Cavco Industries Reports Fiscal 2026 First Quarter Results

About this update from Cavco Industries, Inc.

PHOENIX , July 31, 2025 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) ("we," "our," the "Company" or "Cavco") today announced financial results for the first fiscal quarter ended June 28, 2025 . Quarterly Highlights Net revenue was $557 million, up $79 million or 16.6% compared to $478 million in the first quarter of the prior year, primarily on home sales volume growth. Home sales volume was up 14.7% and capacity utilization increased to approximately 75% from approximately 65% in the first quarter of the prior year. Factory-built housing Gross profit as a percentage of Net revenue was 22.6%, unchanged from the same period in the prior year. Financial services Gross profit as a percentage of Net revenue was 40.9%, compared to Gross profit of (0.6)% in the same period in the prior year. Income before income taxes was $65 .3 million, up $21 .4 million, or 48.9% compared to $44 million in the same period in the prior year. Net income per diluted share attributable to Cavco common stockholders was $6.42 , up 56% , compared to $4.11 in the prior year quarter on higher Factory-built housing volume and stronger Financial services results. Backlogs totaled $200 million at the end of the quarter representing 5-7 weeks of production. Stock repurchases were approximately $50 million in the quarter. $178 million remains available for repurchases under our previously announced Board authorizations. Commenting on the quarter, President and Chief Executive Officer Bill Boor said, "Our plants have been increasing run rates over the past few quarters in anticipation of continued order growth, where order rates and backlogs have supported. This quarter rewarded those decisions with higher shipments and stable quarter-to-quarter consolidated backlog. Financial Services also contributed to the strong results. The market remains uncertain and our flexible business model makes us well positioned to adjust as needed." He continued, "As previously announced this month, we entered into a definitive agreement to acquire American Homestar Corporation . Operational excellence like our team demonstrated this quarter, and the solid balance sheet we have maintained through the years has given us the ability to pursue exciting opportunities like this. At Cavco, we couldn't be more excited to join forces with the America Homestar team and expand our reach in the South Central US as we continue to put more families into affordable homes." Financial Results Three Months Ended ($ in thousands, except revenue per home sold) June 28 ,2025 June 29 ,2024 Change Net revenue Factory-built housing $ 535,694 $ 458,048 $ 77,646 17.0 % Financial services 21,163 19,551 1,612 8.2 % $ 556,857 $ 477,599 $ 79,258 16.6 % Factory-built modules sold 8,900 7,671 1,229 16.0 % Factory-built homes sold (consisting of one or more modules) 5,416 4,721 695 14.7 % Net factory-built housing revenue per home sold $ 98,910 $ 97,024 $ 1,886 1.9 % 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. Financial services segment Net revenue increased due to higher insurance premiums. Three Months Ended ($ in thousands) June 28 ,2025 June 29 ,2024 Change Gross profit Factory-built housing $ 120,845 $ 103,510 $ 17,335 16.7 % Financial services 8,661 (108 ) 8,769 NM $ 129,506 $ 103,402 $ 26,104 25.2 % Gross profit as % of Net revenue Consolidated 23.3 % 21.7 % N/A 1.6 % Factory-built housing 22.6 % 22.6 % N/A — % Financial services 40.9 % (0.6) % N/A 41.5 % Selling, general and administrative expenses Factory-built housing $ 63,154 $ 59,720 $ 3,434 5.8 % Financial services 5,994 5,131 863 16.8 % $ 69,148 $ 64,851 $ 4,297 6.6 % Income from operations Factory-built housing $ 57,691 $ 43,790 $ 13,901 31.7 % Financial services 2,667 (5,239 ) 7,906 NM $ 60,358 $ 38,551 $ 21,807 56.6 % In the factory-built housing segment, Gross profit increased due to an increase in home sales volume. Selling, general and administrative expenses were up as a result of higher incentive based compensation due to higher earnings compared to the prior year period. In the financial services segment, Gross profit and Income from operations increased primarily due to the insurance division having lower claims losses as the prior year period was significantly impacted by multiple weather events in Texas and New Mexico , as well as increased premiums and reduced costs from improved underwriting guidelines. Three Months Ended ($ in thousands, except per share amounts) June 28 ,2025 June 29 ,2024 Change Interest income $ 5,103 $ 5,511 $ (408 ) (7.4 )% Net income $ 51,642 $ 34,429 $ 17,213 50.0 % Diluted net income per share $ 6.42 $ 4.11 $ 2.31 56.2 % Conference Call Details Cavco's management will hold a conference call to review these results tomorrow, August 1, 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) June 28 ,2025 March 29 ,2025 ASSETS (Unaudited) Current assets Cash and cash equivalents $ 344,626 $ 356,225 Restricted cash, current 23,213 18,535 Accounts receivable, net 116,261 105,849 Short-term investments 17,821 19,842 Current portion of consumer loans receivable, net 37,795 35,852 Current portion of commercial loans receivable, net 47,102 43,492 Current portion of commercial loans receivable from affiliates, net 1,850 2,881 Inventories 258,068 252,695 Prepaid expenses and other current assets 68,536 74,815 Total current assets 915,272 910,186 Restricted cash 585 585 Investments 19,362 18,067 Consumer loans receivable, net 20,152 20,685 Commercial loans receivable, net 53,403 48,605 Commercial loans receivable from affiliates, net 5,247 4,768 Property, plant and equipment, net 231,880 227,620 Goodwill 121,969 121,969 Other intangibles, net 16,359 16,731 Operating lease right-of-use assets 34,118 35,576 Deferred income taxes 1,270 1,853 Total assets $ 1,419,617 $ 1,406,645 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 42,077 $ 37,195 Accrued expenses and other current liabilities 275,203 265,971 Total current liabilities 317,280 303,166 Operating lease liabilities 30,188 31,538 Other liabilities 7,316 7,359 Total liabilities 354,784 342,063 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 9,453,363 and 9,436,732 shares, respectively; Outstanding 7,916,350 and 8,008,012, respectively 95 94 Treasury stock, at cost; 1,537,013 and 1,428,720 shares, respectively (474,993 ) (424,624 ) Additional paid-in capital 289,821 290,940 Retained earnings 1,249,805 1,198,163 Accumulated other comprehensive income 105 9 Total stockholders' equity 1,064,833 1,064,582 Total liabilities and stockholders' equity $ 1,419,617 $ 1,406,645 CAVCO INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended June 28 ,2025 June 29 ,2024 Net revenue $ 556,857 $ 477,599 Cost of sales 427,351 374,197 Gross profit 129,506 103,402 Selling, general and administrative expenses 69,148 64,851 Income from operations 60,358 38,551 Interest income 5,103 5,511 Interest expense (164 ) (90 ) Other expense, net — (111 ) Income before income taxes 65,297 43,861 Income tax expense (13,655 ) (9,432 ) Net income $ 51,642 $ 34,429 Net income per share Basic $ 6.49 $ 4.15 Diluted $ 6.42 $ 4.11 Weighted average shares outstanding Basic 7,953,720 8,286,476 Diluted 8,041,008 8,372,254 CAVCO INDUSTRIES, INC. OTHER OPERATING DATA (Dollars in thousands) (Unaudited) Three Months Ended June 28 ,2025 June 29 ,2024 Capital expenditures $ 9,009 $ 4,914 Depreciation $ 4,797 $ 4,369 Amortization of other intangibles $ 372 $ 392 For additional information, contact: Mark Fusler Corporate Controller and Investor Relations [email protected] Phone: 602-256-6263 On the Internet: www.cavcoindustries.com Source: Cavco Industries, Inc.

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