UPDATE Released : 24/04/2025 07:00 RNS Number : 9461F Somero Enterprises Inc. 24 April 2025 24 April 2025 Somero Enterprises, Inc. ("Somero" or "the Company") Trading Update Somero® provides the following update on trading for the three months ended 31 March 2025 and on expectations for FY 2025 results. Market conditions and Q1 2025 trading Non‐residential construction in the US, the Company's largest market, remains active, supported by demand from end markets including manufacturing, warehousing and logistics, data centers, chip factories, and electric vehicle and battery plants. However, recent developments in international trade relations and US immigration policies have heightened global uncertainty. This has exacerbated an already challenging selling environment in the US, where elevated interest rates remain the primary factor causing project delays and pauses, alongside broader macroeconomic pressures. While customers continue to report robust bidding levels and healthy project backlogs, economic uncertainty and a lack of clarity around the timing of project starts or resumptions are impacting capital investment decisions. As a result, trading in Q1 was weaker than expected. Cost actions In response to the softer trading environment and consistent with Somero's agile operating model, the Company has initiated a targeted operational workforce reduction of approximately 15%. This restructuring, effective immediately, is limited to areas directly affected by lower sales volumes and does not currently impact customer‐facing teams, future growth functions or administrative support. Together with a reduction in variable expenses and tighter cost controls, these actions are expected to partly offset the profitability impact of lower revenues in 2025. Management will continue to monitor commercial activities and will reassess its cost structure as required. Updated FY 2025 guidance In light of these market dynamics, and assuming trading conditions remain the same through 2025, Somero now expects: · Revenues of approximately US$ 105.0m (previous market consensus estimate: US$ 113.6m) · EBITDA of approximately US$ 24.0m (previous market consensus estimate: US$ 28.6m) · Year‐end cash of approximately US$ 28.0m (previous market consensus estimate: US$ 31.2m) Tim Averkamp, CEO of Somero, said: "Somero has successfully navigated challenging market conditions many times before, and we are taking measured, proactive steps to do so again. Our flexible operating model allows us to respond decisively to near‐term uncertainty while continuing to invest in product innovation and other strategic initiatives that underpin future growth. "The fundamental demand drivers in our core markets remain intact, and we believe the actions we are taking now will position us to emerge stronger as conditions improve. Supported by a strong balance sheet, we remain focused on executing our growth strategy and are confident in Somero's long‐term prospects." 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
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Announcement, this inside information is now considered to be in the public domain. For further information, please contact: Somero Enterprises, Inc. www.somero.com Tim Averkamp, CEO +1 239 210 6500 Vincenzo 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 (Corporate Broking) Alma (Financial Communications Advisor) somero@almastrategic.com David Ison +44 (0)20 3405 0205 Rebecca Sanders‐Hewett Will Merison This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END TSTPKNBBKBKBNQB