It's like a regional version of Reliance Steel & Aluminum (RS) that processes steel coils into custom shapes and also manufactures various steel pipes for industrial customers.

• Steel Coil Processing Services: Friedman Industries converts steel coils into flat sheet and plate steel tailored to customer specifications, and also processes customer-owned coils for a fee.
• Steel Coils: The company engages in the resale of steel coils to customers.
• Pipes: Friedman Industries manufactures various types of pipes, including line, oil country, and pipes for structural applications.

Friedman Industries (FRD) sells primarily to other companies. Based on the provided description, the specific names of its customer companies are not disclosed. However, its major customers fall into the following categories:

• Steel distributors
• Pipe distributors
• Companies manufacturing steel products (such as steel buildings, railroad cars, barges, tanks and containers, trailers, component parts, and other fabricated steel products).

Michael J. Taylor, Chairman of the Board, President and Chief Executive Officer

Mr. Taylor began his career with Cargill, Inc. in the Metals trading business, where he spent 33 years. During his time at Cargill, he held various positions in metals trading and steel service centers in locations such as Minneapolis, New York City, Chicago, Sao Paulo, Brazil, and Houston, Texas. He became president of Cargill Metals Supply Chain in 2002 and retired from Cargill in 2014. Mr. Taylor joined Friedman Industries' board as a director in 2016, was named Chairman of the Board in 2017, and became President and CEO in March 2019. He also served on the board of the Metals Service Center Institute (MSCI) on two occasions and held roles as MSCI Inaugural Health and Safety Chairperson, Flat Roll Product Division Chair for MSCI, and a member of the Committee of the Flat Roll Council. He graduated with a degree in business from Linfield University in 1981.

Alex LaRue, Chief Financial Officer, Secretary and Treasurer

Alex LaRue was appointed Chief Financial Officer, Secretary, and Treasurer of Friedman Industries in March 2018. He initially joined the company in 2011 as Controller of its Texas Tubular Products division. Prior to his current role, Mr. LaRue also served as Vice President Secretary and Treasurer and Assistant Vice President Secretary and Treasurer within Friedman Industries. Before joining Friedman, he worked in public accounting, specializing in financial statement audits and reviews. Mr. LaRue holds a Bachelor of Business Administration in accounting from Baylor University and is a licensed certified public accountant in Texas.

Gaurav Chhibbar, Chief Operating Officer

Gaurav Chhibbar was appointed Chief Operating Officer of Friedman Industries in July 2025, bringing over 15 years of experience in business transformations and M&A strategy within the Metals value chain. His previous experience includes working as a Principal at the Boston Consulting Group and holding roles with Cargill Metals in Singapore and the U.S. At Friedman Industries, Mr. Chhibbar is responsible for commercial, operations, and strategic market expansion. He earned his Master's in Business Administration from The University of Chicago Booth School of Business with a major in Analytic Finance and Strategy, and also holds degrees in International Business from the Indian Institute of Foreign Trade and Engineering from Panjab University.

Jonathan Holcomb, Vice President of Sales and Purchasing

Jonathan Holcomb was appointed VP of Sales and Purchasing in 2016. He started his career at Friedman Industries in 1997 as a sales associate and has been actively involved in sales and purchasing functions for the company since 1999. Mr. Holcomb completed his bachelor's degree from Stephen F. Austin and earned his MBA at LeTourneau University – Longview, TX in 1999.

Kimberly Thomas, Director of Human Resources

Kimberly Thomas joined Friedman Industries in April 2024 as the HR Director. She has over 20 years of experience in Human Resources, spanning the IT, Telecommunications, and Oil & Gas industries, including more than 10 years with Hewlett Packard.

The key risks to Friedman Industries' business include the volatility of steel prices, its dependence on cyclical industrial end markets, and its increasing debt level.

1. Commodity Price Volatility: Friedman Industries is significantly exposed to fluctuations in steel prices, particularly hot-rolled coil (HRC), which directly impacts its raw material costs and the selling prices of its products. The company's financial results can swing considerably based on these price movements; for instance, its flat-roll segment operating profits experienced a substantial year-over-year drop in the third fiscal quarter of 2025, partly due to pricing pressures. Conversely, higher average selling prices have been noted as a key driver of improved performance in other periods. Friedman Industries utilizes derivatives to manage this commodity price risk.

2. Dependence on Cyclical End Markets: The company's customer base is concentrated in industries such as steel building manufacturing, railroad car production, barges, tanks, containers, trailers, and other fabricated steel products, as well as the oil and gas sector for its tubular products. These industries are inherently cyclical and sensitive to overall economic conditions. Downturns or reduced activity in construction, energy, or general manufacturing sectors can lead to decreased demand for Friedman's steel processing and pipe manufacturing services, directly impacting its sales volume and profitability.

3. Financial Health and Debt Level: Friedman Industries has seen its net debt-to-equity ratio increase significantly over the past five years, reaching 64.8% from 2.4%. This elevated debt level is considered high, and its operating cash flow has been negative, indicating that its debt is not well covered. While interest payments on its debt are currently covered by earnings before interest and taxes (EBIT), the rising debt and negative operating cash flow present a financial risk that could constrain the company's operational flexibility and financial stability, especially during periods of market weakness or higher interest rates.

