SMITH MIDLAND CORP
For the period ended Sep 30, 2025. Filed Nov 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 14, 2025
SMID$26.11+3.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001654954-25-009560
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-14.
0001654954-25-013097
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 57 previous paragraphs and 56 current paragraphs.
20 unchanged; 35 reworded; 1 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 21 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024 ** **
Removed paragraphs (2)
Previous report
Three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024 ** **
Previous report
The Company's outstanding notes payable are financed at fixed rates of interest. This leaves the Company protected from fluctuating interest rates. Increases in such rates will only affect the interest paid by the Company if new debt is obtained, or the available line of credit is drawn upon, with a variable interest rate.
Reworded paragraphs (35)
Previous wording
Overall, the Company’s financial bottom line performance was higher for the first six months of 2025 when compared to the first six months of 2024. The Company had net income for the three and six months ended June 30, 2025 of $4,171 and $7,498, respectively, compared to a net income of $1,981 and $3,129 for the three and six months ended June 30, 2024, respectively. Total revenue increased by $6,547 to $26,186 for the three months ended June 30, 2025 from $19,639 for the three months ended June 30, 2024. Total revenue increased by $12,490 to $48,884 for the six months ended June 30, 2025 from $36,394 for the six months ended June 30, 2024. The increase in revenue is mainly from special barrier project sales that occurred in the first and second quarters of 2025, an increase in soundwall sales, and Easi-Set building sales, royalty income, and shipping and installation revenue.
Current wording
Overall, the Company’s financial bottom line performance was higher for the first nine months of 2025 when compared to the first nine months of 2024. The Company had net income for the three and nine months ended September 30, 2025 of $2,877 and $10,375, respectively, compared to a net income of $3,150 and $6,278 for the three and nine months ended September 30, 2024, respectively. Total revenue of $21,451 was $2,131 lower for the three months ended September 30, 2025 from $23,582 for the three months ended September 30, 2024. The lower revenue in the third quarter of 2025 when compared to the third quarter of 2024 was due primarily to a special barrier project that occurred in the third quarter of 2024 that did not recur in the third quarter of 2024. Total revenue increased by $10,358 to $70,335 for the nine months ended September 30, 2025 from $59,977 for the nine months ended September 30, 2024. The increase in revenue for the nine month period is mainly from special barrier project sales that occurred in the first and second quarters of 2025, an increase in soundwall sales, SlenderWall sales, Easi-Set building sales, royalty income, and shipping and installation revenue.
Previous wording
Cost of sales as a percentage of revenue, not including royalties, decreased to 72% for the three months ended June 30, 2025 compared to 77% for the three months ended June 30, 2024. Cost of sales as a percentage of revenue, not including royalties, decreased to 72% for the six months ended June 30, 2025 compared to 78% for the six months ended June 30, 2024. The decrease is primarily due to the increase in revenue from the special barrier projects that were performed in the first and second quarters of 2025 which have a higher margin and lower cost of sales when compared to product margin and product cost of sales.
Current wording
Cost of sales as a percentage of revenue, not including royalties, increased to 77% for the three months ended September 30, 2025 compared to 75% for the three months ended September 30, 2024. The increase for the third quarter of 2025 as compared to the same quarter in 2024 is primarily due to the increase in revenue from a special barrier project that was performed in the third quarter of 2024 which have a higher margin and lower cost of sales when compared to product margin and product cost of sales. Cost of sales as a percentage of revenue, not including royalties, decreased to 74% for the nine months ended September 30, 2025 compared to 77% for the nine months ended September 30, 2024. The decrease for the nine month period is primarily due to the increase in revenue from the special barrier projects that were performed in the first and second quarters of 2025 which have a higher margin and lower cost of sales when compared to product margin and product cost of sales.
Previous wording
Operating income was $5,518 for the three month period ended June 30, 2025, as compared to an operating income of $2,673 for the three month period ended June 30, 2024. Operating income was $9,905 for the six month period ended June 30, 2024, as compared to $4,182 for the six month period ended June 30, 2024. Operating expenses for the second quarter of 2025 were $2,268 compared to $2,460 for the second quarter of 2024. Operating expenses for the first six months of 2025 were $4,856 compared to $4,863 for the first six months of 2024.
