Smith-Midland (SMID) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $1.4M, down from $4.2M in Q2 2025; six-month net income was $2.7M, down from $7.5M year-over-year.

• Total revenue for Q2 2026 was $23.4M, an 11% decrease from $26.2M in Q2 2025, mainly due to non-recurrence of special barrier projects.

• Backlog as of August 1, 2026, was $57.4M, up 19% sequentially and 6% year-over-year, driven by new project awards.

• Secured major contracts post-quarter, including a $10M I-81 project and a $1.7M data center project.

• Shipping and installation revenue rose sharply, driven by large multi-year projects concluding delivery cycles.

Financial highlights

• Gross profit for Q2 2026 was $5.4M, down from $7.8M in Q2 2025; gross margin declined to 23.2% from 29.7%.

• Operating income for Q2 2026 was $2.0M, down from $5.5M; six-month operating income was $3.7M, down from $9.9M.

• Basic and diluted EPS for Q2 2026 was $0.26, compared to $0.79 in Q2 2025; six-month EPS was $0.51, down from $1.41.

• Cash at June 30, 2026, was $10.7M, with $4.1M in debt; accounts receivable decreased to $22.8M from $27.2M at year-end 2025.

• Product sales were $11.2M, down from $13.4M; service revenue was $12.2M, down from $12.8M.

Outlook and guidance

• Backlog expected to support production through 2026, with most projects to be completed within 12 months.

• Anticipated continued benefit from Infrastructure Investment and Jobs Act funding and infrastructure initiatives.

• Product sales, especially architectural panels and utility products, expected to trend higher in the remainder of 2026.

• Barrier rental revenue (excluding special projects) and royalties expected to trend higher in the second half of 2026.

• Plans to invest in expanding production facilities and rental fleet.