Smith-Midland Corporation Reports 31.7% Revenue Growth to $78.5 Million for Fiscal Year 2024

Smith-Midland Corporation reported significant financial growth for the fiscal year ending December 31, 2024, with total revenue reaching $78.5 million, a 31.7% increase from $59.6 million in 2023. The company’s operating income surged to $9.9 million, up 785% from $1.1 million the previous year. This growth was driven by substantial increases in various product lines, particularly architectural panel sales, which rose by 272%, and utility product sales, which increased by 171%. The net income for the year was $7.7 million, translating to earnings per share of $1.45, compared to $795,000 and $0.15 per share in 2023.

The company experienced notable changes in its revenue streams compared to the previous fiscal period. Soundwall sales increased by 54%, attributed to higher production volumes across all plants, while barrier sales decreased by 50% due to the completion of large projects in the prior year. Additionally, barrier rentals saw a significant increase of 90%, reflecting a strategic shift from sales to rentals, which the company plans to continue in 2025. Overall, the company anticipates that revenues from soundwall and architectural panel sales will remain stable in 2025, although no assurances can be provided.

Operationally, Smith-Midland has focused on expanding its product offerings and enhancing production capabilities. The company’s backlog as of March 3, 2025, was approximately $59.5 million, slightly down from $60.8 million a year earlier, indicating a stable demand for its products. The company has also been investing in its North Carolina facility, with capital expenditures rising to $6.6 million in 2024 from $5 million in 2023. The employee headcount has remained stable, supporting the increased production output necessary to meet growing demand.

The company’s financial health is reflected in its liquidity position, with cash balances at $7.5 million as of December 31, 2024, down from $9.2 million in the previous year. Smith-Midland has maintained compliance with its loan covenants, which include maintaining a tangible net worth of $25 million. The company has a line of credit of $5 million, with no balance outstanding as of year-end, providing additional financial flexibility. Management believes that current cash resources and anticipated cash flow will be sufficient to support operations for at least the next 12 months.

Looking ahead, Smith-Midland is optimistic about its growth trajectory, particularly in the barrier rental market, which is expected to benefit from increased funding related to the Infrastructure Investment and Jobs Act. The company is also committed to improving its internal controls and financial reporting processes, following the identification of material weaknesses in its internal control over financial reporting. Management is actively working on remediation efforts to enhance the effectiveness of its financial reporting and compliance with regulatory requirements.