Champion Homes Q3 2025: Navigating Contradictions in Orders, Margins, and Growth Strategies

These are the key contradictions discussed in Champion Homes' latest 2025 Q3 earnings call, specifically including: Order Rate Trends, Gross Margin Expectations, Build Developer Channel Growth, and Inventory Management:



Revenue and Home Sales Growth:
- Champion Homes reported a 15.3% increase in net sales to $645 million for Q3, with homes sold rising by 13% to 6,646 units.
- The growth was driven by strong execution across sales, retail, and manufacturing teams, as well as increased demand.

Regional Homes Acquisition:
- The Regional Homes acquisition contributed to a 4% increase in sequential U.S. factory-built housing revenue.
- This acquisition demonstrated accretive nature, attributed to the successful integration and customer-centric approach of the Regional team.

Capacity Utilization and Production:
- Manufacturing capacity utilization was 63%, up from 60% in the previous quarter.
- The increase was due to Hurricane-related delays being largely recovered and increased production capacity.

Backlog and Order Trends:
- The backlog ended Q3 at $313 million, a 8% increase year-over-year, but declined sequentially by 27%.
- Seasonal slowdown and order rate fluctuations were contributing factors, with expectations for low-double-digit growth in Q4.