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Here are 1-2 brief analogies for Friedman Industries:

• Like a specialized Reliance Steel & Aluminum that also manufactures steel pipe.
• Nucor, but highly focused on processing steel coils and making steel pipe.

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• Hot-rolled Coil Processing: Friedman Industries acquires hot-rolled steel coils and processes them to specific customer requirements, providing services like temper passing and cut-to-length operations.
• Steel Pipe and Tube Distribution: The company distributes new and used steel pipe and tubing products primarily for the oil and gas industry, as well as for structural and piling applications.

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Friedman Industries (FRD) primarily operates as a business-to-business (B2B) company, specializing in steel processing and distribution. The company does not publicly disclose the names of its individual major customers. According to its SEC filings (e.g., 10-K reports), no single customer accounted for 10% or more of the company's net sales in recent fiscal years, indicating a diversified customer base rather than reliance on a few large entities.

Instead, Friedman Industries serves a broad range of companies across various industries. Its major customer categories include:

• Steel Service Centers: These companies purchase steel in bulk from Friedman Industries, then process and distribute it to a wide array of end-users, acting as an intermediary in the steel supply chain.
• Various Manufacturers: Friedman Industries supplies steel products (such as hot-rolled steel coils, sheets, plates, and pipe) to manufacturers across diverse sectors. These include:
  • Farm and ranch equipment manufacturers
  • Steel fabricators
  • Manufacturers of railroad cars, barges, heavy equipment, agricultural implements, and material handling systems
  • Companies producing construction-related products
• Energy Industry Companies: Especially for its pipe manufacturing and steel plate products, Friedman Industries serves the energy sector, including companies involved in:
  • Oil & gas exploration and production (e.g., for pipelines and structural applications)
  • Solar energy projects
  • Wind energy projects
  • Utility infrastructure development

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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. He held various positions within their metals trading and steel service center business, with postings in Minneapolis, New York City, Chicago, Sao Paulo, Brazil, and Houston, Texas. Mr. Taylor became president of Cargill Metals Supply Chain in 2002 and retired from Cargill in that position in 2014. He joined Friedman Industries' board as a director in 2016, became Chairman of the Board in 2017, and was appointed President and CEO in March 2019. He has also served on the board of the Metals Service Center Institute on two occasions, and as its Inaugural Health and Safety Chairperson and Flat Roll Product Division Chair.

Alex LaRue, Chief Financial Officer, Secretary and Treasurer

Mr. LaRue was appointed Chief Financial Officer, Secretary and Treasurer in March 2018. He joined Friedman Industries in 2011 as Controller of the company's Texas Tubular Products division. Prior to his current role, he also served as Vice President Secretary and Treasurer and Assistant Vice President Secretary and Treasurer at Friedman Industries. Before joining Friedman, Mr. LaRue worked in public accounting, specializing in financial statement audits and reviews. He is a licensed Certified Public Accountant in Texas and earned his Bachelors of Business Administration from Baylor University with a major in accounting.

Gaurav Chhibbar, Chief Operating Officer

Mr. Chhibbar was appointed Chief Operating Officer of Friedman Industries in July 2025. He brings over 15 years of experience in leading business transformations and M&A strategy across the Metals value chain. Previously, Mr. Chhibbar worked as a Principal at the Boston Consulting Group and held various roles with Cargill Metals in Singapore and the U.S. At Friedman, he oversees commercial, operations, and strategic market expansion. He holds an MBA from The University of Chicago Booth School of Business and degrees in International Business and Engineering from the Indian Institute of Foreign Trade and Panjab University, respectively.

Paul Rottmann, Vice President Operations

Mr. Rottmann was appointed Vice President Operations in 2022, joining Friedman Industries following the company's acquisition of Plateplus, Inc. assets. During his time at Plateplus, he served as Senior Vice President Sales & Operations from 2021 to 2022 and Vice President Operations from 2018 to 2021. Prior to Plateplus, Mr. Rottmann held various operations leadership roles for Cargill, Inc., including serving as Plant Manager from 2007 to 2017.

Brian Hatlevig, Commercial Director

Mr. Hatlevig joined Friedman Industries as Commercial Director in 2020. Before coming to Friedman, he was a senior vice president at Plateplus from 2017 to 2020. Mr. Hatlevig also spent 21 years at Cargill, where he was part of the senior leadership team and led various commercial activities for Cargill Metals in North America, including trading, sales, risk management, purchasing, supply chain, and strategic pricing. From 2006 to 2010, he was based in Geneva, Switzerland, responsible for Cargill's ferrous products trading activities in Europe, Russia, the Middle East, and Africa.

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1. Industry Cyclicality and Raw Material Price Volatility: Friedman Industries is significantly exposed to the cyclical nature of the steel industry and the volatility of raw material prices, particularly hot-rolled coil (HRC) pricing. This can lead to pressure on margins and working capital, even though the company uses hedging to manage some price risk.
2. Earnings Instability: There are concerns regarding Friedman Industries' recent earnings performance, with indications of receding earnings in the medium term. If these conditions do not improve, the company's share price could be at risk of declining.
3. Competition and Alternative Materials: The company faces risks from increased competition from alternative materials, as well as challenges related to innovation, new technologies, products, and evolving customer requirements. These factors could cause future actual results and trends to differ materially from expectations.

