[FWP] Citigroup Inc. Free Writing Prospectus

Q: How much did Smith-Midland (SMID) earn in Q1 2025?

Net income was $3.3 million , up 190% from $1.1 million in Q1 2024.

Q: What drove the sharp revenue increase for SMID?

An $8.4 million barrier-rental project (up 843% YoY) offset weaker product sales and lifted total revenue 35%.

Q: What is Smith-Midland’s current sales backlog?

Backlog stood at $52.4 million as of 7 May 2025 , down from $64.6 million a year earlier.

Q: Did SMID improve its gross margin?

Yes, gross margin widened to 30.7% from 23.3% in the prior-year quarter due to high-margin rentals.

Q: Are there any internal control issues at SMID?

Yes. Material weaknesses in entity-level controls and IT systems first disclosed in 2024 remain unremediated.

Q: How much cash does Smith-Midland have?

Cash increased to $9.0 million at 31 Mar 2025, with the $5 million credit line undrawn.

Filing Impact

(No impact)

Filing Sentiment

(Neutral)

Form Type

FWP

Rhea-AI Filing Summary

Smith-Midland Corporation (NASDAQ: SMID) delivered a markedly stronger first quarter of 2025, leveraging a large, high-margin barrier-rental project to lift both revenue and profitability. All figures are unaudited and expressed in thousands, except per-share data.

Revenue jumped 35% year-over-year to $22.7 million (Q1-24: $16.8 million). The key driver was barrier rentals, which rose eight-fold to $8.4 million, offsetting a 15% slide in product sales.
Gross profit nearly doubled to $7.0 million, expanding gross margin to 30.7% (Q1-24: 23.3%) as rental mix improved cost leverage (cost of sales fell to 72% of sales from 79%).
Operating income advanced 191% to $4.4 million; net income climbed 190% to $3.3 million, driving basic EPS to $0.63 versus $0.22 a year ago.
Cash increased to $9.0 million (12/31/24: $7.5 million) after generating $2.2 million of operating cash flow; long-term debt declined slightly to $4.3 million and the $5.0 million revolver remains undrawn.
Balance sheet strength: Equity rose to $45.1 million, representing 60% of total assets. Tangible-net-worth and capital-spending covenants under bank facilities remain in compliance.
Backlog at 5 May 2025 was $52.4 million, down 19% from $64.6 million a year earlier; management expects most projects to convert to revenue within 12 months.
Management reiterated its strategy to expand SlenderWall sales, grow barrier-rental fleet and pursue infrastructure-linked demand; planned 2025 capex totals ~$5 million.

Operational considerations

One customer accounted for 33% of Q1-25 revenue; two customers each represented >10% of receivables.
A ransomware incident occurred in Q1-25 but was resolved without payment; network security changes were implemented.
Material weaknesses in entity-level and IT controls identified in 2024 remain unremediated; a new CFO was hired and remediation efforts are under way.

Outlook: Management anticipates sustained soundwall and building demand, incremental SlenderWall orders in 2H-25 and continued emphasis on barrier rentals. However, reduced backlog, customer concentration and unresolved control weaknesses introduce execution and governance risk.

Smith-Midland Corporation (NASDAQ: SMID) ha registrato un primo trimestre 2025 significativamente più forte, grazie a un grande progetto di noleggio barriere ad alto margine che ha incrementato sia i ricavi sia la redditività. Tutte le cifre sono non revisionate e espresse in migliaia, salvo i dati per azione.

I ricavi sono aumentati del 35% su base annua, raggiungendo 22,7 milioni di dollari (Q1-24: 16,8 milioni). Il motore principale è stato il noleggio di barriere, cresciuto di otto volte a 8,4 milioni di dollari, compensando un calo del 15% nelle vendite di prodotti.
Il margine lordo è quasi raddoppiato a 7,0 milioni di dollari, con un'espansione del margine lordo al 30,7% (Q1-24: 23,3%) grazie a un miglioramento nella leva dei costi dovuto alla maggiore incidenza del noleggio (il costo delle vendite è sceso al 72% dai precedenti 79%).
Il reddito operativo è cresciuto del 191% a 4,4 milioni di dollari; l'utile netto è salito del 190% a 3,3 milioni, portando l'utile base per azione a 0,63 dollari rispetto a 0,22 dell'anno precedente.
La liquidità è aumentata a 9,0 milioni di dollari (31/12/24: 7,5 milioni) dopo aver generato 2,2 milioni di flusso di cassa operativo; il debito a lungo termine è leggermente diminuito a 4,3 milioni e la linea di credito da 5,0 milioni rimane inutilizzata.
Solidità patrimoniale: il patrimonio netto è salito a 45,1 milioni di dollari, pari al 60% delle attività totali. I covenant relativi al patrimonio netto tangibile e agli investimenti in capitale sotto le linee bancarie sono rispettati.
Il portafoglio ordini al 5 maggio 2025 era di 52,4 milioni di dollari, in calo del 19% rispetto ai 64,6 milioni dell'anno precedente; la direzione prevede che la maggior parte dei progetti sarà convertita in ricavi entro 12 mesi.
La direzione ha ribadito la strategia di espandere le vendite di SlenderWall, far crescere la flotta di noleggio barriere e puntare sulla domanda legata alle infrastrutture; la spesa in conto capitale prevista per il 2025 è di circa 5 milioni di dollari.

