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Smith-Midland Reports First Quarter 2026 Financial Results

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Smith-Midland (NASDAQ:SMID) reported first quarter 2026 revenue of $21.6 million, down from $22.7 million, as high-margin barrier rental projects did not repeat.

Product sales rose 29% to $11.8 million, net income was $1.3 million ($0.25/share), cash was $13.2 million, and backlog was about $48.1 million as of May 2025.

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AI-generated analysis. How Rhea-AI works. Not financial advice.

Positive

  • Product sales up 29% year-over-year to $11.8 million
  • Net income of $1.3 million, or $0.25 per diluted share
  • SlenderWall and architectural panel sales of approximately $1.5 million versus none prior year
  • Shipping and installation revenue increased to $6.8 million from $4.3 million
  • Cash balance rose to $13.2 million from $11.9 million
  • Low debt level reported at $4.3 million as of March 31, 2026

Negative

  • Total revenue declined to $21.6 million from $22.7 million
  • Service revenue fell to $9.8 million from $13.6 million
  • Barrier rental revenue dropped to $2.2 million from $8.4 million
  • Gross margin decreased to 19.9% from 30.7%
  • Operating income declined to $1.7 million from $4.4 million
  • Net income decreased from $3.3 million to $1.3 million
  • Backlog fell to approximately $48.1 million from $52.4 million year earlier
  • Company expects Q2 2026 revenue and operating income to compare unfavorably to Q2 2025

News Market Reaction – SMID

-8.67%
8 alerts
-8.67% News Effect
+6.6% Peak Tracked
-4.4% Trough Tracked
-$16M Valuation Impact
$171.61M Market Cap
1.2x Rel. Volume

On the day this news was published, SMID declined 8.67%, reflecting a notable negative market reaction. Argus tracked a peak move of +6.6% during that session. Argus tracked a trough of -4.4% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $16M from the company's valuation, bringing the market cap to $171.61M at that time.

Data tracked by StockTitan Argus on the day of publication.

What This Means

The stock moved -8.7% in the session following this news. A negative reaction despite the mixed Q1 2...
Analysis

The stock moved -8.7% in the session following this news. A negative reaction despite the mixed Q1 2026 results would have fit prior patterns where strong fundamentals sometimes met selling pressure. The quarter delivered revenue of $21.6M and net income of $1.3M, with product sales up 29% but gross margin dropping to 19.9%. Historically, earnings headlines triggered only about a 1.11% average move, often slightly negative, so a sharp decline could have highlighted concern over normalized barrier rentals and lower profitability.

Key Figures

Q1 2026 revenue: $21.6M Product sales: $11.8M (29% YoY growth) Service revenue: $9.8M +5 more
8 metrics
Q1 2026 revenue $21.6M vs $22.7M in Q1 2025
Product sales $11.8M (29% YoY growth) Q1 2026 vs $9.1M prior-year quarter
Service revenue $9.8M Q1 2026 vs $13.6M in Q1 2025
Gross margin 19.9% Q1 2026 vs 30.7% in Q1 2025
Net income $1.3M Q1 2026 vs $3.3M in Q1 2025
EPS (diluted) $0.25 Q1 2026 vs $0.62 in Q1 2025
Cash balance $13.2M As of Mar 31, 2026 vs $11.9M at FY 2025 end
Barrier rental revenue $2.2M Q1 2026 vs $8.4M in Q1 2025

Peers on Argus

SMID gained 10.2% while peers were mixed: LOMA up 4.92%, RETO up 12.25%, but CPA...

SMID gained 10.2% while peers were mixed: LOMA up 4.92%, RETO up 12.25%, but CPAC, CAPT, and CAPS down, including CAPT off 30.9%. Moves do not show a unified sector trend.

Previous Earnings Reports

5 past events · Latest: Apr 14 (Positive)
Same Type Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Apr 14 Full-year 2025 results Positive -1.1% Reported record 2025 revenue and net income with improved gross margin.
Mar 23 Preliminary 2025 results Positive -1.0% Issued preliminary Q4 and full-year 2025 guidance implying record net income.
Nov 13 Q3 2025 earnings Positive -0.7% Showed strong product growth and solid margins despite lower service revenue.
Aug 14 Q2 2025 earnings Positive +0.8% Reported exceptional Q2 2025 growth, higher margins, and robust backlog.
Jul 10 Q1 2025 earnings Positive +7.5% Delivered strong Q1 2025 growth in revenue, earnings, and margins.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases have generally been positive fundamentally, but price reactions have often been muted or negative, with a slight positive average move overall.

