What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-07 compared with 2025-02-07 · 136 added, 234 removed, 350 unchanged (51% of the section changed)

3 unchanged sentences

(In thousands, except for share data)

DECEMBER 31, 2024

JUNE 30, 2025

MARCH 31, 2025

1 unchanged sentence

$ 2,099 $ 3,686

Accounts receivable, net of allowances for credit losses and cash discounts of $ 145 and $ 97 at December 31, and March 31, 2024, respectively

Accounts receivable, net of allowances for credit losses and cash discounts of $ 124 and $ 147 at June 30, and March 31, 2025, respectively

50,717 47,476

12 unchanged sentences

( 34,641 ) ( 33,819 )

TOTAL PROPERTY, PLANT AND EQUIPMENT 56,787 56,758

57,210 56,251

OTHER ASSETS:

Operating lease right-of-use asset

Other assets 1,151 1,263

$ 219,078 $ 226,822

6 unchanged sentences

Employee compensation and related expenses

Current portion of financing lease

Current portion of derivative liability

12 unchanged sentences

Authorized shares — 10,000,000 ;

Issued shares — 8,873,203 shares at December 31, and March 31, 2024

Issued shares — 8,966,763 and 8,877,229 shares at June 30, and March 31, 2025

Additional paid-in capital

35,427 35,394

Treasury stock at cost ( 1,906,693 shares and 1,896,892 shares at December 31, and March 31, 2024, respectively)

Treasury stock at cost ( 1,907,323 shares and 1,906,693 shares at June 30, and March 31, 2025, respectively)

( 13,110 ) ( 13,100 )

10 unchanged sentences

THREE MONTHS ENDED

NINE MONTHS ENDED

$ 134,777 $ 114,551

3 unchanged sentences

Processing and warehousing expense

7,472 7,370 24,030 22,678

Delivery expense

4,941 5,469 16,373 17,435

Selling, general and administrative

3,887 4,235 12,333 14,902

Depreciation and amortization

127,734 115,949

95,636 109,800 318,346 366,434

Gain on disposal of property, plant and equipment

EARNINGS (LOSS) FROM OPERATIONS

7,043 ( 1,398 )

Gain (loss) on economic hedges of risk

264 ( 4,126 ) 5,833 706

Gain on economic hedges of risk

Interest expense

( 678 ) ( 681 )

EARNINGS (LOSS) BEFORE INCOME TAXES

( 1,552 ) 1,258 845 16,173

EARNINGS BEFORE INCOME TAXES

Provision for (benefit from) income taxes:

1 unchanged sentence

$ 5,028 $ 2,567

( 400 ) 74 105 3,786

NET EARNINGS (LOSS)

$ ( 1,152 ) $ 1,184 $ 740 $ 12,387

Net earnings (loss) per share:

Net earnings per share:

$ 0.71 $ 0.37

2 unchanged sentences

$ 0.04 $ 0.04

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME — UNAUDITED

(In thousands)

THREE MONTHS ENDED

NINE MONTHS ENDED

Net earnings (loss)

$ ( 1,152 ) $ 1,184 $ 740 $ 12,387

Other comprehensive income:

Cash flow hedges, net of tax

Comprehensive income (loss)

$ ( 1,152 ) $ 1,184 $ 740 $ 12,704

The accompanying notes are an integral part of these financial statements.

2 unchanged sentences

(In thousands)

NINE MONTHS ENDED DECEMBER 31,

THREE MONTHS ENDED JUNE 30,

OPERATING ACTIVITIES

$ 5,028 $ 2,567

Adjustments to reconcile net earnings to cash provided by operating activities:

Adjustments to reconcile net earnings to cash provided by (used in) operating activities:

Depreciation and amortization

3 unchanged sentences

Change in postretirement benefits

Gain recognized on open derivatives not designated for hedge accounting

Loss (gain) recognized on open derivatives not designated for hedge accounting

103 ( 1,608 )

Deferred realized loss on derivatives

Gain on disposal of property, plant and equipment

Right-of-use asset

2 unchanged sentences

( 3,241 ) 9,574

10,231 ( 3,998 )

Other current assets

3 unchanged sentences

Income taxes payable

( 2,213 ) 1,400

Contribution to retirement plan

Employee compensation and related expenses

744 ( 4,737 )

