Cavco Industries (CVCO) Q1 2026 earnings summary

Executive summary

• Net revenue rose 16.6% year-over-year to $556.9 million, driven by higher home sales volume and increased revenue per home sold.

• Net income increased to $51.6 million from $34.4 million last year, with diluted EPS up to $6.42, reflecting strong factory-built housing and improved financial services.

• Record 5,416 homes shipped, with backlogs stable at $200 million, representing 5-7 weeks of production.

• Announced agreement to acquire American Homestar for $184–$190 million in cash, expected to close in Q3 FY2026, expanding reach in the South Central US.

• Stock repurchases totaled $50–$54.7 million during the quarter; $178 million remains authorized.

Financial highlights

• Factory-built housing revenue grew 17.0% to $535.7 million; financial services revenue rose 8.2% to $21.2 million.

• Gross profit increased 25.2% to $129.5 million, with consolidated gross margin at 23.3%.

• Net income was $51.6 million, with diluted EPS at $6.42.

• Pre-tax profit rose 48.9% to $65.3 million.

• Cash and cash equivalents totaled $344.6–$368.4 million at quarter end.

Outlook and guidance

• Management expects sufficient liquidity to fund operations, the American Homestar acquisition, and growth initiatives for at least the next 12 months.

• Order rates remain strong with no signs of a drop, though uncertainty persists and production levels will be adjusted as needed.

• Industry home shipments increased 5.3% year-to-date through May 2025, supporting a positive demand outlook.

• Tariff impacts are expected to increase in future quarters, with potential quarterly costs rising to $2–5.5 million if fully implemented.

• Management remains confident in Texas market growth over the next 2–4 years, supported by the American Homestar acquisition.