Friedman Industries, Incorporated Announces Fourth Quarter and Fiscal Year 2025 Results

Core Insights - Friedman Industries reported improved margins and a record sales volume for the fourth quarter of fiscal 2025, with a 28% increase in sales volume compared to the previous quarter and a 5% increase year-over-year [3][4] - The company achieved net earnings of approximately $6.1 million for fiscal 2025, despite challenging steel price trends and economic factors [3][5] - The company's sales volume remained stable at approximately 500,000 tons for the year, reflecting resilience amid various challenges [3][5] Quarterly Performance - For the quarter ended March 31, 2025, net earnings were 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 sales of approximately $132.2 million for the same quarter in 2024 [4][7] - Sales volume increased from approximately 159,000 tons in the 2024 quarter to approximately 166,500 tons in the 2025 quarter [4][7] Annual Performance - For the fiscal year ended March 31, 2025, net earnings were approximately $6.1 million ($0.87 diluted earnings per share) on sales of approximately $444.6 million, down from net earnings of approximately $17.3 million ($2.39 diluted earnings per share) on sales of approximately $516.3 million for fiscal 2024 [5][7] - The working capital balance at year-end was $128.1 million [7] Segment Operations - 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 [10] - 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 [11] Hedging Activities - The company recognized a gain on hedging activities of approximately $1.8 million for the 2025 quarter and a total hedging gain of approximately $7.6 million for fiscal 2025 [12] Outlook - For the first quarter of fiscal 2026, the company expects sales volume to be slightly lower than the fourth quarter of fiscal 2025 due to equipment downtime, but anticipates improved margins [13]