Champion Homes Announces Q1 Fiscal 2026 Financial Results
Champion Homes, Inc. a leading provider of factory-built housing solutions in North America, today announced its financial results for the first quarter of fiscal 2026, which ended on June 28, 2025. The company reported robust growth across several key performance indicators, demonstrating strong operational execution and continued market demand for its innovative housing offerings.
Highlights of First Quarter Fiscal 2026 (Compared to First Quarter Fiscal 2025):
- Net sales increased by 11.7% to $701.3 million
- U.S. homes sold rose by 6.5% to 6,965 units
- Average selling price (ASP) per U.S. home increased by 3.6% to $95,000
- Gross profit margin expanded by 90 basis points to 27.1%
- Net income surged by 41.3% to $64.7 million
- Earnings per diluted share (EPS) climbed by 43.0% to $1.13
- Adjusted EBITDA grew 25.6% to $94.2 million
- Adjusted EBITDA margin expanded to 13.4%, up by 150 basis points
- Operating cash flow totaled $75.3 million
- Share repurchases totaled $50 million during the quarter
- Iseman Homes acquisition successfully closed
- Backlog decreased 11.9% sequentially to $302.5 million
CEO Commentary
Tim Larson, President and Chief Executive Officer of Champion Homes, expressed satisfaction with the company’s performance during a quarter marked by changing economic conditions and consumer behaviors.
“The Champion Homes team delivered strong financial results to start fiscal year 2026, driven by our customer-centric strategy and agile operational execution,” Larson stated. “We are pleased with the results we were able to deliver in the first quarter given the dynamic market and consumer environment. We remain confident in our strategy and the demand for our homes, as reflected by our disciplined approach to capital allocation, including the closing of our acquisition of Iseman Homes and $50 million of share repurchases in the quarter.”
Detailed Financial and Operational Performance
Champion Homes reported first-quarter fiscal 2026 net sales of $701.3 million, an increase of 11.7% compared to $627.8 million in the same quarter of the prior year. This growth was primarily driven by higher unit volumes and increases in ASP due to favorable product mix and pricing actions.
The company sold 6,965 U.S. homes, representing a 6.5% year-over-year increase. This was largely attributed to a surge in shipments to the community sales channel, which continues to serve as a growth engine for the company. The average selling price per U.S. home rose to $95,000, supported by a shift toward more premium offerings and pricing optimization at company-owned retail locations.
In Canada, the number of factory-built homes sold climbed to 250 homes in Q1 fiscal 2026, up from 167 homes a year ago, signaling a resurgence in demand in key Canadian provinces.
Champion Homes’ gross profit for the quarter reached $189.8 million, up 15.6% from $164.2 million in the previous year’s first quarter. This translates to a gross margin of 27.1%, up 90 basis points. The margin improvement was largely driven by higher ASPs and more favorable pricing dynamics, particularly in the company-owned retail channel. Comparatively, the prior year’s margin was negatively affected by purchase accounting adjustments related to the Regional Homes acquisition, which are now absent.
Operating Expenses and Profitability
Selling, general, and administrative expenses (SG&A) increased modestly to $111.3 million from $108.8 million. The rise in SG&A was mainly due to higher variable compensation resulting from improved sales and profitability, the inclusion of expenses from the newly acquired Iseman Homes operations, and costs tied to plant closures. However, SG&A as a percentage of net sales improved to 15.9%, down from 17.3%, showcasing the company’s operating leverage and disciplined cost control.
Net income for the quarter stood at $64.7 million, marking a 41.3% increase from the same period last year. Earnings per diluted share rose to $1.13, up 43% from $0.79. The improvement reflects both top-line growth and margin expansion.
Adjusted EBITDA rose to $94.2 million, a year-over-year increase of 25.6%, while the adjusted EBITDA margin improved to 13.4%, up from 11.9%. These results indicate strong earnings quality and margin scalability.
Liquidity, Capital Allocation, and Strategic Updates
Champion Homes maintained a robust balance sheet, ending the quarter with $605.3 million in cash and cash equivalents. This figure includes the impact of $50 million in share repurchases conducted under the company’s ongoing share repurchase program. In addition, the company successfully closed on its acquisition of Iseman Homes, expanding its retail presence and strategic capabilities in several key markets.
The company’s Board of Directors further authorized an additional $150 million in share repurchases as of July 24, 2025, signaling strong confidence in the company’s financial position and growth outlook.
On the financing front, Champion Homes amended and extended its credit facility through 2030, enhancing financial flexibility to support long-term strategic initiatives and investments. More detailed terms and conditions regarding the facility are available in the company’s Form 8-K filed with the U.S. Securities and Exchange Commission.
Backlog and Market Trends
Champion Homes reported a backlog of $302.5 million, which represents an 11.9% decrease from the end of the previous quarter. While this may indicate some softening in near-term order flow, the company emphasized that the decline was expected due to the accelerated fulfillment of prior orders and a normalization in order rates post-pandemic. Management continues to monitor demand trends closely and remains optimistic about long-term housing needs in the U.S. and Canada.
Conference Call and Webcast Information
Champion Homes’ management team will host a conference call and webcast on August 6, 2025, at 8:00 A.M. Eastern Time to discuss the financial results and provide a broader update on strategic initiatives and market conditions. Interested parties can access the live webcast and accompanying slide presentation via the company’s investor relations website.