Current wording
Operating income was $3,854 for the three month period ended September 30, 2025, as compared to an operating income of $3,848 for the three month period ended September 30, 2024. Operating income was $13,759 for the nine month period ended September 30, 2025, as compared to $8,031 for the nine month period ended September 30, 2024. Operating expenses for the third quarter of 2025 were $1,905 compared to $2,730 for the third quarter of 2024. Operating expenses for the first nine months of 2025 were $6,761 compared to $7,593 for the first nine months of 2024.
Previous wording
Income tax expense for the three month period ended June 30, 2025 was $1,311, or an effective tax rate of 24%, as compared to an income tax expense of $632, or an effective tax rate of 24% for the three month period ended June 30, 2024. Income tax expense for the six month period ended June 30, 2025 was $2,331, or an effective tax rate of 24%, as compared to an income tax expense of $988, or an effective tax rate of 24% for the six month period ended June 30, 2024.
Current wording
Income tax expense for the three month period ended September 30, 2025 was $994, or an effective tax rate of 26%, as compared to an income tax expense of $694, or an effective tax rate of 18% for the three month period ended September 30, 2024. Income tax expense for the nine month period ended September 30, 2025 was $3,325, or an effective tax rate of 24%, as compared to an income tax expense of $1,683 or an effective tax rate of 21% for the nine month period ended September 30, 2024.
Previous wording
As of August 2, 2025, the Company’s sales backlog was approximately $54 million, as compared to approximately $59 million around the same time in the prior year. It is estimated that most of the projects in the current sales backlog will be produced within 12 months, but a few will be produced over multiple years. The Company anticipates funding related to the Infrastructure Investment and Jobs Act to begin coming through the state and local governments in the latter half of 2025 and beyond to further promote growth in the revenue related to the highway, transportation, and infrastructure markets, although no assurance can be provided. The Company continues to increase marketing and sales efforts towards SlenderWall sales and barrier rentals, in line with long-term strategic objectives.
Current wording
As of November 1, 2025, the Company’s sales backlog was approximately $54.8 million, as compared to approximately $62.8 million around the same time in the prior year. It is estimated that most of the projects in the current sales backlog will be produced within 12 months, but a few will be produced over multiple years. The Company anticipates funding related to the Infrastructure Investment and Jobs Act to continue coming through the state and local governments in the latter half of 2025 and beyond to further promote growth in the revenue related to the highway, transportation, and infrastructure markets, although no assurance can be provided. The Company continues to increase marketing and sales efforts towards SlenderWall sales and barrier rentals, in line with long-term strategic objectives.
Previous wording
Revenue includes product sales, barrier rentals, royalty income, and shipping and installation revenues. Product sales are further divided into soundwall, architectural and SlenderWall™ panels, miscellaneous wall panels, highway barrier, Easi-Set® buildings, utility products, and miscellaneous precast products. The following table summarizes the sales by product type and comparison for the three and six month periods ended June 30, 2025 and 2024.
Current wording
Revenue includes product sales, barrier rentals, royalty income, and shipping and installation revenues. Product sales are further divided into soundwall, architectural and SlenderWall™ panels, miscellaneous wall panels, highway barrier, Easi-Set® buildings, utility products, and miscellaneous precast products. The following table summarizes the sales by product type and comparison for the three and nine month periods ended September 30, 2025 and 2024.
Previous wording
Soundwall Sales - Soundwall sales were significantly higher for the three and six month periods ended June 30, 2025, compared to the same periods in 2024. The increase is due to higher production volumes at all three plants, as the Company increased production output to execute and deliver on the Company’s increased backlog. Soundwall sales are expected to trend similarly throughout the remainder of 2025 as compared to the first half of 2025, although no assurance can be given.
Current wording
Soundwall Sales - Soundwall sales were significantly higher for the three and nine month periods ended September 30, 2025, compared to the same periods in 2024. The increase is due to higher production volumes at all three plants, as the Company increased production output to execute and deliver on the Company’s increased backlog. Soundwall sales are expected to trend similarly throughout the remainder of 2025 as compared to the first nine months of 2025, although no assurance can be given.