NET CASH PROVIDED BY OPERATING ACTIVITIES

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

15,489 ( 6,059 )

INVESTING ACTIVITIES

1 unchanged sentence

( 1,781 ) ( 1,054 )

Proceeds from sale of assets

Deposit on steel processing equipment

Increase in cash surrender value of officers’ life insurance

5 unchanged sentences

Cash paid for principal portion of finance lease

( 54 ) ( 80 )

Cash paid for share repurchases

6 unchanged sentences

( 14,981 ) 5,365

INCREASE (DECREASE) IN CASH AND RESTRICTED CASH

DECREASE IN CASH AND RESTRICTED CASH

( 1,276 ) ( 1,751 )

2 unchanged sentences

$ 2,872 $ 4,146

Cash and restricted cash at December 31, 2024 and March 31, 2024 included approximately $0.1 million and $3.0 million, respectively, of cash required to collateralize open derivative positions.

These amounts are reported in "Other current assets" on the Company's consolidated balance sheets at December 31, 2024 and March 31, 2024.

The Company had approximately $4.8 million in restricted cash as of December 31, 2023.

Cash and restricted cash at June 30, 2025 and March 31, 2025 included approximately $0.8 million and $0.5 million, respectively, of cash required to collateralize open derivative positions.

These amounts are reported in "Other current assets" on the Company's consolidated balance sheets at June 30, 2025 and March 31, 2025.

The Company did not have any restricted cash as of June 30, 2024.

The accompanying notes are an integral part of these financial statements.

1 unchanged sentence

CONDENSED NOTES TO QUARTERLY REPORT — UNAUDITED

NOTE A — BASIS OF PRESENTATION

NOTE 1 — BASIS OF PRESENTATION

The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10 -Q and do not include all of the information and footnotes required by U.S.

2 unchanged sentences

For further information, refer to the consolidated financial statements and footnotes of Friedman Industries, Incorporated (the “Company”) included in its annual report on Form 10 -K for the year ended March 31, 2025 .

Reclassifications

The consolidated financial statements for the previous year include certain reclassifications to conform to the current presentation.

To conform with the current year presentation, “Cost of products sold” on the consolidated statements of operations was disaggregated into four separate line items:

"Cost of materials sold", "Processing and warehousing expense", "Delivery expense" and "Depreciation and amortization".

The Company believes this increased level of detail provides financial statement users with a better understanding of the Company's expenses.

"Cost of materials sold" provides the costs associated with purchased steel, inbound freight, transfer freight and certain external processing costs.

"Processing and warehousing expense" represents the operating costs at our processing facilities.

"Delivery expense" represents the costs of delivering products to customers.

The amount the Company charged customers for delivery of products is reported within "Net sales" on the consolidated statements of operations.

These reclassifications had no impact on previously reported net earnings or stockholders' equity.

NOTE B — NEW ACCOUNTING PRONOUNCEMENTS

NOTE 2 — NEW ACCOUNTING PRONOUNCEMENTS

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No.

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The Company is evaluating the impact that adoption of the provisions of ASU 2023 - 09 will have on its consolidated financial statements.

In November 2023, the FASB issued Accounting Standards Update No.

2023 - 07, Improvements to Reportable Segment Disclosures ("ASU 2023 - 07" ).

ASU 2023 - 07 includes requirements that an entity disclose the title of the chief operating decision maker (CODM) and on an interim and annual basis, significant segment expenses and the composition of other segment items for each segment's reported profit.

The standard also permits disclosure of additional measures of segment profit.

ASU 2023 - 07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

The guidance is to be applied retrospectively to all prior periods presented in the financial statements.

The Company is evaluating the impact that adoption of the provisions of ASU 2023 - 07 will have on its consolidated financial statements.

NOTE C — INVENTORIES

NOTE 3 — INVENTORIES

The Company operates in two segments:

9 unchanged sentences

A summary of inventory values by product group follows (in thousands):

December 31, 2024

June 30, 2025

March 31, 2025

6 unchanged sentences

$ 103,458 $ 113,689

NOTE D — DEBT

NOTE 4 — DEBT

The Company has a $ 150 million asset-based lending facility ("ABL Facility") in place with JPMorgan Chase Bank, N.A.

