Cavco Industries reports $55.44 million net income for fiscal Q2 2027

Cover page 2 changes

3 unchanged paragraphs

For the quarterly period ended June 27, September 26, 2026

23 unchanged paragraphs

As of July 23, October 22, 2026, 7,689,402 7,630,411 shares of the registrant's Common Stock, $0.01 par value, were outstanding.

2 unchanged paragraphs

Financial statements 101 changes

3 unchanged paragraphs

Inventories 308,978 295,671

Cash and cash equivalents $ 243,195 271,911 $ 236,721

Restricted cash, current 22,437 25,386 20,306

Accounts receivable, net 115,858 139,244 108,288

Short-term investments 18,279 17,166 16,233

Current portion of consumer loans receivable, net 17,367 19,713 19,207

Current portion of commercial loans receivable, net 45,580 41,835 54,841

Current portion of commercial loans receivable from affiliates, net 1,634 1,510 1,836

Inventories 311,110 295,671

Prepaid expenses and other current assets 63,867 54,554 71,630

Total current assets 882,429 824,733

1 unchanged paragraph

Investments 39,652 38,151

Goodwill 209,241 208,841

Investments 43,416 38,151

Consumer loans receivable, net 18,827 17,474 18,974

Commercial loans receivable, net 69,903 65,715 55,801

Commercial loans receivable from affiliates, net 3,532 3,993 3,519

Property, plant and equipment, net 297,980 321,398 278,890

Goodwill 211,667 208,841

Other intangibles, net 27,462 26,859 28,067

Operating lease right-of-use assets 37,071 37,992 33,578

Total assets $ 1,541,448 1,611,528 $ 1,491,139

1 unchanged paragraph

Accounts payable $ 46,454 $ 44,168

Total liabilities 431,052 387,957

Accounts payable $ 68,047 $ 44,168

Accrued expenses and other current liabilities 329,208 352,184 291,230

Total current liabilities 375,662 420,231 335,398

Operating lease liabilities 33,744 32,955 30,747

Other liabilities 6,972 6,977 7,096

Deferred income taxes 14,674 14,362 14,716

Total liabilities 474,525 387,957

2 unchanged paragraphs

Common stock, $ 0.01 par value; 40,000,000 shares authorized; Issued 9,504,933 9,509,421 and 9,474,288 shares, respectively; Outstanding 7,709,359 7,661,911 and 7,738,700 shares, respectively

Treasury stock, at cost; 1,795,574 1,847,510 and 1,735,588 shares, respectively ( 616,372 646,225 ) ( 585,865 )

Additional paid-in capital 295,773 298,032 300,208

Retained earnings 1,430,985 1,486,424 1,388,714

Accumulated other comprehensive (loss) income ( 85 1,323 ) 30

Total stockholders' equity 1,110,396 1,137,003 1,103,182

Total liabilities and stockholders' equity $ 1,541,448 1,611,528 $ 1,491,139

4 unchanged paragraphs

Three Months Ended Six Months Ended

1 unchanged paragraph

Income from operations 52,755 60,358

Interest income 3,263 5,103

Interest expense ( 132 ) ( 164 )

Other expense, net ( 98 ) —

Income before income taxes 55,788 65,297

Income tax expense ( 13,517 ) ( 13,655 )

Income from operations 69,902 62,178 122,657 122,536

Interest income 3,595 5,046 6,858 10,149

Interest expense ( 282 ) ( 112 ) ( 414 ) ( 276 )

Other income, net 136 142 38 142

Income before income taxes 73,351 67,254 129,139 132,551

Income tax expense ( 17,912 ) ( 14,873 ) ( 31,429 ) ( 28,528 )

1 unchanged paragraph

Net income $ 42,271 $ 51,642

Net income $ 55,439 $ 52,381 $ 97,710 $ 104,023

Reclassification adjustment for securities sold ( 132 1,571 ) 117 136 ( 1,703 ) 253

Applicable income tax benefit (expense) 28 329 ( 24 29 ) 357 ( 53 )

1 unchanged paragraph

Applicable income tax benefit (expense) 3 ( 1 )

Comprehensive income $ 42,156 $ 51,738

Applicable income tax (expense) benefit ( 1 ) ( 1 ) 2 ( 2 )

Comprehensive income $ 54,201 $ 52,495 $ 96,357 $ 104,233

7 unchanged paragraphs

Net income $ 42,271 $ 51,642

Net income $ 97,710 $ 104,023

1 unchanged paragraph

Depreciation and amortization 6,691 5,169

Deferred income taxes ( 49 ) 558

Stock-based compensation expense 4,101 3,564

Depreciation and amortization 13,576 10,502

Provision for credit losses 296 ( 489 ) ( 64 )

Deferred income taxes ( 33 ) 9,071

Stock-based compensation expense 7,153 7,093

Non-cash interest income, net ( 252 465 ) ( 239 457 )

Loss (gain) on sale or retirement of property, plant and equipment, net 268 80 265 ( 15 )

