Cavco Industries (CVCO) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 FY26 was $556.5 million, up 9.7% year-over-year, driven by higher home sales volume and increased revenue per home sold.

• Net income for the quarter was $52.4 million, a 19.6% increase from $43.8 million in the prior year period.

• Diluted EPS for the quarter was $6.55, up from $5.28 a year ago, reflecting strong performance in both factory-built housing and financial services.

• Completed the $190 million acquisition of American Homestar after the quarter, expanding manufacturing and retail presence in the South Central U.S.

• Strong performance across all operations, with double-digit shipment growth in the northern U.S. and a slowdown in the Southeast.

Financial highlights

• Factory-built housing segment revenue rose 10% to $535.1 million, driven by a 5.4% increase in homes sold and a 4.4% increase in average revenue per home.

• Financial services segment revenue was $21.4 million, up 1.4% year-over-year; gross profit surged 158.9% due to higher insurance premiums and lower claim losses.

• Consolidated gross profit margin was 24.2%, up 130 bps year-over-year; gross profit increased to $134.4 million.

• Operating income for the quarter was $62.2 million, up from $49.1 million year-over-year.

• Cash and cash equivalents at quarter-end were $375 million, up from $356.2 million at the start of the fiscal year.

Outlook and guidance

• Market remains balanced, with strong conditions in the North and stable but slower Southeast; industry home shipments increased 3.2% year-to-date.

• Backlog at quarter-end was $210 million, up from $197 million at the start of the year but down from $276 million a year ago.

• Management expects continued growth opportunities from the American Homestar acquisition and ongoing investments in home-only lending programs.

• Tariff and input cost pressures are being monitored, with the ability to pass costs through dependent on local market conditions.

• Forward-looking statements caution about risks including demand, financing, labor, raw materials, and regulatory compliance.