The sharp YoY decline in revenue and EPS is a clear miss, but the 19% sequential backlog growth and post-quarter contract wins ($10M I-81, $1.7M data center) suggest H2 2026 production ramp. Monitor Q3 2026 revenue and margin recovery; the utility product segment (126% growth) is a key growth vector. The stock may trade on the backlog trajectory rather than the current quarter's weakness.
Price Chart
Executive Summary
Smith-Midland reported Q2 2026 revenue of $23.4M (down 10.7% YoY from $26.2M) and EPS of $0.26 (down 67.1% from $0.79), driven by the non-recurrence of a large special barrier project. However, backlog grew 19% sequentially to $57.4M, and the company secured a $10M I-81 contract and a $1.7M data center project post-quarter, signaling a potential rebound in H2 2026. The miss on headline numbers is partially offset by strong forward indicators, but the current quarter's decline is material.
Key Financial Metrics
Key Facts
- Revenue fell to $23.4M from $26.2M YoY (-10.7%)
- Net income dropped to $1.4M ($0.26/diluted share) from $4.2M ($0.79)
- Gross margin contracted to 23.2% from 29.7% YoY
- Backlog increased 19% sequentially and 6% YoY to $57.4M as of August 1, 2026
- Secured $10M I-81 contract with VDOT and $1.7M data center project post-quarter
- Utility product sales surged 126% YoY to $2.0M, driven by data center demand
- Cash totaled $10.7M vs $11.9M at FY2025 end; debt was $4.1M
Financial Impact
Revenue down $2.8M YoY; net income down $2.8M YoY; backlog up $3.4M YoY
Risk Factors
- Inflationary pressures on materials and labor costs
- High accounts receivable ($24.6M) relative to cash position
- Non-recurrence of special barrier projects creates lumpy revenue comparisons
- Forward-looking statements on increased product sales are not assured
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001654954-26-007658 |
| Document: smid_ex991.htm | 0001654954-26-007658 |
| Document: 0001654954-26-007658-index-headers.html | 0001654954-26-007658 |
| Document: 0001654954-26-007658-index.html | 0001654954-26-007658 |
| Document: 0001654954-26-007658.txt | 0001654954-26-007658 |
| 8-K Data (Synthetic) | 0001654954-26-007658 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 7, 2026 20d ago | SC 13D/A | $22.20 $22.83 | ▲ +2.84% | ▲ +3.11% | $21.26 (−4.23%) |
Sep 4, 2026 7w ago | Insider Cluster | $26.03 $24.08 | ▼ −7.49% | ▼ −6.28% | $21.26 (−18.33%) |
Aug 14, 2026 10w ago | 8-K | $28.54 $27.50 | ▼ −3.64% | ▼ −2.45% | $21.26 (−25.51%) |
Jun 9, 2026 20w ago | 8-K | $29.50 $29.20 | ▲ +1.02% | ▲ +4.45% | $21.26 (+27.93%) |
Apr 14, 2026 28w ago | 8-K | $31.72 $33.58 | ▲ +5.86% | ▲ +4.22% | $21.26 (−32.98%) |
Mar 24, 2026 31w ago | 8-K | $29.65 $32.53 | ▲ +9.71% | ▲ +10.14% | $21.26 (−28.30%) |
US Market Status
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