Champion Homes announced financial results for its third quarter ended Dec. 27, 2025.
Third Quarter Fiscal 2026 Highlights (compared to Third Quarter Fiscal 2025)
- Net sales increased 1.8% to $656.6 million
- U.S. homes sold decreased 2.6% to 6,270
- Backlog decreased 15.1% to $266.0 million from the sequential second quarter of fiscal 2026
- Average selling price (“ASP”) per U.S. home sold increased 4.6% to $99,300
- Gross profit margin decreased by 190 basis points to 26.2%
- Net income decreased by 11.7% to $54.3 million
- Earnings per diluted share (“EPS”) decreased 8.5% to $0.97
- Adjusted EBITDA decreased 10.2% to $74.8 million
- Adjusted EBITDA margin decreased by 150 basis points to 11.4%
- Net cash generated by operating activities of $100.0 million during the quarter
- Repurchased $50.0 million of shares under the share repurchase program
“Despite a challenging environment in the third quarter, we delivered strong operational execution, advanced our strategic priorities and achieved financial results in line with our expectations,” said Tim Larson, president and chief executive officer of Champion Homes. “We continue to evolve and elevate our catalog of differentiated products across a variety of price points and value propositions to serve the range of customer segments in the marketplace, while making progress on our digital and retail strategies. We also look forward to benefiting from Tawn Kelley’s insights and guidance as the new chair of our board of directors as we continue to focus on driving growth and performance. Champion Homes remains well-positioned for continued success as we look to capitalize on promising growth opportunities ahead.”
Third Quarter Fiscal 2026 Results
Net sales for the third quarter fiscal 2026 increased 1.8% to $656.6 million compared to the prior-year period. The number of U.S. homes sold in the third quarter fiscal 2026 decreased 2.6% to 6,270, due to a decrease in sales to the community REIT channel as well as a function of the prior-year period having an outsized benefit in homes sold as a result of weather that shifted sales from the fiscal second quarter 2025 to the fiscal third quarter 2025. The ASP per U.S. home sold increased 4.6% to $99,300 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 2.9% to 215 homes compared to 209 homes in the prior-year period.
Gross profit decreased by 4.9% to $172.2 million in the third quarter fiscal 2026 compared to the prior-year period. Gross profit margin was 26.2% of net sales, a 190-basis point reduction compared to 28.1% in the prior-year period. Gross margin compression is due to higher manufacturing materials costs and less absorption of fixed costs due to lower sales volumes, partially offset by higher ASPs on new homes sold through company-owned retail sales centers.
Selling, general, and administrative expenses (“SG&A”) in the third quarter fiscal 2026 increased to $109.7 million from $108.2 million in the same period last year, primarily due to the inclusion of the Iseman Homes acquisition in May 2025. SG&A as a percentage of net sales was 16.7%, relatively flat compared to the prior year period.
Net income decreased by 11.7% to $54.3 million for the third quarter fiscal 2026 compared to the prior-year period. The decrease in net income was primarily driven by lower gross profit.
Adjusted EBITDA for the third quarter fiscal 2026 decreased 10.2% to $74.8 million compared to the prior-year period. Adjusted EBITDA margin for the quarter decreased by 150 basis points to 11.4%.
As of Dec. 27, 2025, Champion Homes had $659.8 million in cash and cash equivalents, an increase of $41.0 million in the current quarter. The company repurchased and retired $50.0 million of its common stock under the previously announced repurchase program. On Jan. 29, the company’s board of directors refreshed the share repurchase authorization to provide for $150 million of potential future repurchases.
