Champion Homes (SKY) investor relations material

Executive summary

• Net sales for Q1 fiscal 2027 rose 1.3% year-over-year to $710.2 million, driven by higher U.S. manufacturing and retail sales, while Canadian sales declined.

• Net income attributable to the company declined 24% year-over-year to $49.2 million, with adjusted net income at $48.3 million and adjusted EPS at $0.88.

• Gross profit margin was 25.2%, impacted by higher material input costs; adjusted EBITDA was $73.6 million (10.4% margin).

• Backlog increased to $421.8 million from $302 million a year ago, reflecting strong order rates and execution across diversified channels.

• The Homes Direct acquisition closed in August, expanding the retail footprint by 11 stores and supporting the direct-to-consumer strategy.

Financial highlights

• U.S. homes sold rose 1.8% to 7,089 units; average selling price up 0.6% to $95,600.

• Canadian segment net sales dropped 22.6% to $23.3 million, mainly due to a 26% decrease in homes sold.

• Adjusted gross profit was $179 million (25.2% margin); adjusted SG&A was 16.4% of net sales.

• Cash and equivalents ended at $784.7 million, up from $638.3 million at year-end, mainly due to ECN transaction proceeds.

• Net cash provided by operating activities was $72.5 million; investing activities provided $126 million, mainly from the ECN sale.

Outlook and guidance

• Q2 revenue expected to grow mid-single digits year-over-year, excluding Homes Direct.

• Near-term adjusted gross margin expected in the 25%-26% range; adjusted SG&A as a percent of sales to remain at 16%-17%.

• Fiscal 2027 effective tax rate expected to rise to ~25% due to ENERGY STAR tax credit expiration.

• Management expects cash flows and liquidity to be sufficient for ongoing operations, capital expenditures, and strategic initiatives.

• Homes Direct will be additive to future results but is not included in Q2 guidance.