ARTW

ARMSTRONG, IA / ACCESS Newswire / April 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 first quarter of fiscal 2026. Marc McConnell, the Company's President, CEO, and Chairman, reports, "We are pleased to have started the new year off showing significant improvement in both business units. While the Agricultural Product segment continues to face ongoing challenges, we are experiencing a meaningful improvement in demand for several of our key product categories, as evidenced by growth in our revenue and backlog. Similarly, our Modular Buildings segment has maintained the strong momentum we've seen in recent quarters and helped our overall profitability significantly. With improving performance and solid demand in both business units, we have reason for optimism moving forward despite tremendous uncertainty in the economy today." Consolidated - Q1 fiscal 2026 compared to Q1 fiscal 2025 Sales increase of $1,499,000 or 29.2%. Gross profit as a percentage of sales declined by 0.3%. Operating expenses decreased by 5.2% as a percentage of sales. Net income of $196,000 for the three months ended February 28, 2026, a $252,000 improvement from the same period in fiscal 2025. Agricultural Products - Q1 fiscal 2026 compared to Q1 fiscal 2025 Sales of $3,754,000 for Q1 of fiscal 2026, a 27.3% increase. Gross profit as a percentage of sales increased by 7.8%. Operating expenses decreased by 7.8%. Net income of $7,000, an improvement of $353,000. We have experienced increased demand this quarter, as compared to the same period in 2025, with increased sales on grinder mixers, manure spreaders and bale processors. While row crop commodity prices have increased from their lowest point in 2024, they remain substantially below the peak levels experienced in 2022. The slight increase in commodity prices and product availability did, however, lead to improved results for the first quarter of fiscal 2026. Livestock prices remained elevated through the first quarter of fiscal 2026 and are driving most of the demand for our agricultural products, as a large portion of our customer base raises livestock and row crops. Sugar beet prices declined in the first fiscal quarter of 2026 and we are expecting less demand for our sugar beet equipment for the remainder of fiscal 2026. To offset some of the anticipated decrease in demand, we are deploying a product specialist into our primary beet territory to drive new customer activity and technological development as we unveil a new product in that market for fiscal 2026. Our fall early order program ended with a 62% increase in orders on our non-beet equipment, while our beet orders were down 63%. Overall order book from the early order program was up 11%, which leads us to believe the agricultural market is entering a recovery despite continued increasing input costs. Our grinder mixer sales were up $909,000 year-on-year and was our most profitable product line for the first quarter of fiscal 2026. We continue to carry strong grinder mixer backlog into the second quarter of fiscal 2026 and foresee steady shipments in the second quarter of fiscal 2026. Steel prices continued to rise in the first quarter of fiscal 2026 and will challenge our strong first fiscal quarter margins. Modular Buildings - Q1 fiscal 2026 compared to Q1 fiscal 2025 Sales of $2,886,000 for Q1 2026, up 31.6%. Gross profit as a percentage of sales declined by 11.0%. Operating expenses declined by 1.5% as a percentage of sales. Net income of $189,000 for the three months ended February 28, 2026, a decline of $102,000. We carried strong modular building backlog into fiscal 2026, unlike a year ago, which drove the revenue increase this year. We experienced continued strong demand for our buildings on both the livestock and research sides in the first quarter of fiscal 2026. Current backlog is expected to carry us well into the third quarter of fiscal 2026, which is somewhat unusual given the sales life cycle in our Modular Buildings segment. Our leads remain abundant and we continue to be optimistic about the future prospects and continued success of this business segment. Our margin decrease in the first fiscal quarter of fiscal 2026 is due to the selling of a warrantied agriculture modular buildings at cost and project overages on site work while completing current contracts. Income (Loss) per Share: Income per basic and diluted share for the first fiscal quarter of 2026 was $0.04, compared to a loss per basic and diluted share of $0.01 for the same period in fiscal 2025. Art's-Way Manufacturing Co., Inc. Art's Way Manufacturing is a small, publicly traded company that specializes in equipment manufacturing. For over 65 years, it has been committed to designing and building high-quality machinery for all operations. It has approximately 100 employees across two branch locations: Art's Way Manufacturing in Armstrong, Iowa