Friedman Industries Incorporated (FRD) reported QQ2 2026 results with a solid year‑over‑year revenue uptick amid cyclicality in the steel market. The quarter delivered revenue of $152.383 million, up 33.03% year over year and 13.06% quarter over quarter, driven by stronger volumes and favorable product mix across the Coil and Tubular segments. Gross profit reached $9.166 million, producing a gross margin of 6.02% (vs. 0.06 in the prior period’s trailing data framework), while EBITDA totaled $4.668 million and the company generated operating income of $2.879 million (operating margin 1.89%). Net income was $2.240 million, or $0.32 per share, translating to a net margin of 1.47% for the quarter.
The quarter reflects a return to positive earnings would-be momentum after a compressed prior period, but profitability remains modest by steel-industry standards. The company exhibits disciplined cash flow dynamics with a modest operating cash flow of $0.434 million and free cash flow of approximately $(2.023) million, reflecting working capital movements and capex intensity. The balance sheet shows a sizable asset base (total assets of $311.3 million) supported by a relatively small net debt position (net debt reported as approximately −$0.12 million) and a cash balance at period end around $5.08 million. Inventory remained elevated at about $161.6 million, highlighting working capital exposure typical in steel processing, while payables and receivables formed part of ongoing working capital management.
From a quantitative standpoint, 4Q2026 quarterly performance shows YoY revenue growth but a mixed profitability trajectory—gross profit surged on a higher revenue base, yet operating and net income margins remained thin as fixed and variable costs, along with interest and tax expenses, compressed margins. Management commentary (where available in the earnings call) underscored ongoing capital discipline and the intent to leverage market upturns through price realization and volume growth, while keeping a careful eye on raw material costs, energy, and macro demand conditions. Investors should monitor steel price cycles, coil costs, customer capex cycles, and working capital dynamics as the principal drivers of FRD’s earnings trajectory over the near to medium term.