Friedman Industries (FRD) investor relations material

Executive summary

• Net sales for the six months ended September 30, 2025, increased to $287.2 million from $221.3 million year-over-year, driven by higher sales volume and the Century Metals & Supplies acquisition.

• Achieved record sales volume and highest quarterly sales in company history, up 43% year-over-year to $152.4 million.

• Net earnings rose to $7.3 million from $1.9 million year-over-year, reflecting improved margins and operational performance.

• The acquisition of Century Metals & Supplies expanded the company's presence in the southeastern U.S. and Latin America, broadening product offerings.

Financial highlights

• Adjusted gross profit for the six months was $55.4 million (19.3% of sales), up from $36.7 million (16.6%) year-over-year.

• Net earnings of $2.2 million ($0.32 diluted EPS) for the quarter, compared to a net loss of $0.7 million ($0.10 diluted loss per share) in the prior year.

• Earnings from operations reached $9.9 million, compared to a loss of $1.6 million in the prior year period.

• Cash flow from operations was $15.9 million, with cash and restricted cash at $5.1 million at period end.

• Non-recurring acquisition expenses of $0.9 million to $1.1 million impacted results.

Outlook and guidance

• Third quarter sales volume is expected to remain consistent with the second quarter, with modest margin improvement anticipated due to higher metals pricing.

• Integration of Century Metals & Supplies progressing well, with early synergies observed.