Core Viewpoint - Smith-Midland Corporation is set to release its third quarter 2025 financial results on November 13, 2025, after market close, indicating a proactive approach to investor communication [1] Group 1: Financial Results - The company will announce its third quarter 2025 financial results on November 13, 2025 [1] Group 2: Investor Engagement - CEO Ashley Smith and CFO Dominic Hunter will present and conduct one-on-one investor meetings at the Southwest IDEAS Conference on November 20, 2025 [1]

Financial Data and Key Metrics Changes - The company reported net earnings of $151.8 million or $1.35 per diluted share for Q4 2025, compared to $103.9 million or $0.90 per diluted share in the prior year period, representing a significant increase [35] - Adjusted earnings for the quarter totaled $155 million or $1.37 per diluted share, up from $97.4 million or $0.84 per diluted share in the prior year [35] - Consolidated core EBITDA was $291.4 million for 2025, a 33% increase from $219 million in the prior year [37] - The consolidated core EBITDA margin improved to 13.8% compared to 11% in the prior year [38] Business Line Data and Key Metrics Changes - The North American Steel Group generated adjusted EBITDA of $239.4 million for the quarter, with an adjusted EBITDA margin of 14.8%, up from 13% in the previous year [39] - The Emerging Business Group reported Q4 net sales of $221.8 million, a 13.4% year-over-year increase, with adjusted EBITDA of $50.6 million, up 19.1% [40] - The Europe Steel Group reported adjusted EBITDA of $39.1 million for 2025, compared to a loss of $3.6 million in the prior year, with a segment adjusted EBITDA margin of 14.8% [41] Market Data and Key Metrics Changes - Finished steel shipments increased by 3% year-over-year, with rebar shipments growing at a similar rate [39] - The Dodge Momentum Index reached a record high in September, indicating strong future construction activity [26] - The company noted substantial pent-up demand in non-residential markets, supported by over $2 trillion in announced corporate investments [27] Company Strategy and Development Direction - The company is focused on integrating the recently announced acquisitions of Foley Products Company and CPMP to create a large-scale precast platform [5][6] - The strategic entry into precast is expected to enhance the company's financial profile and growth potential, with anticipated annual run rate synergies of $25 million to $30 million of EBITDA by year three [10] - The company aims to drive meaningful and sustainable improvements to margins, earnings, cash flow, and returns on capital while reducing volatility [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, citing strong construction activity and a favorable supply landscape [25] - The company anticipates continued demand growth in infrastructure, energy generation, and advanced manufacturing, supported by a significant backlog of potential projects [27] - Management expects the first quarter to be strong for the North American Steel Group, but noted seasonal factors may impact other segments [54] Other Important Information - The company modified its method of calculating adjusted EBITDA to exclude unrealized gains and losses from commodity derivatives, providing a more representative view of operating performance [36] - The total consideration for the acquisitions of Foley and CPMP is approximately $2.5 billion, funded through cash on hand and committed bank financing [17] Q&A Session Summary Question: How much of the demand growth is coming from different sectors? - Management indicated strong infrastructure demand driven by the IIJA, with a bullish outlook for non-residential spending due to a large backlog of potential projects [49][50] Question: Why is the first quarter outlook not more positive despite strong current performance? - Management explained that while the North American Steel Group is expected to perform well, the Europe Steel Group will face challenges due to reduced CO2 credits and seasonal maintenance [54][56] Question: Will the focus be on integration and debt reduction after the acquisitions? - Management confirmed that the immediate focus will be on integrating the new assets and reducing debt, with potential for future acquisitions once leverage is back to acceptable levels [61][62] Question: What is the historical growth rate of Foley and its potential for future growth? - Management noted that Foley has a base level of growth related to GDP and additional growth from market share expansion, expecting to grow above GDP levels in the coming years [66] Question: How quickly can CPMP's margins improve to Foley's levels? - Management indicated that margin improvements for CPMP would be achievable over a three to five year horizon, with some quick wins expected [80][81]