Gain on investments and sale of loans, net ( 3,045 4,275 ) ( 1,054 2,551 )

1 unchanged paragraph

Accounts receivable ( 7,570 ) ( 10,390 )

Consumer loans receivable originated ( 26,886 ) ( 15,231 )

Inventories ( 13,307 ) ( 5,373 )

Commercial loans receivable originated ( 43,666 ) ( 42,378 )

Accounts receivable ( 31,043 ) ( 9,783 )

Consumer loans receivable originated ( 59,307 ) ( 29,807 )

Proceeds from sales of consumer loans receivable 29,031 12,357 59,782 31,037

Principal payments received on consumer loans receivable 1,338 1,417 2,703 2,885

Inventories ( 15,439 ) ( 5,728 )

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

2 unchanged paragraphs

and 21 more changes in the filing

Note 1: Basis of Presentation 3 changes

1 unchanged paragraph

On September 29, 2025, we acquired American Homestar Corporation ("American Homestar"), including its two manufacturing facilities, 19 wholly-owned retail locations and financial service operations. The results of operations are included in our Consolidated Financial Statements from the date of acquisition. See Note 19.

In the opinion of management, these financial statements include all adjustments, including normal recurring adjustments, which are necessary to fairly state the interim results for the periods presented. We have evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC, and there were no disclosable subsequent events. These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in our 2026 Annual Report on Form 10-K for the year ended March 28, 2026, filed with the SEC ("Form 10-K").

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. Due to uncertainties, actual results could differ from the estimates and assumptions used in preparation of the Consolidated Financial Statements. The Consolidated Statements of Comprehensive Income and Consolidated Statements of Cash Flows for the interim periods are not necessarily indicative of the results or cash flows for the full year. The Company operates on a 52-53 week fiscal year ending on the Saturday nearest to March 31 st 31st of each year. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest March 31 st . 31st. The current fiscal year will end on April 3, 2027 and will include 53 weeks.

1 unchanged paragraph

Note 3: Revenue from Contracts with Customers 8 changes

1 unchanged paragraph

Three Months Ended Six Months Ended

September 26, 2026 September 27, 2025 September 26,

1 unchanged paragraph

Home sales $ 558,863 $ 509,736

Delivery, setup and other revenues 27,109 25,958

Home sales $ 603,191 $ 509,750 $ 1,162,054 $ 1,019,486

Delivery, setup and other revenues 30,545 25,367 57,654 51,325

1 unchanged paragraph

All other sources 22,049 19,753

All other sources 20,317 19,896 42,366 39,649

Note 4: Cash and Cash Equivalents and Restricted Cash 4 changes

1 unchanged paragraph

Cash and cash equivalents $ 243,195 $ 236,721

Restricted cash, current 22,437 20,306

Cash and cash equivalents $ 271,911 $ 374,978

Restricted cash, current 25,386 24,391

1 unchanged paragraph

Note 5: Investments 15 changes

1 unchanged paragraph

Available-for-sale debt securities $ 36,055 38,950 $ 34,141

2 unchanged paragraphs

Less short-term investments ( 18,279 17,166 ) ( 16,233 )

1 unchanged paragraph

June 27, September 26, 2026 March 28, 2026

5 unchanged paragraphs

Due after ten years 6,201 6,193

Mortgage-backed securities 15,446 15,364

Due in less than one year $ 1,640 893 $ 1,641 893

Due after one year through five years 10,109 10,099 10,130 9,891

Due after five years through ten years 2,767 2,758 3,480 3,326

Due after ten years 7,301 6,884

Mortgage-backed securities 18,821 17,956

1 unchanged paragraph

Three Months Ended Six Months Ended

1 unchanged paragraph

Net gain recognized during the period $ 1,600 $ 599

Net (loss) gain recognized during the period $ ( 80 ) $ 993 $ 1,520 $ 1,592

Less: Net (gain) loss recognized on securities sold during the period 277 56 ( 5 ) ( 47 ) 272 9

Unrealized (loss) gain recognized during the period on securities still held $ 1,877 ( 85 ) $ 655 946 $ 1,792 $ 1,601

Note 6: Inventories 5 changes

1 unchanged paragraph

Raw materials $ 91,817 $ 87,180

Finished goods 181,916 173,523

Raw materials $ 99,025 $ 87,180

Work in process 35,245 39,700 34,968

Finished goods 172,385 173,523

Note 7: Consumer Loans Receivable 14 changes

1 unchanged paragraph

Loans held for investment, previously securitized $ 10,021 9,242 $ 13,265

Loans held for investment 13,095 12,199 11,437

Loans held for sale 12,721 15,470 12,622

Construction advances 1,668 1,667 2,245

Deferred financing fees and other, net ( 592 774 ) ( 601 )

Allowance for loan losses ( 719 617 ) ( 787 )

Less current portion ( 17,367 19,713 ) ( 19,207 )

1 unchanged paragraph

Weighted average contractual interest rate 7.3 7.4 % 7.4 %

Weighted average effective interest rate 7.9 7.1 % 8.9 %

Weighted average months to maturity 206 217 212

1 unchanged paragraph

Current $ 35,490 $ 37,792

Current $ 36,974 $ 37,792

31 to 60 days 221 234 826

9 unchanged paragraphs

As of June 27, September 26, 2026, 42 40 % of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 12 % was concentrated in Florida. As of March 28, 2026, 44 % of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 13 % was concentrated in Florida. Other than Texas and Florida, no sta te had concentrations in excess of 10% of the outstanding principal balance of the consumer loans receivable as of June 27, September 26, 2026 or March 28, 2026.

