Cavco Industries Reports Fiscal 2026 Second Quarter Results
Closes American Homestar acquisition and welcomes Lisa Daniels to the Board of Directors
PHOENIX, Oct. 30, 2025 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) ("we," "our," the "Company" or "Cavco") today announced financial results for the second fiscal quarter ended September 27, 2025.
Quarterly Highlights
- Net revenue was $556.5 million, up $49 million or 9.7% compared to $507.5 million in the second quarter of the prior year, primarily on home sales volume and average selling price per home growth.
- Home sales volume was up 5.4% and capacity utilization increased to approximately 75% from approximately 70% in the second quarter of the prior year.
- Factory-built housing Gross profit as a percentage of Net revenue was 22.9%, flat with the same period in the prior year.
- Financial services Gross profit as a percentage of Net revenue was 55.6%, compared to Gross profit of 21.8% in the same period in the prior year.
- Income before income taxes was $67 million, up $12 million, or 22.4% compared to $55 million in the same period in the prior year.
- Net income per diluted share attributable to Cavco common stockholders was $6.55, up 24%, compared to $5.28 in the prior year quarter on higher Factory-built housing volume and stronger Financial services results.
- Backlogs totaled $210 million at the end of the quarter representing 5-7 weeks of production.
- Stock repurchases were approximately $36 million in the quarter. $142 million remains available for repurchases under our previously announced Board authorizations.
Commenting on the quarter, President and Chief Executive Officer Bill Boor said, "We saw continued strong performance from all phases of our business - production, retail and our Financial Services segment. Our teams executed with excellence in a fluid market with continuing macroeconomic risks.”
He continued, "As previously announced, we successfully closed the acquisition of American Homestar Corporation subsequent to the close of Q2. The newly combined team has done a remarkable job maintaining a dual track focus on current operational success and early integration. I want to thank everyone from American Homestar for their commitment and positivity through this transition.
“Finally, we’re excited to have Lisa Daniels join our Board of Directors. In addition to her compelling experience and knowledge, Lisa is a great personal fit with our Board and Company and I’m looking forward to working with her in the years ahead."
Financial Results
| Three Months Ended | |||||||||||
| ($ in thousands, except revenue per home sold) | September 27, 2025 |
September 28, 2024 |
Change | ||||||||
| Net revenue | |||||||||||
| Factory-built housing | $ | 535,117 | $ | 486,343 | $ | 48,774 | 10.0 | % | |||
| Financial services | 21,410 | 21,118 | 292 | 1.4 | % | ||||||
| $ | 556,527 | $ | 507,461 | $ | 49,066 | 9.7 | % | ||||
| Factory-built modules sold | 8,699 | 8,119 | 580 | 7.1 | % | ||||||
| Factory-built homes sold (consisting of one or more modules) | 5,178 | 4,913 | 265 | 5.4 | % | ||||||
| Net factory-built housing revenue per home sold | $ | 103,344 | $ | 98,991 | $ | 4,353 | 4.4 | % | |||
| Six Months Ended | |||||||||||
| ($ in thousands, except revenue per home sold) | September 27, 2025 |
September 28, 2024 |
Change | ||||||||
| Net revenue | |||||||||||
| Factory-built housing | $ | 1,070,811 | $ | 944,391 | $ | 126,420 | 13.4 | % | |||
| Financial services | 42,573 | 40,669 | 1,904 | 4.7 | % | ||||||
| $ | 1,113,384 | $ | 985,060 | $ | 128,324 | 13.0 | % | ||||
| Factory-built modules sold | 17,599 | 15,790 | 1,809 | 11.5 | % | ||||||
| Factory-built homes sold (consisting of one or more modules) | 10,594 | 9,634 | 960 | 10.0 | % | ||||||
| Net factory-built housing revenue per home sold | $ | 101,077 | $ | 98,027 | $ | 3,050 | 3.1 | % | |||
- In the factory-built housing segment, the increase in Net revenue was due to higher home sales volume and an increase in Net revenue per home sold for both periods.
