Cavco(CVCO) - 2026 Q1 - Quarterly Results

Cavco Industries Fiscal 2026 First Quarter Results Quarterly Highlights Cavco reported strong Q1 FY2026 results with a 16.6% revenue increase to $557 million and 56% diluted EPS growth to $6.42 Quarterly Highlights Summary | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $557 million | $478 million | +16.6% | | Home Sales Volume Growth | +14.7% | N/A | N/A | | Capacity Utilization | ~75% | ~65% | +10 p.p. | | Net Income per Diluted Share | $6.42 | $4.11 | +56% | | Backlog | $200 million | N/A | N/A | | Stock Repurchases | $50 million | N/A | N/A | - Management noted that the decision to increase plant run rates in previous quarters was validated by higher shipments and a stable backlog in Q1[5] - The company entered into a definitive agreement to acquire American Homestar Corporation to expand its presence in the South Central US[5] Financial Performance Analysis Financial performance was robust, driven by strong growth in factory-built housing and a significant rebound in financial services gross profit Revenue Analysis Total net revenue increased 16.6% to $556.9 million, driven by growth in both factory-built housing and financial services segments Revenue by Segment | Revenue by Segment ($ in thousands) | Q1 FY2026 | Q1 FY2025 | Change (%) | | :--- | :--- | :--- | :--- | | Factory-built housing | $535,694 | $458,048 | 17.0% | | Financial services | $21,163 | $19,551 | 8.2% | | Total Net Revenue | $556,857 | $477,599 | 16.6% | Home Sales Metrics | Home Sales Metrics | Q1 FY2026 | Q1 FY2025 | Change (%) | | :--- | :--- | :--- | :--- | | Factory-built homes sold | 5,416 | 4,721 | 14.7% | | Net revenue per home sold | $98,910 | $97,024 | 1.9% | - The increase in Financial services revenue was primarily driven by higher insurance premiums[8] Profitability Analysis Consolidated gross profit increased 25.2% to $129.5 million, driven by significant margin improvement in financial services Gross Profit by Segment | Gross Profit by Segment ($ in thousands) | Q1 FY2026 | Q1 FY2025 | Change (%) | | :--- | :--- | :--- | :--- | | Factory-built housing | $120,845 | $103,510 | 16.7% | | Financial services | $8,661 | $(108) | NM | | Total Gross Profit | $129,506 | $103,402 | 25.2% | Gross Margin by Segment | Gross Margin by Segment | Q1 FY2026 | Q1 FY2025 | Change (p.p.) | | :--- | :--- | :--- | :--- | | Factory-built housing | 22.6% | 22.6% | 0.0 p.p. | | Financial services | 40.9% | (0.6)% | +41.5 p.p. | | Consolidated | 23.3% | 21.7% | +1.6 p.p. | - The significant improvement in Financial Services profitability was due to lower insurance claims losses compared to the prior year, which was heavily impacted by weather events, as well as increased premiums and improved underwriting[10] Net Income and EPS Net income grew 50.0% to $51.6 million, resulting in a 56.2% increase in diluted net income per share to $6.42 Net Income and EPS Metrics | Metric ($ in thousands, except per share) | Q1 FY2026 | Q1 FY2025 | Change (%) | | :--- | :--- | :--- | :--- | | Net Income | $51,642 | $34,429 | 50.0% | | Diluted Net Income per Share | $6.42 | $4.11 | 56.2% | Financial Statements Consolidated financial statements show a stable financial position with total assets of $1.42 billion and strong quarterly performance Consolidated Balance Sheets The balance sheet as of June 28, 2025, shows total assets of $1.42 billion and stable stockholders' equity of $1.06 billion Key Balance Sheet Items | Key Balance Sheet Items ($ in thousands) | June 28, 2025 | March 29, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $344,626 | $356,225 | | Total current assets | $915,272 | $910,186 | | Total assets | $1,419,617 | $1,406,645 | | Total current liabilities | $317,280 | $303,166 | | Total liabilities | $354,784 | $342,063 | | Total stockholders' equity | $1,064,833 | $1,064,582 | Consolidated Statements of Income The income statement shows a 16.6% revenue increase to $556.9 million and a 50.0% net income growth to $51.6 million Income Statement | Income Statement ($ in thousands) | Q1 FY2026 | Q1 FY2025 | Change (%) | | :--- | :--- | :--- | :--- | | Net revenue | $556,857 | $477,599 | 16.6% | | Gross profit | $129,506 | $103,402 | 25.2% | | Income from operations | $60,358 | $38,551 | 56.6% | | Net income | $51,642 | $34,429 | 50.0% | Other Operating Data Capital expenditures significantly increased to $9.0 million in Q1 FY2026, with modest increases in depreciation and amortization Operating Data | Operating Data ($ in thousands) | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Capital expenditures | $9,009 | $4,914 | | Depreciation | $4,797 | $4,369 | | Amortization of other intangibles | $372 | $392 | Corporate Information and Outlook Management expressed confidence in performance, highlighted strategic acquisition plans, and demonstrated commitment to shareholder returns Management Commentary CEO Bill Boor affirmed increased plant run rates led to higher shipments and stable backlogs, highlighting financial services contribution and business model flexibility - CEO Bill Boor stated that plants increased run rates in anticipation of order growth, which was rewarded with higher shipments and a stable quarter-to-quarter consolidated backlog[5] - The company's flexible business model is considered a key strength, making it well-positioned to adjust to market uncertainties[5] Business Outlook and Strategy Cavco is pursuing strategic growth through the acquisition of American Homestar Corporation to expand its South Central US presence - The company has entered into a definitive agreement to acquire American Homestar Corporation[5] - This acquisition is a strategic move to expand Cavco's reach in the South Central US and continue putting more families into affordable homes[5] Shareholder Activities Cavco repurchased $50 million of its stock in Q1, with $178 million remaining for future repurchases - The company repurchased approximately $50 million of its stock during the quarter[6] - $178 million remains available for repurchases under previously announced Board authorizations[6] Conference Call Details A conference call to discuss Q1 results is scheduled for August 1, 2025, with webcast availability on the investor relations website - A conference call to review the results is scheduled for August 1, 2025, at 1:00 p.m. (Eastern Time)[12] - A live webcast and a 60-day archive will be available on the company's investor relations website[12]