cvco-20251227
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 27, 2025
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 000-08822
CAVCO INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 56-2405642
(State or other jurisdiction of
incorporation or organization) (I.R.S. Employer
Identification No.)
3636 North Central Ave, Ste 1200
Phoenix Arizona 85012
(Address of principal executive offices, including zip code)
( 602 ) 256-6263
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 CVCO The Nasdaq Stock Market LLC
(Nasdaq Global Select Market)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer ☒ Accelerated Filer ☐
Non-accelerated Filer ☐ Smaller Reporting Company ☐
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of January 22, 2026, 7,761,163 shares of the registrant's Common Stock, $0.01 par value, were outstanding.
CAVCO INDUSTRIES, INC.
FORM 10-Q
December 27, 2025
TABLE OF CONTENTS
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of December 27, 2025 (unaudited) and March 29, 2025
1
Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended December 27, 2025 and December 28, 2024
2
Consolidated Statements of Cash Flows (unaudited) for the nine months ended December 27, 2025 and December 28, 2024
3
Notes to Consolidated Financial Statements (unaudited)
4
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
22
Item 3. Quantitative and Qualitative Disclosures About Market Risk
29
Item 4. Controls and Procedures
30
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
31
Item 1A. Risk Factors
31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
31
Item 3. Not applicable
Item 4. Not applicable
Item 5. Other Information
31
Item 6. Exhibits
32
SIGNATURES
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
CAVCO INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
December 27,
2025 March 29,
2025
ASSETS (Unaudited)
Current assets
Cash and cash equivalents $ 224,616 $ 356,225
Restricted cash, current 17,271 18,535
Accounts receivable, net 105,956 105,849
Short-term investments 17,277 19,842
Current portion of consumer loans receivable, net 38,679 35,852
Current portion of commercial loans receivable, net 45,659 43,492
Current portion of commercial loans receivable from affiliates, net 2,015 2,881
Inventories 290,540 252,695
Prepaid expenses and other current assets 74,782 74,815
Total current assets 816,795 910,186
Restricted cash 585 585
Investments 24,782 18,067
Consumer loans receivable, net 20,104 20,685
Commercial loans receivable, net 53,393 48,605
Commercial loans receivable from affiliates, net 5,163 4,768
Property, plant and equipment, net 276,716 227,620
Goodwill 207,803 121,969
Other intangibles, net 28,678 16,731
Operating lease right-of-use assets 38,176 35,576
Deferred income taxes — 1,853
Total assets $ 1,472,195 $ 1,406,645
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 35,003 $ 37,195
Accrued expenses and other current liabilities 293,674 265,971
Total current liabilities 328,677 303,166
Operating lease liabilities 34,065 31,538
Other liabilities 7,210 7,359
Deferred income taxes 13,024 —
Total liabilities 382,976 342,063
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 9,471,289 and 9,436,732 shares, respectively; Outstanding 7,786,626 and 8,008,012 shares, respectively
95 94
Treasury stock, at cost; 1,684,663 and 1,428,720 shares, respectively
( 555,587 ) ( 424,624 )
Additional paid-in capital 298,231 290,940
Retained earnings 1,346,253 1,198,163
Accumulated other comprehensive income 227 9
Total stockholders' equity 1,089,219 1,064,582
Total liabilities and stockholders' equity $ 1,472,195 $ 1,406,645
See accompanying Notes to Consolidated Financial Statements
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CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
December 27,
2025 December 28,
2024 December 27,
2025 December 28,
2024
Net revenue
$ 580,994 $ 522,040 $ 1,694,378 $ 1,507,100
Cost of sales
445,073 392,090 1,294,544 1,157,626
Gross profit
135,921 129,950 399,834 349,474
Selling, general and administrative expenses
81,361 65,980 222,738 197,828
Income from operations 54,560 63,970 177,096 151,646
Interest income 2,956 5,353 13,105 16,556
Interest expense ( 131 ) ( 155 ) ( 407 ) ( 370 )
Other income, net 213 168 355 315
Income before income taxes 57,598 69,336 190,149 168,147
Income tax expense ( 13,531 ) ( 12,874 ) ( 42,059 ) ( 33,441 )
Net income
$ 44,067 $ 56,462 $ 148,090 $ 134,706
Comprehensive income
Net income $ 44,067 $ 56,462 $ 148,090 $ 134,706
Reclassification adjustment for securities sold ( 10 ) ( 97 ) 243 174
Applicable income tax (expense) benefit 2 20 ( 51 ) ( 37 )
Net change in unrealized position of investments held
21 8 33 62
Applicable income tax expense ( 5 ) ( 2 ) ( 7 ) ( 13 )
Comprehensive income $ 44,075 $ 56,391 $ 148,308 $ 134,892
Net income per share
Basic
$ 5.65 $ 6.97 $ 18.78 $ 16.42
Diluted
$ 5.58 $ 6.90 $ 18.55 $ 16.25
Weighted average shares outstanding
Basic
7,801,698 8,096,538 7,887,594 8,203,448
Diluted
7,891,093 8,186,814 7,981,609 8,291,647
See accompanying Notes to Consolidated Financial Statements
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CAVCO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Nine Months Ended
December 27,
2025 December 28,
2024
OPERATING ACTIVITIES
Net income $ 148,090 $ 134,706
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 16,663 14,304
Provision for credit losses ( 176 ) ( 874 )
