Executive Summary

Q4 FY2025 delivered a return to profitability on stronger steel pricing and record sales volume: revenue $129.2M, diluted EPS $0.76, net income $5.3M; sales volume rose 28% q/q and 5% y/y as HRC prices increased ~35%, expanding margins after three tough quarters .
Margin recovery was supported by $1.8M hedging gains and operational strength at the Sinton, TX facility (the highest-margin site); flat-roll remained the core driver with $117.7M sales and 139k tons from inventory .
Outlook guides Q1 FY2026 sales volume “slightly lower” than Q4 due to planned equipment downtime, but margins expected to improve; Board declared a $0.04 quarterly dividend payable Aug 8, 2025, extending a 214-quarter streak .
Consensus estimates (S&P Global) were not available for EPS/revenue in Q4; coverage appears thin. Actuals included for context; future estimate revisions will likely reflect the stronger pricing backdrop and margin trajectory [GetEstimates]*.
Near-term stock narrative drivers: record volume, pricing-led margin rebound, hedging gains, and improving mix; watch Q1 margin follow-through amid slightly lower volumes and equipment downtime .

What Went Well and What Went Wrong

What Went Well

Record quarterly sales volume with pricing tailwinds: “Steel prices increased 35% during the fourth quarter enabling margin improvement after a difficult margin environment for the first three quarters” — CEO Michael J. Taylor .
Hedging supported consistency: Q4 hedging gain ~$1.8M; FY gain ~$7.6M, mitigating price volatility and aiding profitability .
Operational execution and facility mix: Sinton reached full capacity and “contributed the highest profit margin among all our facilities” — CEO Taylor .

What Went Wrong

Flat-roll operating profit down y/y despite Q4 improvement: segment operating income ~$$7.1M vs ~$9.6M in Q4 FY2024; average selling price declined to ~$836/ton from ~$993/ton y/y .
Tubular segment pricing pressure persisted: average selling price fell to ~$1,044/ton from ~$1,216/ton y/y; operating income ~$0.6M vs ~$0.8M in prior-year quarter .
FY context remained soft despite Q4 strength: FY2025 net earnings $6.1M vs $17.3M in FY2024; sales $444.6M vs $516.3M, highlighting the multi-quarter margin pressure and demand headwinds earlier in the year .

Financial Results

Consolidated P&L vs Prior Quarters

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD Millions)	$106.8	$94.1	$129.2
Diluted EPS ($USD)	$(0.10)	$(0.17)	$0.76
EBIT (Operating Income) ($USD Millions)	$(0.224)	$(1.187)	$5.852
EBIT Margin %	(0.2%)	(1.3%)	4.5%
Net Income ($USD Millions)	$(0.675)	$(1.152)	$5.345
Net Income Margin %	(0.6%)	(1.2%)	4.1%
Hedging Gain ($USD Millions)	$0.2	$0.3	$1.8

Notes: EBIT Margin % calculated as “Earnings from operations” / Net Sales; Net Income Margin % as Net earnings / Net Sales. Values sourced from press releases/8-K tables and segment disclosures with cited periods.

Segment Breakdown

Segment Metric	Q2 2025	Q3 2025	Q4 2025
Flat-roll Sales ($USD Millions)	$97.4	$86.1	$117.7
Flat-roll Inventory Volume (k tons)	~112	~105	~139
Flat-roll Toll Processing (k tons)	~18	~18	~16.5
Flat-roll Avg Price/ton ($USD)	~$858	~$813	~$836
Flat-roll Operating Income ($USD Millions)	~$2.7	~$1.3	~$7.1
Tubular Sales ($USD Millions)	$9.4	$7.9	$11.5
Tubular Tons Sold (k tons)	~9	~8	~11
Tubular Avg Price/ton ($USD)	~$1,030	~$1,013	~$1,044
Tubular Operating Income ($USD Millions)	~$(0.6)	~$(0.2)	~$0.6

KPIs

KPI	Q2 2025	Q3 2025	Q4 2025
Total Sales Volume (k tons)	~139.5 (112 inv + 18 toll + ~9 tubular)	~123 (105 inv + 18 toll) + ~8 tubular	~166.5
Working Capital ($USD Millions)	~$111.7	~$107.0	~$128.1 (FY year-end)
Operating Cash Flow ($USD Millions)	~$10.8	~$2.7	—
Debt Reduction (%)	~22% in Q2	~9% in Q3	—
Backlog YoY (%)	—	+11%	—

