frd20250630_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED June 30, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FROM THE TRANSITION PERIOD FROM TO

COMMISSION FILE NUMBER 1-7521

FRIEDMAN INDUSTRIES, INCORPORATED

(Exact name of registrant as specified in its charter)

Texas

74-1504405

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

1121 Judson Road, Suite 124, Longview, Texas 75601

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (903)758-3431

Former name, former address and former fiscal year, if changed since last report

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, $1 Par Value		FRD		Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☒

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). (Check one): Yes ☐ No ☒

At August 7, 2025, the number of shares outstanding of the issuer’s only class of stock was 7,059,440 shares of Common Stock.

Part I — FINANCIAL INFORMATION	3
Item 1. Financial Statements (Unaudited)	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3. Quantitative and Qualitative Disclosures About Market Risk	16
Item 4. Controls and Procedures	16
Part II — OTHER INFORMATION	17
Item 5. Other Information	17
Item 6. Exhibits	17
SIGNATURES	18

	*JUNE 30, 2025*			*MARCH 31, 2025*
ASSETS
CURRENT ASSETS:
Cash	$	2,099		$	3,686
Accounts receivable, net of allowances for credit losses and cash discounts of $124 and $147 at June 30, and March 31, 2025, respectively		50,717			47,476
Inventories		103,458			113,689
Current portion of derivative assets		328			636
Other current assets		1,327			980
TOTAL CURRENT ASSETS		157,929			166,467
PROPERTY, PLANT AND EQUIPMENT:
Land		1,572			1,572
Buildings and yard improvements		30,393			30,393
Machinery and equipment		59,197			57,970
Construction in process		689			135
Less accumulated depreciation		(34,641	)		(33,819	)
		57,210			56,251
OTHER ASSETS:
Operating lease right-of-use asset		2,788			2,841
Other assets		1,151			1,263
TOTAL ASSETS	$	219,078		$	226,822
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	35,289		$	35,304
Income taxes payable		2,272			647
Dividends payable		282			279
Employee compensation and related expenses		2,551			1,807
Current portion of derivative liability		82			287
TOTAL CURRENT LIABILITIES		40,476			38,324

POSTRETIREMENT BENEFITS OTHER THAN PENSIONS		118			115
DEFERRED INCOME TAX LIABILITY		5,452			5,478
NON-CURRENT LEASE LIABILITIES		2,713			2,752
ASSET BASED LENDING FACILITY		33,039			47,728
TOTAL LIABILITIES		81,798			94,397
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock, par value $1: Authorized shares — 10,000,000; Issued shares — 8,966,763 and 8,877,229 shares at June 30, and March 31, 2025		8,967			8,877
Additional paid-in capital		35,427			35,394
Treasury stock at cost (1,907,323 shares and 1,906,693 shares at June 30, and March 31, 2025, respectively)		(13,110	)		(13,100	)
Retained earnings		105,996			101,254
TOTAL STOCKHOLDERS’ EQUITY		137,280			132,425
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	219,078		$	226,822

	*THREE MONTHS ENDED*
	*JUNE 30,*
	*2025*			*2024*
Net Sales	$	134,777		$	114,551
Costs and expenses:
Costs of materials sold (excludes items shown separately below)		105,704			96,414
Processing and warehousing expense		9,328			8,178
Delivery expense		6,400			6,051
Selling, general and administrative		5,455			4,511
Depreciation and amortization		847			795
		127,734			115,949
EARNINGS (LOSS) FROM OPERATIONS		7,043			(1,398	)
Gain on economic hedges of risk		276			5,375
Interest expense		(678	)		(681	)
Other income		4			3
EARNINGS BEFORE INCOME TAXES		6,645			3,299
Provision for (benefit from) income taxes:
Current		1,643			742
Deferred		(26	)		(10	)
		1,617			732
NET EARNINGS	$	5,028		$	2,567
Net earnings per share:
Basic	$	0.71		$	0.37
Diluted	$	0.71		$	0.37
Cash dividends declared per common share	$	0.04		$	0.04

	*THREE MONTHS ENDED JUNE 30,*
	*2025*			*2024*
OPERATING ACTIVITIES
Net earnings	$	5,028		$	2,567
Adjustments to reconcile net earnings to cash provided by (used in) operating activities:
Depreciation and amortization		847			795
Deferred taxes		(26	)		(10	)
Compensation expense for restricted stock		123			47
Change in postretirement benefits		3			1
Loss (gain) recognized on open derivatives not designated for hedge accounting		103			(1,608	)
Right-of-use asset		18			(27	)
Decrease (increase) in operating assets:
Accounts receivable		(3,241	)		9,574
Inventories		10,231			(3,998	)
Other current assets		53			260
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses		(19	)		(9,533	)
Income taxes payable		1,625			610
Employee compensation and related expenses		744			(4,737	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		15,489			(6,059	)
INVESTING ACTIVITIES
Purchase of property, plant and equipment		(1,781	)		(1,054	)
Increase in cash surrender value of officers’ life insurance		(3	)		(3	)
NET CASH USED IN INVESTING ACTIVITIES		(1,784	)		(1,057	)
FINANCING ACTIVITIES
Cash dividends paid		(282	)		(279	)
Cash paid for principal portion of finance lease		—			(27	)
Cash paid for share repurchases		(10	)		(123	)
Borrowings on asset based lending facility		196,322			198,871
Repayments on asset based lending facility		(211,011	)		(193,077	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		(14,981	)		5,365
DECREASE IN CASH AND RESTRICTED CASH		(1,276	)		(1,751	)
CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD		4,148			5,897
CASH AND RESTRICTED CASH AT END OF PERIOD	$	2,872		$	4,146

	*June 30, 2025*		*March 31, 2025*
Flat-Roll raw material	$	71,441	$	85,865
Flat-Roll finished goods		16,439		15,737
Tubular raw material		9,619		7,055
Tubular finished goods		5,959		5,032
	$	103,458	$	113,689

	*June 30, 2025*		*March 31, 2025*		*Balance Sheet Classification*
Assets
Operating lease right-of-use asset	$	2,788	$	2,841	Operating lease right-of-use asset
Total right-of-use assets	$	2,788	$	2,841
Liabilities
Operating lease liability, current	$	164	$	160	Accrued expenses
Operating lease liability, non-current		2,713		2,752	Non-current lease liabilities
Total lease liabilities	$	2,877	$	2,912

	*Operating Leases*
Fiscal 2026 (remainder of fiscal year)		273
Fiscal 2027		371
Fiscal 2028		325
Fiscal 2029		303
Fiscal 2030 and beyond		4,740
Total undiscounted lease payments	$	6,012
Less: imputed interest		(3,135	)
Present value of lease liability	$	2,877

				*Weighted Average*
	*Number of Shares*			*Grant Date Fair Value Per Share*
Unvested at March 31, 2025		18,026		$	7.07
Cancelled or forfeited		—			—
Granted		89,534			14.39
Vested		(14,000	)		4.32
Unvested at June 30, 2025		93,560		$	14.49

	*Asset Derivatives*			*Liability Derivatives*
	*Balance Sheet*			*Balance Sheet*
Derivatives not designated as hedging instruments:	*Location*	*Fair Value*		*Location*	*Fair Value*
Hot-rolled coil steel contracts	Current portion of derivative assets	$	328	Current portion of derivative liability	$	82

		*Gain Recognized in Earnings*
	*Location of Gain*	*for the Three Months Ended*
	*Recognized in Earnings*	*June 30, 2025*
Hot-rolled coil steel contracts	Gain on economic hedges of risk	$	276

	Notional Amount			Maturity Date
Hot-rolled coil steel contracts	$	(12,484	)	July 2025 - June 2026

	Notional Amount			Maturity Date
Hot-rolled coil steel contracts	$	(9,522	)	April 2025 - December 2025

	*Quoted Prices*
	*in Active*		*Significant*
	*Markets for*		*Other*		*Significant*
	*Identical*		*Observable*		*Unobservable*
	*Assets*		*Inputs*		*Inputs*
	*(Level 1)*		*(Level 2)*		*(Level 3)*		*Total*
Commodity futures – financial assets, net	$	246	$	—	$	—	$	246
Total	$	246	$	—	$	—	$	246

	*Quoted Prices*
	*in Active*		*Significant*
	*Markets for*		*Other*		*Significant*
	*Identical*		*Observable*		*Unobservable*
	*Assets*		*Inputs*		*Inputs*
	*(Level 1)*		*(Level 2)*		*(Level 3)*		*Total*
Commodity futures – financial assets, net	$	349	$	—	$	—	$	349
Total	$	349	$	—	$	—	$	349

	Three Months Ended June 30, 2025
	Flat-Roll		Tubular			Other			Total
Net Sales	$	124,067	$	10,710			—		$	134,777
Cost and expenses:
Cost of materials sold		99,154		6,550			—			105,704
Processing and warehousing expense		6,899		2,429			—			9,328
Delivery expense		6,260		140			—			6,400
Commercial expense		2,199		212			—			2,411
Depreciation and amortization		769		50			28			847
General corporate expenses		—		—			3,044			3,044
		115,281		9,381			3,072			127,734
EARNINGS (LOSS) FROM OPERATIONS		8,786		1,329			(3,072	)		7,043
Gain on economic hedges of risk										276
Interest expense										(678	)
Other income										4
EARNINGS BEFORE INCOME TAXES									$	6,645

	*Three Months Ended June 30, 2024*
	*Flat-Roll*		*Tubular*			*Other*			*Total*
Net Sales	$	103,387	$	11,164			—		$	114,551
Cost and expenses:
Cost of materials sold		86,913		9,501			—			96,414
Processing and warehousing expense		5,768		2,410			—			8,178
Delivery expense		5,878		173			—			6,051
Commercial expense		1,482		182			—			1,664
Depreciation and amortization		680		83			32			795
General corporate expenses		—		—			2,847			2,847
		100,721		12,349			2,879			115,949
EARNINGS (LOSS) FROM OPERATIONS		2,666		(1,185	)		(2,879	)		(1,398	)
Gain on economic hedges of risk										5,375
Interest expense										(681	)
Other income										3
EARNINGS BEFORE INCOME TAXES									$	3,299

	*June 30, 2025*		*March 31, 2025*
IDENTIFIABLE ASSETS:
Flat-Roll	$	192,341	$	204,890
Tubular		22,447		16,792
		214,788		221,682
General corporate assets		4,290		5,140
	$	219,078	$	226,822



			*Additional*
	*Common*		*Paid-In*			*Treasury*			*Retained*
	*Stock*		*Capital*			*Stock*			*Earnings*			*Total*
BALANCE AT MARCH 31, 2025	$	8,877	$	35,394		$	(13,100	)	$	101,254		$	132,425
Net earnings		—		—			—			5,028			5,028
Paid in capital – restricted stock units		—		123			—			—			123
Issuance of restricted stock		90		(90	)		—			—			—
Repurchase of shares		—		—			(10	)		—			(10	)
Cash dividends ($0.04 per share)		—		—			—			(286	)		(286	)
BALANCE AT JUNE 30, 2025	$	8,967	$	35,427		$	(13,110	)	$	105,996		$	137,280

	THREE MONTHS ENDED
	JUNE 30,
	2025		2024
Gross profit (GAAP measure)	$	12,498	$	3,113
Processing and warehousing expense		9,328		8,178
Delivery expense		6,400		6,051
Depreciation and amortization		847		795
Adjusted gross profit (non-GAAP measure presented)	$	29,073	$	18,137

Exhibits

3.1	—	Articles of Incorporation of the Company, as amended (incorporated by reference from Exhibit 3.1 to the Company’s Form S-8 filed on December 21, 2016).

3.2	—	Articles of Amendment to the Articles of Incorporation of the Company, as filed with the Texas Secretary of State on September 22, 1987 (incorporated by reference from Exhibit 3.1 to the Company’s Form S-8 filed on December 21, 2016).

3.3	—	Amended and Restated Bylaws of the Company, as amended on November 8, 2021. (incorporated by reference from Exhibit 3.3 to the Company's Form 10-Q filed on November 19, 2021).

10.1	—	Friedman Industries, Incorporated Key Employee Change In Control Severance Plan. (incorporated by reference from Exhibit 10.1 to the Company's Form 10-Q filed on November 12, 2024).

10.2		Fourth Amendment to Amended and Restated Credit Agreement (incorporated by reference from Exhibit 10.9 to the Company’s Form 10-K for the fiscal year ended March 31, 2025 filed on June 12, 2025).

** 31.1	—	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by Michael J. Taylor.

** 31.2	—	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by Alex LaRue.

** 32.1	—	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by Michael J. Taylor.

** 32.2	—	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by Alex LaRue.

**101.INS	—	Inline XBRL Instance Document.

**101.SCH	—	Inline XBRL Taxonomy Schema Document.

**101.CAL	—	Inline XBRL Calculation Linkbase Document.

**101.DEF	—	Inline XBRL Definition Linkbase Document.

**101.LAB	—	Inline XBRL Label Linkbase Document.

**101.PRE	—	Inline XBRL Presentation Linkbase Document.

**104	—	Cover Page Interactive File (formatted as Inline XBRL and contained in Exhibit 101)

** Filed herewith.

	FRIEDMAN INDUSTRIES, INCORPORATED

Date: August 7, 2025	By	/s/ ALEX LARUE
		Alex LaRue, Chief Financial Officer – Secretary and Treasurer (Principal Financial Officer)

SEC Form 10-Q filed by Friedman Industries Inc.