Lower Q1 sales trim profit at Nobility Homes (OTCQX: NOBH)

Rhea-AI Filing Summary

Nobility Homes reported softer first-quarter 2026 results as higher interest rates and economic uncertainty weighed on demand for higher-priced manufactured homes. Net sales declined to $10.5 million from $12.2 million a year earlier, and net income decreased to $1.6 million from $2.0 million, with earnings per diluted share slipping to $0.50 from $0.60.

Gross margin narrowed to 30% from 32% as the mix shifted toward lower-margin wholesale sales to independent dealers and away from higher-margin company-owned retail centers. Operating expenses fell in absolute terms and as a share of sales, but not enough to offset the profit impact of lower volumes and mix.

The balance sheet remained strong, with total assets of about $65.9 million and stockholders’ equity of roughly $59.4 million, and no debt. Cash and cash equivalents were $11.1 million, supplemented by certificates of deposit and short-term investments. During January 2026, the company repurchased 100,000 shares from its President at $29.70 per share, and in March the board declared a one-time cash dividend of $1.50 per share for fiscal 2025. Management expects supply chain issues, material inflation and interest-rate pressures to persist through fiscal 2026.

Positive

• None.

Negative

• Revenue and earnings decline with persistent headwinds: Q1 2026 net sales fell from $12.24 million to $10.50 million and net income from $1.98 million to $1.63 million, as mix shifted to lower-margin wholesale and management expects these pressures to continue through fiscal 2026.

Insights

Equity analyst

Revenue and earnings fell double digits as mix shifted to lower-margin wholesale, while the company maintained a debt-free, cash-rich balance sheet.

Nobility Homes saw first-quarter 2026 net sales drop from $12.24M to $10.50M, driven mainly by fewer higher-priced retail homes sold through company-owned centers. Retail unit sales fell to 43 from 67, partially offset by higher wholesale volume at lower margins.

Net income declined from $1.98M to $1.63M, and gross margin compressed from 32% to 30%, reflecting the sales mix shift and ongoing cost inflation. Management cites higher interest rates, economic uncertainty, and continued supply-chain and labor challenges, and indicates these headwinds are expected to persist through fiscal 2026.

Despite weaker results, the company reported total assets of about $65.9M and stockholders’ equity of roughly $59.4M, with no debt and $11.1M in cash. It repurchased 100,000 shares at $29.70 and declared a one-time $1.50 per-share dividend for fiscal 2025, signaling confidence in its capital position even as operating trends soften.

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15 (d)

of the Securities Exchange Act of 1934

For the quarterly period ended January 31, 2026

Commission File number 000-06506

NOBILITY HOMES, INC.

(Exact name of registrant as specified in its charter)

Florida		59-1166102
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
3741 S.W. 7th Street Ocala, Florida		34474
(Address of principal executive offices)		(Zip Code)

(352) 732-5157

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

Title of Each Class		Trading Symbol(s)		Name of each/Exchange on Which Registered
Common Stock, $0.10 Par Value		NOBH		OTCQX

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒; No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒; No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer		☐		Accelerated filer		☐
Non-accelerated filer		☒		Smaller reporting company		☒
				Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐; No ☒.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

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Title of Class		Shares Outstanding on March 17, 2026
Common Stock		3,153,665

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NOBILITY HOMES, INC.

INDEX

				Page Number
PART I.		Financial Information
Item 1.		Financial Statements (Unaudited)
		Condensed Consolidated Balance Sheets as of January 31, 2026 (Unaudited) and November 1, 2025			4
		Condensed Consolidated Statements of Income for the three months ended January 31, 2026 (Unaudited) and February 1, 2025 (Unaudited)			5
		Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended January 31, 2026 (Unaudited) and February 1, 2025 (Unaudited)			6
		Condensed Consolidated Statements of Cash Flows for the three months ended January 31, 2026 (Unaudited) and February 1, 2025 (Unaudited)			7
		Notes to Condensed Consolidated Financial Statements (Unaudited)			8
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations			11
Item 4.		Controls and Procedures			13
PART II.		Other Information			14
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds			14
Item 5.		Other Information			14
Item 6.		Exhibits			14
Signatures					15

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NOBILITY HOMES, INC.

