Champion Homes, a company producing factory-built housing in North America with a portfolio of manufactured and modular homes, ADUs, park-models and modular, reported higher net sales but lower profit and margins in its third quarter of fiscal 2026.
The factory-built housing producer said net sales rose 1.8% to $656.6 million for the quarter ended Dec. 27, 2025, compared with the same period a year earlier. The results were released as part of the company’s third-quarter fiscal 2026 earnings report.
Net income fell 11.7% to $54.3 million, while earnings per diluted share declined 8.5% to $0.97. Adjusted EBITDA decreased 10.2% to $74.8 million, and adjusted EBITDA margin narrowed by 150 basis points to 11.4%.
U.S. homes sold decreased 2.6% to 6,270 units.
Average selling price per U.S. home sold increased 4.6% to $99,300, driven by product mix changes and higher prices on homes sold through company-owned retail centers. Canadian factory-built home sales rose 2.9% to 215 homes, up from 209 a year earlier.
Gross profit declined 4.9% to $172.2 million. Gross profit margin fell to 26.2% from 28.1%, reflecting higher manufacturing material costs and reduced absorption of fixed costs due to lower sales volumes.
Selling, general and administrative expenses increased to $109.7 million from $108.2 million, primarily due to the inclusion of the Iseman Homes acquisition completed in May 2025. As a percentage of net sales, SG&A held relatively flat at 16.7%.
Champion Homes generated $100.0 million in net cash from operating activities during the quarter and ended the period with $659.8 million in cash and cash equivalents, up $41.0 million from the prior quarter.
The company repurchased and retired $50.0 million of its common stock.
On Jan. 29, the board refreshed its share repurchase authorization to allow up to $150 million in future buybacks.
“Despite a challenging environment in the third quarter, we delivered strong operational execution, advanced our strategic priorities, and achieved financial results in line with our expectations,” Tim Larson, president and chief executive officer of Champion Homes, said in a press release.
Featured image by Champion Homes