1 unchanged sentence

as a one - third syndicated participant.

The ABL Facility matures on May 19, 2026 and is secured by substantially all of the assets of the Company.

On May 6, 2025, the Company executed the fourth amendment to the credit agreement which extended the maturity date of the ABL Facility to August 19, 2026.

The ABL Facility is secured by substantially all of the assets of the Company.

The Company can elect borrowings on a floating rate basis or a term basis.

6 unchanged sentences

The ABL Facility contains other representations and warranties and affirmative and negative covenants that are usual and customary.

If certain conditions precedent are satisfied, the ABL facility may be increased by up to an aggregate of $ 25 million, in minimum increments of $ 5 million.

At December 31, 2024 , the Company had a balance of approximately $ 32.5 million under the ABL Facility with an applicable interest rate of 6.5 %.

At December 31, 2024 , the Company's applicable borrowing base calculation supported access to approximately $ 99.2 million of the ABL Facility.

The Company incurred debt issuance costs of approximately $ 0.4 million in connection with the ABL Facility.

The Company recorded these debt issuance costs as non-current other assets and is amortizing these costs on an equal monthly basis over the remaining term of the ABL facility.

NOTE E — LEASES

If certain conditions precedent are satisfied, the ABL facility may be increased up to an aggregate of $ 25 million, in minimum increments of $ 5 million.

At June 30, 2025 , the Company had a balance of approximately $ 33.0 million under the ABL Facility with an applicable interest rate of 6.2 %.

At June 30, 2025 , the Company's applicable borrowing base calculation supported access to approximately $ 103.7 million of the ABL Facility.

The Company incurred debt issuance costs of approximately $ 0.4 million in connection with the ABL Facility with these costs being amortized on an equal monthly basis over the term of the ABL facility.

NOTE 5 — LEASES

The Company has an operating lease for the Granite City, IL facility with an expiration date of August 31, 2028 and optional renewal provisions for up to 4 renewal terms of five years each.

The lease calls for monthly rental payments that adjust on an annual basis.

The monthly rental payment in place at December 31, 2024 and remaining in place until adjustment in September 2025 is approximately $ 13,000 per month.

The anticipated execution of renewal options for this lease is included in the ROU asset and lease liability calculation.

The monthly rental payment in place at June 30, 2025 and remaining in place until adjustment in September 2025 is approximately $ 13,000 per month.

The anticipated execution of renewal options for this lease is included in the right-of-use ("ROU") asset and lease liability calculation.

The Company has an operating lease for administrative office space in The Woodlands, TX with an expiration date of February 28, 2029 and a renewal option for one additional 60 month term.

The lease calls for monthly rental payments that adjust on an annual basis.

The monthly rental payment in place at December 31, 2024 and remaining in place until adjustment in March 2025 is approximately $ 11,000 per month.

The monthly rental payment in place at June 30, 2025 and remaining in place until adjustment in March 2026 is approximately $ 12,000 per month.

The Company’s lease of its office space in Longview, Texas is the only other operating lease included in the Company's ROU assets and lease liabilities.

1 unchanged sentence

The Company’s other operating leases for items such as IT equipment and storage space are either short-term in nature or immaterial.

In October 2019, the Company acquired equipment under a 5 -year finance lease arrangement with a financed amount of approximately $ 0.5 million and a monthly payment of approximately $ 9,000 .

The last payment under this lease was made in October 2024.

The components of expense related to leases for the three and nine months ended December 31, 2024 and 2023 are as follows (in thousands):

The Company does not have any finance leases in place.

The components of expense related to leases for the three months ended June 30, 2025 and 2024 are as follows (in thousands):

Three Months Ended

Nine Months Ended

Finance lease – amortization of ROU asset

$ — $ 26 $ 54 $ 78

Finance lease – interest on lease liability

Operating lease expense

108 34 276 102

$ 108 $ 61 $ 330 $ 183

The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of December 31, 2024 and March 31, 2024 (in thousands):

December 31, 2024

The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of June 30, 2025 and March 31, 2025 (in thousands):

June 30, 2025

March 31, 2025

2 unchanged sentences

$ 2,788 $ 2,841 Operating lease right-of-use asset

Finance lease right-of-use asset

385 404 Property, plant & equipment

Total right-of-use assets

2 unchanged sentences

$ 164 $ 160 Accrued expenses

Finance lease liability, current

— 54 Current portion of finance lease

Operating lease liability, non-current

2 unchanged sentences

$ 2,877 $ 2,912

As of December 31, 2024 , the weighted-average remaining lease term was 19.3 years for operating leases.