- Financial services segment Net revenue increased due to higher insurance premiums for both periods.
| Three Months Ended | |||||||||||||
| ($ in thousands) | September 27, 2025 |
September 28, 2024 |
Change | ||||||||||
| Gross profit | |||||||||||||
| Factory-built housing | $ | 122,493 | $ | 111,520 | $ | 10,973 | 9.8 | % | |||||
| Financial services | 11,914 | 4,602 | 7,312 | 158.9 | % | ||||||||
| $ | 134,407 | $ | 116,122 | $ | 18,285 | 15.7 | % | ||||||
| Gross profit as % of Net revenue | |||||||||||||
| Consolidated | 24.2 | % | 22.9 | % | N/A | 1.3 | % | ||||||
| Factory-built housing | 22.9 | % | 22.9 | % | N/A | — | % | ||||||
| Financial services | 55.6 | % | 21.8 | % | N/A | 33.8 | % | ||||||
| Selling, general and administrative expenses | |||||||||||||
| Factory-built housing | $ | 65,757 | $ | 61,440 | $ | 4,317 | 7.0 | % | |||||
| Financial services | 6,472 | 5,557 | 915 | 16.5 | % | ||||||||
| $ | 72,229 | $ | 66,997 | $ | 5,232 | 7.8 | % | ||||||
| Income from operations | |||||||||||||
| Factory-built housing | $ | 56,736 | $ | 50,080 | $ | 6,656 | 13.3 | % | |||||
| Financial services | 5,442 | (955 | ) | 6,397 | NM | ||||||||
| $ | 62,178 | $ | 49,125 | $ | 13,053 | 26.6 | % | ||||||
| Six Months Ended | |||||||||||||
| ($ in thousands) | September 27, 2025 |
September 28, 2024 |
Change | ||||||||||
| Gross profit | |||||||||||||
| Factory-built housing | $ | 243,338 | $ | 215,030 | $ | 28,308 | 13.2 | % | |||||
| Financial services | 20,575 | 4,494 | 16,081 | 357.8 | % | ||||||||
| $ | 263,913 | $ | 219,524 | $ | 44,389 | 20.2 | % | ||||||
| Gross profit as % of Net revenue | |||||||||||||
| Consolidated | 23.7 | % | 22.3 | % | N/A | 1.4 | % | ||||||
| Factory-built housing | 22.7 | % | 22.8 | % | N/A | (0.1)% | |||||||
| Financial services | 48.3 | % | 11.1 | % | N/A | 37.2 | % | ||||||
| Selling, general and administrative expenses | |||||||||||||
| Factory-built housing | $ | 128,911 | $ | 121,160 | $ | 7,751 | 6.4 | % | |||||
| Financial services | 12,466 | 10,688 | 1,778 | 16.6 | % | ||||||||
| $ | 141,377 | $ | 131,848 | $ | 9,529 | 7.2 | % | ||||||
| Income from operations | |||||||||||||
| Factory-built housing | $ | 114,427 | $ | 93,870 | $ | 20,557 | 21.9 | % | |||||
| Financial services | 8,109 | (6,194 | ) | 14,303 | NM | ||||||||
| $ | 122,536 | $ | 87,676 | $ | 34,860 | 39.8 | % | ||||||
- In the factory-built housing segment, Gross profit increased due to an increase in home sales volume and Net revenue per home sold for both periods. Selling, general and administrative expenses increased as a result of higher incentive based compensation due to higher earnings compared to both prior year periods.
- In the financial services segment, Gross profit and Income from operations increased primarily due to the insurance division having higher premiums and lower claims losses. The claims loss reduction resulted from policy underwriting improvements and severe weather events in the prior year periods. Selling, general and administrative expenses increased in both periods primarily due to higher compensation.