Condensed Consolidated Balance Sheets

		January 31, 2026				November 1, 2025
		(Unaudited)
Assets
Current assets:
Cash and cash equivalents		$	11,083,302			$	13,230,504
Certificates of deposit			14,184,546				13,109,325
Short-term investments at fair value			622,994				583,128
Accounts receivable - trade			3,950,239				4,602,671
Mortgage notes receivable			5,287				3,645
Inventories			20,267,781				19,733,235
Prepaid expenses and other current assets			1,925,924				2,000,403
Total current assets			52,040,073				53,262,911
Property, plant and equipment, net			8,163,330				8,230,055
Mortgage notes receivable, less current portion			141,885				143,373
Other investments			579,943				553,752
Property held for resale			26,590				26,590
Cash surrender value of life insurance			4,838,430				4,772,430
Other assets			156,287				156,287
Total assets		$	65,946,538			$	67,145,398
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	686,746			$	586,001
Accrued compensation			411,291				765,853
Accrued expenses and other current liabilities			1,403,404				1,590,827
Income taxes payable			526,191				658,461
Customer deposits			3,451,530				2,795,344
Total current liabilities			6,479,162				6,396,486
Deferred income taxes			34,069				34,069
Total liabilities			6,513,231				6,430,555
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.10 par value, 500,000 shares authorized; none issued    and outstanding			—				—
Common stock, $0.10 par value, 10,000,000 shares authorized; 5,364,907    shares issued; 3,153,665 and 3,253,665 shares outstanding			536,491				536,491
Additional paid in capital			11,376,733				11,316,595
Retained earnings			80,666,245				79,037,919
Less treasury stock at cost, 2,211,242 and 2,111,242 shares, respectively			(33,146,162	)			(30,176,162	)
Total stockholders’ equity			59,433,307				60,714,843
Total liabilities and stockholders’ equity		$	65,946,538			$	67,145,398

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NOBILITY HOMES, INC.

Condensed Consolidated Statements of Income

(Unaudited)

	Three Months Ended
	January 31, 2026				February 1, 2025
Net sales	$	10,502,846			$	12,241,742
Cost of sales		(7,305,740	)			(8,270,957	)
Gross profit		3,197,106				3,970,785
Selling, general and administrative expenses		(1,369,656	)			(1,676,650	)
Operating income		1,827,450				2,294,135
Other income (expense):
Interest income		255,849				285,278
Undistributed earnings in joint venture - Majestic 21		26,191				25,805
Proceeds received under escrow arrangement		21,446				38,152
Increase (decrease) in fair market value of equity investment		39,866				(2,916	)
Gain on disposal of property, plant and equipment		1,000				—
Miscellaneous		9,330				8,759
Total other income		353,682				355,078
Income before provision for income taxes		2,181,132				2,649,213
Income tax expense		(552,806	)			(668,791	)
Net income	$	1,628,326			$	1,980,422
Weighted average number of shares outstanding:
Basic		3,250,368				3,268,829
Diluted		3,256,535				3,277,204
Net income per share:
Basic	$	0.50			$	0.61
Diluted	$	0.50			$	0.60

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NOBILITY HOMES, INC.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the three months ended January 31, 2026 and February 1, 2025

(Unaudited)

		Common Stock Shares				Common Stock				Additional Paid-in-Capital				Retained Earnings				Treasury Stock				Total
Balance at November 1, 2025			3,253,665			$	536,491			$	11,316,595			$	79,037,919			$	(30,176,162	)		$	60,714,843
Purchase of treasury stock			(100,000	)			-				-				-				(2,970,000	)			(2,970,000	)
Stock-based compensation			—				—				60,138				—				—				60,138
Net income			—				—				—				1,628,326				—				1,628,326
Balance at January 31, 2026			3,153,665			$	536,491			$	11,376,733			$	80,666,245			$	(33,146,162	)		$	59,433,307

