Friedman Industries, Incorporated Announces Third Quarter Results
Rhea-AI Summary
Friedman Industries (NASDAQ: FRD) reported third fiscal quarter results for the period ended December 31, 2025, showing a return to profitability with net earnings of $3.0 million ($0.43 diluted EPS) on $168.0 million in sales, a 79% year-over-year increase. Sales volume rose 36% year-over-year, helped by improved capacity utilization and the Century acquisition. Flat-roll sales were ~$153.0 million with average selling price rising to ~$1,016/ton. Tubular sales totaled ~$14.9 million with average selling price of ~$1,201/ton. The company recorded a ~$1.4 million gain on economic hedges and expects sequential margin improvement entering fiscal Q4 2026.
Positive
- Net earnings of $3.0 million in Q3 (turnaround from prior loss)
- Sales increased 79% year-over-year to $168.0 million
- Sales volume grew 36% year-over-year
- Flat-roll average selling price rose to ~$1,016 per ton
- Tubular average selling price rose to ~$1,201 per ton
- Balance sheet: total assets $311.9 million, equity $142.2 million
Negative
- Cost of materials sold totaled $137.5 million in the quarter
- Total liabilities increased to $169.6 million as of Dec 31, 2025
Market Reaction
Following this news, FRD has gained 4.05%, reflecting a moderate positive market reaction. The stock is currently trading at $20.55. This price movement has added approximately $5M to the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
FRD is up 0.3% while key peers like ZEUS (-2.59%), KBSX (-2.4%), ACNT (-0.81%) and LUD (-2.92%) are down, indicating a stock-specific reaction to earnings rather than a sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 10 | Quarterly earnings | Positive | +4.4% | Return to profit with higher sales and record volumes versus prior-year loss. |
| Aug 07 | Quarterly earnings | Positive | +4.0% | Strong Q1 profit, higher sales and volumes, solid cash flow and debt reduction. |
| Jun 12 | Annual & Q4 earnings | Negative | -1.8% | FY earnings down versus prior year despite strong Q4 volume and margin recovery. |
| Feb 07 | Quarterly earnings | Negative | -0.9% | Q3 FY2024 loss as pricing pressure and softer demand weighed on results. |
| Nov 12 | Quarterly earnings | Negative | -3.5% | Q2 FY2024 net loss following prior-year profit amid pricing pressure and soft demand. |
Earnings releases have generally led to price moves aligned with the news tone, with positive quarters tending to see positive next-day reactions and weaker or mixed results seeing modest declines.
Over the past year, Friedman’s earnings reports have highlighted swings between losses and profitability, with quarterly updates on volumes, pricing and hedging gains. Prior results showed a return to profit in Q1 and Q2 FY2026, aided by stronger volumes and Century Metals acquisition benefits. Earlier FY2024–FY2025 releases documented pressure from steel pricing and demand before margins improved. Today’s Q3 update continues this trajectory of higher sales and a shift from prior-year losses to net earnings of about $3.0M.
Historical Comparison
Recent earnings releases have moved FRD by an average of 0.43% the next day, with share reactions typically matching whether results show profit recovery or margin and demand pressure.
Earnings updates trace a path from FY2024 losses through FY2025 margin recovery to FY2026 quarters showing higher volumes, improved pricing, and contributions from the Century Metals acquisition.
Market Pulse Summary
This announcement highlights a swing to net earnings of about $3.0M on roughly $168.0M in sales, with stronger volumes, higher average selling prices, and hedging gains aiding margins. Segment data show both flat-roll and tubular operations profitable this quarter. Compared with prior earnings releases, the trend points to recovery from earlier losses and integration of the Century acquisition. Investors may watch future volumes, pricing, and hedge results for sustainability.
Key Terms
futures financial
options financial
swaps financial
mark-to-market financial
hedging activities financial
toll processing technical
operating results financial
AI-generated analysis. Not financial advice.
LONGVIEW, Texas, Feb. 09, 2026 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NASDAQ/GS: FRD) announced today its results of operations for the quarter ended December 31, 2025.
December 31, 2025 Quarter Highlights:
- Net earnings of
$3.0 million - Sales of
$168.0 million ; up79% year-over-year - Sales volume increased
36% year-over-year
“We delivered strong year-over-year growth in sales and volumes during the third fiscal quarter, driven by improved capacity utilization, disciplined commercial execution, and the contribution from our Century acquisition,” said Michael Taylor, President and Chief Executive Officer. “Average selling prices began to improve as the quarter progressed, contributing to margin improvement late in the period. In addition, our hedging activities continued to perform as anticipated by mitigating the impact of commodity price volatility on inventory values and operating results. With improving average selling prices and a strong balance sheet, we believe Friedman is well positioned to enhance margins and capitalize on both near-term opportunities and long-term industry demand,” Taylor concluded.
