Friedman Industries, Incorporated Announces Fourth Quarter and Fiscal Year 2026 Results
Rhea-AI Summary
Friedman Industries (NASDAQ: FRD) reported strong results for the quarter and fiscal year ended March 31, 2026. Quarterly net earnings were $9.2 million on sales of $191.8 million, with record quarterly sales volume and a 14% year-over-year volume increase.
For fiscal 2026, net earnings reached $19.5 million and sales were $646.9 million, up 46% year over year, with a 22% increase in sales volume. EBITDA was $34.3 million versus $13.9 million in 2025.
Positive
- Fiscal 2026 net sales up 46% to $646.9 million
- Fiscal 2026 net earnings more than tripled to $19.5 million
- Fiscal 2026 EBITDA rose to $34.3 million from $13.9 million
- Record annual sales volume up 22% to 706,000 tons
- Quarterly net earnings grew to $9.2 million from $5.3 million
- Century Metals acquisition contributed to volume and profitability growth
Negative
- Total liabilities increased to $185.3 million from $94.4 million
- Interest expense rose to $4.1 million from $3.0 million
- Selling, general and administrative expenses climbed to $28.6 million from $16.2 million
- Processing and warehousing expense increased to $41.7 million from $33.5 million
- Delivery expense rose to $28.4 million from $23.2 million
News Market Reaction – FRD
In the Jun 12 session, FRD gained 31.61%, reflecting a significant positive market reaction. Argus tracked a peak move of +21.1% during that session. Our momentum scanner triggered 27 alerts that day, indicating elevated trading interest and price volatility. Trading volume was very high at 3.3x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 09 | Quarterly earnings | Positive | +7.9% | Return to profitability with strong sales and hedge gains. |
| Nov 10 | Quarterly earnings | Positive | -5.8% | Shift from loss to profit and Century acquisition completion. |
| Aug 07 | Quarterly earnings | Positive | +4.0% | Strong net earnings and higher tons sold with debt reduction. |
| Jun 12 | Annual and Q4 results | Neutral | -1.8% | Q4 rebound and higher prices but FY earnings down vs prior year. |
| Feb 07 | Quarterly earnings | Negative | -0.9% | Quarterly net loss amid pricing pressure and lower volume. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases often led to positive price reactions when results were clearly strong, though there has been at least one notable selloff on good earnings.
Over the past year, FRD’s earnings reports showed a shift from losses to profitability, with quarters like Q1 FY2025 and Q3 FY2026 delivering solid net earnings and strong sales growth. Some earnings, such as Q2 FY2026, saw negative price reactions despite improved results. The current FY2026 report, highlighting record sales volume and net earnings of $19.5M on $646.9M sales, extends this profitability trend and builds on momentum from prior quarters and the Century Metals acquisition.
Key Terms
ebitda financial
toll processing technical
mark-to-market financial
hedging activities financial
futures financial
options financial
swaps financial
hot-rolled coil technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
March 31, 2026 Quarter Highlights:
- Net earnings of
$9.2 million ; EBITDA of$15.2 million - Sales of
$191.8 million - Record quarterly sales volume
6% increase in sales volume over the preceding third quarter14% increase in sales volume over the prior year fourth quarter
Fiscal Year March 31, 2026 Highlights:
- Net earnings of
$19.5 million ; EBITDA of$34.3 million - Sales of
$646.9 million –46% increase over the prior fiscal year - Record annual sales volume
22% increase in sales volume over the prior fiscal year
LONGVIEW, Texas, June 11, 2026 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NASDAQ/GS: FRD) announced today its results of operations for the quarter and fiscal year ended March 31, 2026.
“We delivered an outstanding fourth quarter and a strong finish to fiscal 2026 as our strategic investments and operating initiatives translated into meaningful financial results,” said Michael J. Taylor, President and Chief Executive Officer. “Fourth quarter net earnings increased to
Taylor continued, “Our fiscal 2026 performance demonstrates the effectiveness of our long-term growth strategy. Record sales volumes, increased capacity utilization, and strong execution across our facilities drove improved operating results throughout the year. In addition, the Century Metals acquisition has proven to be an excellent strategic fit by expanding our processing capabilities, enhancing our geographic reach, and contributing meaningfully to both volume growth and profitability. Combined with our risk management capabilities and strong balance sheet, we believe we are well positioned to continue building value for our shareholders.”
