FRDNasdaqSteel Works, Blast Furnaces & Rolling & Finishing MillsUS GAAP · USD

Friedman Industries Inc

Friedman Industries Inc. is a Texas-based steel processor and manufacturer that operates two businesses: flat-roll products and tubular products. It converts hot-rolled coil into sheet, plate, and pipe products, and also provides toll processing and storage services for customer-owned material.

Revenue647m USD
+45.5 %y/y
Operating profit (EBIT)25.7m USD
+743.0 %y/y
EBIT margin4.0%
+3.3 ppy/y
Net income19.5m USD
+221.0 %y/y
Free cash flow1.4m USD
+116.4 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

0200400600800m USD2021: 126 m USD2021: EBIT 16 m USD20212022: 285 m USD2022: EBIT 29 m USD20222023: 548 m USD2023: EBIT 21 m USD20232024: 516 m USD2024: EBIT 25 m USD20242025: 445 m USD2025: EBIT 3.0 m USD20252026: 647 m USD2026: EBIT 26 m USD202664726
RevenueOperating profit (EBIT)

Business

Share of revenue
Flat-Roll Products91 %

Processed hot-rolled coil converted into sheet and plate, plus toll processing and storage services.

Tubular Products9 %

Electric resistance welded pipe sold from inventory for line pipe, oil country pipe, and structural uses.

Customers

The company sells primarily to steel distributors and to manufacturers that use steel in fabricated products such as buildings, railroad cars, barges, tanks, containers, trailers, and component parts. Flat-roll customers are concentrated in the Midwest, Southwest, and Southeast, while tubular products are sold nationally. The business depends on rapid delivery, product specifications, and price competitiveness, which are central to how customers source steel.

Steel distributors

Buy flat-roll and tubular products for resale and regional distribution.

Steel fabricators and manufacturers

Buy processed steel for end products such as buildings, trailers, tanks, and railroad cars.

Pipe and tubular distributors

Buy ERW pipe for line pipe, oil country pipe, and structural applications.

Toll-processing and storage customers

Use the company’s facilities to process or store customer-owned coils.

Strategy

Management is focused on increasing capacity utilization, improving commercial execution, and maintaining rapid-delivery service across its processing network. The company also uses hot-rolled coil futures, options, and swaps to reduce exposure to commodity price swings and protect inventory value. Recent acquisition activity, including Century Metals & Supplies, suggests a continued effort to expand scale and throughput.

Increase capacity utilizationShort term

Higher throughput improves fixed-cost absorption and supports margin expansion.

Commodity risk managementShort term

Hedging helps stabilize results when hot-rolled coil prices move quickly.

Scale through acquisition and network expansionMedium term

Added volume and customer relationships can improve market coverage and utilization.

Geography

Operations are entirely in the United States, with five flat-roll processing facilities in Arkansas, Alabama, Indiana, Illinois, and Texas, plus tubular operations in Lone Star, Texas. Flat-roll sales are concentrated in the Midwest, Southwest, and Southeast, while tubular products are sold nationally. This footprint ties the company closely to U.S. industrial demand and freight economics.

Risks

The business is highly exposed to hot-rolled coil price volatility, which can compress physical margins and create timing differences between hedging gains and inventory economics. It also depends on a limited number of suppliers for both flat-roll and tubular inventory, and it operates in a highly competitive market where price and delivery speed matter. Customer concentration is manageable but still meaningful, with O'Neal Steel representing a notable share of total sales in flat-roll products.

Sorted by severity
Hot-rolled coil price volatilityHigh

Most revenue is tied to processing or selling steel whose input costs move quickly.

Exposure: Inventory margins and fixed-price sales

Supplier concentrationHigh

The company relies on a limited number of suppliers for inventory in both segments.

Exposure: Flat-roll and tubular inventory supply

Competitive pricing pressureMedium

Customers can source from processors, distributors, and brokers competing on price and delivery.

Exposure: Wholesale steel processing and pipe sales

Customer concentrationMedium

One flat-roll customer accounted for about 16% of total sales in fiscal 2025 and 2024.

Exposure: O'Neal Steel

Credit facility renewal and liquidityMedium

The existing ABL facility is approaching maturity and must be renewed to preserve flexibility.

Exposure: Working capital and borrowing capacity

Accounting

Judgemental items
Revenue mix and toll-processing fees

A portion of flat-roll revenue comes from processing or storage services rather than product sales.

Impact: Affects gross margin mix and quarter-to-quarter comparability

Derivative and hedge accounting

HRC futures, options, and swaps are used to manage commodity exposure.

Impact: Can shift gains and losses across reporting periods

Fair value estimates in acquisition accounting

Century Metals & Supplies required valuation judgments for acquired assets and liabilities.

Impact: May affect goodwill, depreciation, and future impairment risk

Inventory valuation under steel price volatility

Rapid changes in HRC prices influence inventory margins and cost of materials sold.

Impact: Can materially change reported gross profit

Publicly listed companies with a comparable business focus.

Last updated: 28/04/2026