Friedman Industries Reports Significant Financial Growth with $239.97 Million in Net Sales

Friedman Industries, Incorporated reported significant financial growth for the three months ending June 30, 2026, with net sales reaching $239.97 million, a substantial increase from $134.78 million in the same period last year. The company's earnings from operations also saw a notable rise, climbing to $21.03 million compared to $7.04 million in the previous year. Net earnings for the quarter were $12.78 million, or $1.79 per diluted share, up from $5.03 million, or $0.71 per diluted share, in the prior year. This performance reflects a strong demand for the company's products and favorable market conditions, particularly in the hot-rolled steel market.

The financial results indicate a marked improvement in several key areas compared to the previous fiscal period. The cost of materials sold increased to $184.22 million from $105.70 million, driven by higher sales volumes and increased average selling prices. The adjusted gross profit for the quarter was approximately $55.75 million, representing a gross margin of 23.2%, up from 21.6% in the prior year. The increase in sales volume was attributed to both a rise in demand and the acquisition of Century Metals & Supplies, which contributed approximately 12,000 tons to the sales volume.

Strategically, Friedman Industries expanded its operations through the acquisition of Century Metals & Supplies, which was completed on August 29, 2025. This acquisition included the working capital, buildings, and processing equipment of Century, enhancing the company's capabilities in the southeastern U.S. and Latin American markets. The integration of Century has allowed Friedman to broaden its product offerings to include cold-rolled, coated, and stainless steels, as well as non-ferrous materials like aluminum and copper. The acquisition is expected to contribute positively to the company's growth trajectory moving forward.

Operationally, the company reported an increase in customer engagement, with sales volume for the quarter consisting of approximately 188,500 tons from inventory and 17,500 tons of toll processing customer-owned material. The flat-roll segment alone generated sales of approximately $221.75 million, while the tubular segment reported $18.22 million in sales. The company also experienced an increase in selling, general, and administrative expenses, which rose by approximately $5.4 million, primarily due to higher incentive compensation and ongoing expenses related to the Century operations.

Looking ahead, Friedman Industries remains optimistic about its growth prospects, bolstered by favorable market conditions and the successful integration of its recent acquisition. The company anticipates continued demand for its products and plans to leverage its expanded capabilities to capture a larger market share. Management believes that the current cash position, along with cash flows from operations and borrowing capacity, will adequately support the company's expected cash requirements for the next 12 months.