FINANCIAL RESULTS
For the quarter ended March 31, 2026 (the “2026 quarter”), the Company recorded net earnings of approximately
For the year ended March 31, 2026 (“fiscal 2026”), the Company recorded net earnings of approximately
The table below provides our statements of operations for the quarters and fiscal years ended March 31, 2026 and 2025:
| SUMMARY OF OPERATIONS | ||||||||||||||||
| (In thousands, except for per share data) | ||||||||||||||||
| Three Months Ended March 31, | Fiscal Year Ended March 31, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net Sales | $ | 191,779 | $ | 129,216 | $ | 646,913 | $ | 444,600 | ||||||||
| Cost and expenses: | ||||||||||||||||
| Cost of materials sold (excludes items shown separately below) | (149,438 | ) | (102,483 | ) | (518,696 | ) | (365,648 | ) | ||||||||
| Processing and warehousing expense | (12,131 | ) | (9,447 | ) | (41,722 | ) | (33,477 | ) | ||||||||
| Delivery expense | (7,617 | ) | (6,855 | ) | (28,398 | ) | (23,228 | ) | ||||||||
| Selling, general and administrative expenses | (9,730 | ) | (3,838 | ) | (28,622 | ) | (16,171 | ) | ||||||||
| Depreciation and amortization | (1,033 | ) | (846 | ) | (3,824 | ) | (3,291 | ) | ||||||||
| (179,949 | ) | (123,469 | ) | (621,262 | ) | (441,815 | ) | |||||||||
| Gain on disposal of property, plant & equipment | - | 105 | - | 258 | ||||||||||||
| Earnings from operations | 11,830 | 5,852 | 25,651 | 3,043 | ||||||||||||
| Gain on economic hedges of risk | 904 | 1,765 | 3,412 | 7,598 | ||||||||||||
| Interest expense | (1,394 | ) | (771 | ) | (4,104 | ) | (2,953 | ) | ||||||||
| Fair value adjustment of contingent consideration | 1,420 | - | 1,420 | - | ||||||||||||
| Other income (expense) | (14 | ) | 2 | (7 | ) | 5 | ||||||||||
| Earnings before income taxes | 12,746 | 6,848 | 26,372 | 7,693 | ||||||||||||
| Income tax expense | (3,524 | ) | (1,503 | ) | (6,839 | ) | (1,608 | ) | ||||||||
| Net earnings | $ | 9,222 | $ | 5,345 | $ | 19,533 | $ | 6,085 | ||||||||
| Net earnings per share: | ||||||||||||||||
| Basic | $ | 1.30 | $ | 0.76 | $ | 2.76 | $ | 0.87 | ||||||||
| Diluted | $ | 1.30 | $ | 0.76 | $ | 2.76 | $ | 0.87 | ||||||||
The table below provides summarized balance sheets as of March 31, 2026 and 2025:
| SUMMARIZED BALANCE SHEETS | |||
| (In thousands) | |||
| March 31, 2026 | March 31, 2025 | ||
| ASSETS: | |||
| Current Assets | 257,039 | 166,467 | |
| Noncurrent Assets | 79,771 | 60,355 | |
| Total Assets | 336,810 | 226,822 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | |||
| Current Liabilities | 76,149 | 38,324 | |
| Noncurrent Liabilities | 109,167 | 56,073 | |
| Total Liabilities | 185,316 | 94,397 | |
| Total Stockholders' Equity | 151,494 | 132,425 | |
| Total Liabilities and Stockholders' Equity | 336,810 | 226,822 | |
FLAT-ROLL SEGMENT OPERATIONS
Flat-roll segment sales for the 2026 quarter totaled approximately
Sales volume for the 2026 quarter consisted of approximately 157,500 tons from inventory and another 19,000 tons of toll processing, compared to approximately 139,000 tons from inventory and 16,500 tons of toll processing in the 2025 quarter. The increase in sales volume was driven by stronger demand among some customers, successful commercial efforts to increase capacity utilization and the acquisition of Century.
The average selling price increased from approximately
TUBULAR SEGMENT OPERATIONS
Tubular segment sales for the 2026 quarter totaled approximately
Tons sold increased from approximately 11,000 tons for the 2025 quarter to approximately 12,500 tons for the 2026 quarter. The average per ton selling price increased from approximately
HEDGING ACTIVITIES
The Company utilizes hot-rolled coil (“HRC”) futures, options and swaps to manage price risk on unsold inventory and longer-term fixed price sales agreements. Hedging activities are typically accounted for using mark-to-market (“MTM”) accounting treatment and hedging decisions are intended to protect the value of our inventory and produce more consistent financial results over price cycles. With MTM accounting treatment it is possible that hedging related gains or losses might be recognized in a different period than the corresponding improvement or contraction in our physical margins. For the 2026 quarter, we recognized a gain on hedging activities of approximately
OUTLOOK
Management expects first quarter fiscal 2027 sales volumes to be comparable to fourth quarter fiscal 2026 volumes. Management anticipates sequential improvement in sales margins driven by increases in average selling prices during the first quarter.
“Friedman enters fiscal 2027 with strong operating momentum following a year of record sales volumes and significantly improved earnings,” Taylor added. “We expect first quarter sales volumes to be similar to fourth quarter levels and anticipate sequential margin improvement driven by higher average selling prices. The successful execution of our growth strategy, including the integration of Century, has strengthened our operating platform and expanded our ability to serve customers across our markets.”
Taylor concluded, “With a diversified footprint, a strong balance sheet, disciplined commercial approach, and proven risk management capabilities, we believe we are well positioned to capitalize on market opportunities and continue delivering profitable growth and long-term 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 March 31, | Fiscal year ended March 31, | ||||||
| 2026 | 2025 | 2026 | 2025 | ||||
| Net earnings | 9,222 | 5,345 | 19,533 | 6,085 | |||
| Interest expense | 1,394 | 771 | 4,104 | 2,953 | |||
| Provision for income taxes | 3,524 | 1,503 | 6,839 | 1,608 | |||
| Depreciation and amortization | 1,033 | 846 | 3,824 | 3,291 | |||
| EBITDA | 15,173 | 8,465 | 34,300 | 13,937 | |||
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-K as filed with the SEC on June 11, 2026 or contact Alex LaRue, Chief Financial Officer – Secretary and Treasurer, at (903)758-3431.
