Executive Summary

Q3 2025 revenue was $12.0M and diluted EPS $0.56, down year over year as retail unit volumes softened and mix shifted toward lower-margin dealer sales; gross margin compressed to ~32% from 33% YoY .
Versus Q2 2025, revenue fell from $14.8M to $12.0M and diluted EPS declined from $0.70 to $0.56 as retail volumes moderated and supply-chain delays persisted .
Balance sheet remained strong: $27.1M in cash, CDs, and short-term investments; working capital $44.8M; no debt; Board authorized up to 200,000 share buyback for FY 2026, a potential capital-return catalyst .
Management did not hold an earnings call; guidance remained qualitative, highlighting continued demand headwinds from higher mortgage rates, inflation in building products, and supply-chain/labor constraints extending into fiscal 2026 .

What Went Well and What Went Wrong

What Went Well

Liquidity and equity strength: cash, CDs, and short-term investments of $27.1M; working capital $44.8M; stockholders’ equity $58.7M; no debt .
Dealer channel growth partially offset retail softness; manufactured homes sold to independent dealers rose YoY for the nine months, albeit at lower margins .
Insurance commission revenue grew YoY in Q3 ($101,684 vs $88,703), evidencing ancillary resilience .

What Went Wrong

Top-line decline and margin compression: Q3 net sales fell to $12.0M from $13.8M YoY; gross margin slipped to ~32% from 33% driven by mix shift to dealer sales .
Retail volume softness: Q3 retail new homes sold decreased to 63 from 79 YoY; average retail price also eased ($154.3K vs $155.5K) .
Persistent macro and operational headwinds: higher interest rates dampening demand, supply delays/backorders, tariffs, labor shortages, and inflation in building products; management expects challenges to continue into fiscal 2026 .

Financial Results

Quarterly Trend (Q1 → Q2 → Q3 FY2025)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$12.242	$14.757	$12.021
Diluted EPS ($)	$0.60	$0.70	$0.56
Gross Profit Margin %	32.44%*	31.38%*	32.01%
EBIT Margin %	18.74%*	18.58%*	18.11%*

*Values retrieved from S&P Global.

Notes:

Q3 YoY: Revenue down 12.9% ($12.0M vs $13.8M), EPS down to $0.56 from $0.67; gross margin ~32.0% vs 33.0% .
Q3 QoQ: Revenue down from $14.8M, EPS down from $0.70 as retail volumes moderated and supply-chain delays persisted .

Q3 2025 vs Prior Year and Prior Quarter

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$13.803	$14.757	$12.021
Diluted EPS ($)	$0.67	$0.70	$0.56
Gross Profit Margin %	33.00%	31.38%*	32.01%

*Values retrieved from S&P Global.

Segment/Product Revenue Breakdown (Q3 2025 vs Q3 2024)

Category	Q3 2024 ($)	Q3 2025 ($)
Homes sold through Company-owned sales centers	$11,566,672	$9,748,377
Homes sold to independent dealers and parks (net)	$2,147,965	$2,171,133
Insurance agent commissions	$88,703	$101,684
Total Net Sales	$13,803,340	$12,021,194

KPIs (Units and Pricing, Q3 2025 vs Q3 2024)

KPI	Q3 2024	Q3 2025
New homes sold – Company-owned retail	79	63
Pre-owned homes sold – Company-owned retail	2	2
Homes sold to independent dealers	36	37
Total new factory-built homes produced	95	95
Avg retail new home price ($)	$155,540	$154,268
Avg wholesale new home price ($)	$69,683	$69,246

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Numerical revenue/EPS/margins guidance	FY2025	None provided	None provided	Maintained (no formal guidance)
Share repurchase authorization	FY2026	Not disclosed	Authorized up to 200,000 shares	New authorization
Dividend	FY2024 (declared Mar 14, 2025; paid Apr 14, 2025)	Prior practice: one-time annual	One-time cash dividend $1.25/share	Declared (capital return)

Management tone remains cautious due to macro headwinds and operational constraints; no quantified guidance ranges were issued .

