Friedman Industries 2026 Q1 Earnings Strong Performance as Net Income Surges 96%

Friedman Industries reported its fiscal 2026 Q1 earnings on August 8, 2025, showcasing robust growth in both revenue and profitability. The company's performance exceeded expectations with a significant increase in net income and earnings per share, reflecting operational improvements and stronger customer demand.

Friedman Industries delivered a strong beat in its first-quarter results, with revenue and net income rising sharply year-over-year. The company did not issue a forward-looking guidance adjustment, but it indicated slightly higher expected sales volume for Q2, while forecasting lower margins due to softer pricing conditions.

Revenue

Friedman Industries generated total revenue of $134.78 million in Q1 2026, representing a 17.7% year-over-year increase. The Flat-Roll segment was the primary contributor, delivering $124.07 million, followed by the Tubular segment with $10.71 million. The company did not report revenue from other segments, resulting in a total of $134.78 million in revenue for the quarter.

Earnings/Net Income

Earnings per share (EPS) surged 91.9% year-over-year to $0.71, while net income reached $5.03 million in Q1 2026, a 95.9% increase from $2.57 million in the prior-year period. The impressive growth in profitability underscores the company's ability to enhance margins and drive earnings expansion.

Price Action

The stock price of Friedman Industries edged up 1.98% during the latest trading day and 1.78% for the week, though it declined 7.66% month-to-date as of the report date.

Post Earnings Price Action Review

The strategy of buying Friedman Industries shares following a revenue decline quarter-over-quarter on the earnings report date and holding for 30 days has historically underperformed. Over the past three years, it yielded a return of -10.35%, significantly lagging the benchmark's 5.88%, for an excess return of -16.23%. The negative compound annual growth rate (CAGR) of -58.87% and a Sharpe ratio of -1.95 highlight the poor risk-adjusted returns and high volatility associated with the strategy, which had a maximum drawdown of 0.00%.

CEO Commentary

Michael J. Taylor, President and Chief Executive Officer, attributed the strong first-quarter results to improved margins and solid sales volume. He credited stronger customer demand and effective commercial efforts for increased facility utilization, expressing optimism about the company’s performance and its ability to capitalize on both short-term and long-term opportunities.

Guidance

The company anticipates second-quarter sales volume to be slightly higher than Q1 2026 but expects margin compression due to softened HRC prices at the end of Q1 and into Q2.

Additional News

On August 8, 2025, the Nigerian Federal Government announced a N100 billion solar initiative to reduce energy costs in public institutions, signaling a major investment in renewable energy infrastructure. Also, the University of Benin Teaching Hospital (UBTH) appointed its first female Chief Medical Director, marking a milestone in gender representation in leadership roles. Additionally, the NNPC took disciplinary action against a fuel attendant found under-dispensing fuel, suspending his manager in a move to reinforce accountability within the petroleum sector.