Note 8: Commercial Loans Receivable 6 changes

2 unchanged paragraphs

Loans receivable (including from affiliates) $ 122,016 113,623 $ 116,688

Allowance for loan losses ( 1,217 420 ) ( 546 )

1 unchanged paragraph

Less current portion of commercial loans receivable (including from affiliates), net ( 47,214 43,345 ) ( 56,677 )

1 unchanged paragraph

Weighted average contractual interest rate 7.8 7.3 % 7.5 %

4 unchanged paragraphs

As of June 27, September 26, 2026, approximately 13 15 % of our outstanding commercial loans receivable principal balance was concentrated in New York, 12 13 % in Arizona, and 11 % each in California and North Carolina. As of March 28, 2026, approximately 14 % of our outstanding commercial loans receivable principal balance was concentrated in Arizona, 12 % in each of California and New York, and 11 % in North Carolina. No other state had concentrations in excess of 10% of the principal balance of the commercial loans receivable as of June 27, September 26, 2026 or March 28, 2026.

We had concentrations with one independent third-party and its affiliates that equaled 8 5 % and 12 % of the net commercial loans receivable principal balance outstanding, all of which was secured, as of June 27, September 26, 2026 and March 28, 2026, respectively. The risks created by these concentrations have been considered in the determination of the adequacy of the allowance for loan losses.

Note 9: Goodwill and Other Intangibles, net 7 changes

1 unchanged paragraph

Goodwill $ 209,241 $ — $ 209,241 $ 208,841 $ — $ 208,841

June 27, September 26, 2026 March 28, 2026

Goodwill $ 211,667 $ — $ 211,667 $ 208,841 $ — $ 208,841

2 unchanged paragraphs

Customer relationships 28,300 ( 9,043 9,611 ) 19,257 18,689 28,300 ( 8,475 ) 19,825

Changes to Goodwill for the three six months ended June 27, September 26, 2026 were due to an immaterial measurement period adjustment adjustments for the American Homestar acquisition. See Note 19, Acquisitions.

Amortization expense recognized on intangible assets for the three and six months ended June 27, September 26, 2026 was $ 0.6 million and $ 1.2 million, respectively. Amortization expense recognized on intangible assets for the three and six months ended June 28, September 27, 2025 was $ 0.4 million and $ 0.7 million, respectively. Customer relationships have a weighted average remaining life of 9.1 8.8 years and other finite lived intangibles have a weighted average remaining life of 0.4 0.2 years.

1 unchanged paragraph

Remainder of fiscal year 2027 $ 1,810 1,206

Note 10: Accrued Expenses and Other Current Liabilities 10 changes

1 unchanged paragraph

Customer deposits $ 72,957 $ 54,128

Estimated warranties 43,322 40,818

Accrued insurance 14,694 13,709

Insurance loss reserves 10,848 9,778

Customer deposits $ 87,295 $ 54,128

Salaries, wages and benefits 49,948 54,182 49,819

Estimated warranties 45,544 40,818

Unearned insurance premiums 34,378 33,704 33,498

Accrued volume rebates 27,589 28,961 25,159

Accrued insurance 15,665 13,709

Note 11: Warranties 7 changes

1 unchanged paragraph

Charged to costs and expenses 20,284 16,625

Payments and deductions ( 17,780 ) ( 15,431 )

Three Months Ended Six Months Ended

Balance at beginning of period $ 43,322 $ 34,383 $ 40,818 $ 33,189

Charged to costs and expenses 21,421 17,023 41,705 33,648

Payments and deductions ( 19,199 ) ( 15,829 ) ( 36,979 ) ( 31,260 )

Balance at end of period $ 43,322 45,544 $ 34,383 35,577 $ 45,544 $ 35,577

Note 12: Other Liabilities 3 changes

1 unchanged paragraph

Finance lease liabilities $ 6,048 6,049 $ 6,046

Other secured financing 1,320 1,242 1,388

Less current portion included in Accrued expenses and other current liabilities ( 396 314 ) ( 338 )

Note 13: Debt 1 change

2 unchanged paragraphs

As of June 27, September 26, 2026 and March 28, 2026, there were no borrowings outstanding under the Revolving Credit Facility and we were in compliance compliant with all the covenants.

