10 March 2026

Somero^® Enterprises, Inc.

("Somero" or "the Company" or "the Group")

Final Results

Somero Enterprises, Inc. reports its annual results for the twelve months ended 31 December 2025.

Financial Highlights

Operational Highlights

Post-Period Highlights

Notes:

1. The Company uses non-US GAAP financial measures to provide supplemental information regarding the Company's operating performance. See further information regarding non-GAAP measures below.

2. Adjusted EBITDA as used herein is a calculation of the Company's net income plus tax provision, interest expense, interest income, foreign exchange loss, other expense, depreciation, amortization stock-based compensation and non-cash lease expense.

3. Adjusted net income as used herein is a calculation of net income plus amortization of intangibles and excluding the tax impact of stock option and RSU settlements and other special items.

4. Net cash is defined as cash and cash equivalents less borrowings under bank obligations exclusive of deferred financing costs.

Tim Averkamp of Somero, said:

"FY 2025 underscored the resilience of Somero's business model.  Despite ongoing macroeconomic uncertainty, we delivered a disciplined performance, measures to protect profitability, and made meaningful progress in the development of our long‑term strategy.  Our focus remained clear: safeguarding the core business while continuing to invest for future growth.

 Innovation remained central to our approach, with several new product launches during the year delivering impactful results, including our first electric boomed screed, the next‑generation S‑15EZ, and the Hammerhead ride‑on screed.  These products are expanding our addressable market, strengthening our international footprint, and positioning the Company well as customer confidence begins to recover.

As I reflect on my first year as Chief Executive Officer, I am excited to be part of Somero and would like to thank our employees around the world for their commitment, professionalism, and resilience throughout the year.  As we mark more than 40 years of Somero's history, this milestone reflects the dedication of our people, the trust and loyalty of our customers, and the support of our partners who have helped build the Company over four decades.  While customers remain prudent in the near term, sentiment toward 2026 is showing early signs of improvement.  With a refreshed strategy in action and disciplined operating and growth platform, I am confident that the future for Somero is bright."

Final Results Investor Presentation

As part of its engagement with investors, management will host a live virtual presentation and Q&A on 17 March 2026 at 17:15 GMT.

To register to attend, please use the following link: https://www.investormeetcompany.com/somero-enterprise-inc/register

Questions can be submitted pre-event via the Investor Meet Company platform up until 9am the day before the meeting or at any time during the live presentation. A recording will be made available following the conclusion of the presentation.

Notes to Editors:

Somero Enterprises provides industry-leading concrete-leveling equipment, training, education and support to customers in over 90 countries. The Company's cutting-edge technology allows its customers to install high-quality horizontal concrete floors faster, flatter and with fewer people. Somero® equipment that incorporates laser-technology and wide-placement methods is used to place and screed the concrete slab in all building types and has been specified for use in a wide range of commercial construction projects for numerous global blue-chip companies.

Somero pioneered the Laser Screed® market in 1986 and has maintained its market-leading position by continuing to focus on bringing new products to market and developing patent-protected proprietary designs. In addition to its products, Somero offers customers unparalleled global service, technical support, training and education, reflecting the Company's emphasis on helping its customers achieve their business and profitability goals, a key differentiator to its peers.

For more information, visit www.somero.com

Chairman's and Chief Executive Officer's Statement

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$ 17.8m (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. 

End markets and competitive position

Long-term fundamentals for private non-residential construction remain supported by structural demand drivers such as onshoring, data centers, warehousing and logistics, power generation, battery plants and semiconductor manufacturing. However, in 2025, tariffs and policy uncertainty, interest rates and credit conditions, labor availability and geopolitical tensions continued to weigh on project activity and equipment purchasing, with the impact most pronounced on larger projects and demand for Boomed screeds.

Toward the end of 2025, a range of broad-based market indicators pointed to stabilization, including steadier US private non-residential construction spending and improving contractor sentiment and backlog measures.  While these indicators are not necessarily directly correlated with our trading, they are positive, and consistent with what we are hearing from customers.  Entering FY 2026, customers report healthy bidding activity and backlogs, although caution persists.