As of June 30, 2025 , the weighted-average remaining lease term was 19.3 years for operating leases.

The weighted average discount rate was 7.5 % for operating leases .

Maturities of lease liabilities as of December 31, 2024 were as follows (in thousands):

Maturities of lease liabilities as of June 30, 2025 were as follows (in thousands):

Operating Leases

4 unchanged sentences

Present value of lease liability

NOTE F — PROPERTY, PLANT AND EQUIPMENT

At December 31, 2024 , the Company's construction in process balance of approximately $ 0.7 million consisted of several smaller projects among our facilities.

During December 2024, the Company's tubular segment sold equipment for $ 0.8 million resulting in a gain of approximately $ 0.4 million.

NOTE G — STOCK BASED COMPENSATION

NOTE 6 — PROPERTY, PLANT AND EQUIPMENT

At June 30, 2025 , the Company's construction in process balance of approximately $ 0.7 million consisted of several smaller projects among our facilities.

NOTE 7 — STOCK BASED COMPENSATION

The Company maintains the Friedman Industries, Incorporated 2016 Restricted Stock Plan (the “Plan”).

6 unchanged sentences

Because the Company accounts for forfeitures as they occur, the non-forfeitable dividends are reclassified from retained earnings to additional stock compensation for the actual forfeitures that occurred.

The following table summarizes the activity related to restricted stock units (“RSUs”) for the nine months ended December 31, 2024 :

The following table summarizes the activity related to restricted stock awards for the three months ended June 30, 2025 :

Weighted Average

5 unchanged sentences

( 14,000 ) 4.32

Unvested at December 31, 2024

Unvested at June 30, 2025

93,560 $ 14.49

The Company measures compensation expense for RSUs at the market price of the common stock as of the grant date.

Compensation expense is recognized over the requisite service period applicable to each award.

The Company recorded compensation expen se of approximately $ 0.1 million and $ 0.2 million in the nine months ended December 31, 2024 and 2023 , respectively, relating to the RSUs issued under the Plan.

As of December 31, 2024 , unrecognized compensation expense related to unvested RSUs was appr oximat ely $ 15,000 which is expected to be recognized over a weighted average period of approximately 0.3 years.

As of December 31, 2024 , a total of 117,998 shares were still available to be issued under the Plan.

NOTE H — DERIVATIVE FINANCIAL INSTRUMENTS

The Company measures compensation expense for restricted stock awards at the market price of the common stock as of the grant date.

Compensation expense for awards with time based restrictions is recognized over the requisite service period applicable to each award.

Compensation expense for awards with performance based restrictions is recognized once it is probable the performance conditions will be satisfied with a cumulative effect adjustment and the remaining expense recognized over the remaining service period.

The stock awards granted during the three months ended June 30, 2025 consist of 53,221 time restricted shares with annual ratable vesting over a three year period and 36,313 performance restricted shares with vesting thresholds dependent on the percentage of average earnings before tax to average accounts receivable, inventory and net PP&E over a three year period.

The Company recorded compensation expen se of approximately $ 0.1 milli on and $ 0.05 million in the three months ended June 30, 2025 and 2024 , respectively, relating to the restricted stock issued under the Plan.

As of June 30, 2025 , unrecognized compensation expense related to unvested restricted stock was approximately $ 1.3 million which is expected to be recognized over a weighted average period of approximately 2.8 years.

As of June 30, 2025 , a total of 24,438 shares were still available to be issued under the Plan.

NOTE 8 — DERIVATIVE FINANCIAL INSTRUMENTS

From time to time, we expect to utilize hot-rolled coil futures or options to reduce our exposure to commodity price risk that is inherent in our business.

For the nine months ended December 31, 2024 , all of the Company's hedging activities were classified as economic hedges of risk with mark-to-market ("MTM") accounting treatment.

For the nine months ended December 31, 2023 , the Company had hedging activities classified as cash flow hedges with hedge accounting treatment according to the requirements of ASC 815– Derivatives and Hedging and hedging activities classified as economic hedges of risk with MTM accounting treatment.

