Friedman Industries is a metals processor and manufacturer that purchases steel coil from mills to produce finished products for industrial customers. The company operates two segments: flat-roll and tubular. The flat-roll segment accounts for 92% of sales and involves processing hot-rolled steel coil into sheets, plates, and slit coils. Friedman uses temper mills, cut-to-length lines, and laser cutters at six facilities across the Midwest, Southeast, and Southwest to improve steel flatness and meet customer specifications. These products are sold to manufacturers of metal buildings, railcars, heavy equipment, and trailers. The tubular segment produces electric resistance welded steel pipe for oil, gas, and structural applications, selling primarily to steel and pipe distributors. Friedman’s business model depends on the metal margin, which is the spread between raw material costs and finished product selling prices. Since Friedman owns most of the inventory it processes, profitability is sensitive to steel price volatility and inventory positioning. Higher shipping volumes also allow the company to better absorb fixed processing costs. While the company primarily sells owned inventory, it also generates fee-based revenue by processing and storing customer-owned material. O'Neal Steel is the company's largest customer, accounting for 15% of sales.