Arts-Way Manufacturing Co., Inc. has entered into a term loan agreement with Bank Midwest to finance the purchase of a new fiberoptic laser and crane system for its Agricultural Products Segment. The loan, executed on October 5, 2026, is in the amount of $956,000 and is governed by a Promissory Note dated the same day. This equipment is intended to replace a CO2 laser that the company purchased in 2007.
The financing terms stipulate an interest rate of 6.65% for the first 60 payments, with the initial monthly payment set at $8,456. The first payment is due October 30, 2026. Following the initial 60 payments, the interest rate will adjust to the current 1-month SOFR plus 3.1% as published by the CME Group Benchmark Administration for the remaining 120 payments.
In addition to the financing details, the company released its financial results for the three and nine months ended August 31, 2026. For the nine-month period, consolidated sales increased to $20.11 million from $17.91 million in the prior year, representing a 12.3% increase. The company reported a net income of $230,000 for the first nine months of fiscal 2026, compared to $1.68 million in the same period of the prior year.
The company attributes the year-over-year sales growth to strong demand for livestock equipment, which has kept Agricultural Equipment sales ahead of 2025 levels. However, the company noted that rising material and operating costs are pressuring margins in both its Agricultural Products and Modular Buildings segments. The Modular Buildings segment reported a net income of $955,000 for the nine months ended August 31, 2026, while the Agricultural Products segment reported a net loss of $725,000 over the same period.