For the three months ended June 30, 2025 and 2024 , all of the Company's hedging activities were classified as economic hedges of risk with mark-to-market ("MTM") accounting treatment.

By using derivatives, the Company is exposed to credit and market risk.

7 unchanged sentences

These supply agreements are not subject to mark-to-market accounting due to the Company electing the normal purchase normal sale exclusion provided in ASC 815.

At December 31, 2024 and March 31, 2024 , the Company did not have any hot-rolled coil futures contracts designated as hedging instruments and classified as cash flow or fair value hedges.

The following table summarizes the fair value of the Company’s derivative financial instruments and the respective line in which they were recorded in the Consolidated Balance Sheet as of December 31, 2024 (in thousands):

At June 30, 2025 and March 31, 2025 , the Company did not have any hot-rolled coil futures contracts designated as hedging instruments and classified as cash flow or fair value hedges.

Asset Derivatives

16 unchanged sentences

All derivatives are presented on a gross basis on the Consolidated Balance Sheets.

During the nine months ended December 31, 2024 and 2023 , the Company entered into hot-rolled coil futures contracts that were not designated as hedging instruments for accounting purposes.

During the three months ended June 30, 2025 and 2024 , the Company entered into hot-rolled coil futures contracts that were not designated as hedging instruments for accounting purposes.

Accordingly, the change in fair value related to these instruments was immediately recognized in earnings for these periods.

During the nine months ended December 31, 2024 and 2023 , the Company did not designate any transactions as hedging instruments for accounting purposes.

During the nine months ended December 31, 2023 , the Company reclassified the loss associated with previously designated cash flow hedges into earnings during the period.

The following table summarizes the pre-tax gain (loss) recognized in other comprehensive income and the loss reclassified from accumulated other comprehensive income into earnings for derivative financial instruments designated as cash flow hedges for the nine months ended December 31, 2023 (in thousands):

Pre-Tax Gain (Loss) Recognized in OCI Location of Loss Reclassified from AOCI into Net Earnings

Pre- Tax Loss Reclassified from AOCI into Net Earnings

For the nine months ended December 31, 2023:

Hot-rolled coil steel contracts

$ — $ ( 418 )

The following table summarizes the gain recognized in earnings for derivative instruments not designated as hedging instruments during the three and nine months ended December 31, 2024 (in thousands):

During the three months ended June 30, 2025 and 2024 , the Company did not designate any transactions as hedging instruments for accounting purposes.

The following table summarizes the gain recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended June 30, 2025 (in thousands):

Gain Recognized in Earnings

2 unchanged sentences

Recognized in Earnings

December 31, 2024

June 30, 2025

Hot-rolled coil steel contracts

Gain (loss) on economic hedges of risk

Gain on economic hedges of risk

The following table summarizes the gain recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended June 30, 2024 (in thousands):

Gain Recognized in Earnings

Location of Gain

for the Nine Months Ended

Recognized in Earnings

December 31, 2024

Hot-rolled coil steel contracts

Gain (loss) on economic hedges of risk

The following table summarizes the gain (loss) recognized in earnings for derivative instruments not designated as hedging instruments during the three and nine months ended December 31, 2023 (in thousands):

Loss Recognized in Earnings

Location of Loss

for the Three Months Ended

Recognized in Earnings

December 31, 2023

June 30, 2024

Hot-rolled coil steel contracts

Gain (loss) on economic hedges of risk

Gain Recognized in Earnings

Location of Gain

for the Nine Months Ended

Recognized in Earnings

December 31, 2023

Gain on economic hedges of risk

The following table summarizes the Company's economic (non-designated) derivative instruments outstanding at June 30, 2025 (in thousands):

Notional Amount Maturity Date

Hot-rolled coil steel contracts $ ( 12,484 ) July 2025 - June 2026

The following table summarizes the Company's economic (non-designated) derivative instruments outstanding at

March 31, 2025

Notional Amount

Maturity Date

Hot-rolled coil steel contracts

Gain (loss) on economic hedges of risk

The notional amount (quantity) of our derivative instruments not designated as hedging instruments at December 31, 2024 consisted of 4,020 tons of long positions with maturity dates of January 2025 to February 2025 and 180 tons of short positions with maturity dates ranging from March 2025 to September 2025.

