Smith-Midland Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

Smith-Midland (NASDAQ:SMID) reported exceptional Q2 2025 financial results, with revenue surging 33% to $26.2 million and net income more than doubling to $4.2 million ($0.79 per diluted share). The company achieved a significant gross margin improvement of 360 basis points to 29.7%.

The quarter's success was driven by strong performance across multiple segments: Soundwall sales reached $5.2 million, barrier rental revenue increased to $5.8 million, and SlenderWall contributed $1.5 million. The company maintains a robust backlog of $54 million as of August 2025, with continued momentum from infrastructure initiatives and increasing demand for rental barriers.

Positive

• Record quarterly revenue of $26.2 million, up 33% year-over-year
• Net income doubled to $4.2 million ($0.79 per diluted share)
• Gross margin improved by 360 basis points to 29.7%
• Strong barrier rental revenue growth to $5.8 million from $1.4 million
• Substantial backlog of $54 million
• Continued listing in Russell 2000 and 3000 Indexes
• Royalty income increased 53% year-over-year

Negative

• Special barrier rental projects from H1 2025 not expected to recur in H2
• Utility product sales declined to $871,000 from $2.1 million
• No architectural panel sales reported in Q2 2025
• Continued inflationary pressures affecting materials costs
• Backlog decreased from $59 million to $54 million year-over-year

Insights

Financial Analyst

Smith-Midland delivers exceptional Q2 2025 with record revenue, doubled profits, and strong margin improvement driven by special barrier project and increased product sales.

Smith-Midland's Q2 2025 results showcase remarkable growth with revenue jumping 33% to $26.2 million, setting a new quarterly record. The standout performance extends to profitability, with net income more than doubling to $4.2 million ($0.79 per diluted share) from $2.0 million ($0.37) in the prior-year period.

The gross margin improvement of 360 basis points to 29.7% signals enhanced operational efficiency, likely driven by economies of scale and favorable product mix. Operating income surged to $5.5 million, up substantially from $2.7 million in Q2 2024.

Revenue composition reveals interesting insights. Product sales remained relatively flat at $13.4 million (vs. $13.1 million), while service revenue nearly doubled to $12.8 million from $6.5 million. This service revenue spike was primarily fueled by barrier rental revenue, which quadrupled to $5.8 million from $1.4 million, largely due to a special barrier project completed in Q2.

The product mix shift is noteworthy: Soundwall sales more than doubled to $5.2 million, Easi-Set building sales nearly doubled to $2.9 million, and SlenderWall contributed $1.5 million after zero sales in the prior-year period. Conversely, utility product sales dropped by more than half to $871,000, and miscellaneous wall sales fell to $852,000 from $2.2 million.

The balance sheet remains solid with $7.1 million in cash, though slightly down from year-end 2024. The $54 million backlog provides solid revenue visibility, despite being lower than the $59 million reported a year ago.

Management's cautionary note about non-recurring special barrier rental projects in the second half suggests potential revenue normalization, though continued infrastructure spending and regulatory-driven barrier replacements should provide sustained demand. This exceptional quarter demonstrates Smith-Midland's ability to capitalize on infrastructure spending and its growing rental fleet strategy.

Record Quarterly Revenue and Doubling of Net Income From Prior Year

MIDLAND, VA / ACCESS Newswire / August 14, 2025 / Smith-Midland Corporation (NASDAQ:SMID), a provider of innovative, high-quality proprietary and patented precast concrete products and systems, today announced its second quarter results for the period ended June 30, 2025.

Second Quarter 2025 Summary (compared to prior-year quarter)

• Revenue increased 33 percent to $26.2 million

• Gross margin increased 360 basis points to 29.7%

• Operating income of $5.5 million compared to $2.7 million

• Net income of $4.2 million, or $0.79 per diluted share, compared to $2.0 million and $0.37

• Continued listing in Russell 2000 and 3000 Indexes.

"Our second quarter represents another new quarterly revenue record, thanks to a special barrier rental project and higher SlenderWall and Soundwall sales, and net income was more than double the prior-year quarter," said Ashley Smith, Chairman and Chief Executive Officer of Smith-Midland. "We continue to benefit from the tailwinds across the industry, including greater infrastructure spending across the federal, state and local levels and the upcoming replacement cycle for barrier products to meet the MASH-TL3 standards. We also continue to see increased demand for our utility vaults and Easi-Set structures and, aside from special barrier projects, our growing barrier rental fleet. Overall, we remain optimistic on the near and long-term outlook for our business and confident in our ability to deliver long-term value to our shareholders," concluded Smith.

Second Quarter 2025 Results

The Company reported 2025 second quarter revenues of $26.2 million compared to $19.6 million in the second quarter of 2024. Product sales for the quarter were $13.4 million, compared to $13.1 million in the prior-year quarter. Service revenue, which includes barrier rentals, royalty income and shipping and installation, was $12.8 million, almost double the $6.5 million reported in the second quarter of 2024.

Gross profit increased to $7.8 million compared to $5.1 million in the prior year quarter due to the higher revenue base and mix. Gross margin for the quarter was 29.7%, a 360-basis point increase compared to the second quarter of 2024.

Operating income for the quarter was $5.5 million compared to $2.7 million in the prior-year quarter. The improvement was primarily due to the higher revenue base and mix. Net income for the second quarter was $4.2 million, or $0.79 per diluted share, compared to net income of $2.0 million, or $0.37 per diluted share basis in the second quarter of 2024.