| Three Months Ended | ||||||||||||
| ($ in thousands, except per share amounts) | September 27, 2025 |
September 28, 2024 |
Change | |||||||||
| Interest income | $ | 5,046 | $ | 5,692 | $ | (646 | ) | (11.3)% | ||||
| Net income | $ | 52,381 | $ | 43,815 | $ | 8,566 | 19.6 | % | ||||
| Diluted net income per share | $ | 6.55 | $ | 5.28 | $ | 1.27 | 24.1 | % | ||||
| Six Months Ended | ||||||||||||
| ($ in thousands, except per share amounts) | September 27, 2025 |
September 28, 2024 |
Change | |||||||||
| Interest Income | $ | 10,149 | $ | 11,203 | $ | (1,054 | ) | (9.4)% | ||||
| Net income | $ | 104,023 | $ | 78,244 | $ | 25,779 | 32.9 | % | ||||
| Diluted net income per share | $ | 12.96 | $ | 9.38 | $ | 3.58 | 38.2 | % | ||||
Conference Call Details
Cavco's management will hold a conference call to review these results tomorrow, October 31, 2025, at 1:00 p.m. (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at https://investor.cavco.com or via telephone. To participate by phone, please register
here to receive the dial in number and your PIN. An archive of the webcast and presentation will be available for 60 days at https://investor.cavco.com.
About Cavco
Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco's finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Cavco's current expectations and projections with respect to our expected future business and financial performance, including, among other things: (i) expected financial performance and operating results, such as revenue and gross margin percentage; (ii) our liquidity and financial resources; (iii) our outlook with respect to the Company and the manufactured housing business in general; (iv) the expected effect of certain risks and uncertainties on our business; and (iv) the strength of Cavco's business model. These statements may be preceded by, followed by, or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "outlook," "plan," "potential," "project," "seek," "target," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other factors, Cavco's ability to manage: (i) customer demand and the availability of financing for our products; (ii) labor shortages and the pricing, availability, or transportation of raw materials; (iii) the impact of local or national emergencies; (iv) excessive health and safety incidents or warranty and construction claims; (v) increases in cancellations of home sales; (vi) information technology failures or cyber incidents; (vii) our ability to maintain the security of personally identifiable information of our customers, (viii) compliance with the numerous laws and regulations applicable to our business, including state, federal, and foreign laws relating to manufactured housing, privacy, the internet, and accounting matters; (ix) successful defense against litigation, government inquiries, and investigations, and (x) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Cavco. The forward-looking statements herein represent the judgment of Cavco as of the date of this release and Cavco disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company's other press releases, reports, and other filings with the SEC. Readers are specifically referred to the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended March 29, 2025 as may be updated from time to time in future filings on Form 10-Q and other reports filed by the Company pursuant to the Securities Exchange Act of 1934, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Understanding the information contained in these filings is important in order to fully understand Cavco's reported financial results and our business outlook for future periods.
|
CAVCO INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) | |||||||
| September 27, 2025 |
March 29, 2025 |
||||||
| ASSETS | (Unaudited) | ||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 374,978 | $ | 356,225 | |||
| Restricted cash, current | 24,391 | 18,535 | |||||
| Accounts receivable, net | 115,654 | 105,849 | |||||
| Short-term investments | 16,865 | 19,842 | |||||
| Current portion of consumer loans receivable, net | 33,493 | 35,852 | |||||
