Friedman Industries Inc.: Q4 FY2026 earnings call

What management said about Q4 FY2026, from the documents filed with the SEC on 11 June 2026: press release. Guidance figures: 1 new. The quarter’s numbers.

Key takeaways

Fourth quarter earnings and sales rose: Net earnings were $1.30 diluted EPS, against $0.76 a year earlier. EBITDA was $15.2 million against $8.5 million. Sales volume rose 14% year over year. Source
Fiscal year earnings and sales grew: Fiscal 2026 diluted EPS was $2.76 against $0.87, and EBITDA was $34.3 million against $13.9 million. Sales rose 46% over fiscal 2025. Source
Flat-roll sales and earnings rose: Flat-roll sales were about $175.7 million, against $117.7 million a year earlier. Flat-roll earnings from operations were about $13.9 million, against $7.1 million. Source
Cost of materials rose with sales: Cost of materials sold was $149.4 million for the quarter, against $102.5 million a year earlier, and rose alongside sales. Source
Capacity utilization rose: Management said record volumes, higher capacity utilization and execution across facilities drove improved results through the year. Source
Century Metals fit and contribution: Management described Century Metals as a strategic fit that expanded processing capability and geographic reach, contributing to volume and profit. Source

“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,”
Michael J. Taylor, President and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Sales volume Source	first quarter fiscal 2027	comparable to fourth quarter fiscal 2026 volumes	New

What changed from last quarter

New guidance: First-quarter fiscal 2027 volume expectation given; the earlier expectation covered fourth-quarter volume. Source
New guidance: First-quarter sequential margin improvement expected, tied to higher average selling prices. Source
Ended: The earlier fourth-quarter fiscal 2026 volume expectation has been superseded by the first-quarter fiscal 2027 expectation.

Results and growth drivers

Fourth quarter earnings and sales rose: Net earnings were $1.30 diluted EPS, against $0.76 a year earlier. EBITDA was $15.2 million against $8.5 million. Sales volume rose 14% year over year. Source
Fiscal year earnings and sales grew: Fiscal 2026 diluted EPS was $2.76 against $0.87, and EBITDA was $34.3 million against $13.9 million. Sales rose 46% over fiscal 2025. Source
Same-facility growth drove most gains: About half of the quarter's volume increase came from same-facility growth; the rest came from Century Metals. For fiscal 2026, same-facility growth made up 80% of the volume increase. Source
Fiscal volume rose 22% on the year: Fiscal 2026 sales volume rose 22% from fiscal 2025. Source

Segments and regions

Flat-roll sales and earnings rose: Flat-roll sales were about $175.7 million, against $117.7 million a year earlier. Flat-roll earnings from operations were about $13.9 million, against $7.1 million. Source
Tubular sales and earnings rose: Tubular segment sales were about $16.1 million, against $11.5 million. Tubular earnings from operations were about $2.0 million, against $0.6 million. Source
Tubular volume and price both rose: Tubular tons sold rose from the prior-year quarter, and the average per-ton selling price also increased. Source

“Friedman enters fiscal 2027 with strong operating momentum following a year of record sales volumes and significantly improved earnings,”
Michael J. Taylor, President and Chief Executive Officer

Products and customers

Flat-roll processes three metal types: The flat-roll segment processes carbon steel, stainless steel and aluminum flat-rolled products through six processing facilities and a distribution facility in Orlando. Source
Toll processing reported separately: Flat-roll volume is split between tons sold from inventory and toll processing tons, which the company reports separately. Source
Tubular pipe made in Lone Star: The tubular segment makes electric resistance welded pipe in Lone Star, Texas, and distributes pipe through its Texas Tubular Products division. Source

Costs, margins and pricing

Cost of materials rose with sales: Cost of materials sold was $149.4 million for the quarter, against $102.5 million a year earlier, and rose alongside sales. Source
Selling and admin costs increased: Selling, general and administrative expenses were $9.7 million for the quarter, against $3.8 million, and $28.6 million for fiscal 2026, against $16.2 million. Source
Earnings from operations increased: Earnings from operations were $11.8 million for the quarter, against $5.9 million, and $25.7 million for fiscal 2026, against $3.0 million. Source
Hedging gains added to results: Hedging gains were about $0.9 million in the quarter and $3.4 million for fiscal 2026. Source
Interest rose; contingent gain added: Interest expense was $1.4 million for the quarter, against $0.8 million. A $1.4 million fair value adjustment of contingent consideration was added in the quarter. Source
Flat-roll selling price kept rising: Flat-roll selling price was about $1,016 per ton in the December quarter, per the prior release, and rose again in the fourth quarter.

