Friedman Industries(FRD) - 2025 Q4 - Annual Results

Financial Performance - For the quarter ended March 31, 2025, the company recorded net earnings of approximately $5.3 million ($0.76 diluted earnings per share) on sales of approximately $129.2 million, compared to net earnings of approximately $5.0 million ($0.71 diluted earnings per share) on net sales of approximately $132.2 million for the same quarter in 2024[3] - For fiscal year 2025, the company recorded net earnings of approximately $6.1 million ($0.87 diluted earnings per share) on sales of approximately $444.6 million, a decrease from net earnings of approximately $17.3 million ($2.39 diluted earnings per share) on sales of approximately $516.3 million in fiscal 2024[4] Sales Volume and Segments - The company achieved a 28% increase in sales volume over the preceding third quarter and a 5% increase over the prior year fourth quarter, with sales volume reaching approximately 166,500 tons for the 2025 quarter[2][5] - The flat-roll segment sales for the 2025 quarter totaled approximately $117.7 million, with a sales volume of approximately 139,000 tons from inventory and 16,500 tons of toll processing[8] - The tubular segment sales for the 2025 quarter totaled approximately $11.5 million, with tons sold increasing from approximately 9,500 tons in the 2024 quarter to approximately 11,000 tons in the 2025 quarter[9] Hedging and Financial Position - The company recognized a total hedging gain of approximately $7.6 million for fiscal 2025, with a gain on hedging activities of approximately $1.8 million for the 2025 quarter[10] - The working capital balance at year-end was $128.1 million, reflecting a strong financial position[5] - The company maintains a strong financial position and is poised to capitalize on both short-term and long-term opportunities in the industry[12] Future Outlook - The company expects sales volume for the first quarter of fiscal 2026 to be slightly lower than the fourth quarter of fiscal 2025 due to equipment downtime, but anticipates improved margins[11] - The newest facility in Sinton, Texas, reached full capacity levels during the year and contributed the highest profit margin among all facilities[2]