FINANCIAL RESULTS
For the quarter ended December 31, 2025 (the “2025 quarter”), the Company recorded net earnings of approximately
The table below provides our unaudited statements of operations for the three- and nine-month periods ended December 31, 2025 and 2024:
| SUMMARY OF OPERATIONS (unaudited) | ||||||||||||||||
| (In thousands, except for per share data) | ||||||||||||||||
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net sales | $ | 167,974 | $ | 94,074 | $ | 455,134 | $ | 315,384 | ||||||||
| Cost and expenses: | ||||||||||||||||
| Cost of materials sold (excludes items shown separately below) | 137,472 | 78,509 | 369,258 | 263,165 | ||||||||||||
| Processing and warehousing expense | 11,199 | 7,472 | 29,591 | 24,030 | ||||||||||||
| Delivery expense | 7,247 | 4,941 | 20,781 | 16,373 | ||||||||||||
| Selling, general and administrative expense | 7,150 | 3,887 | 18,892 | 12,333 | ||||||||||||
| Depreciation and amortization | 1,007 | 827 | 2,791 | 2,445 | ||||||||||||
| 164,075 | 95,636 | 441,313 | 318,346 | |||||||||||||
| Gain on disposal of property, plant and equipment | – | 375 | – | 153 | ||||||||||||
| Earnings (loss) from operations | 3,899 | (1,187 | ) | 13,821 | (2,809 | ) | ||||||||||
| Gain on economic hedges of risk | 1,381 | 264 | 2,508 | 5,833 | ||||||||||||
| Interest expense | (1,278 | ) | (632 | ) | (2,710 | ) | (2,182 | ) | ||||||||
| Other income | 2 | 3 | 7 | 3 | ||||||||||||
| Earnings (loss) before income taxes | 4,004 | (1,552 | ) | 13,626 | 845 | |||||||||||
| Income tax expense (benefit) | 961 | (400 | ) | 3,315 | 105 | |||||||||||
| Net earnings (loss) | $ | 3,043 | $ | (1,152 | ) | $ | 10,311 | $ | 740 | |||||||
| Net earnings (loss) per share: | ||||||||||||||||
| Basic | $ | 0.43 | $ | (0.17 | ) | $ | 1.46 | $ | 0.11 | |||||||
| Diluted | $ | 0.43 | $ | (0.17 | ) | $ | 1.46 | $ | 0.11 | |||||||
The table below provides summarized unaudited balance sheets as of December 31, 2025 and March 31, 2025:
| SUMMARIZED BALANCE SHEETS (unaudited) | ||||||
| (In thousands) | ||||||
| December 31, 2025 | March 31, 2025 | |||||
| ASSETS: | ||||||
| Current assets | 231,477 | 166,467 | ||||
| Noncurrent assets | 80,382 | 60,355 | ||||
| Total assets | 311,859 | 226,822 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||
| Current liabilities | 64,414 | 38,324 | ||||
| Noncurrent liabilities | 105,231 | 56,073 | ||||
| Total liabilities | 169,645 | 94,397 | ||||
| Total stockholders' equity | 142,214 | 132,425 | ||||
| Total liabilities and stockholders' equity | 311,859 | 226,822 | ||||
FLAT-ROLL SEGMENT OPERATIONS
Flat-roll product segment sales for the 2025 quarter totaled approximately
Sales volume for the 2025 quarter consisted of approximately 149,500 tons from inventory and another 15,500 tons of toll processing, compared to approximately 105,000 tons from inventory and 18,000 tons of toll processing in the 2024 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. Same facility year-over-year growth accounted for approximately 31,000 tons of the volume increase with Century contributing approximately 11,000 additional tons.
The average selling price increased from approximately
TUBULAR SEGMENT OPERATIONS
Tubular product segment sales for the 2025 quarter totaled approximately
Tons sold increased from approximately 8,000 tons in the 2024 quarter to approximately 12,500 tons in the 2025 quarter. The average selling price rose 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 2025 quarter, we recognized a gain on hedging activities of approximately
OUTLOOK
Management expects fourth quarter fiscal 2026 sales volumes to remain generally consistent with third quarter levels. Management anticipates sequential improvement in sales margins driven by increases in average selling prices as we enter the fourth quarter.
“Friedman remains in a strong financial position with the flexibility to respond to changing market conditions,” Taylor added. “We are encouraged by recent average selling price trends and believe our operating discipline, commercial initiatives, and risk management approach position us well to navigate the current environment. I am confident in our strategy, our team, and our ability to continue building long-term value for 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.
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.
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 February 9, 2026 or contact Alex LaRue, Chief Financial Officer – Secretary and Treasurer, at (903) 758-3431.
FAQ
What were Friedman Industries (FRD) third quarter results for the period ended December 31, 2025?
How much did Friedman Industries (FRD) sales and volumes change in Q3 2025 versus Q3 2024?
What were FRD flat-roll and tubular segment selling prices and margins in Q3 2025?
What impact did hedging have on Friedman Industries (FRD) Q3 2025 results?
What is Friedman Industries' (FRD) outlook for fiscal Q4 2026 following the December 31, 2025 quarter?
