Friedman Industries, Incorporated Announces Second Quarter Results

Same-facility operations contributed approximately 31,000 tons of year-over-year quarterly volume growth, with Century Metals adding the remainder.

Rhea-AI Summary

Friedman Industries (NASDAQ/GS: FRD) reported record second-quarter net earnings of $15.614 million for the period ended September 30, 2026. Diluted earnings per share rose to $2.19 from $0.32 a year earlier, while sales increased 88% to $286.806 million. Quarterly volume reached approximately 219,500 tons, up 23% year over year and 7% sequentially. Both operating segments increased sales and operating earnings.

Economic hedging losses totaled $14.645 million, including approximately $9.8 million in unrealized charges associated with metal not yet sold. Six-month net earnings reached $28.398 million on sales of $526.777 million, versus $7.268 million and $287.160 million a year earlier. Total liabilities rose to $245.457 million from $185.316 million at March 31, 2026. Friedman expects normal third-quarter volume seasonality and sequential improvement in sales margins from higher average selling prices.

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0 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointSecond-quarter net earnings increased to $15.614 million, or $2.19 diluted EPS, from $2.240 million, or $0.32.
• Moderate pointSecond-quarter sales rose 88% year over year to $286.806 million.
• Moderate pointQuarterly sales volume reached approximately 219,500 tons, up 23% year over year and 7% sequentially.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Friedman expects sequential third-quarter sales-margin improvement driven by higher average selling prices.
• Minor pointSame-facility operations contributed approximately 31,000 tons of the approximately 40,500-ton year-over-year quarterly volume increase.

17 minor points

• Minor pointCentury Metals contributed a full quarter of operations, versus one month in the prior-year quarter.
• Minor pointSecond-quarter operating earnings increased to $36.574 million from $2.879 million a year earlier.
• Minor pointSecond-quarter EBITDA, a non-GAAP earnings measure, increased to $22.996 million from $4.668 million a year earlier.
• Minor pointSix-month net earnings increased to $28.398 million, or $3.96 diluted EPS, from $7.268 million, or $1.03.
• Minor pointSix-month sales increased 83% year over year to $526.777 million.
• Minor pointSix-month sales volume increased 25% year over year to a record level.
• Minor pointSix-month operating earnings increased to $57.608 million from $9.922 million a year earlier.
• Minor pointSix-month EBITDA increased to $42.266 million from $12.838 million a year earlier.
• Minor pointFlat-roll quarterly sales increased to approximately $266.6 million from approximately $143.3 million a year earlier.
• Minor pointFlat-roll inventory volume increased to approximately 185,500 tons from approximately 147,000 tons a year earlier.
• Minor pointFlat-roll inventory selling prices increased to approximately $1,430 per ton from approximately $963 a year earlier.
• Minor pointFlat-roll quarterly operating earnings increased to approximately $40.7 million from approximately $5.7 million a year earlier.
• Minor pointTubular quarterly sales increased to approximately $20.2 million from approximately $9.0 million a year earlier.
• Minor pointTubular quarterly volume increased to approximately 14,000 tons from approximately 7,500 tons a year earlier.
• Minor pointTubular selling prices increased to approximately $1,454 per ton from approximately $1,185 a year earlier.
• Minor pointTubular quarterly operating earnings increased to approximately $2.3 million from approximately $0.9 million a year earlier.
• Minor pointStockholders’ equity increased to $180.082 million at September 30, 2026, from $151.494 million at March 31, 2026.

Negative

• Moderate pointSecond-quarter economic hedges generated a $14.645 million loss, versus a $0.851 million gain a year earlier.
• Moderate pointTotal liabilities increased to $245.457 million at September 30, 2026, from $185.316 million at March 31, 2026.
• Minor pointSix-month economic hedges generated a $17.401 million loss, versus a $1.127 million gain a year earlier.
• Minor pointQuarterly materials costs increased to $211.823 million from $126.082 million; six-month costs rose to $396.042 million from $231.786 million.
• Minor pointQuarterly processing and warehousing expense rose to $14.231 million from $9.064 million; six-month expense reached $27.658 million versus $18.392 million.

