Cavco Industries, Inc. has announced that Net Revenue was up 11.3% during the third fiscal quarter, which ended Dec. 27.
On Sept. 29, 2025, the company completed the acquisition of American Homestar Corporation, which operates two manufacturing lines, nineteen retail locations and a financial services operation. Since the acquisition date, the results of American Homestar have been included in Cavco’s consolidated financial statements.
Quarterly Highlights
- Net revenue was $581 million, up $59 million or 11.3% compared to $522 million in the third quarter of the prior year, primarily on home sales volume and average selling price per home growth.
- Home sales volume was up 3.2%, and capacity utilization decreased to approximately 70% from approximately 75% in the third quarter of the prior year.
- Factory-built housing Gross profit as a percentage of Net revenue was 21.7%, compared to 23.6% in the same period in the prior year.
- Financial services Gross profit as a percentage of Net revenue was 65.2%, compared to Gross profit of 55.5% in the same period in the prior year.
- Income before income taxes was $58 million, down $11 million, or 16.9%, compared to $69 million in the same period in the prior year.
- Net income per diluted share attributable to Cavco common stockholders was $5.58, down 19.1%, compared to $6.90 in the prior-year quarter.
- American Homestar contributed $42 million to Net revenue with 343 homes sold and $6.9 million of incremental SG&A. Additionally, we had $2.9 million of deal costs in the quarter.
- Backlogs totaled $160 million at the end of the quarter, representing 4-6 weeks of production.
- Stock repurchases were approximately $44 million in the quarter, leaving approximately $98 million available for repurchases under our previously announced Board authorizations.
Commenting on the quarter, President and CEO Bill Boor said, “Industry shipments slowed in the quarter with HUD shipments at a significantly lower pace in the reported October and November period. Our operating approach was to use the backlog and additional days down over the holidays to maintain a steady daily production pace in the factories. Looking forward, affordable housing continues to rise in national policy discussions, and as we talk with retailers and communities, the tone in the market remains optimistic. We will be looking to the Spring selling season to determine our ability to increase production from here.”
He continued, “Notably, our Financial Services segment results continue to be very strong, reflecting the outstanding work to improve the profitability of the insurance operation. Additionally, we are now through the first full quarter with American Homestar. This quarter’s results are expected to reflect deal costs and integration plan spending. However, as that investment phase concludes, we will see the positive impact of this deal, which will exceed our previous expectations.”