| Current portion of commercial loans receivable, net | 43,468 | 43,492 | |||||
| Current portion of commercial loans receivable from affiliates, net | 2,227 | 2,881 | |||||
| Inventories | 258,423 | 252,695 | |||||
| Prepaid expenses and other current assets | 65,048 | 74,815 | |||||
| Total current assets | 934,547 | 910,186 | |||||
| Restricted cash | 585 | 585 | |||||
| Investments | 24,341 | 18,067 | |||||
| Consumer loans receivable, net | 19,390 | 20,685 | |||||
| Commercial loans receivable, net | 56,458 | 48,605 | |||||
| Commercial loans receivable from affiliates, net | 5,292 | 4,768 | |||||
| Property, plant and equipment, net | 236,709 | 227,620 | |||||
| Goodwill | 121,969 | 121,969 | |||||
| Other intangibles, net | 15,987 | 16,731 | |||||
| Operating lease right-of-use assets | 33,791 | 35,576 | |||||
| Deferred income taxes | — | 1,853 | |||||
| Total assets | $ | 1,449,069 | $ | 1,406,645 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
| Current liabilities | |||||||
| Accounts payable | $ | 44,075 | $ | 37,195 | |||
| Accrued expenses and other current liabilities | 273,975 | 265,971 | |||||
| Total current liabilities | 318,050 | 303,166 | |||||
| Operating lease liabilities | 30,360 | 31,538 | |||||
| Other liabilities | 7,258 | 7,359 | |||||
| Deferred income taxes | 7,264 | — | |||||
| Total liabilities | 362,932 | 342,063 | |||||
| Stockholders' equity | |||||||
| Preferred stock, $0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding | — | — | |||||
| Common stock, $0.01 par value; 40,000,000 shares authorized; Issued 9,470,820 and 9,436,732 shares, respectively; Outstanding 7,866,737 and 8,008,012, respectively | 95 | 94 | |||||
| Treasury stock, at cost; 1,604,083 and 1,428,720 shares, respectively | (511,347 | ) | (424,624 | ) | |||
| Additional paid-in capital | 294,984 | 290,940 | |||||
| Retained earnings | 1,302,186 | 1,198,163 | |||||
| Accumulated other comprehensive income | 219 | 9 | |||||
| Total stockholders' equity | 1,086,137 | 1,064,582 | |||||
| Total liabilities and stockholders' equity | $ | 1,449,069 | $ | 1,406,645 | |||
|
CAVCO INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| September 27, 2025 |
September 28, 2024 |
September 27, 2025 |
September 28, 2024 |
||||||||||||
| Net revenue | $ | 556,527 | $ | 507,461 | $ | 1,113,384 | $ | 985,060 | |||||||
| Cost of sales | 422,120 | 391,339 | 849,471 | 765,536 | |||||||||||
| Gross profit | 134,407 | 116,122 | 263,913 | 219,524 | |||||||||||
| Selling, general and administrative expenses | 72,229 | 66,997 | 141,377 | 131,848 | |||||||||||
| Income from operations | 62,178 | 49,125 | 122,536 | 87,676 | |||||||||||
| Interest income | 5,046 | 5,692 | 10,149 | 11,203 | |||||||||||
| Interest expense | (112 | ) | (125 | ) | (276 | ) | (215 | ) | |||||||
| Other income, net | 142 | 258 | 142 | 147 | |||||||||||
| Income before income taxes | 67,254 | 54,950 | 132,551 | 98,811 | |||||||||||
| Income tax expense | (14,873 | ) | (11,135 | ) | (28,528 | ) | (20,567 | ) | |||||||
| Net income | $ | 52,381 | $ | 43,815 | $ | 104,023 | $ | 78,244 | |||||||
| Net income per share | |||||||||||||||
| Basic | $ | 6.62 | $ | 5.33 | $ | 13.12 | $ | 9.48 | |||||||
| Diluted | $ | 6.55 | $ | 5.28 | $ | 12.96 | $ | 9.38 | |||||||
| Weighted average shares outstanding | |||||||||||||||
| Basic | 7,909,326 | 8,226,298 | 7,931,589 | 8,256,664 | |||||||||||
| Diluted | 7,992,745 | 8,305,326 | 8,024,720 | 8,337,671 | |||||||||||
|
CAVCO INDUSTRIES, INC. OTHER OPERATING DATA (Dollars in thousands) (Unaudited) | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||
| September 27, 2025 |
September 28, 2024 |
September 27, 2025 |
September 28, 2024 |
||||||||
| Capital expenditures | $ | 9,861 | $ | 4,905 | $ | 18,870 | $ | 9,819 | |||
| Depreciation | $ | 4,961 | $ | 4,375 | $ | 9,758 | $ | 8,744 | |||
| Amortization of other intangibles | $ | 372 | $ | 385 | $ | 744 | $ | 777 | |||
For additional information, contact:
Mark Fusler
Corporate Controller and Investor Relations
investor_relations@cavco.com
Phone: 602-256-6263
On the Internet: www.cavcoindustries.com
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