Friedman Industries (FRD) Q3 2026 earnings summary

Executive summary

• Net sales for the nine months ended December 31, 2025, increased to $455.1 million from $315.4 million year-over-year, driven by higher sales volume and the Century Metals & Supplies acquisition.

• Net earnings rose to $10.3 million from $0.7 million year-over-year, with improved margins and operational performance in both segments.

• For the quarter ended December 31, 2025, net earnings were $3.0 million, reversing a prior year net loss of $1.2 million, with sales reaching $168.0 million, up 79% year-over-year.

• Growth was driven by improved capacity utilization, disciplined commercial execution, and the Century acquisition.

• Adjusted gross profit margin improved to 18.9% from 16.6% year-over-year, reflecting better pricing and cost management.

Financial highlights

• Three months ended December 31, 2025: Net sales $167.97 million (up from $94.07 million), net earnings $3.04 million (up from a loss of $1.15 million).

• Nine months ended December 31, 2025: Net sales $455.13 million, net earnings $10.31 million, basic and diluted EPS $1.46.

• Cash provided by operating activities was $11.2 million for the nine months ended December 31, 2025.

• Inventory increased to $169.2 million from $113.7 million at March 31, 2025, reflecting the Century acquisition.

• Gross margin improvement supported by higher average selling prices and effective hedging.

Outlook and guidance

• Management expects current cash, operations, and borrowing capacity to be sufficient for the next 12 months.

• Management expects fourth quarter sales volumes to remain consistent with third quarter levels.

• Sequential improvement in sales margins anticipated due to rising average selling prices.

• The company will continue to monitor market conditions and manage balance sheet components accordingly.

• Company remains confident in its strategy and ability to build long-term shareholder value.