Champion Homes Announces Second Quarter Fiscal 2027 Results

First-half operating cash flow fell to $115.438 million from $151.178 million despite higher sales.

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TROY, Mich.--(BUSINESS WIRE)-- Champion Homes, Inc. (NYSE: SKY) (“Champion Homes” or the “Company”) today announced financial results for its second quarter ended September 26, 2026 (“fiscal 2027”).

Second Quarter Fiscal 2027 Highlights

• Net sales increased 6.2% to $727.0 million compared to second quarter fiscal 2026
• Gross profit margin of 25.5%
• Earnings per diluted share (“EPS”) of $0.97; adjusted EPS of $0.95
• EBITDA of $77.6 million; adjusted EBITDA of $76.6 million and adjusted EBITDA margin of 10.5%
• Backlog increased to approximately $500 million

“We delivered strong results in our second quarter that were in line with our expectations," said Tim Larson, President and Chief Executive Officer of Champion Homes. "Our team’s focused execution against our strategic priorities enabled us to outperform the housing market in the quarter and build meaningful order momentum. From a product and regulatory perspective, our team flawlessly executed and delivered our two-story home, the New Horizon, to the National Mall for Homes on the Hill in September. This innovative home, which was built to the HUD Code, features a removed second-floor chassis and is designed for vertical construction in narrow urban infill lots offering a unique solution for attainable housing. In addition to delivering new and innovative products, we continue to drive long-term growth across our business, including in our retail channel through the recently announced planned acquisition of Timberline Homes.”

Second Quarter Fiscal 2027 Results

Net sales for the second quarter fiscal 2027 increased 6.2% to $727.0 million compared to the prior-year period. The number of U.S. homes sold in the second quarter fiscal 2027 increased 2.3% to 6,724, driven primarily by higher production rates and an increase in sales from captive retail stores. The ASP per U.S. home sold increased 4.1% to $102,700 due to channel and product mix, as well as improved price realization. The number of Canadian factory-built homes sold in the quarter was 198, compared to 196 in the prior year period.

Gross profit was $185.6 million in the second quarter fiscal 2027. Adjusted gross profit was $185.3 million for an adjusted gross profit margin of 25.5%. Higher material costs were partially offset by sales growth and improved price realization.

Selling, general, and administrative expenses (“SG&A”) in the second quarter fiscal 2027 increased to $119.8 million from $113.1 million in the same period last year. On an adjusted basis, SG&A increased 5.4% to $118.5 million due to the company’s expanded retail footprint. Adjusted SG&A as a percentage of net sales was 16.3%.

Net income was $52.7 million for the second quarter fiscal 2027. Adjusted net income was $51.9 million. The decrease in net income compared to the prior year was primarily driven by inflationary increases in cost of sales.

EBITDA was $77.6 million for the second quarter fiscal 2027 and adjusted EBITDA was $76.6 million. Adjusted EBITDA margin for the quarter was 10.5%.

As of September 26, 2026, Champion Homes had $702.8 million in cash and cash equivalents. The Company repurchased and retired $50.0 million of its common stock during the second quarter under the previously announced repurchase program. In October 2026, the Board of Directors refreshed the share repurchase authorization to provide for $150.0 million of potential future repurchases.

Conference Call and Webcast Information

Champion Homes will host a conference call tomorrow, Wednesday, November 4, 2026, at 8:00 A.M. Eastern Time to discuss the Company's financial results and an update on current operations.

Investors and interested other parties can listen to a webcast of the live conference call here, and also by visiting the Investor Relations section of Champion Homes’ website at ir.championhomes.com. The online replay will be available on the same website immediately following the call.

The conference call can also be accessed by dialing (800) 225-9448 (domestic) or (203) 518-9708 (international) and using the Conference ID: CHAMPION when joining. A telephonic replay will be available approximately three hours after the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the replay is 11162595. The telephonic replay will be available until 11:59 P.M. Eastern Time on November 18, 2026.

About Champion Homes, Inc.

Champion Homes, Inc. (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 9,200 people. With more than 70 years of homebuilding experience and 46 manufacturing facilities throughout the United States and western Canada, Champion Homes is well positioned with an innovative portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors.

In addition to its core home building business, Champion Homes provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 95 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States.

Manufactured and Modular Homes
www.championhomes.com
www.skylinehomes.com
www.genesishomes.com

Park Model RVs
www.championparkmodelscabins.com

Star Fleet Trucking
www.starfleettrucking.com

Presentation of Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) throughout this press release, Champion Homes has provided Non-GAAP financial measures, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted SG&A, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted EPS, (collectively the “Non-GAAP Financial Measures”) which present operating results on a basis adjusted for certain items. Champion Homes uses these Non-GAAP Financial Measures for business planning purposes and in measuring its performance relative to that of its competitors. Champion Homes believes that these Non-GAAP Financial Measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that Champion Homes believes are not representative of its core business. These Non-GAAP Financial Measures are not intended to replace, and should not be considered superior to, the presentation of Champion Homes’ financial results in accordance with U.S. GAAP.