Previous wording
Architectural Panel Sales – There were no Architectural panel sales for the three and six months ended June 30, 2025. In 2024 there was production of two architectural projects that started production at the end of the first quarter of 2024. Architectural sales are expected to trend higher throughout 2025 as compared to the first half of 2025, although no assurance can be given.
Current wording
Architectural Panel Sales – Architectural panel sales commenced in the third quarter of 2025 as compared to no architectural panel sales in the first two quarters of 2025. In 2024 there was production of two architectural projects that started production at the end of the first quarter of 2024. Architectural sales are expected to trend higher throughout the remainder of 2025 as compared to the first nine months of 2025, although no assurance can be given.
Previous wording
SlenderWall Sales - SlenderWall sales increased for the three and six months ended June 30, 2025, as compared to the same periods in 2024. A SlenderWall project was in production during the second half of 2025 and the Company did not have a SlenderWall project in production during the first half of 2024. The Company continues to focus sales initiatives on SlenderWall, but no assurance can be given as to the success of this endeavor.
Current wording
SlenderWall Sales - SlenderWall sales increased for the three and nine months ended September 30, 2025, as compared to the same periods in 2024. The Company produced SlenderWall projects in the nine month period ended September 30, 2025 and the Company did not have a SlenderWall project in production during the first nine months of 2024. The Company continues to focus sales initiatives on SlenderWall, but no assurance can be given as to the success of this endeavor.
Previous wording
Miscellaneous Wall Sales - Miscellaneous wall sales decreased for the three and six month periods ended June 30, 2025 compared to the same periods in 2024. Miscellaneous wall sales were down due to lower production volumes in the first and second quarters of 2025 as compared to 2024. Miscellaneous wall sales are expected to trend similarly throughout 2025 as the first half of 2025, although no assurance can be provided.
Current wording
Miscellaneous Wall Sales - Miscellaneous wall sales increased for the three month period and decreased for the nine month period ended September 30, 2025 compared to the same periods in 2024. For the nine month period, miscellaneous wall sales were down due to lower production volumes as compared to 2024. Miscellaneous wall sales are expected to trend similarly through the remainder of 2025 as the first nine months of 2025, although no assurance can be provided.
Previous wording
Barrier Sales - Barrier sales increased slightly for the three month period and decreased slightly for the six month period ended June 30, 2025, compared to the same periods in 2024. The decrease over the six month period is consistent with the Company’s continuing shift in marketing efforts from barrier sales to higher margin barrier rentals in the Delaware to Virginia region. Barrier sales are expected to trend similarly throughout 2025 as compared to the first half of 2025, although no assurance can be given.
Current wording
Barrier Sales - Barrier sales increased slightly for the three month period and decreased slightly for the nine month period ended September 30, 2025, compared to the same periods in 2024. The decrease over the nine month period is consistent with the Company’s continuing shift in marketing efforts from barrier sales to higher margin barrier rentals in the Delaware to Virginia region. Barrier sales are expected to trend similarly throughout the remainder of 2025 as compared to the first nine months of 2025, although no assurance can be given.
Previous wording
Easi-Set® and Easi-Span Building Sales - Building and restroom sales increased for the three and six month periods ended June 30, 2025, compared to the same periods in 2024, due to increased building sales at all manufacturing plants. Building and restroom sales are expected to continue to trend similarly throughout the remainder of 2025 compared to the first half of 2025.
Current wording
Easi-Set® and Easi-Span Building Sales - Building and restroom sales increased for the three and nine month periods ended September 30, 2025, compared to the same periods in 2024, due to increased building sales at all manufacturing plants. Building and restroom sales are expected to continue to trend similarly throughout the remainder of 2025 compared to the first nine months of 2025.
Previous wording
Utility Sales - Utility sales decreased significantly for the three and six month periods ended June 30, 2025, compared to the same periods in 2024. During 2024, the Company has seen a surge in demand for utility vaults in the Northern Virginia market to support the data center growth. Utility sales are expected to trend higher for the remainder of 2025 as compared to the first half of 2025, although no assurance can be provided.
