Smith-Midland Corporation reported a decline in financial performance for the first quarter of 2026 compared to the same period in 2025. The company recorded total revenue of $21.57 million, a decrease of 5% from $22.70 million in the prior year. This decline was primarily driven by a significant drop in barrier rental revenue, which fell to $2.20 million from $8.43 million, attributed to the absence of a large special barrier project that had positively impacted the previous year's results. In contrast, product sales increased to $11.79 million, up from $9.11 million, and shipping and installation revenue rose to $6.76 million from $4.27 million.
Net income for the quarter was $1.34 million, down from $3.33 million in the first quarter of 2025, resulting in basic and diluted earnings per share of $0.25, compared to $0.63 and $0.62, respectively, in the prior year. The increase in cost of sales as a percentage of revenue, which rose to 83% from 72%, was largely due to the lower-margin nature of product sales compared to the higher-margin special barrier projects. Operating income also decreased significantly to $1.73 million from $4.39 million, reflecting the impact of reduced revenues and increased costs.
In terms of operational developments, Smith-Midland's sales backlog as of May 11, 2026, was approximately $48.1 million, down from $52.4 million a year earlier. The company anticipates that most of the projects in the current backlog will be produced within the next 12 months. The company continues to focus on expanding its manufacturing capacity and enhancing its barrier rental fleet, with plans to invest over $12 million in capital expenditures throughout 2026. This investment will support the production of SlenderWall® products and the expansion of facilities in Virginia and North Carolina.
The company’s cash position improved, with cash totaling $13.22 million at the end of March 2026, up from $11.88 million at the end of December 2025. This increase was primarily due to cash generated from operating activities, which amounted to approximately $3.13 million during the quarter. Accounts receivable also rose to $28.05 million from $27.23 million, reflecting increased product sales activity and growth in unbilled receivables. The company reported a decrease in the allowance for credit losses, which fell to $651,000 from $1.22 million, attributed to improved collection trends.
Looking ahead, Smith-Midland expects continued growth opportunities in the infrastructure market, supported by funding from the Infrastructure Investment and Jobs Act. However, the company cautions that the absence of special barrier projects may negatively impact revenue and operating income in the upcoming quarters. Management remains focused on strategic marketing efforts for SlenderWall® products and barrier rentals, while also addressing material weaknesses in internal controls over financial reporting. The company is committed to enhancing its operational efficiency and financial reporting processes to ensure compliance and improve overall performance.
About SMITH MIDLAND CORP
Smith-Midland Corporation designs, manufactures, and markets precast concrete products and systems for construction, highway, utilities, and farming industries. Its core offerings include innovative products like lightweight exterior wall panels, highway safety barriers, sound barriers, transportable buildings, utility vaults, and erosion control modules. Serving primarily U.S. government agencies and contractors, the company emphasizes proprietary technology, licensing, and efficient installation to provide durable, cost-effective infrastructure solutions.
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