Somero Enterprises, Inc. (AIM:SOM) shares tumbled 16% in early trading after the US-based construction equipment maker issued a profit warning, citing weaker-than-expected trading and persistent market pressures.
The company said it now expects revenue for 2025 to come in at around $90 million, down from its previous forecast of $105 million, with earnings (EBITDA) also reduced to about $18 million.
Somero pointed to delays in project starts in the US, its largest market, as customers grow more cautious about new investments, particularly amid ongoing uncertainty around tariffs, high interest rates and restrictive immigration policies.
International demand has also slowed as markets await clarity on future trade deals.
Despite these challenges, Somero remains optimistic about the longer-term outlook, highlighting rising bidding activity and solid demand drivers in data infrastructure, manufacturing, and logistics.
The company is introducing further cost cuts, aiming for $6 million in annual savings, and plans to launch two new products later this year. Management said Somero is well-positioned to recover as market conditions improve.
The shares fell 35p to 190p.