The following tables reflect the change in accumulated other comprehensive income (loss), net of tax, for the nine months ended December 31, 2023 (in thousands):

Gain (Loss) on

Balance at March 31, 2023

Other comprehensive income, net of loss, before reclassification

Total loss reclassified from AOCI (1)

Net current period other comprehensive income

Balance at December 31, 2023

( 1 ) The loss reclassified from AOCI is presented net of tax benefits of approximately $ 0.1 million which are included in the provision for (benefit from) income taxes on the Company's Consolidated Statement of Operations for the nine months ended December 31, 2023 .

At December 31, 2024 and March 31, 2024 , cash of approximately $ 0.1 million and $ 3.0 million, respectively, was held by our clearing agent to collateralize our open derivative positions.

These cash requirements are included in "Other current assets" on the Company's Consolidated Balance Sheets at December 31, 2024 and March 31, 2024 .

NOTE I — FAIR VALUE MEASUREMENTS

April 2025 - December 2025

At June 30, 2025 and March 31, 2025 , cash of approximately $ 0.8 million and $ 0.5 million, respectively, was held by our clearing agent to collateralize our open derivative positions.

These cash requirements are included in "Other current assets" on the Company's Consolidated Balance Sheets at June 30, 2025 and March 31, 2025 .

NOTE 9 — FAIR VALUE MEASUREMENTS

Accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs.

4 unchanged sentences

Recurring Fair Value Measurements

At December 31, 2024 , our financial assets, net, measured at fair value on a recurring basis were as follows (in thousands):

At June 30, 2025 , our financial assets, net, measured at fair value on a recurring basis were as follows (in thousands):

Quoted Prices

2 unchanged sentences

$ 246 $ — $ — $ 246

At March 31, 2024 , our financial liabilities, net, measured at fair value on a recurring basis were as follows (in thousands):

At March 31, 2025 , our financial assets, net, measured at fair value on a recurring basis were as follows (in thousands):

Quoted Prices

Commodity futures – financial liabilities, net

Commodity futures – financial assets, net

$ 349 $ — $ — $ 349

At December 31, 2024 and March 31, 2024 , the Company did not have any fair value measurements on a non-recurring basis.

NOTE J — SEGMENT INFORMATION (in thousands)

At June 30, 2025 and March 31, 2025 , the Company did not have any fair value measurements on a non-recurring basis.

NOTE 10 — SEGMENT INFORMATION

The Company is engaged in the steel processing, pipe manufacturing and processing and steel and pipe distribution business.

3 unchanged sentences

Through its tubular operations, the Company purchases, processes, manufactures and markets tubular products.

Segment results are reviewed regularly by the Company’s Chief Operating Decision Makers (“CODMs”).

The Company’s CODMs are comprised of the Chief Executive Officer and the Chief Financial Officer.

The CODMs assess segment performance and allocate resources based on a number of factors with the most emphasis placed on earnings from operations.

The following is a summary of significant financial information relating to the product groups (in thousands):

Three Months Ended

Nine Months Ended

Three Months Ended June 30, 2025

$ 124,067 $ 10,710 — $ 134,777

Cost and expenses:

Cost of materials sold

99,154 6,550 — 105,704

TOTAL NET SALES

Processing and warehousing expense

6,899 2,429 — 9,328

OPERATING PROFIT (LOSS):

Delivery expense

6,260 140 — 6,400

Commercial expense

2,199 212 — 2,411

TOTAL OPERATING PROFIT

Depreciation and amortization

769 50 28 847

1 unchanged sentence

115,281 9,381 3,072 127,734

Gain (loss) on economic hedges of risk

EARNINGS (LOSS) FROM OPERATIONS

8,786 1,329 ( 3,072 ) 7,043

Gain on economic hedges of risk

Interest expense

EARNINGS BEFORE INCOME TAXES

Three Months Ended June 30, 2024

$ 103,387 $ 11,164 — $ 114,551

TOTAL EARNINGS (LOSS) BEFORE INCOME TAXES

Cost and expenses:

Cost of materials sold

86,913 9,501 — 96,414

December 31, 2024

Processing and warehousing expense

5,768 2,410 — 8,178

Delivery expense

5,878 173 — 6,051

Commercial expense

1,482 182 — 1,664

Depreciation and amortization

680 83 32 795

General corporate expenses — — 2,847 2,847

100,721 12,349 2,879 115,949

EARNINGS (LOSS) FROM OPERATIONS 2,666 ( 1,185 ) ( 2,879 ) ( 1,398 )

Gain on economic hedges of risk

Interest expense

EARNINGS BEFORE INCOME TAXES

June 30, 2025

March 31, 2025

5 unchanged sentences

$ 219,078 $ 226,822

Operating profit (loss) is total net sales less operating expenses, excluding general corporate expenses, gain on economic hedges of risk, interest expense and other income (loss).

General corporate expenses reflect general and administrative expenses not directly associated with segment operations and consist primarily of corporate and accounting salaries, professional fees and services, bad debts, retirement plan contribution expense, corporate insurance expenses, restricted stock plan compensation expense and office supplies.

At December 31, 2024 and March 31, 2024 , corporate assets consist primarily of cash, restricted cash, leased administrative office right-of-use assets, unamortized debt issuance costs and the cash value of officers’ life insurance.

General corporate expenses reflect general and administrative expenses not directly associated with segment operations and consist primarily of corporate and accounting salaries, professional fees and services, retirement plan contribution expense, corporate insurance expenses, restricted stock plan compensation expense and office supplies.

At June 30, 2025 and March 31, 2025 , corporate assets consist primarily of cash, restricted cash, leased administrative office right-of-use assets, unamortized debt issuance costs and the cash value of officers’ life insurance.

Although inventory is transferred at cost between product groups, there are no sales between product groups.

NOTE K — REVENUE

NOTE 11 — REVENUE

Revenue is generated primarily from contracts to manufacture or process steel products.

14 unchanged sentences

Manufactured Pipe.

The following table disaggregates our revenue by product for each of our reportable business segments for the three and nine months ended December 31, 2024 and 2023 , respectively (in thousands):

The following table disaggregates our revenue by product for each of our reportable business segments for the three months ended June 30, 2025 and 2024 , respectively (in thousands):

Three Months Ended

Nine Months Ended

Flat-Roll Segment:

3 unchanged sentences

124,067 103,387

86,144 106,424 286,910 352,148

Tubular Segment:

2 unchanged sentences

10,710 11,164

NOTE L — STOCKHOLDERS’ EQUITY

The following tables reflect the changes in stockholders’ equity for each of the nine months ended December 31, 2024 and December 31, 2023 (in thousands):

Comprehensive

NOTE 12 — STOCKHOLDERS’ EQUITY

The following tables reflect the changes in stockholders’ equity for each of the three months ended June 30, 2025 and June 30, 2024 (in thousands):

BALANCE AT MARCH 31, 2025

3 unchanged sentences

— 123 — — 123

Repurchase of shares

— — — ( 123 ) — ( 123 )

Cash dividends ($ 0.04 per share)

— — — — ( 279 ) ( 279 )

BALANCE AT JUNE 30, 2024

$ 8,873 $ — $ 35,294 $ ( 13,052 ) $ 98,572 $ 129,687

— — — — ( 675 ) ( 675 )

Paid in capital – restricted stock units

— — 42 — — 42

Repurchase of shares

— — — ( 11 ) — ( 11 )

Cash dividends ($ 0.04 per share)

— — — — ( 279 ) ( 279 )

BALANCE AT SEPTEMBER 30, 2024

$ 8,873 $ — $ 35,336 $ ( 13,063 ) $ 97,618 $ 128,764

— — — — ( 1,152 ) ( 1,152 )

Paid in capital – restricted stock units

Issuance of restricted stock

90 ( 90 ) — — —

3 unchanged sentences

— — — ( 286 ) ( 286 )

BALANCE AT DECEMBER 31, 2024

$ 8,873 $ — $ 35,368 $ ( 13,100 ) $ 96,188 $ 127,329

Comprehensive

BALANCE AT MARCH 31, 2023

$ 8,869 ( 317 ) $ 35,005 $ ( 7,778 ) $ 79,653 $ 115,432

— — — — 7,690 7,690

Other comprehensive income

— 317 — — — 317

Paid in capital – restricted stock units

— — 78 — — 78

Cash dividends ($ 0.02 per share)

