Cavco Posts Strong Q2 Earnings, Revenue Jumps 9.7%

TL;DR

**Cavco is building serious momentum, with double-digit revenue and profit growth proving their factory-built housing model is hitting its stride.**

AI Summary

CAVCO INDUSTRIES, INC. reported a strong financial performance for the three and six months ended September 27, 2025. Net revenue increased by 9.7% to $556.5 million for the three months ended September 27, 2025, up from $507.5 million in the prior year period. For the six months, net revenue rose 13.0% to $1.113 billion from $985.1 million. Net income saw a significant jump, increasing by 19.5% to $52.4 million for the three-month period, compared to $43.8 million in the previous year, and by 32.9% to $104.0 million for the six-month period, up from $78.2 million. Basic net income per share also improved to $6.62 from $5.33 for the three months and $13.12 from $9.48 for the six months. The company's cash and cash equivalents increased to $375.0 million as of September 27, 2025, from $356.2 million at March 29, 2025. Inventories slightly increased to $258.4 million from $252.7 million, while total assets grew to $1.449 billion from $1.407 billion. The company also repurchased $86.1 million in common stock during the six months ended September 27, 2025, compared to $72.3 million in the prior year period.

Why It Matters

Cavco's robust performance, marked by significant revenue and net income growth, signals strong demand in the factory-built housing sector, which could benefit investors looking for stability in the housing market. The increase in home sales and delivery revenues suggests a healthy operational environment, potentially leading to continued market share gains against traditional homebuilders. For employees, this growth could mean job security and expansion opportunities. Customers might see continued innovation and availability of affordable housing options. Competitively, Cavco's strong financials and strategic stock repurchases position it well against rivals, indicating efficient capital management and confidence in future prospects.

Risk Assessment

Risk Level: medium — While Cavco shows strong growth, the concentration of consumer loans in Texas (47%) and Florida (15%) as of September 27, 2025, presents a geographic risk. Additionally, commercial loan concentrations in California (14%), New York (14%), Arizona (14%), and North Carolina (11%) expose the company to regional economic downturns or natural disasters. The company also has a concentration with one independent third-party and its affiliates, representing 11% of net commercial loans receivable, which could pose a risk if that relationship deteriorates.

Analyst Insight

Investors should consider Cavco's strong financial performance and efficient capital allocation, evidenced by significant stock repurchases, as a positive indicator. However, they should also monitor the geographic concentrations in consumer and commercial loan portfolios for potential regional economic vulnerabilities. A diversified portfolio approach is recommended, and further due diligence on the specific markets and the key commercial loan affiliate is advisable.

Financial Highlights

revenue

$1.113B

operating Margin

22.0%

total Assets

$1.449B

total Debt

$362.9M

net Income

$104.0M

eps

$13.12

gross Margin

23.7%

cash Position

$375.0M

revenue Growth

+13.0%

Revenue Breakdown

Key Numbers

• $556.5M — Net Revenue (3 months) (Increased 9.7% from $507.5M year-over-year)
• $1.113B — Net Revenue (6 months) (Increased 13.0% from $985.1M year-over-year)
• $52.4M — Net Income (3 months) (Increased 19.5% from $43.8M year-over-year)
• $104.0M — Net Income (6 months) (Increased 32.9% from $78.2M year-over-year)
• $6.62 — Basic EPS (3 months) (Increased from $5.33 year-over-year)
• $13.12 — Basic EPS (6 months) (Increased from $9.48 year-over-year)
• $375.0M — Cash and Cash Equivalents (As of September 27, 2025, up from $356.2M at March 29, 2025)
• $86.1M — Common Stock Repurchases (For six months ended September 27, 2025, up from $72.3M in prior year)
• 47% — Consumer Loan Concentration (In Texas as of September 27, 2025)
• 11% — Commercial Loan Concentration (With one independent third-party and its affiliates as of September 27, 2025)

