Friedman Industries Q3 Sales Soar 78.6% as EPS Hits $0.43
Friedman Industries reported Q3 net earnings of $3.0 million, or $0.43 per share, versus a $1.2 million loss last year, as net sales climbed 78.6% to $167.9 million on 36% higher volume. Flat-roll sales rose 77.6% to $153 million with average prices up 24.9% to $1,016 per ton, while tubular sales jumped 88.4% to $14.9 million and operating income turned positive.
1. Q3 Financial Results
Friedman reported net earnings of $3.0 million ($0.43 per share) compared to a $1.2 million loss a year ago. Net sales surged 78.6% to $167.9 million, supported by 36% higher shipments and a $1.4 million gain on commodity hedges.
2. Segment Performance
Flat-roll segment sales jumped 77.6% to $153 million with average selling prices up 24.9% to $1,016 per ton, driving operating income to $7.3 million from $1.3 million. Tubular segment sales increased 88.4% to $14.9 million as tons sold climbed to 12,500 and ASPs rose 18.6% to $1,201 per ton, yielding $1.4 million in operating earnings.
3. Balance Sheet Expansion
Total assets expanded to $311.9 million following the Century acquisition, with liabilities of $169.6 million and shareholders’ equity of $142.2 million. The acquisition added new product lines and geographic reach while elevating leverage to support growth.
4. Management Outlook
Management anticipates Q4 sales volumes to remain at current levels with improved margins from higher selling prices. CEO Michael Taylor highlighted strong capacity utilization, disciplined execution and confidence in capturing near-term opportunities.