Champion Homes (SKY) investor relations material

Executive summary

• Net sales rose 12% year-over-year to $701M, with homes sold up 8% to 7,215 units, driven by broad-based demand and effective cost management.

• Net income increased 41.3% to $65M, and adjusted EBITDA grew 26% to $94M, reflecting strong operational execution and higher sales.

• Gross profit margin expanded by 90 bps to 27.1%, aided by higher ASPs and lower material costs.

• Strategic priorities advanced with key leadership additions, national recognition for new HUD Code and modular homes, and expanded retail/manufacturing footprint via Iseman Homes acquisition.

• $50M in share repurchases completed; share repurchase authorization increased to $150M.

Financial highlights

• Gross profit grew 16% to $190M; gross margin at 27.1% versus 26.2% a year ago.

• Operating income increased 42% to $78.5M; diluted EPS was $1.13, up from $0.79 year-over-year.

• Net cash from operations was $75M; cash and equivalents at quarter-end were $605M.

• SG&A as a percent of sales: 15.9% (down from 17.3%), reflecting cost discipline despite higher variable compensation and integration costs.

• $50M in share repurchases completed during the quarter; $150M authorized for future repurchases.

Outlook and guidance

• Q2 revenue expected to be flat to up low single digits year-over-year, with order rates moderating from Q1.

• Near-term gross margin guided to 25–26%, reflecting cautious consumer sentiment and product mix.

• Backlog decreased to $302.5M from $404.8M year-over-year due to lower orders and higher production rates.

• Management remains confident in strategy and demand, with focus on operational agility and disciplined capital allocation.

• Monitoring impact of new U.S. tax legislation (OBBBA) for potential material effects.