Smith-Midland Corporation (SMID) reported a significant net income of $3.3 million for Q1 2025, nearly tripling from $1.1 million a year earlier. Revenue for the quarter reached $22.7 million, a 35% year-over-year increase, driven primarily by a special barrier rental project that contributed $8.4 million. Alongside this growth, the company’s stock has increased by 9.9% since the earnings announcement, outperforming the S&P 500, which rose only 0.1% in the same period.
Gross profit increased to $7 million with an expanded gross margin of 30.7%, while operating income rose to $4.4 million from $1.5 million in the prior year. Although total product sales fell by 15% year-over-year to $9.1 million, service revenues more than doubled to $13.6 million, highlighting the strategic shift toward higher-margin services.
As of May 2025, Smith-Midland’s backlog stood at approximately $52 million, down from $64.6 million a year prior, with expectations to recover through increased marketing and production capacity. The company ended the quarter with $9 million in cash and $4.9 million in total debt.
