Champion Homes Q3 Financials Show Net Sales Increase – RVBusiness – Breaking RV Industry News
TROY, Mich. – Champion Homes, Inc. (NYSE: SKY) announced financial results for its third quarter ended Dec. 28, 2024 (“fiscal 2025”).
Third Quarter Fiscal 2025 Highlights (compared to Third Quarter Fiscal 2024)
- Net sales increased 15.3% to $644.9 million
- U.S. homes sold increased 14.1% to 6,437
- Backlog increased 7.6% compared to December 2023 and decreased 26.9% to $313 million from the sequential second quarter
- Average selling price (“ASP”) per U.S. home sold increased 2.8% to $94,900
- Gross profit margin expanded by 280 basis points to 28.1%
- Net income increased by 31.0% to $61.5 million
- Earnings per diluted share (“EPS”) increased 30.9% to $1.06
- Adjusted EBITDA increased 25.7% to $83.3 million
- Adjusted EBITDA margin expanded by 110 basis points to 12.9%
- Net cash generated by operating activities of $50.4 million during the quarter
- Repurchased $20.0 million of shares under the share repurchase program
“Champion’s strong performance this quarter reflects our ability to earn new customers and deliver profitable growth across our family of brands,” said Tim Larson, President and Chief Executive Officer of Champion Homes. “Since stepping into the role, I’ve been actively engaging with our employees, customers, partners, and shareholders to solicit feedback and identify opportunities to build on our strengths and drive long-term growth. I remain confident in the effectiveness of our strategy, including the expansion of our retail and digital presence, and strategic investments supporting the growth of community owners, independent retailers, and builder developers. As we respond to the evolving housing environment, we will continue to remain nimble and execute our differentiated strategy – including investing in technology and accelerating product innovation – while delivering sustained value for all our stakeholders.”
Third Quarter Fiscal 2025 Results
Net sales for the third quarter fiscal 2025 increased 15.3% to $644.9 million compared to the prior-year period. The number of U.S. homes sold in the third quarter fiscal 2025 increased 14.1% to 6,437 driven by an increase in demand across all sales channels. The ASP per U.S. home sold increased 2.8% to $94,900 due to an increase in the number of units sold through company-owned retail sales centers during the quarter. The number of Canadian factory-built homes sold in the quarter decreased to 209 homes compared to 249 homes in the prior-year period due to softening demand in certain markets.
Gross profit increased by 28.1% to $181.0 million in the third quarter fiscal 2025 compared to the prior-year period. Gross profit margin was 28.1% of net sales, a 280-basis point expansion compared to 25.3% in the third quarter fiscal 2024. Gross margin expansion reflects higher ASPs on new homes sold through company-owned retail sales centers which also generated a greater percentage of total revenue in addition to lower input costs and acquisition synergy capture when compared to the prior-year period.
Selling, general, and administrative expenses (“SG&A”) in the third quarter fiscal 2025 increased to $108.2 million from $85.1 million in the same period last year. SG&A during the quarter increased due to higher variable compensation from higher sales volumes and profitability as well as investments in people and information systems to support future growth. SG&A as a percentage of net sales was 16.8%, compared to 15.2% in the prior year period.
Net income increased by 31.0% to $61.5 million for the third quarter fiscal 2025 compared to the prior-year period. The increase in net income was driven by higher sales and gross profit partially offset by higher SG&A in the quarter.
Adjusted EBITDA for the third quarter fiscal 2025 increased by 25.7% to $83.3 million compared to the third quarter fiscal 2024. Adjusted EBITDA margin for the quarter was 12.9%, compared to 11.8% in the prior-year period.
As of December 28, 2024, Champion Homes had $581.8 million of cash and cash equivalents, an increase of $11.5 million in the current quarter. The Company repurchased and retired $20 million of its common stock during the third quarter under the previously announced repurchase program. On January 30, 2025, the Board of Directors refreshed the share repurchase authorization to provide for $100 million of potential future repurchases.
Conference Call and Webcast Information:
Champion Homes’ management will host a conference call tomorrow, February 5, 2025, at 8:00 a.m. Eastern Time, to discuss Champion Homes’ financial results and an update on current operations.
Investors and other interested parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of Champion Homes’ website at ir.championhomes.com. The online replay will be available on the same website immediately following the call.
The conference call can also be accessed by dialing (877) 407-4018 (domestic) or (201) 689-8471 (international). A telephonic replay will be available approximately three hours after the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13750900. The replay will be available until 11:59 P.M. Eastern Time on February 19, 2025.
About Champion Homes, Inc.
Champion Homes, Inc. (NYSE: SKY) is a leading producer of factory-built housing in North America and employs approximately 9,000 people. With more than 70 years of homebuilding experience and 48 manufacturing facilities throughout the United States and western Canada, Champion Homes is well positioned with an innovative portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors.
In addition to its core home building business, Champion Homes provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 72 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States.
Champion Homes builds homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Homes, Genesis Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, Titan Homes in the U.S. and Moduline and SRI Homes in western Canada.
