Cavco Industries, Inc.: Q1 FY2027 earnings call

What management said about Q1 FY2027, from the documents filed with the SEC on 30 July 2026: press release. The quarter’s numbers.

Key takeaways

Revenue rose 9.5%: Net revenue was $610 million, up 9.5%. Management attributed the factory-built increase mainly to higher home volume from the American Homestar acquisition. Source
Pre-tax and net income declined: Income before income taxes was $55.8 million, down 14.6%. Net income was $42.3 million, down 18.1%, and income from operations was $52.8 million, down 12.6%. Source
Financial services gross profit rose 45.1%: Financial services gross profit was $12.6 million, up 45.1%, with gross margin at 52.4% against 40.9%. The company cited lower claims losses and unrealized investment gains. Source
Factory-built margin fell to 20.8%: Factory-built housing gross profit as a percentage of net revenue was 20.8%, against 22.6% a year earlier. Consolidated margin was 22.1% against 23.3%. Source
SG&A rose 18.3%: Selling, general and administrative expenses were $81.8 million, up $12.7 million or 18.3%. Management attributed the factory-built increase mainly to American Homestar and to compensation and marketing. Source
Backlog rose to $298 million: Backlog was $298 million at quarter end, equal to 7-9 weeks of production, against $195 million a year earlier. Source
Buybacks of about $30 million: Stock repurchases were about $30 million in the quarter, leaving $188 million under existing Board authorizations. Source

“In Q1, we saw record shipments and grew our backlog by over 50%.”
Bill Boor, President and Chief Executive Officer

What changed from last quarter

New: Management said the bipartisan 21st Century ROAD to Housing Act has passed, a federal policy change affecting manufactured housing. Source

Results and growth drivers

Revenue rose 9.5%: Net revenue was $610 million, up 9.5%. Management attributed the factory-built increase mainly to higher home volume from the American Homestar acquisition. Source
Pre-tax and net income declined: Income before income taxes was $55.8 million, down 14.6%. Net income was $42.3 million, down 18.1%, and income from operations was $52.8 million, down 12.6%. Source
Diluted EPS fell to $5.43: Diluted net income per share was $5.43 against $6.42 a year earlier, down 15.4%. Source
Revenue per home rose 4.7%: Net factory-built housing revenue per home sold was $103,584, up 4.7% from $98,910. Source

Segments and margins

Financial services gross profit rose 45.1%: Financial services gross profit was $12.6 million, up 45.1%, with gross margin at 52.4% against 40.9%. The company cited lower claims losses and unrealized investment gains. Source
Financial services revenue rose on loans: Financial services net revenue was $24.0 million, up 13.3%. The company credited higher mortgage loan sales and unrealized gains on its equity portfolio. Source
Factory-built margin fell to 20.8%: Factory-built housing gross profit as a percentage of net revenue was 20.8%, against 22.6% a year earlier. Consolidated margin was 22.1% against 23.3%. Source
Factory-built operating income fell 16.7%: Factory-built income from operations was $48.0 million, down 16.7%, while financial services income from operations rose 76.5% to $4.7 million. Source

“While we continue to manage through a challenging macro-economic environment for prospective homebuyers”
Bill Boor, President and Chief Executive Officer

Costs and operating expenses

SG&A rose 18.3%: Selling, general and administrative expenses were $81.8 million, up $12.7 million or 18.3%. Management attributed the factory-built increase mainly to American Homestar and to compensation and marketing. Source
Financial services SG&A rose on loan activity: Financial services SG&A rose 31.2% to $7.9 million, from added headcount for loan activity under a forward flow agreement and higher incentive compensation. Source
Input costs partly offset gains: Factory-built gross profit rose 1.0% to $122.0 million on higher home volume and price. Management said higher input costs partially offset these gains. Source

Demand and order book

Backlog rose to $298 million: Backlog was $298 million at quarter end, equal to 7-9 weeks of production, against $195 million a year earlier. Source
Plants ran at about 75%: Capacity utilization was about 75%, unchanged from a year earlier. Source
Modules sold grew faster than homes: Factory-built modules sold rose 6.8% to 9,507, while factory-built homes sold rose 4.4% to 5,657. Source

“These results don't happen with just one or two plants doing well.”
Bill Boor, President and Chief Executive Officer

Capital, cash and shareholder returns

Buybacks of about $30 million: Stock repurchases were about $30 million in the quarter, leaving $188 million under existing Board authorizations. Source
Capital spending rose sharply: Capital expenditures were $25.5 million, against $9.0 million a year earlier. Depreciation was $6.1 million. Source
Cash and inventories increased: Cash and cash equivalents were $243.2 million, up from $236.7 million at March 28, 2026. Inventories rose to $309.0 million from $295.7 million. Source
Treasury stock rose with buybacks: Treasury stock was $616.4 million, up from $585.9 million, with 1,795,574 shares held in treasury against 1,735,588. Source

