Cavco(US:CVCO)2025-10-31 20:40Financial Performance - Net revenue for the three months ended September 27, 2025, was $556,527, an increase of 9.7% compared to $507,461 for the same period in 2024[12]. - Gross profit for the six months ended September 27, 2025, was $263,913, representing a 20.2% increase from $219,524 in the prior year[12]. - Net income for the six months ended September 27, 2025, was $104,023, up 33.0% from $78,244 for the same period in 2024[12]. - Home sales revenue for the three months ended September 27, 2025, was $509,750, a 8.5% increase from $469,676 in the same period of 2024[23]. - The company’s comprehensive income for the six months ended September 27, 2025, was $104,233, compared to $78,501 for the same period in 2024, marking a 32.8% increase[12]. - Net income for the three months ended September 27, 2025, was $52,381,000, compared to $43,815,000 for the same period in 2024, representing a 19% increase[51]. - The company’s total net revenue for the six months ended September 27, 2025, was $1,113,384,000, compared to $985,060,000 for the same period in 2024, reflecting a 13% increase[55]. Cash Flow and Liquidity - Cash provided by operating activities for the six months ended September 27, 2025, was $133,994, compared to $102,074 in the prior year, reflecting a 31.1% increase[14]. - The company reported a net cash increase of $24,609 for the six months ended September 27, 2025, compared to an increase of $17,464 in the same period of 2024[14]. - The company’s cash, cash equivalents, and restricted cash at the end of the period were $399,954, compared to $386,217 at the end of the same period in 2024[14]. - Cash, cash equivalents, and restricted cash at the end of the period increased by $13,737,000 to $399,954,000 as of September 27, 2025, from $386,217,000 in the prior year[88]. Expenses and Profitability - Selling, general and administrative expenses for the three months ended September 27, 2025, were $72,229, up 7.4% from $66,997 in the same period of 2024[12]. - Gross profit for the three months ended September 27, 2025, increased by 15.7% to $134,407,000 compared to $116,122,000 for the same period in 2024[79]. - Financial services gross profit surged by 158.9% to $11,914,000 for the three months ended September 27, 2025, driven by higher insurance premiums and lower claim losses[80]. Assets and Investments - The company’s total assets as of September 27, 2025, were estimated at $1,041,977,000, reflecting an increase from $1,033,411,000 as of June 29, 2024[50]. - Total consolidated assets as of September 27, 2025, were $1,449,069,000, an increase from $1,406,645,000 on March 29, 2025[58]. - Investments increased from $37,909 thousand in March 2025 to $41,206 thousand in September 2025, representing an increase of 8.0%[25]. - The fair value of available-for-sale debt securities rose from $21,415 thousand in March 2025 to $23,197 thousand in September 2025, an increase of 8.3%[25]. Loans and Financing - Consumer loans receivable decreased from $58,162 thousand in March 2025 to $54,428 thousand in September 2025, a decline of 6.3%[28]. - Commercial loans receivable increased from $100,297 thousand in March 2025 to $108,038 thousand in September 2025, an increase of 7.3%[30]. - The weighted average contractual interest rate for consumer loans held for investment was 7.8% in September 2025, slightly down from 7.9% in March 2025[28]. - The company had outstanding interest rate lock commitments with a notional amount of $25.2 million as of September 27, 2025, up from $16.3 million as of March 29, 2025[46]. Stock and Equity - The total stockholders' equity increased to $1,086,137 thousand as of September 27, 2025, from $1,064,582 thousand as of March 29, 2025[49]. - The stock repurchase plan announced on October 31, 2024, approved $100 million in stock repurchases, with no remaining balance as of September 27, 2025[100]. - The stock repurchase plan announced on May 22, 2025, approved $150 million in stock repurchases, with $142 million remaining as of September 27, 2025[100]. - During the second quarter of fiscal year 2026, a total of 67,070 shares were repurchased, with an average price paid per share of $549.73[99]. Market and Operational Insights - The factory-built housing segment generated net revenue of $535,117,000 for the three months ended September 27, 2025, up from $486,343,000 in the same period of 2024, reflecting a 10% growth[55]. - The number of factory-built homes sold by company-owned retail sales centers increased by 15.0% to 1,187 homes for the three months ended September 27, 2025[76]. - The backlog of orders as of September 27, 2025, was $210 million, up from $197 million at March 29, 2025, but down from $276 million at September 28, 2024[73]. - The average net revenue per factory-built home sold increased by 4.4% to $103,344 for the three months ended September 27, 2025[76]. - The company operates 31 homebuilding production lines across various states and two international lines in Mexico[65]. - The company is focused on building energy-efficient homes and exploring niche market opportunities to enhance competitiveness[68]. Strategic Acquisitions - The company completed the acquisition of American Homestar Corporation for $190 million, enhancing its manufacturing and retail presence in the South Central U.S.[59]. - The company plans to acquire American Homestar and continue evaluating potential acquisitions and strategic investments[86].