Champion Homes, Inc. announced financial results for its first quarter ended June 28.
First Quarter Fiscal 2026 Highlights (compared to First Quarter Fiscal 2025)
- Net sales increased 11.7% to $701.3 million
- U.S. homes sold increased 6.5% to 6,965
- Backlog decreased 11.9% to $302.5 million from the sequential fourth quarter of fiscal 2025
- Average selling price (ASP) per U.S. home sold increased 3.6% to $95,000
- Gross profit margin expanded by 90 basis points to 27.1%
- Net income increased by 41.3% to $64.7 million
- Earnings per diluted share (EPS) increased 43% to $1.13
- Adjusted EBITDA increased 25.6% to $94.2 million
- Adjusted EBITDA margin expanded by 150 basis points to 13.4%
- Net cash generated by operating activities of $75.3 million during the quarter
- Repurchased $50 million of shares under the share repurchase program
- Closed on the previously announced Iseman Homes acquisition
“The Champion Homes team delivered strong financial results to start fiscal year 2026, driven by our customer-centric strategy and agile operational execution,” said Tim Larson, president and CEO of Champion Homes. “We are pleased with the results we were able to deliver in the first quarter given the dynamic market and consumer environment. We remain confident in our strategy and the demand for our homes, as reflected by our disciplined approach to capital allocation, including the closing of our acquisition of Iseman Homes and $50 million of share repurchases in the quarter.”
First Quarter Fiscal 2026 Results
Net sales for the first quarter fiscal 2026 increased 11.7% to $701.3 million compared to the prior-year period. The number of U.S. homes sold in the first quarter fiscal 2026 increased 6.5% to 6,965 mainly driven by an increase in shipments to the community sales channel. The ASP per U.S. home sold increased 3.6% to $95,000 due to changes in product mix and increased prices on new homes sold through company-owned retail sales centers. The number of Canadian factory-built homes sold in the quarter increased to 250 homes compared to 167 homes in the prior-year period due to improving demand in certain markets.
Gross profit increased by 15.6% to $189.8 million in the first quarter fiscal 2026 compared to the prior-year period. Gross profit margin was 27.1% of net sales, a 90-basis point expansion compared to 26.2% in the first quarter fiscal 2025. Gross margin expansion reflects higher ASPs on new homes sold through company-owned retail sales centers in the current quarter, and the unfavorable purchase accounting impact in the prior year related to the value of inventory acquired in the purchase of Regional Homes.
Selling, general, and administrative expenses (“SG&A”) in the first quarter fiscal 2026 increased to $111.3 million from $108.8 million in the same period last year. SG&A during the quarter increased due to higher variable compensation from higher sales volumes and profitability, costs associated with plant closures and the inclusion of Iseman Homes, partially offset by a charge of $7.9 million in the first quarter of fiscal 2025 for the change in the fair value of contingent consideration related to the acquisition of Regional Homes which did not reoccur in the current period. SG&A as a percentage of net sales was 15.9%, compared to 17.3% in the prior year period.
Net income increased by 41.3% to $64.7 million for the first quarter fiscal 2026 compared to the prior-year period. The increase in net income was driven by higher sales and gross profit in the quarter.
Adjusted EBITDA for the first quarter fiscal 2026 increased by 25.6% to $94.2 million compared to the first quarter fiscal 2025. Adjusted EBITDA margin for the quarter was 13.4%, compared to 11.9% in the prior-year period.
As of June 28, Champion Homes had $605.3 million in cash and cash equivalents, a decrease of $5.0 million in the current quarter. The Company closed on the acquisition of Iseman Homes during the first quarter and repurchased and retired $50 million of its common stock under the previously announced repurchase program. On July 24, 2025, the Board of Directors refreshed the share repurchase authorization to provide for $150 million of potential future repurchases.
On July 28, Champion Homes amended and extended the existing credit facility through 2030. This amendment enhances capacity for the Company’s strategic priorities. Additional details are available in the Form 8-K filed with the Securities and Exchange Commission.
