Highlights

  • Cavco grew fiscal second-quarter 2027 net Revenue 17.9% to US$656.4 million from US$556.5 million a year earlier.
  • Homes sold rose 15.3% to 5,972, supported by organic growth and the American Homestar acquisition.
  • Diluted earnings per share increased 9.5% to US$7.17, including a one-time insurance premium return worth US$0.70.
  • Backlog reached US$348 million at quarter-end, up US$50 million sequentially and equal to eight to ten weeks of production.

Factory-built home producer Cavco Industries, Inc. (NASDAQ:CVCO) has reported record revenue and unit Volume for a second consecutive quarter while growing its order backlog. On 29 October 2026, the company said net revenue for the second quarter of fiscal 2027, ended 26 September 2026, rose 17.9% to US$656.4 million, as homes sold climbed 15.3% to 5,972.

Net income increased 5.8% to US$55.4 million and Diluted Earnings per Share rose 9.5% to US$7.17 from US$6.55. The result includes a one-time US$7 million benefit from a return of insurance premium tied to directors and officers coverage bought in 2019, which added US$0.70 to diluted earnings per share.

Volume Gains Offset Margin Pressure in Factory-Built Housing

Factory-built housing revenue rose 18.4% to US$633.7 million, helped by the American Homestar Acquisition completed in the prior fiscal year, organic growth and a 2.7% increase in net revenue per home to US$106,118. Input costs weighed on profitability, with the segment's gross margin easing to 21.1% from 22.9%. Segment income from operations still grew 13.4% to US$64.4 million.

Financial services revenue increased 5.8% to US$22.6 million on higher Loan sale volume and retained insurance premium, and the segment's gross margin widened to 60.2%. Consolidated gross margin was 22.5%, compared with 24.2% a year earlier, while total income from operations rose 12.4% to US$69.9 million.

Half-Year Results and Capital Deployment

For the six months to 26 September 2026, net revenue grew 13.7% to US$1,266.3 million and homes sold rose 9.8% to 11,629. Net Income for the half declined 6.1% to US$97.7 million, and diluted earnings per share fell 2.9% to US$12.59. Over the same period, interest income fell 32.4% to US$6.9 million, while selling, general and administrative expenses rose 12.9% to US$159.5 million.

Cavco repurchased about US$30 million of its shares in the second quarter and had US$158 million remaining under board authorizations. Cash and cash equivalents rose to US$271.9 million from US$236.7 million at 28 March 2026. Capital Expenditure for the quarter increased to US$29.7 million from US$9.9 million, and plant capacity utilization held at about 75%.

Order Trends, New Demand and Policy Backdrop

Chief Executive Officer Bill Boor said orders slowed from the previous quarter but remained healthy, and that the company can adjust production to order trends heading into the seasonally slower winter months. He expects materials Inflation to remain a challenge, although selling price increases outpaced cost pressures in the quarter, producing a small sequential gross margin improvement.

Orders and shipments of workforce housing for Data Center projects began during the quarter and are supporting backlog. Management also highlighted the Grande Arbor, described as the first off-chassis HUD-Code home, and said federal and state support, including the ROAD to Housing Act, should open new opportunities for factory-built housing.