Note 14: Reinsurance and Insurance Loss Reserves 13 changes

2 unchanged paragraphs

June 27, 2026 June 28, 2025

September 26, 2026 September 27, 2025

3 unchanged paragraphs

September 26, 2026 September 27, 2025

Written Earned Written Earned

Assumed premiums—nonaffiliated

Ceded premiums—nonaffiliated

1 unchanged paragraph

Net incurred losses during the period 10,218 11,103

The following details the activity in the incurred but not reported reserve for the three and six months ended June 27, September 26, 2026 a nd June 28, September 27, 2025 (in thousands):

Three Months Ended Six Months Ended

Balance at beginning of period $ 10,848 $ 13,118 $ 9,778 $ 16,201

Net incurred losses during the period 8,014 7,782 18,232 18,885

Net claim payments during the period ( 9,148 9,379 ) ( 14,186 10,640 ) ( 18,527 ) ( 24,826 )

Balance at end of period $ 10,848 9,483 $ 13,118 10,260 $ 9,483 $ 10,260

Note 15: Commitments and Contingencies 6 changes

Repurchase Contingencies . The maximum amount for which the Company was liable under the terms of repurchase agreements with financial institutions that provide inventory financing to independent distributors of our products approxim ated approximated $ 134 135 million and $ 141 million at June 27, September 26, 2026 and March 28, 2026, respectively, without reduction for the estimated resale value of the home s. Our reserve for repurchase commitments, recorded re corded in Accrued expenses and other current liabilities, was $ 7.8 3.4 million at June 27, September 26, 2026 and $ 3.9 million at March 28, 2026.

1 unchanged paragraph

Construction loan contract amount $ 4,239 4,889 $ 4,429

Cumulative advances ( 1,668 1,667 ) ( 2,245 )

Representations and Warranties of Mortgages Sold . The reserve for contingent repurchases and indemnification obliga tions was $ 0.5 million as of June 27, September 26, 2026 and March 28, 2026, which is included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. There were no claim requests that resulted in the repurchase of any loans during the three six months ended June 27, September 26, 2026 or June 28, September 27, 2025 .

Interest Rate Lock Commitments ("IRLCs") . As of June 27, September 26, 2026 and March 28, 2026, w e had outstanding IRLCs with a notional amount of $ 83.0 82.9 million and $ 71.6 million, respectively. For the three and six months ended June 27, September 26, 2026 and we recognized insignificant non-cash gains on outstanding IRLCs. For the three and six months ended June 28, September 27, 2025, we recognized insignificant non-cash gains on outstanding IRLCs.

Forward Sales Commitments. As of June 27, September 26, 2026 and March 28, 2026, we had $ 4.7 5.5 million and $ 6.4 million in outstanding forward sales commitments for sales of mortgage backed securities and whole loan commitments (collectively, the "Commitments"), respectively. During For the three and six months ended June 27, September 26, 2026, we recognized insignificant non-cash losses gains on Commitments. During For the three and six months ended June 28, September 27, 2025, we recognized insignificant non-cash gains on Commitments.

1 unchanged paragraph

Note 16: Stockholders' Equity 13 changes

The following tables represent changes in Stockholders' equity during the three six months ended June 27, September 26, 2026 and June 28, September 27, 2025, respectively (dollars in thousands):

8 unchanged paragraphs

Net income — — — — 55,439 — 55,439

Other comprehensive loss, net — — — — — ( 1,238 ) ( 1,238 )

Net issuance of common stock under stock incentive plans 4,488 — — ( 793 ) — — ( 793 )

Stock-based compensation — — — 3,052 — — 3,052

Common stock repurchases — — ( 29,853 ) — — — ( 29,853 )

Balance, September 26, 2026 9,509,421 $ 95 $ ( 646,225 ) $ 298,032 $ 1,486,424 $ ( 1,323 ) $ 1,137,003

8 unchanged paragraphs

Net income — — — — 52,381 — 52,381

Other comprehensive income, net — — — — — 114 114

Net issuance of common stock under stock incentive plans 17,457 — — 1,633 — — 1,633

Stock-based compensation — — — 3,530 — — 3,530

Common stock repurchases — — ( 36,354 ) — — — ( 36,354 )

Balance, September 27, 2025 9,470,820 $ 95 $ ( 511,347 ) $ 294,984 $ 1,302,186 $ 219 $ 1,086,137

Note 17: Earnings Per Share 13 changes

1 unchanged paragraph

Net income $ 42,271 $ 51,642

Three Months Ended Six Months Ended

Net income $ 55,439 $ 52,381 $ 97,710 $ 104,023

1 unchanged paragraph

Basic 7,707,952 7,953,720

Effect of dilutive securities 76,472 87,288

Diluted 7,784,424 8,041,008

Basic 7,679,380 7,909,326 7,693,552 7,931,589

Effect of dilutive securities 55,397 83,419 66,613 93,131

Diluted 7,734,777 7,992,745 7,760,165 8,024,720

1 unchanged paragraph

Diluted $ 5.43 $ 6.42

Basic $ 7.22 $ 6.62 $ 12.70 $ 13.12

Diluted $ 7.17 $ 6.55 $ 12.59 $ 12.96

Anti-dilutive common stock equivalents excluded — 602 — 21 264

Note 18: Fair Value Measurements 9 changes

1 unchanged paragraph

June 27, September 26, 2026 March 28, 2026

3 unchanged paragraphs

Consumer loans receivable 36,194 37,284 37,187 40,308 38,181 43,264

1 unchanged paragraph

Other secured financing ( 1,320 1,242 ) ( 1,303 1,198 ) ( 1,388 ) ( 1,376 )

