Sign in
CI

CAVCO INDUSTRIES, INC. (CVCO)·Q1 2026 Earnings Summary

Executive Summary

  • Cavco delivered a strong Q1 FY2026: revenue $556.9M (+16.6% YoY) and diluted EPS $6.42 (+56% YoY), driven by higher home shipments and a turnaround in financial services insurance profitability .
  • Results beat Wall Street consensus: revenue $556.9M vs $525.0M*, EPS $6.42 vs $5.55*; modest estimate breadth (3 estimates), suggesting potential upward revisions on stronger ASP and volume. Values retrieved from S&P Global.
  • Consolidated gross margin improved 160 bps YoY to 23.3%; factory-built margin held at 22.6%, while financial services margin rebounded to 40.9% from -0.6% YoY .
  • Backlog was stable at ~$200M (5–7 weeks), supporting management’s decision to lean into higher production; share buybacks continued ($50M in Q1; $178M authorization remaining) .

What Went Well and What Went Wrong

What Went Well

  • Volume and pricing: Homes sold up 14.7% YoY; revenue per home sold up 1.9%; average selling prices increased for both single- and multi-section homes, with CEO noting “true price appreciation” this quarter .
  • Financial services rebound: Insurance gross margin swung to 40.9% from -0.6% on fewer storm losses and improved underwriting/pricing .
  • Execution and capital allocation: Record 5,416 homes shipped; stable backlog; $50M repurchases; definitive agreement to acquire American Homestar for ~$190M cash, expected to close early Q3 FY2026 .

Selected management quote: “This quarter rewarded those decisions with higher shipments and stable quarter-to-quarter consolidated backlog. Financial Services also contributed to the strong results.” — Bill Boor, CEO .

What Went Wrong

  • Geographic softness: Southeast lagged; Florida real estate remains challenging, prompting caution on sustaining increased production levels plant-by-plant .
  • Factory margin flat YoY despite higher throughput, reflecting mix and early tariff cost impact (~$0.7M in Q1 COGS), with higher tariff headwinds likely in coming quarters .
  • Loan sales and policies: Financial Services revenue increase was partly offset by fewer loan sales and policies in force; interest income ticked down vs prior quarter .

Financial Results

MetricQ3 2025Q4 2025Q1 2026
Revenue ($USD Millions)$522.04 $508.36 $556.86
Diluted EPS ($)$6.90 $4.47 $6.42
Consolidated Gross Margin (%)24.9% 22.8% 23.3%
Factory-built Housing Gross Margin (%)23.6% 22.3% 22.6%
Financial Services Gross Margin (%)55.5% 36.8% 40.9%
Segment Net Revenue ($USD Thousands)Q3 2025Q4 2025Q1 2026
Factory-built Housing$500,860 $487,860 $535,694
Financial Services$21,180 $20,498 $21,163
Total$522,040 $508,358 $556,857
KPIsQ3 2025Q4 2025Q1 2026
Factory-built Modules Sold8,378 8,260 8,900
Factory-built Homes Sold5,059 5,060 5,416
Net Revenue per Home Sold ($)$99,004 $96,415 $98,910
Backlog ($USD Millions)$224 $197 $200
Factory Utilization (%)~75% N/A~75%
Actual vs ConsensusQ3 2025Q4 2025Q1 2026
Revenue Actual ($USD)$522.04M $508.36M $556.86M
Revenue Consensus ($USD)$480.31M*$504.15M*$525.0M*
EPS Actual ($)$6.90 $4.47 $6.42
EPS Consensus ($)$4.89*$4.87*$5.55*

Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Formal Revenue/EPS GuidanceFY2026NoneNone; management does not provide formal guidanceMaintained
Tariff Impact (COGS)Near-term quartersN/AEstimated $2–$5.5M per quarter if fully implemented*New disclosure
American Homestar CloseQ3 FY2026N/AExpected early Q3; ~$190M cash considerationNew transaction timing
Share Repurchase AuthorizationOngoingN/A$178M remaining authorizationMaintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2025, Q4 2025)Current Period (Q1 2026)Trend
Average Selling Price / MixASP down due to mix; strong shipments ASP increased for single- and multi-section; mix shifted to multi-section Improving pricing
Production & BacklogRamped production using backlogs ; held production through weather in Q4 Record shipments; backlog stable at $200M; ~75% utilization Stable backlog; higher throughput
Financial Services InsuranceStrong recovery in Q3 Margin 40.9% on fewer claims and better underwriting/pricing Sustained rebound; weather-dependent
Tariffs/Input CostsNot highlighted~$0.7M Q1 COGS impact; potential $2–$5.5M per quarter ahead; lumber/OSB low and stable Building headwind risk
Regional TrendsNot specifiedSoutheast lagged; Florida still weak Mixed; monitoring SE plants
RegulatoryNot specifiedSenate bill includes chassis removal; could enable product innovation and urban penetration Constructive policy signals
Brand/ERPBrand unification; $10M non-cash charge in Q4 ERP upgrade and branding cited as execution achievements Post-implementation benefits

Management Commentary

  • Strategy & pricing: “We saw true price appreciation this quarter after a very long run of very modest declines… both [single- and multi-section] moved up… after correcting for product mix and the proportion sold through our retail stores.” — Bill Boor (CEO) .
  • Tariffs and costs: “We estimate that the total impact in Q1 was about $700,000 of additional expense… If the currently proposed tariffs take effect, [impact] could reach between $2 million and $5.5 million a quarter.” — Allison Aden (CFO) .
  • Capital allocation: “We repurchased $50 million… leaving approximately $178 million under authorization… acquire American HomeStar… expected to utilize roughly $184 million in cash.” — Allison Aden (CFO) .
  • Execution: “Executing this plan resulted in a record of 5,416 homes shipped this quarter… stable quarter-to-quarter consolidated backlog.” — Bill Boor (CEO) ; “Our operations really delivered the results” — closing remarks .

Q&A Highlights

  • Orders and regions: Orders improved; Southeast flat vs other regions, Florida remains challenging; potential to adjust production levels locally .
  • Pricing dynamics: Broad-based upward pricing across product types; limited price competition observed this quarter .
  • Tariff outlook: ~$0.7M Q1 impact; future quarters could see $2–$5.5M per quarter if tariffs are fully implemented; key components sourced from China (lighting, electrical, plumbing, windows/doors) .
  • Input costs: Lumber/OSB at low and stable levels; watch indices with 60–90 day lag into COGS .
  • Financing: Chattel rates steady at 8–9%; originations continue with intent to sell, retaining servicing; balance sheet remains OEM-focused .

Estimates Context

  • Q1 FY2026 beat: Revenue $556.9M vs $525.0M*, EPS $6.42 vs $5.55*; breadth: 3 estimates each. Values retrieved from S&P Global.
  • Prior quarters: Q3 FY2025 revenue $522.0M vs $480.3M*, EPS $6.90 vs $4.89*; Q4 FY2025 revenue $508.4M vs $504.2M*, EPS $4.47 vs $4.87*. Values retrieved from S&P Global.
  • Implications: Consensus likely to adjust upward for near-term quarters on improved pricing and volumes; watch for margin forecasting to reflect tariff headwinds and geographic mix .

Key Takeaways for Investors

  • Strong beat with broad-based operational execution: higher shipments, stable backlog, and pricing appreciation are supportive of continued top-line momentum .
  • Margin watch: Factory margin held flat YoY; tariff costs could pressure margins in coming quarters; financial services margin rebound adds resilience .
  • Regional monitoring: Southeast lag and Florida softness may require production adjustments; overall market indicators (HUD shipments) remain constructive .
  • Capital deployment: Ongoing buybacks ($178M authorization remaining) and American Homestar acquisition (closing early Q3) should enhance scale and drive synergies in Texas/South-Central markets .
  • Pricing power returning: Management observed true price appreciation across product categories; limited price competition this quarter .
  • Near-term trading setup: Positive narrative on ASP and insurance profitability; potential headline risks around tariff implementation and Southeast demand; watch policy news (chassis removal bill) for medium-term product innovation tailwinds .