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Sales Volume	Q4 FY2025	Higher than Q3 volume (seasonality reversal, stronger orders)	—	Achieved (Q4 volume +28% q/q)
Sales Volume	Q1 FY2026	—	Slightly lower than Q4 volume due to equipment downtime	New (lower volume)
Margins	Q4 FY2025	Margins to improve vs Q3	—	Achieved (Q4 EBIT/NI margins improved)
Margins	Q1 FY2026	—	Margins expected to improve vs Q4	Raised (sequential improvement)
Hedging Activity	Near term	Limited amid low volatility (Q2/Q3)	Gain recognized in Q4 ($1.8M)	Increased
Dividend	Q1 FY2026	—	$0.04 per share payable Aug 8, 2025; 214th consecutive quarterly dividend	Initiated/maintained cadence

Earnings Call Themes & Trends

Note: No earnings call transcript was available for Q4 FY2025 in the document catalog.

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4)	Trend
Steel Prices/Macro	HRC stabilized at a floor; soft demand/political uncertainty; challenging margins	Prices up ~35% enabling margin improvement	Improving pricing environment
Hedging Strategy	Limited activity on low volatility; modest gains ($0.2M–$0.3M)	$1.8M gain; FY gain $7.6M	More impactful
Orders/Backlog	Stable Q2 sales volume; backlog +11% YoY in Q3	Record Q4 sales volume; 28% q/q increase	Demand recovery evident
Segment Mix	Tubular under pressure; flat-roll profit modest	Flat-roll drives profit ($7.1M op income); tubular improves ($0.6M)	Mix improving
Facility Execution	Sinton ramp; no prior “highest margin” claim	Sinton at full capacity; highest margin contribution	Operationally strong
Balance Sheet	Debt reductions (22% Q2, 9% Q3); working capital ~$111.7M–$107M	Working capital $128.1M at FY-end	Strengthening liquidity

Management Commentary

“We ended fiscal 2025 with improved margins and a record quarter for sales volume... Steel prices increased 35% during the fourth quarter enabling margin improvement after a difficult margin environment for the first three quarters.” — Michael J. Taylor, President & CEO .
“This year highlights the benefit of our hedging capabilities as we successfully overcame price volatility to expand profitable results... Our newest facility in Sinton, Texas reached full capacity levels during the year and contributed the highest profit margin among all our facilities.” — Taylor .
“Friedman remains in a strong financial position and ready to capitalize on both short-term and long-term opportunities... favorable long-term demand for the industry and for our products.” — Taylor (Q4 outlook) .

Q&A Highlights

No Q4 FY2025 earnings call transcript or Q&A was filed or found in the catalog; key themes reflect press release disclosures [ListDocuments, 0 transcripts].

Estimates Context

S&P Global Wall Street consensus for Q4 FY2025 EPS and revenue was unavailable; we retrieved actuals only and found no consensus entries for EPS or # of estimates. Values retrieved from S&P Global* [GetEstimates]*.
Given the lack of consensus, we benchmarked performance vs prior quarters: Q4 EPS $0.76 vs Q3 $(0.17) and Q2 $(0.10); Q4 revenue $129.2M vs Q3 $94.1M and Q2 $106.8M .

Key Takeaways for Investors

Pricing inflection drove margin recovery; Q4 EBIT margin 4.5% and NI margin 4.1% vs negative margins in Q2/Q3 — watch Q1 FY2026 margin follow-through with equipment downtime noted .
Hedging strategy is a material lever in volatile steel cycles; Q4 hedging gain ($1.8M) and FY ($7.6M) demonstrate consistency and risk management efficacy .
Flat-roll remains the profit engine; Sinton’s full capacity/highest margin contribution suggests beneficial mix and potential structural margin uplift .
Demand indicators improved post-election and via commercial initiatives (Q3 backlog +11% YoY; Q4 record volume); monitor order rates and backlog progression into Q1 .
Tubular’s pricing pressure eased modestly in Q4 (ops income positive), but average prices remain below prior-year; segment recovery is a secondary margin driver to track .
Balance sheet resilience (working capital $128.1M at FY-end) plus ongoing dividends ($0.04/share) support shareholder returns through cycles .
With consensus estimates limited, the setup is driven by operational execution, pricing trends, and hedging efficiency; catalysts include sequential margin improvement and sustained volume under constrained capacity in Q1 .

*Values retrieved from S&P Global.

FRIEDMAN INDUSTRIES INC (FRD)·Q4 2025 Earnings Summary