2 unchanged paragraphs

Number of loans serviced with MSRs 3,436 3,381 3,487

Weighted average servicing fee (basis points) 33.74 33.64 33.83

Capitalized servicing multiple 188.03 200.95 % 176.44 %

Capitalized servicing rate (basis points) 63.44 67.60 59.69

Serviced portfolio with MSRs (in thousands) $ 425,370 416,790 $ 432,632

MSRs (in thousands) $ 2,698 2,817 $ 2,583

Note 19: Acquisitions 10 changes

2 unchanged paragraphs

The following table presents the fair values of the assets that we acquired and the liabilities that we assumed as of the Acquisition Date (in thousands). The purchase accounting is provisional and certain estimated fair values for Accrued liabilities and Deferred tax liability are not yet finalized and are subject to change, which could be significant. We will finalize the amounts recognized as we obtain the information necessary to complete the analysis. We expect to finalize these amounts as soon as possible but no later than one year from the Acquisition Date ("Measurement Period"). We have made certain Measurement Period adjustments to the assets and liabilities based on information that became available :

The following table presents the fair values of the assets that we acquired and the liabilities that we assumed as of the Acquisition Date (in thousands). During the second fiscal quarter of 2026, we finalized the purchase price allocation which did not have a material effect on the Consolidated Financial Statements :

2025 Measurement Period Adjustments September 29, 2025

8 unchanged paragraphs

Accounts payable and accrued liabilities ( 16,757 ) 825 ( 15,932 1,635 ) ( 18,392 )

2 unchanged paragraphs

Total Net identifiable assets acquired 94,096 ( 100 2,560 ) 93,996 91,536

5 unchanged paragraphs

Net revenue $ 610,311

Three Months Ended Six Months Ended

Net revenue $ 603,345 $ 1,213,657

Net income $ 54,360 $ 110,756

Diluted net income per share 7.01 $ 6.80 $ 13.80

Note 20: Business Segment Information 99 changes

1 unchanged paragraph

Three Months Ended June 27, 2026

Three Months Ended September 26, 2026

1 unchanged paragraph

Net revenue $ 585,972 $ 23,987 $ 609,959

Cost of sales 463,953 11,416 475,369

Gross profit 122,019 12,571 134,590

Selling, general and administrative expenses 73,970 7,865 81,835

Income from operations 48,049 4,706 52,755

Interest expense ( 132 ) — ( 132 )

Other expense, net ( 98 ) — ( 98 )

Income before income taxes 51,082 4,706 55,788

Income tax expense ( 12,517 ) ( 1,000 ) ( 13,517 )

Net Income $ 38,565 $ 3,706 $ 42,271

Three Months Ended June 27, 2026

Net revenue $ 633,736 $ 22,642 $ 656,378

Cost of sales 499,761 9,005 508,766

Gross profit 133,975 13,637 147,612

Selling, general and administrative expenses 69,625 8,085 77,710

Income from operations 64,350 5,552 69,902

Interest income 3,263 3,595 — 3,263 3,595

Interest expense ( 282 ) — ( 282 )

Other income, net 136 — 136

Income before income taxes 67,799 5,552 73,351

Income tax expense ( 16,969 ) ( 943 ) ( 17,912 )

Net income $ 50,830 $ 4,609 $ 55,439

Six Months Ended September 26, 2026

1 unchanged paragraph

Depreciation $ 6,040 $ 46 $ 6,086

Amortization $ 603 $ 2 $ 605

Capital expenditures $ 25,393 $ 100 $ 25,493

Three Months Ended June 28, 2025

Net revenue $ 1,219,708 $ 46,629 $ 1,266,337

Cost of sales 963,714 20,421 984,135

Gross profit 255,994 26,208 282,202

Selling, general and administrative expenses 143,595 15,950 159,545

Income from operations 112,399 10,258 122,657

Interest income 6,858 — 6,858

Interest expense ( 414 ) — ( 414 )

Other income, net 38 — 38

Income before income taxes 118,881 10,258 129,139

Income tax expense ( 29,486 ) ( 1,943 ) ( 31,429 )

Net income $ 89,395 $ 8,315 $ 97,710

Three Months Ended September 26, 2026

1 unchanged paragraph

Net revenue $ 535,694 $ 21,163 $ 556,857

Cost of sales 414,850 12,501 427,351

Gross profit 120,844 8,662 129,506

Selling, general and administrative expenses 63,154 5,994 69,148

Income from operations 57,690 2,668 60,358

Interest income 5,103 — 5,103

Interest expense ( 164 ) — ( 164 )

Income before income taxes 62,629 2,668 65,297

Income tax expense ( 13,128 ) ( 527 ) ( 13,655 )

Net Income $ 49,501 $ 2,141 $ 51,642

Three Months Ended June 28, 2025

Depreciation $ 6,230 $ 52 $ 6,282

Amortization $ 603 $ — $ 603

Capital expenditures $ 29,704 $ — $ 29,704

Six Months Ended September 26, 2026

1 unchanged paragraph

Depreciation $ 4,735 $ 62 $ 4,797

Depreciation $ 12,270 $ 98 $ 12,368

Amortization $ 1,206 $ 2 $ 1,208

Capital expenditures $ 55,097 $ 100 $ 55,197

Three Months Ended September 27, 2025

Factory-built housing Financial services Consolidated

Net revenue $ 535,117 $ 21,410 $ 556,527

Cost of sales 412,623 9,497 422,120

Gross profit 122,494 11,913 134,407

Selling, general and administrative expenses 65,757 6,472 72,229

Income from operations 56,737 5,441 62,178

Interest income 5,046 — 5,046

Interest expense ( 112 ) — ( 112 )

Other income, net 142 — 142

Income before income taxes 61,813 5,441 67,254

Income tax expense ( 13,661 ) ( 1,212 ) ( 14,873 )

Net income $ 48,152 $ 4,229 $ 52,381

Six Months Ended September 27, 2025

Factory-built housing Financial services Consolidated

Net revenue $ 1,070,811 $ 42,573 $ 1,113,384

Cost of sales 827,473 21,998 849,471

Gross profit 243,338 20,575 263,913

Selling, general and administrative expenses 128,911 12,466 141,377

Income from operations 114,427 8,109 122,536

1 unchanged paragraph

and 19 more changes in the filing

Forward-looking statements 94 changes

2 unchanged paragraphs

The following should be read in conjunction with the Company's unaudited Consolidated Financial Statements and the related Notes that appear in Part I, Item 1 of this Report. References to "Note" or "Notes" pertain to the Notes to our unaudited Consolidated Financial Statements, unless otherwise noted.

3 unchanged paragraphs

According to data reported by the Manufactured Housing Institute, industry home shipments for the calendar year through May August 2026 were 41,453, 67,792, a decrease of 7.7% 4.2% compared to 44,927 70,757 shipments in the same calendar period last year. The manufactured h ousing industry offers solutions to the housing crisis with lower average price per square foot than a site-built home and the comparatively lower cost associated with manufactured home ownership, which remains competitive with rental housing.

3 unchanged paragraphs

We continue to make certain commercial loan programs available to members of our wholesale distribution chain. Under direct commercial loan arrangements, we provide funds for financed home purchases by distributors, community operators and residential developers (see Note 8, Commercial Loans Receivable). to the unaudited Consolidated Financial Statements included in this report). Our involvement in commercial lending helps to increase the availability of manufactured home financing to distributors, community operators and residential developers and provides additional opportunities for product exposure to potential home buyers. While these initiatives support our ongoing efforts to expand product distribution, they also expose us to risks associated with the creditworthiness of this customer base and our inventory financing partners.

2 unchanged paragraphs

Our backlog at June 27, September 26, 2026 was $298 $348 million compared to $195 million at March 28, 2026, an increase of $103 $153 million, and up $98 $138 million compared to $200 $210 million at June 28, September 27, 2025.

2 unchanged paragraphs

Factory-built housing $ 585,972 $ 535,694 $ 50,278 9.4 %

Financial services 23,987 21,163 2,824 13.3 %

($ in thousands, except revenue per home sold) June 27, September 26,

Factory-built housing $ 633,736 $ 535,117 $ 98,619 18.4 %

Financial services 22,642 21,410 1,232 5.8 %

1 unchanged paragraph

by Company-owned retail sales centers 1,378 1,023 355 34.7 1,394 1,187 207 17.4 % to independent retailers, builders, communities and developers 4,279 4,393 (114) (2.6) 4,578 3,991 587 14.7 %

Net factory-built housing revenue per home sold $ 106,118 $ 103,344 $ 2,774 2.7 % ($ in thousands, except revenue per home sold) September 26,

Factory-built housing $ 1,219,708 $ 1,070,811 $ 148,897 13.9 %

Financial services 46,629 42,573 4,056 9.5 %

Factory-built homes sold

by Company-owned retail sales centers 2,772 2,210 562 25.4 % to independent retailers, builders, communities and developers 8,857 8,384 473 5.6 %

Net factory-built housing revenue per home sold $ 103,584 104,885 $ 98,910 101,077 $ 4,674 4.7 3,808 3.8 %

Factory-built housing Net revenue increased for the three and six months ended June 27, September 26, 2026 primarily due to the acquisition of American Homestar which contributed $52.8 $68.9 million This was partially offset by reduced sales volume and $121.8 million, respectively. Net revenue excluding American Homestar increased for the three months ended September 26, 2026 primarily due to higher sales volume, and for both periods due to higher Net factory-built housing revenue per home sold.

1 unchanged paragraph

For the three months ended June 27, 2026, Financial services Net revenue increased primarily due to i ncreased loan sales in the mortgage division and unrealized gains on the Financial services equity portfolio.

($ in thousands) June 27,

Factory-built housing $ 122,019 $ 120,845 $ 1,174 1.0 %

Financial services 12,571 8,661 3,910 45.1 %

For the three and six months ended September 26, 2026, Financial services Net revenue increased primarily due to increased loan sale volume and increased retained insurance premium net of reinsurance payments.

($ in thousands) September 26,

Factory-built housing $ 133,975 $ 122,493 $ 11,482 9.4 %

Financial services 13,637 11,914 1,723 14.5 %

1 unchanged paragraph

Consolidated 22.1 % 23.3 % N/A (1.2) %

Financial services 52.4 % 40.9 % N/A 11.5 %

Financial services Gross profit in dollars and as a percentage of Financial services Net revenue for the three months increased due to primarily lower claims loss, increased loan sales, and unrealized gains on the Financial services equity portfolio.

Consolidated 22.5 % 24.2 % N/A (1.7) %

Factory-built housing 20.8 21.1 % 22.6 22.9 % N/A (1.8) %

Financial services 60.2 % 55.6 % N/A 4.6 %

($ in thousands) September 26,

Factory-built housing $ 255,994 $ 243,338 $ 12,656 5.2 %

Financial services 26,208 20,575 5,633 27.4 %

Gross profit as % of Net revenue

Consolidated 22.3 % 23.7 % N/A (1.4) %

Factory-built housing 21.0 % 22.7 % N/A (1.7) %

Financial services 56.2 % 48.3 % N/A 7.9 %

Factory-built housing Gross profit for the three and six months ended June 27, September 26, 2026 increased due to higher sales volume and an increase in Net revenue per home sales volume and price. sold. Gross profit as a percentage of Net revenue for the three months decreased for both periods due to higher input costs.

Financial services Gross profit in dollars and as a percentage of Financial services Net revenue for the three and six months ended September 26, 2026 increased primarily due to loan sales volume, higher retained insurance premium net of reinsurance premium and lower commissions on insurance policies written.

1 unchanged paragraph

($ in thousands) June 27,

Factory-built housing $ 73,970 $ 63,154 $ 10,816 17.1 %

Financial services 7,865 5,994 1,871 31.2 %

Factory-built housing Selling, general and administrative expenses increased for the three months ended June 27, 2026 primarily due to the acquisition of American Homestar which added $7.3 million. Additionally, the first quarter of fiscal year 2027 saw increases in compensation and employee related expenses, as well as sales and marketing expense.

Financial services Selling, general and administrative expenses for the three months increased primarily due to a headcount increase to handle increased loan activity due to a forward flow agreement signed in the fourth quarter of the prior year and higher incentive compensation on better results.

($ in thousands) September 26,

Factory-built housing $ 69,625 $ 65,757 $ 3,868 5.9 %

Financial services 8,085 6,472 1,613 24.9 %

Selling, general and administrative expenses as % of Net revenue 13.4 11.8 % 12.4 13.0 % N/A 1.0 (1.2) % ($ in thousands) September 26,

Factory-built housing $ 143,595 $ 128,911 $ 14,684 11.4 %

Financial services 15,950 12,466 3,484 27.9 %

Selling, general and administrative expenses as % of Net revenue 12.6 % 12.7 % N/A (0.1) %

Factory-built housing Selling, general and administrative expenses increased for the three and six months ended September 26, 2026 primarily as a result of the addition of American Homestar which added $8.7 million and $16.1 million, respectively. Additionally, both periods in fiscal 2027 saw increases in compensation and employee-related expenses. These increases were partially offset by a one-time $7 million benefit from a return of insurance premium related to additional director & officer insurance purchased in 2019.

Financial services Selling, general and administrative expenses for the three and six months ended September 26, 2026 increased primarily due to increases in compensation year over year.

1 unchanged paragraph

($ in thousands) June 27,

Interest income $ 3,263 $ 5,103 $ (1,840) (36.1) %

Interest expense (132) (164) (32) (19.5) %

Other expense, net (98) — 98 NM

Income tax expense (13,517) (13,655) (138) (1.0) %

Effective tax rate 24.2 % 20.9 % N/A 3.3 %

($ in thousands) September 26,

Interest income $ 3,595 $ 5,046 $ (1,451) (28.8) %

Interest expense (282) (112) 170 151.8 %

Other income, net 136 142 (6) 4.2 %

Income tax expense (17,912) (14,873) 3,039 20.4 %

Effective tax rate 24.4 % 22.1 % N/A 2.3 %

($ in thousands) September 26,

Interest income $ 6,858 $ 10,149 $ (3,291) (32.4) %

Interest expense (414) (276) 138 50.0 %

Other income, net 38 142 (104) 73.2 %

Income tax expense (31,429) (28,528) 2,901 10.2 %

Effective tax rate 24.3 % 21.5 % N/A 2.8 %

Interest income consists primarily of interest earned on cash balances held in money market accounts and interest earned on commercial floorplan lending. Interest income was lower in both periods due to reduced cash balances following the cash purchase of American Homestar in the third quarter of fiscal 2026. Interest expense consists primarily of interest related to finance leases.

Other expense, income, net primarily consists of realized and unrealized gains and losses on corporate investments and gains and losses from the sale of property, plant and equipment.

The effective tax rate increased compared to the prior year period primarily due to a reduction in expected Energy Star tax credits. As a result of the passage of the One Big Beautiful Bill Act, the Energy Star tax credit was repealed for homes acquired after effective June 30, 2026. Consequently, fewer of our homes are expected to qualify for the credit compared to the prior year, reducing the amount of tax credits anticipated to be received during fiscal 2027 and increasing our expected annual effective tax rate.

1 unchanged paragraph

We believe that cash and cash equivalents at June 27, September 26, 2026, together with cash flow from operations, will be sufficient to fund our operations, cover our obligations and provide for growth for the next 12 months and into the foreseeable future. We maintain cash in U.S. Treasury and other money market funds, some of which is in excess of federally insured limits, but we have not experienced any losses with regards to such excesses. We expect to continue to evaluate potential acquisitions of, or strategic investments in, businesses that are complementary to the Company, as well as other expansion opportunities. Such transactions may require the use of cash and have other impacts on our liquidity and capital resources. We have sufficient liquid resources including our $75.0 million Revolving Credit Facility, of which no amounts were outstanding at June 27, September 26, 2026. The Revolving Credit Facility is part of the Credit Agreement which includes the following financial covenants: (i) as of the end of any fiscal quarter, the Consolidated Total Leverage Ratio (as defined in the Credit Agreement) cannot exceed 3.25 to 1.00 and (ii) a requirement to maintain Consolidated EBITDA (as defined in the Credit Agreement) for any period of four fiscal quarters of at least $75 million. The Credit Agreement also contains customary representations and warranties, and affirmative and negative covenants. The Company anticipates compliance with its debt covenants and projects its level of cash availability to be in excess of cash needed to operate the business for the next year. Depending on our operating results and strategic opportunities, we may choose to seek additional or alternative sources of financing in the future. There can be no assurance that such financing would be available on satisfactory terms, if at all. If this financing were not available, it could be necessary for us to reevaluate our long-term operating plans to make more efficient use of our existing capital resources at such time. The exact nature of any changes to our plans that would be considered depends on various factors, such as conditions in the factory-built housing industry and general economic conditions outside of our control.

1 unchanged paragraph

(in thousands) June 27,

The following is a summary of the Company's cash flows for the three six months ended June 27, September 26, 2026 and June 28, September 27, 2025, respectively:

(in thousands) September 26,

1 unchanged paragraph

Net cash provided by operating activities 74,452 55,523 18,929

2 unchanged paragraphs

and 14 more changes in the filing

Market risk 1 change

There have been no material changes from the quantitative and qualitative disclosures about market risk previously disclosed in Part II, Item 7a of the Form 10-K.

Controls and procedures 2 changes

1 unchanged paragraph

The Company carried out an evaluation, under the supervision and with the participation of the Company's management, including its President and Chief Executive Officer and its Chief Financial Officer, of the effectiveness of its disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, the Company's President and Chief Executive Officer and its Chief Financial Officer concluded that, as of June 27, September 26, 2026, its disclosure controls and procedures were effective.

1 unchanged paragraph

There has been no change in the Company's internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the fiscal quarter ended June 27, September 26, 2026 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

Legal proceedings 1 change

See the information under the "Legal Matters" caption in Note 15, Commitments and Contingencies to the unaudited Consolidated Financial Statements, included in this report, which is incorporated herein by reference.

Unregistered sales of stock 8 changes

1 unchanged paragraph

The Board approved $150 million for the stock repurchase program as announced on May 22, 2025, and another $150 million as announced on May 21, 2026. The repurchase program is funded using our available cash. The repurchases may be made in the open market or in privately negotiated transactions in compliance with applicable state and federal securities laws and other legal requirements. The level of repurchase activity is subject to market conditions, applicable legal requirements and other strategic capital needs and opportunities. The repurchase program does not obligate us to acquire any particular amount of common stock and may be suspended or discontinued at any time. The following table sets forth repurchases of our common stock during the first second quarter of fiscal year 2027:

1 unchanged paragraph

May 3, 2026 to May 30, 2026

May 31, 2026 to June 27, 2026

Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands) )1

June 28, 2026 to August 1, 2026

March 29, August 2, 2026 to May 2, August 29, 2026

August 30, 2026 to September 26, 2026

1 unchanged paragraph

and 1 more change in the filing

Other information 1 change

1 unchanged paragraph

and 1 more change in the filing

Exhibits 2 changes

13 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

and 2 more changes in the filing