Current wording
Utility Sales - Utility sales decreased significantly for the three and nine month periods ended September 30, 2025, compared to the same periods in 2024. During 2024, the Company has seen a surge in demand for utility vaults in the Northern Virginia market to support the data center growth. Utility sales are expected to trend higher for the remainder of 2025 as compared to the first nine months of 2025, although no assurance can be provided.
Previous wording
Miscellaneous Product Sales - Miscellaneous products are products that are produced or sold that do not meet the criteria defined for other revenue categories. Examples would include precast concrete slabs, concrete blocks, or small add-on items. Miscellaneous product sales decreased for the three and six month periods ended June 30, 2025, compared to the same periods in 2024. The decrease is mainly from the Virginia plant which had one large project in the first half of 2024 for the production of precast beams and platforms and no similar project in the first half of 2025. Miscellaneous product sales are expected to trend similarly throughout 2025 as compared to the first half of 2025, although no assurance can be given.
Current wording
Miscellaneous Product Sales - Miscellaneous products are products that are produced or sold that do not meet the criteria defined for other revenue categories. Examples would include precast concrete slabs, concrete blocks, or small add-on items. Miscellaneous product sales decreased for the three and nine month periods ended September 30, 2025, compared to the same periods in 2024. The decrease is mainly from the Virginia plant which had one large project in the first nine months of 2024 for the production of precast beams and platforms and no similar project in the first nine months of 2025. Miscellaneous product sales are expected to trend similarly throughout the remainder of 2025 as compared to the first nine months of 2025, although no assurance can be given.
Previous wording
Barrier Rentals – Barrier rentals increased for the three and six month periods ended June 30, 2025 compared to the same periods in 2024. This increase is mainly attributed to two special barrier projects, one in each of the first and second quarters of 2025 as well as an overall increase in utilization of rental barriers. Barrier rental revenue, excluding revenue from special barrier projects, is expected to trend higher throughout 2025 as compared to barrier rental revenue, excluding revenue from special barrier projects, in the first half of 2025, although no assurance can be given.
Current wording
Barrier Rentals – Barrier rentals decreased for the three month period and increased for the nine month period ended September 30, 2025 compared to the same periods in 2024. For the third quarter, the decrease is mainly attributed to a special barrier project performed by the Company in the third quarter of 2024 that did not recur in the third quarter of 2025. For the nine month period, this increase is mainly attributed to two special barrier projects, one in each of the first and second quarters of 2025 as well as an overall increase in utilization of rental barriers. Barrier rental revenue, excluding revenue from special barrier projects, is expected to trend higher throughout the remainder of 2025 as compared to barrier rental revenue, excluding revenue from special barrier projects, in the first nine months of 2025, although no assurance can be given.
Previous wording
Royalty Income – Royalties increased for the three and six month periods ended June 30, 2025, compared to the same periods in 2024. The increase is related to higher barrier production volumes experienced by the Company’s licensees. It is expected that infrastructure spending and the start of production by licensees of a new, low profile barrier that utilizes the J-J Hook system, will continue to drive royalties. The Company expects royalties for 2025 to exceed royalty income for the full year 2024, although no assurance can be given.
Current wording
Royalty Income – Royalties increased for the three and nine month periods ended September 30, 2025, compared to the same periods in 2024. The increase is related to higher barrier production volumes experienced by the Company’s licensees. It is expected that continued infrastructure spending and the start of production by licensees of a new, low profile barrier that utilizes the J-J Hook system, will continue to drive royalties. The Company expects royalties for 2025 to exceed royalty income for the full year 2024, although no assurance can be given.
Previous wording
Shipping and Installation – Shipping revenue results from shipping our products to the customers' final destination and is recognized when the shipping services take place. Installation activities include installation of our products at the customers’ construction site. Installation revenue results when attaching architectural wall panels to a building, installing an Easi-Set® or Easi-Span building at a customers' site, setting highway barrier, or setting any of our other precast products at a site specific to the requirements of the owner. Shipping and installation revenues increased for the three and six month periods ended June 30, 2025 compared to the same periods in 2024. The increase is mainly attributed to the increase in barrier rental from the special barrier projects, and shipping and installation of SlenderWall and soundwalls.
