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FRD · 10-K filed June 11, 2026

FRD earnings analysis

What we found in FRD's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.

Our reading of the filing · Free to read, no account needed

Friedman Industries demonstrated a significant recovery in financial performance in fiscal year 2026, marked by an increase in revenue to $152 million in Q2 2026 and positive diluted EPS of $0.71 in Q1. However, the company continues to face challenges with free cash flow dips and moderate operating margins, reflecting ongoing operational pressures.

What stood out

The parts that mattered.

Pulled out of the filing itself, with the figures the company reported.

Strong Revenue Growth
Revenue increased to $168 million in Q3 2026, up from $129 million in Q4 2025.
Positive EPS Turnaround
Diluted EPS reached $0.76 for Q4 2025 and remained positive at $0.71 for Q1 2026.
Improved Gross Margin
Gross margin improved to 9.9% in Q1 2026, up from 8.1% in Q4 2025.
Effective Cash Flow Management
Free cash flow of $14 million in Q1 2026 after a negative $14 million in Q4 2025.
Operational Ramp-Up
Total revenue for Q2 2026 was reported at $152 million, reflecting strong operational performance.
Long-Term Strategy in Cybersecurity
The Company has developed a comprehensive cybersecurity program, recognizing the increasing threats, to protect its business.
What to watch

And the other side of it.

The offsets in the same document — the things a summary that only listed the good news would have left out.

Volatile Free Cash Flow
Free cash flow remains inconsistent, oscillating from $9 million in 2025Q2 to -$14 million in 2025Q4.
Sustained Operational Pressures
Operating margins are low, with only a 2.3% operating margin in Q3 2026.
Geopolitical Risks
Recent China-related tensions could impact supply chains and operations, heightening business risk.
The numbers

What they reported.

What the company itself reported, taken out of the document.

What survived to operating profit
Of every $100 of revenue Cost of sales $90 Operating expenses $5 Left as operating profit $5
Percentages of revenue, taken from the filing. Drawn this way because it holds whatever scale the company reports in.
Earnings per share
$0.71
Gross margin
9.9%
Operating margin
5.2%
Guidance

What they said about what is next.

Annual outlook deferred to earnings press release / call.

How we read the filing overall

The filing reads about the same as the one before it.

One reading of one document. It is not advice, and it is not a forecast.
Earlier filings

What came before.

10-Q · February 9, 2026
Friedman Industries reported a strong quarter: net sales of $167,974,000 (up from $94,074,000 a year earlier) and operating income of $3,899,000 versus an operating loss of $(1,187,000) in the prior‑year quarter. Net…
10-Q · November 10, 2025
Friedman Industries reported a strong quarter: net sales of $152,383,000 for the three months ended September 30, 2025 (up from $106,759,000 a year earlier) and operating income of $2,879,000 versus an operating loss of…
10-Q · August 7, 2025
Friedman Industries reported a strong quarter: net sales rose to $134,777,000 and operating income turned positive at $7,043,000, producing net earnings of $5,028,000 and diluted EPS of $0.71. Operating cash flow was…
10-K · June 12, 2025
The 10-K for Friedman Industries (filed June 12, 2025) incorporates MD&A and full financial statements by reference and discloses operational details (property footprint, cybersecurity program) and several…

This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.

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