Art's Way Manufacturing Swings to $196,442 Profit in Q1 FY2026

Art's Way Manufacturing Co Inc, a maker of specialized agricultural equipment, reported net income of $196,442 for the quarter ending February 28, 2026, swinging from a net loss of $55,757 in the same period a year earlier. Revenue rose to $6.64 million from $5.14 million in the prior-year quarter, a 29% increase. Read more earnings reports.

Operating income reached $330,017 compared with just $2,485 in the year-ago period. The company's gross profit expanded to $1.91 million from $1.50 million, driven by the higher sales volume. Cost of goods sold climbed to $4.73 million from $3.64 million.

Operating expenses totaled $1.58 million, up slightly from $1.49 million a year earlier. The company recorded income tax expense of $59,006 in the current quarter compared with a tax benefit of $14,652 in the prior-year period.

Balance Sheet and Cash Position

Total assets grew to $24.56 million as of February 28, 2026, up from $22.48 million at the end of November 2025 and $21.01 million a year earlier. Current assets rose to $16.95 million from $14.78 million at the prior quarter-end.

Cash and cash equivalents stood at just $2,937 as of February 28, down from $4,849 three months earlier. Accounts receivable increased to $3.43 million from $2.20 million. Inventory edged up to $12.07 million from $11.71 million.

Total liabilities climbed to $11.02 million from $9.17 million at November 30, 2025. Current liabilities rose to $8.39 million from $6.44 million. Accounts payable nearly doubled to $1.68 million from $902,326. Long-term debt stood at $2.28 million, down slightly from $2.33 million three months earlier.

Stockholders' equity increased to $13.55 million from $13.31 million at the prior quarter-end, reflecting the quarterly profit. Retained earnings grew to $8.56 million from $8.36 million.

Cash Flow

The company generated $148,395 in cash from operations during the quarter, a sharp reversal from negative $101,805 in the year-ago period. Cash used in investing activities totaled $172,315 compared with $82,730 a year earlier. Financing activities provided $22,008 in cash versus $186,808 in the prior-year quarter.

Per Share Results

Earnings per share came to $0.04 on both a basic and diluted basis, compared with a loss of $0.01 per share in the year-ago quarter. Weighted average shares outstanding increased to 5.14 million from 5.05 million.