		Common Stock Shares				Common Stock				Additional Paid-in-Capital				Retained Earnings				Treasury Stock				Total
Balance at November 2, 2024			3,268,829			$	536,491			$	11,140,687			$	74,677,783			$	(29,758,438	)		$	56,596,523
Stock-based compensation			—				—				40,254				—				—				40,254
Net income			—				—				—				1,980,422				—				1,980,422
Balance at February 1, 2025			3,268,829			$	536,491			$	11,180,941			$	76,658,205			$	(29,758,438	)		$	58,617,199

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NOBILITY HOMES, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

		Three Months Ended
		January 31, 2026				February 1, 2025
Cash flows from operating activities:
Net income		$	1,628,326			$	1,980,422
Adjustments to reconcile net income to net cash provided by operating    activities:
Depreciation			67,160				42,576
Undistributed earnings in joint venture - Majestic 21			(26,191	)			(25,805	)
Gain on disposal of property, plant and equipment			(1,000	)			—
(Increase) decrease in fair market value of equity investment			(39,866	)			2,916
Stock-based compensation			60,138				40,254
Decrease (increase) in:
Accounts receivable - trade			652,432				1,013,502
Inventories			(534,546	)			765,079
Prepaid expenses and other current assets			74,479				37,509
Interest receivable			(133,640	)			(146,066	)
(Decrease) increase in:
Accounts payable			100,745				14,974
Accrued compensation			(354,562	)			(176,179	)
Accrued expenses and other current liabilities			(187,423	)			(322,625	)
Income taxes payable			(132,270	)			(76,210	)
Customer deposits			656,186				(732,481	)
Net cash provided by operating activities			1,829,968				2,417,866
Cash flows from investing activities:
Purchase of property, plant and equipment			(435	)			(117,198	)
Purchase of certificates of deposit			(3,500,000	)			(1,500,000	)
Proceeds from certificates of deposit			2,500,000				1,920,000
Proceeds disposal of property, plant and equipment			1,000				—
Collections on interest receivable			58,419				99,644
Collections on mortgage notes receivable			(154	)			476
Increase in cash surrender value of life insurance			(66,000	)			(51,000	)
Net cash (used in) provided by investing activities			(1,007,170	)			351,922
Cash flows from financing activities:
Purchase of treasury stock			(2,970,000	)			—
Net cash (used in) financing activities			(2,970,000	)			—
(Decrease) Increase in cash and cash equivalents			(2,147,202	)			2,769,788
Cash and cash equivalents at beginning of period			13,230,504				13,521,296
Cash and cash equivalents at end of period		$	11,083,302			$	16,291,084
Supplemental disclosure of cash flows information:
Income taxes paid		$	685,000			$	745,000
Interest paid		$	-			$	-

The accompanying notes are an integral part of these condensed consolidated financial statements.

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NOBILITY HOMES, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 Basis of Presentation and Accounting Policies

The accompanying unaudited condensed consolidated financial statements for the three months ended January 31, 2026 and February 1, 2025 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission for Form 10-Q.

Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The unaudited financial information included in this report includes all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods. The results of operations for the three months ended January 31, 2026, are not necessarily indicative of the results of the full fiscal year.

The condensed consolidated financial statements included in this report should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended November 1, 2025.

Note 2 Recently Issued Accounting Standards

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid to the U.S. Government. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026) and will be adopted for the Company's year-end reporting. The Company is currently assessing the effect this update may have on its consolidated financial statement disclosures.

