Friedman Industries, Incorporated Announces First Quarter Results
Rhea-AI Summary
Friedman Industries (NASDAQ: FRD) reported net earnings of approximately $12.8 million and EBITDA of about $19.3 million for the quarter ended June 30, 2026, on net sales of roughly $240.0 million, up 78% year-over-year. Diluted earnings per share were $1.79 versus $0.71 a year earlier.
Quarterly sales volume reached a record ~206,000 tons, up 28% year-over-year, with about 33,000 tons of the increase from same-facility organic growth and the balance from the Century Metals acquisition. Flat-roll segment sales rose to about $221.8 million and tubular segment sales to about $18.2 million.
Earnings from operations increased to roughly $21.0 million from $7.0 million, despite a $2.8 million loss on economic hedges. Operating cash flow was $7.3 million. Total assets were $373.4 million and stockholders’ equity was $164.2 million as of June 30, 2026. The company expects second-quarter sales volumes to be comparable with potential margin improvement from higher average selling prices.
Positive
- Net sales up 78% YoY to approximately $240.0 million
- Net earnings rose to about $12.8 million from $5.0 million YoY
- Diluted EPS increased to $1.79 from $0.71 YoY
- EBITDA more than doubled to roughly $19.3 million from $8.2 million
- Record sales volume ~206,000 tons, up 28% year-over-year
- Flat-roll operating earnings about $24.7 million vs. $8.8 million prior-year quarter
Negative
- Loss on economic hedges of approximately $2.8 million vs. $0.3 million gain YoY
- Current liabilities increased to about $100.3 million from $76.1 million since March 31, 2026
- Operating cash flow $7.3 million, below net earnings of approximately $12.8 million
Market reaction after 1Q27 earnings report: FRD +7.08%
Following this news, FRD has gained 7.08%, reflecting a notable positive market reaction. Our momentum scanner has triggered 3 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $40.39. Trading volume is above average at 1.7x the average, suggesting increased trading activity.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 11 | 4Q26 earnings | Positive | +31.6% | Quarterly earnings and fiscal-year results showed higher sales, earnings, volume, and EBITDA. |
| Feb 09 | 3Q26 earnings | Positive | +7.9% | Return to profitability accompanied higher sales, volume, and improved capacity utilization. |
| Nov 10 | 2Q26 earnings | Positive | -5.8% | Profitability returned and sales volume reached a company record after the Century acquisition. |
| Aug 07 | 1Q25 earnings | Positive | +4.0% | Quarterly earnings, sales, tons sold, and operating cash flow increased year over year. |
| Jun 12 | 4Q25/FY25 earnings | Negative | -1.8% | Annual earnings declined despite stronger fourth-quarter volume and improved steel-price-driven margins. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings events were aligned with the subsequent price reaction in four of five cases, including two positive reactions above 7%.
Key Terms
ebitda financial
non-gaap financial
toll processing technical
economic hedges financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
June 30, 2026 Quarter Highlights:
- Net earnings of
$12.8 million ; EBITDA of$19.3 million - Sales of
$240.0 million , up78% year-over-year - Record quarter sales volume, up
9% sequentially and28% year-over-year - Operating cash flow of
$7.3 million for the quarter
LONGVIEW, Texas, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NASDAQ/GS: FRD) announced today its results of operations for the quarter ended June 30, 2026.
"We are pleased to begin fiscal 2027 with another quarter of record sales volume and significantly improved financial performance," said Michael J. Taylor, President and Chief Executive Officer. "Our first quarter results reflect the ongoing strength of our commercial strategy, disciplined execution across our operations, and the benefits of our expanded operating platform. Net earnings increased to
Taylor continued, "We have built a more diversified and capable business through disciplined investment and operational execution. Century Metals has integrated exceptionally well into our platform and continues to contribute meaningfully to both growth and profitability while expanding our geographic reach and customer offering. Together with the strong performance of our legacy operations, this demonstrates the strength of our operating model and the value of our long-term growth strategy. Combined with our strong balance sheet, broad processing capabilities, and disciplined commercial approach, we believe Friedman is well positioned to continue growing and delivering value for our customers and shareholders."