Key Players & Entities

• CAVCO INDUSTRIES, INC. (company) — registrant
• SEC (regulator) — Securities and Exchange Commission
• $556,527 (dollar_amount) — Net revenue for three months ended September 27, 2025
• $507,461 (dollar_amount) — Net revenue for three months ended September 28, 2024
• $1,113,384 (dollar_amount) — Net revenue for six months ended September 27, 2025
• $985,060 (dollar_amount) — Net revenue for six months ended September 28, 2024
• $52,381 (dollar_amount) — Net income for three months ended September 27, 2025
• $43,815 (dollar_amount) — Net income for three months ended September 28, 2024
• $104,023 (dollar_amount) — Net income for six months ended September 27, 2025
• $78,244 (dollar_amount) — Net income for six months ended September 28, 2024

FAQ

Risk Factors

• Concentration of Consumer Loans in Texas [medium — market]: As of September 27, 2025, 47% of consumer loans were concentrated in Texas. This geographic concentration could expose the company to risks associated with economic downturns or regulatory changes specific to that state.
• Concentration of Commercial Loans with Third Party [medium — market]: As of September 27, 2025, 11% of commercial loans were with one independent third-party and its affiliates. Dependence on a single large counterparty for commercial lending introduces concentration risk, potentially impacting revenue if that relationship deteriorates.
• Compliance with SEC Rules and Regulations [medium — regulatory]: The company's financial statements are prepared pursuant to SEC rules for Quarterly Reports on Form 10-Q, requiring condensed disclosures. Management must ensure all necessary adjustments are made for fair presentation, and adherence to GAAP is critical.
• Reliance on Estimates and Assumptions [low — operational]: The preparation of financial statements involves management estimates and assumptions that affect reported amounts. Actual results could differ from these estimates due to inherent uncertainties, impacting financial reporting accuracy.
• Inventory Fluctuations [low — financial]: Inventories slightly increased to $258.4 million from $252.7 million. While not a significant jump, managing inventory levels is crucial to avoid obsolescence or stockouts, impacting working capital and profitability.

Industry Context

Cavco Industries operates in the manufactured housing and modular construction industry. This sector is influenced by housing market demand, interest rates, and consumer confidence. Competition includes other large manufacturers and smaller regional players. Trends include increasing demand for affordable housing solutions and potential shifts towards more sustainable building practices.

Regulatory Implications

Cavco's operations are subject to SEC reporting requirements, necessitating accurate and timely financial disclosures. The company's loan portfolio concentration in Texas and with a single third-party may attract scrutiny regarding risk management practices and compliance with lending regulations.

What Investors Should Do

1. Monitor loan portfolio concentration
2. Analyze share repurchase activity
3. Evaluate operating and gross margins
4. Assess inventory management

Key Dates

• 2025-09-27: End of Q2 Fiscal Year 2026 — Reporting period for the 10-Q, showing strong revenue and net income growth.
• 2025-03-29: End of Fiscal Year 2025 — Prior period balance sheet date for comparison of assets and liabilities.
• 2024-09-28: End of Q2 Fiscal Year 2025 — Prior year period for comparison of revenue, net income, and EPS.

Glossary

Consolidated Balance Sheets

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time. (Provides a snapshot of Cavco's financial position as of September 27, 2025, and March 29, 2025.)

Consolidated Statements of Comprehensive Income

A financial statement that reports a company's financial performance over a period of time, including both net income and other comprehensive income. (Shows Cavco's revenue, costs, and profitability for the three and six months ended September 27, 2025.)

Treasury Stock

Stock that a company has repurchased from the open market. (Cavco's treasury stock increased significantly, indicating substantial share repurchases during the period.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net assets. (Cavco has a significant goodwill balance of $121.9 million, suggesting past acquisitions.)

Operating lease right-of-use assets

Assets recognized under accounting standards for leases, representing the right to use an asset for a specified period. (Reflects Cavco's obligations related to leased properties and equipment.)

Accumulated other comprehensive income

A component of shareholders' equity that includes unrealized gains and losses on certain investments and foreign currency translations. (Shows a small positive balance for Cavco, indicating minimal unrealized gains or losses.)

