FRIEDMAN INDUSTRIES INC

Flat-Roll Segment

Flat-roll product segment sales for fiscal 2026 totaled approximately $596.1 million compared to approximately $404.6 million for fiscal 2025. For a more complete understanding of the average selling prices of goods sold, it is helpful to exclude any sales generated from processing or storage of customer owned material. Sales generated from processing or storage of customer owned material totaled approximately $5.2 million for fiscal 2026 compared to approximately $4.8 million for fiscal 2025. Sales generated from flat-roll segment inventory totaled approximately $590.9 million for fiscal 2026 compared to approximately $399.8 million for fiscal 2025. The average per ton selling price related to these shipments increased from approximately $859 per ton in fiscal 2025 to approximately $1,008 per ton in fiscal 2026. Flat-roll segment sales volume for fiscal 2026 consisted of approximately 586,500 tons from inventory and another 78,000 tons of toll processing customer owned material compared to fiscal 2025 volume consisting of approximately 465,500 tons from inventory and 76,500 tons of toll processing. The increase in sales volume for fiscal 2026 was related to a combination of stronger demand among some customers, successful commercial efforts to increase capacity utilization and the acquisition of Century. The flat-roll segment recorded earnings from operations of approximately $34.0 million and $13.7 million in fiscal 2026 and fiscal 2025, respectively.

The Company’s flat-roll segment purchases its inventory from a limited number of suppliers. Loss of any of these suppliers could have a material adverse effect on the Company’s business.