Revenue growth reached 48.4% year-over-year in 2026Q4, yet structural margin compression persists with operating margins remaining thin at 6.2% due to high variable costs.
| 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 |
|---|
| Sales/Revenue | 646.91M | 444.6M | 516.25M | 547.54M | 285.24M | 126.1M | 142.1M | 187.15M | 121.16M | 77.76M | 81.63M | 108.32M | 116.15M | 136.45M | 161.52M | 131.71M | 65.13M | 208.78M | 178.79M | 199.73M | 181.9M | 188.02M | 116.16M | 106.08M | 97.82M | 120.4M | 120.27M | 124.7M | 148.8M | 119.9M |
| Revenue Growth % | 45.5% | -13.88% | -5.71% | 91.96% | 126.19% | -11.26% | -24.07% | 54.47% | 55.82% | -4.75% | -24.64% | -6.74% | -14.88% | -15.52% | 22.63% | 102.22% | -68.8% | 16.78% | -10.49% | 9.8% | -3.26% | 61.87% | 9.5% | 8.45% | -18.75% | 0.11% | -3.55% | -16.2% | 24.1% | 12.27% |
| Cost of Goods Sold | 592.64M | 399.13M | 443.83M | 477.56M | 244.25M | 102.52M | 139.49M | 174.25M | 112.91M | 77.95M | 76.94M | 103.24M | 109.09M | 122.05M | 143.92M | 114.4M | 60.21M | 182.05M | 167.28M | 185.11M | 166.79M | 172.26M | 107.32M | 99.67M | 91.89M | 109.81M | 110.56M | 113.7M | 135.3M | 109.2M |
| COGS % of Revenue | 91.61% | 89.77% | 85.97% | 87.22% | 85.63% | 81.3% | 98.16% | 93.1% | 93.19% | 100.25% | 94.25% | 95.31% | 93.92% | 89.45% | 89.1% | 86.86% | 92.44% | 87.2% | 93.56% | 92.68% | 91.69% | 91.62% | 92.39% | 93.95% | 93.94% | 91.21% | 91.93% | 91.18% | 90.93% | 91.08% |
| Gross Profit | 54.27M | 45.48M | 72.42M | 69.98M | 40.99M | 23.59M | 2.61M | 12.91M | 8.25M | -191.62K | 4.69M | 5.08M | 7.06M | 14.4M | 17.61M | 17.31M | 4.93M | 26.73M | 11.51M | 14.62M | 15.11M | 15.76M | 8.84M | 6.42M | 5.93M | 10.59M | 9.71M | 11M | 13.5M | 10.7M |
| Gross Margin % | 8.39% | 10.23% | 14.03% | 12.78% | 14.37% | 18.7% | 1.84% | 6.9% | 6.81% | -0.25% | 5.75% | 4.69% | 6.08% | 10.55% | 10.9% | 13.14% | 7.56% | 12.8% | 6.44% | 7.32% | 8.31% | 8.38% | 7.61% | 6.05% | 6.06% | 8.79% | 8.07% | 8.82% | 9.07% | 8.92% |
| Gross Profit Growth % | 19.35% | -37.2% | 3.49% | 70.73% | 73.78% | 803.53% | -79.78% | 56.41% | 4406.34% | -104.08% | -7.57% | -28.1% | -50.96% | -18.2% | 1.72% | 251.42% | -81.57% | 132.32% | -21.28% | -3.3% | -4.11% | 78.26% | 37.82% | 8.24% | -44.02% | 9.06% | -11.74% | -18.52% | 26.17% | 18.89% |
| Operating Expenses | 28.62M | 42.43M | 47.9M | 48.9M | 12.47M | 7.86M | 9.47M | 180.33M | 4.18M | 4.02M | 4.67M | 4.45M | 4.59M | 5.31M | 5.49M | 5.25M | 3.84M | 6.03M | 4.83M | 5.15M | 5.32M | 5.66M | 5.02M | 4.28M | 4.32M | 5.73M | 5.52M | 5.4M | 5.9M | 4.8M |
| OpEx % of Revenue | 4.42% | 9.54% | 9.28% | 8.93% | 4.37% | 6.23% | 6.66% | 96.35% | 3.45% | 5.17% | 5.72% | 4.11% | 3.95% | 3.9% | 3.4% | 3.99% | 5.9% | 2.89% | 2.7% | 2.58% | 2.93% | 3.01% | 4.32% | 4.04% | 4.41% | 4.76% | 4.59% | 4.33% | 3.97% | 4% |
| Selling, General & Admin | 28.62M | 16.17M | 44.83M | 46.38M | 0 | 0 | 0 | 4.78M | 4.18M | 4.02M | 4.67M | 4.45M | 4.59M | 5.31M | 5.49M | 5.25M | 3.84M | 6.03M | 4.83M | 5.15M | 5.32M | 5.66M | 5.02M | 4.28M | 4.32M | 4.69M | 4.48M | 4.7M | 5.2M | 4.2M |
| SG&A % of Revenue | 4.42% | 3.64% | 8.68% | 8.47% | - | - | - | 2.56% | 3.45% | 5.17% | 5.72% | 4.11% | 3.95% | 3.9% | 3.4% | 3.99% | 5.9% | 2.89% | 2.7% | 2.58% | 2.93% | 3.01% | 4.32% | 4.04% | 4.41% | 3.89% | 3.72% | 3.77% | 3.49% | 3.5% |