7 minor points

• Minor pointQuarterly delivery expense rose to $11.581 million from $7.134 million; six-month expense reached $20.966 million versus $13.534 million.
• Minor pointQuarterly selling, general and administrative expense rose to $11.540 million from $6.287 million; six-month expense reached $22.377 million versus $11.742 million.
• Minor pointQuarterly depreciation and amortization rose to $1.057 million from $0.937 million; six-month expense reached $2.126 million versus $1.784 million.
• Minor pointQuarterly interest expense rose to $1.302 million from $0.754 million; six-month expense reached $2.526 million versus $1.432 million.
• Minor pointQuarterly income tax expense rose to $5.023 million from $0.737 million; six-month expense reached $9.216 million versus $2.354 million.
• Minor pointFlat-roll quarterly toll-processing volume fell to approximately 20,000 tons from approximately 24,500 tons a year earlier.
• Minor pointSix-month other income shifted to a $0.067 million expense from $0.005 million income a year earlier.

News Explained

Friedman reported a 23% year-over-year second-quarter volume increase, including about 31,000 tons of growth at existing operations; the rest came from Century Metals, acquired in August 2025, so the headline increase reflects both same-facility expansion and acquired volume.

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Key Figures

Net earnings: $15.6 million Net sales: $286.8 million; up 88% year over year EBITDA: $23.0 million +4 more

Net earnings

$15.6 million

Quarter ended September 30, 2026

Net sales

$286.8 million; up 88% year over year

Quarter ended September 30, 2026

EBITDA

$23.0 million

Quarter ended September 30, 2026

Diluted earnings per share

$2.19

Quarter ended September 30, 2026

Sales volume

219,500 tons; up 23% year over year

Quarter ended September 30, 2026

Economic-hedge charge

$14.6 million

Quarter ended September 30, 2026

Unrealized hedge charge

$9.8 million

Part of the quarter's economic-hedge charge; associated with open positions

Previous Earnings Reports

2 past events · Latest: Aug 06

Same Type 2 events

1. Aug 06

   Quarterly earnings

   24h Move

   +16.4%

   Reported Q1 net earnings of $12.8M and EBITDA of $19.3M amid record quarterly volume.

2. Nov 10

   Quarterly earnings

   24h Move

   -5.8%

   Reported $2.2M net earnings on $152.4M sales and completed the Century acquisition.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, non-gaap, erw, octg

4 terms

ebitda financial

"The Company uses the non-GAAP financial measure of EBITDA in this news release."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

non-gaap financial

"The Company uses the non-GAAP financial measure of EBITDA in this news release."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

erw technical

"manufactures electric resistance welded (ERW) pipe"

ERW (electric resistance welded) describes a method and the pipes made by forming a steel strip into a cylinder and joining the edges by applying pressure and electrical current to create a weld. ERW pipe is commonly used for structural and medium-pressure applications because the weld is continuous along the length; it differs from seamless pipe (made without a longitudinal weld) and from submerged-arc-welded (SAW) pipe (which uses a different welding process and is often used for larger-diameter or higher-pressure uses).

octg technical

"manufacture line pipe and oil country tubular goods (OCTG)"

OCTG stands for oil country tubular goods, the steel pipes and related fittings used to line and support oil and gas wells from the surface down into the earth. Think of them as the backbone and plumbing of a well: their quality and quantity affect how quickly and cheaply energy producers can drill and produce, so shifts in OCTG demand or prices signal changes in drilling activity and can materially impact the revenues and prospects of suppliers and oilfield service companies.

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September 30, 2026 Quarter Highlights:

• Record net earnings of $15.6 million; EBITDA of $23.0 million
• Record sales of $286.8 million, up 88% year-over-year
• Record quarterly sales volume, up 7% sequentially and 23% year-over-year
  

Six Months Ended September 30, 2026 Highlights:

• Record net earnings of $28.4 million; EBITDA of $42.3 million
• Record sales of $526.8 million, up 83% year-over-year
• Record sales volume, up 25% year-over-year
  

LONGVIEW, Texas, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NASDAQ/GS: FRD) announced today its results of operations for the quarter ended September 30, 2026.