Friedman Industries, Inc. (FRD) operates within the steel processing and pipe manufacturing sectors, primarily serving markets in the midwestern, southwestern, and southeastern regions of the United States. The addressable markets for its main products and services in the U.S. are as follows:

Coil Segment (Steel Processing and Distribution)

• U.S. Flat Steel Market: The U.S. flat steel market was valued at USD 82.04 billion in 2024 and is projected to reach USD 157.22 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.09% from 2025 to 2035. Another report indicated the U.S. flat steel market size was USD 77.62 billion in 2022 and is projected to grow at a CAGR of 4.6% during the forecast period.
• U.S. Hot Rolled Coil Steel Market: This market was valued at USD 26.50 billion in 2024 and is projected to reach USD 42.65 billion by 2034, with a CAGR of 4.9% from 2025 to 2034.
• U.S. Plate Steel Market: The U.S. Extra Thick Steel Plate Market is projected to reach USD 43.9 billion in 2024. The USA Steel Plate Market accounts for nearly 14% of global steel plate consumption.
• U.S. Sheet Metal Market: The demand for sheet metal in the USA is projected to grow from USD 68.5 billion in 2025 to approximately USD 92.1 billion by 2035, at a CAGR of 3.0%.
• U.S. Steel Processing Market: The U.S. steel processing market captured the largest revenue share within North America in 2025. The global steel processing market size was valued at USD 749.45 million in 2024.

Tubular Segment (Pipe Manufacturing and Processing)

• U.S. Oil Country Tubular Goods (OCTG) Market: The U.S. OCTG market is predicted to reach an estimated value of USD 22.94 billion by 2032. In 2024, the global OCTG market was valued at USD 22.66 billion and is poised to grow to USD 39.95 billion by 2033, with a CAGR of 6.5% during the forecast period (2026–2033). North America is the largest market for OCTG. The United States holds one of the world's largest OCTG markets, contributing nearly 34% of global consumption in 2025 with usage surpassing 3.1 million tons annually.
• U.S. Line Pipe Market: The line pipe market in the United States is expected to experience an upward consumption trend with a forecasted CAGR of +3.0% in value from 2024 to 2035, projecting a market value of $840 million by the end of 2035. North America accounts for approximately 40% of the global market share, with the United States being the largest contributor.
• U.S. Steel Pipes and Tubes Market: The U.S. steel pipes and tubes market was valued at USD 19,539.1 million in 2025 and is expected to reach USD 31,447.0 million by 2033, with a CAGR of 7% from 2026 to 2033. Another source estimated the market size at USD 23.26 billion in 2024, anticipated to reach USD 33.49 billion by 2035.

Friedman Industries (FRD) is poised for future revenue growth over the next 2-3 years, driven by a combination of strategic acquisitions, increased sales volumes, favorable pricing, and operational efficiencies. The company's expansion efforts and disciplined execution are expected to contribute significantly to its financial performance.

Here are the key drivers of future revenue growth for Friedman Industries:

1. Strategic Acquisitions and Capacity Expansion: The acquisition of Century Metals & Supplies on August 29, 2025, is a significant growth driver, broadening Friedman Industries' product mix to include coated, stainless, and non-ferrous metals, while also expanding its geographical presence to Florida and Latin America. This acquisition, along with operations at facilities like the Sinton processing facility, is enhancing the company's flat-roll footprint and overall capacity.
2. Increased Sales Volumes: Friedman Industries has demonstrated strong growth in sales volumes, with a 36% year-over-year increase in the third quarter of fiscal 2026. This increase is attributed to improved capacity utilization and the contribution from recent acquisitions. Management expects sales volumes to remain generally consistent in the upcoming quarter.
3. Higher Average Selling Prices: The company has experienced an increase in average selling prices, particularly for its flat-roll products, which rose from approximately $813 per ton in Q4 2024 to about $1,016 per ton in Q4 2025. Management anticipates a sequential improvement in sales margins driven by these increasing average selling prices.
4. Operational Improvements and Disciplined Commercial Execution: Friedman Industries' management has highlighted improved capacity utilization and disciplined commercial execution as key factors contributing to strong year-over-year growth in sales and volumes. These operational efficiencies support higher throughput and overall profitability.
5. Diversification of Product Mix: Through the Century Metals & Supplies acquisition, Friedman Industries has broadened its product offerings beyond traditional steel products to include coated, stainless, and non-ferrous metals such as aluminum and brass. This diversification allows the company to cater to a wider range of customer needs and potentially tap into new market segments.

Share Repurchases

• Friedman Industries made cash payments for share repurchases of $9,000 and $134,000 as noted in their Q2 2026 10-Q filing.

Share Issuance

• Friedman Industries registered 550,000 shares for issuance under the 2025 Long-Term Incentive Plan, which was approved by stockholders on September 18, 2025.

Inbound Investments

• Friedman Industries amended its credit facility, increasing its borrowing capacity from $125 million to $140 million. This facility matures on August 29, 2030.

Outbound Investments

• On August 29, 2025, Friedman Industries acquired certain assets and liabilities of Century Metals & Supplies for approximately $52.7 million.
• The acquisition consideration included approximately $45.6 million in cash, a five-year seller's note valued at about $3.5 million, and contingent consideration with a fair value of roughly $3.6 million.
• This strategic acquisition expanded FRD's presence in the southeastern United States and Latin America, while also broadening its product offerings.

Capital Expenditures

• For the fiscal year ended March 31, 2024, capital expenditures were approximately $1.018 million.
• For the fiscal year ended March 31, 2025, capital expenditures were approximately $4.0 million.
• The focus of capital expenditures included investments in the new Sinton, Texas facility and an upgrade to the Decatur, Alabama processing line, aimed at increasing sales volume.