Sales Performance - Sales for the six months ended September 30, 2023, decreased by approximately $43.4 million to $257 million compared to the same period in 2022, despite an increase in tons sold from approximately 221,500 to 257,000 tons [71]. - Flat-roll segment sales for the 2023 period totaled approximately $245.7 million, down from $272.6 million in 2022, with average selling price per ton decreasing from approximately $1,367 to $1,011 [73]. - Tubular segment sales for the 2023 period were approximately $22.3 million, a decrease from $38.9 million in 2022, with tons sold dropping from approximately 21,000 to 16,000 tons [75]. - The Company expects sales volume for the third quarter of fiscal 2024 to be slightly lower than the second quarter volume due to seasonal impacts [94]. Profitability - Gross profit for the six months ended September 30, 2023, was approximately $22.2 million, with a gross profit margin of 8.3%, up from 7.5% in the prior year [71]. - Operating profits for the flat-roll segment increased to approximately $15.0 million in 2023 from $12.4 million in 2022, despite recognized losses on hedging activities [73]. - The tubular segment operated at a break-even level in the 2023 quarter, down from an operating profit of approximately $3.3 million in the 2022 quarter [85]. - The Company anticipates margin improvement during the third quarter and continuing into the fourth quarter due to increasing HRC prices, which have risen approximately $300 per ton [94]. Costs and Expenses - Selling, general and administrative costs decreased by approximately $0.2 million in the 2023 period compared to 2022, primarily due to one-time costs in the prior year [78]. - Income tax provision decreased from approximately $4.2 million in 2022 to approximately $3.7 million in 2023, with an effective tax rate of 24.9% for 2023 [79]. - The Company recognized a loss of approximately $0.4 million related to derivatives designated for hedge accounting for the six months ended September 30, 2023, while gaining approximately $4.8 million from derivatives not designated for hedge accounting [93]. Financial Position - The company's current ratio improved to 4.7 at September 30, 2023, compared to 3.2 at March 31, 2023, indicating better liquidity [89]. - The Company has a $150 million asset-based lending facility (ABL Facility) with a balance of approximately $54.4 million as of September 30, 2023, and an applicable interest rate of 7.5% [91]. - The Company's borrowing base calculation supported access to approximately $119.3 million under the ABL Facility as of September 30, 2023 [91]. - The Company had borrowings of approximately $34.2 million outstanding under the ABL Facility as of the filing date of the Form 10-Q [91]. - The Company believes its current cash position and cash flows from operations are adequate to fund expected cash requirements for the next 12 months [92]. Internal Controls - The Company has identified material weaknesses in internal control over financial reporting, which have not yet been remediated [101]. - The Company has engaged a consultant to assist with remediation efforts related to internal controls and has hired additional personnel to support these efforts [104]. - The Company expects the new ERP system to enhance the effectiveness of internal controls and reduce reliance on manual processes [104]. Future Outlook - The Company expects to continue monitoring and managing balance sheet components based on market conditions and operations [90].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FROM THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State or ot ...

Sales and Revenue - In fiscal year 2023, coil products accounted for 89% of total sales, up from 81% in fiscal year 2022, while tubular products decreased to 11% from 19%[17] - Sales to O'Neal Steel represented approximately 15% of total sales in fiscal year 2023, compared to 11% in fiscal year 2022[17] Operations and Facilities - The company operates five coil processing facilities and a tubular products division, with significant investments in new facilities, including a newly constructed facility in Sinton, Texas, which began operations in October 2022[12] - The tubular products segment operates two electric resistance welded pipe mills, licensed by the American Petroleum Institute, with a size range of 2 3/8" OD to 8 5/8" OD[15] - The company’s coil processing facilities are capable of cutting sheet and plate with thicknesses ranging from 16 gauge to 1" thick and widths from 36" to 96"[12] Employment and Workforce - As of March 31, 2023, the company employed 234 full-time employees, a significant increase from 98 full-time employees in the previous year[21] - The company’s sales force for coil products consisted of 24 personnel, while the tubular products division had 3 sales personnel as of March 31, 2023[18][19] Supply Chain and Competition - The company relies on a limited number of suppliers for its inventory, and the loss of any supplier could adversely affect its business[14][16] - The company is engaged in a highly competitive market, competing with other processors of hot-rolled steel coils and tubular manufacturers[20] Safety and Employee Policies - The company has established policies for employee safety and wellness, emphasizing the importance of a safe work environment and employee engagement in safety processes[23] Financial Reporting and Compliance - The financial statements for the fiscal year ended March 31, 2023, include consolidated balance sheets and statements of operations for both 2023 and 2022[56] - The company plans to file definitive copies of the proxy statement for the 2023 Annual Meeting of Shareholders with the SEC within 120 days after the end of the fiscal year[52] - The report includes a schedule for valuation and qualifying accounts as part of the financial statement schedules[56] - The report includes certifications pursuant to the Sarbanes-Oxley Act of 2002, signed by key executives[59] - The report outlines the consent of the independent auditor, Moss Adams LLP, confirming the accuracy of the financial statements[58] Corporate Governance - The company has incorporated various amendments to its Articles of Incorporation and Bylaws, reflecting changes made in previous years[58] - The company has made several amendments to its credit agreement, indicating ongoing financial management strategies[58] - The Annual Report to Shareholders for the fiscal year ended March 31, 2023, is included as a key exhibit[58] - The report lists the company's subsidiaries, providing insight into its organizational structure[58]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q COMMISSION FILE NUMBER 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FROM THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Commission File No. 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1121 Judson Road Suite 124, Longview, TX 75601 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (903) 758-3431 Securities registered pursuant ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FROM THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FROM THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State ...

