Friedman Industries Earnings Jump to $15.6 Million on Record Quarterly Sales
Key Facts
Friedman Industries posted net income of about $15.6 million for the quarter ended September 30, 2026, compared with $2.2 million in the same period of 2025, according to the company's official statement. Diluted earnings per share were $2.19, compared with $0.32 a year earlier. Sales rose to about $286.8 million from $152.4 million in the year-earlier quarter. The company said the period set records for sales volume, revenue and net income, and described the results as the strongest in its history. EBITDA also rose to about $23 million from $4.7 million.
Sales volume was about 219,500 tons, an annual increase of about 40,500 tons, or 23%, according to the statement. The company attributed about 31,000 tons of the increase to sales growth at its existing facilities, with the remainder coming from Century Metals, which it acquired in August 2025. Management said stronger customer demand helped lift volume, alongside commercial initiatives aimed at improving capacity utilization. The acquisition added sales capacity to the period's results, while existing facilities provided an independent source of a meaningful portion of the growth. As a result, both volume and prices rose compared with the year-earlier quarter of 2025.
The average selling price for tons of flat-rolled inventory rose to about $1,430 per ton in the quarter, from $963 in the year-earlier period, the company said. Chief Executive Michael Taylor said sales volume at its legacy flat-rolled facilities increased 15% year over year. In the tubular segment, sales volume rose 82% compared with the same quarter a year earlier. Taylor attributed the segment's growth to ongoing process improvements and capital investment, which supported production and sales capabilities. The indicators reflect the different sources of expansion: higher prices, improved volume at existing facilities, the contribution from the acquisition, and strong growth in tubular products.
Still, management said higher metal prices, while supporting realized margins, resulted in an expense of $14.6 million related to hedging activities during the quarter. Of that expense, $9.8 million was unrealized and related to open positions tied to metal that had not yet been sold. The company said it expects to benefit from the higher value of its inventory when it is sold in the future. This places hedging costs in the context of rising metal prices, which lifted the average selling price, while part of the financial impact remained unrealized at period-end. The statement did not include an adjustment to the reported results or an estimate of the future benefit's value in these figures.
Performance extended into the first half of the fiscal year ended September 30, 2026, with the company posting record net income of $28.4 million and EBITDA of $42.3 million. Sales for the six months reached $526.8 million, up 83% year over year, according to the company statement. In the first quarter, ended June 30, 2026, earnings were $12.8 million and sales were $240 million, with sales growth of 78% year over year. Second-quarter results continued the growth seen in the first quarter, while setting new records in the latest period. FRD shares closed at $38.79 on November 4, 2026, according to EL7 data.
For the third quarter, Friedman Industries expects sales volume to align with typical seasonal trends, according to its statement. It also expects sequential improvement in sales margins as average selling prices rise. Taylor said the company expects normal seasonality in the quarter and that higher prices will support continued improvement in realized margins. He added that inventory is positioned to meet customer demand. The company ties its outlook for the coming period to seasonal volume trends, prices and margins, without specifying target sales or earnings figures.