Oil prices rise on talk of Russia sanctions; bouncing off recent lows
Investing.com -- Champion Homes, Inc. (NYSE:SKY) reported first quarter fiscal 2026 earnings that significantly exceeded analyst expectations, sending shares surging 10.3% as investors cheered the company’s strong performance and improved profitability.
The manufactured housing provider reported adjusted earnings per share of $1.19, beating analyst estimates of $0.82 by 45%. Revenue rose to $701.3 million, surpassing the consensus estimate of $642.19 million and representing an 11.7% increase compared to the same period last year. The company’s gross profit margin expanded by 90 basis points to 27.1%, while adjusted EBITDA jumped 25.6% to $94.2 million.
"The Champion Homes team delivered strong financial results to start fiscal year 2026, driven by our customer-centric strategy and agile operational execution," said Tim Larson, President and Chief Executive Officer of Champion Homes.
The company reported a 6.5% increase in U.S. homes sold to 6,965 units, primarily driven by higher shipments to the community sales channel. The average selling price per U.S. home rose 3.6% to $95,000 due to product mix changes and increased prices at company-owned retail centers. Canadian factory-built home sales increased to 250 units from 167 in the prior-year period.
During the quarter, Champion Homes completed its previously announced acquisition of Iseman Homes and repurchased $50 million of its common stock. The company’s board recently refreshed its share repurchase authorization to provide for $150 million in potential future repurchases.
Despite the strong performance, the company’s backlog decreased 11.9% to $302.5 million from the sequential fourth quarter of fiscal 2025, potentially signaling some normalization in order rates.
Champion Homes ended the quarter with $605.3 million in cash and cash equivalents, a slight decrease of $5.0 million from the previous quarter, reflecting its acquisition and share repurchase activities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.