LONDON (ShareCast) - (Sharecast News) - Somero Enterprises reported a sharp fall in first-half revenue and profits on Tuesday, as challenging market conditions weighed on demand, but it reaffirmed full-year guidance on the back of seasonal improvements and contributions from new products.
Revenue for the six months ended 30 June fell 23% year-on-year to $39.8m, with declines across all major regions.

North America, the company's largest market, was down 18% amid weaker project starts linked to tariffs, high interest rates and restrictive immigration policies.

Europe slumped 51% due to customer caution and geopolitical uncertainty, while Australia fell 34% as growth normalised against skilled labour shortages and tighter monetary policy.

The rest-of-world segment recorded an 11% decline, mainly from lower Latin American volumes.

Adjusted EBITDA dropped 48% to $6.4m, with margins narrowing to 15.9% from 23.8%.

Profit before tax halved to $4.9m, and adjusted net income slid 59% to $3.3m, equal to diluted earnings of $0.06 per share.

Cash generation, however, improved, with operating cash flow rising 41% to $4.1m, supporting a net cash balance of $24.6m at end-June, up 18% year-on-year.

The AIM-traded firm cut the interim dividend in half to $0.04 per share.

Despite the weaker top line, new products contributed $4.2m of revenue, up 36%, including the SRS-4e, the group's first electric-powered laser screed.

Two further launches, the Hammerhead and S-15EZ, are planned for the second half to expand into mid-market segments.

"I am proud of how the company has navigated the challenges presented by the first half of the year," said chief executive Tim Averkamp.

"While macroeconomic uncertainty weighed on performance, our disciplined focus on operational efficiency and the enduring nature of our long-term growth drivers position us well for recovery as market conditions stabilise."

He added that the introduction of three new products this year, including the company's first electric-powered laser screed, underscored its commitment to long-term growth and innovation.

"With two more new products set to debut in the second half, we continue to broaden our customer reach and deepen our international presence."

The board reaffirmed 2025 guidance of around $90m in revenue, EBITDA of $18m and year-end net cash of $24m, expecting performance to improve in the second half, supported by seasonal demand, product launches and sustained customer bidding activity.

At 1416 BST, shares in Somero Enterprises were down 1.51% at 221.6p.

Reporting by Josh White for Sharecast.com.

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