Champion Homes defines Adjusted Gross Profit as gross profit or loss plus expenses or minus income for charges related to the remediation of the water intrusion product liability. Adjusted Gross Profit Margin is calculated as Adjusted Gross Profit as a percentage of net sales. Champion Homes defines Adjusted SG&A as selling, general and administrative expenses plus income or minus expenses for other non-operating income and costs, including but not limited to those costs for the acquisition and integration or disposition of businesses, including the change in fair value of contingent consideration, and idle facilities. Champion Homes defines Adjusted EBITDA as net income or loss attributable to Champion Homes, Inc. plus expenses or minus income, (a) the provision for income taxes, (b) interest income or expense, net, (c) depreciation and amortization, (d) gain or loss from discontinued operations, (e) restructuring charges and impairment of assets, (f) equity in net earnings or losses of ECN Capital Corp., (g) charges related to the remediation of the water intrusion product liability claims; and (h) other non-operating income and costs, including but not limited to those costs for the acquisition and integration or disposition of businesses or investments, including the change in fair value of contingent consideration, and idle facilities. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net sales reported in the income statements.

Champion Homes defines Adjusted Net Income as net income or loss attributable to Champion Homes, Inc. plus expenses or minus income (net of tax where applicable), (a) gain or loss from discontinued operations, (b) restructuring charges and impairment of assets, (c) equity in net earnings or losses of ECN Capital Corp., (d) charges related to the remediation of estimated water intrusion product liability, and (e) other non-operating income or expense including, but not limited to those costs for the acquisition and integration or disposition of businesses or investments, including the change in fair value of contingent consideration, and idle facilities. Champion Homes defines Adjusted EPS as Adjusted Net Income divided by shares outstanding.

Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted SG&A, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted EPS are not measures of earnings calculated in accordance with U.S. GAAP, and should not be considered an alternative to, or more meaningful than, net income or loss, net sales, operating income or earnings per share prepared on a U.S. GAAP basis. These Non-GAAP Financial Measures do not purport to represent cash flow provided by, or used in, operating activities as defined by U.S. GAAP. Champion Homes believes that similar Non-GAAP Financial Measures are commonly used by investors to evaluate its performance and that of its competitors. However, Champion Homes use of Non-GAAP Financial Measures may vary from that of others in its industry. The Non-GAAP Financial Measures are reconciled from the respective measure under U.S. GAAP in the tables below.

Forward-Looking Statements

Statements in this press release, including certain statements regarding Champion Homes’ strategic initiatives, and future market demand are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of words such as "believe," "expect," "future," "anticipate," "intend," "plan," "foresee," "may," "could," "should," "will," "potential," "continue," or other similar words or phrases. Similarly, statements that describe objectives, plans, or goals also are forward-looking statements. Such forward-looking statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Champion Homes. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, implied, or projected by such forward-looking statements. Risks and uncertainties include regional, national and international economic, financial, public health and labor conditions, and the following: supply-related issues, including prices and availability of materials; changes in U.S. trade policies, including tariffs or other trade protection measures; labor-related issues; inflationary pressures in the North American economy; the cyclicality and seasonality of the housing industry and its sensitivity to changes in general economic or other business conditions; demand fluctuations in the housing industry, including as a result of actual or anticipated increases in homeowner borrowing rates; the possible unavailability of additional capital when needed; competition and competitive pressures; changes in consumer preferences for our products or our failure to gauge those preferences; quality problems, including the quality of parts sourced from suppliers and related liability and reputational issues; data security breaches, cybersecurity attacks, and other information technology disruptions; the potential disruption of operations caused by the conversion to new information systems; the extensive regulation affecting the production and sale of factory-built housing and the effects of possible changes in laws with which we must comply; the potential impact of natural disasters on sales and raw material costs; the risks associated with mergers and acquisitions, including integration of operations and information systems; periodic inventory adjustments by, and changes to relationships with, independent retailers; changes in interest and foreign exchange rates; insurance coverage and cost issues; the possibility that all or part of our intangible assets, including goodwill, might become impaired; the possibility that our risk management practices may leave us exposed to unidentified or unanticipated risks; the potential disruption to our business caused by public health issues, such as an epidemic or pandemic, and resulting government actions; and other risks set forth in the “Risk Factors” section, the “Legal Proceedings” section, the “Management's Discussion and Analysis of Financial Condition and Results of Operations” section, and other sections, as applicable, in our Annual Reports on Form 10-K, including our Annual Report on Form 10-K for the fiscal year ended March 28, 2026 previously filed with the Securities and Exchange Commission (“SEC”), as well as in our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, filed with or furnished to the SEC.