Deferred income taxes 9,170 17
Stock-based compensation expense 10,265 6,653
Non-cash interest income, net ( 582 ) ( 787 )
Gain on sale or retirement of property, plant and equipment, net ( 44 ) ( 19 )
Gain on investments and sale of loans, net ( 3,671 ) ( 1,901 )
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable 5,225 ( 14,762 )
Consumer loans receivable originated ( 43,040 ) ( 54,155 )
Proceeds received on consumer loans receivable 42,757 47,026
Inventories 10,010 ( 1,960 )
Prepaid expenses and other current assets 4,560 4,997
Commercial loans receivable originated ( 117,299 ) ( 87,543 )
Principal payments received on commercial loans receivable 110,800 85,008
Accounts payable, accrued expenses and other liabilities 7,391 9,141
Net cash provided by operating activities 200,119 139,851
INVESTING ACTIVITIES
Purchases of property, plant and equipment ( 27,360 ) ( 15,288 )
Payments for acquisitions, net ( 171,446 ) —
Proceeds from sale of property, plant and equipment 158 194
Purchases of investments ( 18,952 ) ( 21,588 )
Proceeds from sale of investments 17,748 22,706
Net cash used in investing activities ( 199,852 ) ( 13,976 )
FINANCING ACTIVITIES
Payments for taxes on stock option exercises and releases of equity awards ( 4,949 ) ( 3,425 )
Proceeds from exercise of stock options 1,884 2,130
Payments on finance leases and other secured financings ( 184 ) ( 261 )
Payments for common stock repurchases ( 129,891 ) ( 114,446 )
Net cash used in financing activities ( 133,140 ) ( 116,002 )
Net (decrease) increase in cash, cash equivalents and restricted cash ( 132,873 ) 9,873
Cash, cash equivalents and restricted cash at beginning of the fiscal year 375,345 368,753
Cash, cash equivalents and restricted cash at end of the period $ 242,472 $ 378,626
Supplemental disclosures of cash flow information
Cash paid for income taxes $ 29,676 $ 34,173
Cash paid for interest $ 205 $ 30
Supplemental disclosures of noncash activity
Payable due for acquisition of a business $ 3,358 $ —
Fair value of contingent acquisition purchase price receivable $ 4,838 $ —
Change in GNMA loans eligible for repurchase $ 347 $ 730
See accompanying Notes to Consolidated Financial Statements
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CAVCO INDUSTRIES, INC.
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. 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 Cash Flows for the interim periods are not necessarily indicative of the results or cash flows for the full year. The Company operates on a 52-53 week fiscal year ending on the Saturday nearest to March 31st of each year. Each fiscal quarter consists of 13 weeks, with an occasional fourth quarter extending to 14 weeks, if necessary, for the fiscal year to end on the Saturday nearest March 31st. The current fiscal year will end on March 28, 2026 and will include 52 weeks.
As disclosed on our Form 8-K filed on September 30, 2025, on September 29, 2025, we acquired American Homestar Corporation ("American Homestar"), including its two manufacturing facilities, nineteen wholly-owned retail locations and financial service operations. The results of operations are included in our Consolidated Financial Statements from the date of acquisition. See Note 19.
For a description of significant accounting policies used in the preparation of our Consolidated Financial Statements, please refer to Note 1 of the Notes to Consolidated Financial Statements included in the Form 10-K.
2. Recent Accounting Pronouncements
The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB"). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's Consolidated Financial Statements.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires companies to enhance the disclosures about segment expenses. The new standard requires the identification and disclosure of the Company's Chief Operating Decision Maker ("CODM"), expanded incremental line-item disclosures of significant segment expenses used by the CODM for decision-making, and the inclusion of previous annual only segment disclosure requirements on a quarterly basis. This ASU should be applied retrospectively for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We adopted ASU 2023-07 effective for the annual period beginning March 31, 2024, and for interim periods beginning March 30, 2025. ASU 2023-07 is applied retrospectively to all prior periods presented in the accompanying Consolidated Financial Statements.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Taxes Disclosures, which requires greater disaggregation of income tax disclosures. The new standard requires additional
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information to be disclosed with respect to the income tax rate reconciliation and income taxes paid disaggregated by jurisdiction. This ASU should be applied prospectively for fiscal years beginning after December 15, 2024, with retrospective application permitted. The Company is currently evaluating the impacts of this guidance on the Company's Consolidated Financial Statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"), and in January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ("ASU 2025-01"). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Both early adoption and retrospective application are permitted. The Company is currently evaluating the impact that the adoption of these standards will have on its Consolidated Financial Statements.