and Art's Way Scientific in Monona, Iowa. Art's Way manure spreaders, forage boxes, high dump carts, bale processors, graders, land planes, sugar beet harvesters and grinder mixers are designed to optimize production, increase efficiency and meet the growing demands of customers. Art's Way Manufacturing has two reporting segments: Agricultural Products and Modular Buildings. For more information, contact: Marc McConnell, President, Chief Executive Officer and Chairman 712-208-8467 [email protected] Or visit the Company's website at www.artsway.com/ Caution Regarding Forward-Looking Statements This release includes "forward-looking statements" within the meaning of federal securities laws. In some cases, you can identify forward-looking statements by the use of words such as "may," "should," "anticipate," "believe," "expect," "plan," "future," "intend," "could," "estimate," "predict," "hope," "potential," "continue," "foresee," "optimistic," "opportunity," or the negative of these terms or other similar expressions. Statements made in this release that are not strictly statements of historical facts, including the Company's expectations regarding: (i) the Company's business position; (ii) demand and potential growth within the Company's business segments; (iii) future results, including, but not limited to, revenue and margin expectations, expectations with respect to the impact of price increases and tariffs, and expectations with respect to backlog and product mix; (iv) the Company's ability to increase production with capital investments and other activities, (v) future agricultural sales and plans to enter into building contracts; (vi) cash flows and plans to fund strategic initiatives and pay down debt; and (vii) the benefits of the Company's business model and strategy, are forward-looking statements. Statements of anticipated future results are based on current expectations and are subject to a number of risks and uncertainties, including, but not limited to: customer demand for the Company's products; credit-worthiness of the Company's customers; the Company's ability to operate at lower expense levels; the Company's ability to complete projects in a timely and efficient manner in accordance with customer specifications; the Company's ability to renew or obtain financing on reasonable terms; the Company's ability to repay current debt, continue to meet debt obligations and comply with financial covenants; inflation and tariffs and their effect on the Company's supply chain and demand for its products; domestic and international economic conditions; the Company's ability to attract and maintain an adequate workforce in a competitive labor market; factors affecting the strength of the agricultural sector; the cost of raw materials; unexpected changes to performance by any of the Company's operating segments; and other factors detailed from time to time in the Company's public filings with the Securities and Exchange Commission. Actual results may differ materially from management's expectations. Readers are cautioned not to place undue reliance upon any such forward-looking statements. The Company does not intend to update forward-looking statements other than as required by law. SOURCE: Art's-Way Manufacturing Co. View the original press release on ACCESS Newswire

ARMSTRONG, IA / ACCESS Newswire / February 4, 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 fiscal 2025. Marc McConnell, the Company's President, CEO, and Chairman, reports, "Despite another year of significant market challenges and uncertainty, I am pleased with the progress we made as a company in 2025 building the Company for future growth in both business units. While we continued weathering the storm in the Agricultural Products segment, we managed to have yet another very robust year in our Modular Buildings segment. We remain focused on enhancing our products and customer experience to improve our market position in each segment while maintaining focus on balance sheet health and cashflow. We enter 2026 with a sense of optimism and see some improving conditions that could drive demand growth for our products." Consolidated - continuing operations Sales of $22,975,000 in fiscal 2025 compared to $24,499,000 in fiscal 2024, a $1,524,000, or 6.2%, decrease. Twelve-month gross profit as a percentage of sales declined 2.5% compared to fiscal 2024. Operating expenses decreased by approximately $872,000, or 12.7%, in fiscal 2025 compared to fiscal 2024. Net income from continuing operations of $1,035,000 for fiscal 2025 compared to net loss from continuing operations of $94,000 in fiscal 2024. We received an Employee Retention Credit refund in fiscal 2025 that positively impacted net income from continuing operations by $1,052,000. Agricultural Products Sales of $12,749,000 for fiscal 2025 compared to $14,663,000 in fiscal 2024, a decrease