Friedman Industries, Incorporated reported a significant increase in financial performance for the three months ended June 30, 2025, with net sales reaching $134.8 million, up from $114.6 million in the same period last year. The company’s net earnings also rose to $5.0 million, or $0.71 per share, compared to $2.6 million, or $0.37 per share, in the prior year. This growth was primarily driven by an increase in sales volume, which included approximately 141,500 tons from inventory and 19,000 tons of toll processing customer-owned material, compared to 119,000 tons and 24,000 tons, respectively, in the previous year.
The company’s cost of materials sold increased to $105.7 million from $96.4 million, reflecting higher sales volumes and costs associated with raw materials. Adjusted gross profit for the quarter was approximately $29.1 million, representing a gross margin of 21.6%, compared to $18.1 million and a margin of 15.8% in the prior year. The improved margins were attributed to stable hot-rolled steel coil prices, which had reached the top of a price cycle, contrasting with the declining trend observed in the previous year.
Operationally, Friedman Industries continues to focus on its two primary segments: flat-roll and tubular products. The flat-roll segment generated $124.1 million in sales, up from $103.4 million, while the tubular segment saw a slight decline in sales to $10.7 million from $11.2 million. The flat-roll segment's earnings from operations increased significantly to $8.8 million, while the tubular segment returned to profitability with earnings of $1.3 million, compared to a loss of $1.2 million in the previous year.
In terms of strategic developments, the company has maintained its asset-based lending facility of $150 million, which was recently amended to extend its maturity to August 2026. As of June 30, 2025, Friedman Industries had approximately $33.0 million drawn against this facility. The company’s total assets decreased to $219.1 million from $226.8 million, primarily due to a reduction in cash and inventories. The company reported a current ratio of 3.9, indicating a strong liquidity position.
Looking ahead, Friedman Industries anticipates slightly higher sales volumes for the second quarter of fiscal 2026, driven by ongoing efforts to enhance capacity utilization. However, the company expects lower margins in the upcoming quarter due to a recent softening in hot-rolled coil prices. The management remains focused on monitoring market conditions and adjusting operations accordingly to sustain growth and profitability.
About FRIEDMAN INDUSTRIES INC
Friedman Industries, Incorporated is a Texas-based manufacturer and processor of steel products, operating in two segments: flat-roll and tubular products. It produces hot-rolled coils, sheets, plates, and welded pipe for industrial markets across the U.S. The company supplies steel distributors and fabricators, competing on price and rapid delivery, with a focus on quality, safety, and efficient operations.
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