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.