Interim Results

Somero Enterprises Inc.

08 September 2026

8 September 2026

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as retained as part of UK law by virtue of the European Union (Withdrawal) Act 2018 as amended. Upon the publication of this Announcement, this inside information is now considered to be in the public domain.

Somero^® Enterprises, Inc.

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

Interim Results for the six months ended 30 June 2026

Financial Highlights	H1 2026 US$	H1 2025 US$	% Change
Revenue	$48.7m	$39.8m	+22%
Adjusted EBITDA(1,2)	$10.1m	$6.4m	+59%
Adjusted EBITDA margin(1,2)	20.7%	15.9%	+480bps
Profits before tax	$9.1m	$4.9m	+86%
Adjusted net income(1,3)	$6.6m	$3.3m	+99%
Diluted adjusted net income per share(1,3)	$0.12	$0.06	+100%
Cash flow from operations	$7.1m	$4.1m	+71%
Net cash(4)	$29.6m	$24.6m	+20%
Interim dividend per share	$ 0.05	$ 0.04	+25%

·	Return to growth: revenue up 22% to US$ 48.7m as market conditions continued to stabilize and customer activity increased
·	Significant operating leverage: adjusted EBITDA and margin up 59% and 480bps, respectively, on higher volumes
·	Growth across all regions led by North America (+22%), with strong contributions from Europe (+41%), Australia (+12%) and ROW (+7%)
·	Strong product performance: significant revenue increases from Boomed screeds (+33%), Ride-on screeds (+45%) and the 3-D Profiler System (+55%)
·	Robust cash generation: operating cash flow of US$ 7.1m and net cash of US$ 29.6m at 30 June 2026, after US$ 3.4m of dividends and US$ 5.8m of share repurchases

Strategic and Operational Highlights

·	New customer growth: contribution increased to 28% of total direct machine revenue (H1 2025: 21%)
·	Strong traction from recent products launched: Hammerhead Ride-on and S-15EZ Boomed screed launched in H2 2025 and  S-22EZ+ Boomed screed and Viper Walk-Behind launched in H1 2026, contributing meaningful revenue
·	Innovation agenda progress: launching two new products in January 2026
·	Expanded dealer network: added 7 dealers globally increasing total count to 37
·	Strengthened aftermarket proposition: with dedicated commercial focus, expanded service and fleet-management offerings, and development of an eCommerce platform for parts and support
·	Disciplined capital allocation: completing approximately US$ 5.8m of share repurchases while maintaining a strong balance sheet

Post-Period Highlights and Outlook

·	Strengthened governance: with proposed constitutional changes and Board changes following extensive shareholder consultation
·	Board evolution and refresh: Board changes are expected to increase the proportion of Non-Executive Directors, strengthen independence and accountability, and retain proven executive expertise within the business
·	Share buyback program expanded: from US$ 6.0m to US$ 12.0m
·	Interim dividend increased 25%: to USD$ 0.05 per share
·	FY26 guidance increased: revenue for the full year now expected to be approximately US$ 95m, with adjusted EBITDA of approximately US$ 19.5m and year-end net cash expected to be approximately US$ 29m, assuming the additional US$ 6m share repurchase authorization is fully executed prior to year end

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, CEO of Somero, said:

"We are pleased with Somero's performance in the first half, which reflects the continued stabilisation of our core markets and the progress we are making against our strategic priorities.

"What is particularly encouraging is the breadth of the improvement.  Growth was supported by stronger activity across our markets, increased customer acquisition and good traction from recent product introductions.  This gives us confidence that the investments we have made in innovation, commercial execution, and customer support are strengthening the business and expanding our growth opportunities.

"Customer activity remains healthy and project backlogs continue to provide good visibility, supporting our decision to increase full-year revenue guidance.  While we remain mindful of the wider macroeconomic environment, Somero enters the second half with positive momentum, a strong balance sheet and a clear focus on delivering sustainable long-term growth."

Investor Presentation

As part of its engagement with investors, management will host a live virtual presentation and Q&A on 15 September 2026 at 16:30 pm BST.

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

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.

Enquiries

Somero Enterprises, Inc.                                                                          www.somero.com Tim Averkamp CEO                                                                                       +1 239 210 6500 Vincenzo LiCausi, CFO Howard Hohmann, CCO (Chief Commercial Officer) Cavendish Capital Markets Ltd (NOMAD and Broker) Matt Goode /Seamus Fricker (Corporate Finance)                             +44 (0)20 7220 0500 Harriet Ward (ECM) Alma PR (Financial PR Advisor) somero@almapr.co.uk David Ison                                  +44 (0)20 3405 0205 Rebecca Sanders-Hewett Will Merison

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

Somero delivered a strong first-half performance, returning to growth as market conditions continued to stabilize and customer activity improved. Revenue increased 22% to US$ 48.7m (H1 2025: US$ 39.8m), with growth across all regions and the majority of product categories. 

Higher volumes translated into significant operating leverage, with adjusted EBITDA increasing 59% to US$ 10.1m (H1 2025: US$ 6.4m) and adjusted EBITDA margin improving to 20.7% (H1 2025: 15.9%). Pricing actions, operational efficiencies and disciplined cost management helped offset higher input costs, including commodity surcharges and tariffs, maintaining gross margin at 52.8%.

Cash generation remained strong, with operating cash flow increasing to US$ 7.1m (H1 2025: US$ 4.1m). Net cash at 30 June 2026 was US$ 29.6m (H1 2025: US$ 24.6m), after US$ 3.4m of dividend payments and US$ 5.8m of share repurchases during the period.

Regional Review

North America

North American revenue increased 22% to US$ 38.9m (H1 2025: US$ 31.8m), driven by higher sales across most product categories, particularly Boomed and Ride-on screeds reflecting stabilizing market conditions supported in part by demand from AI-led data centers and related infrastructure.