Earnings Call Themes & Trends

Management did not hold an earnings call this quarter; themes are drawn from press releases and 10-Q MD&A.

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Demand/mortgage rates	Higher rates negatively impacting sales; retail delays and setup constraints	Demand slowed due to rates; FL shipments down ~11% (Nov’24–Apr’25)	Continued demand slowdown; FL shipments down ~12% (Nov’24–Jul’25)	Worsening/mixed
Supply chain & labor	Delays in key materials; backorders; labor shortages; inflation in building products	Ongoing delays, tariffs, labor shortages; inflation persists	Persistent delays/backorders; tariffs; labor shortages; inflation; expected into FY2026	Persistent headwinds
Sales mix (retail vs dealer)	Retail declines vs prior year; mix pressures margins	Dealer sales increased YoY; retail decreased; lower margins at dealer	Retail volumes down; dealer sales up with lower margins; gross margin compressed	Mix shift to dealer
Capital return	One-time dividend $1.25/share declared	Strong balance sheet reiterated	FY2026 buyback up to 200,000 shares authorized	Shareholder-friendly
Operations/production	Set-up/delivery timing issues affected sales/earnings	Production improved Q2 revenue; ongoing constraints	Production steady (95 homes), but retail units lower YoY	Stable production, softer retail

Management Commentary

“Total net sales decreased… due to a decrease in the number of new retail homes sold… partially offset by an increase in the number of homes sold to independent dealers… which have lower margins than retail sales.” – Terry Trexler, President .
“We believe that potential customers have delayed or deferred purchasing decisions when considering the higher interest rate environment and the uncertainty of the economy… delays in… key production materials… back orders, price increases, tariffs, and labor shortages… inflation in several building products… challenges will continue throughout fiscal year 2025 and into fiscal 2026.” .
“Maintaining our strong financial position is vital… Management remains convinced that our specific geographic market is one of the best long-term growth areas in the country.” .
Q2 reinforcement: “Sales increased 28%… however… retail homes sold decreased… higher interest rate environment… delays… inflation.” .
Q1 detail: “Net sales decreased… higher interest rates… delays… set-up process in the field… negatively impacted sales and earnings.” .

Q&A Highlights

No conference call was held; management invited direct investor inquiries via phone/email (Terry or Tom Trexler) .

Estimates Context

Wall Street consensus from S&P Global was unavailable for EPS and revenue (no consensus entries); thus estimate comparisons cannot be made for Q3 2025. Values retrieved from S&P Global.
Actual results: Revenue $12.0M; Diluted EPS $0.56 .

Key Takeaways for Investors

Near-term results reflect retail softness and mix shift toward dealer channel, compressing margins and EPS despite steady production; expect continued macro headwinds into FY2026 per management .
Liquidity and balance sheet strength provide flexibility: $27.1M in liquid assets, $44.8M working capital, no debt; supports buyback authorization and resilience through demand cycles .
Share repurchase authorization (up to 200,000 shares for FY2026) is a tangible capital-return lever that could support per-share metrics in a slower demand environment .
Florida manufactured housing shipments fell ~12% (Nov’24–Jul’25), indicating broader market headwinds; investors should monitor rates and affordability trends for signs of recovery .
Operational constraints (materials delays, labor shortages, tariffs, inflation) remain acute; watch gross margin trajectory and sales mix (retail vs dealer) for margin recovery signals .
Ancillary revenues (insurance commissions) showed YoY growth in Q3, offering some diversification amid core housing demand weakness .
No formal numerical guidance; with no call, rely on quarterly disclosures/10-Q updates for trajectory; buyback and strong liquidity mitigate downside risk while awaiting demand normalization .

NOBILITY HOMES INC (NOBH)·Q3 2025 Earnings Summary