Champion Homes announced financial results for its fourth quarter and full year ended March 29.
Q4 Fiscal 2025 Highlights (compared to Q4 Fiscal 2024)
- Net sales increased 10.7% to $593.9 million
- U.S. homes sold increased 5.1% to 5,941
- Backlog increased 8.8% compared to March 2024 and increased 9.9% to $343.4 million from the sequential third quarter
- Average selling price (ASP) per U.S. home sold increased 5% to $94,300
- Gross profit margin expanded by 740 basis points to 25.7%
- Net income increased by $33.6 million to $36.3 million
- Earnings per diluted share (EPS) increased by $0.58 to $0.63
- Adjusted EBITDA decreased 1.1% to $52.6 million
- Adjusted EBITDA margin contracted by 110 basis points to 8.9%
- Net cash generated by operating activities increased $41.9 million to $46 million
- Repurchased $20 million of shares under the share repurchase program
Full Year Fiscal 2025 Highlights (compared to Full Year Fiscal 2024)
- Net sales increased 22.7% to $2.5 billion
- Gross profit margin expanded by 270 basis points to 26.7%
- Earnings per share (EPS) increased 35.2% to $3.42
- Net income increased by $51.7 million to $198.4 million
- Adjusted EBITDA increased 16.2% to $285.1 million
- Adjusted EBITDA margin contracted by 60 basis points to 11.5%
- Net cash generated by operating activities increased $18.2 million to $240.9 million
Q4 fiscal 2024 impacted by $34.5 million of estimated remediation costs for water intrusion product liability.
“Champion delivered strong results across our family of brands and key business drivers in fiscal 2025,” said Tim Larson president and CEO of Champion Homes. “Our performance was driven by an unwavering focus on our customers and executing our strategy across all channels – reflecting the tenacity of the Champion team. We are focused on managing through the current market volatility and uncertainty while remaining confident in our strategy. As a result, we are investing in new products and services in support of our channel partners, and expanding our retail capabilities, including announcing today the acquisition of Iseman Homes.”
Fourth Quarter Fiscal 2025 Results
Net sales for the fourth quarter fiscal 2025 increased 10.7% to $593.9 million compared to the prior-year period. The number of U.S. homes sold in the fourth quarter fiscal 2025 increased 5.1% to 5,941 driven by an increase in demand. The ASP per U.S. home sold increased 5.0% to $94,300 due to product mix, including a higher number of units sold through our company-owned retail sales centers. The number of Canadian factory-built homes sold in the quarter increased to 230 homes compared to 189 homes in the prior-year period due to higher demand in certain markets.
Gross profit increased by 55.0% to $152.5 million in the fourth quarter fiscal 2025 compared to the prior-year period. Gross profit margin was 25.7% of net sales, a 740-basis point expansion compared to 18.3% in the fourth quarter fiscal 2024. Gross margin expansion primarily reflects the absence of the $34.5 million product liability reserve recorded in the fourth quarter fiscal 2024. Adjusted gross profit increased 14.7% and margin expanded by 90-basis points year-over-year, reflecting a greater percentage of our total revenue generated through our company-owned retail sales centers.
Selling, general, and administrative expenses (“SG&A”) in the fourth quarter fiscal 2025 increased to $110.3 million from $90.6 million in the same period last year. SG&A during the quarter increased due to higher variable compensation from higher sales volumes as well as investments in new products, marketing, people and technology to support future growth. SG&A as a percentage of net sales was 18.6%, compared to 16.9% in the prior year period.
Net income increased by $33.6 million to $36.3 million for the fourth quarter fiscal 2025 compared to the prior-year period. The increase in net income was driven by higher sales and gross profit partially offset by higher SG&A in the quarter.
Adjusted EBITDA for the fourth quarter fiscal 2025 decreased by 1.1% to $52.6 million compared to the fourth quarter fiscal 2024. Adjusted EBITDA margin for the quarter was 8.9%, compared to 9.9% in the prior-year period.
As of March 29, 2025, Champion Homes had $610.3 million of cash and cash equivalents, an increase of $28.6 million in the current quarter. The Company repurchased and retired $20 million of its common stock during the fourth quarter under the previously announced repurchase program. On May 15, 2025, the Board of Directors refreshed the share repurchase authorization to provide for $100 million of potential future repurchases.
Full Year Fiscal 2025 Financial Highlights
For fiscal 2025, net sales were $2.5 billion which represents an increase of 22.7%, or $458.6 million, compared to fiscal 2024. The increase in net sales was primarily driven by the Regional Homes acquisition and higher organic U.S. homes sales compared to prior year. The U.S. housing segment also delivered higher ASPs as more homes were sold through captive retail compared to fiscal 2024.
Gross profit increased $178.2 million or 36.7% to $664.0 million in fiscal 2025, compared to $485.8 million in the prior year period. Gross margin expanded by 270-basis points to 26.7% of net sales for fiscal 2025, compared to fiscal 2024, reflecting the impact of increased home sales, increased sales through captive retail, and the impact of the $34.5 million water intrusion liability in fiscal 2024 that did not reoccur in fiscal 2025.
SG&A increased 37.5% to $427.0 million for fiscal 2025, compared to $310.6 million in the prior year period primarily due to the inclusion of Regional Homes for the entirety of fiscal 2025, higher variable compensation from higher sales volume and earnings as well as investments in people and technology to support future growth.
Net income for fiscal 2025 was $198.4 million compared to net income of $146.7 million for fiscal 2024, an increase of $51.7 million or 35.3% due to higher sales and gross profit, partially offset by higher SG&A spend.
Adjusted EBITDA for fiscal 2025 increased 16.2% to $285.1 million, compared to $245.3 million for fiscal 2024. Adjusted EBITDA margin contracted 60-basis points to 11.5% in fiscal 2025.