New customer penetration also increased, with direct machine sales to new customers representing 28% of regional revenue (H1 2025: 19%). Hammerhead continued to broaden Somero's customer base, with 65% of units sold through North American dealers during the period being purchased by customers new to Somero, demonstrating early traction of strategic initiatives aimed at reaching a broader customer segment.

Customers continue to report steady activity levels and healthy project backlogs, alongside an improvement in project starts. Underlying demand in private non-residential construction remains supported by long-term structural trends, while continued skilled labor shortages are reinforcing demand for automation and productivity-enhancing solutions.

Europe

European revenue increased 41% to US$ 4.9m (H1 2025: US$ 3.5m), with growth supported by improved sales activity across the region.

Direct machine sales to new customers represented 28% of regional direct machine revenue (H1 2025: 38%) reflecting variation in product and channel mix. Hammerhead also continued to attract new customers, with 45% of units sold through European dealers during the period being purchased by customers new to Somero.

Macroeconomic and geopolitical conditions continue to weigh on the region, but Europe remains an important long-term growth market for Somero. The Belgium service center, opened in 2024, has strengthened local customer support and expanded the Company's ability to provide machine repair, aftermarket parts and service, and training across the region.

Australia

Revenue in Australia increased 12% to US$ 2.4m (H1 2025: US$ 2.1m). Direct machine sales to new customers represented 16% of regional direct machine revenue (H1 2025: 25%).

Market conditions remain constrained by skilled labor shortages and restrictive monetary policy, but Somero continues to see opportunities to deepen penetration. The Company remains focused on increasing market awareness, demonstrating the productivity benefits of its technology and expanding its dealer network.

Rest of World

Revenue in Rest of World increased 7% to US$ 2.5m (H1 2025: US$ 2.4m), driven primarily by higher sales in Latin America.

Given the relatively small scale of the business across these markets, revenue is expected to remain variable from period to period, which is further exacerbated by geopolitical conditions in the region.

 Product Review

H1 2026 revenue performance

·	Boomed screeds: US$ 17.6m (up 33%)
·	Ride-on screeds: US$ 10.2m (up 45%)
·	3D Profiler System: US$ 4.2m (up 55%)
·	Remanufactured machines: US$ 3.3m (down 3%)
·	Aftermarket parts and service: US$ 9.1m (up 9%) 18.6% of total revenue (2025: 20.9%)
·	Other Revenue1: US$ 4.3m (down 15%)

¹ includes training, machine freight and other equipment, including SkyScreed, SkyStrip®, Somero Broom + Cure®, STS-11M Topping Spreader, STS-11HC Topping Spreader, Copperhead, Somero Line Dragon®, Mini Screed C, Viper and S-PS50.

For further product and geographic revenue details, see Note 13.

New product launches

Somero continued to advance its product innovation agenda in H1 2026, launching two new machines designed to address evolving customer needs and expand the Company's addressable market.

The S-22EZ+, the latest evolution of Somero's flagship Boomed screed platform, incorporates more than 30 enhancements focused on quality, automation, productivity and ease of use. The launch further strengthens Somero's offering for large-format concrete placement.

The Company also launched the Viper, a compact walk-behind laser screed that debuted at World of Concrete in January 2026. Viper brings Somero's laser-guided screeding technology to smaller pours, confined job sites and on-deck applications, broadening the range of projects and customers the Company can serve.

Alongside new machine launches, Somero continues to invest in digital tools, telematics and training technologies designed to improve customer experience, machine utilization and aftermarket engagement.

The broader innovation pipeline remains active, with continued R&D investment focused on addressing customer pain points, improving productivity and supporting future market expansion.

Strategic Update

Since introducing the Fortify, Innovate and Amplify strategic framework at the 2025 interim results, Somero has moved firmly into execution, with measurable progress across operational efficiency, product development, customer reach, and capital allocation.  Key developments during H1 2026 are set out below.

1. Fortify

Lean execution protected margins despite cost pressures

Somero continued to embed lean operating practices, including 6S, workplace organization, and visual management, helping improve efficiency and offset higher input costs from material surcharges and tariffs. Together with pricing and disciplined cost management, these actions supported a stable gross margin of 52.8% during the period.

Service and training capabilities expanded

The Company continued to strengthen its customer support and aftermarket infrastructure, including 24/7 technical support, field service, training and expanded service and fleet-management offerings.

Somero also expanded the capabilities of the Somero Concrete Institute in Europe, providing hands-on training, technical education and certification through its facilities in Belgium and Chesterfield, UK. This extends Somero's established U.S. training model into Europe and supports machine utilization, customer engagement and longer-term aftermarket opportunities.

2. Innovate

New product launches broadened Somero's addressable market

Somero launched two new products during H1 2026 - the S-22EZ+ and Viper - while recent introductions including Hammerhead and S-15EZ continued to gain traction. Together, these products extend Somero's offering across a broader range of customers, project sizes and applications.

Telematics rollout strengthened connected-machine capabilities

The Company continued to develop its digital and connected-machine capabilities, with telematics now standard on the S-15EZ, S-22EZ and S-28EZ platforms. The growing installed base is providing valuable machine data and supporting development of Somero's connected-machine offering, with the potential to enhance customer support and create opportunities to expand aftermarket and recurring-revenue.  A small-machine telematics offering is currently under development.

Product and software capabilities strengthened

Somero also strengthened its product management and software engineering depth and capabilities during the period, supporting execution of its product and technology roadmaps. The wider innovation pipeline remains active and focused on solving customer pain points, improving productivity and expanding the Company's addressable markets.

3. Amplify

Dealer network expansion extended Somero's market reach

Somero continued to expand its commercial reach during H1 2026, growing its dealer network to 16 dealers across approximately 50 locations in North America and 21 dealers internationally. The Company also expanded its product-specialist team to support adoption of Hammerhead and customer acquisition in targeted market segments.

