Nobility Homes Q3 Sales Dip Amid High Rates, Supply Woes

TL;DR

**NOBH is getting squeezed by high interest rates and supply chain chaos, forcing them to push lower-margin sales, so expect continued earnings pressure.**

AI Summary

NOBILITY HOMES INC (NOBH) reported a decline in net sales and net income for both the three and nine months ended August 2, 2025. Third-quarter net sales decreased by 12.9% to $12,021,194 from $13,803,340 in the prior year, while net income fell by 16.5% to $1,825,271 from $2,185,312. For the first nine months of 2025, net sales were $39,020,273, a 2.7% decrease from $40,099,316 in 2024, and net income dropped by 6.9% to $6,098,013 from $6,549,708. This decline was primarily driven by a decrease in new retail homes sold through company-owned sales centers (195 homes in 2025 vs. 232 in 2024), partially offset by an increase in lower-margin sales to independent dealers (129 homes in 2025 vs. 99 in 2024). The company attributes these challenges to higher interest rates, economic uncertainty, and ongoing supply chain issues, including delays in key production materials, back orders, price increases, tariffs, and labor shortages, which are causing inflation in building products and delays in home completion.

Why It Matters

This filing reveals NOBH is struggling with macroeconomic headwinds, specifically higher interest rates and economic uncertainty, which are directly impacting consumer purchasing decisions for manufactured homes. The shift towards lower-margin sales to independent dealers, despite increased volume, indicates a challenging retail environment and could compress future profitability. For investors, this suggests potential continued pressure on earnings and revenue growth, while employees might face job insecurity if sales continue to decline. Customers could experience longer wait times for homes due to supply chain issues and potentially higher prices from inflation in building materials, impacting affordability in the manufactured housing market.

Risk Assessment

Risk Level: high — The company explicitly states that 'potential customers have delayed or deferred purchasing decisions when considering the higher interest rate environment and the uncertainty of the economy,' directly impacting sales. Furthermore, 'delays in the receipt of certain key production materials from suppliers, as well as, back orders, price increases, tariffs and labor shortages' are causing delays and inflation, indicating significant operational and market risks.

Analyst Insight

Investors should consider a cautious approach to NOBH, given the explicit acknowledgment of ongoing macroeconomic and supply chain challenges impacting sales and profitability. Monitor future filings for signs of stabilization in retail sales and improvements in supply chain efficiency, as the current environment suggests continued headwinds for the manufactured housing sector.

Financial Highlights

debt To Equity

Not specified

revenue

$39,020,273

operating Margin

Not specified

total Assets

Not specified

total Debt

Not specified

net Income

$6,098,013

eps

$1.87

gross Margin

23%

cash Position

$14,362,469

revenue Growth

-2.7%

Revenue Breakdown

Key Numbers

• $12.02M — Q3 2025 Net Sales (12.9% decrease from Q3 2024)
• $1.83M — Q3 2025 Net Income (16.5% decrease from Q3 2024)
• $39.02M — Nine-Month 2025 Net Sales (2.7% decrease from nine-month 2024)
• $6.10M — Nine-Month 2025 Net Income (6.9% decrease from nine-month 2024)
• 195 — New retail homes sold (9 months 2025) (Decrease from 232 homes in 2024)
• 129 — Homes sold to independent dealers (9 months 2025) (Increase from 99 homes in 2024, but with lower margins)
• $0.56 — Basic EPS (Q3 2025) (Decrease from $0.67 in Q3 2024)
• $1.87 — Basic EPS (9 months 2025) (Decrease from $2.00 in 9 months 2024)
• $4,086,247 — Cash dividend paid (9 months 2025) (Decrease from $4,903,243 in 9 months 2024)
• $14,362,469 — Cash and cash equivalents (August 2, 2025) (Increase from $13,521,296 at beginning of period)

Key Players & Entities

• NOBILITY HOMES INC (company) — registrant
• $12,021,194 (dollar_amount) — total net sales for Q3 2025
• $13,803,340 (dollar_amount) — total net sales for Q3 2024
• $1,825,271 (dollar_amount) — net income for Q3 2025
• $2,185,312 (dollar_amount) — net income for Q3 2024
• $39,020,273 (dollar_amount) — total net sales for nine months 2025
• $40,099,316 (dollar_amount) — total net sales for nine months 2024
• $6,098,013 (dollar_amount) — net income for nine months 2025
• $6,549,708 (dollar_amount) — net income for nine months 2024
• 21st Mortgage Corporation (company) — joint venture partner

FAQ

Risk Factors

• Economic Uncertainty and Higher Interest Rates [high — market]: Potential customers are delaying purchasing decisions due to the higher interest rate environment and general economic uncertainty. This has negatively impacted sales, contributing to the reported revenue decline.
• Supply Chain Disruptions and Inflation [high — operational]: The company faces ongoing supply chain issues including delays in receiving key production materials, back orders, price increases, tariffs, and labor shortages. These factors cause delays in home completion and inflation in building product costs.
• Slowing Demand for Affordable Manufactured Housing [medium — market]: Industry-wide demand for affordable manufactured housing in Florida and the U.S. has slowed. Shipments in Florida declined approximately 12% from November 2024 through July 2025 compared to the prior year.

