Champion Homes Q2 net income falls to $52.7M
U.S. home sales rose 2.3% to 6,724 units, and average selling price increased 4.1% to $102,700.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Champion Homes, Inc. (SKY) reported fiscal 2027 second-quarter net sales of $727.032 million, up 6.2% from the prior-year quarter. Net income attributable to Champion Homes was $52.661 million, down from $58.199 million; the company attributed the decline primarily to inflationary increases in cost of sales. Diluted EPS was $0.97, compared with $1.03, and adjusted diluted EPS was $0.95. Adjusted EBITDA was $76.591 million, with a 10.5% adjusted EBITDA margin; gross profit margin was 25.5%.
U.S. homes sold rose 2.3% to 6,724, while average selling price per U.S. home increased 4.1% to $102,700; Canadian factory-built home sales were 198, versus 196 a year earlier. Backlog was approximately $500 million. Cash and cash equivalents were $702.782 million as of September 26, 2026. Champion Homes repurchased and retired $50.0 million of common stock during the quarter; in October, the board refreshed the authorization to provide for $150.0 million of potential future repurchases. Adjusted SG&A increased 5.4% to $118.5 million, which the company attributed to its expanded retail footprint. Adjusted measures are non-GAAP and supplemental to, not a substitute for, GAAP results.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet sales increased 6.2% to $727.032 million year over year.
Negative
- Moderate pointChampion Homes' attributable net income fell to $52.661 million from $58.199 million.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA Margin financial
Adjusted EPS financial
Non-GAAP Financial Measures financial
ASP per U.S. home sold financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were SKY's second-quarter fiscal 2027 sales?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
|
||||
|
||||
(Address of Principal Executive Offices) |
|
(Zip Code) |
||
Registrant’s Telephone Number, Including Area Code: |
|
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
|
|
Trading |
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 3, 2026, Champion Homes, Inc. (the “Company”) issued a press release relating to its results of operations and financial condition for the quarter ended September 26, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The attached press release contains both U.S. Generally Accepted Accounting Principles (“GAAP”) and non-GAAP financial measures. Reconciliations between non-GAAP and GAAP financial measures are included in the attached press release. The Company's management utilizes non-GAAP financial information to provide a useful measure of comparative operating performance of the Company. The non-GAAP financial measures are supplemental to, and not a substitute for, measures of financial performance prepared in accordance with GAAP.
The press release, and the information set forth therein, is being furnished pursuant to Item 2.02 of this Current Report and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that Section. Nor shall such document be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in the filing unless specifically stated so therein.
Item 8.01 Other Events.
On November 3, 2026 the Company announced that its Board of Directors approved an increase of $50.0 million to the Company's existing share repurchase program to refresh the available amount to $150.0 million. Portions of the press release attached as Exhibit 99.1 to this Current Report on Form 8-K with respect to the share repurchase program are incorporated in this Item 8.01 by reference.
Item 9.01 Financial Statements and Exhibits.
99.1 |
Press Release issued by Champion Homes, Inc. on November 3, 2026 |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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 hereunto duly authorized.
|
|
|
Champion Homes, Inc. |
|
|
|
|
Date: |
November 3, 2026 |
By: |
/s/ Laurel Krueger |
|
|
|
Laurel Krueger |
99.1
CHAMPION HOMES ANNOUNCES SECOND QUARTER FISCAL 2027 RESULTS
Troy, Michigan, November 3, 2026 /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
“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.
Investor contact information:
Name: Ellen Kaleniecki, Head of Investor Relations
Email: investorrelations@championhomes.com
Phone: (248) 614-8211
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 |
|
|