Smith-Midland (SMID) 16th Annual East Coast IDEAS Conference summary

Market and industry trends

• U.S. highway concrete barriers are being replaced nationwide due to new federal crash test standards, driving demand for new products and rentals.

• Infrastructure and Jobs Act and anticipated new federal funding are fueling strong sector tailwinds.

• Public-private partnerships and modular construction are increasing, with labor shortages accelerating off-site solutions.

• States like California and Texas are rapidly adopting new barrier standards, boosting licensing and royalty opportunities.

• Growth in data centers and utility vaults is contributing to higher utility sales.

Business model and operations

• Operations include manufacturing, licensing, and barrier rental, with three plants covering the East and Southeast U.S.

• Licensing model covers 75 producers, with 45 making the J-J Hooks Barrier; royalties are high-margin and growing.

• Rental fleet is expanding, targeting 850,000 linear feet by 2026, with utilization rates between 85%-92%.

• Special barrier projects for events like FIFA and Grand Prix are lucrative, providing high-margin, short-term revenue.

• Deferred revenue from upfront rental payments provides cash flow stability.

Financial performance and outlook

• 2025 revenue reached $93.4 million, with EBITDA just under $20 million; Q1 2026 revenue was $21.6 million.

• Q1 2026 product revenue rose 29% year-over-year, while barrier rental was lower due to fewer special projects.

• Cash at Q1 2026 was $13.2 million, debt at $4.3 million; trailing 12-month EBITDA at $17.7 million.

• Gross margin for Q1 2026 was 20%, temporarily compressed by product mix and new market entry.

• 2026 outlook expects higher sales in SoftSound, Easi-Set, and utility vaults, with royalty revenue ramping up as new standards are adopted.