On November 4, 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures. This ASU provides guidance to public companies regarding footnote disclosures of natural expense components (such as employee compensation, depreciation, and amortization) included within each relevant income statement expense caption. The guidance is effective for public companies for fiscal years beginning after December 15, 2026. We are assessing the effect of this update on our consolidated financial statement disclosures.

Note 3 Inventories

New home inventory is carried at a lower of cost or net realizable value. Capitalized manufacturing costs on retail manufactured homes built by the Company are valued at manufacturing cost, including materials, labor, and manufacturing overhead, or net purchase price if acquired from unaffiliated third parties. The cost of finished home inventories determined on the specific identification method is removed from inventories and recorded as a component of cost of sales at the time revenue is recognized. Under the specific identification method, if finished home inventory can be sold for a profit there is no basis to write down the inventory below the lower of cost or net realizable value.

Other pre-owned homes are acquired (Repossessions Inventory) as a convenience to the Company’s joint venture partner, 21st Mortgage Corporation. This inventory has been repossessed by 21st Mortgage Corporation or through mortgage foreclosure. The Company acquired this inventory at the amount of the uncollected balance of the financing at the time of the foreclosure/repossessions by 21st Mortgage Corporation. The Company records this inventory at a cost determined by the specific identification method. All of the refurbishment costs are paid by 21st Mortgage Corporation. This arrangement assists 21st Mortgage Corporation with liquidation of their repossessed inventory. The timing of these repurchases by the Company is unpredictable as it is based on the repossessions 21st Mortgage Corporation incurs in the portfolio. When the home is sold, the Company retains the cost of the home, an interest factor on the cost of the home and a sales commission, from the sales proceeds. Any additional proceeds are paid to 21st Mortgage. Any shortfall from the proceeds to cover these amounts is paid by 21st Mortgage to the Company. As the Company has no risk of loss on the sale, there is no valuation allowance necessary for repossessions inventory.

Inventory held at consignment locations by affiliated entities is included in the Company’s inventory on the Company’s consolidated balance sheets. The Company had no consigned inventory as of January 31, 2026 and November 1, 2025.

Pre-owned homes are also taken as trade-ins on new home sales (Trade-in Inventory). This inventory is recorded at estimated actual wholesale value, which is generally lower than market value, determined on the specific identification method, plus refurbishment costs incurred to date to bring the inventory to a more saleable state. The Trade-in Inventory amount is reduced where necessary on a unit specific basis by a valuation reserve, which management believes results in inventory being valued at net realizable value.

Other inventory costs are determined on a first-in, first-out basis.

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NOBILITY HOMES, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

A breakdown of the elements of inventory at January 31, 2026 and November 1, 2025 is as follows:

		January 31,				November 1,
		2025				2025
		(Unaudited)
Raw materials		$	1,286,075			$	1,246,972
Work-in-process			159,978				169,467
Finished homes - Nobility manufactured			12,046,007				11,836,197
Finished homes - Other manufactured			5,026,993				4,768,852
Pre-owned homes			1,527,915				1,471,432
Model home furniture			220,813				240,315
Inventories		$	20,267,781			$	19,733,235

Note 4 Short-term Investments

The following is a summary of short-term investments at January 31, 2026 and November 1, 2025.

		January 31, 2026
		(Unaudited)
		Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value
Equity securities in a public company		$	167,930			$	455,064			$	—			$	622,994

		November 1, 2025
		Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value
Equity securities in a public company		$	167,930			$	415,198			$	—			$	583,128

The fair values were estimated based on quoted market prices in active markets at each respective period end.

Note 5 Fair Value of Financial Instruments

The carrying amount of cash and cash equivalents, accounts and notes receivable, accounts payable, customer deposits and accrued expenses approximate fair value because of the short maturity of those instruments.

The Company accounts for the fair value of financial instruments in accordance with FASB Accounting Standards Codification (ASC) No. 820 “Fair Value Measurements” (ASC 820).