Financial Performance - For the three months ended June 30, 2021, sales increased by $42,391,839 to a total of $63,000,000 compared to the same period in 2020, driven by a rise in average selling prices and tons sold, which increased from approximately 38,000 tons to 54,000 tons [63]. - Gross profit for the 2021 quarter was $17,329,935, up from $256,754 in the 2020 quarter, with gross profit as a percentage of sales increasing from approximately 1.1% to 26.3% [63]. - The coil product segment's sales for the 2021 quarter totaled $52,694,730, compared to $15,432,784 in the 2020 quarter, with the average selling price per ton rising from approximately $566 to $1,462 [64]. - The tubular product segment's sales for the 2021 quarter were $13,221,709, up from $8,091,816 in the 2020 quarter, with tons sold increasing from approximately 11,000 to 14,500 [66]. - The company recorded operating profits of approximately $13,256,000 for the coil segment and $2,600,000 for the tubular segment in the 2021 quarter, compared to operating losses in the previous year [64][67]. Operational Developments - The company expects to complete the construction of a new facility in Sinton, Texas, with an estimated total cost of $21 million, expected to commence operations in April 2022 [60]. - The Company expects strong margins for Q2 ending September 30, 2021, with an anticipated improvement in operating results compared to Q1 [79]. - Hot-rolled steel prices have increased approximately 10% since June 30, 2021, and the Company expects prices to continue rising through September 30, 2021 [79]. Financial Position - The company's current ratio was 1.6 at June 30, 2021, down from 2.7 at March 31, 2021, with working capital increasing to $50,869,746 [73]. - The company had borrowings of $23,381,289 outstanding under the ABL Facility as of the filing date, with full access to the facility [76]. Costs and Expenses - General, selling, and administrative costs increased by $1,958,400 in the 2021 quarter, primarily due to incentive compensation and professional fees [70]. - The company reported other income of $312,062, primarily from a $1,706,614 gain associated with the forgiveness of the Paycheck Protection Program loan [71]. Internal Controls and Compliance - The Company identified a material weakness in internal control over financial reporting related to the review of the annual income tax provision [88]. - The Chief Executive Officer and Chief Financial Officer concluded that the Company's internal control over financial reporting was not effective as of the end of the period covered by the report [84]. - The Company has not completed its remediation of the material weakness previously identified and disclosed in the Annual Report for the fiscal year ended March 31, 2021 [84]. - The Company plans to remediate the identified material weakness by investing in human capital, having hired an additional degreed accountant on May 24, 2021 [89]. - As of the filing date, the Company had 104 employees, with a finance team consisting of two degreed accountants [89]. - The Company believes that the additional investment in human capital will provide sufficient remediation in future periods [90]. - The Company will continue to monitor and evaluate the effectiveness of its disclosure controls and procedures [90]. Forward-Looking Statements - Actual results may differ materially from forward-looking statements due to various risks and uncertainties, including changes in demand and prices of products [82].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Commission File No. 1-7521 FRIEDMAN INDUSTRIES, INCORPORATED (Exact name of registrant as specified in its charter) Texas 74-1504405 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1121 Judson Road Suite 124, Longview, TX 75601 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (903) 758-3431 Securities registered pursuant ...