SMITH MIDLAND CORP SEC 10-Q Report

Smith Midland Corp, a leading provider of precast concrete products and services, has released its Form 10-Q report for the first quarter of 2025. The report highlights significant improvements in both financial and operational performance, driven by increased demand for barrier rentals and soundwall sales. The company's strategic focus on expanding its rental business and enhancing production capabilities has yielded substantial growth.

Financial Highlights

• Total Revenue: $22.7 million, increased by $5.9 million or 35% compared to the same period in 2024, driven by a significant increase in barrier rentals and soundwall sales.
• Gross Profit: $7.0 million, reflecting an improvement due to higher margin barrier rental projects.
• Operating Income: $4.4 million, up from $1.5 million in the same period in 2024, primarily due to increased revenue and a decrease in cost of sales as a percentage of revenue.
• Net Income: $3.3 million, compared to $1.1 million for the same period in 2024, indicating a strong financial performance.
• Basic earnings per common share: $0.63, compared to $0.22 for the same period in 2024, reflecting the improved net income.
• Diluted earnings per common share: $0.62, compared to $0.21 for the same period in 2024, showing enhanced profitability.

Business Highlights

• Revenue Segments: The company experienced a significant increase in barrier rentals, which rose by 843% due to a special project undertaken in the first quarter of 2025. Soundwall sales increased by 27%, and Easi-Set and Easi-Span building sales nearly doubled, reflecting strong demand across these product lines.
• Sales Units: Production volumes for soundwall sales increased at all three plants, indicating a ramp-up in production to meet the increased backlog. The company also noted a surge in demand for utility vaults in the Northern Virginia market, driven by data center growth.
• New Production Launches: The company invested in ramping up barrier production, which contributed to the significant increase in barrier rental revenue. This expansion is part of the company's strategy to shift marketing efforts from barrier sales to barrier rentals.
• Future Outlook: The company anticipates continued growth in barrier rentals and SlenderWall sales, with several SlenderWall projects expected to start production in the second half of 2025. Additionally, the company expects infrastructure spending to drive future royalties and revenue growth, although no assurance can be given.
• Operational Strategy: The company continues to focus on increasing marketing and sales efforts towards SlenderWall sales and barrier rentals, aligning with its long-term strategic objectives. This includes plans for additional sales associates and increased advertising spending.

SEC Filing: SMITH MIDLAND CORP [ SMID ] - 10-Q - Jul. 10, 2025