Legacy Housing (LEGH) Q4 2025 earnings summary

Executive summary

• Net revenue for 2025 was $164.6 million, down 10.7% year-over-year, with unit sales down 20%, but revenue per unit rose 13% due to price increases and tariffs.

• Net income for 2025 was $41.8 million, down 32.2% from 2024, with diluted EPS at $0.74 and basic EPS at $1.74.

• Q4 2025 net income was $8.2 million, a 43% decrease year-over-year, with net revenue down 29%, largely due to non-recurring sales in Q4 2024.

• Book value per share increased 8.6% to $22.20 at year-end 2025.

• Income from operations fell 23.9% to $48.4 million compared to 2024.

Financial highlights

• Product sales fell 9.6% to $116.9 million; commercial sales to park customers dropped 30% due to capital caution and high occupancy.

• Direct and retail store sales increased 25% and 12.7%, respectively.

• Consumer loan portfolio grew 14% to $203.6 million; interest income rose 6.1% to $43.7 million.

• Product gross margin declined to 27.5% from 30.4% in 2024.

• Generated $37.2 million in cash from operations in 2025.

Outlook and guidance

• Expectation for continued growth in consumer loan portfolio and interest income.

• SG&A as a percentage of sales anticipated to normalize in 2026 as non-recurring items subside.

• Management expects a better year in 2026, with product profits improving across segments, especially from workforce housing and data center demand.

• Anticipates higher production in Texas facilities and significant orders for workforce housing in 2026.

• Management remains confident in long-term demand for affordable manufactured housing.