FRIEDMAN INDUSTRIES INC

**MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING **

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in the Exchange Act. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles in the United States ("GAAP").

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate.

During fiscal 2026, the Company acquired Century Metals & Supplies, Inc. ("Century"). Management excluded Century from its assessment of the effectiveness of the Company's internal control over financial reporting as of March 31, 2026. This exclusion is in accordance with guidance issued by the Securities and Exchange Commission that permits an issuer to omit an assessment of an acquired business's internal control over financial reporting from management's assessment in the year of acquisition. Century represented approximately 18% of the Company's total assets and approximately 10% of the Company's total revenues included in the Company's consolidated financial statements as of and for the year ended March 31, 2026.

Our management conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our internal control over financial reporting based on the framework set forth in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on this evaluation, and excluding the internal control over financial reporting of Century as described above, our management concluded that the Company's internal control over financial reporting was effective as of March 31, 2026.

Changes in Internal Control over Financial Reporting

On August 29, 2025, the Company acquired Century Metals & Supplies, Inc. As a result of the acquisition, the Company is in the process of integrating Century's operations, processes, and internal controls into the Company's overall internal control over financial reporting framework. Other than activities related to the integration of Century, there were no changes in the Company's internal control over financial reporting during the fiscal quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.