Cash conversion remains challenged as evidenced by a negative OCF/NI ratio of -0.29 and a $15.0 million outflow from working capital in 2026Q4.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Cash from Operations | 8.54M | -4.41M | 4.98M | 63.89M | -13.4M | 8.43M | 11.23M | 9.63M | 3.25M | -202.66K | 3.03M | -6.37M | 2.89M | 11.5M | 8.45M | -6.99M | 4.1M | 25.46M | 1.19M | 6.8M | 8.54M | 2.48M | 3.03M | 153.49K | 9.07M | 4.86M | -2.4M | 6.8M | 3.8M | 1.7M |
| Operating CF Margin % | 1.32% | -0.99% | 0.96% | 11.67% | -4.7% | 6.68% | 7.9% | 5.15% | 2.68% | -0.26% | 3.71% | -5.88% | 2.49% | 8.43% | 5.23% | -5.3% | 6.29% | 12.2% | 0.67% | 3.41% | 4.69% | 1.32% | 2.61% | 0.14% | 9.27% | 4.03% | -2% | 5.45% | 2.55% | 1.42% |
| Operating CF Growth % | 293.65% | -188.57% | -92.21% | 576.93% | -258.98% | -24.98% | 16.62% | 196.8% | 1701.39% | -106.7% | 147.48% | -320.18% | -74.82% | 36.03% | 220.98% | -270.43% | -83.9% | 2039.87% | -82.51% | -20.31% | 244.85% | -18.4% | 1876.99% | -98.31% | 86.73% | 302.09% | -135.33% | 78.95% | 123.53% | -29.17% |
| Net Income | 19.22M | 6.08M | 17.34M | 21.34M | 14.07M | 11.42M | -5.25M | 5.1M | 2.76M | -2.68M | 294K | 382.33K | 1.71M | 6.14M | 8.15M | 8.16M | 652.02K | 13.67M | 4.47M | 7.02M | 6.45M | 6.25M | 2.54M | 1.43M | 940.04K | 2.93M | 2.51M | 3.5M | 4.8M | 3.6M |
| Depreciation & Amortization | 3.82M | 3.29M | 3.07M | 2.53M | 1.32M | 1.01M | 1.52M | 1.34M | 1.36M | 1.59M | 1.67M | 1.72M | 1.82M | 1.79M | 1.84M | 1.88M | 1.89M | 1.76M | 1.14M | 1.04M | 927.4K | 908.38K | 916.26K | 967K | 903.05K | 1.05M | 1.04M | 700K | 700K | 600K |
| Stock-Based Compensation | 683K | 151K | 246K | 303K | 449K | 527.67K | 332.94K | 137.6K | 288.96K | 72.24K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 1.28M | 221K | 794K | 3.33M | -561K | 1.34M | -1.18M | -326.92K | 1.27M | -757.45K | -221.14K | -377.36K | -172.28K | -83.72K | -90.7K | 122.3K | 50.54K | 407.59K | -45.66K | -2.68K | -82.24K | 289.55K | -486.15K | -198.1K | 34K | 54K | 64K | -100K | -100K | 0 |
| Other Non-Cash Items | -405K | -2.18M | 404K | 5.24M | 864K | -6.56M | 5.3M | 1.76M | 9.77K | 57.68K | 78.71K | 76.83K | 69.91K | 89.41K | 76.19K | 94.91K | 67.3K | 65.58K | 56.56K | -434.42K | 50.32K | 520.29K | 207.06K | -1.94K | -18.83K | 7.5K | 7.75K | 0 | 100K | 100K |
| Working Capital Changes | -16.06M | -11.98M | -16.88M | 31.16M | -29.54M | 683.64K | 10.5M | 1.62M | -2.44M | 1.51M | 1.2M | -8.18M | -538.81K | 3.56M | -1.52M | -17.24M | 1.44M | 9.55M | -4.43M | 400.97K | 1.19M | -5.49M | -138.77K | -2.05M | 7.21M | 818.61K | -6.02M | 2.7M | -1.7M | -2.6M |
| Change in Receivables | -19.33M | -147K | 2.04M | -12.29M | -16.7M | -8.22M | 1.48M | 4.27M | -8.52M | -4.12M | 2.07M | 2.45M | -309.74K | 7.25M | 0 | -3.91M | -3.69M | 11.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -23.91M | 2.12M | -29.56M | 59.25M | -31.93M | -621.94K | 12.44M | -3.73M | -3.12M | 7.02M | -1.09M | -5.56M | 3.93M | -2.47M | -2.07M | -14.56M | -719.6K | 10.5M | 3.37M | -5.32M | -2.1M | -4.81M | 2.99M | -530.07K | 5.32M | -5.91M | -3M | 4.7M | -3.4M | -3.8M |
| Change in Payables | 22.19M | -8.64M | 7.04M | -18.88M | 22.03M | 5.39M | -2.68M | 1.34M | 8.23M | -473.04K | 328.14K | -5.06M | -3.98M | -909.35K | 0 | 682.42K | 5.64M | -12.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -52.76M | -3.43M | -5.8M | -88.19M | -7.92M | -4.59M | -4.95M | -825.91K | -374.08K | -858.33K | -2.18M | -5.94M | -1.97M | -519.11K | -380.6K | -571.34K | -432.29K | -2.06M | -4.49M | -5.58M | -2.01M | -210.24K | -902.56K | -685.92K | -1.28M | -497.76K | -288.55K | -2.5M | -2.6M | -100K |