Against this backdrop, we remain confident in Somero's competitive positioning. The landscape has not changed materially, and we believe Somero retains a clear market-leading position. There are higher levels of competitor activity in certain international markets, particularly in Europe and we are responding by executing on strategic initiatives focused on continuing to invest in innovation, strengthening our sales and dealer channels and expanding our European customer support platform. This includes leveraging our Belgium service center and the recent launch of the Somero Concrete Institute in Belgium, improving customer proximity and supporting growth in training, parts and service revenues.

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.

Product Review

Demand across our product categories is driven by the mix of project types and applications in the non-residential market, which can shift by region and over time. As a result, our product mix and order patterns naturally fluctuate.

In 2025, lower industry activity impacted volumes across most product categories. Boomed screed sales decreased 19% to US$ 34.8m (2024: US$ 43.1m) and ride-on screed sales decreased 21% to US$ 16.1m (2024: US$ 20.3m). Sales of 3D Profiler Systems and remanufactured machines decreased 27% and 18%, respectively.

SkyScreed 36, introduced in 2019, continues to target the high-rise structural segment where we see significant long-term potential. Sales were US$ 0.3m in 2025 (2024: US$ 0.4m). As with many new categories, adoption remains gradual and near-term volumes can be uneven as the solution gains wider acceptance.

Parts and service revenue was more resilient, albeit declining to US$ 17.0m (2024: US$ 19.1m), mainly in North America, Australia, and Rest of World, commensurate with overall volume declines in those regions. In Europe, parts and service revenue remained relatively stable, supported by our in-region service and training capability, which continues to receive positive customer feedback and supports ongoing customer retention and aftermarket demand.

For further product and geographic revenue details, see footnote 14.

Cashflow and Balance Sheet

Operating cash flow in 2025 was slightly above the prior year at US$ 17.8m (2024: US$ 17.6m), with lower profits offset by higher advance customer deposits, favorable impact of new US tax legislation, and lower capex expenditures and interim dividend payout.

Capital expenditure was US$ 0.8m (2024: US$ 2.4m), relating primarily to on-going product software programs and other routine investments. Dividends of US$ 9.3m (2024: US$ 15.8) were paid, reflecting the Company's ongoing commitment to disciplined return of cash to shareholders, alongside US$ 2.6m share repurchases under the 2025 and residual 2024 buyback programs.

Net cash at 31 December 2025 was US$ 33.2m (31 December 2024: US$ 29.5m) after the dividend payments, leaving the Company with ample liquidity to support operations and strategic investments. The balance sheet remains debt-free with access to an unutilized US$ 25.0m secured revolving line of credit, providing a strong platform for future growth.

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

Somero Concrete Institute Europe Launch

2.   Innovate - Advancing technology and product development to expand our addressable market and reinforce category leadership

2025 Product Development & Portfolio Expansion

Advanced digital capability and telematics to enhance customer experience, utilization, uptime, remote diagnostics and aftermarket opportunity

2026 Product Development & Portfolio Expansion

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

Capital Allocation & M&A Framework

Although implementation remains in its early stages, initiatives are advancing positively. The Board expects to continue refining priorities as programs mature and to provide updates on milestones and outcomes as appropriate.

Capital Allocation, M&A Framework, Dividends and Share Buyback

Capital Allocation

1. Maintain a strong balance sheet

2. Invest in the business

3. Strategic acquisitions

4. Return capital to shareholders

¹ Subject to ongoing Board approval

M&A Framework

Framework & Activity

Strategic Filters

Financial Criteria

Dividends

Reflecting the Group's FY 2025 performance, strong financial position, and outlook for 2026, the Board has declared a final FY 2025 ordinary dividend of US$ 0.0624 per share.  The final dividend is calculated using the Board -approved payout ratio of 50% of adjusted net income, after considering the Company's expected cash requirements.  Together with the interim dividend of US$ 0.0400 per share paid in October 2025, this brings the total FY 2025 ordinary dividend to US$ 0.1024 (2024: US$ 0.1693 per share).  The final 2025 ordinary dividend will be payable on May 8, 2026, to shareholders on the register at April 10, 2026 and the common stock will trade ex-dividend on April 9, 2026. 