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Friedman Industries (FRD) operates in two main product segments: Flat-Roll Products and Tubular Products. The company manufactures and processes steel products within the United States.

Addressable Market Sizes for Friedman Industries' Main Products:

• Flat-Roll Products (Hot-Rolled Coil Steel): This segment involves processing hot-rolled steel coils into sheets and plates, along with providing temper pass, cut-to-length, and toll processing services.

  • The U.S. hot rolled coil steel market was valued at approximately USD 26.50 billion in 2024 and is projected to reach USD 42.65 billion by 2034, growing at a compound annual growth rate (CAGR) of 4.9% from 2025 to 2034.
  • Globally, the hot rolled coil steel market size was estimated at USD 355.22 billion in 2024 and is projected to reach USD 435.65 billion by 2030, with a CAGR of 5.7% from 2025 to 2030.

• Tubular Products (Steel Pipes and Tubes): This segment manufactures Electric Resistance Welded (ERW) pipe, including line pipe, oil country pipe, and pipe for structural applications, adhering to American Petroleum Institute (API) standards.

  • The global steel tubes market is valued at USD 99.26 billion in 2025 and is projected to reach USD 122.19 billion by 2035, exhibiting a CAGR of 2.1%.
  • Specifically, the global carbon steel pipe market size was valued at USD 38.7 billion in 2024 and is projected to grow to USD 59.3 billion by 2033, with a CAGR of 4.8%.
  • In the U.S., the mechanical tube & pipe market was valued at USD 2.44 billion in 2023 and is projected to increase to USD 2.99 billion by 2032, with a CAGR of 2.3%. Carbon steel line pipe and oil country tubular goods (OCTG) constitute the largest segment of the Metal Pipe & Tube Manufacturing industry in the United States.

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Friedman Industries (FRD) is expected to drive future revenue growth over the next two to three years through several key initiatives and market conditions:

1. Strategic Acquisition and Market Expansion: The acquisition of Century Metals and Supplies, Inc. in September 2025 is a significant driver. This move expands Friedman Industries' presence into the southeastern U.S. and Latin American markets. It also broadens the company's product portfolio to include cold-rolled, coated, and stainless steels, as well as non-ferrous materials such as aluminum, copper, and brass. The acquisition further enhances core hot-rolled steel business and adds coil slitting capabilities, providing strategic access to the growing residential and corrosion-resistant markets. Century Metals has historically contributed approximately $111.0 million in average annual revenues, and the acquisition is anticipated to be immediately accretive.
2. Recovery and Favorable Steel Price Trends: A recovery in steel prices is a positive influence on revenue. The company observed a 35% increase in steel prices during the fourth quarter of fiscal year 2025 (ended March 31, 2025), which contributed to improved margins and revenue. Continued favorable trends in steel prices are expected to boost future revenue.
3. Increased Sales Volume and Facility Utilization: Friedman Industries has demonstrated recent sales volume growth, reporting a record quarter for sales volume in Q4 fiscal year 2025 and a 12% year-over-year increase in tons sold in Q1 fiscal year 2026. The company is focused on increasing utilization rates across its facilities, including its newest facility in Sinton, Texas, which reached full capacity and contributed the highest profit margin among all facilities in fiscal year 2025.
4. Expanded Product Portfolio and Processing Capabilities: Beyond its traditional flat-roll and tubular products, the integration of Century Metals' offerings significantly diversifies Friedman Industries' product mix. This expansion to include cold-rolled, coated, stainless steels, and various non-ferrous materials, along with new coil slitting capabilities, allows the company to cater to a wider customer base and potentially increase sales per customer.

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Share Repurchases

• On December 13, 2023, Friedman Industries repurchased 400,041 shares of its common stock from Metal One Corporation for approximately $5.1 million.
• Concurrently, the Board of Directors authorized a new share repurchase program to acquire up to 1,045,774 shares, representing 15% of its outstanding share capital, through December 13, 2026.

Share Issuance

• In April 2022, Friedman Industries issued 516,041 shares as part of the consideration for the acquisition of the East Chicago and Granite City facilities.
• The number of outstanding shares decreased from 7,375,588 on July 14, 2023, to 6,965,880 as of October 2025.

Outbound Investments

• In April 2022, Friedman Industries acquired the East Chicago and Granite City facilities from a subsidiary of Mitsubishi Corp for $63.8 million in cash and 516,041 shares.
• In September 2025, the company acquired Century Metals & Supplies, Inc. in an all-cash deal, with the acquired company having average revenues of $111 million over the preceding three years.

Capital Expenditures

• For the fiscal year ended March 31, 2025, capital expenditures amounted to -$4 million USD.
• Over the last 12 months (prior to November 2025), capital expenditures totaled -$5.73 million.
• Around February 2021, a significant project at the Decatur, Alabama facility, estimated to cost $7.2 million, involved the purchase and installation of a stretcher leveler coil processing line to enhance capabilities.