ASC 820 defines fair value as the price that would be received upon the sale of an asset or paid to transfer a liability (i.e. exit price) in an orderly transaction between market participants at the measurement date. ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the assumptions (i.e. inputs) used in the valuation. Financial assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The ASC 820 fair value hierarchy is defined as follows:

•Level 1 - Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

•Level 2 - Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly.

•Level 3 - Valuations are based on prices or valuation techniques that require inputs that are both observable and significant to the overall fair value measurement. Inputs reflect management’s best estimate of what market participants would use in valuing the asset or liability at the measurement date.

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NOBILITY HOMES, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

The following tables represent the Company’s financial assets and liabilities which are carried at fair value at January 31, 2026 and November 1, 2025.

		January 31, 2026
		(Unaudited)
		Level 1				Level 2				Level 3
Equity securities in a public company		$	622,994			$	—			$	—

		November 1, 2025
		Level 1				Level 2				Level 3
Equity securities in a public company		$	583,128			$	—			$	—

Note 6 Net Income per Share

These condensed consolidated financial statements include “basic” and “diluted” net income per share information for all periods presented. The basic net income per share is calculated by dividing net income by the weighted average number of shares outstanding (see the condensed consolidated statement of income for weighted average shares outstanding for each period). The diluted net income per share is calculated by dividing net income by the weighted-average number of shares outstanding, adjusted for dilutive common shares, which are the result of outstanding stock options. The Company reported net income of $1,628,326 for the first quarter of 2026 or $0.50 per share (basic and diluted), compared to $1,980,422 or $0.61 per share ($0.60 diluted) for the first quarter of 2025. For the three-month periods ended January 31, 2026 and February 1, 2025, the Company had 107,900 and 45,400 unexercised stock options outstanding, respectively, that were anti-dilutive.

Note 7 Revenues by Products and Services

The Company operates in one business segment, which is manufactured housing and ancillary services.

Revenues by net sales from manufactured housing homes and insurance agent commissions for the three months ended January 31, 2026 and February 1, 2025 are as follows.

		Three Months Ended
		(Unaudited)
		January 31,				February 1,
		2026				2025
Manufactured housing
Homes sold through Company owned sales    centers		$	6,990,417			$	10,648,928
Homes sold to independent dealers and    through manufactured home parks, net			3,433,532				1,534,440
			10,423,949				12,183,368
Insurance agent commissions			78,897				58,374
Total net sales		$	10,502,846			$	12,241,742

Note 8 Related Party Transaction

In January 2026, the Company repurchased 100,000 shares of common stock from our President at $29.70 per share.

Note 9 Subsequent Events

On March 6, 2026, Board of Directors amended the termination date of the Nobility Homes, Inc. 2011 Stock Incentive Plan from June 1, 2026 until June 1, 2031.

The Board of Directors on March 6, 2026 declared a one-time cash dividend of $1.50 per common share for the fiscal year 2025. The cash dividend is payable on April 13, 2026, to stockholders of record as of March 30, 2026.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Results of Operations

Total net sales in the first quarter of 2026 were $10,502,846 compared to $12,241,742 in the first quarter of 2025. Net income was $1,628,326 in the first quarter of 2026, compared to a net income of $1,980,422 in the first quarter of 2025. Total net sales decreased during the first three months of 2026 as compared to same period in 2025 due to a decrease in the number of new retail homes sold in our Company owned retail sales centers (43 homes versus 67 homes) partially offset by an increase in the number of homes sold to independent dealers (57 homes versus 31 homes) which have lower margins. In addition, we are building and selling lower-priced homes to offset costs for customers due to the higher interest rates.

We believe that potential customers have delayed or deferred purchasing decisions, or are generally opting to purchase lower cost homes, when considering the higher interest rate environment and the uncertainty of the economy, which continue to negatively impact sales. There also remain delays in the receipt of certain key production materials from suppliers, as well as back orders, price increases, tariffs and labor shortages which continue to cause delays in the completion of the homes at our manufacturing facility. We also continue to experience inflation in several building products resulting in increases in our material and labor costs. We expect these challenges will continue throughout fiscal year 2026.

