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(Sharecast News) - Somero Enterprises warned on Wednesday that its full-year performance would fall short of earlier expectations after a softer-than-expected first half, with market uncertainty and project delays hampering activity in its core US market.
In a trading update ahead of its interim results, the concrete levelling equipment maker said revenues for 2025 were now expected to be around $90m, down from prior guidance of $105m.
EBITDA was forecast at $18m, compared with the previous estimate of $24m, while year-end cash was now expected to be about $24m versus earlier guidance of $28m.
Somero said that while long-term non-residential construction trends remained supportive, including strong demand for data centres, manufacturing, EV infrastructure and logistics, near-term activity continued to be restrained by macroeconomic pressures, including tariffs, high interest rates and restrictive immigration policies.
In the US, the company's largest market, project starts remained subdued through June, traditionally a key trading month.
International markets also slowed as customers awaited clarity on trade deals.
"While ongoing market uncertainty has resulted in project start delays and soft trading, we are confident in our ability to adapt and emerge strongly when conditions normalise," said chief executive Tim Averkamp.
"Encouragingly, our customers report increasing bidding activity, which coupled with broader end-market tailwinds, supports our confidence in the medium-term outlook."
In response to the weaker trading environment, the company said it had initiated further cost-saving measures totalling $3m annually, including a limited reduction in headcount and tighter controls on operational and variable spending.
Combined with earlier cost actions, total annualised savings now stood at $6m, which were expected to partially offset the impact of lower revenues.
Somero anticipated a stronger second half, supported by seasonal trends and the launch of two new products - the Hammerhead, aimed at small to medium-scale projects, and the next-generation S-15EZ Boomed Screed, designed for medium to large construction sites.
Despite the downgrade, the board reiterated confidence in the long-term outlook, citing a growing pipeline of large-scale, high-specification building projects and ongoing customer demand for high-precision concrete solutions.
A revised strategic framework would be unveiled alongside interim results in September.
At 1413 BST, shares in Somero Enterprises were down 16.67% at 187.5p.
Reporting by Josh White for Sharecast.com.