| Research & Development | 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 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 26.26M | 3.07M | 2.53M | 12.47M | 7.86M | 9.47M | -180.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.05M | 1.04M | 700K | 700K | 600K |
| Operating Income | 25.65M | 3.04M | 24.52M | 21.07M | 28.52M | 15.73M | -6.86M | 6.38M | 4.04M | -4.21M | 23.37K | 624.78K | 2.47M | 9.09M | 12.11M | 12.06M | 1.08M | 20.68M | 6.67M | 9.46M | 9.79M | 10.1M | 3.82M | 2.13M | 1.61M | 3.81M | 4.19M | 5.6M | 7.6M | 5.9M |
| Operating Margin % | 3.97% | 0.68% | 4.75% | 3.85% | 10% | 12.47% | -4.83% | 3.41% | 3.34% | -5.41% | 0.03% | 0.58% | 2.13% | 6.66% | 7.5% | 9.15% | 1.67% | 9.9% | 3.73% | 4.74% | 5.38% | 5.37% | 3.29% | 2.01% | 1.65% | 3.16% | 3.48% | 4.49% | 5.11% | 4.92% |
| Operating Income Growth % | 742.95% | -87.59% | 16.34% | -26.11% | 81.36% | 329.32% | -207.43% | 57.91% | 196.02% | -18113.01% | -96.26% | -74.75% | -72.77% | -25% | 0.48% | 1011.63% | -94.75% | 209.81% | -29.47% | -3.37% | -3.03% | 164.29% | 79.25% | 32.4% | -57.71% | -9.06% | -25.25% | -26.32% | 28.81% | 22.92% |
| EBITDA | 29.55M | 6.33M | 27.59M | 23.6M | 29.84M | 16.74M | -5.33M | 7.72M | 5.4M | -2.62M | 1.7M | 2.35M | 4.3M | 10.88M | 13.95M | 13.93M | 2.97M | 22.44M | 7.81M | 10.5M | 10.72M | 11.01M | 4.74M | 3.1M | 2.51M | 4.85M | 5.23M | 6.3M | 8.3M | 6.5M |
| EBITDA Margin % | 4.57% | 1.42% | 5.34% | 4.31% | 10.46% | 13.27% | -3.75% | 4.13% | 4.46% | -3.36% | 2.08% | 2.17% | 3.7% | 7.97% | 8.64% | 10.58% | 4.57% | 10.75% | 4.37% | 5.26% | 5.89% | 5.85% | 4.08% | 2.92% | 2.57% | 4.03% | 4.35% | 5.05% | 5.58% | 5.42% |
| EBITDA Growth % | 366.61% | -77.04% | 16.9% | -20.91% | 78.27% | 413.89% | -169.04% | 43.07% | 306.42% | -254.11% | -27.67% | -45.4% | -60.49% | -22.06% | 0.14% | 368.4% | -86.74% | 187.23% | -25.61% | -2.03% | -2.6% | 132.35% | 52.88% | 23.3% | -48.23% | -7.16% | -17% | -24.1% | 27.69% | 20.37% |
| D&A (Non-Cash Add-back) | 3.9M | 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 |
| EBIT | 30.48M | 10.65M | 26.39M | 30.41M | 18.59M | 15.75M | -2.51M | 6.84M | 5.79M | -4.15M | 398.68K | 685.82K | 2.54M | 9.15M | 12.11M | 12.06M | 1.08M | 20.85M | 6.67M | 9.46M | 9.79M | 10.1M | 3.82M | 2.13M | 1.61M | 4.85M | 4.19M | 5.6M | 7.64M | 5.9M |
| Net Interest Income | -4.1M | -2.95M | -3.07M | -2.22M | -255K | -24.62K | 14.45K | 422.96K | -2.95K | 59.01K | 375.31K | 61.04K | 62.01K | 58.76K | 91.82K | 57.14K | 86.49K | 121.47K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 19.26K | 440.5K | 24.9K | 59.01K | 375.31K | 61.04K | 62.01K | 58.76K | 91.82K | 57.14K | 86.49K | 144.78K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | -4.1M | 2.95M | 3.07M | 2.22M | 255K | 24.62K | 4.81K | 17.55K | 27.85K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 23.31K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 721K | 4.65M | -1.2M | 7.12M | -10.19M | -503.42K | 19.26K | 440.5K | 24.9K | 59.01K | 375.31K | 61.04K | 62.01K | 58.76K | 91.82K | 57.14K | 86.49K | 144.78K | 111.4K | 1.42M | 284.42K | 130.72K | 21.34K | 37.97K | -185.75K | 629.01K | -387.56K | -300K | -340.72K | -400K |
| Pretax Income | 26.37M | 7.69M | 23.31M | 28.19M | 18.33M | 15.22M | -6.84M | 6.82M | 4.07M | -4.15M | 398.68K | 685.82K | 2.54M | 9.15M | 12.21M | 12.11M | 1.17M | 20.82M | 6.79M | 10.88M | 10.08M | 10.23M | 3.84M | 2.17M | 1.42M | 4.44M | 3.8M | 5.3M | 7.3M | 5.5M |