According to the Florida Manufactured Housing Association, shipments for the manufacturing housing industry in Florida for the period from November 2025 through January 2026 increased by approximately 2% from the same period last year.

The following table summarizes certain key sales statistics and percentage of gross profit for the three months ended January 31, 2026 and February 1, 2025.

		Three Months Ended
		(Unaudited)
		January 31,				February 1,
		2026				2025
New homes sold through Company owned sales centers			43				67
Homes sold to independent dealers			57				31
Total new factory built homes produced			96				87
Average new manufactured home price - retail		$	159,480			$	154,016
Average new manufactured home price - wholesale		$	68,173			$	69,095
As a percent of net sales:
Gross profit from the Company owned retail sales centers			23	%			22	%
Gross profit from the manufacturing facilities -including    intercompany sales			22	%			25	%

Maintaining our strong financial position is vital for future growth and success. Our many years of experience in the Florida market, combined with home buyers’ increased need for more affordable housing, should serve the Company well in the coming years. Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country.

On June 5, 2025, we celebrated our 58th anniversary in business specializing in the design and production of quality, affordable manufactured and modular homes. With multiple retail sales centers in Florida for over 35 years and an insurance agency subsidiary, we are the only vertically integrated manufactured home company headquartered in Florida.

Insurance agent commission revenues in the first quarter of 2026 were $78,897 compared to $58,374 in the first quarter of 2025. Revenues are generated by new and renewal policies being written which affect agent commission earned. The Company establishes appropriate reserves for policy cancellations based on numerous factors, including past transaction history with customers, historical experience and other information, which is periodically evaluated and adjusted as deemed necessary. In the opinion of management, no reserve was deemed necessary for policy cancellations at January 31, 2026 and November 1, 2025.

Gross profit as a percentage of net sales was 30% in the first quarter of 2026 compared to 32% in the first quarter of 2025. The gross profit in the first quarter of 2026 was $3,197,106 compared to $3,970,785 in the first quarter of 2025. The gross profit is dependent on the sales mix of wholesale and retail homes and number of pre-owned homes sold. The gross profit as a percentage of net sales decreased due to an increase in the number of homes sold to independent dealers and a decrease in the number of homes sold at our Company owned retail sales centers that generate higher margins.

Selling, general and administrative expenses as a percent of net sales was 13% in the first quarter of 2026 compared to 14% for the first quarter of 2025. Selling, general and administrative expenses in the first quarter of 2026 was $1,369,656 compared to $1,676,650 in the first quarter of 2025. The dollar decrease in selling, general and administrative expenses for the first three months of 2026 versus 2025 were due to decrease in the number of new home sold at our Company owned retail sales centers.

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We earned interest income of $255,849 for the first quarter of 2026 compared to $285,278 for the first quarter of 2025. The amount of interest income is primarily a function of change in the interest rates and the amount invested.

Our earnings from Majestic 21 in the first quarter of 2026 were $26,191 compared to $25,805, for the first quarter of 2025. The earnings from Majestic 21 represent the allocation of profit and losses which are owned 50% by 21st Mortgage Corporation and 50% by the Company. The earnings from the Majestic 21 loan portfolio vary quarter to quarter, but overall, the earnings will continue to decrease due to the amortization, maturity and payoff of the loans.

We received distributions from 21st Mortgage Corporation in the first quarter of 2026 of $21,446 compared to $38,152 in the first quarter of 2025. The distributions are from an escrow arrangement related to a Finance Revenue Sharing Agreement (FRSA) between 21st Mortgage Corporation and the Company. The distributions from the escrow arrangement, relating to certain loans financed by 21st Mortgage Corporation, are recorded as income by the Company when received. The earnings from the FRSA loan portfolio will vary quarter to quarter, but will continue to decrease due to the amortization and payoff of the loans.

