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Champion Homes Beats Q4 Estimates and Agrees to Buy Homes Direct

Strong sales and higher orders position the company to expand company-owned retail and boost western plant use while management warns rising input costs will pressure margins early in fiscal 2027.

Overview

  • Champion Homes reported fourth-quarter net sales of $621.3 million and adjusted diluted EPS of $0.68 in its May 26 earnings release, beating consensus estimates.
  • The company sold a record 26,622 homes for the fiscal year, the most since it went public in 2018, signaling sustained demand for lower-cost factory-built housing.
  • Manufacturing orders rose about 7% year over year and backlog grew to roughly $316 million sequentially, improving visibility heading into the spring selling season.
  • Champion agreed to buy Homes Direct’s assets, adding 11 western U.S. retail locations that management says can be converted to sell Champion-built homes and raise western facility utilization.
  • The company generated $303.9 million in operating cash flow, ended the year with $638.3 million in cash, reduced long-term debt, repurchased $200 million of stock, refreshed a $150 million buyback authorization, and guided to roughly flat revenue and a slightly lower gross margin for fiscal Q1 2027 due to rising input costs.