of $1,914,000, or 13.1%. Twelve-month gross profit as a percentage of sales declined 4.9% compared to fiscal 2024. Operating expenses decreased by $1,226,000, or 21.6%, in fiscal 2025 compared to fiscal 2024. Net loss of $341,000 in fiscal 2025 compared to net loss of $1,594,000 in fiscal 2024. We received an Employee Retention Credit refund in fiscal 2025 that positively impacted net income by $889,000 in this segment. Commodity prices in the agricultural market, particularly on row crops, which dropped below five-year averages in fiscal 2024, continued to be weak in fiscal 2025. This led to a second straight fiscal year of decreased demand. Our cattle customers benefited from record beef prices in fiscal 2025, which helped offset some of the decreased demand. We believe our experience in fiscal 2025 was similar to many others in our industry. Our agriculture business is highly cyclical, and with forecasts of continued interest rate relief for farmers, as well as continued increases in commodity prices and easing of rising input costs, we believe market conditions could begin to improve in fiscal 2026. The price of steel was up 26% from 2024 fiscal year-end to the end of fiscal 2025, which had a major impact on gross profit, however, workforce efficiency gains helped soften the blow. We also saw rising insurance costs, utility costs and supply costs. We expect demand for steel to continue to be strong in fiscal 2026, which likely means that steel prices will remain elevated until supply increases. We anticipate that recent declines in oil prices could help slow fiscal 2026 price increases. We made a concerted effort to reduce operating expenses in fiscal 2025 that we believe will be fruitful to the bottom line when markets improve. Modular Buildings Sales of $10,226,000 for fiscal 2025, an increase of $390,000, or 4.0%, from $9,836,000 in fiscal 2024. Twelve-month gross profit as a percentage of sales improved 0.1% compared to fiscal 2024. Operating expenses increased by $355,000 in fiscal 2025, or 30.0%, compared to fiscal 2024. Net income of $1,376,000 for fiscal 2025 compared to net income of $1,500,000 in fiscal 2024. We received an Employee Retention Credit refund in fiscal 2025 that positively impacted net income by $163,000 in this segment. We benefited from strong livestock prices in this segment, which increased our agricultural building sales by approximately $1,355,000, which was a 49% increase from fiscal 2024. We continued to see strong demand on the research side and expect continued success in fiscal 2026. Our reputation as an industry leader in the research modular building industry is gaining traction, which has garnered the attention of repeat customers. Most notably, we have buildings that are being used by companies which are renowned for being leaders in xenotransplantation and cancer research. Our operations team has built a strong core that is consistently hitting and outperforming budgets and while maintaining a strong standard of quality. Effective leadership in this division has successfully retained quality employees that are performing at a high level. We paid approximately $74,000 more in commission expense in fiscal 2025 due to the large increase in agricultural building sales. We also experienced an increase in sales salaries with our new business development manager assuming sales responsibilities in tandem with our long-time primary sales leader, President Dan Palmer, who will remain with the Company in a part-time capacity through the second quarter of fiscal 2026 and possibly beyond. Net Income (Loss) per Share - continuing operations: Net income per basic and diluted share for fiscal 2025 was $0.20, compared to a net loss per basic and diluted share of $0.02 in fiscal 2024. Art's-Way Manufacturing Co., Inc. Art's Way Manufacturing is a small, publicly traded company that specializes in equipment manufacturing. For over 70 years, it has been committed to designing and building high-quality machinery for all operations. It has approximately 100 employees across two branch locations: Art's Way Manufacturing in Armstrong, Iowa and Art's Way Scientific in Monona, Iowa. Art's Way manure spreaders, forage boxes, high dump carts, bale processors, graders, land planes, sugar beet harvesters and grinder mixers are designed to optimize production, increase efficiency and meet the growing demands of customers. Art's Way Manufacturing has two reporting segments: Agricultural Products and Modular Buildings. For more information, contact: Marc McConnell, President, Chief Executive Officer and Chairman 712-208-8467 [email protected] Or visit the Company's website at www.artsway.com/ Caution Regarding Forward-Looking Statements This release includes "forward-looking statements" within the meaning of federal securities laws. In some cases, you can identify forward-looking statements by the use of