Art’s-Way Manufacturing Co., Inc. (Nasdaq:ARTW) reported a 12.3% increase in sales for the first nine months of fiscal 2026, although revenue declined in the third quarter and profitability was affected by higher costs. The periods ended August 31, 2026.
The company recorded sales growth of $2,199,000 for the nine-month period compared with fiscal 2025. Third-quarter sales fell by $816,000, or 12.7%.
Art’s-Way reported net income of $230,000 for the first nine months of fiscal 2026, while the third quarter produced a net loss of $140,000. Operating income declined by 2.1% for the nine-month period.
Gross profit as a percentage of sales fell by 2.1% to 27.9%, while operating expenses as a percentage of sales increased by 0.2% to 25.1%. Income per basic and diluted share was $0.04, compared with $0.33 in the same period of fiscal 2025.
The year-on-year comparison was also affected by an Employee Retention Credit payment. Art’s-Way received $1,154,000 net of income tax in Q2 of fiscal 2025, which was not repeated in fiscal 2026.
Agricultural Products sales rose $1,237,000, or 12.4%, for the first nine months. Gross profit as a percentage of sales increased by 4.0% to 28.4%, while operating expenses as a percentage of sales increased by 1.1% to 34.6%.
The segment’s operating loss improved by $215,000. However, it reported a net loss of $725,000, compared with net income of $139,000 in the corresponding period of fiscal 2025. An Employee Retention Credit refund had increased fiscal 2025 net income in the segment by $976,000.
Management said demand for grinder mixers, manure spreaders and bale processors had increased, attributing much of the change to strong livestock prices. Grinder mixer sales increased approximately $1,523,000 year-on-year.
The company described the wider agricultural outlook as bleak, citing modest row crop prices and rising input costs. Sugar beet equipment demand was down after sugar beet prices declined in the first fiscal quarter of 2026. Art’s-Way also said it was carrying elevated whole good inventory levels in beet and manure spreading equipment.
The price of steel used in agricultural equipment increased over 40% from fiscal year end. Management said rising oil prices may challenge margins for the rest of fiscal 2026.
Modular Buildings sales increased $962,000, or 12.1%, for the first nine months of fiscal 2026. Revenue fell $898,000, or 26.0%, in the third quarter.
Management attributed the quarterly decline largely to the timing of revenue recognition. The company said there was a lull in contract progress as on-site projects concluded and design work was completed for construction contracts that later became backlog.
Gross profit as a percentage of sales declined by 9.2% to 27.2%. Operating expenses as a percentage of sales decreased by 0.09% to 13.2%, while net income was $955,000, compared with $1,541,000 in the same period of fiscal 2025.
Art’s-Way attributed the margin reduction to a warrantied agricultural modular building sold at cost, project overages on site work and contingencies that became profits in the first quarter of fiscal 2025 but were not repeated in the first nine months of fiscal 2026. An Employee Retention Credit refund had positively affected the segment’s fiscal 2025 net income by $179,000.
Management said the Modular Buildings backlog was the highest in the segment’s history and was expected to carry through the end of fiscal 2027. The company also said demand remained strong, while noting that material and operating costs were putting pressure on margins.
Art’s-Way Manufacturing is a diversified manufacturer and distributor serving agricultural and research needs. Its reporting segments are Agricultural Products and Modular Buildings. The company’s equipment includes manure spreaders, forage boxes, high dump carts, bale processors, graders, land planes, sugar beet harvesters and grinder mixers.
Sales increased $2,199,000, or 12.3%, for the first nine months of fiscal 2026.
Third-quarter sales decreased $816,000, or 12.7%.
Net income for the nine-month period was $230,000, while third-quarter net loss was $140,000.
Agricultural Products and Modular Buildings sales increased on a nine-month basis, but both segments faced profitability pressures.
Management said the Modular Buildings backlog was expected to carry through the end of fiscal 2027, while higher steel and operating costs affected margins.
Art's-Way Manufacturing Co., Inc. announced its financial results for the third quarter and first nine months of fiscal 2026 on October 9, 2026. The periods ended August 31, 2026.
Art's-Way Manufacturing Co., Inc. is a diversified manufacturer and distributor serving agricultural and research needs. Its two reporting segments are Agricultural Products and Modular Buildings, and its equipment includes manure spreaders, forage boxes, high dump carts, bale processors, graders, land planes, sugar beet harvesters and grinder mixers.
Art's-Way Manufacturing Co., Inc.'s sales increased $2,199,000, or 12.3%, for the nine months ended August 31, 2026, compared with the same period in fiscal 2025. Sales decreased $816,000, or 12.7%, for the three months ended August 31, 2026.
Art's-Way Manufacturing Co., Inc.'s gross profit as a percentage of sales declined by 2.1% to 27.9%, operating expenses as a percentage of sales increased by 0.2% to 25.1%, and operating income declined by 2.1% for the nine months ended August 31, 2026. The company reported net income of $230,000 for the nine-month period, compared with the prior-period result, while the third quarter produced a net loss of $140,000.
Art's-Way Manufacturing Co., Inc. reported income per basic and diluted share of $0.04 for the first nine months of fiscal 2026. This compared with income per basic and diluted share of $0.33 for the same period in fiscal 2025.
Art's-Way Manufacturing Co., Inc. received $1,154,000 of Employee Retention Credit net of income tax in Q2 of fiscal 2025, which was not repeated in fiscal 2026 and affected the nine-month comparison. In the Agricultural Products segment, a refund positively impacted fiscal 2025 net income by $976,000, while a refund positively impacted Modular Buildings net income by $179,000.
Agricultural Products sales increased $1,237,000, or 12.4%, for the nine months ended August 31, 2026, while grinder mixer sales increased approximately $1,523,000 year-on-year. Management attributed increased demand for grinder mixers, manure spreaders and bale processors mostly to strong livestock prices, while dealer inventories had returned to normal stocking levels.
Art's-Way Manufacturing Co., Inc. said the agricultural sector outlook remains bleak because of modest row crop prices and rising input costs. Sugar beet equipment demand was down noticeably after sugar beet prices declined in the first fiscal quarter of 2026, elevated whole good inventory remained in beet and manure spreading equipment, and the price of steel used for agricultural equipment had increased over 40% from fiscal year end; management said rising oil prices may challenge margins for the rest of fiscal 2026.
Modular Buildings sales increased $962,000, or 12.1%, for the nine months ended August 31, 2026, but gross profit as a percentage of sales declined by 9.2% to 27.2%. Net income was $955,000, compared with $1,541,000 for the same period of fiscal 2025, and management attributed the margin decrease to a warrantied agricultural modular building sold at cost, project overages on site work and contingencies that became profits in the first quarter of fiscal 2025 but were not repeated.
Modular Buildings sales decreased $898,000, or 26.0%, for the three months ended August 31, 2026. Management said the decline was largely attributable to the timing of revenue recognition, including a lull in progress on contracts as on-site projects were concluded and design work was completed for expected construction contracts that later became backlog.
Art's-Way Manufacturing Co., Inc. said current Modular Buildings backlog is the highest in the history of the segment and is expected to carry it through the end of fiscal 2027. Management also said demand remains strong and that significant projects in the pipeline constitute the largest backlog in the company's history, while noting that rising material and operating costs are putting pressure on margins.
Art's-Way Manufacturing Co., Inc.'s shares trade on Nasdaq under the ticker symbol ARTW, shown in the announcement as Nasdaq:ARTW.