Cavco Industries Inc. reported fiscal third‑quarter results for the quarter ended December 27, 2025, with net income of $44.1 million and earnings per share of $5.58. The company’s earnings release, issued on January 29, 2026, also highlighted the integration of its September 29, 2025 acquisition of American Homestar Corporation, which added two manufacturing lines, nineteen retail locations and a financial services operation to Cavco’s consolidated statements.
Revenue for the quarter reached $581 million, falling short of the consensus estimate of $593.37 million. The figure represents an 11.3% year‑over‑year increase from $522 million in the same quarter of 2024, but the miss reflects softer demand in the core factory‑built housing segment and a decline in pricing power. Analysts had expected revenue of $593.37 million, so the $12.37 million shortfall is a miss of roughly 2.1% relative to consensus.
Net income of $44.1 million was a 22.0% decline from $57.5 million in the prior year’s third quarter, and earnings per share of $5.58 fell 19.1% from $6.90. The EPS miss of $0.32 (about 5.0% below consensus of $6.26–$6.39) was driven by lower revenue, margin compression in the factory‑built housing segment, and incremental SG&A and deal costs associated with the Homestar acquisition. The company’s diluted shares outstanding increased to 7.9 million, amplifying the EPS impact.
Segment analysis shows the factory‑built housing gross profit margin contracted to 21.7% from 23.6% in the prior year, indicating pricing pressure and higher input costs. In contrast, the financial services gross margin improved to 65.2% from 55.5%, reflecting stronger fee‑based income and lower operating expenses. The Homestar acquisition contributed $42 million to revenue and 343 homes sold, but added $6.9 million in incremental SG&A and $2.9 million in deal costs, partially offsetting the revenue lift.
Operationally, capacity utilization in Cavco’s factories fell to about 70% from 75% year‑over‑year, suggesting a slowdown in demand. The company ended the quarter with a backlog of $160 million, representing roughly 4–6 weeks of production. Cavco repurchased approximately $44 million of its stock during the quarter. President and CEO Bill Boor noted that industry shipments slowed, with HUD shipments at a significantly lower pace in October and November, and that the company maintained a steady daily production pace by leveraging the backlog and additional days over the holidays.
Market reaction to the earnings was negative, with the stock falling roughly 4% to 4.5% in after‑hours trading. The decline was driven by the dual miss on revenue and EPS, the compression of the factory‑built housing gross margin, and the drop in capacity utilization, all of them signaling weaker demand and pricing challenges for the core business.
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