FRIEDMAN INDUSTRIES INC

TO OUR SHAREHOLDERS:

Fiscal 2026 was a milestone year for Friedman Industries. We generated net earnings of $19.5 million on sales of $646.9 million and achieved the highest annual sales volume in Company history. Just as importantly, the year demonstrated the progress we are making toward building Friedman into a larger, more diversified, and more resilient metals processing platform. Our results reflect strong execution across our facilities, disciplined commercial decision-making, and the benefits of strategic investments designed to support profitable long-term growth.

Our performance was driven by progress across several areas that matter to long-term shareholders: Greater scale, Higher utilization of our operating platform, Expanded customer relationships, and Continued discipline in managing commodity-price volatility. While metal markets remain cyclical, fiscal 2026 showed that Friedman is becoming a stronger and more durable business, with a broader footprint and more ways to serve customers across market environments.

The acquisition of Century Metals & Supplies was an important step in that strategy. Century expanded our flat-roll processing capabilities, broadened our geographic reach, and added customer relationships that complement Friedman’s existing platform. The acquisition reinforces our confidence in pursuing disciplined growth opportunities that strengthen our competitive position and long-term earnings potential.

Fiscal 2026 also demonstrated the value of our diversified operating footprint and disciplined risk management approach. As market conditions evolved throughout the year, our operational flexibility, commercial execution, and hedging program helped us navigate volatility and deliver strong financial results. Same-facility annual sales volume grew 17% year over year, underscoring the strength of our core operations. Including contributions from the Century acquisition, total annual sales volume increased 22% compared to fiscal 2025, reflecting both successful execution of our growth strategy and sustained customer demand.

We enter fiscal 2027 with meaningful momentum. Our balance sheet remains strong, our facilities are operating efficiently, and our expanded platform gives us more ways to serve customers and create value across market cycles. Our priorities remain focused: Operate safely and efficiently, Sustain strong utilization, Capture the full benefits of investments, Manage risk with discipline, and Pursue growth opportunities that enhance long-term shareholder value.

On behalf of our Board of Directors and management team, I would like to thank our employees for their dedication, our customers and suppliers for their partnership, and our shareholders for their continued support and confidence in Friedman Industries. We are proud of what Friedman accomplished in fiscal 2026 and remain focused on building a larger, stronger, and more valuable company for the years ahead.

Sincerely,

Michael J. Taylor

President and Chief Executive Officer

Chairman of the Board of Directors