Current wording
Shipping and Installation – Shipping revenue results from shipping our products to the customers' final destination and is recognized when the shipping services take place. Installation activities include installation of our products at the customers’ construction site. Installation revenue results when attaching architectural wall panels to a building, installing an Easi-Set® or Easi-Span building at a customers' site, setting highway barrier, or setting any of our other precast products at a site specific to the requirements of the owner. Shipping and installation revenues increased for the three and nine month periods ended September 30, 2025 compared to the same periods in 2024. The increase is mainly attributed to the increase in barrier rental from the special barrier projects, and shipping and installation of SlenderWall and soundwalls.
Previous wording
Cost of Sales - Total cost of sales as a percent of revenue, excluding royalties, for the three months ended June 30, 2025, was 72%, as compared to 77% for the three months ended June 30, 2024. Total cost of sales as a percent of revenue, excluding royalties, for the six months ended June 30, 2025, was 72%, as compared to 78% for the six months ended June 30, 2024. The decrease in cost of sales as a percentage of revenue, not including royalties, for the three and six months ended June 30, 2025, compared to the three and six months ended June 30, 2024, is due primarily to the revenue from the large special barrier projects that were performed in the first and second quarters of 2025, which have a higher margin and lower cost of sales as a percent of revenue when compared to product margins and product cost of sales as a percent of revenue.
Current wording
Cost of Sales - Cost of sales as a percentage of revenue, not including royalties, increased to 77% for the three months ended September 30, 2025 compared to 75% for the three months ended September 30, 2024. The increase for the third quarter of 2025 as compared to the same quarter in 2024 is primarily due to the increase in revenue from a special barrier project that was performed in the third quarter of 2024 which has a higher margin and lower cost of sales when compared to product margin and product cost of sales. Cost of sales as a percentage of revenue, not including royalties, decreased to 74% for the nine months ended September 30, 2025 compared to 77% for the nine months ended September 30, 2024. The decrease for the nine month period is primarily due to the increase in revenue from the special barrier projects that were performed in the first and second quarters of 2025 which have a higher margin and lower cost of sales when compared to product margin and product cost of sales.
Previous wording
General and Administrative Expenses - For the three months ended June 30, 2025, the Company's general and administrative expenses decreased to $1,514 from $1,669 during the same period in 2024. For the six months ended June 30, 2025, the Company's general and administrative expenses decreased to $3,098 from $3,218 during the same period in 2024. General and administrative expense as a percentage of total revenue was 6% and 9% for the three month periods ended June 30, 2025 and 2024, respectively. General and administrative expense as a percentage of total revenue was 6% and 9% for the six month periods ended June 30, 2025 and 2024, respectively. Such expenses decreased due to lower salaries and wages. The salaries and wages are expected to slightly increase for the second half of 2025 as compared to the first six months of 2025.
Current wording
General and Administrative Expenses - For the three months ended September 30, 2025, the Company's general and administrative expenses decreased to $1,100 from $1,720 during the same period in 2024. For the nine months ended September 30, 2025, the Company's general and administrative expenses decreased to $4,198 from $4,938 during the same period in 2024. General and administrative expense as a percentage of total revenue was 5% and 7% for the three month periods ended September 30, 2025 and 2024, respectively. General and administrative expense as a percentage of total revenue was 6% and 8% for the nine month periods ended September 30, 2025 and 2024, respectively. Such expenses decreased due to lower staffing levels impacting salaries and wages and an arbitration settlement that included the recovery of $458 in previously reserved receivables which offset general and administrative expenses in the third quarter of 2025. Salaries and wages are expected to increase for the remainder of 2025 as compared to the first nine months of 2025 as additional administrative staff are hired.
Previous wording
Selling Expenses* -* Selling expenses for the three months ended June 30, 2025 decreased to $754 from $791 for the same period in 2024. The slight decrease is due to a reduction in salaries and wages. Selling expenses for the six months ended June 30, 2025 increased by $113 to $1,758 from $1,645 in the same six month period in 2024. The increase is due to higher sales commissions and selling expenses in the first quarter of 2025. The Company expects selling expenses to increase in future periods with the plan for additional sales associates and increased advertising spending aligning with the strategy to increase SlenderWall sales and barrier rentals.
