How did Friedman Industries' revenue and expenses perform in Q3 2025?

Friedman Industries experienced a challenging third quarter in 2025 with a decline in revenue and profits compared to the previous year, despite an increase in sales backlog and efforts to improve sales volumes and margins in the fourth quarter.

1. **Revenue Performance**:
- **Q3 2025 Revenue**: The company reported net sales of approximately $94.1 million for Q3 2025, indicating a decrease from the previous year's sales of approximately $116 million.
- **Year-over-year comparison**: This represents an 18.9% decline in net sales compared to Q3 2024.
2. **Cost of Revenue and Operating Expenses**:
- The cost of materials sold decreased by 14.6% year-over-year to $78.5 million, while processing and warehousing expenses increased by 1.4% to $7.5 million.
- Selling, general, and administrative expenses decreased by 8.2% to $3.9 million compared to the previous year.
3. **Net Income and Loss**:
- Friedman Industries reported a net loss of $1.2 million for Q3 2025, a significant decline from the net income of $1.2 million in the same quarter of the previous year.
- Despite the challenges, the company saw an 11% increase in sales backlog year-over-year, indicating growing demand.
4. **Segmental Performance**:
- The flat-roll segment experienced a significant drop in sales and operating profits, with sales decreasing to $86.1 million and operating profits dropping to $1.3 million compared to the previous year.
- The tubular segment also faced a decline in sales prices and profits, with sales decreasing to $7.9 million and recording an operating loss of $0.2 million.
5. **Liquidity and Financial Discipline**:
- The company maintained a strong liquidity position with a working capital balance of approximately $107 million.
- Friedman Industries reduced debt by 9% during the quarter, showing improved financial discipline.

In conclusion, while Friedman Industries faced significant challenges in Q3 2025, including a decline in revenue and profits, the company demonstrated resilience with an increase in sales backlog and efforts to improve financial discipline and order activity for the upcoming quarters.