Considerazioni operative

Un cliente ha rappresentato il 33% dei ricavi del Q1-25; due clienti costituiscono ciascuno oltre il 10% dei crediti.
Nel Q1-25 si è verificato un incidente di ransomware, risolto senza pagamenti; sono state implementate modifiche alla sicurezza della rete.
Le debolezze materiali nei controlli a livello aziendale e IT identificate nel 2024 non sono ancora state risolte; è stato assunto un nuovo CFO e sono in corso interventi di rimedio.

Prospettive: La direzione prevede una domanda sostenuta per muri di contenimento e costruzioni, ordini incrementali di SlenderWall nella seconda metà del 2025 e un continuo focus sul noleggio barriere. Tuttavia, il portafoglio ordini ridotto, la concentrazione dei clienti e le debolezze di controllo non risolte comportano rischi di esecuzione e governance.

Smith-Midland Corporation (NASDAQ: SMID) presentó un primer trimestre de 2025 notablemente más fuerte, apoyándose en un gran proyecto de alquiler de barreras con altos márgenes que impulsó tanto los ingresos como la rentabilidad. Todas las cifras son no auditadas y están expresadas en miles, salvo los datos por acción.

Los ingresos aumentaron un 35% interanual hasta 22,7 millones de dólares (Q1-24: 16,8 millones). El principal impulsor fue el alquiler de barreras, que creció ocho veces hasta 8,4 millones, compensando una caída del 15% en las ventas de productos.
El beneficio bruto casi se duplicó a 7,0 millones, ampliando el margen bruto al 30,7% (Q1-24: 23,3%) debido a una mejor apalancamiento de costos por la mayor proporción de alquileres (el costo de ventas bajó al 72% desde el 79%).
El ingreso operativo aumentó un 191% hasta 4,4 millones; el ingreso neto subió un 190% a 3,3 millones, impulsando las ganancias básicas por acción a 0,63 dólares frente a 0,22 del año anterior.
El efectivo aumentó a 9,0 millones (31/12/24: 7,5 millones) tras generar 2,2 millones de flujo de caja operativo; la deuda a largo plazo disminuyó ligeramente a 4,3 millones y la línea de crédito de 5,0 millones permanece sin usar.
Fortaleza del balance: El patrimonio neto subió a 45,1 millones, representando el 60% de los activos totales. Los convenios sobre patrimonio tangible y gastos de capital bajo las facilidades bancarias están en cumplimiento.
La cartera de pedidos al 5 de mayo de 2025 era de 52,4 millones, un 19% menos que los 64,6 millones del año anterior; la dirección espera que la mayoría de los proyectos se conviertan en ingresos dentro de 12 meses.
La dirección reiteró su estrategia de expandir las ventas de SlenderWall, aumentar la flota de alquiler de barreras y perseguir la demanda vinculada a infraestructuras; el gasto de capital planeado para 2025 es de aproximadamente 5 millones.

Consideraciones operativas

Un cliente representó el 33% de los ingresos del Q1-25; dos clientes representaron cada uno más del 10% de las cuentas por cobrar.
Se produjo un incidente de ransomware en el Q1-25 que se resolvió sin pago; se implementaron cambios en la seguridad de la red.
Las debilidades materiales en los controles a nivel de entidad y TI identificadas en 2024 permanecen sin resolver; se contrató un nuevo CFO y se están llevando a cabo esfuerzos de remediación.

Perspectivas: La dirección anticipa una demanda sostenida de muros de contención y edificios, pedidos incrementales de SlenderWall en el segundo semestre de 2025 y un énfasis continuo en el alquiler de barreras. Sin embargo, la reducción de la cartera de pedidos, la concentración de clientes y las debilidades de control no resueltas introducen riesgos en la ejecución y gobernanza.

Smith-Midland Corporation (NASDAQ: SMID)는 2025년 1분기에 대규모 고마진 방벽 임대 프로젝트를 활용하여 매출과 수익성을 모두 크게 향상시키며 강력한 실적을 기록했습니다. 모든 수치는 감사되지 않았으며, 주당 데이터 제외 모두 천 단위로 표기되었습니다.

매출액은 전년 동기 대비 35% 증가한 2,270만 달러를 기록했습니다(Q1-24: 1,680만 달러). 주요 원동력은 방벽 임대 매출로, 8.4백만 달러로 8배 증가하여 제품 판매 15% 감소를 상쇄했습니다.
매출총이익은 거의 두 배인 700만 달러로 늘었으며, 임대 비중 증가로 원가 효율성이 개선되어 매출총이익률이 30.7%(Q1-24: 23.3%)로 확대되었습니다. 매출원가는 매출 대비 72%로 이전 79%에서 감소했습니다.
영업이익은 191% 증가한 440만 달러, 순이익은 190% 증가한 330만 달러로, 기본 주당순이익은 0.63달러로 전년 0.22달러에서 크게 상승했습니다.
현금은 2024년 12월 31일 750만 달러에서 900만 달러로 증가했으며, 영업활동 현금흐름으로 220만 달러를 창출했습니다. 장기 부채는 소폭 감소한 430만 달러이며, 500만 달러 규모의 신용한도는 미사용 상태입니다.
재무 건전성: 자본총계는 4,510만 달러로 전체 자산의 60%를 차지합니다. 은행 시설 하의 유형순자산 및 자본 지출 관련 계약 조건은 모두 준수 중입니다.
수주잔고는 2025년 5월 5일 기준 5,240만 달러로 전년 6,460만 달러 대비 19% 감소했으며, 대부분의 프로젝트가 12개월 이내에 매출로 전환될 것으로 경영진은 예상합니다.
경영진은 SlenderWall 판매 확대, 방벽 임대 차량 증가, 인프라 관련 수요 추구 전략을 재확인했으며, 2025년 계획된 자본 지출은 약 500만 달러입니다.

