Art's Way Reports Improved Results With Modular Buildings Growth Offsetting Ag Market Challenges

Marc McConnell, the Company's president, CEO and chairman, reports, "We continue to be pleased by operational progress and improved profitability during our third quarter and year to date despite persistent headwinds in the ag equipment space. During the quarter, we again benefited greatly from strong performance by our Modular Buildings segment while our Agricultural Products segment continued to experience modest demand. We remain focused on enhancing our products and customer experience to improve our market position in both segments while also further improving our balance sheet and cashflow positions. We are cautiously optimistic that strong profitability among livestock producers will lead to improvement in demand in the near term and into 2026."

Consolidated - Continuing Operations

• Sales of $6,432,000 for Q3 of fiscal 2025, a 9.5% increase from Q3 2024, and sales of $17,910,000 for the nine months ended August 31, 2025, a 2.3% decline from the same period of 2024.

• Nine-month gross profit as a percentage of sales improved 1.2% compared to the first nine months of fiscal 2024.

• Operating expenses decreased by 13.1% for the nine months ended August 31, 2025 compared to the same period in fiscal 2024.

• Net income of $1,680,000 for the nine months ended August 31, 2025, a $2,107,000 improvement from the same period in fiscal 2024. We received an Employee Retention Credit refund during the nine months ending August 31, 2025 that positively impacted net income by $1,154,000.

Agricultural Products

• Sales of $2,983,000 for Q3 of fiscal 2025, a 0.2% decline from the same period of 2024, and sales of $9,956,000 for the nine months ended August 31, 2025, a 15.5% decline from the first nine months of fiscal 2024.

• Nine-month gross profit as a percentage of sales declined 3.4% compared to the first nine months of fiscal 2024.

• Operating expenses decreased by 23.0% for the nine months ended August 31, 2025 compared to the same period in fiscal 2024.

• Net income of $139,000 for the nine months ended August 31, 2025, an improvement of $1,337,000 from the same period in fiscal 2024. We received an Employee Retention Credit refund during the nine months ended August 31, 2025 that positively impacted net income by $976,000 in this segment.