ARMSTRONG, IA / ACCESS Newswire / July 9, 2026 / Art's-Way Manufacturing Co., Inc. (NASDAQ:ARTW) (the "Company"), a diversified manufacturer and distributor of equipment serving agricultural and research needs, announces its financial results for the second quarter and first six months of fiscal 2026.
Marc McConnell, the Company's President, CEO, and Chairman, reports, "We are pleased to report that the marked improvement we saw at the outset of our fiscal year continued into the second quarter, resulting in improving revenue and operating results. In our Agricultural Products segment, we have experienced demand growth in livestock-oriented products that have well outpaced the reduced demand in our sugar beet products. We view this as an overall positive result given the persistent challenges in the entirety of the farm equipment marketplace. We are especially pleased with the continued strong demand and profitability in our Modular Buildings segment, where growth and progress continue. Despite improving operating results, we acknowledge that material cost pressures have impacted our gross margins and we are thus focused on monitoring, managing, and improving margins in both businesses. Overall, we have an optimistic view of our opportunities in the quarters ahead and remain steadfastly focused on quality, innovation, and serving our customers well."
Consolidated
Sales increased $1,517,000, or 23.9% for the three months and increased $3,017,000, or 26.3% for the six months ended May 31, 2026 as compared to the same periods in fiscal 2025.
Gross profit as a percentage of sales declined by 3.8% for the six months ended May 31, 2026 as compared to the first six months of fiscal 2025.
Operating expenses decreased by 3.6% as a percentage of sales for the six months ended May 31, 2026 as compared to the same period in fiscal 2025. Operating income improved by 20.2% for the six months ended May 31, 2026 as compared to the same period in fiscal 2025.
Net income of $173,000 for the three months ended May 31, 2026 and $370,000 for the six months ended May 31, 2026. The Company received $1,154,000 of Employee Retention Credit net of income tax in Q2 of fiscal 2025 that was not repeated in fiscal 2026, which affects comparability.
Agricultural Products
Sales increased $348,000, or 8.6% for the three months and increased $1,155,000, or 16.6% for the six months ended May 31, 2026 as compared to the same periods in fiscal 2025.
Gross profit as a percentage of sales increased by 2.1% for the six months ended May 31, 2026 as compared to the first six months of fiscal 2025.
Operating expenses decreased by 7.2% for the six months ended May 31, 2026 as compared to the same period in fiscal 2025. Operating loss improved by $299,000 for the six months ended May 31, 2026 as compared to the same period in fiscal 2025.
Net loss of $208,000 for the six months ended May 31, 2026 compared to net income of $527,000 for the same period of fiscal 2025. We received an Employee Retention Credit refund during the six months ending May 31, 2025 that positively impacted net income by $976,000 in this segment.