Cavco Industries (CVCO) Investor presentation summary

Market context and industry drivers

• U.S. faces a 6 million unit housing 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 housing shipments have grown 106% since 2009, now representing 5% of all occupied housing.

• Zoning restrictions are easing, and product innovation is opening new urban markets.

• The 21st Century ROAD to Housing Act modernizes regulations, expands financing, and streamlines approvals for manufactured homes.

Financial performance and strategy

• Revenue for the twelve months ended June 27, 2026, was $2.3B, with a gross margin of 23.2% and EBITDA margin of 10.7%.

• Free cash flow generation reached $234.5M, with zero corporate debt and $266M in cash as of Q1'27.

• $310M was allocated to share repurchases, $172M to the acquisition of American Homestar, and $77M to internal capital improvements over the past two years.

• Cumulative share repurchases total $612M, representing 19.4% of outstanding shares.

• Average net revenue per home sold was $104,712, with 21,083 homes sold in the last twelve months.

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 by nearly 60% through acquisitions, including two new manufacturing facilities and nineteen retail locations.

• A new greenfield manufacturing facility in El Mirage, Arizona, is planned to be operational by mid-2027.

• Ongoing investments in digital marketing, technology, and environmental initiatives support continued growth.