Current wording
Selling Expenses* -* Selling expenses for the three months ended September 30, 2025 decreased to $805 from $1,010 for the same period in 2024. The slight decrease is due to a reduction in staffing levels impacting salaries and wages. Selling expenses for the nine months ended September 30, 2025 decreased by $92 to $2,563 from $2,655 in the same nine month period in 2024. Similarly to the third quarter, the slight decrease for the nine month period is due to a reduction in staffing levels impacting salaries and wages. The Company expects selling expenses to increase in future periods with the plan for additional sales associates and increased advertising spending aligning with the strategy to increase SlenderWall sales and barrier rentals.
Previous wording
Operating Income - The Company had operating income for the three month period ended June 30, 2025 of $5,859 compared to $2,673 for the same period in 2024. The Company had operating income for the six month period ended June 30, 2025 of $10,246 compared to $4,182 for the same period in 2024. The increase is mainly due to the increase in revenue and decrease in cost of sales as a percent of revenue.
Current wording
Operating Income - The Company had operating income for the three month period ended September 30, 2025 of $3,854 compared to $3,848 for the same period in 2024. The Company had operating income for the nine month period ended September 30, 2025 of $13,759 compared to $8,031 for the same period in 2024. For the nine month period, the increase is mainly due to the increase in revenue and decrease in cost of sales as a percent of revenue.
Previous wording
Interest Expense - Interest expense was $62 and $59 for the three month periods ended June 30, 2025 and 2024, respectively. Interest expense was $117 and $119 for the six month periods ended June 30, 2025 and 2024, respectively. The Company expects interest expense for the full year of 2025 to be lower compared to the full year of 2024 due to the decrease in level of indebtedness.
Current wording
Interest Expense - Interest expense was $44 and $56 for the three month periods ended September 30, 2025 and 2024, respectively. Interest expense was $161 and $175 for the nine month periods ended September 30, 2025 and 2024, respectively. The Company expects interest expense for the full year of 2025 to be lower compared to the full year of 2024 due to the decrease in level of indebtedness.
Previous wording
Income Tax Expense - The Company had an income tax expense of $1,311, or an effective tax rate of 24%, for the three months ended June 30, 2025, compared to income tax expense of $632, or an effective tax rate of 24% for the same period in 2024. The Company had an income tax expense of $2,331, or an effective tax rate of 24%, for the six months ended June 30, 2025, compared to income tax expense of $988, or an effective tax rate of 24% for the same period in 2024.
Current wording
Income Tax Expense - The Company had an income tax expense of $994, or an effective tax rate of 26%, for the three months ended September 30, 2025, compared to income tax expense of $694, or an effective tax rate of 18% for the same period in 2024. The Company had an income tax expense of $3,325, or an effective tax rate of 24%, for the nine months ended September 30, 2025, compared to income tax expense of $1,683, or an effective tax rate of 21% for the same period in 2024. The rate was lower for the prior nine month period due in part to the tax impact of vested stock compensation in 2024.
Previous wording
Net Income - The Company had net income of $4,171 and $7,498 for the three and six months ended June 30, 2025, respectively, compared to $1,981 and $3,129 for the three and six months ended June 30, 2024, respectively. The basic and diluted earnings per share was $0.79 and $1.41, respectively, for the three and six months ended June 30, 2025, and the basic and diluted earnings per share was $0.37 and $0.59, respectively, for the three and six months ended June 30, 2024, respectively.
Current wording
Net Income - The Company had net income of $2,877 and $10,375 for the three and nine months ended September 30, 2025, respectively, compared to $3,150 and $6,278 for the three and nine months ended September 30, 2024, respectively. The basic and diluted earnings per share was $0.54 and $1.96, respectively, for the three and nine months ended September 30, 2025, and the basic and diluted earnings per share was $0.59 and $1.18, respectively, for the three and nine months ended September 30, 2024, respectively.
Previous wording
The Company has a mortgage note payable to Burke & Herbert Bank & Trust Company, formerly Summit Community Bank (the “Bank”) for the construction of its North Carolina facility. The note carries a ten-year term at a fixed interest rate of 3.64% annually per the Promissory Note Rate Conversion Agreement, with monthly payments of $22, and is secured by all of the assets of Smith-Carolina and a guarantee by the Company. The balance of the note payable at June 30, 2025 and December 31, 2024 was $1,067 and $1,166 respectively.