Industry Context

The manufactured housing industry, particularly in Florida, is experiencing a slowdown in demand, with industry-wide shipments declining by approximately 12% for the period November 2024 through July 2025. This trend, coupled with broader economic uncertainties and higher interest rates, is impacting sales for companies like Nobility Homes Inc.

Regulatory Implications

While no specific new regulatory changes are highlighted, the company operates within the manufactured housing sector, which is subject to federal and state regulations regarding safety, construction standards, and consumer protection. Compliance with these regulations is ongoing.

What Investors Should Do

1. Monitor supply chain and inflation impacts
2. Analyze shift to lower-margin dealer sales
3. Evaluate impact of interest rates on demand

Key Dates

• 2025-08-02: End of third quarter and nine-month period — Reporting period for the financial results showing decreased net sales and net income.
• 2024-08-03: End of third quarter and nine-month period in prior year — Comparison period for the current financial results.
• 2024-11-02: Beginning of fiscal year 2025 — Balance sheet comparison point for cash and cash equivalents.

Glossary

Net Sales

The total revenue generated from sales after deducting returns, allowances, and discounts. (Key indicator of the company's top-line performance, showing a decline in both Q3 and the nine-month period.)

Net Income

The company's profit after all expenses, taxes, and interest have been deducted from revenue. (Measures the company's profitability, which has decreased in Q3 and the nine-month period.)

Basic EPS

Earnings Per Share, calculated by dividing net income by the weighted average number of outstanding common shares. (Indicates the portion of a company's profit allocated to each outstanding share of common stock, showing a decline.)

Gross Profit

Revenue minus the cost of goods sold. (Indicates the profitability of the company's core products before operating expenses, with gross profit margins for retail centers at 23% and manufacturing at 24% for 9M 2025.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Nobility Homes Inc. reported a 2.7% decrease in net sales to $39.02 million and a 6.9% decrease in net income to $6.10 million. This decline is driven by fewer new retail homes sold through company-owned centers, partially offset by an increase in lower-margin sales to independent dealers. Gross profit margins remained relatively stable, with retail centers at 23% and manufacturing at 24% for the nine months ended August 2, 2025, compared to 24% and 23% respectively in the prior year. Cash and cash equivalents increased to $14.36 million from $13.52 million at the beginning of the period.

Key Financial Figures

• $0.10 — e on Which Registered Common Stock, $0.10 Par Value NOBH OTCQX Indicate by
• $12,021,194 — sales in the third quarter of 2025 were $12,021,194 compared to $13,803,340 in the third qu
• $13,803,340 — er of 2025 were $12,021,194 compared to $13,803,340 in the third quarter of 2024. Total net
• $39,020,273 — for the first nine months of 2025 were $39,020,273 compared to $40,099,316 for the first n
• $40,099,316 — hs of 2025 were $39,020,273 compared to $40,099,316 for the first nine months of 2024. The
• $1,825,271 — 024. The Company reported net income of $1,825,271 in the third quarter of 2025, compared
• $2,185,312 — er of 2025, compared to a net income of $2,185,312 in the third quarter of 2024. Total net
• $101,684 — enues in the third quarter of 2025 were $101,684 compared to $88,703 in the third quarte
• $88,703 — arter of 2025 were $101,684 compared to $88,703 in the third quarter of 2024. Total ins
• $237,487 — for the first nine months of 2025 were $237,487 compared to $259,883 for the first nine
• $259,883 — onths of 2025 were $237,487 compared to $259,883 for the first nine months of 2024. Reve
• $3,848,186 — profit in the third quarter of 2025 was $3,848,186 compared to $4,606,600 in the third qua
• $4,606,600 — rter of 2025 was $3,848,186 compared to $4,606,600 in the third quarter of 2024 and was $1
• $12,450,387 — 00 in the third quarter of 2024 and was $12,450,387 for the first nine months of 2025 compa
• $13,509,340 — compared 11 Table of Contents to $13,509,340 for the first nine months of 2024. The