Financial Data and Key Metrics Changes - The company reported fiscal fourth quarter 2025 net earnings of $151.8 million, or $1.35 per diluted share, compared to net earnings of $103.9 million and net earnings per diluted share of $0.90 in the prior year period [32] - Adjusted earnings for the quarter totaled $155 million, or $1.37 per diluted share, compared to $97.4 million and $0.84 per diluted share in the prior year period [32] - Consolidated core EBITDA was $291.4 million for the fourth quarter of 2025, representing a 33% increase from the $219 million generated during the prior year period [33] - The consolidated core EBITDA margin was 13.8% compared to 11% in the prior year period [35] Business Line Data and Key Metrics Changes - North America Steel Group generated adjusted EBITDA of $239.4 million for the quarter, equal to $207 per ton of finished steel shipped, an 18% increase compared to the prior year period [35] - The Emerging Businesses Group reported fourth quarter net sales of $221.8 million, a 13.4% increase year-over-year, while adjusted EBITDA increased by 19.1% to $50.6 million [36] - The Europe Steel Group reported adjusted EBITDA of $39.1 million for the fourth quarter of 2025, compared to a loss of $3.6 million in the prior year period [37] Market Data and Key Metrics Changes - Finished steel shipments increased by 3% compared to a year ago, while rebar shipments from CMC's mills and downstream operations grew at a similar rate [35] - The Dodge Momentum Index reached a record high in September, indicating substantial pent-up demand, particularly within non-residential markets [25] - The company noted a significant backlog of potential projects, with approximately $2 trillion of corporate investments announced in calendar 2025 [26] Company Strategy and Development Direction - The company is focused on integrating the acquisitions of Foley Products Company and Concrete, Pipe and Precast (CPMP) to create a large-scale precast platform [5][12] - The strategic entry into precast is expected to broaden the commercial portfolio and enhance exposure to structural trends in construction [7][8] - The company aims to drive meaningful and sustainable improvements to margins, earnings, cash flow, and returns on capital while reducing volatility [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, citing strong demand across various sectors, including infrastructure and energy [45][47] - The company anticipates a multi-year trend of strong spending in construction, supported by significant project backlogs and structural drivers [26] - Management expects to generate significant value for shareholders through strategic initiatives and operational excellence programs [42] Other Important Information - The company modified its method of calculating adjusted EBITDA to exclude the impact of unrealized gains and losses from undesignated commodity derivatives [32] - The total consideration for the acquisitions of Foley and CPMP is approximately $2.5 billion, funded through cash on hand and committed bank financing [16] - The company expects to prioritize deleveraging in the quarters ahead with a goal of returning below two times net leverage within 18 months [17] Q&A Session Summary Question: Demand from different sectors in construction - Management noted strong infrastructure demand driven by the IIJA and a bullish outlook for non-residential spending, particularly in energy and data centers, while residential markets remain lackluster due to interest rates [45][46] Question: First quarter outlook - The first quarter outlook is expected to be consistent with the fourth quarter, with strong performance in the North America Steel Group but challenges in the Europe Steel Group due to seasonal factors and maintenance outages [48][49] Question: Focus on integration or further acquisitions - Management indicated a focus on integrating the newly acquired assets before considering additional acquisitions, emphasizing the importance of successful integration for future growth [54][55] Question: Historical growth rate for Foley - Foley is expected to grow at a level in excess of GDP over the next couple of years, with ongoing expansions in its territories [58] Question: Margin differences between Foley and CPMP - The margin differentials are attributed to different operating models and the recent acquisitions by CPMP, which may take time to improve [62] Question: Outlook for dividends and buybacks - Management confirmed no plans to change the dividend and indicated a focus on integration and organic growth projects while slowing down share repurchases until leverage is reduced [71][72]

Core Viewpoint - Commercial Metals Company (CMC) has announced the acquisition of Foley Products Company for $1.84 billion, which is expected to enhance CMC's precast concrete platform and financial profile, providing immediate scale and synergy opportunities [1][2][4]. Strategic and Financial Rationale - The acquisition will position CMC as the third largest player in the U.S. precast market, enhancing its presence in the Mid-Atlantic and Southeast regions [4][5]. - Foley Products is recognized for its industry-leading EBITDA margins and cash flow generation capabilities, which will be integrated into CMC's portfolio [4][5]. - The deal is expected to be immediately accretive to earnings per share and free cash flow per share, with anticipated annual run-rate synergies of $25 million to $30 million by year three [1][4][12]. Market Position and Growth Potential - CMC will operate 35 facilities across 14 states post-acquisition, capturing a 17% share of the growing U.S. concrete market, which has revenues of approximately $30 billion [5][7]. - The acquisition of Foley, along with the pending acquisition of Concrete Pipe & Precast (CP&P), is expected to create a new growth platform and enhance CMC's ability to address construction industry challenges [2][5]. Financial Profile Transformation - The combined precast platform is projected to increase CMC's core EBITDA margin by 210 basis points on a pro forma basis, significantly improving free cash flow [12]. - Following the acquisitions, approximately 32% of CMC's total pro forma segment adjusted EBITDA will come from the Emerging Businesses Group and the precast platform, up from 15% in FY 2025 [12]. Synergy Opportunities - CMC anticipates operational synergies of $25 million to $30 million between Foley and CP&P, with additional commercial synergies expected through cross-selling and enhanced product capabilities [5][12]. - The integration of best practices from both Foley and CP&P is expected to drive meaningful value creation and operational efficiencies [5][12].

