Friedman Industries Reports 42.7% Revenue Growth and Net Earnings Turnaround in Latest Quarter

Friedman Industries, Incorporated reported significant financial growth in its latest quarterly results, with net sales reaching $152.4 million for the three months ended September 30, 2025, compared to $106.8 million for the same period in 2024. This represents an increase of approximately 42.7%. For the six-month period, net sales totaled $287.2 million, up from $221.3 million in the prior year, marking a 29.7% increase. The company also reported net earnings of $2.2 million for the quarter, a turnaround from a loss of $675,000 in the previous year, and net earnings of $7.3 million for the six months, compared to $1.9 million in the same period last year.

The financial performance was bolstered by a notable increase in sales volume, which included approximately 154,500 tons from inventory and 24,500 tons of toll processing customer-owned material in the latest quarter. This was an increase from 121,500 tons and 18,000 tons, respectively, in the prior year. The flat-roll segment, which is a key driver of revenue, saw sales rise to $143.3 million from $97.4 million year-over-year, while the tubular segment experienced a slight decline in sales to $9 million from $9.4 million, primarily due to a decrease in tons sold.

Strategically, Friedman Industries completed the acquisition of Century Metals & Supplies on August 29, 2025, for approximately $52.7 million. This acquisition is expected to enhance the company's presence in the southeastern U.S. and Latin American markets, expanding its product offerings to include cold-rolled, coated, and stainless steels, as well as non-ferrous materials. The integration of Century is anticipated to contribute positively to future revenue streams and operational capabilities.

Operationally, the company reported an increase in total current assets to $231.3 million as of September 30, 2025, up from $166.5 million at the end of the previous fiscal period. This increase was driven by higher accounts receivable and inventory levels, reflecting the growth in sales. The company’s total liabilities also rose to $172 million, primarily due to increased accounts payable and accrued expenses related to the acquisition. The current ratio decreased to 3.2 from 4.3, indicating a tighter liquidity position, but the company maintains a strong cash position with $4.6 million in cash and cash equivalents.

Looking ahead, Friedman Industries anticipates that sales volume will remain stable in the third quarter of fiscal 2026, with expectations for modest margin improvements driven by anticipated increases in metal prices. The company is focused on leveraging its recent acquisition to enhance operational efficiency and expand its market share, while continuing to monitor market conditions and adjust its strategies accordingly.