FRIEDMAN INDUSTRIES INC

Friedman Industries, Incorporated

Friedman Industries, Incorporated is a Texas corporation (incorporated 1965) that manufactures and processes metals through two reportable segments: Flat-Roll Products and Tubular Products. All employees are based in the United States.

Segments and core operations

Flat-Roll Products

• Facilities: Hickman, AR; Decatur, AL; Miami Gardens, FL; East Chicago, IN; Granite City, IL; Sinton, TX; and a flat-roll distribution facility in Orlando, FL.
• Facility capabilities:
  • Temper mills and cut-to-length lines: Hickman, Granite City, East Chicago
  • Stretcher leveler cut-to-length lines: Decatur, Sinton
  • Corrective leveling cut-to-length line and coil slitting line: Miami Gardens
  • Granite City operates a fiber laser for further processing sheet and plate into customer parts
• Products: sheet, plate, slit coil
• Technical range (combined): sheet/plate thickness from 30 gauge to 1 inch; widths 11 inches to 96 inches; slit coil thickness 32 gauge to 10 gauge; slit widths 1/2 inch to 60 inches
• Revenue model: primarily sales from Company-owned inventory; some fee-based processing or storage of customer-owned material
• Operations: shipments allocated to the facility offering the desired product; when multiple facilities can supply the same product, shipment decisions are based on location, freight conditions, and ability to fulfill orders in a timely manner
• Market role: wholesale, rapid-delivery metals processor competing with other metal service centers and processors

Tubular Products

• Facility: Texas Tubular Products (TTP) division in Lone Star, TX
• Capabilities: two electric resistance welded (ERW) pipe mills
• Product scope: API-licensed to manufacture line pipe and oil country pipe; also produces structural pipe to other industry standards
• Revenue model: all tubular revenue from Company-owned inventory
• Supply: purchases inventory from a limited number of suppliers

Customer base and concentration

• Flat-Roll Products:
  • Approximately 1,160 customers, primarily located in the Midwest, Southwest, and Southeast U.S.
  • Primary customers include metals distributors and manufacturers of metal buildings, railcars, heavy equipment, tanks and containers, trailers, and other fabricated metal products
  • No single flat-roll customer accounted for 10% or more of total sales in either 2026 or 2025
  • O'Neal Steel accounted for approximately 15% of total sales in 2026 and 16% in 2025
• Tubular Products:
  • Approximately 80 customers nationally; principal customers are steel and pipe distributors
  • No individual tubular customer accounted for 10% or more of total sales in 2026 or 2025

Sales mix (two-year trend)

• Flat-Roll Products: 92% of total sales in fiscal 2026; 91% in fiscal 2025
• Tubular Products: 8% of total sales in fiscal 2026; 9% in fiscal 2025

Human capital

• As of March 31, 2026: 381 full-time employees (all based in the United States)

Competition and market position

• The company operates in a non-seasonal, highly competitive market.
• Competitive factors include pricing that is competitive with other metals suppliers and the ability to meet customer specifications with rapid-delivery service.

Property and facilities

Principal real properties (ownership vs. leasing):

• Texas Tubular Products (Lone Star, TX): Plant 118,260 sq ft (Owned); Offices 10,500 sq ft (Owned); Land 81.7 acres (Owned)
• Longview, TX: Administrative offices 5,100 sq ft (Leased)
• Flat-Roll Products:
  • Hickman, AR: Plant/Warehouse 64,600 sq ft (Owned); Offices 2,500 sq ft (Owned); Land 26.2 acres (Owned)
  • Decatur, AL: Plant/Warehouse 48,000 sq ft (Owned); Offices 2,000 sq ft (Owned); Land 47.3 acres (Owned)
  • Sinton, TX: Plant/Warehouse 70,000 sq ft (Leasehold improvement); Offices 3,100 sq ft (Leasehold improvement); Land 26.5 acres (Leased)
  • East Chicago, IN: Plant/Warehouse 150,900 sq ft (Owned); Offices 3,200 sq ft (Owned); Land 5.0 acres (Owned)
  • Granite City, IL: Plant/Warehouse 321,000 sq ft (Leasehold improvement); Offices 4,400 sq ft (Leasehold improvement); Land 31.1 acres (Leased)
  • Miami Gardens, FL: Plant/Warehouse 91,100 sq ft (Owned); Offices 10,300 sq ft (Owned); Land 3.9 acres (Owned)
  • Orlando, FL: Distribution Warehouse 27,100 sq ft (Leased); Offices 3,000 sq ft (Leased)
  • Tampa, FL: Storage Warehouse 32,240 sq ft (Leased)
  • The Woodlands, TX: Administrative offices 5,000 sq ft (Leased)
• Ownership notes:
  • Some leases are long-term, including a 99-year lease with Steel Dynamics Inc. for certain Flat-Roll properties ending in 2120 with annual rent of $1
  • Other leases are with non-affiliated parties or public entities, such as America's Central Port District

Governance and cybersecurity

• The Board provides oversight of cybersecurity.
• The IT Director manages governance, risk, and compliance activities and aligns practices with the NIST Cybersecurity Framework.
• Controls and processes include incident reporting, phishing controls and employee training, disaster recovery planning and testing, and periodic cybersecurity briefings to the Board and the Audit Committee.