Policy and strategy

Federal housing law passed: Management said the ROAD to Housing Act includes major sections on manufactured housing and highlights the role of factory-built homes. Source
States moving on local zoning: Management said more states are passing legislation to improve zoning access at the local level. Source
Act aims at innovation and financing: Management said the Act is intended to enable innovation, provide regulatory clarity, improve access to financing, and reduce zoning barriers. Source

Figures management reported

Figure	Reported
Factory-built homes sold Source	5,657, up 4.4%
Factory-built modules sold Source	9,507, up 6.8%
Backlog Source	$298 million, 7-9 weeks of production
Capacity utilization Source	approximately 75%

Risks management discussed

Demand: Management cited a challenging macro-economic environment for prospective homebuyers as the condition it is managing through. Source
Operational: Higher input costs partly offset factory-built gross profit gains from higher home volume and price. Source
Regulatory: Local zoning barriers to factory-built housing are a condition the Act is intended to reduce, according to management. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

CAVCO INDUSTRIES REPORTS FISCAL 2027 FIRST QUARTER RESULTS

Cavco delivered record sales volume, solid earnings and an expanding backlog

PHOENIX, July 30, 2026 (GLOBE NEWSWIRE) - Cavco Industries, Inc. (Nasdaq: CVCO) ("we," "our," the "Company" or "Cavco") today announced financial results for the first fiscal quarter ended June 27, 2026.

Quarterly Highlights

Net revenue was $610 million, up $53 million or 9.5% compared to $557 million in the first quarter of the prior year.
Home sales volume was up 4.4% and capacity utilization remained consistent year over year at approximately 75%.
Factory-built housing Gross profit as a percentage of Net revenue was 20.8%, compared to 22.6% in the same period in the prior year.
Financial services Gross profit as a percentage of Net revenue was 52.4%, compared to Gross profit of 40.9% in the prior year.
Income before income taxes was $55.8 million, down $9.5 million, or 14.6% compared to $65.3 million in the same period in the prior year.
Net income per diluted share attributable to Cavco common stockholders was $5.43 compared to $6.42 in the prior year quarter.
Backlogs totaled $298 million at the end of the quarter representing 7-9 weeks of production compared to $195 million at the end of the prior year.
Stock repurchases were approximately $30 million in the quarter. At the end of the first quarter, $188 million remains available for repurchases under our previously announced Board authorizations.

Commenting on the quarter, President and Chief Executive Officer Bill Boor said, "This quarter saw the continuation of strong order momentum we saw at the end of Q4 2026. In Q1, we saw record shipments and grew our backlog by over 50%. These results don't happen with just one or two plants doing well. They are a reflection of order growth and the excellent job all of our teams have done responding to the market."

He continued, "Externally, we saw progress on the regulatory front with the passing of the bipartisan 21st Century ROAD to Housing Act. The law highlights the role factory-built homes need to play in the housing affordability crisis with major sections dedicated to Manufactured Housing. It will enable innovation, provide regulatory clarity, improve access to financing, and encourage states and local authorities to reduce zoning barriers. Importantly, we are also seeing an increasing number of states passing legislation to improve zoning access at the local level. While we continue to manage through a challenging macro-economic environment for prospective homebuyers, the future is bright for factory-built housing solutions to help more families achieve home ownership."

Financial Results

	Three Months Ended
($ in thousands, except revenue per home sold)	June 27, 2026	June 28, 2025	Change
Net revenue
Factory-built housing	$585,972	$535,694	$50,278	9.4%
Financial services	23,987	21,163	2,824	13.3%
	$609,959	$556,857	$53,102	9.5%
Factory-built modules sold	9,507	8,900	607	6.8%
Factory-built homes sold (consisting of one or more modules)	5,657	5,416	241	4.4%
Net factory-built housing revenue per home sold	$103,584	$98,910	$4,674	4.7%

In the Factory-built housing segment, the increase in Net revenue was due to higher home sales volume as a result of the American Homestar acquisition in the third quarter of the prior year and an increase in Net revenue per home sold.
Financial services segment Net revenue increased primarily due to increased loan sales in the mortgage division and unrealized gains on the Financial services equity portfolio.

