Shares of Friedman Industries, Incorporated (FRD Quick QuoteFRD - Free Report) have gained 36.4% since the company reported results for the quarter ended March 31, 2026, significantly outperforming the S&P 500 Index’s 3.4% gain over the same period. The stock has also delivered a strong performance over the past month, advancing 70.6% compared with a 0.9% rise in the broader market benchmark.

FRD’s Earnings Snapshot

Friedman Industries reported fourth-quarter fiscal 2026 net earnings of $9.2 million, or $1.30 per diluted share, compared with $5.3 million, or $0.76 per diluted share, in the prior-year quarter. Net sales increased 48.4% year over year to $191.8 million from $129.2 million. EBITDA rose 79.2% to $15.2 million from $8.5 million, while sales volume increased 13.5% to 189,000 tons from 166,500 tons.

For fiscal 2026, net earnings jumped to $19.5 million, or $2.76 per diluted share, from $6.1 million, or $0.87 per diluted share, in fiscal 2025. Annual sales increased 45.5% to $646.9 million from $444.6 million, while EBITDA climbed to $34.3 million from $13.9 million.

Friedman Industries’ Segment Performance

The flat-roll segment generated fourth-quarter fiscal 2026 sales of $175.7 million, up from $117.7 million a year earlier. Sales volume included 157,500 tons from inventory sales and 19,000 tons of toll processing, compared with 139,000 tons from inventory and 16,500 tons of toll processing in the prior-year quarter. The average selling price increased 32.5% to $1,108 per ton from $836 per ton. Segment operating earnings surged to $13.9 million from $7.1 million.

The tubular segment posted sales of $16.1 million, up from $11.5 million in the year-ago quarter. Tons sold increased to roughly 12,500 from 11,000, while average selling price rose 23.3% to $1,287 per ton from $1,044 per ton. Operating earnings improved to $2 million from $0.6 million.

FRD’s Other Key Business Metrics

Friedman Industries achieved record quarterly and annual sales volumes during fiscal 2026. Fourth-quarter fiscal 2026 volume increased 6% sequentially from the fiscal third quarter and 14% from the fourth quarter of fiscal 2025. Annual sales volume reached 706,000 tons, up 21.8% from 579,500 tons in fiscal 2025. About 80% of the annual volume increase came from same-facility growth, while the remainder was attributable to the Century Metals acquisition.

FRD also strengthened its balance sheet scale. Total assets increased to $336.8 million as of March 31, 2026, from $226.8 million a year earlier, while stockholders’ equity rose to $151.5 million from $132.4 million.

Friedman Industries’ Management Commentary

President and chief executive officer Michael J. Taylor described fiscal 2026 as a year of record sales volumes and improved profitability driven by strategic investments and operating initiatives. Taylor said that higher capacity utilization, disciplined commercial execution and strong performance across facilities contributed to the results. He also highlighted the Century Metals acquisition as a key contributor, citing expanded processing capabilities, broader geographic reach and meaningful contributions to both volume growth and profitability.

Factors Influencing FRD’s Results

Higher shipment volumes and stronger pricing were major drivers of the quarter’s performance. Fourth-quarter fiscal 2026 sales volume increased 13.5% year over year, with about half of the increase generated by existing facilities and the remainder coming from Century Metals. Rising average selling prices in both the flat-roll and tubular segments also supported revenue growth.

FRD benefited from its hedging program as well, recording a gain of approximately $0.9 million from hedging activities during the quarter and $3.4 million for the full fiscal year. Additionally, a $1.4 million favorable fair-value adjustment related to contingent consideration from the Century acquisition contributed to earnings before taxes.

Friedman Industries’ Guidance

Management expects first-quarter fiscal 2027 sales volumes to be comparable with fourth-quarter fiscal 2026 levels. FRD also anticipates sequential improvement in sales margins, supported by higher average selling prices during the quarter.

Taylor said Friedman Industries enters fiscal 2027 with strong operating momentum and expects the benefits of its growth strategy and Century integration to continue supporting profitable growth.

FRD’s Other Developments

A major development during fiscal 2026 was the acquisition of Century Metals & Supplies, completed on Aug. 29, 2025. The transaction expanded Friedman Industries’ presence in the Southeastern United States and Latin American markets while broadening its product offerings to include cold-rolled, coated and stainless steels, as well as non-ferrous materials such as aluminum, copper and brass. The acquisition carried a total consideration of $51.6 million and contributed roughly $61.5 million in sales and $2.2 million in net earnings during fiscal 2026.