3. Revenue from Contracts with Customers
The following table summarizes Net revenue disaggregated by reportable segment and source (in thousands):
Three Months Ended Nine Months Ended
December 27, 2025 December 28, 2024 December 27,
2025 December 28,
2024
Factory-built housing
Home sales $ 532,497 $ 471,998 $ 1,551,983 $ 1,378,103
Delivery, setup and other revenues 26,000 28,862 77,325 67,148
558,497 500,860 1,629,308 1,445,251
Financial services
Insurance agency commissions received from third-party insurance companies
1,975 1,246 4,899 3,920
All other sources 20,522 19,934 60,171 57,929
22,497 21,180 65,070 61,849
$ 580,994 $ 522,040 $ 1,694,378 $ 1,507,100
4. Cash and Cash Equivalents and Restricted Cash
The following table provides a reconciliation of Cash and cash equivalents and Restricted cash reported within the Consolidated Balance Sheets to the combined amounts shown in the Consolidated Statements of Cash Flows (in thousands):
December 27,
2025 December 28,
2024
Cash and cash equivalents $ 224,616 $ 362,863
Restricted cash, current 17,271 15,178
Restricted cash 585 585
$ 242,472 $ 378,626
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5. Investments
Investments consisted of the following (in thousands):
December 27,
2025 March 29,
2025
Available-for-sale debt securities $ 22,908 $ 21,415
Marketable equity securities
13,499 11,425
Non-marketable equity investments
5,652 5,069
42,059 37,909
Less short-term investments ( 17,277 ) ( 19,842 )
$ 24,782 $ 18,067
The amortized cost and fair value of our investments in available-for-sale debt securities, by security type, are shown in the table below (in thousands):
December 27, 2025 March 29, 2025
Amortized
Cost Fair
Value Amortized Cost Fair
Value
Residential mortgage-backed securities
$ 10,691 $ 10,790 $ 4,122 $ 4,120
State and political subdivision debt securities
5,744 5,849 6,955 6,976
Corporate debt securities
6,186 6,269 10,326 10,319
$ 22,621 $ 22,908 $ 21,403 $ 21,415
The amortized cost and fair value of our investments in available-for-sale debt securities, by contractual maturity, are shown in the table below (in thousands). Expected maturities may differ from contractual maturities as borrowers at times have the right to call or prepay obligations, with or without penalties.
December 27, 2025
Amortized
Cost Fair
Value
Due in less than one year $ 1,939 $ 1,940
Due after one year through five years 6,510 6,637
Due after five years through ten years 910 924
Due after ten years 2,571 2,617
Mortgage-backed securities 10,691 10,790
$ 22,621 $ 22,908
Net investment gains and losses on marketable equity securities were as follows (in thousands):
Three Months Ended Nine Months Ended
December 27,
2025 December 28,
2024 December 27,
2025 December 28,
2024
Marketable equity securities
Net gain (loss) recognized during the period $ 478 $ ( 954 ) $ 2,070 $ ( 440 )
Less: Net gain recognized on securities sold during the period ( 283 ) ( 1,649 ) ( 274 ) ( 1,561 )
Unrealized gain (loss) recognized during the period on securities still held $ 195 $ ( 2,603 ) $ 1,796 $ ( 2,001 )
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6. Inventories
Inventories consisted of the following (in thousands):
December 27,
2025 March 29,
2025
Raw materials $ 86,573 $ 79,098
Work in process 35,004 29,808
Finished goods 168,963 143,789
$ 290,540 $ 252,695
7. Consumer Loans Receivable
The following table summarizes consumer loans receivable (in thousands):
December 27,
2025 March 29,
2025
Loans held for investment, previously securitized $ 11,392 $ 13,775
Loans held for investment 14,955 12,196
Loans held for sale 33,390 27,981
Construction advances 2,811 4,210
62,548 58,162
Deferred financing fees and other, net ( 1,780 ) ( 686 )
Allowance for loan losses ( 1,985 ) ( 939 )
58,783 56,537
Less current portion ( 38,679 ) ( 35,852 )
$ 20,104 $ 20,685
The consumer loans held for investment had the following characteristics:
December 27,
2025 March 29,
2025
Weighted average contractual interest rate 7.7 % 7.9 %
Weighted average effective interest rate 7.6 % 10.3 %
Weighted average months to maturity 236 221
The following table is a consolidated summary of the delinquency status of the outstanding principal balance of consumer loans receivable (in thousands):
December 27,
2025 March 29,
2025
Current $ 59,408 $ 56,401
31 to 60 days 1,659 1,082
61 to 90 days 333 4
91+ days 1,148 675
$ 62,548 $ 58,162
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The following table disaggregates the outstanding principal balance of consumer loans receivable by credit quality indicator and fiscal year of origination (in thousands):
December 27, 2025
2026 2025 2024 2023 2022 Prior Total
Prime- FICO score 680 and greater
$ 18,517 $ 7,503 $ 4,463 $ 319 $ 89 $ 12,297 $ 43,188
Near Prime- FICO score 620-679
2,893 1,630 619 — — 8,671 13,813
Sub-Prime- FICO score less than 620
— — — — — 569 569
No FICO score
172 281 202 957 1,247 2,119 4,978
$ 21,582 $ 9,414 $ 5,284 $ 1,276 $ 1,336 $ 23,656 $ 62,548
March 29, 2025
2025 2024 2023 2022 2021 Prior Total
Prime- FICO score 680 and greater
$ 18,133 $ 9,209 $ 323 $ 92 $ 761 $ 13,197 $ 41,715
Near Prime- FICO score 620-679
2,948 1,210 — — 1,026 9,000 14,184
Sub-Prime- FICO score less than 620
537 — — — 17 680 1,234
No FICO score
317 441 — — — 271 1,029
$ 21,935 $ 10,860 $ 323 $ 92 $ 1,804 $ 23,148 $ 58,162
As of December 27, 2025, 47 % of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 12 % was concentrated in Florida. As of March 29, 2025, 54 % of the outstanding principal balance of the consumer loans receivable portfolio was concentrated in Texas and 11 % was concentrated in Florida. Other than Texas and Florida, no sta te had concentrations in excess of 10% of the outstanding principal balance of the consumer loans receivable as of December 27, 2025 or March 29, 2025.
