Cavco Industries (CVCO) Q4 2026 earnings summary

Executive summary

• Achieved record annual shipments of 20,842 homes and record home sales in fiscal 2026, despite a slight industry decline in HUD shipments.

• Significant progress in digital marketing, unified branding, and product line transformation, enhancing market reach.

• Integration and acquisition of American Homestar progressing, contributing to cost synergies exceeding $10 million annually and improved operating performance.

• Broke ground on a new high-capacity plant in Phoenix/El Mirage, Arizona, reflecting long-term capital allocation strategy and expanding Southwest presence.

• Backlogs increased nearly 25% sequentially during the year, with five to seven weeks of backlog at quarter-end, though year-end backlog was $195 million, slightly down from $197 million prior year.

Financial highlights

• Q4 net revenue was $550.1 million, up 8.2% year-over-year; full-year net revenue rose 11.4% to $2,245 million.

• Factory-built housing segment Q4 revenue rose 8.2% to $528 million; financial services revenue up 7.7% to $22.1 million.

• Q4 net income was $42.5 million, up from $36.3 million; diluted EPS was $5.42 versus $4.47; full-year diluted EPS was $23.98, up from $20.71.

• Consolidated gross margin for Q4 was 23.1%, up from 22.8%; factory-built housing gross margin was 21.2%, down from 22.3%; financial services gross margin surged to 69.4%.

• Full-year income before income taxes increased 15.9% to $245 million.

Outlook and guidance

• Order rates and backlogs improved across all regions in March and April, supporting higher production in Q1; wholesale orders in Q4 increased significantly, especially in March.

• Management expects to increase shipments sequentially as plants with low backlogs ramp up, but remains cautious due to ongoing market uncertainty.

• Margin pressure anticipated from rising material costs and tariffs, especially steel and lumber.

• Legislation supporting factory-built housing expected to drive long-term growth, though benefits will phase in over time.