The Company realized pre-tax income in the first quarter of 2026 of $2,181,132 as compared to $2,649,213 in the first quarter of 2025.

The Company recorded an income tax expense in the amount of $552,806 in the first quarter of 2026 as compared to $668,791 in first quarter 2025.

We reported net income of $1,628,326 for the first quarter of 2026 or $0.50 per share (basic and diluted), compared to $1,980,422 or $0.61 per share ($0.60 diluted), for the first quarter of 2025.

Liquidity and Capital Resources

Cash and cash equivalents were $11,083,302 at January 31, 2026 compared to $13,230,504 at November 1, 2025. Certificates of deposit were $14,184,546 at January 31, 2026 compared to $13,109,325 at November 1, 2025. Short-term investments were $622,994 at January 31, 2026 compared to $583,128 at November 1, 2025. Working capital was $45,560,911 at January 31, 2026 as compared to $46,866,425 at November 1, 2025. During January 2026, the Company repurchased 100,000 shares of common stock from our President at $29.70 per share ($2,970,000). A cash dividend was paid from our cash reserves in April 2025 in the amount of $1.25 per share ($4,086,247) and on March 6, 2026, we declared a one-time cash dividend of $1.50 per common share for the fiscal year 2025 payable on April 13, 2026, to shareholders of record as March 30, 2026. Prestige new home inventory was $17,073,000 at January 31, 2026 compared to $16,605,049 at November 1, 2025. We own the entire inventory for our Prestige retail sales centers, which includes new and pre-owned homes, and do not incur any third-party floor plan financing expenses.

The Company currently has no line of credit facility and no debt and does not believe that such a facility is currently necessary for its operations. The Company also has approximately $4.8million of cash surrender value of life insurance which it would be able to access as an additional source of liquidity though the Company has not currently viewed this to be necessary. As of January 31, 2026, the Company continued to report a strong balance sheet which included total assets of approximately $65.9 million which was funded primarily by stockholders’ equity of approximately $59.4 million.

Critical Accounting Policies and Estimates

In Item 7 of our Form 10-K, under the heading “Critical Accounting Policies and Estimates,” we have provided a discussion of the critical accounting policies and estimates that management believes affect its more significant judgments and estimates used in the preparation of our Consolidated Financial Statements. No significant changes have occurred since that time.

Forward-Looking Statements

Certain statements in this report are unaudited or forward-looking statements within the meaning of the federal securities laws. Although Nobility believes that the amounts and expectations reflected in such forward-looking statements are based on reasonable assumptions, there are risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, the potential adverse impact on our business caused by competitive pricing pressures at both the wholesale and retail levels, inflation, tariffs, increasing material costs (including forest based products) or availability of materials due to supply chain interruptions (such as current inflation with forest products and supply issues with vinyl siding and PVC piping), changes in market demand, increase in interest rates, availability of financing for retail and wholesale purchasers, consumer confidence, adverse weather conditions that reduce sales at retail centers, the risk of manufacturing plant shutdowns due to storms or other factors, the impact of marketing and cost-management programs, the impact of higher interest rates on mortgage financing, reliance on the Florida economy, impact of labor shortage, impact of materials shortage, increasing labor cost, cyclical nature of the manufactured housing industry, impact of rising fuel costs, catastrophic events impacting insurance costs, availability of insurance coverage for various risks to Nobility, market demographics, management’s ability to attract and retain executive officers and key personnel, increased global tensions, market disruptions resulting from terrorist attacks, or other events such as a pandemic, any armed conflict involving the United States and the impact of inflation.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer) have evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report (the “Evaluation Date”). Based on their evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were effective as of January 31, 2026.

Changes in Internal Control over Financial Reporting.

There were no changes in our internal controls over financial reporting that occurred during the first quarter of fiscal 2026 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

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Part II. OTHER INFORMATION AND SIGNATURES

There were no reportable events for Item 1, 3 and 4.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The following table represents information with respect to purchase by the Company of its common stock during the three months ended January 31, 2026.

