Champion Homes 2025 Q4 Earnings Strong Performance as Net Income Rises 1252.3%

Champion Homes (SKY) reported its fiscal 2025 Q4 earnings on May 27th, 2025. The total revenue of Champion Homes increased by 10.7% to $593.87 million in 2025 Q4, up from $536.36 million in 2024 Q4. With a remarkable rise in net income and EPS, Champion Homes exceeded market expectations for fiscal 2025 Q4. The company’s strategic initiatives and acquisitions have contributed to this growth, despite market volatility. Looking ahead, Champion Homes expects revenue growth in the low single digits for the first fiscal quarter of 2026, reflecting challenges in demand unpredictability across different geographies.

Revenue
Champion Homes achieved a total revenue of $593.87 million for the fourth quarter of fiscal 2025, representing a substantial increase from $536.36 million in the same quarter of fiscal 2024.

Earnings/Net Income
Champion Homes’s EPS rose 1220.5% to $0.64 in 2025 Q4 from $0.05 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $37.70 million in 2025 Q4, marking 1252.3% growth from $2.79 million in 2024 Q4. The significant rise in EPS reflects the company's strong financial performance.

Post-Earnings Price Action Review
The strategy of buying SKY when there is a revenue miss and holding for 30 days resulted in a significant performance. This approach generated an overall return of 198.67%, outperforming the benchmark return of 87.89% by 110.78%. The strategy demonstrated substantial growth with a compound annual growth rate (CAGR) of 24.59% over the backtested period, despite experiencing a maximum drawdown of -46.36%. The Sharpe ratio of 0.52 indicates moderate returns relative to the risk involved. Investors leveraging this strategy have navigated the volatility effectively, capitalizing on the potential for recovery and growth over the designated timeframe.

CEO Commentary
Tim Larson, CEO of Champion Homes, expressed pride in the company’s performance, reporting over 26,000 homes sold in fiscal 2025, a 19% increase from the previous year, with revenue growth of 23% totaling $2.5 billion. He highlighted challenges, including market uncertainty and inflation, yet remained optimistic about navigating these issues through strategic investments in product services and retail capabilities. Larson emphasized the importance of engaging with customers and expanding market presence through the acquisition of Iseman Homes, which aligns with their focus on enhancing the home buying experience. He acknowledged the ongoing commitment to affordable housing and expressed confidence in the company’s long-term strategy.

Guidance
For the first fiscal quarter of 2026, Champion Homes anticipates revenue growth in the low single digits compared to the same period last year. Larson noted that demand has been less predictable than normal for the spring selling season, with challenges varying by geography. The company expects gross margins to be in the range of 25% to 26%, reflecting current market conditions and consumer trends towards smaller homes with fewer features.

Additional News
Champion Homes announced its definitive agreement to acquire Iseman Homes, expanding its retail footprint across the Dakotas, Minnesota, Montana, Nebraska, and Wyoming. Iseman Homes generates approximately $40 million in annual revenue and will enhance Champion's distribution network. Additionally, Champion Homes won the Manufactured Housing Institute (MHI) Excellence in Manufactured Housing Award for the 11th consecutive year, showcasing its leadership in innovative home designs. Furthermore, Mary B. Fedewa was appointed as a new independent director to Champion Homes' Board of Directors, bringing over 30 years of experience in finance and capital markets to the team.