Smith-Midland (SMID) 2024 Southwest IDEAS Conference summary

Business performance and growth

• Achieved record revenue and income in Q3, driven by special projects and increased demand across all product lines.

• Backlog continues to grow, with a target of $100 million to support expanded production capacity.

• Three consecutive record-breaking quarters for revenue and service revenue up 170% in Q3 due to special security projects.

• Strategic plan aims to double company size from $40 million to $80 million, with next five-year plan in development.

• Stock is thinly traded but saw increased volume after joining the Russell 2000.

Product innovation and proprietary technology

• Holds patents and trademarks for proprietary products, including J-J Hooks, Easi-Set buildings, SlenderWall, and SoftSound noise walls.

• J-J Hooks is the leading barrier connection system in North America, approved in 42 states.

• Ongoing R&D includes new barrier systems and computer-simulated crash testing to accelerate product development.

• Low-profile J-J Hooks barrier recently approved in Texas, expected to capture 90% of the market.

• Investment in new products is recouped quickly due to rapid adoption and strong royalty streams.

Market trends and industry drivers

• Federal Infrastructure and Jobs Act funding is fueling infrastructure growth through 2027.

• All U.S. highway concrete barriers are being replaced due to new federal crash test standards (MASH), with deadlines varying by state.

• California's 2026 deadline is expected to drive significant royalty income growth.

• Shift from barrier sales to rentals in core markets, with rental inventory doubled in recent years.

• Public-private partnerships and data center construction are increasing demand for utility vaults and architectural panels.