Champion Homes (SKY) Q1 2026 earnings summary

Executive summary

• Net sales rose 11.7% year-over-year to $701.3 million, driven by higher volumes and pricing in U.S. and Canadian operations, with U.S. homes sold up 6.5% to 6,965 and average U.S. selling price up 3.6% to $95,000.

• Net income increased 41.3% to $64.7 million, and adjusted EBITDA grew 25.6% to $94.2 million, reflecting strong operational execution and higher sales.

• Gross profit margin expanded by 90 basis points to 27.1%, and adjusted EBITDA margin improved by 150 basis points to 13.4%.

• Strategic priorities advanced with new executive hires, national recognition for new HUD code and modular homes, and the completed Iseman Homes acquisition.

• $50 million in share repurchases completed during the quarter; share repurchase authorization increased to $150 million.

Financial highlights

• Gross profit increased 15.6% to $189.8 million, with gross margin at 27.1% versus 26.2% a year ago.

• Operating income increased 41.8% to $78.5 million; diluted EPS was $1.13, up from $0.79 year-over-year.

• Cash and cash equivalents stood at $605.3 million at quarter-end; net cash from operations was $75.3 million.

• Adjusted net income was $68.6 million, with adjusted diluted EPS at $1.19, up from $0.91 year-over-year.

• $50 million in share repurchases completed; $150 million authorized for future repurchases.

Outlook and guidance

• Q2 revenue expected to be flat to up low single digits year-over-year, with near-term gross margin anticipated in the 25%-26% range.

• Management remains confident in strategy and demand, focusing on operational agility and disciplined capital allocation.

• Backlog decreased to $302.5 million from $404.8 million year-over-year, with average lead time at 7 weeks.

• Board refreshed share repurchase authorization to $150 million and amended credit facility through 2030.

• Monitoring impact of new U.S. tax legislation (OBBBA) for potential material effects.