| Pretax Margin % | 4.08% | 1.73% | 4.52% | 5.15% | 6.43% | 12.07% | -4.81% | 3.65% | 3.36% | -5.34% | 0.49% | 0.63% | 2.18% | 6.7% | 7.56% | 9.2% | 1.8% | 9.97% | 3.8% | 5.45% | 5.54% | 5.44% | 3.31% | 2.05% | 1.46% | 3.68% | 3.16% | 4.25% | 4.91% | 4.59% |
| Income Tax | 6.84M | 1.61M | 5.97M | 6.84M | 4.26M | 3.8M | -1.59M | 1.72M | 1.31M | -1.47M | 104.68K | 303.49K | 823.78K | 3.01M | 4.06M | 3.96M | 519.05K | 7.15M | 2.32M | 3.86M | 3.62M | 3.98M | 1.31M | 737.71K | 484.26K | 1.51M | 1.29M | 1.8M | 2.5M | 1.9M |
| Effective Tax Rate % | 25.93% | 20.9% | 25.6% | 24.28% | 23.27% | 24.95% | 23.24% | 25.26% | 32.16% | 35.47% | 26.26% | 44.25% | 32.47% | 32.91% | 33.23% | 32.67% | 44.32% | 34.33% | 34.2% | 35.48% | 35.96% | 38.94% | 34% | 34% | 34% | 34% | 34% | 33.96% | 34.25% | 34.55% |
| Net Income | 19.53M | 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 |
| Net Margin % | 3.02% | 1.37% | 3.36% | 3.9% | 4.93% | 9.06% | -3.69% | 2.73% | 2.28% | -3.45% | 0.36% | 0.35% | 1.47% | 4.5% | 5.05% | 6.19% | 1% | 6.55% | 2.5% | 3.51% | 3.55% | 3.32% | 2.18% | 1.35% | 0.96% | 2.43% | 2.08% | 2.81% | 3.23% | 3% |
| Net Income Growth % | 221% | -64.92% | -18.74% | 51.74% | 23.12% | 317.64% | -202.93% | 84.82% | 203.01% | -1011.12% | -23.1% | -77.68% | -72.08% | -24.72% | -0.06% | 1150.82% | -95.23% | 206.23% | -36.38% | 8.75% | 3.33% | 146.3% | 77.09% | 52.34% | -67.89% | 16.79% | -28.38% | -27.08% | 33.33% | 28.57% |
| Net Income (Continuing) | 19.53M | 6.08M | 17.34M | 21.34M | 14.07M | 11.42M | -5.25M | 5.1M | 3.93M | -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 |
| Discontinued Operations | 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 | 0 | 0 | 0 | 0 |
| Minority Interest | 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 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.76 | 0.87 | 2.39 | 2.91 | 2.04 | 1.63 | -0.75 | 0.73 | 0.39 | -0.39 | 0.04 | 0.06 | 0.25 | 0.90 | 1.20 | 1.20 | 0.10 | 2.01 | 0.66 | 1.04 | 0.90 | 0.83 | 0.33 | 0.19 | 0.12 | 0.39 | 0.33 | 0.47 | 0.63 | 0.48 |
| EPS Growth % | 217.24% | -63.6% | -17.87% | 42.65% | 25.15% | 317.33% | -202.74% | 87.18% | 200% | -1075% | -33.33% | -76% | -72.22% | -25% | 0% | 1100% | -95.02% | 204.55% | -36.54% | 15.56% | 8.43% | 151.52% | 73.68% | 58.33% | -69.23% | 18.18% | -29.79% | -25.4% | 31.25% | 26.32% |
| EPS (Basic) | 2.76 | 0.87 | 2.39 | 2.91 | 2.04 | 1.63 | -0.75 | 0.73 | 0.39 | -0.39 | 0.04 | 0.06 | 0.25 | 0.90 | 1.20 | 1.20 | 0.10 | 2.01 | 0.66 | 1.05 | 0.91 | 0.84 | 0.33 | 0.19 | 0.12 | 0.39 | 0.33 | 0.47 | 0.64 | 0.48 |
| Diluted Shares Outstanding | 6.97M | 6.94M | 7.18M | 7.33M | 6.62M | 7.03M | 7M | 7.01M | 7.01M | 6.85M | 6.8M | 6.8M | 6.8M | 6.8M | 6.8M | 6.8M | 6.8M | 6.8M | 6.78M | 6.75M | 7.16M | 7.55M | 7.64M | 7.59M | 7.57M | 7.57M | 7.55M | 7.58M | 7.65M | 7.49M |
| Basic Shares Outstanding | 6.97M | 6.94M | 7.18M | 7.33M | 6.62M | 7.03M | 7M | 7.01M | 7.01M | 6.85M | 6.8M | 6.8M | 6.8M | 6.8M | 6.8M | 6.8M | 6.8M | 6.8M | 6.73M | 6.69M | 7.07M | 7.42M | 7.57M | 7.57M | 7.57M | 7.57M | 7.55M | 7.53M | 7.51M | 7.49M |
| Dividend Payout Ratio | 5.8% | 18.32% | 3.35% | 2.76% | 3.92% | 4.94% | - | 23.37% | 10.16% | - | 92.51% | 142.27% | 103.21% | 113.03% | 41.71% | 61.69% | 104.28% | 18.4% | 45.21% | 32.36% | 35.5% | 27.26% | 29.87% | 42.3% | 112.73% | 40.86% | 59.44% | 57.14% | 37.5% | 36.11% |
Commodity price volatility exposure