Core Insights - Smith-Midland Corporation has secured two significant contracts totaling over $2 million, utilizing its proprietary SlenderWall® architectural precast cladding system, which is designed to be lighter, stronger, and more energy-efficient than traditional precast options [1][6] Contract Details - The first contract is with Gilbane Building Company for a precast package exceeding $1 million for the Northern Virginia Community College's (NVCC) Medical Education Campus expansion, covering 34,000 square feet, with production underway and installation scheduled for November 2025 [2][3] - The second contract involves supplying SlenderWall panels for a $1.2 million project at Central Hudson Gas & Electric Corporation's training facility in Lake Katrine, New York, with production starting this summer and installation set for December 2025 [4] Product Features - SlenderWall offers advantages such as reduced material use, built-in insulation, and low-maintenance finishes, making it a sustainable choice for utility and infrastructure projects [5] - The system is noted for its superior energy efficiency, durability, and reduced environmental impact, aligning with the company's commitment to sustainable construction practices [6] Company Overview - Smith-Midland Corporation develops, manufactures, licenses, rents, and sells a variety of precast concrete products primarily for the construction, transportation, and utility industries [7] - The company operates three manufacturing facilities located in Midland, VA, Reidsville, NC, and Columbia, SC, and has a subsidiary, Easi-Set Worldwide, which licenses the production and sale of precast products [8]

Core Viewpoint - Smith-Midland Corporation has secured a contract worth over $4 million to supply J-J Hooks MASH barriers for the I-64 Hampton Roads Express Lanes project in Virginia, indicating strong demand for its precast concrete products [1] Company Summary - Smith-Midland Corporation specializes in innovative, high-quality proprietary and patented precast concrete products and systems [1] - The company’s concrete highway barrier rental division, Concrete Safety Systems (CSS), is involved in providing safety solutions for infrastructure projects [1] Industry Summary - The I-64 widening project aims to expand the highway from two to three lanes, reflecting ongoing infrastructure development in Central Virginia and Hampton Roads [1] - The project is expected to continue through 2026, highlighting a long-term demand for precast concrete products in highway construction [1]