words such as "may," "should," "anticipate," "believe," "expect," "plan," "future," "intend," "could," "estimate," "predict," "hope," "potential," "continue," "foresee," "optimistic," "opportunity, possibly," or the negative of these terms or other similar expressions. Statements made in this release that are not strictly statements of historical facts, including the Company's expectations regarding: (i) the Company's business position; (ii) demand and potential growth within the Company's business segments; (iii) future results, including, but not limited to, revenue and margin expectations, expectations with respect to the impact of price increases and tariffs, and expectations with respect to backlog and product mix; (iv) the Company's ability to increase production with capital investments and other activities, (v) future agricultural sales and plans to enter into building contracts; (vi) cash flows and plans to fund strategic initiatives and pay down debt; and (vii) the benefits of the Company's business model and strategy, are forward-looking statements. Statements of anticipated future results are based on current expectations and are subject to a number of risks and uncertainties, including, but not limited to: customer demand for the Company's products; credit-worthiness of the Company's customers; the Company's ability to operate at lower expense levels; the Company's ability to complete projects in a timely and efficient manner in accordance with customer specifications; the Company's ability to renew or obtain financing on reasonable terms; the Company's ability to repay current debt, continue to meet debt obligations and comply with financial covenants; inflation and tariffs and their effect on the Company's supply chain and demand for its products; domestic and international economic conditions; the Company's ability to attract and maintain an adequate workforce in a competitive labor market; factors affecting the strength of the agricultural sector; the cost of raw materials; unexpected changes to performance by any of the Company's operating segments; and other factors detailed from time to time in the Company's public filings with the Securities and Exchange Commission. Actual results may differ materially from management's expectations. Readers are cautioned not to place undue reliance upon any such forward-looking statements. The Company does not intend to update forward-looking statements other than as required by law. SOURCE: Art's-Way Manufacturing Co. View the original press release on ACCESS Newswire

ARMSTRONG, IA / ACCESS Newswire / October 7, 2025 / 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 third quarter of fiscal 2025. 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. We have experienced decreased demand for the last six fiscal quarters due to difficult agricultural market conditions highlighted by high interest rates, increasing input costs and low row crop prices. Although our inventory decreased from heightened levels in fiscal 2024, many dealers are still sitting on inventory from other equipment manufacturers, which hampers our ability to get these dealers to stock more of our equipment. We believe product availability will be key for the next two fiscal quarters to capitalize on retail opportunities and yearend tax buying. Strategically, we are continuing to build inventory through our fiscal year end despite low demand in order to be responsive to farmers needs this fall. Livestock prices, predominately cattle, continue to be at all-time highs in fiscal 2025 and have driven strong grinder mixer sales activity thus far in fiscal 2025. We expect cattle farmers to have strong earnings in 2025, and we could potentially see retail opportunities in an attempt to offset tax liability prior to the calendar year-end. The agriculture market is highly cyclical, and we believe this is the bottom of the cycle. We anticipate that conditions will start to improve in the next 9 to 15 months in our market. Our efforts in fiscal 2024 to right-size our production and administrative staff have reduced our operating expenses which is aiding in our efforts to weather the bottom of the cycle. Our fall early order program starts in October and runs through January 15th. The sales decreases for the three- and nine- months periods ended August 31, 2025 compared to the same periods in fiscal 2024, resulted in less variable margin to cover our fixed costs comparatively while inflationary forces also negatively affected our gross margin. Steel prices began to rise in February 2025 due to tariff uncertainty and infrastructure projects that impacted domestic demand. While steel prices have dropped from their peak in April 2025, we have not seen them return to 2024 levels. We are also paying higher prices from tariff charges for imported products, which is negatively affecting our margin. We are