Current wording
The Company has a mortgage note payable to Burke & Herbert Bank & Trust Company, formerly Summit Community Bank (the “Bank”), for the construction of its North Carolina facility. The note carries a ten-year term at a fixed interest rate of 3.64% annually per the Promissory Note Rate Conversion Agreement, with monthly payments of $22, and is secured by all of the assets of Smith-Carolina and a guarantee by the Company. The balance of the note payable at September 30, 2025 and December 31, 2024 was $980 and $1,166 respectively. The loan matures on October 10, 2029.
Previous wording
The Company also has a note payable to the Bank in the amount of $1,425 and $1,536 as of June 30, 2025 and December 31, 2024 respectively. The loan is collateralized by a first lien position on the Midland, VA plant, building, and assets. The interest rate per the Promissory Note is fixed at 3.99% per annum, with principal and interest payments payable monthly in the amount of $27. The loan matures on March 27, 2030.
Current wording
The Company also has a note payable to the Bank in the amount of $1,342 and $1,536 as of September 30, 2025 and December 31, 2024 respectively. The loan is collateralized by a first lien position on the Midland, VA plant, building, and assets. The interest rate per the Promissory Note is fixed at 3.99% per annum, with principal and interest payments payable monthly in the amount of $27. The loan matures on March 27, 2030.
Previous wording
On February 10, 2022, the Company completed the financing for its acquisition of certain real property in Midland, VA from the fourth quarter of 2021, totaling approximately 29.8 acres, with a note payable to the Bank. The loan is collateralized by a first lien position on the related real property. The interest rate is fixed at 4.09% per annum, with principal and interest payments payable monthly over 180 months for $21. The loan matures on February 10, 2037. The balance of the note payable on June 30, 2025 and December 31, 2024 was $2,323 and $2,379 respectively.
Current wording
On February 10, 2022, the Company completed the financing for its acquisition of certain real property in Midland, VA from the fourth quarter of 2021, totaling approximately 29.8 acres, with a note payable to the Bank. The loan is collateralized by a first lien position on the related real property. The interest rate is fixed at 4.09% per annum, with principal and interest payments payable monthly over 180 months for $21. The loan matures on February 10, 2037. The balance of the note payable on September 30, 2025 and December 31, 2024 was $2,264 and $2,379 respectively.
Previous wording
The Company additionally has one smaller installment loan with an annual interest rate of 2.90% maturing in 2025, with a balance at June 30, 2025 and December 31, 2024 totaling $7 and $13 respectively.
Current wording
The Company additionally has one smaller installment loan with an annual interest rate of 2.90% maturing in 2025, with a balance at September 30, 2025 and December 31, 2024 totaling $4 and $13 respectively.
Previous wording
On June 30, 2025, the Company had cash totaling $7,101 compared to cash totaling $7,548 on December 31, 2024. The slight decrease in cash is primarily the result of cash absorbed by the increase in accounts receivable and investing activities through capital spending as described in further detail below. The Company expects its cash position to be favorably affected to the extent that it is successful in collecting outstanding accounts receivable balances.
Current wording
On September 30, 2025, the Company had cash totaling $13,376 compared to cash totaling $7,548 on December 31, 2024. The increase in cash is primarily the result of cash provided by operating income net of cash used by the increase in accounts receivable and investing activities through capital spending as described in further detail below. The Company expects its cash position to be favorably affected to the extent that it is successful in collecting outstanding accounts receivable balances.
Previous wording
The Company’s accounts receivable balances, net of allowance, at June 30, 2025 was $30,312, compared to $19,420 at December 31, 2024. This increase is due primarily to higher billings in the second quarter of 2025.
Current wording
The Company’s accounts receivable balances, net of allowance, at September 30, 2025 was $25,460, compared to $19,420 at December 31, 2024. This increase is due primarily to higher billings in the second and third quarters of 2025.
