Cavco Industries (CVCO) Investor presentation summary

Market context and industry drivers

• U.S. faces a 6 million housing unit deficit, with over 65% of households unable to afford median-priced new homes in most states.

• Manufactured housing offers the most affordable form of unsubsidized home ownership, with average retail prices around $124,000 versus $406,000 for site-built homes.

• Manufactured homes now represent 5% of all occupied housing, with shipments growing 106% since 2009.

• Demand is driven by diverse buyer segments and community operators, with zoning improvements opening new urban markets.

• Rising interest rates have less impact on manufactured home buyers compared to site-built buyers.

Financial performance and strategy

• Fiscal 2026 revenue reached $2.2B, with EBITDA margin at 11.2% and gross margin at 23.5%.

• Free cash flow for FY26 was $231.8M, with zero corporate debt and $258M in cash as of Q4'26.

• $309M was allocated to share repurchases, $172M to the acquisition of American Homestar, and $57M to internal improvements over two years.

• Cumulative share repurchases total $582M, reducing outstanding shares by ~18.8%.

• Factory home backlogs represent 5-7 weeks of production, supporting ongoing revenue visibility.

Operational excellence and capacity expansion

• Safety initiatives reduced incident rates by 55% from 2020 to 2025, outperforming industry averages.

• Investments in modern equipment and lean manufacturing have increased productivity and quality.

• Capacity expanded nearly 60% through acquisitions, including two new facilities and nineteen retail locations.

• New greenfield manufacturing facility in El Mirage, AZ, is planned to be operational by mid-2027.

• Ongoing investments in digital marketing and manufacturing technology drive further productivity gains.