Shares in Somero Enterprises, Inc. (AIM:SOM) tumbled 14% in the first hour of trading on Thursday after the concrete levelling equipment maker warned of a softer year ahead, citing delayed project starts in the US and heightened global uncertainty.
Despite healthy backlogs and strong demand from industrial sectors like data centres and EV plants, the Florida-based firm said first-quarter trading came in weaker than expected.
Elevated interest rates and mixed signals on trade and immigration policy have prompted customers to defer capital spending, impacting order flow.
To cushion the blow, Somero has moved quickly to cut costs, reducing its operational workforce by 15%, though customer-facing and strategic growth teams remain untouched.
The company is also tightening discretionary spending to protect margins.
With conditions unlikely to improve near term, Somero now expects 2025 revenue of $105 million, down from earlier market expectations of $113.6 million. Forecast EBITDA has been trimmed to $24 million, from a prior estimate of $28.6 million.
The company expects to end the year with $28 million in cash, down slightly from previous guidance, but still signalling balance sheet resilience.
The shares fell 35p to 210p.