exploring reshoring options for these items in an attempt to reduce the gross margin impact. We expect to pass on a 3-5% price increase to our customers with our fall early order program due to rising costs from our suppliers. Modular Buildings Sales of $3,449,000 for Q3 2025, up 19.4% from Q3 2024. Nine-month sales of $7,954,000, a 21.4% increase from the first nine months of fiscal 2024. Nine-month gross profit as a percentage of sales improved 8.9% compared to the first nine months of fiscal 2024. Operating expenses increased by 40.3% for the nine months ended August 31, 2025 compared to the same period in fiscal 2024. The increase is due to overlap in sales positions discussed below and increased commission expense due to an increase in ag building sales. Net income of $1,542,000 for the nine months ended August 31, 2025, an improvement of $771,000 from the same period in fiscal 2024. We received an Employee Retention Credit refund in the nine months ended August 31, 2025 that positively impacted net income by $179,000 in this segment. Consistent execution on our backlog by our project managers and production team has driven sales up approximately 20% for the quarter and year to date ended August 31, 2025. We continue to grow our reputation with impactful projects in the custom research and laboratory fields in fiscal 2025. Quoting activity and custom build inquiries continue to remain strong in Q4 of fiscal 2025, despite earlier concerns about a pullback of government grants and funding. In Q1 of fiscal 2025, we brought on a Director of Business Development and Sales who replaced our then-serving President and Director of Sales. Our outgoing President and Director of Sales is working part-time as a consultant to maintain customer relationships. With the additional sales help, we are exploring new markets where our custom buildings can compete in the marketplace, including, but not limited to: datacenters, wastewater treatment facilities, petroleum and mining analysis labs, chemical production and transportation offices. We continue to see strong margins in this segment from increased workforce proficiency and software improvements, which have improved our data analytics and ability to remain within budget. Income (Loss) per Share: Income per basic and diluted share for the first nine months of fiscal 2025 was $0.33, compared to a loss per basic and diluted share of $0.08 for the same period in fiscal 2024. Art's-Way Manufacturing Co., Inc. Art's Way Manufacturing is a small, publicly traded company that specializes in equipment manufacturing. For over 65 years, it has been committed to designing and building high-quality machinery for all operations. It has approximately 100 employees across two branch locations: Art's Way Manufacturing in Armstrong, Iowa and Art's Way Scientific in Monona, Iowa. Art's Way manure spreaders, forage boxes, high dump carts, bale processors, graders, land planes, sugar beet harvesters and grinder mixers are designed to optimize production, increase efficiency and meet the growing demands of customers. Art's Way Manufacturing has two reporting segments: Agricultural Products and Modular Buildings. For more information, contact: Marc McConnell, President, Chief Executive Officer and Chairman 712-208-8467 [email protected] Or visit the Company's website at www.artsway.com/ Caution Regarding Forward-Looking Statements This release includes "forward-looking statements" within the meaning of federal securities laws. In some cases, you can identify forward-looking statements by the use of words such as "may," "should," "anticipate," "believe," "expect," "plan," "future," "intend," "could," "estimate," "predict," "hope," "potential," "continue," "foresee," "optimistic," "opportunity," or the negative of these terms or other similar expressions. Statements made in this release that are not strictly statements of historical facts, including the Company's expectations regarding: (i) the Company's business position; (ii) demand and potential growth within the Company's business segments; (iii) future results, including, but not limited to, revenue and margin expectations, expectations with respect to the impact of price increases and tariffs, and expectations with respect to backlog and product mix; (iv) the Company's ability to increase production with capital investments and other activities, (v) future agricultural sales and plans to enter into building contracts; (vi) cash flows and plans to fund strategic initiatives and pay down debt; and (vii) the benefits of the Company's business model and strategy, are forward-looking statements. Statements of anticipated future results are based on current expectations and are subject to a number of risks and uncertainties, including, but not limited to: customer demand for the Company's products; credit-worthiness of the Company's customers; the