Key Highlights

  • Revenue was USD 69.7 million against an estimate of USD 63.12 million, and EPS was USD 0.85 against USD 0.74.
  • Net income was USD 20.1 million compared with USD 8.6 million in the third quarter of 2025.
  • Workforce housing deliveries added USD 30.6 million, partly offset by lower inventory finance sales of USD 3.2 million.
  • Cash was USD 30.8 million, with short-term investments of USD 5.3 million and no borrowings on the Credit facility.

Workforce housing orders shaped the quarter at Legacy Housing Corporation (NASDAQ:LEGH). Deliveries under two agreements with a single Texas customer added USD 30.6 million of product sales, and that customer accounted for 53.8% of product sales in the quarter. Total net Revenue was USD 69.7 million, which the company stated as an increase of 72.2% over the third quarter of 2025, against an estimate of USD 63.12 million.

Workforce Housing Orders and a Leadership Change

The first agreement carried a non-refundable advance deposit of about USD 7.1 million received in the first quarter, with deliveries starting in the second quarter and USD 21.7 million of related sales recognized through September 30. A second deposit of about USD 8.0 million arrived in the third quarter, and USD 18.0 million of related sales were recognized as deliveries began. Management said it plans to deliver substantially all remaining units by the end of the first quarter of 2027, which would complete the agreements. The contracts give the customer an option to require repurchase of delivered units at 33% or 25% of the original price, between the fourth and sixth anniversaries of delivery, and the company recorded a USD 2.2 million refund Liability against it.

The quarter also brought a leadership change. The Executive Chairman retired effective July 21, and on August 13 the board appointed co-founder Kenneth Shipley as Chairman and Chief Executive Officer.

Results Around the Orders

Product sales were USD 55.18 million against USD 28.79 million, an increase the company stated as 91.7%. Interest on consumer, manufactured housing community and dealer loans was USD 11.33 million against USD 10.89 million, and other revenue was USD 3.2 million against USD 0.8 million. Net Income was USD 20.1 million, or USD 0.85 per diluted share, against USD 8.6 million, or USD 0.35.

For the nine months, revenue was USD 170.4 million and net income was USD 54.5 million, or USD 2.29 per diluted share. The nine-month effective tax rate was 14.3% against 17.5%, with the Section 45L energy efficient home credit among the factors.

Tariffs remain a cost factor. About 9.0% of material costs are purchased internationally, and tariffs added USD 700 to the average material cost per home over nine months. The company raised prices by an average of about 3.8% over that period. Management named trained labor as its most significant near-term constraint.

Cash, Financing and Capital Returns

Cash was USD 30.8 million at September 30, and short-term investments were USD 5.3 million. No borrowings were outstanding on the USD 50.0 million revolving credit facility. Operating Activities provided USD 35.3 million over nine months against USD 18.2 million.

A repurchase program of up to USD 10.0 million runs through February 28, 2029. The company repurchased 30,740 shares for USD 0.7 million in the nine months, none in the third quarter, and about USD 9.3 million of authorization remains.

Reference Points for Investors

Net revenue of USD 69.7 million sits alongside net income of USD 20.1 million, cash of USD 30.8 million and a USD 50.0 million undrawn credit facility. Management named the end of the first quarter of 2027 as the delivery date for the remaining workforce housing units.

The repurchase authorization ends February 28, 2029, and the Section 45L credit does not apply to homes sold after June 30, 2026.