Smith-Midland (SMID) investor relations material

Industry trends and market drivers

• Nationwide replacement of all highway concrete safety barriers is underway, driven by updated federal standards, with full compliance required by 2030 in Virginia and 2027 in California.

• Infrastructure investment is a major tailwind, with global demand for new infrastructure projected at $68 trillion by 2040.

• Population growth in the Mid-Atlantic and Southeast U.S. is fueling construction and infrastructure demand.

• Off-site modular construction is gaining traction due to labor shortages and efficiency needs.

Product and service highlights

• Four proprietary products, including J-J Hook barrier and SlenderWall panel, are market leaders in their segments.

• Rental division for highway safety barriers has over 90% utilization, with recurring revenue and upfront payments.

• Licensing of proprietary products is expanding, with over 40 precasters producing under license and royalty revenue growing 10% annually.

• Custom precast products serve diverse markets, including security and architectural applications.

Financial performance and outlook

• Q3 2025 revenue reached $11.9 million, up 11% year-over-year; trailing 12-month revenue was $88.9 million, a 33% increase.

• Backlog stands at $54.8 million, with a strong sales pipeline and expanded sales team in the Southeast.

• Earnings per share for the trailing 12 months rose to $2.23 from $1.45 the prior year.

• Royalty revenue for the first nine months of 2025 was $3.2 million, up 33% from the prior year, and is expected to approach $5 million for the full year.

• Deferred rental income on the balance sheet is about $10 million, reflecting future revenue from barrier rentals.