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- **Revenue Beat Expectations**: 11% YoY growth to $684M, driven by captive retail (37% of sales) and multi-section homes. ASP rose 7% due to product mix.
- **Gross Margin Expansion**: 27.5% margin (up 50bps) from captive sales and lower material costs. Sequential ASP growth 4%.
- **Legislative Momentum**: ROAD to Housing Act passed Senate, with potential $15K chassis cost savings. Syracuse pilot achieved homes under $250K in 6 months.
- **Regional Strength**: Northeast/Southeast outperformed West, with builder channel pipeline growth offsetting community softness.
- **Cash Return**: $50M buybacks and $150M repurchase authority, with $619M cash on hand.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 net sales increased 11% to $684 million, driven by captive retail sales (including Iseman Homes acquisition) and a 7% rise in average selling price (ASP) due to multi-section home mix. Homes sold rose 4% to 6,771 units.
- **Strategic Priorities**: Introduced new home designs for affordability, with a pilot project in Syracuse achieving homes under $250,000 in 6 months. Advocated for off-site construction through the ROAD to Housing Act, which passed the Senate.
- **Backlog Management**: Manufacturing backlog grew 4% sequentially to $313 million, with 8-week lead times. Community channel sales were down due to cautious consumer sentiment, while builder developer channel sales grew with new customers.

**【CFO Financial Commentary】**
- **Gross Margin Expansion**: Gross profit rose 13% to $188 million, with a 50 basis point increase in margin to 27.5%, driven by captive retail sales and lower material costs. Sequential ASP growth of 4% reflected product mix shifts.
- **Cost Management**: SG&A expenses increased $13 million due to variable compensation and plant closures, partially offset by a $3.7 million gain from selling idle facilities. Effective tax rate rose to 23.6% due to reduced tax credits.
- **Liquidity**: Generated $76 million in operating cash flow, with $619 million in cash. Returned $50 million to shareholders via buybacks and renewed $150 million repurchase authority.

**【Q&A Highlights】**
- **Channel Performance**: Builder developer channel pipeline growth offset community channel softness. Captive retail sales accounted for 37% of Q2 revenue (vs. 34% last year). ASP growth was mix-driven, with multi-section homes outselling single-section units.
- **Legislative Impact**: The ROAD to Housing Act could reduce chassis costs by $15,000, aiding affordability. HUD implementation timing will determine broader industry benefits.
- **Regional Trends**: Northeast and Southeast markets outperformed the West, driven by new product launches and retail channel strength. Community channel moderation expected in Q3 due to hurricanes in North Carolina and Florida.
- **Tariffs and Costs**: Q2 tariffs were half the expected 1% of material costs, but third-quarter impacts are expected to align with prior estimates. Canadian lumber tariffs added 10% to costs.


Champion Homes, Inc. (SKY) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SKY

SKY fundamentals

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