FINANCIAL RESULTS
Sales volume reached approximately 206,000 tons during the quarter ended June 30, 2026 quarter (the “2026 quarter”), an increase of approximately 45,500 tons, or
The table below provides our unaudited statements of operations for the quarters ended June 30, 2026 and 2025:
| SUMMARY OF OPERATIONS (unaudited) | |||||||
| (In thousands, except for per share data) | |||||||
| Three Months Ended June 30, | |||||||
| 2026 | 2025 | ||||||
| Net Sales | $ | 239,971 | $ | 134,777 | |||
| Costs and expenses: | |||||||
| Costs of materials sold (excludes items shown separately below) | 184,219 | 105,704 | |||||
| Processing and warehousing expense | 13,427 | 9,328 | |||||
| Delivery expense | 9,385 | 6,400 | |||||
| Selling, general and administrative expense | 10,837 | 5,455 | |||||
| Depreciation and amortization | 1,069 | 847 | |||||
| Earnings from operations | 21,034 | 7,043 | |||||
| Gain (loss) on economic hedges of risk | (2,756 | ) | 276 | ||||
| Interest expense | (1,224 | ) | (678 | ) | |||
| Other income (expense) | (77 | ) | 4 | ||||
| Earnings before income taxes | 16,977 | 6,645 | |||||
| Income tax expense | 4,193 | 1,617 | |||||
| Net earnings | $ | 12,784 | $ | 5,028 | |||
| Net earnings per share: | |||||||
| Basic | $ | 1.79 | $ | 0.71 | |||
| Diluted | $ | 1.79 | $ | 0.71 | |||
The table below provides summarized unaudited balance sheets as of June 30, 2026 and March 31, 2026:
| SUMMARIZED BALANCE SHEETS (unaudited) | |||
| (In thousands) | |||
| June 30, 2026 | March 31, 2026 | ||
| ASSETS: | |||
| Current Assets | 291,106 | 257,039 | |
| Noncurrent Assets | 82,332 | 79,771 | |
| Total Assets | 373,438 | 336,810 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | |||
| Current Liabilities | 100,319 | 76,149 | |
| Noncurrent Liabilities | 108,968 | 109,167 | |
| Total Liabilities | 209,287 | 185,316 | |
| Total Stockholders' Equity | 164,151 | 151,494 | |
| Total Liabilities and Stockholders' Equity | 373,438 | 336,810 | |
FLAT-ROLL SEGMENT OPERATIONS
Flat-roll segment sales for the 2026 quarter totaled approximately
Sales volume for the 2026 quarter consisted of approximately 175,000 tons from inventory and another 17,500 tons of toll processing, compared to approximately 132,500 tons from inventory and 19,000 tons of toll processing in the 2025 quarter. The increase in sales volume was driven by stronger customer demand, successful commercial initiatives to improve capacity utilization and the acquisition of Century.
The average selling price for inventory tons sold during the 2026 quarter was approximately
TUBULAR SEGMENT OPERATIONS
Tubular segment sales for the 2026 quarter totaled approximately
Tons sold during the 2026 quarter totaled approximately 13,500 tons, compared to approximately 9,000 tons during the 2025 quarter. The average selling price was approximately
OUTLOOK
The Company expects second quarter sales volumes to be comparable to first quarter volumes and anticipates sequential improvement in sales margins driven by increases in average selling prices during the second quarter.
"We enter the second quarter with strong operating momentum and expect sales volumes to remain comparable to our record first quarter levels, while higher average selling prices are anticipated to drive sequential margin improvement" Taylor said. " Our diversified operating platform, disciplined commercial approach, and strong balance sheet position us well to capitalize on growth opportunities and continue executing our long-term strategy while delivering value for our shareholders."
