Overview
We finished 2025 strongly, delivering results in line with what we anticipated as the year progressed, following a more challenging first half. We responded decisively to the softer demand backdrop, preserving profitability while continuing to support our customers and execute our strategic priorities. During the year we also completed a smooth leadership transition, with Tim Averkamp appointed Chief Executive Officer. This ensured continuity in the way we run the business, incorporated valuable expertise and viewpoints, and sharpened our focus on execution as we move into the next phase.
Revenue declined 19% to US$ 88.9m (2024: US$ 109.2m) reflecting lower volumes across multiple regions and product categories. Our flexible cost structure and disciplined cost measures supported adjusted EBITDA of US$ 17.5m (2024: US$ 27.7m) and an adjusted EBITDA margin of 20% (2024: 25%). Pricing actions and efficiency gains helped mitigate unabsorbed overhead, with gross margin of 52% (2024: 54%). Cash flow from operations was US$ 17.9m (2024: US$ 17.6m) supported by higher advance customer deposits, benefits from new US tax legislation and lower capex and interim dividend outflows. This translated to a year-end cash balance of US$ 33.2m after returning US$ 9.3m through dividends and US$ 2.6m through share buybacks. Inventory increased primarily due to new products and lower sales volumes, while collections remained strong.
Regional Review
North America
North American sales declined 17% to US$ 68.1m (2024: US$ 82.2m), driven by lower sales of Boomed screeds and 3D Profiler Systems. Revenue from direct sales to new customers represented 17% of total revenue in the region (2024: 23%).
Customers continue to report healthy bidding and robust backlogs, though project starts remain subdued, as previously reported. Importantly, long-term demand drivers in non-residential construction remain intact. Ongoing labor shortages are also reinforcing the need for automation and productivity improvements, which supports demand for our solutions.
Europe
In Europe, sales declined 39% to US$ 8.9m (2024: US$ 14.6m), driven mostly by a decrease in Boomed Screeds and Ride-on Screeds. Revenue from direct sales to new customers represented 36% of total revenue in the region (2024: 32%). Economic conditions in Europe remain subdued but appear to be stabilizing, private investment is cautious amid trade uncertainty and structural pressures including elevated construction costs and labor shortages. Pricing remains competitive as contractors chase limited work, and we remain focused on differentiating through performance and support.
Europe remains a priority market for Somero despite the current demand backdrop. Our Belgium facility, opened in 2024, strengthened regional support through local service and repair capability and now also hosts the Somero Concrete Institute, bringing the same hands-on training program offered in the US to European customers. We see clear demand in the region for a more price-accessible, high-quality laser screed offering. The Hammerhead, introduced in H2 2025, is designed to address that segment and has received positive feedback to date. We are also progressing initiatives to strengthen and expand our dealer channel to broaden our footprint and accelerate adoption across Europe.
Australia
In Australia, revenue declined 15% to US$ 5.6m (2024: US$ 6.6m). Revenue from direct sales to new customers represented 32% of total revenue in the region (2024: 62%).
Looking ahead, non‑residential demand in Australia is, aggregate, expected to hold, although project activity is likely to remain lumpy and sector specific. We remain confident there is further opportunity to deepen penetration in the region as we continue to build awareness and demonstrate the productivity, reliability, and support that underpin Somero’s value proposition.
Rest of World
Our Rest of World region, which includes Latin America, the Middle East, India, Southeast Asia, Korea and China, reported sales of US$ 6.3m (2024: US$ 5.8m), representing a 9% increase. The main contributor to 2025 revenues was the Middle East, which reported sales of US$ 2.2m compared to US$ 0.6m in 2024. As previously stated, given the relatively small base of business in each region, trading tends to fluctuate from period to period.
Strategic Update
Since the introduction of our strategic framework in our interim results, the Company has moved from strategy definition to disciplined execution. While market conditions remain uneven, we have made tangible progress across each pillar of our strategic framework, focused on strengthening the core business, advancing innovation, and positioning the Company for sustainable long‑term growth and superior shareholder returns. The progress we have made on select initiatives is summarised below.
1. Fortify - Reinforcing the foundation of the business to ensure resilience, consistency, and operational discipline across cycles
Operational Discipline and Cost Management
- Took decisive actions in 2025 to align costs with demand while protecting core capabilities
- Improved planning and inventory management helped stabilize margins and preserve cash generation in a softer volume environment
- Embedding lean disciplines, including 6S and workplace organization, and visual management, as a core element of our operating model to drive productivity and support efficient scaling as volumes recover
Somero Concrete Institute Europe Launch
- Launched the Somero Concrete Institute in Belgium, extending our proven U.S. training model into Europe
- Provides hands-on training, technical education and certification aligned with Somero best practice
- Strengthens our European service footprint and supports better machine utilization and aftermarket engagement
2. Innovate - Advancing technology and product development to expand our addressable market and reinforce category leadership
2025 Product Development & Portfolio Expansion
- SRS-4e: electric-powered version of the SRS-4, progressing our electrification roadmap in line with customer demand and sustainability-led adoption. Electrification remains an important part of our long-term agenda
- Hammerhead: expands Somero into the broader small to mid-range contractor segment with a more affordable, easy to use, and high-quality offering, with strong early customer and dealer reception in the US and Europe
- S-15EZ: next-generation mid-sized Boomed screed designed to improve productivity, quality, and ease of use as pour sizes trend smaller and maneuverability becomes more important
2025 Technology Development
Advanced digital capability and telematics to enhance customer experience, utilization, uptime, remote diagnostics and aftermarket opportunity
- Virtual Reality Training Simulation: VR‑based S‑22EZ training with mobile access to enable flexible, remote learning. Improves efficiency, lowers cost, and reinforces technology‑driven customer value.
