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Note 9 - Derivative Financial Instruments | 6 Months Ended
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Sep. 30, 2025
Notes to Financial Statements |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 9 — DERIVATIVE FINANCIAL INSTRUMENTS From time to time, we expect to utilize hot-rolled coil futures, options or swaps to reduce our exposure to commodity price risk that is inherent in our business. For the six months ended September 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. The Company’s exposure to credit risk includes the counterparty’s failure to fulfill its performance obligations under the terms of the derivative contract. The Company attempts to minimize its credit risk by entering into transactions with high quality counterparties and uses exchange-traded derivatives when available. Market risk is the risk that the value of the financial instrument might be adversely affected by a change in commodity prices. The Company manages market risk by continually monitoring exposure within its risk management strategy and portfolio. For any transactions designated as hedging instruments for accounting purposes, we document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking the various hedge transactions. We also assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flows or fair value of hedged items. The Company has forward physical purchase supply agreements in place with some of its suppliers for a portion of its monthly physical steel needs. 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 September 30, 2025 and March 31, 2025, the Company did not have any derivatives 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 September 30, 2025 (in thousands):
| Asset Derivatives |  | Liability Derivatives |
| Balance Sheet |  |  |  |  | Balance Sheet |  |  |  |
Derivatives not designated as hedging instruments: | Location |  | Fair Value |  | Location |  | Fair Value |
Hot-rolled coil steel contracts | Current portion of derivative assets |  | $ | 990 |  | Current portion of derivative liability |  | $ | 142 |
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 March 31, 2025 (in thousands):
| Asset Derivatives |  | Liability Derivatives |
| Balance Sheet |  |  |  |  | Balance Sheet |  |  |  |
Derivatives not designated as hedging instruments: | Location |  | Fair Value |  | Location |  | Fair Value |
Hot-rolled coil steel contracts | Current portion of derivative assets |  | $ | 636 |  | Current portion of derivative liability |  | $ | 287 |
All derivatives are presented on a gross basis on the Consolidated Balance Sheets. During the six months ended September 30, 2025 and 2024, the Company entered into hot-rolled coil futures and swap 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 six months ended September 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 and six months ended September 30, 2025 (in thousands):
|  |  | Gain Recognized in Earnings |
| Location of Gain |  | for the Three Months Ended |
| Recognized in Earnings |  | September 30, 2025 |
Hot-rolled coil steel contracts | Gain on economic hedges of risk |  | $ | 851 |
|  |  | Gain Recognized in Earnings |
| Location of Gain |  | for the Six Months Ended |
| Recognized in Earnings |  | September 30, 2025 |
Hot-rolled coil steel contracts | Gain on economic hedges of risk |  | $ | 1,127 |
The following table summarizes the gain recognized in earnings for derivative instruments not designated as hedging instruments during the three and six months ended September 30, 2024 (in thousands):
|  |  | Gain Recognized in Earnings |
| Location of Gain |  | for the Three Months Ended |
| Recognized in Earnings |  | September 30, 2024 |
Hot-rolled coil steel contracts | Gain on economic hedges of risk |  | $ | 194 |
|  |  | Gain Recognized in Earnings |
| Location of Gain |  | for the Six Months Ended |
| Recognized in Earnings |  | September 30, 2024 |
Hot-rolled coil steel contracts | Gain on economic hedges of risk |  | $ | 5,569 |
The following table summarizes the Company's economic (non-designated) derivative instruments outstanding at September 30, 2025 (in thousands):
| Notional Amount |  | Maturity Date |
Hot-rolled coil steel contracts | $ | (28,108 | ) | October 2025 - December 2026 |
The following table summarizes the Company's economic (non-designated) derivative instruments outstanding at March 31, 2025 (in thousands):
| Notional Amount |  | Maturity Date |
Hot-rolled coil steel contracts | $ | (9,522 | ) | April 2025 - December 2025 |
At both September 30, 2025 and March 31, 2025, cash of approximately $0.5 million 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 September 30, 2025 and March 31, 2025.

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