Legacy Housing (LEGH) Q4 2025 earnings summary

Executive summary

• Net revenue for 2025 declined 10.7% to $164.6 million, with unit sales down 20% year-over-year, but revenue per unit rose 13% due to price increases and tariffs.

• Net income for 2025 was $41.8 million, down 32.2% from 2024, with diluted EPS at $0.74 and basic EPS at $1.74.

• Book value per share increased 8.6% to $22.20 at year-end 2025.

• Q4 2025 net income was $8.2 million, a 43% decrease year-over-year, with net revenue down 29%, largely due to the absence of a prior-year non-recurring sale.

• Income from operations fell 23.9% to $48.4 million compared to 2024.

Financial highlights

• Generated $37.2 million in cash from operations in 2025.

• Product sales fell 9.6% to $116.9 million; commercial sales to park customers dropped 30% due to capital caution and high occupancy.

• Direct and retail store sales rose 25% and 12.7%, respectively, as the company expanded its store network.

• Product gross margin declined to 27.5% from 30.4% in 2024, impacted by higher raw material costs and tariffs.

• Repurchased 346,406 shares for $7.6 million during the year.

Outlook and guidance

• Management expects continued growth in the consumer loan portfolio and interest income.

• Q1 2026 revenue recognition will be delayed as significant finished goods inventory is tied to large customer orders, with revenue expected to be recognized in Q2.

• SG&A as a percentage of sales is expected to normalize in 2026 as non-recurring items subside.

• Management anticipates a favorable trend in operating expenses and product profits in 2026, supported by workforce housing and data center demand.

• Management remains confident in long-term demand for affordable manufactured housing.