Filing Documents

• ck0000072205-20250802.htm (10-Q) — 1153KB
• ck0000072205-ex31_a.htm (EX-31.(A)) — 31KB
• ck0000072205-ex31_b.htm (EX-31.(B)) — 31KB
• ck0000072205-ex32_a.htm (EX-32.(A)) — 16KB
• ck0000072205-ex32_b.htm (EX-32.(B)) — 16KB
• 0001193125-25-203439.txt ( ) — 3698KB
• ck0000072205-20250802.xsd (EX-101.SCH) — 435KB
• ck0000072205-20250802_htm.xml (XML) — 456KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of August 2, 2025 (Unaudited) and November 2, 2024 4 Condensed Consolidated Statements of Income for the three and nine months ended August 2, 2025 (Unaudited) and August 3, 2024 (Unaudited) 5 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended August 2, 2025 (Unaudited) and August 3, 2024 (Unaudited) 6 Condensed Consolidated Statements of Cash Flows for the nine months ended August 2, 2025 (Unaudited) and August 3, 2024 (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Item 4.

Controls and Procedures

Controls and Procedures 13 PART II. Other Information 14 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 14 Item 5. Other Information 14 Item 6. Exhibits 14

Signatures

Signatures 15 3 Table of Contents NOBILITY HOMES, INC. Condensed Consolid ated Balance Sheets August 2, 2025 November 2, 2024 (Unaudited) Assets Current assets: Cash and cash equivalents $ 14,362,469 $ 13,521,296 Certificates of deposit 12,174,266 13,021,839 Short-term investments at fair value 564,681 680,017 Accounts receivable - trade 2,767,428 2,935,517 Mortgage notes receivable 4,176 4,505 Inventories 19,812,206 21,039,344 Prepaid expenses and other current assets 2,037,995 1,727,034 Total current assets 51,723,221 52,929,552 Property, plant and equipment, net 8,328,074 8,280,695 Mortgage notes receivable, less current portion 141,597 141,728 Other investments 536,524 463,633 Property held for resale 26,590 26,590 Deferred income taxes 42,867 60,628 Cash surrender value of life insurance 4,692,813 4,539,813 Other assets 156,287 156,287 Total assets $ 65,647,973 $ 66,598,926 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 455,367 $ 753,317 Accrued compensation 744,844 800,013 Accrued expenses and other current liabilities 1,497,054 1,826,042 Income taxes payable 624,784 692,303 Customer deposits 3,601,403 5,930,728 Total current liabilities 6,923,452 10,002,403 Commitments and contingencies Stockholders' equity: Preferred stock, $ .10 par value, 500,000 shares authorized; none issued and outstanding — — Common stock, $ .10 par value, 10,000,000 shares authorized; 5,364,907 shares issued; 3,268,998 and 3,268,829 shares outstanding, respectively 536,491 536,491 Additional paid in capital 11,254,519 11,140,687 Retained earnings 76,689,549 74,677,783 Less treasury stock at cost, 2,095,909 and 2,096,078 shares, respectively ( 29,756,038 ) ( 29,758,438 ) Total stockholders' equity 58,724,521 56,596,523 Total liabilities and stoc

Management's Discussion and Analysis of Fin ancial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Fin ancial Condition and Results of Operations Results of Operations Total net sales in the third quarter of 2025 were $12,021,194 compared to $13,803,340 in the third quarter of 2024. Total net sales for the first nine months of 2025 were $39,020,273 compared to $40,099,316 for the first nine months of 2024. The Company reported net income of $1,825,271 in the third quarter of 2025, compared to a net income of $2,185,312 in the third quarter of 2024. Total net sales decreased during the first nine months of 2025 as compared to same period in 2024 due to a decrease in the number of new retail homes sold in our Company owned retail sales centers during the first nine months of fiscal 2025 as compared to 2024 (195 versus 232) partially offset by an increase in the number of homes sold to independent dealers, which have lower margins than retail sales during 2025 (129 versus 99). We believe that potential customers have delayed or deferred purchasing decisions when considering the higher interest rate environment and the uncertainty of the economy, which continues to negatively impact sales. There also remain delays in the receipt of certain key production materials from suppliers, as well as, back orders, price increases, tariffs and labor shortages which continue to cause delays in the completion of the homes at our manufacturing facility. We also continue to experience inflation in several building products resulting in increases in our material and labor costs. We expect these challenges will continue throughout fiscal year 2025 and into fiscal 2026. The current demand for affordable manufactured housing in Florida and the U.S. has slowed. According to the Florida Manufactured Housing Association, shipments for the industry in Florida for the period from November 2024 through July 2025 declined by approximately 12% from the same period last year. The following table summarizes certain key sales statistics an

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