Champion Homes (SKY) Q4 2026 Earnings Transcript

Chief Executive Officer — Timothy Larson Chief Financial Officer — David McKinstray Director of Investor Relations — Ellen [Surname not stated] Timothy Larson: Thank you, Ellen. It s great to welcome you to Champion Homes as our new Director of Investor Relations. Good morning, everyone. Fiscal 2026 results reflect a year of strong execution and performance. We navigated a challenged macro environment by being agile and active across the business with our customer-centric approach as our North Star. On our call a year ago, we shared our strategic priorities, and we are encouraged by the progress of our team and the impact we are experiencing in the marketplace. This is best reflected in the fact that across Champion, we earned the business of 26,622 customers in fiscal 2026, the record number of homes sold since the company went public in 2018. Off-site built homes continue to be a compelling affordable solution to the national housing crisis. With the average price of a home in the U.S. hovering near $500,000, Champion Homes provides today s buyers with a high-quality, attractive brand-new home at a fraction of that cost. That relative value proposition only becomes more powerful in a higher cost, higher uncertainty environment. And that s one of the reasons why we are so encouraged by the road ahead at Champion. We re pleased that the ECN transaction closed last month. and we re putting a portion of that capital to work towards our strategic priorities by expanding our retail channel and elevating the customer experience. In support of those strategies, we announced today the acquisition of Homes Direct. Homes Direct is a beacon of the manufactured housing industry with locations in Arizona, California, Colorado, New Mexico and Oregon. This acquisition expands our presence in the West adding 11 retail locations and will bring our number of company retail stores in the U.S. to 95. Homes Direct s founder is Ray Gritton, an industry pioneer and well-respected leader. It s personally been a pleasure to work with him on this transaction. He and his team had a business model that s a great fit with our vision and culture, and we look forward to further collaborating with Ray and the Homes Direct team. The 11 retail locations have annualized revenues of approximately $70 million, and we see a strong pipeline of local market demand and commercial opportunities. We expect the transaction to close in our fiscal second quarter. The Homes Direct transaction demonstrates our commitment to expanding our retail presence and utilizing our capital to support our strategy. Our team s agile execution across our strategic priorities is creating meaningful differentiation in our products and overall customer experience. And that s why we continue to outperform the industry. Performance that was also recognized this recent quarter with two industry honors that reflect how our homes are evolving and elevating. The team was honored by the National Association of Homebuilders with their Best in American Living Gold Award, and the team earned a 12th consecutive excellence award from the Manufactured Housing Institute. Each reflects our enduring commitment to innovation and operating excellence. Now I ll review our fourth quarter and full year performance. Fourth quarter net sales were $621.3 million, up 4.6% versus the prior year and above our sales expectations for the quarter. Although extreme weather caused some headwinds early in the quarter, our team managed through it effectively. Manufacturing capacity utilization, including idle facilities, was 59% in the fourth quarter consistent with the third quarter sequentially and slightly below the 60% we reported in the same period last year. Manufacturing orders increased 7% year-over-year in the fourth quarter. Manufacturing backlog ended the quarter at $316 million, up $50 million or approximately 19% sequentially. The average backlog lead time was 8 weeks, consistent with both the prior quarter and the same period last year. We continue to pace production with demand in each market, and we are encouraged by where our backlog stands today. Having entered into our key spring selling season, as additional context on the quarter, HUD industry shipments were down approximately 9% in the 3-month period that ended in March 2026 compared to the prior year. Champion Homes outperformed the broader market during this period, only slightly down low single digits, further reflecting the team s execution, tenacity and strength of our product portfolio. From a channel perspective, sales to our independent retailers increased year-over-year. We continue to receive positive feedback and adoption of our dealer portal and its capabilities reflecting our commitment to invest in the growth of our dealers. This channel worked through inventory levels through the first 3 quarters, and it was back to more normal ordering levels through Q4. Our captive retail channel delivered another quarter

Champion Homes (SKY) Q4 2026 Earnings Transcript

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Champion Homes (SKY) Q4 2026 Earnings Transcript

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