ABOUT FRIEDMAN INDUSTRIES
Friedman Industries, Incorporated (“the Company”), headquartered in Longview, Texas, is a diversified metals processing and pipe manufacturing company operating through two segments: flat-roll products and tubular products.
The flat-roll products segment includes processing facilities in Hickman, Arkansas; Decatur, Alabama; Miami, Florida; East Chicago, Indiana; Granite City, Illinois; and Sinton, Texas, as well as a distribution facility in Orlando, Florida. This segment processes carbon steel, stainless steel, and aluminum flat-rolled products. The Hickman, East Chicago, and Granite City facilities operate temper mills and corrective leveling cut-to-length lines; the Sinton and Decatur facilities operate stretcher leveler cut-to-length lines; and the Miami facility operates both a corrective leveling cut-to-length line and a slitting line. Additionally, the Granite City facility operates a fiber laser to further process sheet and plate into customer parts.
The tubular products segment operates in Lone Star, Texas, where the Company manufactures electric resistance welded (ERW) pipe and distributes pipe through its Texas Tubular Products division.
For more information, visit www.friedmanindustries.com.
NON-GAAP FINANCIAL MEASURES
The Company uses the non-GAAP (Generally Accepted Accounting Principles) financial measure of EBITDA in this news release. We define EBITDA as net earnings plus the following items: interest expense; provision for income tax; depreciation; and amortization. The Company presents EBITDA because it considers the measure as an important supplemental financial measure which provides additional insight for investors evaluating the Company’s financial and operational performance. The table below provides a reconciliation of net earnings to EBITDA for the periods discussed in this news release:
| Reconciliation of EBITDA | |||
| (In thousands) | |||
| Three months ended June 30, | |||
| 2026 | 2025 | ||
| Net earnings | 12,784 | 5,028 | |
| Interest expense | 1,224 | 678 | |
| Provision for income taxes | 4,193 | 1,617 | |
| Depreciation and amortization | 1,069 | 847 | |
| EBITDA | 19,270 | 8,170 | |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, and such statements involve risk and uncertainty. Forward-looking statements include those preceded by, followed by or including the words “will,” “expect,” “intended,” “anticipated,” “believe,” “project,” “forecast,” “propose,” “plan,” “estimate,” “enable,” and similar expressions, including, for example, statements about our business strategy, our industry, our future profitability, growth in the industry sectors we serve, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions, future production capacity and product quality. These forward-looking statements may include, but are not limited to, everything under the header “Outlook” above, including sales volumes, margins, hedging results, and potential price increases, expectations as to financial results during the Company’s upcoming fiscal quarters, future changes in the Company’s financial condition or results of operations, future production capacity, product quality and proposed expansion plans. Forward-looking statements may be made by management orally or in writing including, but not limited to, this news release.
Forward-looking statements are not guarantees of future performance. These statements are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Although forward-looking statements reflect our current beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements.
Actual results and trends in the future may differ materially depending on a variety of factors including, but not limited to, changes in the demand for and prices of the Company’s products, changes in government policy regarding steel, changes in the demand for steel and steel products in general and the Company’s success in executing its internal operating plans, changes in and availability of raw materials, our ability to satisfy our take or pay obligations under certain supply agreements, unplanned shutdowns of our production facilities due to equipment failures or other issues, increased competition from alternative materials and risks concerning innovation, new technologies, products and increasing customer requirements. Accordingly, undue reliance should not be placed on our forward-looking statements. Such risks and uncertainty are also addressed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including the Company’s Annual Report on Form 10-K and its other Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except to the extent law requires.
For further information, please refer to the Company’s Form 10-Q as filed with the SEC on August 6, 2026 or contact Alex LaRue, Chief Financial Officer – Secretary and Treasurer, at (903)758-3431.
