Champion Homes Q1 Earnings Call Highlights

Champion Homes’ first-quarter fiscal 2027 results were resilient: Net sales rose 1.3% to $710.2 million and U.S. home shipments increased 1.8%, outperforming an approximately 5% decline in broader HUD industry shipments.

Backlog grew to $421.8 million from $302 million a year earlier, while manufacturing capacity utilization increased to 62%. Adjusted EBITDA was $73.6 million, with a 10.4% margin.

Management expects continued growth but sees affordability pressures: Second-quarter revenue is projected to rise by a mid-single-digit percentage, with adjusted gross margins of 25%–26%. The Homes Direct acquisition should be additive over time, while new rules allowing some HUD homes without permanent chassis are viewed as a long-term market opportunity rather than a near-term earnings driver.

Champion Homes reported first-quarter fiscal 2027 results that management said were in line with expectations, as sales growth, higher manufacturing utilization and an expanding order backlog helped the company outperform the broader manufactured-housing industry. For the quarter ended June 27, 2026, net sales increased 1.3% from a year earlier to $710.2 million. U.S. homes sold rose 1.8% to 7,089 units, while the company said HUD industry shipments declined about 5% year over year during the three months ended May 2026.

Champion Homes said the company saw encouraging demand during the quarter, with manufacturing orders increasing from the prior year and backlog rising to $421.8 million, compared with $302 million at the end of the prior-year first quarter. Manufacturing backlog lead time ended the quarter at about nine weeks, within Champion’s targeted range of four to 12 weeks.

Champion’s manufacturing capacity utilization was 62%, up from 59% in the preceding quarter and 61% a year earlier. The company’s utilization calculation includes six idled facilities.

Sales to independent retailers increased 4% from the prior-year period. Larson said the company continues to invest in dealer tools, including lead-management capabilities through its dealer portal and consumer digital-engagement efforts. Captive retail represented about 35% of consolidated sales, up from 34% a year earlier. Champion operated 95 captive retail stores at the end of the period, including 11 Homes Direct locations in the Western U.S. However, the first-quarter financial results did not include Homes Direct, as the acquisition closed Aug. 1.

Community orders increased modestly, with some larger operators contributing to growth, while builder-developer sales also rose year over year. Larson said momentum in the builder-developer channel accelerated during the quarter. He pointed to an off-site construction event in York, Nebraska, attended by more than 150 developers, builders, municipalities and housing advocates, as evidence of interest in modular and HUD housing solutions.

During the question-and-answer session, Larson said shipment growth was stronger in Texas, Florida, Mississippi and Alabama, while the West and parts of the Midwest were weaker in the first quarter. He added that order and backlog trends were broadly positive across geographies, though the West showed relatively less strength.

Adjusted gross profit totaled $179 million, producing an adjusted gross margin of 25.2%. CFO Dave McKinstray said the result reflected pricing actions, operational execution and a favorable product mix.