10-Q · July 15, 2026
Art's-Way Manufacturing reported solid revenue growth in Q2 2026, with total revenue reaching approximately $7.85 million, up 23.9% year-on-year. However, the company's net income decreased significantly, primarily due…
Earnings analysis · 10-Q
ARTW earnings analysis
Filed October 13, 2026 · Our reading of the company's report
The latest report
Third-quarter revenue declined 12.7% year over year to $5.615 million and EPS was negative $0.03, while gross and operating margins improved sequentially to 27.5% and 5.4%, respectively. Nine-month revenue rose 12.3% to…
Read full summary
Third-quarter revenue declined 12.7% year over year to $5.615 million and EPS was negative $0.03, while gross and operating margins improved sequentially to 27.5% and 5.4%, respectively. Nine-month revenue rose 12.3% to $20.110 million, but EPS fell to $0.04 from $0.33, reflecting continued margin and earnings pressure. Modular Buildings backlog provides visibility through fiscal 2027, but the company faces pending trade-secret litigation seeking more than $2.0 million in damages. No quantitative forward guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.03
What stood out
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Q3 revenue declined
Third-quarter revenue was $5.615 million, down 12.7% from the prior-year quarter and below the approximately $8 million reported in 2026 Q2.
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Sequential margin recovery
Gross margin improved to 27.5% from 25.9% in the immediately preceding quarter, a 1.6 percentage-point increase.
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Operating margin improved
Operating margin increased to 5.4% from 3.6% in 2026 Q2, although quarterly EPS was a loss of $0.03.
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YTD growth with earnings pressure
Nine-month revenue increased 12.3% to $20.110 million, but nine-month EPS declined to $0.04 from $0.33 in the prior-year period.
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Modular backlog supports visibility
Modular Buildings backlog was described as the segment's highest ever and is expected to extend through the end of fiscal 2027.
What to watch
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Trade-secret litigation exposure
The company is defending litigation alleging misappropriation of trade secrets related to competing grinder mixer products. The company seeks monetary damages in excess of $2.0 million, plus punitive damages, fees, costs and injunctive relief; the matter remains pending.
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Quarterly profitability weakened
Quarterly EPS was negative $0.03 despite a 5.4% operating margin, indicating continued earnings volatility as revenue declined 12.7% year over year.
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Limited risk-factor disclosure
The filing provides no Item 1A risk-factor discussion because the company qualifies as a smaller reporting company; therefore, material risk-factor changes cannot be fully assessed from this filing.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management indicates that Modular Buildings backlog is at its highest level and is expected to extend through the end of fiscal 2027.
Earlier filings 4
10-Q · April 13, 2026
Art’s-Way reported Q1 revenue of $6,640,285, up from $5,140,955 a year earlier, and delivered net income of $196,442 (EPS $0.04) compared with a net loss of $(55,757) (EPS $(0.01)) in Q1 2025. Operating income improved…
10-K · February 12, 2026
Art’s-Way frames itself as a two-segment manufacturer (Agricultural Products and Modular Buildings) focused on niche farm equipment lines and turnkey modular research/animal facilities. The 2025 filing shows modular…
10-Q · July 14, 2025
Art’s-Way reported Q2 sales of $6,336,690 (down $393,578 or 5.8% vs Q2 2024) and GAAP net income of $1,482,069, or $0.29 per share. Gross margin expanded to 32.5% (up ~4.2pp YoY) and operating margin improved to 8.1%…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.