Art's Way Manufacturing Reports Net Income of $1.48 Million in Q2 2025

Art's Way Manufacturing Co., Inc. reported its financial results for the second quarter and first half of fiscal 2025, revealing a net income of $1.48 million for the three months ending May 31, 2025, compared to a net loss of $33,340 in the same period last year. For the six months, the company recorded a net income of $1.43 million, a significant improvement from a loss of $498,380 in the prior year. Revenue for the second quarter was $6.34 million, down 5.8% from $6.73 million in the same quarter of fiscal 2024. For the first half, revenue decreased by 7.8% to $11.48 million from $12.45 million year-over-year.

The company's gross profit margin improved, reaching 32.5% for the second quarter and 31.0% for the first half, compared to 28.3% and 27.1%, respectively, in the previous year. The Agricultural Products segment saw a decline in sales, with second-quarter revenue of $4.03 million, down 11.6% from $4.56 million in the same quarter last year. Conversely, the Modular Buildings segment experienced growth, with second-quarter sales increasing by 6.3% to $2.31 million, and a 23.0% increase for the first half to $4.51 million.

Operationally, Art's Way Manufacturing has made strategic adjustments, including a reduction in workforce and administrative expenses, which contributed to improved profitability despite lower sales. The company has also focused on right-sizing its production capabilities to align with current market conditions. As of May 31, 2025, total assets stood at $20.88 million, a decrease from $21.24 million at the end of the previous fiscal year, while total liabilities dropped significantly to $7.26 million from $9.15 million.

Looking ahead, the company anticipates a gradual recovery in the agricultural market, driven by expected improvements in row crop prices and livestock demand. Art's Way plans to build inventory in anticipation of increased retail opportunities in the latter half of fiscal 2025. The company also reported a consolidated order backlog of $4.73 million as of July 7, 2025, down 39.3% from the previous year, reflecting a slowdown in demand following the planting season. However, the Modular Buildings segment remains optimistic about future project closings, which could sustain sales momentum.