Art's-Way Manufacturing swings to Q3 loss as modular buildings revenue declines, margins come under pressure
ARTW•Art's-Way Manufacturing's fiscal Q3 revenue fell 12.7% year over year, and it reported a loss per share of $0.03 versus a profit a year earlier. Lower Modular Buildings revenue reflected project timing, while agricultural equipment sales rose.
1. Quarterly results
Art's-Way Manufacturing reported a fiscal Q3 loss per share of $0.03, compared with a profit a year earlier. Revenue fell 12.7% year over year as Modular Buildings revenue declined; agricultural equipment sales rose.
2. Outlook and costs
The company said Modular Buildings revenue was lower because of the timing of revenue recognition and that the segment's backlog was at record levels. It expects the backlog to support results through the end of fiscal 2027, while rising material and operating costs are expected to continue pressuring margins. Art's-Way also anticipates continued strong demand for livestock equipment amid elevated dealer inventories.
