Friedman Industries, Incorporated Announces Fourth Quarter and Fiscal Year 2025 Results
- Record quarterly sales volume with 28% increase over Q3 and 5% YoY growth
- Successful hedging strategy yielding $7.6M in gains for FY2025
- Sinton, Texas facility reached full capacity with highest profit margins
- Strong financial position with $128.1M working capital at year-end
- 35% increase in steel prices during Q4 FY2025 improving margins
- Net earnings declined significantly from $17.3M in FY2024 to $6.1M in FY2025
- Sales decreased from $516.3M in FY2024 to $444.6M in FY2025
- Average selling prices declined in both segments (flat-roll: $993 to $836/ton, tubular: $1,216 to $1,044/ton)
- Expected lower sales volume in Q1 FY2026 due to equipment downtime
Insights
FRD reported strong Q4 recovery with record sales volume, but full fiscal 2025 showed significant YoY earnings decline amid steel price volatility.
Friedman's Q4 results demonstrate a notable recovery after three challenging quarters, with net earnings of
For the full fiscal year 2025, Friedman's net earnings dropped dramatically to
What stands out is Friedman's effective use of hedging strategies during volatile steel market conditions. The company recognized a
The balance sheet remains strong with
Management's outlook for Q1 fiscal 2026 suggests continued margin improvement despite slightly lower volumes due to equipment downtime. The
LONGVIEW, Texas, June 12, 2025 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NASDAQ/GS: FRD) announced today its results of operations for the quarter and fiscal year ended March 31, 2025.
March 31, 2025 Quarter Highlights:
- Net earnings of
$5.3 million - Sales of
$129.2 million - Highest sales volume in Company history
28% increase in sales volume over the preceding third quarter5% increase in sales volume over the prior year fourth quarter
Fiscal Year March 31, 2025 Highlights:
- Net earnings of
$6.1 million - Sales of
$444.6 million - Working capital balance at year-end of
$128.1 million
“We ended fiscal 2025 with improved margins and a record quarter for sales volume as we continue to execute on our growth strategy,” said Michael J. Taylor, President and Chief Executive Officer. “Our fourth quarter sales volume increased
Taylor continued, “We are pleased to report
For the quarter ended March 31, 2025 (the “2025 quarter”), the Company recorded net earnings of approximately
For the year ended March 31, 2025 (“fiscal 2025”), the Company recorded net earnings of approximately
The table below provides our statements of operations for the quarters and fiscal years ended March 31, 2025 and 2024:
| SUMMARY OF OPERATIONS | |||||||||||||||
| (In thousands, except for per share data) | |||||||||||||||
| Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net Sales | $ | 129,216 | $ | 132,232 | $ | 444,600 | $ | 516,251 | |||||||
| Cost and expenses: | |||||||||||||||
| Cost of materials sold (excludes items shown separately below) | (102,483 | ) | (103,238 | ) | (365,648 | ) | (412,395 | ) | |||||||
| Processing and warehousing expense | (9,447 | ) | (8,760 | ) | (33,477 | ) | (31,438 | ) | |||||||
| Delivery expense | (6,855 | ) | (6,356 | ) | (23,228 | ) | (23,791 | ) | |||||||
| Selling, general and administrative expenses | (3,838 | ) | (6,137 | ) | (16,171 | ) | (21,039 | ) | |||||||
| Depreciation and amortization | (846 | ) | (808 | ) | (3,291 | ) | (3,070 | ) | |||||||
| (123,469 | ) | (125,299 | ) | (441,815 | ) | (491,733 | ) | ||||||||
| Gain on disposal of property, plant & equipment | 105 | - | 258 | - | |||||||||||
| Earnings from operations | 5,852 | 6,933 | 3,043 | 24,518 | |||||||||||
| Gain on economic hedges of risk | 1,765 | 1,142 | 7,598 | 1,848 | |||||||||||
| Interest expense | (771 | ) | (937 | ) | (2,953 | ) | (3,072 | ) | |||||||
| Other income | 2 | 3 | 5 | 20 | |||||||||||
| Earnings before income taxes | 6,848 | 7,141 | 7,693 | 23,314 | |||||||||||
| Income tax expense | (1,503 | ) | (2,183 | ) | (1,608 | ) | (5,969 | ) | |||||||
| Net earnings | $ | 5,345 | $ | 4,958 | $ | 6,085 | $ | 17,345 | |||||||
| Net earnings per share: | |||||||||||||||
| Basic | $ | 0.76 | $ | 0.71 | $ | 0.87 | $ | 2.39 | |||||||
| Diluted | $ | 0.76 | $ | 0.71 | $ | 0.87 | $ | 2.39 | |||||||
The table below provides summarized balance sheets as of March 31, 2025 and 2024:
| SUMMARIZED BALANCE SHEETS | |||
| (In thousands) | |||
| March 31, 2025 | March 31, 2024 | ||
| ASSETS: | |||
| Current Assets | 166,467 | 170,064 | |
| Noncurrent Assets | 60,355 | 59,955 | |
| Total Assets | 226,822 | 230,019 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | |||
| Current Liabilities | 38,324 | 54,107 | |
| Noncurrent Liabilities | 56,073 | 48,437 | |
| Total Liabilities | 94,397 | 102,544 | |
| Total Stockholders' Equity | 132,425 | 127,475 | |
| Total Liabilities and Stockholders' Equity | 226,822 | 230,019 | |
FLAT-ROLL SEGMENT OPERATIONS
Flat-roll segment sales for the 2025 quarter totaled approximately
TUBULAR SEGMENT OPERATIONS
Tubular segment sales for the 2025 quarter totaled approximately
HEDGING ACTIVITIES
We utilize hot-rolled coil (“HRC”) futures to manage price risk on unsold inventory and longer-term fixed price sales agreements. We typically account for our hedging activities under mark-to-market (“MTM”) accounting treatment and all 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 fiscal year or fiscal quarter than the corresponding improvement or contraction in our physical margins. For the 2025 quarter, we recognized a gain on hedging activities of approximately
OUTLOOK
For the first quarter of fiscal 2026, the Company expects sales volume to be slightly lower than the sales volume for the fourth quarter of fiscal 2025 due primarily to equipment downtime encountered during the quarter. The Company expects improved margins for the first quarter of fiscal 2026 compared to the fourth quarter of fiscal 2025.
“Friedman remains in a strong financial position and ready to capitalize on both short-term and long-term opportunities,” Taylor said. “I see favorable long-term demand for the industry and for our products and believe we have a team uniquely qualified to recognize Friedman’s full growth potential.”
ABOUT FRIEDMAN INDUSTRIES
Friedman Industries, Incorporated (“Company”), headquartered in Longview, Texas, is a manufacturer and processor of steel products with operating plants in Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois; Sinton, Texas and Lone Star, Texas. The Company has two reportable segments: flat-roll products and tubular products. The flat-roll product segment consists of the operations in Hickman, Decatur, East Chicago, Granite City and Sinton where the Company processes hot-rolled steel coils. 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. The tubular product segment consists of the operations in Lone Star where the Company manufactures electric resistance welded pipe and distributes pipe through its Texas Tubular Products division.
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 12, 2025 or contact Alex LaRue, Chief Financial Officer – Secretary and Treasurer, at (903)758-3431.
FAQ
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