Cavco Industries (CVCO) investor relations material

Executive summary

• Net revenue increased 16.6% year-over-year to $556.9M–$557M, driven by higher home sales volume and increased revenue per home sold.

• Net income rose 50% to $51.6M, with diluted EPS up 56% to $6.42, reflecting strong factory-built housing and financial services performance.

• Record 5,416 homes shipped, with order growth keeping backlog stable at $200M, representing 5–7 weeks of production.

• Announced agreement to acquire American Homestar for $184M–$190M in cash, expected to close in Q3 FY2026, expanding reach in the South Central US.

• Financial services segment turned a prior loss into a profit, aided by improved insurance results and favorable weather.

Financial highlights

• Factory-built housing revenue grew 17% year-over-year to $535.7M; financial services revenue increased 8.2% to $21.2M.

• Consolidated gross margin was 23.3%, up from 21.7% last year; gross profit rose 25.2% to $129.5M.

• Net income was $51.6M; diluted EPS was $6.42, up from $4.11 last year.

• Pre-tax profit rose 48.9% to $65.3M; operating income increased to $60.4M from $38.6M year-over-year.

• Cash from operations was $55.5M; cash and restricted cash at $368.4M after $50M–$54.7M in share repurchases.

Outlook and guidance

• Management expects sufficient liquidity to fund operations, the American Homestar acquisition, and growth initiatives for at least the next 12 months.

• No significant drop in order rates observed; HUD code shipments and industry home shipments up 5.3% year-to-date.

• Market uncertainty persists, but the business model is flexible to adapt as needed.

• Tariff impacts expected to increase in future quarters, with potential cost increases of $2M–$5.5M per quarter if fully implemented.