Friedman Posts Record Sales and Earnings

The Tip Desk · November 5, 2026 · 3 min read

Net sales reached a record $286.8 million in the quarter ended September 30, 2026, and net earnings were $15.6 million, or $2.19 a share.

Friedman Industries, Incorporated (FRD), a diversified metals processing and pipe manufacturer, reported record sales of $286.8 million for the quarter ended September 30, 2026, up 88% from a year earlier, after $240.0 million in the prior quarter.

Net earnings were $15.6 million, or $2.19 a share, compared with $2.2 million, or $0.32 a share, a year earlier. EBITDA was $23.0 million.

Sales volume reached approximately 219,500 tons, a company record, up 7% from about 206,000 tons in the June quarter. Year-over-year volume growth slowed to 23% from 28% in the prior quarter. Of the 40,500-ton increase versus the year-ago quarter, about 31,000 tons came from same-facility growth at existing operations; the rest came from Century Metals, acquired in August 2025. Legacy flat-roll volume rose 15% versus the year-ago quarter.

President and Chief Executive Officer Michael J. Taylor said the second quarter was the strongest in company history, with records in sales volume, revenue and net earnings. He said the company maintained inventory to meet customer demand in a constrained supply environment and capitalized on higher metal prices through stronger physical margins.

Inventory tons sold were about 185,500, versus about 147,000 a year earlier. Toll processing fell to about 20,000 tons from about 24,500 tons. The average selling price on inventory tons was about $1,430 a ton, compared with about $963 a ton. The company said higher volumes, improved prices and expanded gross margins drove operating earnings to about $40.7 million.

Flat-roll sales were approximately $266.6 million, compared with $143.3 million a year earlier. Flat-roll operating earnings were approximately $40.7 million, compared with $5.7 million a year earlier.

Tubular sales were approximately $20.2 million, versus $9.0 million a year earlier. Tons sold were about 14,000, up 82% from 7,500 tons. The average tubular selling price was about $1,454 a ton, compared with about $1,185 a ton. Tubular operating earnings were about $2.3 million, versus $0.9 million. Taylor said process and capital improvements in the tubular segment supported expanded sales.

A $14.6 million loss on economic hedges of risk appeared in the quarter, versus an $851 thousand gain a year earlier. Of the $14.6 million, $9.8 million was unrealized on open positions tied to metal not yet sold. Taylor said the same rise in metal prices that lifted physical margins produced the hedging charge and that the unrealized amount reflects higher market values of inventory the company expects to sell in future periods.

For the six months ended September 30, 2026, the company reported record net earnings of $28.4 million, EBITDA of $42.3 million, sales of $526.8 million, up 83% year-over-year, and record sales volume, up 25% year-over-year.

The company expects third-quarter sales volume consistent with seasonal trends and anticipates sequential improvement in sales margins from higher average selling prices. Taylor said inventory remains positioned to meet customer demand.