Friedman Industries, Incorporated Announces Third Quarter Results

Core Viewpoint - Friedman Industries reported challenging conditions in the third fiscal quarter, with margins affected by pricing pressure and political uncertainty, but noted a surge in sales order activity post-presidential election, leading to a 11% year-over-year increase in sales backlog volume [1][2][4]. Financial Performance - For the quarter ended December 31, 2024, the company recorded a net loss of approximately $1.2 million ($0.17 diluted loss per share) on sales of approximately $94.1 million, compared to a net earnings of approximately $1.2 million ($0.16 diluted earnings per share) on sales of approximately $116.0 million for the same quarter in 2023 [2][5]. - The total net sales for the nine months ended December 31, 2024, were approximately $315.4 million, down from $384.0 million in the same period of 2023 [3]. Segment Performance - Flat-roll product segment sales for the 2024 quarter totaled approximately $86.1 million, down from approximately $106.4 million in the 2023 quarter, with a decrease in average selling price per ton from approximately $960 to $813 [7]. - Tubular product segment sales for the 2024 quarter were approximately $7.9 million, compared to approximately $9.5 million in the 2023 quarter, with the average selling price per ton decreasing from approximately $1,164 to $1,013 [8]. Operational Metrics - The company reported a working capital balance of approximately $107 million and operating cash flow of approximately $2.7 million during the quarter [4]. - Debt was reduced by 9% during the quarter, indicating improved financial management [4]. Outlook - The company expects fourth quarter sales volume for fiscal 2025 to be higher than the third quarter due to stronger order activity, with expectations of improved sales margins compared to the third quarter [11]. - Industry participants anticipate further price increases in the second half of the fourth quarter, which may positively impact the company's financial performance [11]. Company Overview - Friedman Industries, headquartered in Longview, Texas, is a manufacturer and processor of steel products, operating in two segments: flat-roll products and tubular products [12].