Year-Over-Year Comparison

Cavco Industries demonstrated robust year-over-year growth in its latest filing. Net revenue increased by 9.7% for the quarter and 13.0% for the six-month period, reaching $556.5 million and $1.113 billion, respectively. Net income also saw substantial improvements, up 19.5% and 32.9% for the respective periods. The company's cash position strengthened to $375.0 million, while it significantly increased its common stock repurchases to $86.1 million, indicating a positive financial trajectory compared to the prior year.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 CVCO The Nasdaq Stock Market LLC (Nasd

Filing Documents

• cvco-20250927.htm (10-Q) — 1186KB
• cvco-2025927xexhibit311.htm (EX-31.1) — 10KB
• cvco-2025927xexhibit312.htm (EX-31.2) — 10KB
• cvco-2025927xexhibit32.htm (EX-32) — 5KB
• 0001628280-25-047849.txt ( ) — 7980KB
• cvco-20250927.xsd (EX-101.SCH) — 46KB
• cvco-20250927_cal.xml (EX-101.CAL) — 89KB
• cvco-20250927_def.xml (EX-101.DEF) — 204KB
• cvco-20250927_lab.xml (EX-101.LAB) — 571KB
• cvco-20250927_pre.xml (EX-101.PRE) — 419KB
• cvco-20250927_htm.xml (XML) — 1517KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets as of September 27, 2025 (unaudited) and March 29, 2025 1 Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended September 27, 2025 and September 28, 2024 2 Consolidated Statements of Cash Flows (unaudited) for the six months ended September 27, 2025 and September 28, 2024 3

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 4

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 19

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 26

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 28

Risk Factors

Item 1A. Risk Factors 28

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28

Not applicable

Item 3. Not applicable

Not applicable

Item 4. Not applicable

Other Information

Item 5. Other Information 28

Exhibits

Item 6. Exhibits 29

SIGNATURES

SIGNATURES 30 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CAVCO INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share amounts) September 27, 2025 March 29, 2025 ASSETS (Unaudited) Current assets Cash and cash equivalents $ 374,978 $ 356,225 Restricted cash, current 24,391 18,535 Accounts receivable, net 115,654 105,849 Short-term investments 16,865 19,842 Current portion of consumer loans receivable, net 33,493 35,852 Current portion of commercial loans receivable, net 43,468 43,492 Current portion of commercial loans receivable from affiliates, net 2,227 2,881 Inventories 258,423 252,695 Prepaid expenses and other current assets 65,048 74,815 Total current assets 934,547 910,186 Restricted cash 585 585 Investments 24,341 18,067 Consumer loans receivable, net 19,390 20,685 Commercial loans receivable, net 56,458 48,605 Commercial loans receivable from affiliates, net 5,292 4,768 Property, plant and equipment, net 236,709 227,620 Goodwill 121,969 121,969 Other intangibles, net 15,987 16,731 Operating lease right-of-use assets 33,791 35,576 Deferred income taxes — 1,853 Total assets $ 1,449,069 $ 1,406,645 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 44,075 $ 37,195 Accrued expenses and other current liabilities 273,975 265,971 Total current liabilities 318,050 303,166 Operating lease liabilities 30,360 31,538 Other liabilities 7,258 7,359 Deferred income taxes 7,264 — Total liabilities 362,932 342,063 Stockholders' equity Preferred stock, $ 0.01 par value; 1,000,000 shares authorized; No shares issued or outstanding — — Common stock, $ 0.01 par value; 40,000,000 shares authorized; Issued 9,470,820 and 9,436,732 shares, respectively; Outstanding 7,866,737 and 8,008,012 shares, respectively 95 94 Treasury stock, at cost; 1,604,083 and 1,428,720 shares, respectively ( 511,347 ) ( 424,624 ) Additional paid-in capital 294,984 290,940 Retained earnings 1,302,186 1,198,163 Accumulated other comp

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Basis of Presentation The accompanying unaudited Consolidated Financial Statements of Cavco Industries, Inc. and its subsidiaries (collectively, "we," "us," "our," the "Company" or "Cavco") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. In addition, references throughout to numbered "Notes" refer to these Notes to Consolidated Financial Statements (Unaudited), unless otherwise stated. In the opinion of management, these financial statements include all adjustments, including normal recurring adjustments, which are necessary to fairly state the interim results for the periods presented. We have evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC, and there were no disclosable subsequent events other than those mentioned in Note 19. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K for the year ended March 29, 2025, filed with the SEC ("Form 10-K"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes. Due to uncertainties, actual results could differ from the estimates and assumptions used in preparation of the Consolidated Financial Statements. The Consolidated Statements of Comprehensive Income and Consolidated Statements of Ca

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View this 10-Q filing on SEC EDGAR