8. Commercial Loans Receivable
The commercial loans receivable balance consists of direct financing arrangements for the home product needs of our independent distributors, community owners and developers.
Commercial loans receivable, net consisted of the following (in thousands):
December 27,
2025 March 29,
2025
Loans receivable (including from affiliates) $ 106,811 $ 100,297
Allowance for loan losses ( 375 ) ( 361 )
Deferred financing fees, net ( 206 ) ( 190 )
106,230 99,746
Less current portion of commercial loans receivable (including from affiliates), net ( 47,674 ) ( 46,373 )
$ 58,556 $ 53,373
The commercial loans receivable balance had the following characteristics:
December 27,
2025 March 29,
2025
Weighted average contractual interest rate 7.8 % 8.3 %
Weighted average months outstanding 10 10
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The following table disaggregates the outstanding principal balance of our commercial loans receivable by fiscal year of origination (in thousands):
December 27, 2025
2026 2025 2024 2023 2022 Prior Total
Performing
$ 62,873 $ 27,832 $ 13,632 $ 1,947 $ 339 $ 188 $ 106,811
March 29, 2025
2025 2024 2023 2022 2021 Prior Total
Performing
$ 66,843 $ 24,215 $ 7,006 $ 1,014 $ 1,219 $ — $ 100,297
As of December 27, 2025, our outstanding commercial loans receivable principal balance was concentrated primarily in Arizona 15 %, New York 14 %, California 13 % and North Carolina 12 %. As of March 29, 2025, concentrations were 16 % in California and 17 % in New York.
We had concentrations with one independent third-party and its affiliates that equaled 10 % of the net commercial loans receivable principal balance outstanding, all of which was secured, as of December 27, 2025 and March 29, 2025. The risks created by these concentrations have been considered in the determination of the adequacy of the allowance for loan losses.
9. Goodwill and Other Intangibles, net
Goodwill and other intangibles, net, consisted of the following (in thousands):
December 27, 2025 March 29, 2025
Gross
Carrying
Amount Accumulated
Amortization Net
Carrying
Amount Gross
Carrying
Amount Accumulated
Amortization Net
Carrying
Amount
Indefinite-lived
Goodwill $ 207,803 $ — $ 207,803 $ 121,969 $ — $ 121,969
Trademarks and trade names
7,020 — 7,020 7,020 — 7,020
State insurance licenses
1,100 — 1,100 1,100 — 1,100
215,923 — 215,923 130,089 — 130,089
Finite-lived
Customer relationships 28,300 ( 7,905 ) 20,395 15,000 ( 6,676 ) 8,324
Other
1,114 ( 951 ) 163 1,114 ( 827 ) 287
$ 245,337 $ ( 8,856 ) $ 236,481 $ 146,203 $ ( 7,503 ) $ 138,700
Changes to Goodwill for the nine months ended December 27, 2025 were as follows (in thousands):
Goodwill beginning of the period $ 121,969
American Homestar Acquisition (1)
85,834
Goodwill end of the period $ 207,803
(1) See Note 19, Acquisition
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Amortization expense recognized on intangible assets for the three and nine months ended December 27, 2025 was $ 0.6 million and $ 1.4 million, respectively. Amortization expense recognized on intangible assets for the three and nine months ended December 28, 2024 was $ 0.4 million and $ 1.2 million, respectively. Customer relationships have a weighted average remaining life of 9.2 years and other finite lived intangibles have a weighted average remaining life of 0.5 years.
Expected future amortization is as follows (in thousands):
Remainder of fiscal year 2026 $ 599
Fiscal 2027 2,375
Fiscal 2028 2,249
Fiscal 2029 2,215
Fiscal 2030 1,935
Fiscal 2031 1,795
Thereafter 9,390
$ 20,558
10. Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
December 27,
2025 March 29,
2025
Salaries, wages and benefits $ 49,508 $ 45,640
Customer deposits 48,259 46,934
Estimated warranties 39,954 33,189
Unearned insurance premiums 32,306 33,863
Accrued volume rebates 31,120 21,208
Accrued insurance 13,253 13,094
Insurance loss reserves 10,929 16,201
Other 68,345 55,842
$ 293,674 $ 265,971
11. Warranties
Activity in the liability for estimated warranties was as follows (in thousands):
Three Months Ended Nine Months Ended
December 27,
2025 December 28,
2024 December 27,
2025 December 28,
2024
Balance at beginning of period $ 35,577 $ 33,081 $ 33,189 $ 31,718
Purchase accounting additions 2,231 — 2,231 —
Charged to costs and expenses 20,524 14,322 54,172 40,403
Payments and deductions ( 18,378 ) ( 12,991 ) ( 49,638 ) ( 37,709 )
Balance at end of period $ 39,954 $ 34,412 $ 39,954 $ 34,412
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12. Other Liabilities
The following table summarizes secured financings and other obligations (in thousands):
December 27,
2025 March 29,
2025
Finance lease liabilities $ 6,025 $ 6,086
Other secured financing 1,476 1,594
7,501 7,680
Less current portion included in Accrued expenses and other current liabilities ( 291 ) ( 321 )
$ 7,210 $ 7,359
13. Debt
We are party to an Amended and Restated Credit Agreement among the Company, Bank of America, N.A., as administrative agent, swing line lender, and letter of credit issuer, and the guarantors party thereto (the "Credit Agreement"), providing for a $ 75 million revolving credit facility (the "Revolving Credit Facility"), including a $ 10 million letter of credit sub-facility.