According to quarterly financial data, Friedman Industries achieved a significant revenue acceleration, reaching $191.8 million in 2026Q4, representing a 48.4% year-over-year growth rate that appears driven by recent asset acquisitions rather than consistent organic demand across the company's core steel processing and tubular segments.
The sharp uptick in top-line performance suggests a successful integration of new capacity, yet the lack of historical consistency in these growth rates warrants caution. Investors should monitor whether this expansion is sustainable or merely a temporary reflection of inorganic scaling that may face headwinds if regional industrial activity cools.
As reported in recent income statements, the company's gross margin fluctuated significantly, bottoming at 6.0% in 2026Q2 before recovering to 11.2% in 2026Q4, highlighting the inherent difficulty in maintaining pricing power within a commodity-linked spread business model that is highly sensitive to raw steel input costs.
The inability to consistently expand margins despite substantial revenue growth suggests that Friedman Industries remains a price-taker in the steel market. This structural limitation implies that profitability is largely dictated by external steel price cycles rather than internal operational efficiencies or unique product differentiation.
Based on the provided income statement figures, operating income has failed to scale proportionally with revenue, as evidenced by the 2026Q4 operating margin of 6.2% despite a massive 48.4% revenue increase, indicating that the company's cost structure remains heavily burdened by variable expenses and integration-related overhead.
The lack of meaningful operating leverage suggests that the company's current business model requires significant incremental spending to support higher volumes. This dynamic may limit earnings upside during periods of peak demand and exacerbate downside risks when market conditions inevitably tighten.
Data from recent filings indicates that while revenue has expanded, the company's net margin remains thin at 4.8% in 2026Q4, raising concerns that the recent acquisition strategy may be masking underlying operational inefficiencies or creating a cost structure that is too rigid for a cyclical steel service provider.
Short-term earnings improvements may be vulnerable to inventory write-downs or LIFO liquidations if steel prices retreat from current levels. Investors should investigate whether the recent growth in SG&A expenses is a permanent feature of the expanded footprint or a temporary friction that will subside as integration efforts conclude.
Quick answers to the most common questions about buying FRD stock.
For fiscal year 2026, Friedman Industries, Incorporated (FRD) reported total revenue of $646.9M. This represents a 439.5% increase compared to $119.9M in 1997.
Friedman Industries, Incorporated (FRD) is profitable, generating $19.5M in net income for the fiscal year ending 2026 with a net profit margin of 3.0%.
Friedman Industries, Incorporated (FRD) reported an operating income of $25.7M, resulting in an operating profit margin of 4.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Friedman Industries, Incorporated (FRD) generated $54.3M in gross profit for the year, representing a gross profit margin of 8.4%. This demonstrates the company's core pricing power and production efficiency.