Legacy Housing (LEGH) Q1 2025 earnings summary

Executive summary

• Net revenue for Q1 2025 was $35.7 million, down 17.5% year-over-year, driven by a 21.2% decline in product sales volume, especially in mobile home park and retail sales.

• Net income fell 32.1% to $10.3 million, and basic EPS dropped 30.6% to $0.43 per share compared to Q1 2024.

• The company sold 427 home sections in Q1 2025 versus 645 in Q1 2024, remaining a leading U.S. manufactured home producer.

• Management implemented product simplification, adjusted park financing, and made key hires to drive future growth.

• Vertically integrated operations and diverse financing solutions continue to support the business model.

Financial highlights

• Product sales fell to $24.3 million (down 21.2% year-over-year); net revenue per unit sold increased 23.1% due to a higher mix of retail sales.

• Gross profit margin declined to 29.2% from 33.6% year-over-year.

• Operating income was $11.6 million, down 30.8% from Q1 2024.

• Cash at quarter-end was $3.4 million, up from $1.1 million at year-end 2024; operating cash flow was $4.9 million for Q1 2025.

• No outstanding balance on the $50 million revolving credit facility as of March 31, 2025.

Outlook and guidance

• Management expects higher production in Texas and Georgia plants in Q2 versus Q1.

• Gross margin is expected to stabilize around 30% for the remainder of 2025.

• Retail loan originations and unit sales in April and May 2025 are at multi-year highs, indicating a strong spring selling season.

• Management remains positive on the full-year outlook, citing healthy dealer activity and regulatory optimism.

• Cash flow, cash on hand, and available credit are expected to be sufficient for operations and growth for at least the next 12–18 months.