FRIEDMAN INDUSTRIES INC
For the period ended Mar 31, 2026. Filed Jun 11, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2026 · Filed Jun 11, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
EX-13.1 · 5. LEASES
5. LEASES
In* August 2025,the Company was assigned operating leases for distribution and warehouse facilities in Orlando, FL and Tampa, FL and certain transportation equipment related to the acquisition of Century. The Orlando lease expires July 31, 2029and calls for monthly rental payments of approximately $25,000. The Tampa lease expires November 30, 2029but contains a6* month extension option and calls for monthly rental payments of approximately $21,000. The Company recognized initial right-of-use ("ROU") assets and lease liabilities of approximately $2.4 million related to the assumed Century leases. The Company's other ROU assets and lease liabilities consist primarily of operating leases for the Granite City, IL operating facility and administrative office spaces in The Woodlands, TX and Longview, TX. The Company’s other operating leases for items such as operations equipment, IT equipment and storage space are either short-term in nature or immaterial. The Company doesnot have any finance leases in place.
The Company determines if an arrangement contains a lease at inception based on if the arrangement conveys the right to control the use of an identified asset for a period of time in exchange for consideration and allows the Company to obtain substantially all of the economic benefit from the use of the identified asset. Certain lease agreements contain rent escalation clauses andone or more options to extend the lease. The Company considers these provisions when calculating operating lease obligations. The Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments.
The components of expense related to leases were as follows for the fiscal years ended* March 31, 2026* and2025 (in thousands):
| Fiscal 2026 | Fiscal 2025 | |
|---|---|---|
| Finance lease - amortization of ROU asset | — | 54 |
| Operating lease expense | 850 | 384 |
| $850 | $438 |
The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of* March 31, 2026* and2025 (in thousands):
| March 31, 2026 | March 31, 2025 | Balance Sheet Classification | |
|---|---|---|---|
| Assets | |||
| Operating lease right-of-use asset | $4,702 | $2,841 | Operating lease right-of-use asset |
| Finance lease right-of-use asset | — | 378 | Property, plant & equipment |
| Total right-of-use assets | $4,702 | $3,219 | |
| Liabilities | |||
| Operating lease liability, current | $756 | $160 | Accrued expenses |
| Operating lease liability, non-current | 4,097 | 2,752 | Non-current lease liabilities |
| Total lease liabilities | $4,853 | $2,912 | |
Asof* March 31, 2026*, the weighted-average remaining lease term was 12.5 years for operating leases. The weighted average discount rate was 7.0% for operating leases.
Maturities of lease liabilities asof* March 31, 2026* were as follows (in thousands):
| Operating | |
|---|---|
| Leases | |
| Fiscal 2027 | 1,054 |
| Fiscal 2028 | 990 |
| Fiscal 2029 | 971 |
| Fiscal 2030 | 478 |
| Fiscal 2031 and beyond | 4,544 |
| Total undiscounted lease payments | $8,037 |
| Less: imputed interest | (3,184) |
| Present value of lease liability | $4,853 |
14
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.