Key Highlights

  • Net Revenue grew 17.9% to $656.4 million from $556.5 million.
  • Home sales Volume rose 15.3%, while capacity utilization held steady near 75%.
  • Net income reached $7.17 per diluted share, up 9% from $6.55.
  • Factory-built housing gross Margin was 21.1%, compared with 22.9% a year ago.
  • Backlogs totaled $348 million, up $50 million from the prior quarter.

Record revenue on higher volume and prices

Cavco (NASDAQ:CVCO) is a Phoenix, Arizona manufacturer of factory-built homes that also runs a financial services arm. It reported results for its fiscal 2027 second quarter, which ended September 26, 2026, on October 29, 2026. Net revenue was $656.4 million, an increase of $100 million, or 17.9%, from $556.5 million.

The company attributed the gain mainly to higher home sales volume and a higher average selling price per home. Factory-built housing revenue reached $633.7 million, up 18.4%, while financial services revenue was $22.6 million, up 5.8%.

CEO Bill Boor said the quarter marked the second consecutive record for revenue and unit volume.

Margins diverge between housing and financial services

Factory-built housing Gross Profit equaled 21.1% of net revenue, compared with 22.9% a year earlier. Financial services gross profit rose to 60.2% from 55.6%.

Selling, general and administrative expenses included a one-time $7 million benefit from a return of insurance premium, which added $0.70 to Net Income per diluted share. Excluding it, EPS on a calculated basis would have been about $6.47, slightly below the $6.55 posted last year.

Income before income taxes was $73 million, up $6 million, or 9.1%, from $67 million. Net income per diluted share came to $7.17, up 9% from $6.55.

Unit volume and pricing detail

Cavco sold 5,972 factory-built homes in the quarter, up 15.3% from 5,178, and 9,794 modules, up 12.6% from 8,699. Net factory-built housing revenue per home sold rose 2.7% to $106,118 from $103,344, so on a calculated basis volume rather than price did most of the work.

Consolidated gross profit was $147.6 million, up 9.8%, but the consolidated margin fell to 22.5% from 24.2%. Selling, general and administrative expenses rose 7.6% to $77.7 million, and income from operations was $69.9 million, up 12.4% from $62.2 million. Factory-built housing Operating Income reached $64.4 million, up 13.4%, while financial services operating income was $5.6 million, up 2.0%.

For the six months, net revenue totaled $1,266.3 million, up 13.7%, on 11,629 homes sold, up 9.8%. The company said the prior-year American Homestar Acquisition contributed to volume growth in both periods, alongside organic growth, and that financial services revenue increased on Loan sale volume and retained insurance premium.

Backlog builds as orders cool

Backlogs totaled $348 million at quarter-end, representing eight to ten weeks of production and rising $50 million sequentially from $298 million. Mr. Boor said orders were below the preceding quarter's pace but remained healthy.

He said the company enters the seasonally slower winter months in a strong position, with the ability to adjust production to demand. Capacity utilization held steady at about 75%.

He also noted that the company displayed Grande Arbor, described as the first off-chassis HUD-Code home, at the federal housing agency's Innovative Housing Showcase in Washington, D.C.

Buybacks and policy support

The company repurchased about $30 million of stock during the quarter, and $158 million remains available under existing board authorizations.

Mr. Boor said increasing federal and state-level support through the ROAD to Housing Act and other reforms should open opportunities for factory-built housing in the years ahead.

Readers following the stock will likely track whether gross margin recovers from 21.1%, how Backlog trends through the winter months and how much stock the company buys back against the $158 million still available.