Share Buyback

In 2025, the Company repurchased 856,785 shares under its share buyback program, which is intended to offset dilution from ongoing equity award programs (2024: 608,918 shares). The maximum price paid per share is no more than the higher of 105% of the average middle market closing price for the five business days preceding the repurchase, the price of the last independent trade, and the highest current independent purchase bid. Shares repurchased are intended to be cancelled and the Company will make further announcements as and when purchases are made.

The Board has also approved a 2026 share buyback program of up to US$ 4.0m, to mitigate future dilution from share issuances under the Company's equity award programs and fund opportunistic share buybacks in accordance with the Company's capital allocation framework.

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

Notes:

1. Adjusted EBITDA and Adjusted net income are not measurements of the Company's financial performance under US GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with US GAAP or as an alternative to US GAAP cash flow from operating activities as a measure of profitability or liquidity. Adjusted EBITDA and Adjusted net income are presented herein because management believes they are useful analytical tools for measuring the profitability and cash generation of the business. Adjusted EBITDA is also used to determine pricing and covenant compliance under the Company's credit facility and as a measurement for calculation of management incentive compensation. The Company understands that although Adjusted EBITDA is frequently used by securities analysts, lenders, and others in their evaluation of companies, its calculation of Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.

2. Adjusted EBITDA as used herein is a calculation of net income plus tax provision, interest expense, interest income, foreign exchange gain (loss), other expense, depreciation, amortization, stock-based compensation, and non-cash lease expense.

3. Adjusted net income as used herein is a calculation of net income plus amortization of intangibles and excluding the tax impact of stock option and RSU settlements and other special items.

4. The Company uses non-US GAAP financial measures to provide supplemental information regarding the Company's operating performance. The non-US GAAP financial measures presented herein should not be considered in isolation from, or as a substitute to, financial measures calculated in accordance with US GAAP. Investors are cautioned that there are inherent limitations associated with the use of each non-US GAAP financial measure. In particular, non-US GAAP financial measures are not based on a comprehensive set of accounting rules or principles, and many of the adjustments to the US GAAP financial measures reflect the exclusion of items that may have a material effect on the Company's financial results calculated in accordance with US GAAP.

Notes:

1. Adjusted EBITDA and Adjusted net income are not measurements of the Company's financial performance under US GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with US GAAP or as an alternative to US GAAP cash flow from operating activities as a measure of profitability or liquidity. Adjusted EBITDA and Adjusted net income are presented herein because management believes they are useful analytical tools for measuring the profitability and cash generation of the business. Adjusted EBITDA is also used to determine pricing and covenant compliance under the Company's credit facility and as a measurement for calculation of management incentive compensation. The Company understands that although Adjusted EBITDA is frequently used by securities analysts, lenders, and others in their evaluation of companies, its calculation of Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.

2. Adjusted EBITDA as used herein is a calculation of the Company's net income plus tax provision, interest expense, interest income, foreign exchange gain (loss), other expense, depreciation, amortization, stock-based compensation, and non-cash lease expense.

3. Adjusted net income as used herein is a calculation of net income plus amortization of intangibles and excluding the tax impact of stock option and RSU settlements and other special items.

4. The Company uses non-US GAAP financial measures in order to provide supplemental information regarding the Company's operating performance. The non-US GAAP financial measures presented herein should not be considered in isolation from, or as a substitute to, financial measures calculated in accordance with US GAAP. Investors are cautioned that there are inherent limitations associated with the use of each non-US GAAP financial measure. In particular, non-US GAAP financial measures are not based on a comprehensive set of accounting rules or principles, and many of the adjustments to the US GAAP financial measures reflect the exclusion of items that may have a material effect on the Company's financial results calculated in accordance with US GAAP.