If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, then the developments and future events concerning Champion Homes set forth in this press release may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on these statements, which speak only as of the date of this release. We anticipate that subsequent events and developments will cause our expectations and beliefs to change. Champion Homes assumes no obligation to update such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, unless obligated to do so under the federal securities laws.

CHAMPION HOMES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited, dollars in thousands)
		September 26, 2026				March 28, 2026
ASSETS
Current assets:
Cash and cash equivalents		$	702,782			$	638,259
Trade accounts receivable, net			99,729				88,810
Inventories, net			395,715				358,313
Other current assets			53,961				42,836
Total current assets			1,252,187				1,128,218
Long-term assets:
Property, plant, and equipment, net			320,671				314,197
Goodwill			394,114				365,151
Amortizable intangible assets, net			54,290				55,815
Deferred tax assets			20,267				23,456
Other noncurrent assets			94,609				244,709
Total assets		$	2,136,138			$	2,131,546
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Floorplan payable		$	96,304			$	94,649
Accounts payable			82,221				70,546
Other current liabilities			277,437				290,147
Total current liabilities			455,962				455,342
Long-term liabilities:
Long-term debt			12,430				14,440
Deferred tax liabilities			8,562				8,445
Other liabilities			80,762				80,382
Total long-term liabilities			101,754				103,267
Stockholders' Equity:
Common stock			1,490				1,521
Additional paid-in capital			622,792				611,934
Retained earnings			973,281				975,947
Accumulated other comprehensive loss			(19,141	)			(16,465	)
Total stockholders’ equity			1,578,422				1,572,937
Total liabilities and stockholders’ equity		$	2,136,138			$	2,131,546

CHAMPION HOMES, INC. CONSOLIDATED INCOME STATEMENTS (Unaudited, dollars in thousands, except per share amounts)
		Three months ended								Six months ended
		September 26, 2026				September 27, 2025				September 26, 2026				September 27, 2025
Net sales		$	727,032			$	684,429			$	1,437,266			$	1,385,747
Cost of sales			541,430				496,497				1,072,400				1,007,985
Gross profit			185,602				187,932				364,866				377,762
Selling, general, and administrative expenses			119,819				113,117				238,810				224,426
Operating income			65,783				74,815				126,056				153,336
Interest (income), net			(5,332	)			(4,034	)			(9,871	)			(8,570	)
Other (income) expense			(2,010	)			79				(5,290	)			(1,141	)
Income before income taxes			73,125				78,770				141,217				163,047
Income tax expense			17,731				18,551				34,740				36,250
Net income before equity in net loss of affiliates			55,394				60,219				106,477				126,797
Equity in net loss of affiliates			290				125				859				710
Net income			55,104				60,094				105,618				126,087
Net income attributable to non-controlling interest			2,443				1,895				3,800				3,201
Net income attributable to Champion Homes, Inc		$	52,661			$	58,199			$	101,818			$	122,886
Net income per share:
Basic		$	0.97			$	1.03			$	1.87			$	2.17
Diluted		$	0.97			$	1.03			$	1.86			$	2.15

CHAMPION HOMES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, dollars in thousand)
		Six months ended
		September 26, 2026				September 27, 2025
Cash flows from operating activities
Net income		$	105,618			$	126,087
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			24,857				23,560
Amortization of deferred financing fees			198				231
Equity-based compensation			10,432				10,483
(Gain) on extinguishments of debt			(2,031	)			—
Deferred taxes			3,715				18,332
Loss (gain) on disposal of property, plant, and equipment			380				(2,621	)
Foreign currency transaction loss (gain)			1,012				(399	)
Equity in net loss of affiliates			859				710
Dividends from equity method investment			238				480
(Gain) on sale of investment in ECN			(2,514	)			—
Change in assets and liabilities:
Accounts receivable			(11,008	)			(9,489	)
Floor plan receivables			9,990				(2,930	)
Inventories			(8,919	)			25,718
Other assets			(11,235	)			(11,434	)
Accounts payable			12,507				(1,750	)
Accrued expenses and other liabilities			(18,661	)			(25,800	)
Net cash provided by operating activities			115,438				151,178
Cash flows from investing activities
Additions to property, plant, and equipment			(21,945	)			(17,817	)
Cash paid for equity method investment			(373	)			(447	)
Proceeds from sale of investment in ECN			136,998				—
Acquisitions, net of cash acquired			(53,888	)			(24,636	)
Proceeds from disposal of property, plant, and equipment			830				5,105
Net cash provided by (used in) investing activities			61,622				(37,795	)
Cash flows from financing activities
Changes in floor plan financing, net			1,654				(7,310	)
Payments on long term debt			(3,997	)			(769	)
Distributions to noncontrolling interest			(3,800	)			—
Payments for repurchase of common stock			(100,000	)			(100,000	)
Stock option exercises			441				3,550
Tax payments for equity-based compensation			(3,541	)			(2,344	)
Net cash (used in) financing activities			(109,243	)			(107,887	)
Effect of exchange rate changes on cash and cash equivalents			(3,294	)			2,906
Net increase in cash and cash equivalents			64,523				8,402
Cash and cash equivalents at beginning of period			638,259				610,338
Cash and cash equivalents at end of period		$	702,782			$	618,740