These initiatives, alongside recent product launches and broader commercial activity, contributed to new customers accounting for approximately 28% of Group direct machine revenue, compared with approximately 21% last year.

Aftermarket focus sharpened across the installed base

Refined parts sales organization structure to increase focus on aftermarket opportunities and strengthen support for the growing installed base. The Company also initiated development of its eCommerce platform, designed to make aftermarket parts and support resources easier for customers to access.

Further US$6.0m buyback authorized

Somero continues to assess uses of capital against a disciplined framework balancing investment in the business, strategic opportunities and shareholder returns. Following the substantial completion of the initial US$ 6.0m share repurchase program, on 22 July 2026 the Board authorized a further US$ 6.0m of share repurchases after the period end while retaining the financial flexibility to invest in growth and pursue compelling strategic opportunities, given the Company's strong net cash balance sheet position.

Governance Update

Following extensive shareholder consultation, on 28 August the Board announced governance and Board changes designed to strengthen accountability and better align Somero's governance arrangements with those employed by UK companies listed on AIM.

The proposed changes include the introduction of majority voting in uncontested director elections and two-year staggered re-election of directors.

Howard Hohmann will transition from the Board and continue with the Company as Chief Commercial Officer, while the search for a new independent Non-Executive Director to succeed Larry Horsch approaches completion.  Taken together, these changes are expected to increase the proportion of Non-Executive Directors on the Board, strengthen independence and accountability, and support continued execution of the Company's strategic plan.

The externally facilitated Board performance review, in accordance with the 2023 QCA Corporate Governance Code also continues and is expected to be completed in H2 2026.

Cashflow and Balance Sheet

Operating cash flow increased to US$7.1m in H1 2026 (H1 2025: US$4.1m), reflecting higher profitability and disciplined working capital management.

Capital expenditure remained modest at US$0.6m (H1 2025: US$0.5m). During the period, the Company returned approximately US$9.2m to shareholders through US$3.4m of dividend payments and US$5.8m of share repurchases.

Somero ended the period with net cash of US$ 29.6m (31 December 2025: US$ 33.2m; 30 June 2025: US$ 24.6m). The Company remains debt-free and has access to an undrawn US$ 25.0m secured revolving credit facility, providing financial flexibility to invest in the business and pursue strategic growth opportunities.

Dividend

Reflecting the strong first-half performance and outlook for the remainder of the year, the Board has declared an interim dividend of US$ 0.05 per share, up 25% from US $0.04 per share in H1 2025. The dividend, totaling approximately US$ 2.6m, will be payable on 16 October 2026 to shareholders on the register on 18 September 2026. The ex-dividend date is 17 September 2026.

During the period, the Company returned approximately US$ 9.2m to shareholders through US$ 3.4m of dividends and US$ 5.8m of share repurchases.

Outlook

U.S. private non-residential construction has continued to stabilize, with AI-driven digital infrastructure and related utility investment supporting activity, alongside a slowing pace of decline in other end markets including warehousing, manufacturing and retail. Customers continue to report healthy activity levels and strong backlogs extending into 2027.

Somero enters the second half with positive momentum and remains well positioned to benefit from improving market conditions, supported by its market-leading product portfolio, strong customer relationships and flexible cost model. The Board nevertheless remains mindful of continued macroeconomic and geopolitical uncertainty, including tariffs, elevated interest rates and immigration policy.

Reflecting the strength of the first-half performance and momentum entering H2, the Board now expects FY 2026 revenue of approximately US$ 95m, with adjusted EBITDA of approximately US$19.5m and year-end net cash expected to be approximately US $29m, assuming the additional US$6m share repurchase authorization is fully executed prior to year end.

Bob Scheuer

Non-Executive Chairman

Tim Averkamp

Chief Executive Officer

8 September 2026

FINANCIAL REVIEW
Summary of financial results			For the six months ended June 30
*  unaudited			2026	2025
			US$ 000	US$ 000
			Except per share data	Except per share data
Revenue			48,675	39,828
Cost of sales			22,997	18,796
Gross profit			25,678	21,032
Operating expenses
Selling, marketing and customer support			7,089	6,704
Engineering and product development			1,052	1,025
General and administrative			9,452	8,585
Total operating expenses			17,593	16,314
Operating income			8,085	4,718
Other income (expense)
Interest expense			(39)	(20)
Interest income			269	215
Foreign exchange impact			802	(58)
Other			(60)	3
Income before income taxes			9,057	4,858
Provision for income taxes			2,384	2,266
Net income			6,673	2,592
			Per Share	Per Share
			US$	US$
Basic earnings per share			0.12	0.05
Diluted earnings per share			0.12	0.05
Basic adjusted net income per share (1), (2), (4)			0.12	0.06
Diluted adjusted net income per share (1), (2), (4)			0.12	0.06
Other data
Adjusted EBITDA (1), (2), (4)			10,074	6,352
Adjusted net income (1), (3), (4)			6,585	3,308
Depreciation expense			1,309	1,051
Amortization of intangibles			71	71
Capital expenditures			634	506

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.

Net income to adjusted EBITDA reconciliation and Adjusted net income reconciliation
*  unaudited	Six months ended June 30
	2026 US$ 000	2025 US$ 000
Adjusted EBITDA reconciliation
Net income	6,673	2,592
Tax provision	2,384	2,266
Interest expense	39	20
Interest income	(269)	(215)
Foreign exchange impact	(802)	58
Other	60	(3)
Depreciation	1,309	1,051
Amortization	71	71
Non-cash lease expense	97	118
Stock-based compensation	512	394
Adjusted EBITDA	10,074	6,352
Adjusted net income reconciliation
Net income	6,673	2,592
Amortization	71	71
Valuation allowance on deferred tax assets	-	857
Tax impact of stock option & RSU settlements	(159)	(212)
Adjusted net income reconciliation	6,585	3,308

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 options 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 increased by 22% to approximately US$ 48.7m (H1 2025: US$ 39.8m). The Company's revenues consist primarily of sales from Boomed Screed products, which include the S-28EZ, S22-EZ, 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, aftermarket parts & service, and other revenues which consist of revenue from sales of other equipment, training and machine shipping charges.    The overall increase for the period was primarily driven by higher volumes of the Boomed Screeds, Ride-on Screeds and 3-D Profiler System.

