Somero Enterprises (SOM) Trading Update summary

Market conditions and Q1 2025 trading

• US non-residential construction remains active, driven by manufacturing, warehousing, data centers, and EV/battery plants.

• Global uncertainty has increased due to international trade and US immigration policy changes.

• Elevated interest rates and macroeconomic pressures are causing project delays and a challenging sales environment.

• Customers report strong bidding and backlogs, but uncertainty is delaying capital investment decisions.

• Q1 trading was weaker than expected due to these factors.

Cost actions

• Initiated a targeted operational workforce reduction of about 15%, effective immediately.

• Restructuring focuses on areas impacted by lower sales, sparing customer-facing and growth functions.

• Additional cost controls and reduced variable expenses aim to offset lower revenues.

• Management will continue to monitor and reassess the cost structure as needed.

Updated FY 2025 guidance

• Revenue now expected at approximately $105.0m, down from $113.6m consensus.

• EBITDA forecast reduced to $24.0m from $28.6m consensus.

• Year-end cash projected at $28.0m, compared to $31.2m consensus.