“The second quarter was the strongest in Friedman’s history, with records across: sales volume, revenue and net earnings,” said Michael J. Taylor, President and Chief Executive Officer. “Net earnings increased to $15.6 million on sales of $286.8 million, reflecting strong execution and continued growth across our operations. Sales volume at our legacy flat-roll facilities increased 15% over the prior-year quarter, an achievement that is particularly significant in a constrained supply environment and reflects growth that has outpaced our industry peers. We are also particularly encouraged by the progress in our tubular segment, where ongoing process and capital improvements have strengthened production capabilities and supported expanded sales, resulting in an 82% increase in sales volume compared to the prior-year quarter. The contribution from Century Metals provided an additional benefit to our results, with a full quarter of operations compared to one month after acquisition closing in the prior-year quarter.”

Taylor continued, “Our team successfully maintained the inventory needed to meet customer demand in a very constrained supply environment, allowing us to capitalize on higher metal prices through significantly stronger physical margins. Our approach to managing metal price risk supports our ability to maintain the inventory our customers need through changing market conditions. The same increase in metal prices that contributed to stronger physical margins also resulted in a $14.6 million charge related to hedging activities during the quarter. Of this amount, $9.8 million is unrealized and relates to open positions associated with metal we have not yet sold. This unrealized charge reflects the substantial increase in metal prices and the corresponding increase in the market value of inventory we expect to sell in future periods, providing an opportunity to realize the benefit of those higher values through future physical sales. Our disciplined approach to inventory and risk management, combined with continued investments in our operations, positions us to serve our customers, pursue growth opportunities and navigate fluctuations in our markets.”

FINANCIAL RESULTS

Sales volume reached approximately 219,500 tons during the quarter ended September 30, 2026 quarter (the “2026 quarter”), an increase of approximately 40,500 tons, or 23%, compared to the quarter ended September 30, 2025 (the “2025 quarter”). Approximately 31,000 tons of the increase was attributable to same-facility volume growth at the Company's existing operations, while the remaining increase resulted from Century Metals, which was acquired in August 2025. The higher sales volume, together with improved average selling prices, contributed to net earnings of approximately $15.6 million ($2.19 diluted earnings per share) on net sales of approximately $286.8 million, compared to net earnings of approximately $2.2 million ($0.32 diluted earnings per share) on net sales of approximately $152.4 million during the 2025 quarter. EBITDA increased to approximately $23.0 million for the 2026 quarter from approximately $4.7 million for the 2025 quarter.

The table below provides our unaudited statements of operations for the three- and six-month periods ended September 30, 2026 and 2025:

SUMMARY OF OPERATIONS (unaudited)
(In thousands, except for per share data)
	Three Months Ended September 30,										Six Months Ended September 30,
			2026				2025				2026				2025
Net Sales		$	286,806			$	152,383			$	526,777			$	287,160
Costs and expenses:
Cost of materials sold (excludes items shown separately below)			211,823				126,082				396,042				231,786
Processing and warehousing expense			14,231				9,064				27,658				18,392
Delivery expense			11,581				7,134				20,966				13,534
Selling, general and administrative expense			11,540				6,287				22,377				11,742
Depreciation and amortization			1,057				937				2,126				1,784
Earnings from operations			36,574				2,879				57,608				9,922
Gain (loss) on economic hedges of risk			(14,645	)			851				(17,401	)			1,127
Interest expense			(1,302	)			(754	)			(2,526	)			(1,432	)
Other income (expense)			10				1				(67	)			5
Earnings before income taxes			20,637				2,977				37,614				9,622
Income tax expense			5,023				737				9,216				2,354
Net earnings		$	15,614			$	2,240			$	28,398			$	7,268
Net earnings per share:
Basic		$	2.19			$	0.32			$	3.96			$	1.03
Diluted		$	2.19			$	0.32			$	3.96			$	1.03

The table below provides summarized unaudited balance sheets as of September 30, 2026 and March 31, 2026:

SUMMARIZED BALANCE SHEETS (unaudited)
(In thousands)
	September 30, 2026			March 31, 2026
ASSETS:
Current Assets	$	340,882		$	257,039
Noncurrent Assets		84,657			79,771
Total Assets	$	425,539		$	336,810
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities	$	127,382		$	76,149
Noncurrent Liabilities		118,075			109,167
Total Liabilities		245,457			185,316
Total Stockholders' Equity		180,082			151,494
Total Liabilities and Stockholders' Equity	$	425,539		$	336,810

FLAT-ROLL SEGMENT OPERATIONS

Flat-roll segment sales for the 2026 quarter totaled approximately $266.6 million, compared to approximately $143.3 million for the 2025 quarter.

