Art's-Way Manufacturing Reports 19.1% Revenue Decline, Net Loss of $94,000 for Fiscal Year Ending November 30, 2024

Art's-Way Manufacturing Co., Inc. reported a consolidated revenue of $24.5 million for the fiscal year ending November 30, 2024, marking a 19.1% decline from $30.3 million in the previous year. The company's Agricultural Products segment, which accounted for 59.9% of total revenue, experienced a significant revenue drop of 34.7%, from $22.5 million in 2023 to $14.7 million in 2024. This decline was attributed to lower commodity prices, high borrowing rates, and oversaturated dealer inventories. Conversely, the Modular Buildings segment saw a revenue increase of 25.9%, rising from $7.8 million to $9.8 million, driven by heightened demand in research markets.

The company's operating income from continuing operations was $461,000, a decrease from $1.5 million in the prior year. Art's-Way reported a net loss of $94,000 from continuing operations, contrasting with a net income of $267,000 in 2023. The overall financial performance was impacted by inflationary pressures, particularly in raw material costs, and a strategic focus on cost reductions in high-demand product lines. The company also recorded a consolidated net income of $307,000, bolstered by the successful sale of its Tools segment's remaining real estate for $1.8 million.

Operationally, Art's-Way Manufacturing has streamlined its workforce, reducing employee headcount to 90 as of November 30, 2024, down from 110 in the previous year. The company has also ceased operations in its Tools segment, which was officially discontinued in July 2023. The Agricultural Products segment's backlog of orders decreased to approximately $3.5 million as of February 4, 2025, down from $4.4 million a year prior, reflecting a stagnant agricultural economy. In contrast, the Modular Buildings segment's backlog was approximately $2.4 million, down from $6.2 million, although strong leads in the engineering phase are expected to convert into contracts.

Looking ahead, Art's-Way anticipates continued challenges in the agricultural market due to fluctuating commodity prices and high interest rates. However, the company expects to leverage its Modular Buildings segment's growth potential and the anticipated receipt of approximately $1.2 million from the Employee Retention Credit to bolster its financial position. Management remains optimistic about improving operational efficiency and margin gains in fiscal 2025, aiming to align production with market demand while maintaining a positive banking relationship and sufficient working capital.