Key Highlights

  • Net Revenue rose 17.9% to $656.4 million from $556.5 million.
  • Home sales Volume increased 15.3%, with capacity utilization steady near 75%.
  • Net income was $7.17 per diluted share, up 9% from $6.55.
  • Factory-built housing gross Margin was 21.1%, versus 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), a Phoenix, Arizona manufacturer of factory-built homes with a financial services arm, reported results for its fiscal 2027 second quarter ended September 26, 2026 on October 29, 2026. Net revenue was $656.4 million, up $100 million, or 17.9%, from $556.5 million.

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

CEO Bill Boor said it was the second consecutive quarter of record revenue and unit volume.

Margins diverge between housing and financial services

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

Selling, general and administrative expenses included a one-time $7 million benefit from a return of insurance premium, which favorably affected Net Income per diluted share by $0.70. Without it, EPS on a calculated basis would have been about $6.47, 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 was $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 volume rather than price did most of the work on a calculated basis.

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 was $64.4 million, up 13.4%, while financial services was $5.6 million, up 2.0%.

For the six months, net revenue was $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 rose 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 up $50 million from $298 million sequentially. Mr. Boor said orders were off the preceding quarter pace but remained healthy.

He said the position is strong going into the seasonally slower winter months, with the ability to adjust production depending on demand. Capacity utilization held steady at about 75%.

He also noted that the company showed 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 in 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 will open opportunities for factory-built housing in the years ahead.

Readers tracking the name will likely follow whether gross margin recovers from 21.1%, how the Backlog trends through the winter months and how much stock the company repurchases against the $158 million that remains.