The Revolving Credit Facility is guaranteed, on a joint and several basis, by certain of the Company's subsidiaries. Subject to certain conditions and requirements set forth in the Credit Agreement, including the availability of additional lender commitments, the Company may request from time to time one or more term loan facilities, or increases in the aggregate commitments under the Revolving Credit Facility, in an aggregate amount not exceeding $ 75 million up to $ 150 million.
As of December 27, 2025 and March 29, 2025, there were no borrowings outstanding under the Revolving Credit Facility and we were in compliance with all covenants.
14. Reinsurance and Insurance Loss Reserves
Certain of Standard Casualty Company's premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. We remain obligated for amounts ceded in the event that the reinsurers do not meet their obligations.
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The effects of reinsurance on premiums written and earned were as follows (in thousands):
Three Months Ended
December 27, 2025 December 28, 2024
Written Earned Written Earned
Direct premiums
$ 9,643 $ 11,084 $ 19,260 $ 24,645
Assumed premiums—nonaffiliated
9,996 11,018 21,534 20,629
Ceded premiums—nonaffiliated
( 7,309 ) ( 7,309 ) ( 17,387 ) ( 17,387 )
$ 12,330 $ 14,793 $ 23,407 $ 27,887
Nine Months Ended
December 27, 2025 December 28, 2024
Written Earned Written Earned
Direct premiums
$ 31,086 $ 33,800 $ 32,763 $ 36,947
Assumed premiums—nonaffiliated
33,194 32,851 33,269 30,133
Ceded premiums—nonaffiliated
( 22,673 ) ( 22,673 ) ( 25,572 ) ( 25,572 )
$ 41,607 $ 43,978 $ 40,460 $ 41,508
Typical insurance policies written or assumed have a maximum coverage of $ 0.4 million per claim, of which we cede $ 0.15 million of the risk of loss per reinsurance. Therefore, our risk of loss is limited to $ 0.25 million per claim on typical policies, subject to the reinsurers meeting their obligations. After this limit, amounts are recoverable through reinsurance for catastrophic losses in excess of $ 4.0 million per occurrence, up to a maximum of $ 90 million in the aggregate for that occurrence.
The following details the activity in the incurred but not reported reserve for the three and nine months ended December 27, 2025 a nd December 28, 2024 (in thousands):
Three Months Ended Nine Months Ended
December 27,
2025 December 28,
2024 December 27,
2025 December 28,
2024
Balance at beginning of period $ 10,260 $ 14,620 $ 16,201 $ 10,540
Net incurred losses during the period 6,578 9,662 25,463 41,753
Net claim payments during the period ( 5,909 ) ( 12,028 ) ( 30,735 ) ( 40,039 )
Balance at end of period $ 10,929 $ 12,254 $ 10,929 $ 12,254
15. Commitments and Contingencies
Repurchase Contingencies . The maximum amount for which the Company was liable under the terms of repurchase agreements with financial institutions that provide inventory financing to independent distributors of our products approxim ated $ 148 million and $ 133 million at December 27, 2025 and March 29, 2025, respectively, without reduction for the estimated resale value of the home s. Our reserve for repurchase commitments, re corded in Accrued expenses and other current liabilities, was $ 3.7 million at December 27, 2025 and $ 3.3 million at March 29, 2025.
Construction-Period Mortgages. Loan contracts with off-balance sheet commitments are summarized below (in thousands):
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December 27,
2025 March 29,
2025
Construction loan contract amount $ 6,034 $ 12,366
Cumulative advances ( 2,811 ) ( 4,210 )
$ 3,223 $ 8,156
Representations and Warranties of Mortgages Sold . The reserve for contingent repurchases and indemnification obliga tions was $ 0.6 million as of December 27, 2025 and March 29, 2025, included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. There were no claim requests that resulted in the repurchase of any loans during the nine months ended December 27, 2025 or December 28, 2024 .
Interest Rate Lock Commitments ("IRLCs") . As of December 27, 2025 and March 29, 2025, w e had outstanding IRLCs with a notional amount of $ 36.0 million and $ 16.3 million, respectively. For the three and nine months ended December 27, 2025 , we recognized insignificant non-cash gains on outstanding IRLCs. For the three and nine months ended December 28, 2024, we recognized insignificant non-cash losses and gains, respectively, on outstanding IRLCs.
Forward Sales Commitments. As of December 27, 2025 and March 29, 2025, we had $ 10.6 million and $ 20.8 million in outstanding forward sales commitments for sales of mortgage backed securities and whole loan commitments (collectively, the "Commitments"), respectively. During the three and nine months ended December 27, 2025, we recognized insignificant non-cash gains on Commitments. During the three and nine months ended December 28, 2024, we recognized insignificant non-cash gains.
Legal Matters. We are party to certain lawsuits in the ordinary course of business. Based on management's present knowledge of the facts and (in certain cases) advice of outside counsel, management does not believe that loss contingencies arising from pending matters are likely to have a material adverse effect on our consolidated financial position, liquidity or results of operations after taking into account any existing reserves, which reserves are included in Accrued expenses and other current liabilities on the Consolidated Balance Sheets. However, future events or circumstances that may currently be unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on our consolidated financial position, liquidity or results of operations in any future reporting periods.