Boomed Screed sales increased to approximately US$ 17.6m (H1 2025: US$ 13.3m) as unit volume increased, Ride-on Screed sales increased to approximately US$ 10.2m (H1 2025:  US$ 7.1m) due to an increase in volume, remanufactured machine sales decreased to approximately US$ 3.3m (H1 2025: US$ 3.4m) due to a decrease in volume, 3-D Profiler System sales increased to approximately US$ 4.2m (2025: US$ 2.7m) due to an increase in volume.  Aftermarket parts & service revenue increased to US$ 9.1m (2025: US$ 8.3m).   Other revenues decreased to approximately US$ 4.3m (H1 2025: US$ 5.1m) due to volume declines in that category.

Sales to customers in North America contributed 80% of total revenue (H1 2025: 80%), sales to customers in Europe contributed 10% (H1 2025: 9%), sales to customers in Australia contributed 5% (H1 2025: 5%) and sales to customers in ROW (Latin America, India, China, Middle East, Korea and Southeast Asia) contributed 5% (H1 2025: 6%).

Sales in North America totaled approximately US$ 38.9m (H1 2025: US$ 31.8m), up 22%, primarily driven by higher sales of Boomed Screeds and Ride-on Screeds. Sales to customers in Europe were approximately US$ 4.9m (H1 2025: US$ 3.5m), up 41%, driven by increased activity across the region. Sales to customers in Australia were approximately US$ 2.4m (H1 2025: US$ 2.1m), up 12%, while sales to customers in the Rest of World were approximately US$ 2.5m (H1 2025: US$ 2.4m), up 7%, primarily driven by higher sales in Latin America.

Gross profit

Gross profit increased to approximately US$ 25.7m (H1 2025: US$ 21.0m), with gross margins of 52.8% compared to 52.8% in H1 2025.

Operating expenses

Operating expenses excluding depreciation, amortization and stock-based compensation for H1 2026 were approximately US$ 16.3m (H1 2025: US$ 15.2m).

Debt

As of June 30, 2026, 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 was approximately US$ 2.4m, at an overall effective tax rate of 26%, compared to a provision of approximately US$ 2.3m in H1 2025, at an overall effective tax rate of 47%. The decrease in overall effective tax rate reflects the non-recurrence of the prior-period valuation allowance placed on foreign deferred tax assets. 

The H1 2026 tax rate is slightly higher than the historical run rate due to the consequential impact of the cumulative reporting losses in the foreign jurisdictions.

Earnings per share

Basic earnings per share represent 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 stock options and restricted stock units. 

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

		Six months ended June 30
		2026 US$ 000	2025 US$ 000
	Income available to stockholders	6,673	2,592
	Basic weighted shares outstanding	53,635,347	54,814,372
	Net dilutive effect of stock options and restricted stock units	1,065,437	781,229
	Diluted weighted average shares outstanding	54,700,784	55,595,601
		Per Share	Per Share
		US$	US$
	Basic earnings per share	0.12	0.05
	Diluted earnings per share	0.12	0.05
	Basic adjusted net income per share	0.12	0.06
	Diluted adjusted net income per share	0.12	0.06

Consolidated Balance Sheets As of June 30, 2026 and December 31, 2025
			As of June 30, 2026 *  unaudited US$ 000			As of December 31, 2025 US$ 000
Assets
Current assets:
Cash and cash equivalents			29,585			33,164
Accounts receivable - net of allowance for credit losses of US$ 751 in 2026 and US$ 803 in 2025			5,603			6,978
Inventories - net			22,150			21,016
Prepaid expenses and other current assets			1,766			2,210
Income tax receivable			607			1,078
Total current assets			59,711			64,446
Accounts receivable, non-current - net			702			693
Property, plant, and equipment - net			24,780			25,477
Financing lease right-of-use assets - net			935			928
Operating lease right-of-use assets - net			2,153			1,998
Intangible assets - net			765			836
Goodwill			3,294			3,294
Other assets			262			258
Total assets			92,602			97,930
Liabilities and stockholders' equity
Current liabilities:
Accounts payable			4,207			6,765
Accrued expenses			5,212			5,319
Financing lease liability - current			363			292
Operating lease liability - current			427			356
Total current liabilities			10,209			12,732
Financing lease liability - long-term			476			523
Operating lease liability - long-term			1,800			1,710
Deferred tax liability			285			506
Other liabilities			66			47
Total liabilities			12,836			15,518
Stockholders' equity
Preferred stock, US$.001 par value, 50,000,000 shares authorized, no shares issued and outstanding			-			-
Common stock, US$.001 par value, 80,000,000 shares authorized, 51,825,423 and 54,257,375 shares issued on June 30, 2026 and December 31, 2025, respectively, 51,776,016 and 54,065,489 shares outstanding on June 30, 2026 and December 31, 2025, respectively			23			26
Less: treasury stock, 49,407 shares as of June 30, 2026 and 191,886 shares as of December 31, 2025 at cost			(126)			(589)
Additional paid in capital			2,984			9,386
Retained earnings			79,560			76,253
Other comprehensive loss			(2,675)			(2,664)
Total stockholders' equity			79,766			82,412
Total liabilities and stockholders' equity			92,602			97,930
See Notes to unaudited consolidated financial statements.
Consolidated Statements of Comprehensive Income For the six months ended June 30, 2026 and 2025
*  unaudited					Six months ended June 30
					2026 US$ 000 Except per share data			2025 US$ 000 Except per share data
Revenue				48,675			39,828
Cost of sales				22,997			18,796
Gross profit				25,678			21,032
Operating expenses
Sales, marketing, and customer support				7,089			6,704
Engineering and product development				1,052			1,025
General and administrative				9,452			8,585
Total operating expenses				17,593			16,314
Operating income				8,085			4,718
Other income (expense)
Interest expense				(39)			(20)
Interest income				269			215
Foreign exchange impact				802			(58)
Other				(60)			3
Income before income taxes				9,057			4,858
Provision for income taxes				2,384			2,266
Net income				6,673			2,592
Other comprehensive income (loss)
Cumulative translation adjustment				(11)			35
Comprehensive income				6,662			2,627
Earnings per common share
Earnings per share - basic				0.12			0.05
Earnings per share - diluted				0.12			0.05
Weighted average number of common shares outstanding
Basic				53,635,347			54,814,372
Diluted				54,700,784			55,595,601
See Notes to unaudited consolidated financial statements.