CHAMPION HOMES, INC. RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited, dollars in thousand)
		Three months ended								Six months ended
		September 26, 2026				September 27, 2025				September 26, 2026				September 27, 2025
Net income attributable to Champion Homes, Inc.		$	52,661			$	58,199			$	101,818			$	122,886
Income tax expense			17,731				18,551				34,740				36,250
Interest (income), net			(5,332	)			(4,034	)			(9,871	)			(8,570	)
Depreciation and amortization			12,523				11,658				24,857				23,560
EBITDA			77,583				84,374				151,544				174,126
Product liability - water intrusion, net			(313	)			—				(626	)			—
Transaction costs			618				—				1,207				714
Other			713				—				2,311				—
Gain on extinguishments of debt			(2,010	)			—				(2,010	)
Equity in net (income) loss of ECN			—				48				263				507
Net gain on sale of ECN			—				—				(2,514	)			—
Plant closure costs			—				2,580				—				5,832
Gain on sale of idle facility			—				(3,650	)			—				(3,650	)
Adjusted EBITDA		$	76,591			$	83,352			$	150,175			$	177,529

CHAMPION HOMES, INC. RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE (Unaudited, dollars and shares in thousands, except per share amounts) (Certain amounts shown net of tax, as applicable)
		Three months ended								Six months ended
		September 26, 2026				September 27, 2025				September 26, 2026				September 27, 2025
Net income attributable to Champion Homes, Inc.		$	52,661			$	58,199			$	101,818			$	122,886
Adjustments:
Product liability - water intrusion, net			(232	)			—				(464	)			—
Transaction costs			458				—				894				565
Other			528				—				1,712				—
Gain on extinguishments of debt			(1,489	)							(1,489	)
Equity in net (income) loss of ECN			—				48				263				507
Net gain on sale of ECN			—				—				(2,514	)			—
Plant closure costs			—				1,943				—				4,786
Gain on sale of idle facility			—				(2,749	)			—				(2,749	)
Adjusted net income attributable to Champion Homes, Inc.		$	51,926			$	57,441			$	100,220			$	125,995
Adjusted basic net income per share		$	0.96			$	1.02			$	1.84			$	2.22
Adjusted diluted net income per share		$	0.95			$	1.01			$	1.83			$	2.21
Average basic shares outstanding			54,164				56,352				54,530				56,729
Average diluted shares outstanding			54,485				56,671				54,825				57,059

CHAMPION HOMES, INC. RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT (Unaudited, dollars in thousand)
		Three Months Ended								Six months ended
		September 26, 2026				September 27, 2025				September 26, 2026				September 27, 2025
Reconciliation of Adjusted Gross Profit:
Gross Profit		$	185,602			$	187,932			$	364,866			$	377,762
Product liability - water intrusion, net			(313	)			—				(616	)			—
Adjusted Gross Profit		$	185,289			$	187,932			$	364,250			$	377,762

CHAMPION HOMES, INC. RECONCILIATION OF SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES TO ADJUSTED SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES (Unaudited, dollars in thousand)
		Three Months Ended								Six months ended
		September 26, 2026				September 27, 2025				September 26, 2026				September 27, 2025
Reconciliation of Adjusted SG&A:
SG&A		$	119,819			$	111,309			$	238,810			$	224,426
Transaction costs			(618	)			—			$	(1,207	)		$	(714	)
Other			(713	)			—				(2,311	)			—
Plant closure costs			—				(2,580	)			—				(5,832	)
Gain on sale of idle facility			—				3,650				—				3,650
Adjusted SG&A		$	118,488			$	112,379			$	235,292			$	221,530

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261103944615/en/

Investor contact information:
Name: Ellen Kaleniecki, Head of Investor Relations
Email: investorrelations@championhomes.com
Phone: (248) 614-8211

Source: Champion Homes, Inc.

Key Terms

diluted eps financial

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

hud code regulatory

A HUD Code is a set of federal construction and safety standards for manufactured homes enforced by the U.S. Department of Housing and Urban Development; it governs design, materials, fire safety, and energy efficiency. For investors, HUD Code certification signals that a home product meets regulatory requirements and is more likely to be sellable and insurable, similar to how a vehicle’s safety rating affects buyer confidence and resale value.

non-gaap financial measures financial

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.