Company's ability to operate at lower expense levels; the Company's ability to complete projects in a timely and efficient manner in accordance with customer specifications; the Company's ability to renew or obtain financing on reasonable terms; the Company's ability to repay current debt, continue to meet debt obligations and comply with financial covenants; inflation and tariffs and their effect on the Company's supply chain and demand for its products; domestic and international economic conditions; the Company's ability to attract and maintain an adequate workforce in a competitive labor market; factors affecting the strength of the agricultural sector; the cost of raw materials; unexpected changes to performance by any of the Company's operating segments; and other factors detailed from time to time in the Company's public filings with the Securities and Exchange Commission. Actual results may differ materially from management's expectations. Readers are cautioned not to place undue reliance upon any such forward-looking statements. The Company does not intend to update forward-looking statements other than as required by law. SOURCE: Art's-Way Manufacturing Co. View the original press release on ACCESS Newswire

ARMSTRONG, IA / ACCESS Newswire / April 9, 2025 / 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 first quarter of fiscal 2025. President, CEO and Chairman Marc McConnell reports, "We are pleased to finish the first quarter with meaningful operational and profitability improvements despite challenging conditions that persist. While headwinds continue to affect overall demand in the ag equipment space, we see strength in product categories that are benefitting from favorable beef and dairy prices. In our modular buildings segment, the momentum continues, and we are very pleased with both our operational performance and the strong demand we are seeing. In both segments we are keeping a close eye on the impact of tariffs on both our costs and demand profile. Amid quite a lot of uncertainty we do remain optimistic for how we will perform the balance of the year." Consolidated - continuing operations Sales of $5,141,000 for Q1 2025, 10.2% decline from Q1 2024. Gross profit improvement of 3.4% compared to Q1 2024. Operating expenses reduced by 19.4% from Q1 2024. Net loss of $56,000 for Q1 2025, $368,000 improvement from Q1 2024 Agricultural Products Sales of $2,948,000 for Q1 2025, a 30.4% decline from Q1 2024. Gross profit declined 0.2% from Q1 2024. Operating expenses reduced by 25.6% from Q1 2024. Net loss of $346,000, improvement of $107,000 from Q1 2024. After a period of heightened demand in fiscal 2023, we started to see a decline in demand for our agricultural products in Q1 2024 due to rising interest rates, declining commodity prices and decreases in expected net farm incomes as high as 30% compared to the previous year. The leveling off of demand in this period drove the decrease in sales from Q1 of fiscal 2024 to Q1 of fiscal 2025. In Q1 of fiscal 2025, we are still battling high interest rates and low row crop commodity prices but are starting to see improvement in dealer equipment stock levels. Equipment dealer lots were oversaturated for much of fiscal 2024 and slowed incoming demand for us. We expect destocking to continue in fiscal 2025, which we believe will increase demand for our products moving forward. The agriculture market is highly cyclical, and we believe fiscal 2024 was the bottom of the cycle. We spent the majority of fiscal 2024 right sizing our production and administrative staff to help us weather the agricultural downturn. We believe we are at staffing levels where we can see positive earnings and cash flow based on sales levels we have seen in past years of agricultural downturns as long as similar demand persists. While the Federal Reserve most recently held interest rates, they reported anticipation of two interest rate cuts for fiscal 2025 and further cuts for fiscal 2026, which we believe will help stimulate all economic growth. We have seen relatively steady demand for our grinder mixer products and beet harvesting equipment in the first fiscal quarter of 2025. We plan to release some product specific programs in fiscal 2025 to continue to turn inventory and unlock cash from product lines where our inventory levels are high. Despite the 30.4% decrease in sales and less variable margin to cover our fixed costs, our gross margin percentage held steady, comparatively, for the first fiscal quarter of 2025 due to cuts to manufacturing expenses we made during fiscal 2024. We expect to see some short-term cost increases until the U.S.