Cavco Industries, a designer and producer of manufactured and modular homes, park model RVs, vacation cabins, and commercial factory-built structures, reported net revenue of $581 million for its third fiscal quarter ended December 27, 2025, an 11.3% increase from $522 million in the same period last year, driven by higher home sales volume and average selling prices.
The quarter marked the first full reporting period following Cavco’s September 29 acquisition of American Homestar Corporation, which added two manufacturing lines, nineteen retail locations, and a financial services operation to the company.
Home sales volume increased 3.2% in the quarter, though factory capacity utilization declined to approximately 70% from 75% a year earlier.
Factory-built housing gross profit as a percentage of revenue was 21.7%, down from 23.6% in the prior-year quarter, while financial services gross profit improved to 65.2% from 55.5%.
Income before income taxes fell 16.9% to $58 million, compared with $69 million a year earlier, and net income per diluted share attributable to Cavco common stockholders declined 19.1% to $5.58 from $6.90.
American Homestar contributed $42 million to revenue with 343 homes sold, alongside $6.9 million in incremental selling, general and administrative costs and $2.9 million in deal-related expenses.
Backlogs totaled $160 million at the end of the quarter, representing roughly four to six weeks of production. Stock repurchases reached approximately $44 million in the quarter, leaving $98 million available under previously announced board authorizations.
According to a press release, President and Chief Executive Officer Bill Boor said the company maintained a steady production pace despite slower industry shipments in October and November.
“Affordable housing continues to rise in national policy discussions, and as we talk with retailers and communities, the tone in the market remains optimistic,” Boor said, adding that the spring selling season will guide potential production increases.
Boor also highlighted the strong performance of Cavco’s financial services segment and said the American Homestar integration is entering a phase expected to yield benefits exceeding initial expectations.
Featured image by Cavco Industries via cavco.com