Cavco Industries (CVCO) investor relations material

Executive summary

• Achieved record quarterly shipments of 5,657 units and record net revenue of $610 million for Q1 2027, a 9.5% increase year-over-year, driven by higher home sales volume, increased revenue per home sold, and the American Homestar acquisition.

• Net income was $42.3 million, down from $51.6 million year-over-year, reflecting higher input costs and increased SG&A expenses.

• Backlog expanded to $298 million, representing 7–9 weeks of production, up over 50% year-over-year.

• Capacity utilization reached 75%, indicating room for further volume growth if strong orders persist.

• The American Homestar acquisition added $52.8 million in revenue and $7.3 million in SG&A expenses.

Financial highlights

• Net revenue for Q1 FY27 was $610 million, up 9.5% year-over-year and $59.8 million sequentially.

• Factory-built housing segment revenue was $586 million, up 9.4% year-over-year; financial services revenue was $24 million, up 13.3%.

• Consolidated gross margin was 22.1%, down from 23.3% year-over-year; factory-built housing gross margin was 20.8%, down from 22.6%.

• Net income was $42.3 million, down from $51.6 million year-over-year; diluted EPS was $5.43 versus $6.42.

• Pre-tax profit declined 14.6% to $55.8 million; effective tax rate increased to 24.2%.

Outlook and guidance

• Backlogs and strong orders support continued production increases; backlog now in the 7–9 week range and management expects growth from American Homestar integration and home-only lending programs.

• Management expects to grow loan sales in future periods and sees continued strong insurance performance.

• Anticipates ongoing cost pressures from tariffs and inflation, with $5 million impact on COGS this quarter.

• Legislation such as the 21st Century ROAD to Housing Act and state-level reforms expected to benefit the industry over time.

• The company maintains a conservative cost structure and strong balance sheet to support future expansion and acquisitions.