Friedman Industries (FRD) Q1 2026 earnings summary

Executive summary

• Net sales rose to $134.8 million for the quarter ended June 30, 2025, up from $114.6 million year-over-year, driven by higher sales volume and improved capacity utilization.

• Net earnings increased to $5.0 million from $2.6 million year-over-year, reflecting stronger demand and higher margins.

• Adjusted gross profit margin improved to 21.6% from 15.8% year-over-year, aided by stable steel prices and effective hedging.

• Operating cash flow reached $15.5 million, and debt was reduced by $14.7 million; working capital stood at $117.5 million.

• Improved margins and solid sales volume contributed to strong quarterly performance.

Financial highlights

• Net sales: $134.8 million, up $20.2 million year-over-year.

• Net earnings: $5.0 million, up from $2.6 million year-over-year.

• Adjusted gross profit: $29.1 million, up from $18.1 million year-over-year.

• Basic and diluted EPS: $0.71, up from $0.37 year-over-year.

• Earnings from operations were $7.0 million, up from a loss of $1.4 million year-over-year.

Outlook and guidance

• Second quarter sales volume expected to be slightly higher than the first quarter as capacity utilization increases.

• Margins anticipated to be lower in the second quarter due to softening hot-rolled coil prices.

• Management remains optimistic about long-term industry demand and growth potential.

• Current cash, operations, and borrowing capacity deemed adequate for the next 12 months.