- Somero Experts App: delivers digital manuals, checklists, and troubleshooting tools to improve uptime and efficiency and simplify operator support and machine management.
- Telematics Offering: Standard telematics on new S‑15EZ, S‑22EZ, and S‑28EZ, harnesses digital technology to turn machine data into actionable insight.
2026 Product Development & Portfolio Expansion
- S-22EZ+: updated “flagship” Boomed screed with 30+ features focused on quality, automation, and ease of use
- Viper walk-behind laser screed: debuted at World of Concrete, designed for tight spaces and on-deck applications
Beyond these launches, our product and innovation pipeline remains active. Each product reflects years of R&D and direct engagement with customers and dealers, giving us confidence that our pipeline is well aligned with real-world demand as end markets evolve. We continue to advance new machines that address customer pain points and enhance productivity, introduce technologies that strengthen both our current and future products, and explore opportunities in adjacent markets where Somero can apply its expertise to broaden its reach.
3. Amplify - Expanding Somero’s reach, broadening market coverage, and deploying capital to drive long‑term value creation
Commercial Coverage and Aftermarket
- Continued to strengthen dealer coverage in domestic and international markets to improve proximity and responsiveness
- Introduced product-specific territory managers to increase specialist support and accountability across key product lines
- This more integrated approach is designed to support adoption, utilization and growth in parts, service and training revenue over the equipment lifecycle
Our People
The Board would like to thank our employees worldwide for their commitment and professionalism throughout 2025. Their skill, flexibility, and focus on customer outcomes helped Somero respond quickly to changing market conditions while continuing to deliver high-quality products and service. This capability is a key differentiator for the Group and supports both our operating model and long-term performance. We remain committed to creating a rewarding environment that invests in development, encourages high standards, and provides opportunities for our people to grow.
Environmental, Social and Governance
The Board considers ESG factors as part of its ongoing oversight of the business, with a focus on the issues most relevant to long-term performance and stakeholder expectations.
A key material topic for Somero is the environmental impact of construction activity and the role our equipment can play in improving efficiency. Independent studies by Colorado State University and Middle Tennessee State University found that use of Somero’s laser screed technology in non-residential slab-on-grade projects can reduce concrete usage and associated construction-phase emissions by approximately 3%.
We continue to progress electrification in line with customer demand, with two electric machines now introduced. Alongside this, we remain focused on training and education for both customers and employees, supporting safer, more productive job sites and improved equipment utilization. Somero also engages with industry associations and trade groups to support best practice across the sector. The Board remains committed to strong governance, including maintaining an appropriately diverse and independent Board composition.
Conclusion and Outlook
Despite a challenging environment, our employees’ skill and dedication drove significant operational progress in 2025, with trading momentum improving in the second half of the year, trading and profitability were in line with revised market expectations. We maintained shareholder returns, launched two new products and a next-generation machine that contributed meaningful revenue, and progressed product development to support further new and next-generation launches in 2026 and beyond.
Looking ahead, the Board continues to see compelling long-term demand fundamentals for US non-residential construction, supported by various end markets. Customers continue to report healthy bidding activity and backlogs, and we expect Europe and Australia to remain contributors, alongside further benefit from our product pipeline. At the same time, uncertainty around tariffs and trade, geopolitical relations, immigration policy, and a still-restrictive monetary environment remain a key constraint on near-term decision-making and project starts.
In support of the Board’s long-term growth agenda, we have committed to targeted investment to drive strategic initiatives. With the planned investments in 2026, we expect an increase in operating costs of approximately US$ 2.0m.
For 2026, the Board expects revenue, profitability, and cash generation to be broadly comparable to 2025. Expansion into a new customer segment, continued execution of strategic initiatives, and steady customer activity are expected to help offset ongoing weakness in large-line Boomed screeds and continued global uncertainty. While some broad-based indicators and customer feedback suggest conditions stabilized toward the end of 2025, we remain cautious in our expectations given the uneven nature of recovery signals across end markets.
Bob Scheuer
Non-Executive Chairman
Tim Averkamp
Chief Executive Officer
10 March 2026