Consolidated Statement of Changes in Stockholders' Equity For the six months ended June 30, 2026
* unaudited
		Common stock			Treasury stock		Retained earnings US$ 000	Other Comprehensive loss US$ 000
				Additional paid-in capital US$ 000					Total Stockholders' equity US$ 000
		Shares	Amount US$ 000		Shares	Amount US$ 000
Balance - December 31, 2025		54,257,375	26	9,386	191,886	(589)	76,253	(2,664)	82,412
Cumulative translation adjustment		-	-	-	-	-	-	(11)	(11)
Net income		-	-	-	-	-	6,673	-	6,673
Stock-based compensation		-	-	512	-	-	-	-	512
Dividend		-	-	-	-	-	(3,366)	-	(3,366)
Cancellation of treasury stock		(2,464,463)	-	(6,309)	(2,464,463)	6,309	-	-	-
RSUs settled for cash		-	-	(605)	-	-	-	-	(605)
Share buyback		-	(3)		2,321,984	(5,846)	-	-	(5,849)
New shares issued		32,511	-	-	-	-	-	-	-
Balance - June 30, 2026		51,825,423	23	2,984	49,407	(126)	79,560	(2,675)	79,766

See Notes to unaudited consolidated financial statements.

Consolidated Statements of Cash Flows For the six months ended June 30, 2026 and 2025
*unaudited		Six months ended June 30
		2026 US$ 000	2025 US$ 000
Cash flows from operating activities:
Net income		6,673	2,592
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred taxes		(221)	837
Depreciation and amortization		1,380	1,122
Non-cash lease expense		97	118
Provision for credit losses (recoveries)		(67)	100
Stock-based compensation		512	394
(Gain)/loss on sale of property and equipment		22	(7)
Working capital changes:
Accounts receivable		1,433	5,200
Inventories		(1,134)	(5,590)
Prepaid expenses and other current assets		444	869
Other assets		(4)	93
Accounts payable, accrued expenses and other liabilities		(2,547)	(2,066)
Income tax receivable		471	469
Net cash provided by operating activities		7,059	4,131
Cash flows from investing activities:
Property, plant, and equipment purchases		(634)	(506)
Net cash used in investing activities		(634)	(506)
Cash flows from financing activities:
Payment of dividend		(3,366)	(7,123)
RSUs settled for cash		(605)	(454)
Payments under financing leases		(173)	(120)
Share buy back		(5,849)	(821)
Net cash used in financing activities		(9,993)	(8,518)
Effect of exchange rates on cash and cash equivalents		(11)	35
Net decrease in cash and cash equivalents		(3,579)	(4,858)
Cash and cash equivalents:
Beginning of period		33,164	29,486
End of period		29,585	24,628
See Notes to unaudited consolidated financial statements.

Notes to the Consolidated Financial Statements

As of June 30, 2026 and December 31, 2025

1.   Organization and description of business

Nature of business

Somero Enterprises, Inc. (the "Company" or "Somero") designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment, related aftermarket parts & service, and training worldwide. Somero's Operations and Support Offices are located in Michigan, USA with Global Headquarters and Training Facilities in Florida, USA. Sales and service offices are in Chesterfield, England; Kampenhout, Belgium; Melbourne, Australia and New Delhi, India.

2.   Summary of significant accounting policies

Basis of presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). 

Principles of consolidation

The consolidated financial statements include the accounts of Somero Enterprises, Inc., and its subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and cash equivalents

Cash includes cash on hand, cash in banks, and temporary investments with a maturity of three months or less when purchased.  The Company maintains deposits in a number of financial institutions globally, which may at times exceed amounts covered by insurance provided by the U.S. Federal Deposit Insurance Corporation ("FDIC").  The Company has not experienced any losses related to amounts in excess of FDIC limits.

Restricted Cash

Restricted cash of approximately US$ 372,000 and US$ 333,000 is included in "Cash and cash equivalents" on the consolidated balance sheet as of June 30, 2026 and December 31, 2025. This represents cash deposited by the Company into a guaranteed deposit account and designated as collateral for the building lease in Australia and Belgium, in accordance with the lease agreement.

Accounts receivable and allowances for credit losses

Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of accounts receivable. The Company's accounts receivable are derived from revenue earned from a diverse group of customers. The Company performs credit evaluations of its commercial customers and maintains an allowance for credit losses based upon the expected ability to collect accounts receivable.  Allowances, if necessary, are established for amounts determined to be uncollectible based on specific identification and historical experience.  As of June 30, 2026 and December 31, 2025, the allowance for credit losses was approximately US$ 751,000 and US$ 803,000, respectively.  Provision for credit losses (recovery) for the six months ended June 30, 2026 and 2025, was approximately US$ (67,000) and US$ 100,000 respectively. The opening balance of accounts receivable on January 1, 2025 was US$ 9,818,000, which includes US$ 567,000 of non-current accounts receivable.