	Three Months Ended
($ in thousands)	June 27, 2026	June 28, 2025	Change
Gross profit
Factory-built housing	$122,019	$120,845	$1,174		1.0%
Financial services	12,571	8,661	3,910		45.1%
	$134,590	$129,506	$5,084		3.9%
Gross profit as % of Net revenue
Consolidated	22.1%	23.3%		N/A	(1.2)%
Factory-built housing	20.8%	22.6%		N/A	(1.8)%
Financial services	52.4%	40.9%		N/A	11.5%
Selling, general and administrative expenses
Factory-built housing	$73,970	$63,154	$10,816		17.1%
Financial services	7,865	5,994	1,871		31.2%
	$81,835	$69,148	$12,687		18.3%
Income from operations
Factory-built housing	$48,049	$57,691	$(9,642)		(16.7)%
Financial services	4,706	2,667	2,039		76.5%
	$52,755	$60,358	$(7,603)		(12.6)%

In the factory-built housing segment, Gross profit increased due to an increase in home sales volume and price, partially offset by higher input costs. Selling, general and administrative expenses were higher due to the addition of American Homestar, and to a lesser extent, increases in compensation and employee related expenses, as well as sales and marketing expenses.
In the financial services segment, Gross profit and Income from operations increased primarily due to lower claims losses, unrealized gains on the investment portfolio, and to a lesser extent, the addition of American Homestar in the current year. Selling, general and administrative expenses increased partially due to a headcount increase to handle increased loan activity due to a forward flow agreement signed in the fourth quarter of the prior year and higher incentive compensation on better results.

	Three Months Ended
($ in thousands, except per share amounts)	June 27, 2026	June 28, 2025	Change
Interest income	$3,263	$5,103	$(1,840)	(36.1)%
Net income	$42,271	$51,642	$(9,371)	(18.1)%
Diluted net income per share	$5.43	$6.42	$(0.99)	(15.4)%

Conference Call Details

Cavco's management will hold a conference call to review these results tomorrow, July 31, 2026, 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 at https://register-conf.media-server.com/register/BI6cf18bafb2774db0a95196ef2f500077 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

Forward-looking statements notice

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 28, 2026 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.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)

	June 27, 2026	March 28, 2026
ASSETS	(Unaudited)
Current assets
Cash and cash equivalents	$243,195	$236,721
Restricted cash, current	22,437	20,306
Accounts receivable, net	115,858	108,288
Short-term investments	18,279	16,233
Current portion of consumer loans receivable, net	17,367	19,207
Current portion of commercial loans receivable, net	45,580	54,841
Current portion of commercial loans receivable from affiliates, net	1,634	1,836
Inventories	308,978	295,671
Prepaid expenses and other current assets	63,867	71,630
Total current assets	837,195	824,733
Restricted cash	585	585
Investments	39,652	38,151
Consumer loans receivable, net	18,827	18,974
Commercial loans receivable, net	69,903	55,801
Commercial loans receivable from affiliates, net	3,532	3,519
Property, plant and equipment, net	297,980	278,890
Goodwill	209,241	208,841
Other intangibles, net	27,462	28,067
Operating lease right-of-use assets	37,071	33,578
Total assets	$1,541,448	$1,491,139
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$46,454	$44,168
Accrued expenses and other current liabilities	329,208	291,230
Total current liabilities	375,662	335,398
Operating lease liabilities	33,744	30,747
Other liabilities	6,972	7,096
Deferred income taxes	14,674	14,716
Total liabilities	431,052	387,957
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 9,504,933 and 9,474,288 shares, respectively; Outstanding 7,709,359 and 7,738,700, respectively	95	95
Treasury stock, at cost; 1,795,574 and 1,735,588 shares, respectively	(616,372)	(585,865)
Additional paid-in capital	295,773	300,208
Retained earnings	1,430,985	1,388,714
Accumulated other comprehensive income	(85)	30
Total stockholders' equity	1,110,396	1,103,182
Total liabilities and stockholders' equity	$1,541,448	$1,491,139

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share amounts)

(Unaudited)

	Three Months Ended
	June 27, 2026	June 28, 2025
Net revenue	$609,959	$556,857
Cost of sales	475,369	427,351
Gross profit	134,590	129,506
Selling, general and administrative expenses	81,835	69,148
Income from operations	52,755	60,358
Interest income	3,263	5,103
Interest expense	(132)	(164)
Other expense, net	(98)	-
Income before income taxes	55,788	65,297
Income tax expense	(13,517)	(13,655)
Net income	$42,271	$51,642
Net income per share
Basic	$5.48	$6.49
Diluted	$5.43	$6.42
Weighted average shares outstanding
Basic	7,707,952	7,953,720
Diluted	7,784,424	8,041,008

OTHER OPERATING DATA

(Dollars in thousands)

(Unaudited)

	Three Months Ended
	June 27, 2026	June 28, 2025
Capital expenditures	$25,493	$9,009
Depreciation	$6,086	$4,797
Amortization of other intangibles	$605	$372

Contacts
Mark FuslerCorporate Controller and Investor Relationsinvestor_relations@cavco.com
For additional information, contact: Phone: 602-256-6263On the Internet: www.cavcoindustries.com