Champion Homes, Inc. Q2 FY2026 earnings call

Strategic priorities include innovating/differentiating products/services and advocating for the ROAD to Housing Act. In Q2, net sales increased 11% to $684 million, homes sold up 4% to 6,771. Manufacturing backlog $313 million, up 4% sequentially. Channel performance: independent retail sales grew, captive retail up with Iseman acquisition, community sales down, builder developer sales up. Collaborated with NY State for affordable housing in Syracuse with homes under $250k and <6 months to complete.

Second quarter year-over-year net sales increased 11% to $684 million, and homes sold increased 4% to 6,771 homes. U.S. factory-built housing revenue increased 11%, with the number of U.S. homes sold increasing 3% to 6,575. Average selling price per U.S. home sold increased 7% to $98,700. Canadian revenue was $26 million, a 10% increase in homes sold, with average home selling price up 7% to $133,300. Consolidated gross profit increased 13% to $188 million, gross margin expanded to 27.5%, SG&A increased $13 million to $113 million, net income attributable to Champion Homes increased to $58 million, and adjusted EBITDA was $83 million, up 12%.

Anticipates third quarter revenue to be flat versus the third quarter last year due to unit sales shift from Q2 last year (hurricanes in North Carolina and Florida).

Factors from earnings release and SEC filings that could cause actual results to differ from expectations, including macroeconomic, legislative, and market dynamics.

Q: Greg Palm on community and builder developer markets A: Community down due to inventory and market softening; builder developer channel growing with pipeline.

Q: Dan Moore on orders, production, and ROAD to Housing A: Orders encouraging in Oct but balanced by y/y shift; production paced by market; ROAD to Housing could open municipal doors and affect product.

Q: Philip Ng on 3Q ASP, trends, and retail A: ASPs stable sequentially with mix as driver; community impact significant; retail encouraged but balanced.

Q: Matthew Bouley on ROAD to Housing timing, captive retail mix A: Product dev teams evolving; captive retail mix to multi-width due to new products and affordability; drawing buyers from site-built.

Q: Michael Dahl on ROAD to Housing timing, near-term gross margin A: ROAD to Housing timing depends on legislative/HUD process; near-term gross margin ~26% due to lower material costs, higher captive ASPs, product mix.

Q: Jesse Lederman on tariff impact, revenue, regional performance A: Tariffs impact expected to increase but mitigated; revenue driven by stronger retail and product mix; stronger in NE/Southeast, moderating in West