	Total number						Toal number of shares			Maximum number of shares
	of shares			Average price			purchased as part of public			that may yet be purchased
Period	repurchased			paid per share			announced plans or programs*			under the plans or programs*
Nov 02, - Nov 30, 2025		0		$	0.00			0			0
Dec 01, - Dec 31, 2025		0		$	0.00			0			0
Jan 01, - Jan 31, 2026		100,000		$	29.70			100,000			0

*The Company’s Board of Directors in September of 2025, authorized the Company to repurchase up to 200,000 shares of the Company’s common stock during fiscal year 2026 on the open market. During the three months ended January 31, 2026, the Company repurchased an aggregate of 100,000 shares of common stock. There were no shares of its common stock purchased in the first quarter of 2025.

Item 5. Other Information

During the three months ended January 31, 2026 no director or Section 16 officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in item 408(a) of Regulation S-K.

Item 6. Exhibits

	31.	(a)		Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934
		(b)		Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934
	32.	(a)		Written Statement of Chief Executive Officer Pursuant to 18 U.S.C. §1350
		(b)		Written Statement of Chief Financial Officer Pursuant to 18 U.S.C. §1350
	101.			Interactive data filing formatted in XBRL
	104.			Cover Page Interactive Date File (formatted as inline XBRL and contained in Exhibit 101.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

				NOBILITY HOMES, INC.
DATE: March 17, 2026				By:		/s/ Terry E. Trexler
						Terry E. Trexler, Chairman,
						President and Chief Executive Officer
DATE: March 17, 2026				By:		/s/ Thomas W. Trexler
						Thomas W. Trexler, Executive Vice President, Secretary
						and Chief Financial Officer
DATE: March 17, 2026				By:		/s/ Lynn J. Cramer, Jr.
						Lynn J. Cramer, Jr., Treasurer
						and Principal Accounting Officer

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FAQ

How did Nobility Homes (NOBH) perform financially in Q1 2026?

Nobility Homes’ Q1 2026 results weakened year over year. Net sales declined to $10,502,846 from $12,241,742 and net income fell to $1,628,326 from $1,980,422, with diluted earnings per share decreasing to $0.50 from $0.60.

What happened to Nobility Homes’ margins in the first quarter of 2026?

Margins compressed modestly in Q1 2026. Gross profit was $3,197,106 versus $3,970,785 a year earlier, and gross margin slipped to 30% from 32%, mainly because more homes were sold through lower-margin independent dealers instead of company-owned retail centers.

What is Nobility Homes’ balance sheet and liquidity position as of January 31, 2026?

Nobility Homes reported a strong, debt-free balance sheet. Total assets were about $65,946,538, funded largely by stockholders’ equity of $59,433,307. Cash and cash equivalents were $11,083,302, supplemented by $14,184,546 in certificates of deposit and $622,994 in short-term investments.

Did Nobility Homes (NOBH) repurchase stock or issue dividends in early 2026?

Yes, Nobility Homes returned capital to shareholders. In January 2026, it repurchased 100,000 shares from its President at $29.70 per share. On March 6, 2026, the board declared a one-time $1.50 per-share cash dividend for fiscal 2025, payable April 13, 2026.

What operating challenges does Nobility Homes highlight for fiscal 2026?

The company sees continued headwinds in 2026. Management cites higher interest rates, economic uncertainty, supply delays, material and labor cost inflation, and labor shortages, and notes these factors have pressured retail demand and are expected to persist through the fiscal year.

How did Nobility Homes’ sales mix change in Q1 2026 versus 2025?

Sales shifted toward lower-margin wholesale channels. New retail homes sold through company-owned centers dropped to 43 from 67, while homes sold to independent dealers increased to 57 from 31, reducing overall margins despite stable average home pricing levels.