| Capital Expenditures | -7.16M | -5M | -5.79M | -16.45M | -8.06M | -4.61M | -4.94M | -807.99K | -349.18K | -799.33K | -2.12M | -5.88M | -1.91M | -499.49K | -321.4K | -515.34K | -374.29K | -2M | -4.44M | -6.91M | -1.96M | -953.61K | -821.21K | -604.74K | -1.25M | -399.26K | -225.84K | -2.4M | -2.6M | -100K |
| CapEx % of Revenue | 1.11% | 1.13% | 1.12% | 3.01% | 2.83% | 3.66% | 3.47% | 0.43% | 0.29% | 1.03% | 2.6% | 5.42% | 1.64% | 0.37% | 0.2% | 0.39% | 0.57% | 0.96% | 2.48% | 3.46% | 1.08% | 0.51% | 0.71% | 0.57% | 1.27% | 0.33% | 0.19% | 1.92% | 1.75% | 0.08% |
| Acquisitions | 0 | 0 | 0 | -71.72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -45.6M | 1.57M | -13K | -13K | 147K | 19.38K | 0 | -17.92K | -24.9K | -59K | -59K | -61K | -62K | 42.38K | -59.2K | 0 | 0 | 0 | -52.2K | 1.33M | -46.45K | 743.38K | -81.35K | -81.18K | -33.49K | -98.5K | -62.71K | -100K | 0 | 0 |
| Cash from Financing | 43.3M | 6.09M | 1.34M | 13.56M | 17.25M | -701.91K | -889.57K | -1.19M | -280.38K | -274.08K | -271.98K | -543.96K | -1.77M | -6.94M | -3.4M | -5.05M | -733.97K | -9.17M | 4.91M | -2.17M | -4.75M | -4.05M | -820.18K | -3.48M | -3.77M | -4.13M | -664.05K | -1.9M | -1.8M | -2M |
| Debt Issued (Net) | 44.84M | 7.38M | 7.07M | 14.58M | 18.33M | 1.59M | -49.64K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -13.51K | -54.03K | -6.65M | 6.72M | 0 | -2.9K | -60.14K | -62.79K | -2.87M | -2.71M | -2.97M | 773.37K | 0 | 1.8M | -800K |
| Equity Issued (Net) | -10K | -171K | -5.15M | -37K | -538K | -1.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 203.49K | 105.97K | -2.46M | -2.28M | 0 | 0 | 0 | 31.47K | 52.69K | 0 | 0 | 100K |
| Dividends Paid | -1.13M | -1.11M | -581K | -589K | -551K | -564.19K | -839.93K | -1.19M | -280.38K | -274.08K | -271.98K | -543.96K | -1.77M | -6.94M | -3.4M | -5.03M | -679.94K | -2.52M | -2.02M | -2.27M | -2.29M | -1.7M | -757.4K | -605.78K | -1.06M | -1.2M | -1.49M | -2M | -1.8M | -1.3M |
| Share Repurchases | -10K | -171K | -5.15M | -37K | -538K | -1.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.71M | -2.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -395K | 0 | 0 | -393K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 0 | 0 |
| Net Change in Cash | -918K | -1.75M | 511K | -10.74M | -4.07M | 3.13M | 5.39M | 7.61M | 2.59M | -1.34M | 570.84K | -12.86M | -842.27K | 4.04M | 4.67M | -12.6M | 2.93M | 14.24M | 1.6M | -943.5K | 1.78M | -1.78M | 1.31M | -4.01M | 4.01M | 225.26K | -3.36M | 2.4M | -600K | -400K |
| Free Cash Flow | 1.38M | -9.41M | -813K | 47.44M | -21.46M | 3.82M | 6.3M | 8.82M | 2.9M | -1M | 901.82K | -12.25M | 987.59K | 11M | 8.13M | -7.5M | 3.72M | 23.46M | -3.25M | -105.01K | 6.58M | 1.52M | 2.21M | -451.25K | 7.82M | 4.46M | -2.63M | 4.4M | 1.2M | 1.6M |
| FCF Margin % | 0.21% | -2.12% | -0.16% | 8.66% | -7.52% | 3.03% | 4.43% | 4.71% | 2.39% | -1.29% | 1.1% | -11.31% | 0.85% | 8.06% | 5.03% | -5.7% | 5.72% | 11.24% | -1.82% | -0.05% | 3.61% | 0.81% | 1.91% | -0.43% | 8% | 3.7% | -2.19% | 3.53% | 0.81% | 1.33% |
| FCF Growth % | 114.65% | -1057.69% | -101.71% | 321.04% | -662.23% | -39.38% | -28.63% | 204.68% | 389.04% | -211.11% | 107.36% | -1340.41% | -91.02% | 35.26% | 208.38% | -301.4% | -84.12% | 822.11% | -2994.11% | -101.6% | 331.91% | -31.21% | 590.45% | -105.77% | 75.51% | 269.54% | -159.74% | 266.67% | -25% | -15.79% |