Summary of Commercial Metals Company (CMC) Conference Call on Acquisition of Concrete Pipe and Precast (CPNP) Company and Industry - **Company**: Commercial Metals Company (NYSE: CMC) - **Acquisition Target**: Concrete Pipe and Precast LLC (CPNP) - **Industry**: Precast Concrete Industry - **Total Addressable Market**: Approximately $30 billion, growing faster than the broader concrete sector [8][10] Core Points and Arguments 1. **Strategic Acquisition**: The acquisition of CPNP is seen as a significant advancement in CMC's growth strategy, expected to create long-term value for customers and shareholders [4][14] 2. **Complementary Products**: CPNP offers a full suite of precast products that serve critical applications in infrastructure and construction, enhancing CMC's existing product suite [4][5] 3. **Geographical Synergy**: CPNP's operational footprint includes 17 plants located within 100 miles of CMC's mills, allowing for efficient logistics and operational synergies [5][6] 4. **Financial Profile Improvement**: The acquisition is expected to enhance CMC's financial profile by adding a business with higher, more stable margins and lower capital intensity compared to traditional steel operations [7][15] 5. **Market Trends**: The precast industry benefits from trends such as labor scarcity, the need for predictable project timelines, and increasing infrastructure investments, which are expected to drive demand [10][11] 6. **Operational Efficiencies**: CPNP's products are designed to save labor and time on construction sites, which is increasingly valuable in the current construction landscape [10][47] 7. **Fragmented Market**: The precast industry is fragmented, with the top 10 players holding less than 25% of the market, presenting opportunities for CMC to expand through acquisitions [11][12] Financial Metrics and Projections 1. **Transaction Details**: The acquisition is valued at $675 million, representing a 9.5 times multiple on CPNP's expected 2025 EBITDA, which is projected to be slightly above $70 million with margins in the low 20% range [16][44] 2. **EBITDA Growth**: CMC anticipates annual run-rate synergies of approximately $5 to $10 million by the end of year three, with a potential for $20 to $25 million of EBITDA growth by year three [17][23] 3. **Debt Management**: Post-transaction, CMC's net debt to EBITDA ratio is expected to remain modest at approximately 1.1 times, allowing for continued financial flexibility [18][35] Additional Insights 1. **Growth Strategy**: CMC plans to grow CPNP both organically and through further acquisitions, aiming to create regional strongholds and eventually a national platform [20][21] 2. **Market Penetration**: The precast market is expected to grow due to increased adoption and market penetration, driven by the advantages of precast products over traditional methods [28][66] 3. **Barriers to Entry**: The precast industry has established players, technical complexities, and capital requirements that create barriers to entry for new competitors [51][53] 4. **Customer Relationships**: Strong local relationships and technical expertise are crucial for success in the precast market, which CMC aims to leverage [52][60] Conclusion - CMC's acquisition of CPNP is positioned as a strategic move to enhance its portfolio in the precast concrete industry, tapping into a growing market with favorable trends and operational synergies. The company is optimistic about the financial benefits and long-term growth potential this acquisition will bring.

Acquisition Rationale - Expands CMC's market leadership into the precast concrete industry[5] - Enhances CMC's financial profile via higher, more stable margins and cash flows[5] - Extends growth runway and creates a scalable platform[5] CP&P Overview - CP&P has 17 plants and approximately 700 employees serving 7 core states[8] - CP&P is a leading supplier of concrete precast and pipe products in the Mid-Atlantic and South Atlantic regions[10] - CP&P holds the 1 or 2 position in its core regions[8, 10] Market and Financial Highlights - The U S total addressable market for precast concrete is $30 billion[22] - The forecasted demand CAGR (2024 to 2028) is 5% to 7%[22] - CP&P's revenue growth has a last 5-Year CAGR of 14%[54] - CP&P's EBITDA growth has a last 5-Year CAGR of 23%[54] Transaction Details - The purchase price is $675 million on a debt-free, cash-free basis[63] - The transaction represents a 9 5x multiple of 2025E EBITDA, which is effectively reduced to approximately 8 5x due to a cash tax benefit[58, 63] - Estimated synergies of approximately $5 million to $10 million annually by year 3 are expected from identified optimization opportunities[63]

Summary of Smith-Midland Corporation (SMID) FY Conference Call Company Overview - **Company Name**: Smith-Midland Corporation (SMID) - **Industry**: Precast Concrete Manufacturing - **Market Cap**: Over $200 million - **Share Price**: Approximately $40 to $42 per share - **Historical Context**: Founded in 1960, went public in 1995, currently led by the third-generation CEO Key Points and Arguments Industry Dynamics - **Concrete Barrier Replacement**: Every piece of concrete barrier in the U.S. is in the process of being replaced by 2030, creating a significant tailwind for the company [2][3][25]. - **Regulatory Changes**: New crash test standards from the Federal Highway Administration require the replacement of old barriers with new styles, impacting demand [23][24]. - **Infrastructure Investment**: The Infrastructure and Jobs Act has allocated significant funding for infrastructure projects, with 60% of the funds yet to be spent [12][13]. Business Segments - **Precast Concrete Products**: The company manufactures precast concrete products, including barriers, cladding systems, and transportable buildings [5][7][8]. - **Barrier Rental Business**: Transitioning from selling barriers to renting them has been a strategic shift, with the rental fleet expanding from 50 miles to 100 miles recently [16][18][21]. - **Licensing**: The company licenses its technology to other precast producers, which has been a growing segment due to the demand for new barrier styles [11][35]. Financial Performance - **Revenue Growth**: Projected revenue increase from $59.6 million in 2023 to $78.5 million in 2024, representing a 31.7% growth [54]. - **EBITDA and EPS**: EBITDA expected to reach $12.7 million for 2024, with EPS projected at $1.45 [57]. - **Record Quarterly Revenue**: Q2 2025 revenue reached $26.2 million, the highest in company history, with service revenue nearly doubling [58]. Market Position and Competitive Advantage - **Product Leadership**: The JJ Hook Highway Barrier is the number one barrier in the U.S., with proprietary designs and patents enhancing competitive positioning [7][32]. - **Tailwinds from EVs**: The rise of electric vehicles (EVs) is prompting new crash test designs, which may lead to further product development opportunities [43][44]. - **California Market Opportunity**: Anticipated growth in California due to new regulations banning old-style barriers starting January 1, 2026 [40][42]. Additional Important Insights - **Utilization Rates**: The rental fleet's utilization rate has increased to 90%, indicating strong demand for rental barriers [18]. - **Recurring Revenue Model**: The rental business provides recurring revenue, enhancing cash flow and profitability over time [30]. - **Competition**: Increased competition in the data center market in Northern Virginia is noted, with the company adjusting pricing strategies accordingly [63]. Conclusion Smith-Midland Corporation is positioned to benefit significantly from industry-wide changes in concrete barrier regulations and infrastructure spending. The strategic shift towards barrier rentals and licensing, combined with strong financial performance, positions the company favorably for future growth.