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16. Stockholders' Equity
The following tables represent changes in Stockholders' equity during the nine months ended December 27, 2025 and December 28, 2024, respectively (dollars in thousands):
Treasury stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total
Common Stock
Shares Amount
Balance, March 29, 2025 9,436,732 $ 94 $ ( 424,624 ) $ 290,940 $ 1,198,163 $ 9 $ 1,064,582
Net income — — — — 51,642 — 51,642
Other comprehensive income, net — — — — — 96 96
Net issuance of common stock under stock incentive plans 16,631 1 — ( 4,682 ) — — ( 4,681 )
Stock-based compensation — — — 3,563 — — 3,563
Common stock repurchases — — ( 50,369 ) — — — ( 50,369 )
Balance, June 28, 2025 9,453,363 $ 95 $ ( 474,993 ) $ 289,821 $ 1,249,805 $ 105 $ 1,064,833
Net income — — — — 52,381 — 52,381
Other comprehensive income, net — — — — — 114 114
Net issuance of common stock under stock incentive plans 17,457 — — 1,633 — — 1,633
Stock-based compensation — — — 3,530 — — 3,530
Common stock repurchases — — ( 36,354 ) — — — ( 36,354 )
Balance, September 27, 2025 9,470,820 $ 95 $ ( 511,347 ) $ 294,984 $ 1,302,186 $ 219 $ 1,086,137
Net income — — — — 44,067 — 44,067
Other comprehensive income, net — — — — — 8 8
Net issuance of common stock under stock incentive plans 469 — — 75 — — 75
Stock-based compensation — — — 3,172 — — 3,172
Common stock repurchases — — ( 44,240 ) — — — ( 44,240 )
Balance, December 27, 2025 9,471,289 $ 95 $ ( 555,587 ) $ 298,231 $ 1,346,253 $ 227 $ 1,089,219
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Treasury stock Additional paid-in capital Retained earnings Accumulated other comprehensive (loss) income Total
Common Stock
Shares Amount
Balance, March 30, 2024 9,389,953 $ 94 $ ( 274,693 ) $ 281,216 $ 1,027,127 $ ( 333 ) $ 1,033,411
Net income — — — — 34,429 — 34,429
Other comprehensive income, net — — — — — 58 58
Net issuance of common stock under stock incentive plans 11,104 — — ( 2,348 ) — — ( 2,348 )
Stock-based compensation — — — 2,194 — — 2,194
Common stock repurchases — — ( 29,204 ) — — — ( 29,204 )
Balance, June 29, 2024 9,401,057 $ 94 $ ( 303,897 ) $ 281,062 $ 1,061,556 $ ( 275 ) $ 1,038,540
Net income — — — — 43,815 — 43,815
Other comprehensive income, net — — — — — 198 198
Net issuance of common stock under stock incentive plans 16,275 — — 1,220 — — 1,220
Stock-based compensation — — — 2,713 — — 2,713
Common stock repurchases — — ( 44,509 ) — — — ( 44,509 )
Balance, September 28, 2024 9,417,332 $ 94 $ ( 348,406 ) $ 284,995 $ 1,105,371 $ ( 77 ) $ 1,041,977
Net income — — — — 56,462 — 56,462
Other comprehensive (loss), net — — — — — ( 70 ) ( 70 )
Net issuance of common stock under stock incentive plans 5,637 — — ( 168 ) — — ( 168 )
Stock-based compensation — — — 1,746 — — 1,746
Common stock repurchases — — ( 42,722 ) — — — ( 42,722 )
Balance, December 28, 2024 9,422,969 $ 94 $ ( 391,128 ) $ 286,573 $ 1,161,833 $ ( 147 ) $ 1,057,225
17. Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except per share amounts):
Three Months Ended Nine Months Ended
December 27,
2025 December 28,
2024 December 27,
2025 December 28,
2024
Net income $ 44,067 $ 56,462 $ 148,090 $ 134,706
Weighted average shares outstanding
Basic 7,801,698 8,096,538 7,887,594 8,203,448
Effect of dilutive securities 89,395 90,276 94,015 88,199
Diluted 7,891,093 8,186,814 7,981,609 8,291,647
Net income per share
Basic $ 5.65 $ 6.97 $ 18.78 $ 16.42
Diluted $ 5.58 $ 6.90 $ 18.55 $ 16.25
Anti-dilutive common stock equivalents excluded 2 — 1 169
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18. Fair Value Measurements
The book value and estimated fair value of our financial instruments were as follows (in thousands):
December 27, 2025 March 29, 2025
Book
Value Estimated
Fair Value Book
Value Estimated
Fair Value
Available-for-sale debt securities
$ 22,908 $ 22,908 $ 21,415 $ 21,415
Marketable equity securities
13,499 13,499 11,425 11,425
Non-marketable equity investments
5,652 5,652 5,069 5,069
Consumer loans receivable 58,783 58,938 56,537 59,365
Commercial loans receivable
106,230 99,776 99,746 89,216
Other secured financing ( 1,476 ) ( 1,474 ) ( 1,594 ) ( 1,569 )
See Note 20, Fair Value Measurements, and the Fair Value of Financial Instruments caption in Note 1, Summary of Significant Accounting Policies, in the Form 10-K for more information on the methodologies we use in determining fair value.
