Arts-Way Manufacturing | 8-K: FY2025 Q2 Revenue: USD 6.337 M

Revenue: As of FY2025 Q2, the actual value is USD 6.337 M.

EPS: As of FY2025 Q2, the actual value is USD 0.29.

Consolidated Operations

• Sales: $6,337,000 for Q2 2025, a 5.8% decline from Q2 2024. Six-month sales were $11,478,000, a 7.8% decline from the first six months of fiscal 2024.
• Operating Income: $510,000 for Q2 2025, compared to $169,000 in Q2 2024. Six-month operating income was $513,000, compared to an operating loss of - $211,000 in the same period of fiscal 2024.
• Net Income: $1,482,000 for Q2 2025, compared to a net loss of - $5,000 in Q2 2024. Six-month net income was $1,426,000, an improvement of $1,855,000 from the same period in fiscal 2024, positively impacted by an Employee Retention Credit refund of $1,154,000.
• Operating Expenses: Reduced by 15.3% for the six months ending May 31, 2025 compared to the same period in fiscal 2024.

Agricultural Products Segment

• Sales: $4,025,000 for Q2 2025, an 11.6% decline from Q2 2024. Six-month sales were $6,973,000, a 20.7% decline from the first six months of fiscal 2024.
• Gross Profit: Declined by 1.0% for the six months ending May 31, 2025 compared to the same period in fiscal 2024.
• Operating Expenses: Reduced by 24.2% for the six months ending May 31, 2025 compared to the same period in fiscal 2024.
• Net Income: $527,000 for the six months ending May 31, 2025, an improvement of $1,236,000 from the same period in fiscal 2024, positively impacted by an Employee Retention Credit refund of $976,000.

Modular Buildings Segment

• Sales: $2,312,000 for Q2 2025, up 6.3% from Q2 2024. Six-month sales were $4,505,000, a 23.0% increase from the first six months of fiscal 2024.
• Gross Profit: Improved by 12.2% for the six months ending May 31, 2025 compared to the same period in fiscal 2024.
• Operating Expenses: Increased by 35.0% for the six months ending May 31, 2025 compared to the same period in fiscal 2024.
• Net Income: $899,000 for the six months ending May 31, 2025, an improvement of $619,000 from the same period in fiscal 2024, positively impacted by an Employee Retention Credit refund of $179,000.

Outlook

Art’s Way Manufacturing Co., Inc. anticipates improvement in agricultural market conditions over the next 12 to 18 months, despite current challenges such as weakened row crop prices and high interest rates. The company plans to build stock inventory in Q3 of fiscal 2025 to react to retail opportunities and continue releasing product-specific programs to turn inventory and unlock cash. Rising steel prices due to tariff uncertainty are expected to have a minor impact on gross profit.