Art’s Way Reports Q1 Earnings
The company reported Q1 fiscal 2025 results, highlighting operational improvements despite ongoing challenges in ag equipment demand. Sales were $5.1M, down 10.2% from Q1 2024, but gross profit rose 3.4% and operating expenses dropped 19.4%. The net loss was $56K, a $368K improvement.
Agricultural segment sales fell 30.4% to $2.9M. The company cited high interest rates, low commodity prices, and dealer inventory saturation. However, steady demand in key product lines and cost cuts supported margins. Tariffs and steel supply pressures may impact short-term costs, but the company remains optimistic for growth as conditions improve.
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.”
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