Inventories

Inventories are stated using the first in, first out ("FIFO") method, at the lower of cost or net realizable value ("NRV"). Provision for potentially obsolete or slow-moving inventory is made based on management's analysis of inventory levels and future sales forecasts.  As of June 30, 2026 and December 31, 2025, the provision for obsolete and slow-moving inventory was approximately US$ 1,869,000 and US$ 1,887,000, respectively.

Intangible assets and goodwill

Intangible assets consist primarily of customer relationships, trademarks, and patents, and are carried at their fair value when acquired, less accumulated amortization. Intangible assets are amortized using the straight-line method over a period of three to twelve years, which is their estimated period of economic benefit.

Goodwill is not amortized but is subject to impairment tests on an annual basis, and the Company has chosen December 31 as its periodic assessment date.  Goodwill represents the excess cost of the business combination over the Company's interest in the fair value of the identifiable assets and liabilities. Goodwill arose from the Company's prior sale from Dover Corporation to The Gores Group in 2005 and the purchase of the Line Dragon, LLC business assets in January 2019.  The Company did not incur a goodwill impairment loss for the periods ended June 30, 2026 nor December 31, 2025.

Revenue recognition

The Company generates revenue by selling equipment, accessories, aftermarket parts & service, and training. The Company recognizes revenue for equipment, accessories and aftermarket parts & service when it satisfies the performance obligation of transferring the control to the customer. For product sales where shipping terms are FOB shipping point, revenue is recognized upon shipment.  For arrangements which include FOB destination shipping terms, revenue is recognized upon delivery to the customer. The Company recognizes the revenue for service agreements and training once the service or training has occurred.

As of June 30, 2026 and December 31, 2025, there were approximately US$ 533,000 and US$ 467,000, respectively, of extended service agreement liabilities. The opening balance of extended service agreement liabilities on January 1, 2025 was US$ 520,000. During the six months ended June 30, 2026 and 2025, approximately US$ 299,000 and US$ 313,000, respectively, of revenue was recognized related to the amounts recorded as liabilities on the balance sheets in the prior year (deferred contract revenue).

As of June 30, 2026 and December 31, 2025, there were approximately US$ 1,727,000 and US$ 3,561,000, respectively, in customer deposit liabilities for advance payments received during the period for contracts expected to ship following the end of the period. The opening balance of customer deposit liabilities for advance payments received on January 1, 2025 was US$ 505,000. As of June 30, 2026 and December 31, 2025, there are no significant contract costs such as sales commissions or costs deferred.  Interest income on financing arrangements is recognized as interest accrues, using the effective interest method.

Warranty liability

The Company provides warranties on all equipment sales ranging from 60 days to three years, depending on the product.  Warranty liabilities are estimated net of the warranty passed through to the Company from vendors, based on specific identification of issues and historical experience.

	US$ 000
Balance, January 1, 2025	(1,187)
Warranty charges	343
Accruals	(431)
Balance, December 31, 2025	(1,275)
Balance, January 1, 2026	(1,275)
Warranty charges	161
Accruals	(117)
Balance, June 30, 2026	(1,231)

Property, plant, and equipment

Property, plant, and equipment is stated at cost, net of accumulated depreciation and amortization. Land is not depreciated.  Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is 31.5 to 40 years for buildings (depending on the nature of the building), 15 years for improvements, and 3 to 10 years for machinery and equipment.

Income taxes

The Company determines income taxes using the asset and liability approach. Tax laws require items to be included in tax filings at different times than the items are reflected in the consolidated financial statements. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance, if necessary, to the extent that it appears more likely than not that such assets will be unrecoverable.

The Company evaluates tax positions that have been taken or are expected to be taken in its tax returns and records a liability for uncertain tax positions.  This involves a two-step approach to recognising and measuring uncertain tax positions.  First, tax positions are recognized if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon examination, including resolution of related appeals or litigation processes, if any. Second, the tax position is measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement.

Stock-based compensation

The Company recognizes the cost of employee services received in exchange for an award of equity instruments in the consolidated financial statements over the period the employee is required to perform the services in exchange for the award (presumptively the vesting period).  The Company measures the cost of employee services in exchange for an award based on the grant-date fair value of the award. Compensation expense related to stock-based payments was approximately US$ 512,000 and US$ 394,000 for the six months ended June 30, 2026 and 2025, respectively.  In addition, the Company settled approximately US$ 605,000 and US$ 454,000 in restricted stock units for cash during the six months ended June 30, 2026 and 2025, respectively.

Transactions in and translation of foreign currency

The functional currency for the Company's subsidiaries outside the United States is the applicable local currency.  The preparation of the consolidated financial statements requires the translation of these financial statements to USD.  Balance sheet amounts are translated at period-end exchange rates and the statement of comprehensive income accounts are translated at average rates.  The resulting gains or losses are charged directly to accumulated other comprehensive income.  The Company is also exposed to market risks related to fluctuations in foreign exchange rates because some sales transactions, and some assets and liabilities of its foreign subsidiaries, are denominated in foreign currencies other than the designated functional currency.  Gains and losses from transactions are included as foreign exchange impact in the accompanying consolidated statements of comprehensive income.

Comprehensive income

Comprehensive income is the combination of reported net income and other comprehensive income ("OCI"). OCI is changes in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources not included in net income. 

Earnings per share

Basic earnings per share represents income available to common stockholders divided by the weighted average number of common shares outstanding during the year.  Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued using the treasury stock method.  Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock units.

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

	Six months ended June 30
	2026 US$ 000	2025 US$ 000
Net income	6,673	2,592
Basic weighted shares outstanding	53,635,347	54,814,372
Net dilutive effect of stock options and restricted stock units	1,065,437	781,229
Diluted weighted average shares outstanding	54,700,784	55,595,601

Fair value

The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and other current assets and liabilities approximate fair value because of the short-term nature of these instruments.

