Friedman Industries 2026 Q2 Earnings 431.9% Net Income Surge

Friedman Industries (FRD) delivered a remarkable turnaround in its fiscal 2026 Q2 earnings, surpassing expectations with a 431.9% year-over-year net income increase. The company reported profitability with $0.32 EPS, reversing a $0.10 loss in the prior year, while guidance remained aligned with maintaining sales volume and incremental margin gains.

Revenue

Flat-roll operations accounted for the lion’s share at $143.34 million, while the tubular segment contributed $9.04 million. Combined, these segments generated $152.38 million in total revenue, a 42.7% leap from $106.76 million in 2025 Q2. The absence of revenue from the “Other” category underscored the company’s focus on core business lines.

Earnings/Net Income

Friedman Industries returned to profitability with a net income of $2.24 million in Q2 2026, a dramatic 431.9% improvement from a $675,000 net loss in Q2 2025. The earnings rebound, driven by improved capacity utilization and strategic acquisitions, marked a significant milestone for the company.

Price Action

The stock price of Friedman Industries edged up 2.76% on the latest trading day but dipped 1.88% for the week. Month-to-date, shares climbed 4.57%, reflecting mixed short-term investor sentiment.

Post-Earnings Price Action Review

A strategy of buying Friedman Industries shares upon its revenue increase announcement and holding for 30 days yielded robust returns over the past three years. Cumulative profits reached $1,236 on November 11, 2025, with a peak of $1,320 during the period. This performance highlights the strategy’s effectiveness in capturing short-term growth amid market volatility.

CEO Commentary

Michael J. Taylor, CEO, attributed the results to record sales volume and the successful integration of Century Metals & Supplies. The acquisition expanded product offerings and geographic reach, while operational synergies bolstered market share and capacity utilization.

Guidance

The company expects Q3 2026 sales to remain consistent with Q2 levels, with Century Metals’ acquisition volume offsetting holiday-related slowdowns. Margins are projected to improve modestly due to higher metals pricing, though no specific revenue or EPS targets were provided.

Additional News

1. M&A Activity: Friedman acquired Century Metals & Supplies in August 2025, enhancing its southeastern U.S. and Latin American market presence. The $111M-annual-revenue target expanded processing capabilities and product diversity.

2. C-Level Changes: Gaurav Chhibbar was appointed COO in July 2025, bringing expertise in operations and M&A to drive efficiency.

3. Dividend News: The company declared a $0.04-per-share quarterly dividend on November 14, 2025, marking its 215th consecutive payout since 1972.