FRIEDMAN INDUSTRIES INC

Friedman Industries, Incorporated is a manufacturer and processor of metals operating in two reportable segments: flat-roll products and tubular products. The flat-roll segment operates processing facilities in Hickman, Arkansas; Decatur, Alabama; Miami, Florida; East Chicago, Indiana; Granite City, Illinois; and Sinton, Texas, along with a distribution facility in Orlando, Florida. The tubular segment consists of the Texas Tubular Products division in Lone Star, Texas, which operates two electric resistance welded pipe mills licensed by the American Petroleum Institute to manufacture line pipe and oil country pipe. The company sells its products on a wholesale, rapid-delivery basis in a highly-competitive, non-seasonal business, competing with other metal service centers, tubular manufacturers, metals distributors, and brokers. The company believes its ability to compete depends on offering products at competitive prices and meeting customer specifications on a rapid-delivery basis.

The company's principal customers for flat-roll products are metals distributors and manufacturers of products such as metal buildings, railcars, heavy equipment, tanks and containers, trailers, component parts, and other fabricated metal products. Sales of flat-roll products to O'Neal Steel accounted for approximately 15% and 16% of the company's total sales for fiscal years 2026 and 2025, respectively. No other individual flat-roll products customer accounted for 10% or more of total sales in either year. For tubular products, the company sells nationally to approximately 80 customers, primarily steel and pipe distributors, and no individual tubular customer accounted for 10% or more of total sales in either fiscal year.

The company generates revenue primarily from sales of company-owned inventory, with the vast majority of flat-roll segment revenue coming from such sales, though the segment also generates revenue from processing or storage of customer-owned material on a fee basis. All of the tubular segment's revenue is generated from sales of company-owned inventory. The flat-roll segment purchases its inventory from a limited number of suppliers, and the tubular segment similarly purchases from a limited number of suppliers, with the loss of any supplier potentially having a material adverse effect on the business.

The flat-roll products segment accounted for 92% of total sales in fiscal 2026 and 91% in fiscal 2025, while tubular products accounted for 8% in fiscal 2026 and 9% in fiscal 2025. The flat-roll facilities are capable of cutting sheet and plate with thicknesses ranging from 30 gauge to 1 inch thick in widths from 11 inches to 96 inches, and can produce slit coil with thickness ranging from 32 gauge to 10 gauge in widths from 1/2 inch to 60 inches. The Granite City facility also operates a fiber laser that further processes flat-roll sheet and plate into customer parts. The tubular segment's pipe mills have a combined outside diameter size range of 2 3/8 inches OD to 8 5/8 inches OD and manufacture pipe for structural purposes meeting other recognized industry standards.

The company's flat-roll processing facilities include temper mills and cut-to-length lines at Hickman, Granite City, and East Chicago; stretcher leveler cut-to-length lines at Decatur and Sinton; and a corrective leveling cut-to-length line and a coil slitting line at Miami. The company sells flat-roll products and services to approximately 1,160 customers located primarily in the midwestern, southwestern, and southeastern regions of the United States.

During fiscal 2026, the company had 381 full-time employees as of March 31, 2026, all based in the United States. The company's executive officers include Michael J. Taylor as President and Chief Executive Officer since September 2019 and Chairman of the Board since June 2017; Alex LaRue as Chief Financial Officer – Secretary and Treasurer since March 2018; and Gaurav Chhibbar as Chief Operating Officer since July 2025. The company's common stock trades on the Nasdaq Global Select Market under the symbol FRD, and as of April 24, 2026, there were approximately 145 shareholders of record. The aggregate market value of common stock held by non-affiliates as of September 30, 2025 was approximately $146.7 million ¹, and the number of shares outstanding at June 11, 2026 was 7,107,491 ².

The company's financial performance for fiscal 2026 is discussed in the Management's Discussion and Analysis section of the Annual Report to Shareholders, which is incorporated by reference. The company's consolidated financial statements include balance sheets as of March 31, 2026 and 2025, and statements of operations, stockholders' equity, and cash flows for the years then ended. The company is not aware of any unmitigated cybersecurity risk or any prior incident that may have materially affected data integrity, confidentiality, operations, business strategy, or financial reporting.

The company's flat-roll segment continues to expand its processing capabilities, with the Granite City facility operating a fiber laser that further processes flat-roll sheet and plate into customer parts, representing a growth vector in value-added processing. The company's network of six flat-roll processing facilities and one distribution facility positions it to serve customers in the midwestern, southwestern, and southeastern United States, with the ability to ship from the facility offering the desired product based on customer location, freight conditions, and timely fulfillment.

The tubular segment's two API-licensed pipe mills at the Texas Tubular Products division in Lone Star, Texas, with a combined outside diameter size range of 2 3/8 inches OD to 8 5/8 inches OD, represent a growth vector in energy-related and structural pipe markets. The mills are licensed to manufacture line pipe and oil country pipe, as well as pipe for structural purposes meeting other recognized industry standards, allowing the company to serve both energy and industrial end markets.

The filing does not discuss margin trajectory, cost structure evolution, or efficiency targets.

The company's operational posture includes 381 full-time employees as of March 31, 2026, all based in the United States, with a focus on safety and wellness through established policies, work procedures, initial trainings, and ongoing regular meetings. The company's cybersecurity program is being aligned with the NIST Cybersecurity Framework to ensure comprehensive controls and oversight, and disaster recovery testing is being conducted and documented as part of continuous improvement.

The filing does not discuss R&D spending levels, capital expenditure plans, share repurchase authorizations, or dividend policy with specific figures.

The company faces structural headwinds from its reliance on a limited number of suppliers for both the flat-roll and tubular segments, with the loss of any supplier potentially having a material adverse effect on the business. The company operates in a highly-competitive, non-seasonal business where its ability to compete depends on offering products at competitive prices and on a rapid-delivery basis, which exposes it to pricing pressure and market fluctuations.

The company's flat-roll segment purchases inventory from a limited number of suppliers, and the tubular segment similarly purchases from a limited number of suppliers, creating concentration risk. The company's business is non-seasonal but highly competitive, with competition from other metal service centers, tubular manufacturers, metals distributors, and brokers.

The company faces material risks from its reliance on a limited number of suppliers for both the flat-roll and tubular segments, where the loss of any supplier could have a material adverse effect on the business. The company operates in a highly-competitive, non-seasonal business where its ability to compete depends on offering products at competitive prices and on a rapid-delivery basis, exposing it to pricing pressure from other metal service centers, tubular manufacturers, metals distributors, and brokers. Customer concentration risk exists as sales to O'Neal Steel accounted for approximately 15% and 16% of total sales in fiscal 2026 and 2025, respectively, though no other individual customer accounted for 10% or more. The company's flat-roll segment purchases inventory from a limited number of suppliers, and the tubular segment similarly purchases from a limited number of suppliers, creating supply chain concentration risk. The company's business is subject to market fluctuations in steel and pipe prices, which could impact margins and inventory valuations.

Management's message emphasizes the company's position as a manufacturer and processor of metals operating in two reportable segments: flat-roll products and tubular products. The company's strategic priorities include maintaining its network of processing facilities across six states, continuing to serve approximately 1,160 flat-roll customers and approximately 80 tubular customers, and leveraging its API-licensed pipe mills to serve energy and structural markets. Management highlights the appointment of Gaurav Chhibbar as Chief Operating Officer in July 2025 as a key organizational development.