Somero Enterprises (SOM) H2 2025 TU earnings summary

Executive summary

• H2 2025 saw improved trading, driven by seasonality and successful new product launches, with positive customer response and strong operational execution.

• FY 2025 revenue is expected at $88.9m, down from $109.2m in 2024, but in line with guidance and expectations.

• Adjusted EBITDA for FY 2025 is anticipated at $17.5m, matching previous guidance.

• Year-end cash is projected at $33.2m, exceeding expectations due to advance deposits, favorable tax changes, and lower capex and dividend payout.

Financial highlights

• H2 2025 revenues increased 23.4% over H1, reaching $49.1m.

• New and next-generation products contributed $13.0m in H2.

• Parts and service revenue declined 11% to $17.0m, a smaller drop than total revenue.

Outlook and guidance

• FY 2026 trading is expected to be broadly similar to FY 2025, with comparable profits and cash generation.

• Market volatility is anticipated to persist, though early signs of improved customer confidence are noted.

• Strategic initiatives, including product range expansion, are expected to support FY 2026 performance.