Revenues

The Company's consolidated revenues decreased by 19% to approximately US$ 88.9m (2024: US$ 109.2m). The Company's revenues consist primarily of sales from Boomed Screed products, which include the S-28EZ, S22-EZ, S-15R, S-15EZ, SRS-6, SRS-4, and SRS-4e Laser Screed machines, sales from Ride-on Screed products, which are drive through the concrete machines that include the S-485, S-940, S940e, Hammerhead, and S-158C Laser Screed machines, remanufactured machines sales, 3-D Profiler Systems, parts and service, and other revenues which consist of revenue from sales of other equipment, training and shipping charges. 

Boomed Screed sales decreased to approximately US$ 34.8m (2024: US$ 43.1m), Ride-on Screed sales decreased to approximately US$ 16.1m (2024: US$ 20.3m), remanufactured machine sales decreased to approximately US$ 5.8m (2024: US$ 7.1m), 3-D Profiler System sales decreased to approximately US$ 7.0m (2024: US$ 9.6m) all decreases due as unit volume declines.  Parts and service revenue decreased to approximately US$ 17.0m (2024: US$19.1m) declining to a lesser extent aided by the addition of the Belgium sales and service center.  All other revenues decreased to approximately US$ 8.3 (2024: US$ 10.0m) with declines across most products.

Sales to customers located in North America contributed 77% of total revenue (2024: 75%), sales to customers in Europe contributed 10% (2024: 14%), sales to customers in Australia contributed 6% (2024: 6%) and sales to customers in ROW (Latin America, India, China, Middle East, Korea and Southeast Asia) contributed 7% (2024: 5%%).

Sales in North America totaled approximately US$ 68.1m (2024: US$ 82.2m) down 17%, primarily driven by a decrease in Boomed Screeds, Ride-on Screeds and 3-D Profiler Systems.  Sales in Europe were approximately US$ 8.9m (2024: US$ 14.6m) down 39%, driven mostly by a decrease in Boomed Screeds and Ride-on Screeds. Sales in Australia were approximately US$ 5.6m (2024: US$ 6.6m) down 15%, driven mostly by a decrease in Ride-on Screeds.  Sales to customers in ROW were approximately US$ 6.3m (2024: US$ 5.8m), increasing by 9% driven by an increase in Boomed Screeds sold in the Middle East.

Gross profit

Gross profit decreased to approximately US$ 46.2m (2024: US$ 58.8m), with gross margins decreasing to 52% compared to 54% in 2024, reflecting higher input and logistical costs, lower volume scale and unabsorbed overhead, partly offset by a price increase.

Operating expenses

Operating expenses excluding depreciation, amortization and stock-based compensation for 2025 were approximately US$ 29.8m (2024: US$ 32.1m), which is primarily reflective of lower headcount, variable incentive compensation, partly offset by CEO onboarding and related expenses, and lapsing of a bad debt reversal in the prior year.

Debt

As of December 31, 2025, the Company had no outstanding debt.  In August 2022, the Company updated its credit facility to a US$ 25.0m secured revolving line of credit, with a maturity date of August 2027.  The interest rate on the revolving credit line is based on the BSBY Index plus 1.25%.  The Company's credit facility is secured by substantially all of its business assets. 

Provision for income taxes

The provision for income taxes decreased to approximately US$ 5.0m, at an overall effective tax rate of 33%, compared to a provision of approximately US$ 5.2m in 2024, at an overall effective tax rate of 22%. The increase in overall effective tax rate is due to a valuation allowance placed on foreign deferred tax assets.

Earnings per share

Basic earnings per share represents income available to common stockholders divided by the weighted average number of shares outstanding during the period.  Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from the assumed issuance.  Potential common shares that may be issued by the Company relate to outstanding restricted stock units. 

Earnings per common share has been computed based on the following: