Friedman Industries (FRD) Q1 2027 earnings summary

Executive summary

• Net sales for the quarter ended June 30, 2026, were $239.97 million, up from $134.78 million year-over-year, driven by higher average selling prices, increased sales volume in both flat-roll and tubular segments, and the Century Metals acquisition.

• Net earnings rose to $12.78 million from $5.03 million year-over-year, with adjusted gross profit margin expanding to 23.2% from 21.6%.

• Achieved record quarterly sales volume and net earnings, reflecting strong commercial execution and expanded operating platform.

• Organic growth at legacy facilities and the Century Metals acquisition drove most of the year-over-year sales volume increase.

• Diversified business model and disciplined investments have enhanced geographic reach and customer offerings.

Financial highlights

• Adjusted gross profit was $55.75 million, up from $29.07 million year-over-year.

• EBITDA rose to $19.3 million from $8.2 million year-over-year.

• Net sales reached $240.0 million, a 78% increase year-over-year.

• Earnings from operations increased to $21.03 million from $7.04 million year-over-year.

• Basic and diluted EPS were $1.79, compared to $0.71 in the prior year quarter.

Outlook and guidance

• Management expects current cash, operating cash flows, and borrowing capacity to be adequate for the next 12 months.

• Second quarter sales volumes expected to be comparable to first quarter levels.

• Sequential improvement in sales margins anticipated, driven by higher average selling prices.

• Strong operating momentum and balance sheet position the company to capitalize on growth opportunities.

• The company will continue to monitor and manage balance sheet components in response to market and operational changes.