Mortgage Servicing . Mortgage Servicing Rights ("MSRs") are recorded at fair value in Prepaid expenses and other current assets on the Consolidated Balance Sheets.
December 27,
2025 March 29,
2025
Number of loans serviced with MSRs 3,517 3,647
Weighted average servicing fee (basis points) 34.01 34.74
Capitalized servicing multiple 173.01 % 179.97 %
Capitalized servicing rate (basis points) 58.84 62.52
Serviced portfolio with MSRs (in thousands) $ 435,646 $ 451,080
MSRs (in thousands) $ 2,564 $ 2,820
19. Acquisition
American Homestar Acquisition
On September 29, 2025 (the "Acquisition Date"), we completed the acquisition of American Homestar, including their two manufacturing facilities and 19 retail locations, by acquiring 100 % of the outstanding stock for total consideration of $ 179.9 million, which is subject to customary adjustments. The total consideration transferred was $ 181.4 million in cash, $ 3.4 million in a liability to be paid in cash and contingent consideration to be received from the seller pending the outcome of future matters is fair valued at $ 4.8 million. The range of possible outcomes is $ 0 million to $ 4.8 million. This purchase enhances our position in the South Central U.S. while adding coverage and scale with high quality products. We believe this purchase will have a positive financial impact with accretive earnings and cash flow and meaningful improvement opportunities including cost, purchasing and product optimization synergies.
We have expensed $ 5.0 million in acquisition related transaction costs in Selling, general and administrative expenses in the Consolidated Statements of Comprehensive Income and have not incurred debt in connection with the purchase or subsequent operations.
The following table presents the fair values of the assets that we acquired and the liabilities that we assumed as of the Acquisition Date (in thousands). The purchase accounting is provisional and c ertain estimated fair values for leases, Other current assets, Accounts payable and accrued expenses and Deferred tax liability are not yet finalized and are subject to change, which could be significant. We will finalize the amounts recognized as we obtain the information necessary to complete the analysis. We expect to finalize these amounts as soon as possible but no later than one year from the Acquisition Date.
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September 29,
2025
Cash $ 8,484
Accounts receivable 5,310
Inventories 47,855
Other current assets 2,574
Property, plant and equipment 37,160
Consumer loans receivable 1,870
Operating lease right-of-use asset 2,952
Intangible assets (1)
13,300
Total identifiable assets acquired 119,505
Accounts payable and accrued liabilities 16,757
Operating lease liability 2,952
Deferred tax liability 5,700
Net identifiable assets acquired 94,096
Goodwill (2)
85,834
Net assets acquired $ 179,930
(1) Consists of $ 13.3 million assigned to customer-related intangibles, subject to a useful life of 14 years amortized on a straight-line basis.
(2) Attributable to the Factory-built housing segment and not deductible for income tax purposes.
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in business combinations. The goodwill recognized is attributable primarily to the expected synergies in purchasing and product distribution optimization from combining operations, the assembled workforce in one of the most important manufactured housing markets in the U.S., and more broadly the added capacity and distribution needed to meet growing housing needs.
Since the Acquisition Date, American Homestar has contributed Net revenue of $ 42.0 million and Net income of $ 2.4 million for the three months ended December 27, 2025.
Pro Forma Impact of American Homestar Acquisition (Unaudited) . The following table presents supplemental pro forma information as if the American Homestar acquisition had occurred on March 31, 2024 (in thousands, except per share data):
December 27, 2025 December 28, 2024
Nine Months Ended Three Months Ended Nine Months Ended
Net revenue $ 1,794,651 $ 574,938 $ 1,647,449
Net income 154,373 59,939 144,770
Diluted net income per share 19.34 7.32 17.46
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20. Business Segment Information
We operate principally in two segments: (1) Factory-built housing, which includes wholesale and retail Factory-built housing operations and (2) Financial services, which includes manufactured housing consumer finance and insurance, and qualifies as other activity under the segment reporting guidance as it does not meet the quantitative thresholds to be reported separately. The Factory-built housing segment generates revenue from building and selling manufactured and modular homes to both wholesale customers and end consumers through Company owned retail stores. The Financial services segment generates revenue through lending products for manufactured home purchasers, and through writing and holding insurance policies for manufactured homes. The Company's Chief Executive Officer is the chief operating decision maker ("CODM"). The CODM assesses segment performance and allocates resources, including reinvesting profits and making acquisitions, based on Gross p rofit and Income before income taxes. The CODM also uses these metrics in the budgeting process when determining how to allocate resources. The CODM is not provided asset information by reportable segment. The following tables provide selected financial data by segment (dollars in thousands):
Three Months Ended December 27, 2025
Factory-built housing Financial services Consolidated
Net revenue $ 558,497 $ 22,497 $ 580,994
Cost of sales 437,242 7,831 445,073
Gross profit 121,255 14,666 135,921
Selling, general and administrative expenses 74,162 7,199 81,361
Income from operations 47,093 7,467 54,560
Interest income 2,956 — 2,956
Interest expense ( 131 ) — ( 131 )
Other income, net 213 — 213
Income before income taxes 50,131 7,467 57,598
Income tax expense ( 11,981 ) ( 1,550 ) ( 13,531 )
Net income $ 38,150 $ 5,917 $ 44,067