Product Sales

Total product sales for the second quarter of 2025 were $13.4 million compared to $13.1 million in the prior-year quarter. Soundwall sales were $5.2 million compared to $2.2 million in the second quarter of 2024. The increase is primarily associated with increased production across all three facilities to execute and deliver on the Company's backlog. Easi-Set and Easi-Span Building Sales increased to $2.9 million compared to $1.5 million in the prior-year quarter due to increased demand for plant and site assembled buildings and restrooms. Barrier sales were $1.2 million compared to $1.1 million. The Company reported SlenderWall sales of $1.5 million in the second quarter of 2025 after no sales in the prior-year quarter. Utility product sales were $871,000 compared to $2.1 million in the second quarter of 2024 due to a surge in sales in the prior-year quarter related to data centers. Miscellaneous wall and product sales totaled $852,000, compared to $2.2 million in the second quarter of 2024. The Company did not report any architectural panel sales in the second quarter of 2025.

Service Revenue

Service revenue which is comprised of royalty income, barrier rental revenue, and shipping and installation totaled $12.8 million in the second quarter of 2025 compared to $6.5 million in the prior-year quarter. Barrier rental revenue was $5.8 million compared to $1.4 million in the second quarter of 2024. The increase is attributed to an increase in our core barrier rental fleet and a special barrier project that was installed and completed during the second quarter of 2025. Shipping and installation revenue was $5.6 million compared to $4.3 million in the prior-year quarter. The increase is primarily attributed to an increase in the shipping and installation of rental barrier, Easi-Set and SlenderWall projects. Royalty income increased 53 percent year over year to $1.3 million.

Balance Sheet and Liquidity

As of June 30, 2025, Smith-Midland's cash totaled $7.1 million compared to $7.5 million at the end of fiscal 2024. Account receivables totaled $31.5 million, and debt totaled $4.8 million as of June 30, 2025. Capital spending totaled $1.9 million in the second quarter of 2025.

Macro Environment and Outlook

Infrastructure initiatives across the United States continue to drive greater bidding activity and a subsequent increase in backlog for its portfolio of patented, proprietary, and custom products and several SlenderWall projects are scheduled to continue production in the second half of the year. Service revenue for the first half of 2025 included two special barrier rental projects that are not anticipated to recur in the second half of the year. The Company is increasing its inventory of rental barrier in 2025 and 2026 to meet the increasing demand for rental barrier in its market.

Inflationary pressures still remain, and the Company continues to manage its materials costs while attracting and retaining skilled labor. Backlog was approximately $54 million recorded as of August 2025 compared to $59 million in backlog one year prior. The majority of the backlog is anticipated to be fulfilled within 12 months; however, some projects may have a multi-year timeline. The Company remains focused on long-term strategic growth initiatives to drive shareholder value.

About Smith-Midland

Smith-Midland develops, manufactures, licenses, rents, and sells a broad array of precast concrete products and systems for use primarily in the construction, transportation, and utility industries.

Smith-Midland Corporation has three manufacturing facilities in: Midland, VA, Reidsville, NC, and Columbia, SC, and a J-J Hooks® Safety Barrier rental firm, Concrete Safety Systems. Easi-Set Worldwide, a wholly owned subsidiary of Smith-Midland Corporation, licenses the production and sale of Easi-Set products, including J-J Hooks and SlenderWall®, and provides diversification opportunities to the precast industry worldwide. For more information, please call (540) 439-3266 or visit www.smithmidland.com.

Forward-Looking Statements

This announcement contains forward-looking statements, which involve risks and uncertainties. The Company's actual results may differ significantly from those discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, product demand, the impact of competitive products and pricing, capacity and supply constraints or difficulties, the uncertainties arising from the policies of the new Administration and DOGE, the risk of less government spending on infrastructure than anticipated, inflationary factors including potential recession, our material weaknesses in internal controls, general business and economic conditions, our debt exposure, our high level of accounts receivables, the effect of the Company's accounting policies and other risks detailed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.

Company Contact:
Dominic L. Hunter
540-439-3266
investors@smithmidland.com

Investor Relations:
Steven Hooser or John Beisler
Three Part Advisors, LLC
214-872-2710

SOURCE: Smith-Midland

View the original press release on ACCESS Newswire

FAQ

What were Smith-Midland's (SMID) Q2 2025 earnings results?

Smith-Midland reported Q2 2025 revenue of $26.2 million (up 33%) and net income of $4.2 million ($0.79 per share), more than double the prior year's $2.0 million ($0.37 per share).

How much is Smith-Midland's (SMID) current backlog as of August 2025?

Smith-Midland's backlog stands at $54 million as of August 2025, with the majority expected to be fulfilled within 12 months.

What was SMID's barrier rental revenue in Q2 2025?

Barrier rental revenue reached $5.8 million in Q2 2025, compared to $1.4 million in Q2 2024, driven by core barrier rental fleet growth and a special barrier project.

What is Smith-Midland's (SMID) cash position as of Q2 2025?

As of June 30, 2025, Smith-Midland had $7.1 million in cash, with accounts receivable of $31.5 million and total debt of $4.8 million.

How did SMID's gross margin perform in Q2 2025?

Gross margin increased by 360 basis points to 29.7% compared to Q2 2024, driven by higher revenue base and improved product mix.

What were the key drivers of Smith-Midland's revenue growth in Q2 2025?

Key growth drivers included a special barrier rental project, higher SlenderWall sales ($1.5 million), increased Soundwall sales ($5.2 million), and strong performance in Easi-Set building sales ($2.9 million).