운영 관련 고려사항

한 고객이 2025년 1분기 매출의 33%를 차지했으며, 두 고객이 각각 매출채권의 10% 이상을 차지했습니다.
2025년 1분기에 랜섬웨어 사건이 발생했으나 비용 지불 없이 해결되었으며, 네트워크 보안 조치가 시행되었습니다.
2024년에 확인된 기업 수준 및 IT 통제의 중대한 약점은 아직 개선되지 않았으며, 신규 CFO가 채용되어 개선 작업이 진행 중입니다.

전망: 경영진은 방음벽 및 건축 수요가 지속될 것으로 예상하며, 2025년 하반기에 SlenderWall 주문 증가와 방벽 임대에 대한 지속적인 집중을 기대합니다. 그러나 수주잔고 감소, 고객 집중도, 미해결 통제 약점은 실행 및 거버넌스 위험을 내포하고 있습니다.

Smith-Midland Corporation (NASDAQ : SMID) a réalisé un premier trimestre 2025 nettement plus solide, tirant parti d'un important projet de location de barrières à forte marge pour augmenter à la fois le chiffre d'affaires et la rentabilité. Tous les chiffres sont non audités et exprimés en milliers, sauf les données par action.

Le chiffre d'affaires a bondi de 35 % en glissement annuel pour atteindre 22,7 millions de dollars (T1-24 : 16,8 millions). Le principal moteur a été la location de barrières, qui a été multipliée par huit pour atteindre 8,4 millions, compensant une baisse de 15 % des ventes de produits.
La marge brute a presque doublé pour atteindre 7,0 millions, portant la marge brute à 30,7 % (T1-24 : 23,3 %) grâce à une meilleure leverage des coûts liée à la hausse de la part des locations (le coût des ventes est passé de 79 % à 72 % du chiffre d'affaires).
Le résultat opérationnel a progressé de 191 % pour atteindre 4,4 millions ; le résultat net a augmenté de 190 % pour atteindre 3,3 millions, portant le BPA de base à 0,63 $ contre 0,22 $ un an plus tôt.
La trésorerie est passée à 9,0 millions (31/12/24 : 7,5 millions) après avoir généré 2,2 millions de flux de trésorerie opérationnel ; la dette à long terme a légèrement diminué à 4,3 millions et la ligne de crédit renouvelable de 5,0 millions reste non utilisée.
Solidité du bilan : les capitaux propres ont augmenté à 45,1 millions, représentant 60 % de l'actif total. Les engagements relatifs à la valeur nette tangible et aux dépenses d'investissement dans le cadre des facilités bancaires sont respectés.
Le carnet de commandes au 5 mai 2025 s'élevait à 52,4 millions, en baisse de 19 % par rapport à 64,6 millions un an plus tôt ; la direction s'attend à ce que la plupart des projets se transforment en chiffre d'affaires dans les 12 mois.
La direction a réaffirmé sa stratégie d'élargir les ventes de SlenderWall, d'accroître la flotte de location de barrières et de poursuivre la demande liée aux infrastructures ; les dépenses d'investissement prévues pour 2025 s'élèvent à environ 5 millions.

Considérations opérationnelles

Un client a représenté 33 % du chiffre d'affaires du T1-25 ; deux clients représentaient chacun plus de 10 % des créances.
Un incident de ransomware s'est produit au T1-25 mais a été résolu sans paiement ; des modifications de la sécurité réseau ont été mises en place.
Des faiblesses significatives dans les contrôles au niveau de l'entité et des systèmes informatiques identifiées en 2024 restent non corrigées ; un nouveau directeur financier a été embauché et des efforts de remédiation sont en cours.

Perspectives : La direction anticipe une demande soutenue pour les murs antibruit et les bâtiments, des commandes supplémentaires de SlenderWall au second semestre 2025 et un accent continu sur la location de barrières. Cependant, la baisse du carnet de commandes, la concentration des clients et les faiblesses de contrôle non résolues introduisent des risques d'exécution et de gouvernance.

Die Smith-Midland Corporation (NASDAQ: SMID) erzielte im ersten Quartal 2025 eine deutlich stärkere Performance, indem sie ein großes, margenstarkes Barrierenvermietungsprojekt nutzte, um sowohl Umsatz als auch Profitabilität zu steigern. Alle Zahlen sind ungeprüft und in Tausend angegeben, außer bei den Daten je Aktie.

Der Umsatz stieg im Jahresvergleich um 35 % auf 22,7 Millionen US-Dollar (Q1-24: 16,8 Millionen). Haupttreiber waren Barrierenvermietungen, die sich auf 8,4 Millionen US-Dollar verfacht haben und den 15%igen Rückgang der Produktverkäufe ausglichen.
Der Bruttogewinn verdoppelte sich nahezu auf 7,0 Millionen US-Dollar, wobei die Bruttomarge auf 30,7 % (Q1-24: 23,3 %) anstieg, da der höhere Anteil der Vermietungen die Kostenhebelwirkung verbesserte (Kosten der verkauften Waren sanken von 79 % auf 72 % des Umsatzes).
Das Betriebsergebnis stieg um 191 % auf 4,4 Millionen US-Dollar; der Nettogewinn kletterte um 190 % auf 3,3 Millionen, was zu einem Basisgewinn je Aktie von 0,63 US-Dollar gegenüber 0,22 US-Dollar im Vorjahr führte.
Barmittel stiegen auf 9,0 Millionen US-Dollar (31.12.24: 7,5 Millionen) nach einem operativen Cashflow von 2,2 Millionen; die langfristigen Schulden sanken leicht auf 4,3 Millionen, und die revolvierende Kreditlinie von 5,0 Millionen bleibt ungenutzt.
Bilanzstärke: Das Eigenkapital stieg auf 45,1 Millionen US-Dollar und macht 60 % der Gesamtvermögenswerte aus. Die Covenants bezüglich des materiellen Nettovermögens und der Investitionsausgaben unter den Bankfazilitäten werden eingehalten.
Der Auftragsbestand lag am 5. Mai 2025 bei 52,4 Millionen US-Dollar, ein Rückgang von 19 % gegenüber 64,6 Millionen im Vorjahr; das Management erwartet, dass die meisten Projekte innerhalb von 12 Monaten in Umsätze umgewandelt werden.
Das Management bekräftigte die Strategie, den Verkauf von SlenderWall auszubauen, die Barrierenvermietflotte zu vergrößern und die nachfragebedingten Infrastrukturprojekte zu verfolgen; die geplanten Investitionsausgaben für 2025 belaufen sich auf rund 5 Millionen US-Dollar.

Operative Überlegungen

Ein Kunde machte 33 % des Umsatzes im Q1-25 aus; zwei Kunden repräsentierten jeweils mehr als 10 % der Forderungen.
Im Q1-25 kam es zu einem Ransomware-Vorfall, der ohne Zahlung gelöst wurde; es wurden Änderungen an der Netzwerksicherheit vorgenommen.
Materielle Schwächen in den unternehmensweiten und IT-Kontrollen, die 2024 identifiziert wurden, sind noch nicht behoben; ein neuer CFO wurde eingestellt und Maßnahmen zur Behebung sind im Gange.

Ausblick: Das Management erwartet eine anhaltend starke Nachfrage nach Schallschutzwänden und Gebäuden, zusätzliche SlenderWall-Bestellungen im zweiten Halbjahr 2025 und einen weiterhin starken Fokus auf Barrierenvermietungen. Allerdings bergen der reduzierte Auftragsbestand, die Kundenkonzentration und die ungelösten Kontrollschwächen Risiken für die Umsetzung und Governance.

Positive

Revenue up 35% YoY, led by barrier rentals, demonstrating strong demand and effective capacity utilisation.
Gross margin expanded 740 bps to 30.7%, reflecting high-margin rental mix and cost discipline.
Net income rose 190% to $3.3 million; EPS surged to $0.63.
Operating cash flow of $2.2 million boosted cash to $9.0 million with no revolver usage.
Debt remains modest and fixed-rate, limiting interest-rate exposure and keeping leverage low.

Negative

Backlog declined 19% to $52.4 million, reducing future revenue visibility.
Product sales fell 15%, signalling underlying demand softness outside the special barrier-rental project.
Unremediated material weaknesses in internal control and IT environment persist.
Customer concentration risk: one customer generated 33% of Q1-25 revenue; two customers exceed 10% of receivables.
Ransomware incident highlights cybersecurity exposure, even though impact was contained.

Insights

TL;DR – Strong quarter driven by barrier rentals; solid cash build; backlog erosion tempers upside.

SMID’s Q1-25 print is decisively positive: revenue +35%, gross margin +740 bps and EPS +186%. The outperformance stems from an unusually large barrier-rental project that converted into high-margin service revenue. Even stripping out rentals, product mix held up, and SG&A was contained (operating margin 19%). Cash generation of $2.2 million boosted liquidity to $9.0 million with no revolver draw, keeping net leverage very low.
Yet sustainability questions surface. Product sales fell 15% and backlog contracted 19%, implying tougher comps once the special project rolls off. Management’s $5 million capex plan and focus on SlenderWall could re-ignite growth, but execution risk rises amid customer concentration (one customer = 33% sales) and ongoing control deficiencies. Overall, the quarter improves valuation support but investors should monitor backlog trend and remediation progress.

TL;DR – Governance and concentration risks persist despite earnings surge.

While financial metrics strengthened, the persistence of multiple material weaknesses in internal control—including IT access and journal-entry review—remains a red flag. Management has outlined remediation steps (new CFO, COSO alignment, added staff), but effectiveness is yet unproven. Customer concentration (33% of Q1 revenue) and a successful—albeit contained—ransomware attack underscore operational vulnerabilities. Declining backlog (-19% YoY) also reduces revenue visibility. Fixed-rate debt limits rate exposure and covenant compliance is intact, but the $5 million annual capex limit could constrain growth initiatives. Overall risk profile is neutral to slightly negative until controls are fortified and backlog stabilises.

I ricavi sono aumentati del 35% su base annua, raggiungendo 22,7 milioni di dollari (Q1-24: 16,8 milioni). Il motore principale è stato il noleggio di barriere, cresciuto di otto volte a 8,4 milioni di dollari, compensando un calo del 15% nelle vendite di prodotti.
Il margine lordo è quasi raddoppiato a 7,0 milioni di dollari, con un'espansione del margine lordo al 30,7% (Q1-24: 23,3%) grazie a un miglioramento nella leva dei costi dovuto alla maggiore incidenza del noleggio (il costo delle vendite è sceso al 72% dai precedenti 79%).
Il reddito operativo è cresciuto del 191% a 4,4 milioni di dollari; l'utile netto è salito del 190% a 3,3 milioni, portando l'utile base per azione a 0,63 dollari rispetto a 0,22 dell'anno precedente.
La liquidità è aumentata a 9,0 milioni di dollari (31/12/24: 7,5 milioni) dopo aver generato 2,2 milioni di flusso di cassa operativo; il debito a lungo termine è leggermente diminuito a 4,3 milioni e la linea di credito da 5,0 milioni rimane inutilizzata.
Solidità patrimoniale: il patrimonio netto è salito a 45,1 milioni di dollari, pari al 60% delle attività totali. I covenant relativi al patrimonio netto tangibile e agli investimenti in capitale sotto le linee bancarie sono rispettati.
Il portafoglio ordini al 5 maggio 2025 era di 52,4 milioni di dollari, in calo del 19% rispetto ai 64,6 milioni dell'anno precedente; la direzione prevede che la maggior parte dei progetti sarà convertita in ricavi entro 12 mesi.
La direzione ha ribadito la strategia di espandere le vendite di SlenderWall, far crescere la flotta di noleggio barriere e puntare sulla domanda legata alle infrastrutture; la spesa in conto capitale prevista per il 2025 è di circa 5 milioni di dollari.

Considerazioni operative

Un cliente ha rappresentato il 33% dei ricavi del Q1-25; due clienti costituiscono ciascuno oltre il 10% dei crediti.
Nel Q1-25 si è verificato un incidente di ransomware, risolto senza pagamenti; sono state implementate modifiche alla sicurezza della rete.
Le debolezze materiali nei controlli a livello aziendale e IT identificate nel 2024 non sono ancora state risolte; è stato assunto un nuovo CFO e sono in corso interventi di rimedio.

Los ingresos aumentaron un 35% interanual hasta 22,7 millones de dólares (Q1-24: 16,8 millones). El principal impulsor fue el alquiler de barreras, que creció ocho veces hasta 8,4 millones, compensando una caída del 15% en las ventas de productos.
El beneficio bruto casi se duplicó a 7,0 millones, ampliando el margen bruto al 30,7% (Q1-24: 23,3%) debido a una mejor apalancamiento de costos por la mayor proporción de alquileres (el costo de ventas bajó al 72% desde el 79%).
El ingreso operativo aumentó un 191% hasta 4,4 millones; el ingreso neto subió un 190% a 3,3 millones, impulsando las ganancias básicas por acción a 0,63 dólares frente a 0,22 del año anterior.
El efectivo aumentó a 9,0 millones (31/12/24: 7,5 millones) tras generar 2,2 millones de flujo de caja operativo; la deuda a largo plazo disminuyó ligeramente a 4,3 millones y la línea de crédito de 5,0 millones permanece sin usar.
Fortaleza del balance: El patrimonio neto subió a 45,1 millones, representando el 60% de los activos totales. Los convenios sobre patrimonio tangible y gastos de capital bajo las facilidades bancarias están en cumplimiento.
La cartera de pedidos al 5 de mayo de 2025 era de 52,4 millones, un 19% menos que los 64,6 millones del año anterior; la dirección espera que la mayoría de los proyectos se conviertan en ingresos dentro de 12 meses.
La dirección reiteró su estrategia de expandir las ventas de SlenderWall, aumentar la flota de alquiler de barreras y perseguir la demanda vinculada a infraestructuras; el gasto de capital planeado para 2025 es de aproximadamente 5 millones.

Consideraciones operativas

Un cliente representó el 33% de los ingresos del Q1-25; dos clientes representaron cada uno más del 10% de las cuentas por cobrar.
Se produjo un incidente de ransomware en el Q1-25 que se resolvió sin pago; se implementaron cambios en la seguridad de la red.
Las debilidades materiales en los controles a nivel de entidad y TI identificadas en 2024 permanecen sin resolver; se contrató un nuevo CFO y se están llevando a cabo esfuerzos de remediación.

매출액은 전년 동기 대비 35% 증가한 2,270만 달러를 기록했습니다(Q1-24: 1,680만 달러). 주요 원동력은 방벽 임대 매출로, 8.4백만 달러로 8배 증가하여 제품 판매 15% 감소를 상쇄했습니다.
매출총이익은 거의 두 배인 700만 달러로 늘었으며, 임대 비중 증가로 원가 효율성이 개선되어 매출총이익률이 30.7%(Q1-24: 23.3%)로 확대되었습니다. 매출원가는 매출 대비 72%로 이전 79%에서 감소했습니다.
영업이익은 191% 증가한 440만 달러, 순이익은 190% 증가한 330만 달러로, 기본 주당순이익은 0.63달러로 전년 0.22달러에서 크게 상승했습니다.
현금은 2024년 12월 31일 750만 달러에서 900만 달러로 증가했으며, 영업활동 현금흐름으로 220만 달러를 창출했습니다. 장기 부채는 소폭 감소한 430만 달러이며, 500만 달러 규모의 신용한도는 미사용 상태입니다.
재무 건전성: 자본총계는 4,510만 달러로 전체 자산의 60%를 차지합니다. 은행 시설 하의 유형순자산 및 자본 지출 관련 계약 조건은 모두 준수 중입니다.
수주잔고는 2025년 5월 5일 기준 5,240만 달러로 전년 6,460만 달러 대비 19% 감소했으며, 대부분의 프로젝트가 12개월 이내에 매출로 전환될 것으로 경영진은 예상합니다.
경영진은 SlenderWall 판매 확대, 방벽 임대 차량 증가, 인프라 관련 수요 추구 전략을 재확인했으며, 2025년 계획된 자본 지출은 약 500만 달러입니다.

운영 관련 고려사항

한 고객이 2025년 1분기 매출의 33%를 차지했으며, 두 고객이 각각 매출채권의 10% 이상을 차지했습니다.
2025년 1분기에 랜섬웨어 사건이 발생했으나 비용 지불 없이 해결되었으며, 네트워크 보안 조치가 시행되었습니다.
2024년에 확인된 기업 수준 및 IT 통제의 중대한 약점은 아직 개선되지 않았으며, 신규 CFO가 채용되어 개선 작업이 진행 중입니다.

Le chiffre d'affaires a bondi de 35 % en glissement annuel pour atteindre 22,7 millions de dollars (T1-24 : 16,8 millions). Le principal moteur a été la location de barrières, qui a été multipliée par huit pour atteindre 8,4 millions, compensant une baisse de 15 % des ventes de produits.
La marge brute a presque doublé pour atteindre 7,0 millions, portant la marge brute à 30,7 % (T1-24 : 23,3 %) grâce à une meilleure leverage des coûts liée à la hausse de la part des locations (le coût des ventes est passé de 79 % à 72 % du chiffre d'affaires).
Le résultat opérationnel a progressé de 191 % pour atteindre 4,4 millions ; le résultat net a augmenté de 190 % pour atteindre 3,3 millions, portant le BPA de base à 0,63 $ contre 0,22 $ un an plus tôt.
La trésorerie est passée à 9,0 millions (31/12/24 : 7,5 millions) après avoir généré 2,2 millions de flux de trésorerie opérationnel ; la dette à long terme a légèrement diminué à 4,3 millions et la ligne de crédit renouvelable de 5,0 millions reste non utilisée.
Solidité du bilan : les capitaux propres ont augmenté à 45,1 millions, représentant 60 % de l'actif total. Les engagements relatifs à la valeur nette tangible et aux dépenses d'investissement dans le cadre des facilités bancaires sont respectés.
Le carnet de commandes au 5 mai 2025 s'élevait à 52,4 millions, en baisse de 19 % par rapport à 64,6 millions un an plus tôt ; la direction s'attend à ce que la plupart des projets se transforment en chiffre d'affaires dans les 12 mois.
La direction a réaffirmé sa stratégie d'élargir les ventes de SlenderWall, d'accroître la flotte de location de barrières et de poursuivre la demande liée aux infrastructures ; les dépenses d'investissement prévues pour 2025 s'élèvent à environ 5 millions.

Considérations opérationnelles

Un client a représenté 33 % du chiffre d'affaires du T1-25 ; deux clients représentaient chacun plus de 10 % des créances.
Un incident de ransomware s'est produit au T1-25 mais a été résolu sans paiement ; des modifications de la sécurité réseau ont été mises en place.
Des faiblesses significatives dans les contrôles au niveau de l'entité et des systèmes informatiques identifiées en 2024 restent non corrigées ; un nouveau directeur financier a été embauché et des efforts de remédiation sont en cours.

Der Umsatz stieg im Jahresvergleich um 35 % auf 22,7 Millionen US-Dollar (Q1-24: 16,8 Millionen). Haupttreiber waren Barrierenvermietungen, die sich auf 8,4 Millionen US-Dollar verfacht haben und den 15%igen Rückgang der Produktverkäufe ausglichen.
Der Bruttogewinn verdoppelte sich nahezu auf 7,0 Millionen US-Dollar, wobei die Bruttomarge auf 30,7 % (Q1-24: 23,3 %) anstieg, da der höhere Anteil der Vermietungen die Kostenhebelwirkung verbesserte (Kosten der verkauften Waren sanken von 79 % auf 72 % des Umsatzes).
Das Betriebsergebnis stieg um 191 % auf 4,4 Millionen US-Dollar; der Nettogewinn kletterte um 190 % auf 3,3 Millionen, was zu einem Basisgewinn je Aktie von 0,63 US-Dollar gegenüber 0,22 US-Dollar im Vorjahr führte.
Barmittel stiegen auf 9,0 Millionen US-Dollar (31.12.24: 7,5 Millionen) nach einem operativen Cashflow von 2,2 Millionen; die langfristigen Schulden sanken leicht auf 4,3 Millionen, und die revolvierende Kreditlinie von 5,0 Millionen bleibt ungenutzt.
Bilanzstärke: Das Eigenkapital stieg auf 45,1 Millionen US-Dollar und macht 60 % der Gesamtvermögenswerte aus. Die Covenants bezüglich des materiellen Nettovermögens und der Investitionsausgaben unter den Bankfazilitäten werden eingehalten.
Der Auftragsbestand lag am 5. Mai 2025 bei 52,4 Millionen US-Dollar, ein Rückgang von 19 % gegenüber 64,6 Millionen im Vorjahr; das Management erwartet, dass die meisten Projekte innerhalb von 12 Monaten in Umsätze umgewandelt werden.
Das Management bekräftigte die Strategie, den Verkauf von SlenderWall auszubauen, die Barrierenvermietflotte zu vergrößern und die nachfragebedingten Infrastrukturprojekte zu verfolgen; die geplanten Investitionsausgaben für 2025 belaufen sich auf rund 5 Millionen US-Dollar.

Operative Überlegungen

Ein Kunde machte 33 % des Umsatzes im Q1-25 aus; zwei Kunden repräsentierten jeweils mehr als 10 % der Forderungen.
Im Q1-25 kam es zu einem Ransomware-Vorfall, der ohne Zahlung gelöst wurde; es wurden Änderungen an der Netzwerksicherheit vorgenommen.
Materielle Schwächen in den unternehmensweiten und IT-Kontrollen, die 2024 identifiziert wurden, sind noch nicht behoben; ein neuer CFO wurde eingestellt und Maßnahmen zur Behebung sind im Gange.

07/10/2025 - 04:42 PM

Citigroup Global Markets Holdings Inc.

Free Writing Prospectus to Pricing Supplement No. 2025-USNCH27533

Registration Statement Nos. 333-270327; 333-270327-01

Dated July 10, 2025; Filed pursuant to Rule 433

Contingent Income Callable Securities Due July    , 2027 Based on the Worst Performing of the Nasdaq-100 Index^® , the Russell 2000^® Index and the S&P 500^® Index

Principal at Risk Securities

This document provides a summary of the terms of the securities. Investors must carefully review the accompanying preliminary pricing supplement referenced below, product supplement, underlying supplement, prospectus supplement and prospectus, and the “Risk Considerations” on the following page, prior to making an investment decision.

Summary Terms
Issuer:	Citigroup Global Markets Holdings Inc.
Guarantor:	Citigroup Inc.
Underlying indices:	The Nasdaq-100 Index^® (ticker symbol: “NDX”), the Russell 2000^® Index (ticker symbol: “RTY”) and the S&P 500^® Index (ticker symbol: “SPX”)
Stated principal amount:	$1,000 per security
Pricing date:	July 18, 2025
Issue date:	July 23, 2025

Observation period end-dates, potential redemption dates and contingent coupon payment dates:	The expected observation period end-dates, potential redemption dates and contingent coupon payment dates are set forth below:
	Observation period end-dates	Potential redemption dates	Contingent coupon payment dates
	October 20, 2025	October 23, 2025	October 23, 2025
	January 20, 2026	January 23, 2026	January 23, 2026
	April 20, 2026	April 23, 2026	April 23, 2026
	July 20, 2026	July 23, 2026	July 23, 2026
	October 19, 2026	October 22, 2026	October 22, 2026
	January 19, 2027	January 22, 2027	January 22, 2027
	April 19, 2027	April 22, 2027	April 22, 2027
	July 19, 2027 (the “final valuation date”)	N/A	July 22, 2027 (the “maturity date”)

Maturity date:	Unless earlier redeemed by us, July 22, 2027
Contingent coupon:	On each quarterly contingent coupon payment date, unless previously redeemed by us, the securities will pay a contingent coupon equal to at least 2.375% of the stated principal amount of the securities (at least 9.50% per annum) (to be determined on the pricing date) if and only if a coupon barrier event has not occurred during the related observation period. If a coupon barrier event occurs during an observation period, you will not receive any contingent coupon payment on the related contingent coupon payment date. A coupon barrier event will occur if the closing level of any underlying index is less than its coupon barrier level on any trading day for that underlying index during an observation period.
Payment at maturity¹:	Unless earlier redeemed by us, for each $1,000 stated principal amount security you hold at maturity, you will receive cash in an amount determined as follows (in addition to the final contingent coupon payment, if any): · If the final index level of the worst performing underlying index is greater than or equal to its downside threshold level: $1,000 · If the final index level of the worst performing underlying index is less than its downside threshold level: $1,000 + ($1,000 × the index return of the worst performing underlying index) If the final index level of the worst performing underlying index is less than its downside threshold level, you will receive less, and possibly significantly less, than 70.00% of the stated principal amount of your securities at maturity.
Coupon barrier event:	A coupon barrier event will occur with respect to an observation period if the closing level of any underlying index is less than its coupon barrier level on any trading day for that underlying index during that observation period.
Observation periods:	Each observation period will consist of each day from but excluding an observation period end-date to and including the following observation period end-date, provided that the first observation period will consist of each day from but excluding the pricing date to and including the first observation period end-date.
Trading day:	For any underlying index, a scheduled trading day for that underlying index on which a market disruption event has not occurred with respect to that underlying index.

Redemption:	We may call the securities, in whole and not in part, for mandatory redemption on any potential redemption date upon not less than three business days’ notice. Following an exercise of our call right, you will receive for each security you then hold an amount in cash equal to the early redemption payment. If the securities are redeemed, no further payments will be made.
Early redemption payment:	The stated principal amount of $1,000 per security plus the related contingent coupon payment, if any
Initial index level:	For each underlying index, its closing level on the pricing date
Final index level:	For each underlying index, its closing level on the final valuation date
Coupon barrier level:	For each underlying index, 70.00% of its initial index level
Downside threshold level:	For each underlying index, 70.00% of its initial index level
Index return:	For each underlying index, (i) its final index level minus its initial index level, divided by (ii) its initial index level
CUSIP / ISIN:	17333LKN4 / US17333LKN46
Worst performing underlying index:	The underlying index with the lowest index return
Preliminary pricing supplement:	Preliminary pricing supplement dated July 10, 2025

Hypothetical Payout at Maturity¹ (if the securities have not been previously redeemed)
Index Return of Worst Performing Underlying Index on the Final Valuation Date	Payment at Maturity (excluding any coupon payable at maturity)
+40.00%	$1,000.00
+30.00%	$1,000.00
+20.00%	$1,000.00
+10.00%	$1,000.00
0.00%	$1,000.00
-10.00%	$1,000.00
-20.00%	$1,000.00
-30.00%	$1,000.00
-31.00%	$690.00
-40.00%	$600.00
-50.00%	$500.00
-60.00%	$400.00
-70.00%	$300.00
-80.00%	$200.00
-90.00%	$100.00
-100.00%	$0.00

¹ All payments are subject to our credit risk

 

On the date of the accompanying preliminary pricing supplement, Citigroup Global Markets Holdings Inc. expects that the estimated value of the securities on the pricing date will be at least $916.50 per security, which will be less than the public offering price. The estimated value of the securities is based on Citigroup Global Markets Inc.’s (“CGMI”) proprietary pricing models and Citigroup Global Markets Holdings Inc.’s internal funding rate. It is not an indication of actual profit to CGMI or other of Citigroup Global Markets Holdings Inc.’s affiliates, nor is it an indication of the price, if any, at which CGMI or any other person may be willing to buy the securities from you at any time after issuance. See “Valuation of the Securities” in the accompanying preliminary pricing supplement.

Citigroup Global Markets Holdings Inc. and Citigroup Inc. have filed registration statements (including the accompanying preliminary pricing supplement, product supplement, underlying supplement, prospectus supplement and prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the accompanying preliminary pricing supplement, product supplement, underlying supplement, prospectus supplement and prospectus in those registration statements (File Nos. 333-270327 and 333-270327-01) and the other documents Citigroup Global Markets Holdings Inc. and Citigroup Inc. have filed with the SEC for more complete information about Citigroup Global Markets Holdings Inc., Citigroup Inc. and this offering. You may obtain these documents without cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you can request these documents by calling toll-free 1-800-831-9146.

Underlying Indices

For more information about the underlying indices, including historical performance information, see the accompanying preliminary pricing supplement.

Risk Considerations

The risks set forth below are discussed in more detail in the “Summary Risk Factors” section in the accompanying preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.

You may lose a significant portion or all of your investment.

You will not receive any contingent coupon payment for any quarterly observation period during which a coupon barrier event occurs.

The quarterly contingent coupon payment is contingent on the closing level of each underlying index on each trading day throughout the observation periods.

The securities are subject to the risks of all of the underlying indices and will be negatively affected if any one of the underlying indices performs poorly, even if the others perform well.

You will not benefit in any way from the performance of the better performing underlying indices.

You will be subject to risks relating to the relationship among the underlying indices.

Higher contingent coupon rates are associated with greater risk.

You may not be adequately compensated for assuming the downside risk of the worst performing underlying index.

We may redeem the securities at our option, which will limit your ability to receive the contingent coupon payments.

The securities offer downside exposure to the worst performing underlying index, but no upside exposure to the underlying indices.

The payment at maturity depends on the closing level of the worst performing underlying index on a single day.

The securities are subject to the credit risk of Citigroup Global Markets Holdings Inc. and Citigroup Inc.

The securities will not be listed on any securities exchange and you may not be able to sell them prior to maturity.

The estimated value of the securities on the pricing date, based on Citigroup Global Markets Inc.’s proprietary pricing models and Citigroup Global Markets Holdings Inc.’s internal funding rate, will be less than the issue price.

The estimated value of the securities would be lower if it were calculated based on Citigroup Global Markets Holdings Inc.’s secondary market rate.

The estimated value of the securities is not an indication of the price, if any, at which Citigroup Global Markets Inc. or any other person may be willing to buy the securities from you in the secondary market.

The value of the securities prior to maturity will fluctuate based on many unpredictable factors.

Immediately following issuance, any secondary market bid price provided by Citigroup Global Markets Inc., and the value that will be indicated on any brokerage account statements prepared by Citigroup Global Markets Inc. or its affiliates, will reflect a temporary upward adjustment.

The securities are linked to the Russell 2000^® Index and will be subject to risks associated with small capitalization stocks.

Changes that affect the underlying indices may affect the value of your securities.

Governmental regulatory actions, such as sanctions, could adversely affect your investment in the securities.

Citigroup Global Markets Holdings Inc.’s offering of the securities does not constitute a recommendation of any underlying index.

The level of an underlying index may be adversely affected by our or our affiliates’ hedging and other trading activities.

Citigroup Global Markets Holdings Inc. and its affiliates may have economic interests that are adverse to yours as a result of the business activities of Citigroup Global Markets Holdings Inc.’s affiliates.

The calculation agent, which is an affiliate of Citigroup Global Markets Holdings Inc., will make important determinations with respect to the securities.

The U.S. federal tax consequences of an investment in the securities are unclear.

Tax Considerations

You should review carefully the discussion in the accompanying preliminary pricing supplement under the heading “United States Federal Tax Considerations” concerning the U.S. federal tax consequences of an investment in the securities, and you should consult your tax adviser.

Source: View Original Filing on SEC EDGAR

FAQ

How much did Smith-Midland (SMID) earn in Q1 2025?

Net income was $3.3 million, up 190% from $1.1 million in Q1 2024.

What drove the sharp revenue increase for SMID?

An $8.4 million barrier-rental project (up 843% YoY) offset weaker product sales and lifted total revenue 35%.

What is Smith-Midland’s current sales backlog?

Backlog stood at $52.4 million as of 7 May 2025, down from $64.6 million a year earlier.

Did SMID improve its gross margin?

Yes, gross margin widened to 30.7% from 23.3% in the prior-year quarter due to high-margin rentals.

Are there any internal control issues at SMID?

Yes. Material weaknesses in entity-level controls and IT systems first disclosed in 2024 remain unremediated.

How much cash does Smith-Midland have?

Cash increased to $9.0 million at 31 Mar 2025, with the $5 million credit line undrawn.

[FWP] Citigroup Inc. Free Writing Prospectus

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What is Smith-Midland’s current sales backlog?

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