Financial Data and Key Metrics Changes - The company reported a 2% year-over-year increase in revenues for Q2 2025, marking a return to sales growth after a period of decline [6][10] - Adjusted EBITDA increased by 51.4% compared to the previous year, driven by improved margins in the infrastructure segment and lower SG&A spending [7][12] - Net debt decreased to $77.4 million, with gross leverage improving to 2.2 times compared to 2.7 times last year [8][21] Business Line Data and Key Metrics Changes - Infrastructure segment sales rose by 22.4%, primarily due to a 36% increase in precast concrete sales [6][16] - Rail revenues declined by 11.2%, although friction management sales within the rail segment increased by 17.2% [7][14] - The backlog for rail products increased by 42.5% during the quarter, indicating strong future demand [7][15] Market Data and Key Metrics Changes - The backlog for infrastructure solutions totaled $139.2 million, with a 36.8% increase in protective coatings demand [17][25] - The overall backlog improved by 42.5% during the quarter, with significant gains in both rail products and global friction management [15][24] - The company noted that federal project funding began to release in Q2, positively impacting rail customer demand [26] Company Strategy and Development Direction - The company is focusing on organic growth and capital allocation towards growth projects, while also maintaining a stock buyback program [39][21] - The strategic execution in the infrastructure segment is expected to drive continued growth, particularly in precast concrete due to government funding programs [27][28] - The company is also exploring tuck-in acquisitions to support its long-term strategy while managing existing operations effectively [39] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding steady rail customer demand through the remainder of 2025, supported by federal funding [26] - The UK market remains challenging, but the company is taking steps to right-size its operations there [26] - The company anticipates a strong second half of 2025, with a solid order book and favorable business mix [30] Other Important Information - The company successfully negotiated an amendment to its revolving credit facility, increasing borrowing capacity and extending the facility tenure to June 2030 [22] - The effective tax rate for the quarter was reported at 55%, but management expects this to improve as profitability in the UK increases [70][72] Q&A Session Summary Question: Are there high return opportunities in acquisitions or reinvesting in growth projects? - Management indicated a focus on organic growth and capital allocation towards existing operations, while also being open to acquisitions that align with their strategy [39] Question: Is there follow-through on backlog composition for infrastructure and rail products? - Management confirmed strong growth in friction management and precast concrete, with positive backlog support for the second half of the year [41][42] Question: What is the status of the UK business and remaining exposure? - Management acknowledged ongoing challenges in the UK but expressed confidence in the right-sizing efforts and the strength of the US operations [50][52] Question: How does the company envision sales growth across segments in the second half? - Management expects strong seasonal performance in Q3 and Q4, supported by a solid backlog and improved gross profit margins [54][55] Question: What is the focus on the EnviroCast business and its expected contribution? - Management emphasized a cautious approach to entering the new market, focusing on quality and productivity, with expectations for long-term growth rather than immediate contributions [58][60]