Cavco Industries Reports Fiscal 2025 Third Quarter Results

Core Insights - Cavco Industries, Inc. reported significant financial improvements in the third fiscal quarter ended December 28, 2024, driven by increased home shipments and a recovery in financial services [3][5][6] Financial Performance - Net revenue reached $522 million, an increase of $75 million or 16.8% compared to $447 million in the same quarter last year, primarily due to growth in home sales volume [5][20] - Home sales volume increased by 21.6%, with capacity utilization rising to approximately 75% from about 60% in the prior year [5][20] - Gross profit for factory-built housing as a percentage of net revenue was 23.6%, up from 22.4% in the prior year [5][11] - Financial services gross profit as a percentage of net revenue surged to 55.5%, compared to 36.8% in the previous year [5][11] Income and Earnings - Income before income taxes was $69.3 million, reflecting a 57.9% increase from $43.9 million in the prior year [5][20] - Net income attributable to Cavco common stockholders was $56.5 million, up 56.9% from $36 million in the same quarter last year [5][20] - Diluted net income per share increased to $6.90, a 62% rise compared to $4.27 in the prior year quarter [5][20] Operational Highlights - Backlogs totaled $224 million at the end of the quarter, representing 6-8 weeks of production [5] - Stock repurchases amounted to approximately $42 million during the quarter [5] Segment Performance - The factory-built housing segment saw net revenue of $500.9 million, up 17.3% from $426.9 million in the prior year [4][5] - Financial services segment net revenue increased to $21.2 million, a 6.8% rise from $19.8 million in the previous year [4][5] - The increase in financial services revenue was attributed to higher insurance premiums [7][11] Cost and Expenses - Selling, general and administrative expenses rose to $66 million, a 4.2% increase compared to the previous year [8][20] - The effective tax rate was 18.6%, influenced by higher-than-expected production of Energy Star homes [5][20]