Art's-Way posts third-quarter net loss as nine-month revenue rises 12.3%

ARMSTRONG, IOWA, October 9, 2026 - Art's-Way Manufacturing Co., Inc. (Nasdaq: ARTW) reported a net loss of $140,000 for the third quarter ended August 31, 2026, while consolidated sales for the first nine months of fiscal 2026 increased by 12.3% to $20,110,000.

The company's financial results show a shift in performance between the single quarter and the year-to-date period. For the three months ended August 31, 2026, sales decreased by $816,000, or 12.7%, to $5,615,000 compared to the same period in fiscal 2025. This decline resulted in an earnings per share (EPS) of $(0.03), contrasting with a net income of $254,000 and EPS of $0.05 reported in the prior year quarter.

Marc McConnell, President, CEO, and Chairman of Art's-Way Manufacturing, stated that the third-quarter results are not entirely representative of the year's evolution. He noted that strong demand for livestock equipment has kept Agricultural Equipment sales ahead of 2025 levels. In the Modular Buildings segment, reduced quarterly revenue was attributed to the timing of revenue recognition on projects under contract.

For the nine months ended August 31, 2026, consolidated net income was $230,000, down from $1,680,000 in the same period of fiscal 2025. The company identified a key factor in this comparison: it received $1,154,000 of Employee Retention Credit net of income tax in the second quarter of fiscal 2025 that was not repeated in fiscal 2026.

In the Agricultural Products segment, sales increased by $1,237,000, or 12.4%, for the nine months ended August 31, 2026. However, the segment posted a net loss of $725,000 for the period, compared to a net income of $139,000 in fiscal 2025. This prior year figure was positively impacted by a $976,000 Employee Retention Credit refund. McConnell attributed increased demand for grinder mixers, manure spreaders, and bale processors to strong livestock prices. The company also noted that sugar beet equipment demand declined as beet prices fell in the first fiscal quarter of 2026.

The Modular Buildings segment saw sales increase by $962,000, or 12.1%, for the nine months ended August 31, 2026. Net income for this segment was $955,000 for the period, compared to $1,541,000 in fiscal 2025. The prior year result included a $179,000 Employee Retention Credit refund. McConnell stated that current backlog is the highest in the segment's history and is expected to carry operations through the end of fiscal 2027.

Gross profit as a percentage of sales declined by 2.1% to 27.9% for the nine months ended August 31, 2026. Operating expenses as a percentage of sales increased by 0.2% to 25.1% for the same period. The company cited rising material and operating costs as putting pressure on margins across both segments.

Basic and diluted income per share for the first nine months of fiscal 2026 was $0.04, compared to $0.33 for the same period in fiscal 2025. Weighted average shares outstanding for the nine months were 5,176,868 in fiscal 2026 and 5,085,183 in fiscal 2025.

Art's-Way Manufacturing is a diversified manufacturer and distributor of equipment serving agricultural and research needs. The company has operated for over 70 years and has approximately 100 employees across two branch locations.