Recent Company History

Over the past year, Smith-Midland’s earnings reports have highlighted strong growth, particularly in 2025 when revenue reached $93.4M and net income $12.5M. Quarterly updates repeatedly showed rising product sales and solid margins, while service revenue fluctuated with nonrecurring barrier projects. Despite these positive fundamentals, shares often reacted only modestly, including small declines after record results. Today’s Q1 2026 report, with higher product sales but lower service revenue and margins, continues the theme of mix shifts away from prior special barrier projects.

Historical Comparison

+1.1% avg move · Past earnings headlines moved SMID about 1.11% on average. Today’s 10.2% reaction to Q1 2026 results...
earnings
+1.1%
Average Historical Move earnings

Past earnings headlines moved SMID about 1.11% on average. Today’s 10.2% reaction to Q1 2026 results is a much larger swing than typical earnings responses.

Earnings updates have shown Smith-Midland moving from record 2025 annual performance into 2026 with continued product sales growth but more normalized service revenue as large barrier projects roll off, shifting the revenue mix and margins.

Regulatory & Risk Context

Short Interest: 6.08%
Short Interest
6.08% of float
0% 15% 30%+
low as of 2026-05-29 Days to cover: 17.75

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Company Reports 29 Percent Year-Over-Year Increase in Product Sales and Continued Growth in Core Operations.

MIDLAND, VA / ACCESS Newswire / June 9, 2026 / Smith-Midland Corporation (NASDAQ:SMID), a provider of innovative, high-quality proprietary and patented precast concrete products and systems, today announced its first quarter results for the period ended March 31, 2026.

First Quarter 2026 Summary (compared to prior-year first quarter)

  • Revenue of $21.6 million compared to $22.7 million

  • Product sales increased 29 percent to $11.8 million

  • Gross Profit of $4.3 million compared to $7.0 million

  • Operating income of $1.7 million compared to $4.4 million

  • Net income of $1.3 million, or $0.25 per diluted share, compared to $3.3 million and $0.62

"The Company's 2026 first quarter results reflected continued growth in our core manufacturing and infrastructure related businesses. While our reported earnings were lower than the prior year quarter, it is important to note that the first quarter of 2025 benefited from two significant, high-margin special barrier rental projects that occur on an irregular basis." said Ashley Smith, Chairman and Chief Executive Officer of Smith-Midland. "Product sales increased 29 percent from the prior-year quarter, thanks to continued strong demand for our Easi-Set and Easi-Span buildings, utility vaults and our SlenderWall and architectural panels. We expect this demand to sustain throughout 2026 as infrastructure spending continues at the federal, state and local levels. We also have multiple special project opportunities related to the upcoming America 250 events and the World Cup and continue to prepare for the upcoming barrier replacement cycle driven by MASH-TL3 regulatory compliance and our growing rental fleet. Overall, we remain confident in our ability to meet customer demand across the multiple sectors we serve and deliver long-term value to our shareholders," concluded Smith.

First Quarter 2026 Results

The Company reported 2026 first quarter revenues of $21.6 million compared to $22.7 million in the first quarter of 2025. Product sales for the quarter were $11.8 million, compared to $9.1 million in the prior-year quarter. Service revenue, which includes barrier rentals, royalty income and shipping and installation, was $9.8 million compared to $13.6 million in the first quarter of 2025.

Gross profit was $4.3 million compared to $7.0 million in the prior year quarter. Gross margin for the quarter was 19.9% compared to 30.7%. The decrease was primarily due to two special barrier rental projects in the first quarter of 2025 that did not recur in the current year quarter.

Operating income for the quarter was $1.7 million compared to $4.4 million in the prior-year quarter. Net income for the first quarter was $1.3 million, or $0.25 per diluted share, compared to net income of $3.3 million, or $0.62 per diluted share in the first quarter of 2025.

Product Sales

Total product sales for the first quarter of 2026 were $11.8 million compared to $9.1 million in the prior-year quarter. Soundwall sales were $3.4 million compared to $3.8 million in the first quarter of 2025. Easi-Set and Easi-Span Building sales increased to $2.9 million compared to $2.1 million in the prior-year quarter due to increased demand for plant and site assembled buildings and restrooms. Barrier sales were $1.9 million compared to $1.3 million. Utility product sales were $1.4 million, a 42 percent increase compared to the prior-year quarter, reflecting increased demand in utility and infrastructure-related markets. Miscellaneous wall and product sales totaled $634,000, compared to $954,000 in the first quarter of 2025. The Company reported approximately $1.5 million of SlenderWall and architectural panel sales in the first quarter of 2026, compared to no sales in the first quarter of the prior year reflecting continued market adoption and diversification of the Company's product portfolio.

