Cavco Industries reported a 16.6% increase in net revenue for its fiscal first quarter ended June 28, totaling $557 million compared to $478 million during the same period last year.
The growth was primarily attributed to a 14.7% increase in home sales volume and improved factory utilization.
Factory-built housing gross profit margin remained flat at 22.6%, while financial services saw a significant turnaround with gross profit rising to 40.9% from a loss of 0.6% in the prior year’s first quarter.
Net income per diluted share increased 56% to $6.42, up from $4.11.
Income before income taxes also rose to $65.3 million, an increase of 48.9% compared to $44 million in the same quarter last year. The company noted that backlogs totaled $200 million at the end of the quarter, representing five to seven weeks of production.
According to a press release, President and Chief Executive Officer Bill Boor said Cavco’s production strategy contributed to the strong results.
“Our plants have been increasing run rates over the past few quarters in anticipation of continued order growth, where order rates and backlogs have supported,” Boor said.
“This quarter rewarded those decisions with higher shipments and stable quarter-to-quarter consolidated backlog. Financial Services also contributed to the strong results,” Boor added.
Boor also highlighted the company’s flexibility amid broader market uncertainties. “The market remains uncertain and our flexible business model makes us well positioned to adjust as needed,” he said.
In addition to quarterly performance, Cavco announced a definitive agreement to acquire American Homestar Corporation. The acquisition is intended to strengthen Cavco’s presence in the South Central U.S. market.
“Operational excellence like our team demonstrated this quarter, and the solid balance sheet we have maintained through the years has given us the ability to pursue exciting opportunities like this,” Boor said.
“At Cavco, we couldn’t be more excited to join forces with the America Homestar team and expand our reach in the South Central US as we continue to put more families into affordable homes,” Boor added.
During the quarter, the company repurchased approximately $50 million of its stock. Cavco noted it has $178 million remaining under its existing board-approved repurchase authorization.
Cavco’s factory-built housing products are distributed through a network of independent and company-owned retailers. The Phoenix-based company is among the largest manufacturers of manufactured and modular homes in the U.S. by wholesale shipment volume.
Cavco also produces park model RVs, vacation cabins, and commercial structures. Its finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and Ginnie Mae issuer.