Sales volume for the 2026 quarter consisted of approximately 185,500 tons from inventory and another 20,000 tons of toll processing, compared to approximately 147,000 tons from inventory and 24,500 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 $1,430 per ton, compared to approximately $963 per ton during the 2025 quarter. The combination of higher sales volumes, improved average selling prices, and expanded gross margins drove operating earnings to approximately $40.7 million for the 2026 quarter, compared to approximately $5.7 million for the 2025 quarter.

TUBULAR SEGMENT OPERATIONS

Tubular segment sales for the 2026 quarter totaled approximately $20.2 million, compared to approximately $9.0 million for the 2025 quarter.

Tons sold during the 2026 quarter totaled approximately 14,000 tons, compared to approximately 7,500 tons during the 2025 quarter. The average selling price was approximately $1,454 per ton during the 2026 quarter, compared to approximately $1,185 per ton during the 2025 quarter. Increased sales volume and higher average selling prices contributed to improved operating earnings during the quarter. The tubular segment recorded earnings from operations of approximately $2.3 million for the 2026 quarter, compared to approximately $0.9 million for the 2025 quarter.

OUTLOOK

The Company expects third quarter sales volume consistent with seasonal trends and anticipates sequential improvement in sales margins driven by increases in average selling prices during the third quarter.

“We enter the third quarter from a position of strength,” Taylor said. “Following record second-quarter sales volume, we anticipate normal third-quarter seasonality. At the same time, we expect higher selling prices to support continued improvement in physical margins. Our inventory remains well positioned to meet customer demand, supported by our disciplined approach to managing metal price risk. With an expanded operating platform, continued operational improvements, commercial discipline and a strong balance sheet, Friedman is well positioned to build on our momentum and deliver long-term value for our customers, employees and 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. The Florida locations operate through the Company’s Century Metals & Supplies subsidiary, while all other locations operate under the Friedman Industries name. The segment processes carbon steel, stainless steel, and aluminum flat-rolled products using temper mills, stretcher and corrective leveling cut-to-length lines, slitting equipment, and fiber laser cutting capabilities.

The tubular products segment operates in Lone Star, Texas, where the Company manufactures electric resistance welded (ERW) pipe and distributes pipe through its Friedman Tubular division. The segment’s pipe mills are licensed by the American Petroleum Institute (API) to manufacture line pipe and oil country tubular goods (OCTG) and also produce pipe to other recognized ASTM specifications.

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 September 30,				Six months ended September 30,
	2026		2025		2026		2025
Net earnings	15,614		2,240		28,398		7,268
Interest expense	1,302		754		2,526		1,432
Provision for income taxes	5,023		737		9,216		2,354
Depreciation and amortization	1,057		937		2,126		1,784
EBITDA	22,996		4,668		42,266		12,838

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 November 5, 2026 or contact Alex LaRue, Chief Financial Officer – Secretary and Treasurer, at (903)758-3431.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Friedman Industries’ second-quarter 2026 earnings and sales?

Friedman reported net earnings of $15.614 million, or $2.19 per diluted share, on sales of $286.806 million for the quarter ended September 30, 2026. The prior-year quarter produced net earnings of $2.240 million, or $0.32 per diluted share, on sales of $152.383 million.

What does Friedman Industries expect for the third quarter?

Friedman expects third-quarter sales volume consistent with normal seasonal trends and sequential improvement in sales margins. The company anticipates that higher average selling prices will drive the margin improvement.

Why did Friedman Industries record unrealized hedging charges in the second quarter?

Friedman attributed the approximately $9.8 million unrealized hedging charge to higher metal prices affecting open positions associated with metal not yet sold, alongside a corresponding increase in inventory market value. The company expects future physical sales to provide an opportunity to realize those higher inventory values.