Champion Homes Reports Strong Earnings and Expands Retail Presence
Champion Homes Stock Gains On Earnings Beat, Strong Orders, Homes Direct Deal
Image: Benzinga
Champion Homes, Inc. (NYSE: SKY) shares rose after reporting a fourth-quarter fiscal 2026 adjusted EPS of 68 cents, surpassing estimates. Revenue reached $621.3 million, driven by increased selling prices and a new acquisition of Homes Direct, enhancing its market position in the western U.S.
- 01Champion Homes' adjusted net income rose by 0.8% to $37.7 million despite an 18.4% decline in net income to $29.7 million.
- 02The company’s adjusted EBITDA increased by 6.3% to $55.9 million, with an adjusted EBITDA margin of 9.0%.
- 03Champion Homes plans to acquire Homes Direct, the largest independent dealer in the western U.S., which generates about $70 million in annual revenue.
- 04Despite an 8% year-over-year decline in backlog, manufacturing orders increased by 7% year over year.
- 05The company expects first-quarter fiscal 2027 revenue to remain flat year over year, with an adjusted gross margin forecast of 24.5% to 25.5%.
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Champion Homes, Inc. (NYSE: SKY) saw its stock rise by 0.90% to $71.58 following the announcement of its fourth-quarter fiscal 2026 results, which included an adjusted earnings per share (EPS) of 68 cents, exceeding analyst expectations of 60 cents. The company's revenue reached $621.3 million, surpassing the consensus estimate of $607.3 million. Although net income fell by 18.4% to $29.7 million, adjusted net income increased by 0.8% to $37.7 million. The adjusted EBITDA rose by 6.3% to $55.9 million, with an improved EBITDA margin of 9.0%. Champion Homes announced plans to acquire Homes Direct, expanding its retail presence in the western U.S. and aiming to replace competing brands with its own manufactured homes. The company also noted inflationary pressures impacting costs and consumer affordability, leading to a cautious outlook for the upcoming quarter.
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The acquisition of Homes Direct may lead to increased job opportunities and economic activity in the regions where Champion operates, particularly in the western U.S.
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