3.  Inventories

Inventories consisted of the following:

	June 30, 2026 US$ 000	December 31, 2025 US$ 000
Raw material	11,261	11,081
Finished goods and work in process	7,786	6,118
Remanufactured	3,103	3,817
Total	22,150	21,016

4.  Goodwill and intangible assets

Goodwill represents the excess of the cost of a business combination over the fair value of the net assets acquired. The Company is required to test goodwill for impairment, at the reporting unit level, annually and when events or circumstances indicate the fair value of a unit may be below its carrying value.  

The following table reflects other intangible assets:

			Weighted average		June 30, 2026	December 31, 2025
			Amortization Period		US$ 000	US$ 000
Capitalized cost	Patents			12 years	19,247		19,247
	Intangible Assets				7,434		7,434
					26,681	26,681
Accumulated amortization		Patents	12 years		18,895	18,891
		Intangible Assets			7,021	6,954
					25,916	25,845
Net carrying costs		Patents	12 years		352	356
		Intangible Assets			413	480
					765	836

Amortization expense associated with the intangible assets in each of the six months ended June 30, 2026 and 2025 was approximately US$ 71,000 and US$ 71,000, respectively. The amortization expense for each of the next 4 years will be approximately US$ 142,000 a year, year 5 will be approximately US$ 83,000 and the remaining amortization thereafter will be approximately US$ 114,000.

5.  Property, plant, and equipment

Property, plant, and equipment consist of the following:

	June 30, 2026 US$ 000	December 31, 2025 US$ 000
Land	864	864
Building and improvements	26,560	26,407
Machinery and equipment	10,622	10,481
	38,046	37,752
Less:  accumulated depreciation and amortization	(13,266)	(12,275)
	24,780	25,477

Depreciation expense for the six months ended June 30, 2026 and 2025 was approximately US$ 1,309,000 and US$ 1,051,000, respectively.

6.  Line of credit

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 its business assets.  No amounts were drawn under the secured revolving line of credit as of June 30, 2026 and December 31, 2025.   

Interest expense for the six months ended June 30, 2026 and 2025 was approximately US$ 39,000 and US$ 19,500, respectively, and relates primarily to interest costs on leased vehicles.

7.  Retirement program

The Company has a savings and retirement plan for its employees, which is intended to qualify under Section 401(k) of the Internal Revenue Code ("IRC"). This savings and retirement plan provides for voluntary contributions by participating employees, not to exceed maximum limits set forth by the IRC. The Company's matching contributions vest immediately.  The Company contributed approximately US$ 520,000 and US$ 539,000 to the savings and retirement plan during the six months ended June 30, 2026 and 2025, respectively.

8.  Leases

The Company leases property, vehicles, and equipment under leases accounted for as operating and finance leases. The leases have remaining lease terms of less than 1 year to 8 years, some of which include options for renewal. The exercise of these renewal options is at the sole discretion of the Company. The right-of-use assets and related liabilities presented on the Consolidated Balance Sheets, reflect management's current expectations regarding the exercise of renewal options.  The components for lease expense were as follows:

	Six Months Ended June 30, 2026	Six Months Ended June 30,  2025
	US$ 000	US$ 000
Operating lease cost	316	279
Finance lease cost:
Amortization of right-of-use assets	97	118
Interest on lease liabilities	36	19
Total finance lease cost	133	137

As of June 30, 2026, the weighted average remaining lease term for finance and operating leases was 2.6 years and 5.6 years, respectively, and the weighted average discount rate was 8.3% and 5.9%, respectively. As of June 30, 2025, the weighted average remaining lease term for finance and operating leases was 2.7 years and 6.4 years, respectively, and the weighted average discount rate was 8.8% and 6.0%, respectively. 

Maturities of lease liabilities represent the remaining six months for 2026 and the full 12 months of each successive period as follows:

	Operating Leases	Finance Leases
	US$ 000	US$ 000
2026	284	206
2027	567	363
2028	432	268
2029	336	91
2030	336	5
Thereafter	672	-
Total	2,627	933
Less imputed interest	(400)	(94)

        Total                                                                                                                                   2,227                         839

9.  Supplemental cash flow and non-cash financing disclosures

	Six months ended June 30
	2026 US$ 000	2025 US$ 000
Cash paid for interest	37	20
Cash paid for taxes	1,810	1,108
Finance lease liabilities arising from obtaining right-of-use assets	23	54
Operating lease liabilities arising from obtaining right-of-use assets	161	(69)

10.  Business and credit concentration

The Company's line of business could be significantly impacted by, among other things, the state of the general economy, the Company's ability to continue to protect its intellectual property rights, and the potential future growth of competitors.  Any of the foregoing may significantly affect management's estimates and the Company's performance.  On June 30, 2026 and December 31, 2025, the Company had four customers which represented 29% and 33% of total accounts receivable, respectively.

11.  Commitments and contingencies

The Company has entered into employment agreements with certain members of senior management.  The terms of these are for renewable one-year periods and include non-compete and non-disclosure provisions as well as provide for defined severance payments in the event of termination or change in control.

The Company is also subject to various unresolved legal actions which arise in the normal course of its business. Although it is not possible to predict with certainty the outcome of these unresolved legal actions or the range of possible losses, the Company believes these unresolved legal actions will not have a material effect on its consolidated financial statements.

12. Income taxes

The Company's total effective tax rate for the six months ended June 30, 2026 was 26%.  For the full year ended December 31, 2025, the effective tax rate was 33%. The higher amount in 2025 primarily relates to a valuation allowance placed on foreign deferred tax assets. The Company is subject to US federal income tax with a statutory rate of 21%, as well as income tax of multiple state and foreign jurisdictions.  The Company was formed in 2005. The statute of limitations for all federal, foreign, and state income tax matters for tax years from 2020 forward is still open. The Company has no federal, foreign, or state income tax returns currently under examination.

