Cavco Industries (CVCO) Q4 2025 earnings summary

Executive summary

• Net revenue for Q4 2025 was $508.4 million, up 21% year-over-year, with full year revenue reaching $2,015 million, a 12.3% increase.

• Fourth quarter saw a 29% year-over-year increase in unit shipments, with Q4 factory-built modules sold up 32.6% and homes sold up 28.5%.

• Orders and backlogs continued to rise through March and April, with year-end backlogs at $197 million, up from $191 million.

• A major rebranding initiative unified all manufacturing plants under the Cavco name, aligning product lines and enhancing digital marketing.

• $150 million in stock repurchases completed, with an additional $150 million repurchase program approved.

Financial highlights

• Q4 net income was $36.3 million ($4.47 diluted EPS), with adjusted net income of $43.9 million ($5.40 EPS) excluding rebranding costs.

• Full year net income was $171 million, up 8.4% year-over-year; adjusted net income was $179 million, up 13.2%.

• Q4 gross margin was 22.8%, down 80 basis points year-over-year; full year margin was 23.1%, down 70 basis points.

• Q4 factory-built housing revenue rose 22.4% to $487.9 million; financial services revenue declined 5.2% to $20.5 million.

• Q4 net factory-built housing revenue per home sold was $96,415, down 4.7% year-over-year.

Outlook and guidance

• April order rates and backlog growth continued the positive trend from March, with most plants anticipating stable or increased production rates.

• Unified branding and national product lines are expected to simplify the home search process and leverage marketing efforts.

• Gross margins are expected to face pressure from commodity price volatility and tariffs, with regional pricing competition, especially in Florida and for single-section homes.

• Tariff impacts are expected to begin affecting costs at the end of Q1 and more significantly in Q2, with management focused on proactive mitigation.