Champion Homes announced financial results for its first quarter ended June 27.
First Quarter Fiscal 2027 Highlights
- Net sales increased 1.3% to $710.2 million compared to first quarter fiscal 2026
- Backlog of $421.8 million
- Gross profit margin of 25.2%
- Earnings per diluted share (EPS) of $0.89; adjusted EPS of $0.88
- EBITDA of $74.0 million; adjusted EBITDA of $73.6 million and adjusted EBITDA margin of 10.4%
“We began fiscal 2027 with encouraging demand trends and results in line with expectations,” said Tim Larson, president and chief executive officer of Champion Homes. “Our team continued to outperform the broader industry in a challenging environment. Champion’s differentiated platform, dedicated team and recently closed Homes Direct acquisition strengthen our ability to deliver affordable housing solutions, enhance our retail footprint and drive long-term growth.”
First Quarter Fiscal 2027 Results
Net sales for the first quarter fiscal 2027 increased 1.3% to $710.2 million compared to the prior-year period. The number of U.S. homes sold in the first quarter fiscal 2027 increased 1.8% to 7,089, driven primarily by an increase in sales from captive retail stores. The ASP per U.S. home sold increased 0.6% to $95,600 due to increased prices on new homes sold through our company-owned retail sales centers. The number of Canadian factory-built homes sold in the quarter was 185.
Gross profit was $179.3 million in the first quarter fiscal 2027. Adjusted gross profit was $179.0 million for an adjusted gross profit margin of 25.2%. Higher material costs were partially offset by modest sales growth and pricing benefits in company-owned retail.
Selling, general and administrative expenses (SG&A) in the first quarter fiscal 2027 increased to $119.0 million from $111.3 million in the same period last year, due to the inclusion of Iseman Homes and the company’s expanded retail footprint. On an adjusted basis, SG&A increased 8.6% to $116.8 million. Adjusted SG&A as a percentage of net sales was 16.4%.
Net income was $49.2 million for the first quarter fiscal 2027. Adjusted net income was $48.3 million. The decrease in net income compared to the prior year was primarily driven by inflationary increases in cost of sales and higher effective tax rate due to the elimination of Energy Star tax credits.
EBITDA was $74.0 million for the first quarter fiscal 2027 and adjusted EBITDA was $73.6 million. Adjusted EBITDA margin for the quarter was 10.4%.
As of June 27, Champion Homes had $784.7 million in cash and cash equivalents. The company repurchased and retired $50.0 million of its common stock during the first quarter under the previously announced repurchase program. In July 2026, the board of directors refreshed the share repurchase authorization to provide for $150 million of potential future repurchases.