-based steel manufacturers are able to meet increased American Steel demand that could be induced from retaliatory tariffs. The United States currently imports approximately 25% of steel used by industry with Canada, Brazil and Mexico being the top suppliers. The majority of our manufacturing components are sourced in the U.S., however, some of our suppliers do source some of their components from China and other countries. We have been notified of expected tariff charges from some of these suppliers and expect some minor impact from these tariffs on our gross profit. Modular Buildings Sales of $2,193,000 for Q1 2025, up 47.5% from Q1 2025. Gross profit improvement of 10% compared to Q1 2024. Operating expenses increased by 14.3% from Q1 2024. Net income of $291,000, improved by $262,000 from Q1 2024. A strong demand driven backlog at the end of fiscal 2024 compared to a limited backlog at the end of fiscal 2023 drove our increase in sales for Q1 of fiscal 2025. We continued to see strong demand for our buildings in the first fiscal quarter of 2025, and we intend to focus on moving projects currently under contract in the engineering phase to signed construction contracts in Q2 of fiscal 2025 to continue our strong run from the past two fiscal years. In Q1 of fiscal 2025, we brought on a Director of Business Development and Sales who is transitioning to replace our current President and Director of Sales of this segment. We expect the overlap in these positions in fiscal 2025 will provide additional sales opportunities for us in fiscal 2025. We also expect to utilize our outgoing President and Director of Sales as a consultant moving forward to improve sales and maintain customer relationships. Income (Loss) per Share: Loss per basic and diluted share for the first quarter of fiscal 2025 was $0.01, compared to loss per basic and diluted share of $0.08 for the same period in fiscal 2024. Art's-Way Manufacturing Co., Inc. Art's Way Manufacturing is a small, publicly traded company that specializes in equipment manufacturing. For over 65 years, it has been committed to designing and building high-quality machinery for all operations. It has approximately 100 employees across two branch locations: Art's Way Manufacturing in Armstrong, Iowa and Art's Way Scientific in Monona, Iowa. Art's Way manure spreaders, forage boxes, high dump carts, bale processors, graders, land planes, sugar beet harvesters and grinder mixers are designed to optimize production, increase efficiency and meet the growing demands of customers. Art's Way Manufacturing has two reporting segments: Agricultural Products and Modular Buildings. For more information, contact: Marc McConnell, President, Chief Executive Officer and Chairman [email protected] visit the Company's website at www.artsway.com/ Cautionary Statements This release includes "forward-looking statements" within the meaning of the federal securities laws. Statements made in this release that are not strictly statements of historical facts, including the Company's expectations regarding: (i) the Company's business position; (ii) demand and potential growth within the Company's business segments; (iii) future results, including but not limited to, revenue and margin expectations, expectations with respect to the impact of price increases, and expectations with respect to backlog and product mix; (iv) the Company's ability to increase production with capital investments and other activities, (v) future agricultural sales and plans to enter into building contracts; (vi) cash flows and plans to fund strategic initiatives and pay down debt; and (vii) the benefits of the Company's business model and strategy, are forward-looking statements. Statements of anticipated future results are based on current expectations and are subject to a number of risks and uncertainties, including, but not limited to: customer demand for the Company's products; credit-worthiness of the Company's customers; the Company's ability to operate at lower expense levels; the Company's ability to complete projects in a timely and efficient manner in accordance with customer specifications; the Company's ability to renew or obtain financing on reasonable terms; the Company's ability to repay current debt, continue to meet debt obligations and comply with financial covenants; inflation and tariffs and their effect on the Company's supply chain and demand for its products, domestic and international economic conditions; the Company's ability to attract and maintain an adequate workforce in a competitive labor market; factors affecting the strength of the agricultural sector; the cost of raw materials; unexpected changes to performance by any of the Company's operating segments; and other factors detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ markedly from management's expectations. Readers are cautioned not to place undue reliance upon any such forward-looking statements. The Company does not intend to update forward-looking statements other than as required by law. SOURCE: Art's-Way Manufacturing Co. View the original press release on ACCESS Newswire