As of June 30, 2026, and December 31, 2025 the Company had income tax receivable of approximately US$ 607,000 and US$ 1,078,000, respectively.

As of June 30, 2026, and December 31, 2025 the Company had non-current net deferred tax liabilities recorded on its balance sheet of approximately US$ 285,000 and US$ 506,000, respectively. In assessing the realizability of deferred tax assets, management considers all available positive and negative evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will not be realized and, therefore, whether a valuation allowance is required. The ultimate realization of deferred tax assets depends on the generation of sufficient future taxable income during the periods in which the related temporary differences become deductible. Deferred tax liabilities generally represent future taxable amounts arising from temporary differences and are measured based on the tax rates expected to apply when those differences reverse.

13. Revenues by geographic region and segment reporting

The Company sells its products to customers throughout the world.  The Company operates as a single reportable segment for financial reporting purposes.  While revenue is disaggregated by geography, the business is managed and evaluated as a single operating segment by the Chief Operating Decision Maker ("CODM").  This is because all geographic regions provide the same types of products and services to a similar customer base, and the CODM assesses financial performance and allocates resources on a consolidated basis rather than by individual geography. 

In making key decisions and allocating resources, the CODM primarily evaluates the Company's consolidated profitability, with a focus on EBITDA, as this metric provides a comprehensive view of operational performance.  Revenue by geography is reviewed to identify trends, but profitability remains the primary measure of performance.

The accounting policies are the same in all geographies as described in the summary of significant accounting policies.  The chief operating decision maker assesses performance and decides how to allocate resources based on profitability reported on the income statement.

The following table shows the breakdown by geography during the six months ended June 30, 2026 and 2025:

US$ 000	North America		Europe		Australia		ROW(1)		Total
	2026	2025	2026	2025	2026	2025	2026	2025	2026	2025
Boomed screeds (2)	14,933	11,027	1,687	1,315	995	630	0	292	17,615	13,264
Ride-on screeds (3)	6,893	4,878	1,587	949	363	333	1,394	908	10,237	7,068
Remanufactured machines	3,079	3,402	-	-	-	-	217	-	3,296	3,402
3-D Profiler System	3,474	2,327	237	-	435	352	-	-	4,146	2,679
Aftermarket Parts & Service	6,932	6,067	818	951	506	444	793	862	9,049	8,324
Other (4)	3,548	4,144	532	242	114	389	138	316	4,332	5,091
Total	38,859	31,845	4,861	3,457	2,413	2,148	2,542	2,378	48,675	39,828

1. ROW includes Latin America, India, China, Middle East, Korea, and Southeast Asia.

2. Boomed Screeds include the S-28EZ, S-22EZ, S-22EZ+.  S-15R, S-15EZ, SRS-6, SRS-4 and SRS-4e.

3. Ride-on Screeds include the S-940, S-940e, S-485, Hammerhead, and S-158C.

4. Other includes training, machine freight, as well as other equipment such as the SkyScreed, SkyStrip^®, Somero Broom + Cure^®, STS-11M Topping Spreader, STS-11HC Topping Spreader, Copperhead, Somero Line Dragon®, Mini Screed C, Viper, and S-PS50.

14. Share buyback

In March and April 2026, the Board authorized on-market share buyback programs for such number of its listed shares of common stock as are equal to US$ 4,000,000 and US$ 2,000,000 respectively for each program, as compared to the US$ 2,000,000 of shares authorized in February 2025.  The maximum price paid per common share was no more than the higher of 105 percent of the average middle market closing price of common share for the five business days preceding the date of the share buyback, the price of the last independent trade and the highest current independent purchase bid.  As of June 30, 2026, the Company purchased 2,320,557 shares of common stock for an aggregate value of US$ 5,841,652 pursuant to the share buyback program authorized in 2026, and 1,427 shares of common stock for an aggregate value of US$ 3,980, which completed the share buyback program authorized in 2025.  The Company estimates the share buyback programs authorized in 2026 will be completed by the end of 2026.  In connection with the Company's share buyback programs authorized in 2026 and 2025, 2,464,463 shares held in treasury were cancelled in 2026.

15.Subsequent events

In preparing the consolidated financial statements, the Company has evaluated all subsequent events and transactions for potential recognition or disclosure through September 8, 2026, the date the consolidated financial statements were available for issuance.

Share buyback

In July 2026, the Board approved a further increase in the maximum aggregate amount authorised under the Company's 2026 on-market share buyback programme, announced on 12 March 2026 and expanded on 9 April 2026, from US$6.0m to US$12.0m.

Dividend

The Board declared an interim dividend for the six months ended June 30, 2026 of 5.0 US cents per share.   This dividend will be paid on October 16, 2026 to shareholders on the register as of September 18, 2026.

Distribution amount:	$0.05 cents per share
Ex-dividend date:	17 September 2026
Dividend record date:	18 September 2026
Final day for currency election:	2 October 2026
Payment date:	16 October 2026

All dividends have the option of being paid in either GBP or USD.  Payments in USD can be paid by Check or through CREST. Payments in GBP can be paid via Check, CREST and BACS.  The default option if no election is made will be for a USD payment via check. Should shareholders wish to change their current currency or payment methods, forms are available through Computershare Investor Services PLC at

https://www-us.computershare.com/Investor/#Help/PrintableForms.

If shares are held as Depositary Interests through a broker or nominee, the holding company must be contacted and advised of the payment preferences. Such requests are subject to the terms and conditions of the broker or nominee.

Additional information on currency election and tax withholding can be found at: https://investors.somero.com/aim-rule-26.   Shareholders can also contact Computershare Investor Services PLC by telephone at +44 (0370) 702 0000 or email via webcorres@computershare.co.uk.

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