Previous wording
Capital spending for the six months ended June 30, 2025 totaled $2,515 as compared to $3,504 for the same period in 2024. The 2025 expenditures were primarily for a ramp up in barrier production to expand the rental fleet, attenuators and plant expansion. The 2024 expenditures were primarily for a new batch plant system for the South Carolina manufacturing facility, utility vault forms for increased production capacity, and crash cushions to expand the Company’s rental product offering. The Company intends to invest approximately $5,000, for the full year 2025, which includes barrier production, expansion of the Virginia and North Carolina manufacturing facilities, soundwall forms for increased production capacity, and miscellaneous manufacturing equipment. Anticipated capital expenditures excludes possible acquisitions.
Current wording
Capital spending for the nine months ended September 30, 2025 totaled $5,382 as compared to $5,543 for the same period in 2024. The 2025 expenditures were primarily for a ramp up in barrier production to expand the rental fleet, attenuators and plant expansion. The 2024 expenditures were primarily for a new batch plant system for the South Carolina manufacturing facility, utility vault forms for increased production capacity, and crash cushions to expand the Company’s rental product offering. The Company intends to invest over $6,000, for the full year 2025, which includes continued barrier production, expansion of the Virginia and North Carolina manufacturing facilities, soundwall forms for increased production capacity, and miscellaneous manufacturing equipment. Anticipated capital expenditures excludes possible acquisitions.
Previous wording
The Company’s cash flow from operations is affected by production schedules set by contractors, which generally provide for payment 30 to 90 days after the products are produced, and with some architectural contracts, retainage may be held until the entire project is completed. This payment schedule may result in liquidity challenges for the Company because it must bear a portion of the cost of production before it receives payment from its customers. The Company’s average days sales outstanding, excluding the effect of unbilled revenue, was 96 days for the six months ended June 30, 2025, compared to 97 days for the six months ended June 30, 2024.
Current wording
The Company’s cash flow from operations is affected by production schedules set by contractors, which generally provide for payment 30 to 90 days after the products are produced, and with some architectural contracts, retainage may be held until the entire project is completed. This payment schedule may result in liquidity challenges for the Company because it must bear a portion of the cost of production before it receives payment from its customers. The Company’s average days sales outstanding, excluding the effect of unbilled revenue, was 91 days for the nine months ended September 30, 2025, compared to 85 days for the nine months ended September 30, 2024.
Previous wording
The Company’s inventory was $7,185 on June 30, 2025, and $6,667 on December 31, 2024, or an increase of $518. The increase in inventory is mainly due to the increase of finished goods inventory compared to the prior year. The increase is related to inventory needed on-hand for the anticipated delivery schedules. Inventory turnover was 10.8, annualized for the six months ended June 30, 2025, compared to 9.4, annualized for the same period in 2024.
Current wording
The Company’s inventory was $7,890 on September 30, 2025, and $6,677 on December 31, 2024, or an increase of $1,213. The increase in inventory is mainly due to the increase of finished goods inventory compared to the prior year. The increase is primarily related to inventory needed on-hand for the anticipated delivery schedules including barrier production for the MASH TL3 compliance. The increased inventory in MASH TL3 compliant barriers is consistent with the Company’s continuing shift in marketing efforts from barrier sales to higher margin barrier rentals in the Delaware to Virginia region. Inventory turnover was 10.2, annualized for the nine months ended September 30, 2025, compared to 9.7, annualized for the same period in 2024.
Previous wording
Raw material costs used in production have slightly increased for the first six months of 2025. The Company anticipates raw material prices to slightly increase for the remainder of 2025, although no assurance can be given regarding future pricing.
Current wording
Raw material costs used in production have slightly increased for the first nine months of 2025. The Company anticipates raw material prices to slightly increase for the remainder of 2025, although no assurance can be given regarding future pricing.
Previous wording
As of August 1, 2025, the Company’s sales backlog was approximately $54 million, as compared to approximately $59 million at the same time in 2024. It is estimated that the majority of the projects in the sales backlog will be produced within 12 months, with a portion extending several years.
Current wording
As of November 1, 2025, the Company’s sales backlog was approximately $54.8 million, as compared to approximately $62.8 million at the same time in 2024. It is estimated that the majority of the projects in the sales backlog will be produced within 12 months, with a portion extending several years.