Service Revenue

Service revenue which is comprised of royalty income, barrier rental revenue, and shipping and installation totaled $9.8 million in the first quarter of 2026 compared to $13.6 million in the prior-year quarter. Barrier rental revenue was $2.2 million compared to $8.4 million in the first quarter of 2025. The decrease is attributed to two special barrier projects that were installed and completed during the first quarter of 2025. Likewise, although we have been awarded smaller special barrier projects in the second quarter of 2026, we expect that revenue and operating income in the second quarter of 2026 will not compare favorably to the second quarter of 2025 in which there was a large special barrier project. Barrier rental revenue in the 2026 second quarter will be in line with other quarters in which larger special barrier projects did not occur. Shipping and installation revenue was $6.8 million compared to $4.3 million in the prior-year quarter. The increase is primarily attributed to greater shipping and installation activity of products that were mostly produced in 2025. Royalty income decreased eight percent year over year to $823,000.

Balance Sheet and Liquidity

As of March 31, 2026, Smith-Midland's cash totaled $13.2 million compared to $11.9 million at the end of fiscal 2025. Account receivables totaled $29.9 million, and debt totaled $4.3 million as of March 31, 2026. Capital spending totaled $1.6 million in the first quarter of 2026.

Macro Environment and Outlook

The Company anticipates increased product sales for the full year of 2026 compared to 2025, but on which there can be no assurance. Infrastructure initiatives across the United States continue to drive greater bidding activity and a potential subsequent increase in backlog for its portfolio of patented, proprietary, and custom products. Inflationary pressures still remain, and the Company continues to manage its materials costs while attracting and retaining skilled labor. Backlog was approximately $48.1 million recorded as of May 2025 compared to $52.4 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, and believes current bidding activity and project opportunities support continued long-term growth despite ongoing economic uncertainties.

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 United States Government, the risk of less government spending on infrastructure than anticipated, inflationary factors including potential recession, our material weaknesses in internal controls, cyber security risks, general business and economic conditions, 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
shooser@threepa.com; jbeisler@threepa.com

SOURCE: Smith-Midland



View the original press release on ACCESS Newswire

FAQ

How did Smith-Midland (NASDAQ:SMID) perform in its Q1 2026 earnings?

Smith-Midland reported lower overall revenue and earnings in Q1 2026 versus 2025. According to Smith-Midland, revenue was $21.6 million, net income was $1.3 million, or $0.25 per diluted share, as prior-year results benefited from large special barrier rental projects.

What was Smith-Midland's Q1 2026 revenue mix between product sales and services?

Smith-Midland generated higher product sales but lower service revenue in Q1 2026. According to Smith-Midland, product sales rose 29% to $11.8 million, while service revenue, including barrier rentals and shipping and installation, declined to $9.8 million from $13.6 million a year earlier.

Why did Smith-Midland's gross margin decline in Q1 2026 compared to 2025?

Smith-Midland's gross margin fell mainly due to fewer high-margin barrier rentals. According to Smith-Midland, gross margin was 19.9% versus 30.7%, reflecting the absence of two significant special barrier rental projects that boosted the first quarter of 2025 results.

How did barrier rental revenue affect Smith-Midland (SMID) results in early 2026?

Barrier rental revenue was significantly lower in Q1 2026, pressuring results. According to Smith-Midland, barrier rental revenue decreased to $2.2 million from $8.4 million, and management expects Q2 2026 revenue and operating income to compare unfavorably with the strong Q2 2025 barrier project.

What were Smith-Midland's key growth areas in Q1 2026?

Growth came from product categories like buildings, barriers, utilities, and panels. According to Smith-Midland, Easi-Set and Easi-Span building sales increased to $2.9 million, utility products rose 42%, barrier sales reached $1.9 million, and SlenderWall and architectural panel sales were about $1.5 million.

What is Smith-Midland's cash, debt, and capital spending position after Q1 2026?

Smith-Midland reported higher cash and modest debt at quarter-end. According to Smith-Midland, cash totaled $13.2 million, debt was $4.3 million as of March 31, 2026, and capital spending in the first quarter of 2026 was $1.6 million.

What does Smith-Midland's reported backlog indicate for future revenues?

Backlog suggests a solid pipeline, though slightly below the prior year. According to Smith-Midland, backlog was approximately $48.1 million as of May 2025 versus $52.4 million a year earlier, with most projects expected to be fulfilled within 12 months but some extending multi-year.