Friedman Industries, Incorporated (NASDAQ: FRD) announced its financial results on June 11, reporting sharply higher earnings and revenue for both the fourth quarter and full fiscal year ended March 31, 2026, driven by stronger steel demand, higher selling prices and contributions from its Century Metals acquisition.
For the fiscal fourth quarter, the company reported net earnings of $9.2 million, or $1.30 per diluted share, compared with $5.3 million, or $0.76 per diluted share, in the same period a year earlier.
Quarterly sales increased to $191.8 million from $129.2 million in the prior-year quarter, while EBITDA rose to $15.2 million from $8.5 million.
Sales volume climbed 14% year-over-year to approximately 189,000 tons, up from 166,500 tons in the fourth quarter of fiscal 2025. Friedman said roughly half of the increase came from higher volumes at its existing facilities, while the remainder was attributable to Century Metals, which the company acquired during fiscal 2026.
For the full fiscal year, Friedman reported net earnings of $19.5 million, or $2.76 per diluted share, compared with $6.1 million, or $0.87 per diluted share, in fiscal 2025.
Annual revenue increased 45.5% to $646.9 million from $444.6 million, while EBITDA more than doubled to $34.3 million from $13.9 million.
Total sales volume for fiscal 2026 rose 22% to approximately 706,000 tons, compared with 579,500 tons in fiscal 2025. The company said approximately 80% of the increase was generated by higher volumes at existing operations, while the remaining 20% came from Century Metals.
Flat-Roll Segment Delivers Strong Growth
Friedman’s flat-roll segment generated quarterly sales of approximately $175.7 million, compared with $117.7 million in the year-earlier quarter.
Sales volume increased to approximately 176,500 tons, consisting of 157,500 tons from inventory sales and 19,000 tons of toll processing activity. This compared with approximately 155,500 tons in the prior-year quarter.
Management attributed the volume growth to stronger customer demand, successful commercial initiatives aimed at increasing capacity utilization and the addition of Century Metals.
The average selling price increased to approximately $1,108 per ton from $836 per ton a year earlier.
The segment recorded operating earnings of approximately $13.9 million, nearly doubling from $7.1 million in the fourth quarter of fiscal 2025.
Tubular Segment Earnings Improve
The company’s tubular segment also reported stronger results.
Quarterly sales rose to approximately $16.1 million from $11.5 million in the prior-year period, while tons sold increased to approximately 12,500 tons from 11,000 tons.
Average selling prices improved to approximately $1,287 per ton, compared with $1,044 per ton a year earlier.
Operating earnings in the tubular segment increased to approximately $2.0 million from $0.6 million in the comparable quarter of fiscal 2025.
Hedging Activities Add to Results
Friedman utilizes hot-rolled coil futures, options and swap contracts to manage price risk associated with inventory and fixed-price sales agreements.
The company recorded a gain of approximately $0.9 million from hedging activities during the fourth quarter and reported total hedging gains of approximately $3.4 million for fiscal 2026.
Outlook Remains Positive
Looking ahead, management expects first-quarter fiscal 2027 sales volumes to remain comparable to fourth-quarter fiscal 2026 levels.
The company also anticipates sequential improvement in sales margins, supported by higher average selling prices.
Management said the successful integration of Century Metals has strengthened Friedman’s operating platform and expanded its ability to serve customers across multiple markets.
The company added that its diversified operating footprint, strong balance sheet, disciplined commercial strategy and risk management practices position it to pursue additional growth opportunities and deliver long-term value to shareholders.
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