Q1 FY2027
Filed Aug 4, 2026Champion Homes Announces First Quarter Fiscal 2027 Results
Net sales increased 1.3% to $710.2 million and U.S. homes sold increased 1.8%, but the Company said net income decreased compared to the prior year, citing inflationary cost-of-sales increases and a higher effective tax rate following the elimination of Energy Star tax credits.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $710.2 million | – | increased 1.3% |
| U.S. homes soldother | 7,089 | – | increased 1.8% |
| ASP per U.S. home soldother | $95,600 | – | increased 0.6% |
| Canadian factory-built homes soldother | 185 | – | – |
| Backlogother | $421.8 million | – | – |
| Gross profitGAAP | $179.3 million | – | – |
| Gross profit marginGAAP | 25.2% | – | – |
| Adjusted gross profitnon-GAAP | $179.0 million | – | – |
| Adjusted gross profit marginnon-GAAP | 25.2% | – | – |
| Selling, general, and administrative expensesGAAP | $119.0 million | – | increased |
| Adjusted SG&Anon-GAAP | $116.8 million | – | increased 8.6% |
| Adjusted SG&A as a percentage of net salesnon-GAAP | 16.4% | – | – |
| Net incomeGAAP | $49.2 million | – | decreased |
| Adjusted net incomenon-GAAP | $48.3 million | – | – |
| Earnings per diluted shareGAAP | $0.89 | – | – |
| Adjusted EPSnon-GAAP | $0.88 | – | – |
| EBITDAother | $74.0 million | – | – |
| Adjusted EBITDAnon-GAAP | $73.6 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 10.4% | – | – |
Capital returns
- The Company repurchased and retired $50.0 million of its common stock during the first quarter under the previously announced repurchase program.
- In July 2026, the Board of Directors refreshed the share repurchase authorization to provide for $150.0 million of potential future repurchases.
What drove it
- The increase in U.S. homes sold was driven primarily by an increase in sales from captive retail stores.
- ASP per U.S. home sold increased due to increased prices on new homes sold through company-owned retail sales centers.
- Higher material costs were partially offset by modest sales growth and pricing benefits in company-owned retail.
- GAAP SG&A increased due to the inclusion of Iseman Homes and the Company’s expanded retail footprint.
- The recently closed Homes Direct acquisition is intended to enhance the retail footprint and support long-term growth.
Concerns
- Net income decreased compared to the prior year, primarily due to inflationary increases in cost of sales and a higher effective tax rate resulting from the elimination of Energy Star tax credits.
- Higher material costs pressured gross profit despite pricing benefits and sales growth.
- The Company described the broader industry environment as challenging.
What to watch
- Backlog of $421.8 million.
- Whether captive retail stores continue to support U.S. home-sales volume.
- The effect of higher material costs on gross profit and margins.
- The contribution and integration of Iseman Homes and the recently closed Homes Direct acquisition.
- Use of the refreshed authorization providing for $150.0 million of potential future repurchases.
Balance sheet and cash flow
- As of June 27, 2026, Champion Homes had $784.7 million in cash and cash equivalents.
Analysis
Champion Homes opened fiscal 2027 with modest top-line growth. Net sales increased 1.3% to $710.2 million, while U.S. homes sold increased 1.8% to 7,089 and ASP per U.S. home sold increased 0.6% to $95,600. Management attributed the unit increase primarily to greater sales from captive retail stores, and attributed the ASP increase to higher prices on new homes sold through company-owned retail sales centers. Backlog was $421.8 million.
Profitability reflected material-cost pressure. Gross profit was $179.3 million, while adjusted gross profit was $179.0 million and adjusted gross profit margin was 25.2%. The Company said higher material costs were partially offset by modest sales growth and pricing benefits in company-owned retail. EBITDA was $74.0 million, adjusted EBITDA was $73.6 million, and adjusted EBITDA margin was 10.4%.
Operating expenses increased as Champion expanded its retail platform. GAAP SG&A rose to $119.0 million from $111.3 million, driven by the inclusion of Iseman Homes and the expanded retail footprint. Adjusted SG&A increased 8.6% to $116.8 million, or 16.4% of net sales. Net income was $49.2 million and adjusted net income was $48.3 million. The Company specifically identified inflationary cost-of-sales increases and a higher effective tax rate following the elimination of Energy Star tax credits as the primary reasons net income declined from the prior year.
Capital allocation remained active. Champion ended the quarter with $784.7 million in cash and cash equivalents, repurchased and retired $50.0 million of common stock during the quarter, and refreshed its authorization in July 2026 for $150.0 million of potential future repurchases. The release provided no forward financial guidance, leaving demand progression, material costs, retail expansion, acquisition integration, and backlog conversion as the principal reported items to monitor.
Management, verbatim
We began fiscal 2027 with encouraging demand trends and results in line with expectations. Our team continued to outperform the broader industry in a challenging environment. Champion’s differentiated platform, dedicated team, and recently closed Homes Direct acquisition strengthen our ability to deliver affordable housing solutions, enhance our retail footprint, and drive long-term growth.
Tim Larson, President and Chief Executive Officer of Champion Homes
Not in the filing
stated, not guessed- Prior-year net sales amount
- Prior-year U.S. homes sold
- Prior-year ASP per U.S. home sold
- Prior-year Canadian factory-built homes sold
- Prior-year backlog
- Prior-year gross profit and gross profit margin
- Operating income
- Prior-year GAAP and adjusted net income amounts
- Prior-year GAAP and adjusted EPS
- Prior-year EBITDA, adjusted EBITDA, and adjusted EBITDA margin
- Operating cash flow
- Free cash flow
- Debt
- Dividend information
- Segment revenue and segment-level comparisons
- Forward financial guidance
- Previous-release outlook for guidance comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.