Somero Enterprises (SOM) investor relations material

Executive summary

• Revenue grew 22% year-over-year to $48.7m in H1 2026, with broad-based growth across all regions and most product lines, driven by stabilizing markets and increased customer activity.

• Adjusted EBITDA rose 59% to $10.1m, with margin improving to 20.7% from 15.9% year-over-year, reflecting operational leverage.

• Strong cash generation resulted in net cash of $29.6m and $9.2m returned to shareholders via dividends and buybacks.

• Strategic initiatives under the Fortify, Innovate, Amplify framework delivered increased new customer revenue and successful product launches.

• Governance enhancements included board refresh, staggered terms, and improved shareholder alignment.

Financial highlights

• H1 2026 revenue rose 22% year-over-year to $48.7m; gross margin held at 52.8%.

• Adjusted EBITDA: $10.1m, up 59% year-over-year; margin at 20.7%.

• Net income: $6.7m, up from $2.6m last year; adjusted net income per share: $0.12 (2025: $0.06).

• Operating cash flow up 76% to $7.1m; net cash at $29.6m, no debt.

• Returned $9.2m to shareholders via $5.8m buybacks and $3.4m dividends; interim dividend per share: $0.05.

Outlook and guidance

• Upgraded FY2026 guidance: revenue ~$95m, adjusted EBITDA ~$19.5m, year-end net cash ~$29m, assuming full execution of expanded $12m share buyback.

• Second half expected to be broadly in line with the first, with similar margins and healthy backlogs.

• Guidance considered conservative due to European uncertainties; U.S. outlook remains strong.