“We expect first quarter sales volumes to be similar to fourth quarter levels and anticipate sequential margin improvement driven by higher average selling prices.”
Michael J. Taylor, President and Chief Executive Officer

Demand and order book

Stronger demand among some customers: Management cited stronger demand among some customers as a driver of the flat-roll volume increase. Source
Capacity utilization rose: Management said record volumes, higher capacity utilization and execution across facilities drove improved results through the year. Source
Volume up 6% on third quarter: Fourth quarter sales volume was 6% above the preceding third quarter. Source

Capital, cash and balance sheet

Assets and equity increased: Total assets were $336.8 million, up from $226.8 million, and stockholders' equity was $151.5 million, up from $132.4 million. Source
Liabilities increased, mostly noncurrent: Total liabilities were $185.3 million, against $94.4 million; noncurrent liabilities were $109.2 million, against $56.1 million. Source
Balance sheet cited as support: Management cited its risk management capabilities and balance sheet as support for continued value building. Source

Strategy and investment

Century Metals fit and contribution: Management described Century Metals as a strategic fit that expanded processing capability and geographic reach, contributing to volume and profit. Source
Long-term growth strategy cited: Management said fiscal 2026 results reflect the effectiveness of its long-term growth strategy. Source
Operating platform strengthened by Century: Management said execution of the growth strategy, including the Century integration, strengthened the operating platform and customer reach. Source

Coming up, as management said on 11 June 2026

Continued profitable growth planned: Management said it believes the company is positioned to capitalize on market conditions and keep delivering profitable growth. Source

Figures management reported

Figure	Reported
Sales volume, fourth quarter fiscal 2026 (tons) Source	approximately 189,000 tons
Sales volume, fiscal 2026 (tons) Source	approximately 706,000 tons
Flat-roll tons sold from inventory Source	approximately 157,500 tons
Flat-roll toll processing tons Source	approximately 19,000 tons
Tubular tons sold Source	approximately 12,500 tons
Flat-roll average selling price per ton Source	approximately $1,108 per ton
Tubular average selling price per ton Source	approximately $1,287 per ton

Risks management discussed

Financial: Under mark-to-market accounting, hedging gains or losses may be recognized in a different period than the physical margin change they correspond to. Source

Earlier plans management reported on

Not stated: The earlier expectation for fourth-quarter volume was given in the prior release; the current release does not state whether it was met.
Not stated: The prior release anticipated sequential margin improvement entering the fourth quarter; the current release does not state the result.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Friedman Industries, Incorporated Announces Fourth Quarter and Fiscal Year 2026 Results

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 quarter
14% 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 $9.2 million on sales of $191.8 million, while sales volume reached the highest quarterly level in Company history. Fiscal 2026 sales volume also established a new Company record, driving net earnings of $19.5 million on sales of $646.9 million. These results reflect the strength of our operating platform, disciplined commercial execution, and continued focus on profitable growth.”

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 $9.2 million ($1.30 diluted earnings per share) on sales of approximately $191.8 million compared to net earnings of approximately $5.3 million ($0.76 diluted earnings per share) on net sales of approximately $129.2 million for the quarter ended March 31, 2025 (the “2025 quarter”). EBITDA for the 2026 quarter was approximately $15.2 million compared to approximately $8.5 million for the 2025 quarter. Sales volume increased from approximately 166,500 tons for the 2025 quarter to approximately 189,000 tons for the 2026 quarter, an increase of approximately 22,500 tons, or 14%. Approximately half of the increase was attributable to same-facility volume growth at the Company's existing operations, while the remaining increase resulted from volumes contributed by Century Metals, which was acquired during fiscal 2026.

For the year ended March 31, 2026 (“fiscal 2026”), the Company recorded net earnings of approximately $19.5 million ($2.76 diluted earnings per share) on sales of approximately $646.9 million. For the year ended March 31, 2025 (“fiscal 2025”), the Company recorded net earnings of approximately $6.1 million ($0.87 diluted earnings per share) on sales of approximately $444.6 million. EBITDA for fiscal 2026 was approximately $34.3 million compared to approximately $13.9 million for fiscal 2025. Sales volume increased from approximately 579,500 tons for fiscal 2025 to approximately 706,000 tons for fiscal 2026, an increase of approximately 126,500 tons, or 22%. Approximately 100,500 tons of the increase, or 80%, was attributable to same-facility volume growth at the Company's existing operations, while the remaining approximately 26,000 tons, or 20%, resulted from volumes contributed by Century Metals, which was acquired during fiscal 2026.

The table below provides our statements of operations for the quarters and fiscal years ended March 31, 2026 and 2025:

	Three Months Ended March 31,		Fiscal Year Ended March 31,
	2026	2025	2026	2025
SUMMARY OF OPERATIONS
(In thousands, except for per share data)
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:

	March 31, 2026	March 31, 2025
SUMMARIZED BALANCE SHEETS
(In thousands)
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 $175.7 million, compared to approximately $117.7 million for the 2025 quarter.

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 $836 per ton in the 2025 quarter to approximately $1,108 per ton in the 2026 quarter. The flat-roll segment recorded earnings from operations of approximately $13.9 million and $7.1 million for the 2026 quarter and 2025 quarter, respectively.

TUBULAR SEGMENT OPERATIONS

Tubular segment sales for the 2026 quarter totaled approximately $16.1 million, compared to approximately $11.5 million for the 2025 quarter.

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 $1,044 per ton in the 2025 quarter to approximately $1,287 per ton in the 2026 quarter. The tubular segment recorded earnings from operations of approximately $2.0 million and $0.6 million for the 2026 quarter and 2025 quarter, respectively.

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 $0.9 million. For fiscal 2026, we recognized a total hedging gain of approximately $3.4 million.

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:

	Three months ended March 31,		Fiscal year ended March 31,
	2026	2025	2026	2025
Reconciliation of EBITDA
(In thousands)
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

Forward-looking statements notice

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.

Forward-looking statements notice

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.