Cavco Industries Reports Fiscal 2025 Second Quarter Results and Announces New $100 Million Stock Repurchase Program

Core Insights - Cavco Industries, Inc. reported strong financial results for the second fiscal quarter ended September 28, 2024, with net revenue of $507 million, an increase of $55 million or 12.3% compared to the same period last year, driven primarily by home sales volume growth [1][4] - The company experienced a 15.7% increase in home sales volume and improved capacity utilization, rising to approximately 70% from 60% in the prior year [1][4] - Backlogs reached $276 million, up $44 million or 19% from the previous quarter, indicating strong demand for factory-built housing [1][4] Financial Performance - Net revenue for factory-built housing was $486.3 million, a 12% increase from $434.1 million in the prior year [4] - Financial services segment revenue increased by 17.6% to $21.1 million, up from $18 million [4] - Gross profit as a percentage of net revenue for factory-built housing was 22.9%, slightly down from 23.2% in the prior year [1][6] Income and Earnings - Income before income taxes was $55 million, a 6.4% increase from $51.7 million in the prior year [1][4] - Net income attributable to Cavco common stockholders was $43.8 million, compared to $41.5 million in the prior year, resulting in a diluted net income per share of $5.28, up from $4.76 [1][8] Operational Highlights - The company repurchased approximately $44 million in stock during the quarter and announced an additional $100 million stock repurchase program [1] - The financial services segment showed improvement following $4 million in claims related to Hurricane Beryl [2] - The company emphasized the resilience of its workforce in the face of challenges posed by recent hurricanes, maintaining operations to meet customer needs [3] Market Position - Cavco is one of the largest producers of manufactured and modular homes in the U.S., with a diverse range of products marketed under various brand names [10] - The company also operates a finance subsidiary, CountryPlace Mortgage, and an insurance subsidiary, Standard Casualty, enhancing its market presence [10]