— — — — ( 148 ) ( 148 )

BALANCE AT JUNE 30, 2025

$ 8,967 $ 35,427 $ ( 13,110 ) $ 105,996 $ 137,280

— — — — 3,513 3,513

Paid in capital – restricted stock units

— — 78 — — 78

Repurchase of shares

— — — ( 3 ) — ( 3 )

Cash dividends ($ 0.02 per share)

— — — — ( 148 ) ( 148 )

BALANCE AT SEPTEMBER 30, 2023

BALANCE AT MARCH 31, 2024

$ 8,873 $ 35,247 $ ( 12,929 ) $ 96,284 $ 127,475

1 unchanged sentence

Paid in capital – restricted stock units

— — 37 — — 37

Repurchase of shares

2 unchanged sentences

— — — ( 279 ) ( 279 )

BALANCE AT DECEMBER 31, 2023

BALANCE AT JUNE 30, 2024

$ 8,873 $ 35,294 $ ( 13,052 ) $ 98,572 $ 129,687

NOTE M — OTHER COMPREHENSIVE INCOME

The following table summarizes the tax effects on each component of Other Comprehensive Income for the nine months ended December 31, 2023 (in thousands):

Nine Months Ended December 31, 2023

Cash flow hedges

Other comprehensive income

NOTE N — EARNINGS PER SHARE

NOTE 13 — EARNINGS PER SHARE

Basic and dilutive net earnings per share is computed based on the following information (in thousands, except for share data):

Three Months Ended

Nine Months Ended

Numerator (basic and diluted)

Net earnings (loss)

Allocation to unvested restricted stock units

Net earnings (loss) attributable to common shareholders

$ 5,028 $ 2,567

Allocation to unvested restricted stock awards

Net earnings attributable to common shareholders

$ 4,961 $ 2,556

Denominator (basic and diluted)

Weighted average common shares outstanding

For the nine months ended December 31, 2024 and 2023 , the Company allocated dividends and undistributed earnings to the unvested restricted stock units.

As the restricted stock qualifies as participating securities, the following restricted stock units were not accounted in the computation of weighted average diluted common shares outstanding under the two -class method:

6,965,880 6,939,208

For the three months ended June 30, 2025 and 2024 , the Company allocated dividends and undistributed earnings to the unvested restricted stock awards.

As the restricted stock qualifies as participating securities, the following restricted stock awards were not accounted in the computation of weighted average diluted common shares outstanding under the two -class method:

Three Months Ended

Nine Months Ended

Restricted Stock Units

NOTE O — SUPPLEMENTAL CASH FLOW INFORMATION

The Company paid interest o f approximately $ 2.2 million and $ 2.1 million during the nine months ended December 31, 2024 and 2023 , respectively.

Additionally, the Company paid income taxes of approximately $ 2.9 million and $ 2.8 million during the nine months ended December 31, 2024 and 2023 , respectively.

NOTE P — INCOME TAXES

For the nine month periods ended December 31, 2024 and 2023 , the Company recorded income tax provisio ns of approximately $ 0.1 million and $ 3.8 million, respectively.

For the nine months ended December 31, 2024 , the effective tax rate differed from the federal statutory rate due primarily to the tax effect of restricted stock vesting during the period with this impact partially reduced by the inclusion of state tax expenses in the provision.

For the nine months ended December 31, 2023 , the effective tax rate differed from the federal statutory rate due primarily to the inclusion of state tax expenses in the provision.

Restricted Stock Awards

69,628 24,218

NOTE 14 — SUPPLEMENTAL CASH FLOW INFORMATION

The Company paid interest o f approximately $ 0.7 million during both the three months ended June 30, 2025 and 2024 .

Additionally, the Company paid income taxes of approximately $ 0.1 million during both the three months ended June 30, 2025 and 2024 .

NOTE 15 — INCOME TAXES

For the three months ended June 30, 2025 and 2024 , the Company recorded income tax provisio ns of approximately $ 1.6 million and $ 0.7 million, respectively.

For both quarters, the effective tax rate differed from the federal statutory rate due primarily to the inclusion of state tax expenses in the provision with this impact partially reduced by the tax effect of restricted stock vesting during the quarters .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements