Cavco Industries reported record revenue and home sales volume for its fiscal second quarter, as higher shipments and a modest increase in revenue per home lifted sales. Pre-tax income rose more slowly than revenue, however, while factory-built housing margins declined. Reported earnings per share also included a one-time insurance-premium benefit.
The quarter ended September 26, 2026. Cavco also reported a larger backlog, about $30 million in share repurchases and early orders and shipments for workforce housing tied to data centers.
Key details
- Revenue rose 17.9% to $656.4 million, from $556.5 million a year earlier. Factory-built housing revenue increased 18.4% to $633.7 million; financial-services revenue grew 5.8% to $22.6 million.
- Cavco sold 5,972 factory-built homes, up 15.3% from 5,178 a year earlier. It sold 9,794 factory-built modules, up 12.6%. Revenue per home sold increased 2.7% to $106,118.
- Factory-built housing gross margin fell to 21.1% from 22.9%. Cavco cited continuing materials inflation, while saying selling-price increases exceeded cost pressures during the quarter and helped produce a small sequential improvement in gross margin.
- Financial-services gross margin improved to 60.2% from 55.6%.
- Pre-tax income increased 9.1% to $73 million, compared with $67 million a year earlier. Diluted earnings per share rose 9% to $7.17 from $6.55.
- Selling, general and administrative expenses included a one-time $7 million benefit from an insurance-premium return, which added $0.70 to diluted earnings per share. The reported per-share increase therefore includes that nonrecurring benefit.
- Backlog reached $348 million, up $50 million from the end of the prior quarter and representing about eight to 10 weeks of production. Cavco said orders were lower than in the preceding quarter but remained healthy; capacity utilization was approximately 75%, unchanged year over year.
- Cavco repurchased about $30 million of shares during the quarter. It had $158 million remaining under existing board-authorized repurchase programs at quarter-end.
- The company said it began seeing orders and shipments for data-center workforce housing, which contributed to its backlog.
- Cavco also showcased its Grande Arbor, described as its first off-chassis home built to federal HUD standards, at a housing event in Washington. CEO Bill Boor said policy initiatives supporting factory-built housing could create opportunities for the sector.
What the results show
Sales growth was driven mainly by more homes sold, with a smaller contribution from higher revenue per home. The slower increase in pre-tax income than in revenue reflects pressure on factory-built housing margins; the one-time insurance benefit also boosted reported earnings per share. The larger backlog provides a measure of near-term production demand, while Cavco said it can adjust output during the seasonally slower winter months.