| FCF per Share | 0.20 | -1.36 | -0.11 | 6.47 | -3.24 | 0.54 | 0.90 | 1.26 | 0.41 | -0.15 | 0.13 | -1.80 | 0.15 | 1.62 | 1.20 | -1.10 | 0.55 | 3.45 | -0.48 | -0.02 | 0.92 | 0.20 | 0.29 | -0.06 | 1.03 | 0.59 | -0.35 | 0.58 | 0.16 | 0.21 |
| FCF Conversion (FCF/Net Income) | 0.44x | -0.72x | 0.29x | 2.99x | -0.95x | 0.74x | -2.14x | 1.89x | 1.18x | 0.08x | 10.29x | -16.67x | 1.69x | 1.87x | 1.04x | -0.86x | 6.29x | 1.86x | 0.27x | 0.97x | 1.32x | 0.40x | 1.20x | 0.11x | 9.64x | 1.66x | -0.96x | 1.94x | 0.79x | 0.47x |
| Interest Paid | 0 | 0 | 3M | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 3.9M | 400K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Volatile working capital cycles
As reported in recent financial statements, the disconnect between net income and operating cash flow is stark, with the company posting a negative OCF/NI ratio of -0.29 in 2026Q4, suggesting that reported profits are not currently translating into tangible liquidity for the business.
The persistent gap between accounting earnings and cash generation indicates that accruals and non-cash adjustments are heavily influencing the bottom line. Investors should monitor whether this divergence is a temporary byproduct of recent acquisitions or a structural inability to convert sales into cash.
Based on quarterly cash flow data, the company's free cash flow trajectory has been consistently negative throughout late 2026, culminating in a -2.1% FCF margin in 2026Q4, which highlights the significant cash burn required to sustain current operational and expansion activities.
The inability to generate positive free cash flow during a period of revenue growth suggests that the business model is currently capital-intensive and sensitive to cyclical downturns. This trend warrants further investigation into whether the company can achieve self-funding status without additional external financing.
According to recent SEC filings, working capital changes have been a major drag on cash flow, with a significant $15.0 million outflow in 2026Q4 alone, indicating that inventory and receivables management is currently consuming more cash than the core operations are generating.
The erratic nature of these working capital swings suggests that the company is struggling to optimize its inventory levels in response to fluctuating steel prices. This volatility creates a precarious cash position that may limit management's flexibility during periods of market stress.
As evidenced by the $45.6 million net acquisition outflow in 2026Q4, the company is aggressively deploying capital toward inorganic growth, which appears to be the primary driver of recent cash depletion rather than organic operational reinvestment or shareholder return programs.
While these acquisitions may expand the company's footprint, the heavy reliance on cash for expansion in a low-margin environment increases the risk profile of the balance sheet. Investors should monitor if these investments will eventually yield the operating leverage necessary to justify the current cash burn.
Quick answers to the most common questions about buying FRD stock.
Friedman Industries, Incorporated (FRD) generated $8.5M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Friedman Industries, Incorporated (FRD) generated $1.4M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Friedman Industries, Incorporated (FRD) spent $7.2M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Friedman Industries, Incorporated (FRD) returned $1.1M to shareholders via cash dividends and spent $0.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.