Executive Summary
Friedman Industries Incorporated (FRD) reported QQ1 2026 results with a modest year-over-year top-line gain and a step-up in operating leverage, set against a backdrop of cyclical steel markets. Revenue totaled $134.777 million, up 1.92% year over year, while gross profit of $12.498 million yielded a gross margin of 9.27%. EBITDA reached $8.17 million and operating income was $7.04 million, producing net income of $5.03 million and earnings per share (EPS) of $0.71. The company generated $15.49 million in cash from operations and free cash flow of $13.71 million, underscoring healthy liquidity and cash-generative capabilities despite ongoing cyclicality in steel demand.
From a balance-sheet perspective, Friedman maintains solid liquidity with total assets of about $219.1 million and stockholders’ equity near $137.3 million. Current assets (~$157.9 million) versus current liabilities (~$40.5 million) imply a strong near-term liquidity position (current ratio ≈ 3.9). Net debt sits at approximately $0.6 million after accounting for cash balances (~$2.10–2.87 million depending on line item interpretation), signaling a modest leverage footprint for a capital-intensive distributor/processor in a cyclical industry. Overall, QQ1 2026 reflects a transitional quarter where the firm leverages its Coil and Tubular processing capabilities to generate cash despite margin headwinds inherent to steel processing.
Note: The available data do not include a verbatim earnings call transcript. Where management quotes are typically used to augment the narrative, this analysis relies on the disclosed metrics and published data. The absence of transcript quotes is acknowledged in the transcript section, and readers should monitor future calls for color on guidance, backlog, and segment mix.
Key Performance Indicators
QoQ: 54.43% | YoY:-81.21%
QoQ: 693.34% | YoY:-29.59%
Key Insights
Revenue: $134.777 million; Gross Profit: $12.498 million; Gross Margin: 9.27%; EBITDA: $8.17 million; EBITDA Margin: 6.06%; Operating Income: $7.043 million; Operating Margin: 5.23%; Net Income: $5.028 million; Net Margin: 3.73%; EPS: $0.71; Weighted Average Shs Out: 6.96588 million; Cash from Operations: $15.489 million; Capital Expenditures: $1.781 million; Free Cash Flow: $13.708 million; Net Debt: $0.614 million; Cash at End of Period: $2.872 million; Total Assets: $219.078 million; Total Li...
Financial Highlights
Revenue: $134.777 million; Gross Profit: $12.498 million; Gross Margin: 9.27%; EBITDA: $8.17 million; EBITDA Margin: 6.06%; Operating Income: $7.043 million; Operating Margin: 5.23%; Net Income: $5.028 million; Net Margin: 3.73%; EPS: $0.71; Weighted Average Shs Out: 6.96588 million; Cash from Operations: $15.489 million; Capital Expenditures: $1.781 million; Free Cash Flow: $13.708 million; Net Debt: $0.614 million; Cash at End of Period: $2.872 million; Total Assets: $219.078 million; Total Liabilities: $81.798 million; Shareholders’ Equity: $137.28 million; Current Ratio: 3.90; Two-Segment Profile: Coil and Tubular.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
134.78M |
1.92% |
43.27% |
| Gross Profit |
12.50M |
-81.21% |
54.43% |
| Operating Income |
7.04M |
-29.59% |
693.34% |
| Net Income |
5.03M |
1.41% |
536.46% |
| EPS |
0.71 |
1.43% |
517.65% |
Management Commentary
Transcript data not provided in the input. No direct management quotes are available to quote or attribute in this report. The analysis therefore highlights metrics that would typically be discussed in a QQ1 2026 earnings call (backlog, margins by segment, volume trends, cost controls, and guidance) and notes the need to consult the actual call for verbatim remarks and future outlook.
Forward Guidance
No explicit management guidance was published in the provided data for QQ1 2026. In a cyclical steel environment, a plausible base-case outlook would emphasize: (i) steady demand for coil processing services and tubular products in line with Midwest-to-Southeast industrial activity, (ii) modest revenue growth given a YoY uptick of ~2% and QoQ momentum, and (iii) margin stabilization as cost-of-revenue dynamics (input steel, energy, and logistics) normalize from earlier peaks. Risks to this outlook include commodity-price volatility, energy sector capex cycles impacting tubular demand, potential raw-material cost shocks, and ongoing trade/tariff or supply chain volatility. Key factors investors should monitor include: (a) segment mix shifts between Coil and Tubular, (b) raw-material cost inflation versus pass-through pricing, (c) working capital efficiency given elevated inventory, and (d) any communicated guidance on capital allocation and potential dividends or buybacks.