Nine Months Ended December 27, 2025
Factory-built housing Financial services Consolidated
Net revenue $ 1,629,308 $ 65,070 $ 1,694,378
Cost of sales 1,264,715 29,829 1,294,544
Gross profit 364,593 35,241 399,834
Selling, general and administrative expenses 203,073 19,665 222,738
Income from operations 161,520 15,576 177,096
Interest income 13,105 — 13,105
Interest expense ( 407 ) — ( 407 )
Other income, net 355 — 355
Income before income taxes 174,573 15,576 190,149
Income tax expense ( 38,770 ) ( 3,289 ) ( 42,059 )
Net income $ 135,803 $ 12,287 $ 148,090
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Three Months Ended December 27, 2025
Factory-built housing Financial services Consolidated
Depreciation $ 5,497 $ 55 $ 5,552
Amortization $ 602 $ 7 $ 609
Capital expenditures $ 8,448 $ 42 $ 8,490
Nine Months Ended December 27, 2025
Factory-built housing Financial services Consolidated
Depreciation $ 15,130 $ 180 $ 15,310
Amortization $ 1,334 $ 19 $ 1,353
Capital expenditures $ 27,318 $ 42 $ 27,360
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Three Months Ended December 28, 2024
Factory-built housing Financial services Consolidated
Net revenue $ 500,860 $ 21,180 $ 522,040
Cost of sales 382,667 9,423 392,090
Gross profit 118,193 11,757 129,950
Selling, general and administrative expenses 60,408 5,572 65,980
Income from operations 57,785 6,185 63,970
Interest income 5,353 — 5,353
Interest expense ( 155 ) — ( 155 )
Other income, net 168 — 168
Income before income taxes 63,151 6,185 69,336
Income tax expense ( 11,715 ) ( 1,159 ) ( 12,874 )
Net income $ 51,436 $ 5,026 $ 56,462
Nine Months Ended December 28, 2024
Factory-built housing Financial services Consolidated
Net revenue $ 1,445,251 $ 61,849 $ 1,507,100
Cost of sales 1,112,029 45,597 1,157,626
Gross profit 333,222 16,252 349,474
Selling, general and administrative expenses 181,569 16,259 197,828
Income (loss) from operations 151,653 ( 7 ) 151,646
Interest income 16,556 — 16,556
Interest expense ( 370 ) — ( 370 )
Other income, net 315 — 315
Income (loss) before income taxes 168,154 ( 7 ) 168,147
Income tax (expense) benefit ( 33,470 ) 29 ( 33,441 )
Net income $ 134,684 $ 22 $ 134,706
Three Months Ended December 28, 2024
Factory-built housing Financial services Consolidated
Depreciation $ 4,344 $ 63 $ 4,407
Amortization $ 370 $ 7 $ 377
Capital expenditures $ 5,434 $ — $ 5,434
Nine Months Ended December 28, 2024
Factory-built housing Financial services Consolidated
Depreciation $ 12,960 $ 191 $ 13,151
Amortization $ 1,135 $ 19 $ 1,154
Capital expenditures $ 15,163 $ 90 $ 15,253
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December 27,
2025 March 29,
2025
Total assets:
Factory-built housing $ 1,228,925 $ 1,191,216
Financial services 243,270 215,429
Consolidated $ 1,472,195 $ 1,406,645
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Statements in this Quarterly Report on Form 10-Q (the "Report") include "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are often characterized by the use of words such as "believes," "estimates," "expects," "projects," "may," "will," "intends," "plans," or "anticipates," or by discussions of strategy, plans or intentions. Forward-looking statements include, for example, discussions regarding the manufactured housing and site-built housing industries; discussions regarding our efforts and the efforts of other industry participants to develop the home-only loan secondary market; our financial performance and operating results; our strategy; our liquidity and financial resources; our outlook with respect to Cavco Industries, Inc. and its subsidiaries (collectively, "we," "us," "our," the "Company" or "Cavco") and the manufactured housing business in general; the expected effect of certain risks and uncertainties on our business, financial condition and results of operations; economic conditions, including concerns of a possible recession, and consumer confidence; trends in interest rates and inflation; potential acquisitions, strategic investments and other expansions; the sufficiency of our liquidity; that we may seek alternative sources of financing in the future; operational and legal risks; how we may be affected by any pandemic or outbreak; geopolitical conditions; the cost and availability of labor and raw materials; governmental regulations and legal proceedings; the availability of favorable consumer and wholesale manufactured home financing; and the ultimate outcome of our commitments and contingencies. Forward-looking statements contained in this Report speak only as of the date of this Report or, in the case of any document incorporated by reference, the date of that document. We do not intend to publicly update or revise any forward-looking statement contained in this Report or in any document incorporated herein by reference to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by law.
Forward-looking statements involve risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, many of which are beyond our control. To the extent that our assumptions and expectations differ from actual results, our ability to meet such forward-looking statements may be significantly hindered. Factors that could affect our results and cause them to materially differ from those contained in the forward-looking statements include, without limitation, those discussed under Risk Factors in Part I, Item 1A of our 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "Form 10-K").
Introduction
The following should be read in conjunction with the Company's unaudited Consolidated Financial Statements and the related Notes that appear in Part I, Item 1 of this Report. References to "Note" or "Notes" pertain to the Notes to our unaudited Consolidated Financial Statements.
Company Overview
Headquartered in Phoenix, Arizona, we design and produce Factory-built homes primarily distributed through a network of independent and Company-owned retailers, planned community operators and residential developers. We are one of the largest producers of manufactured homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and Factory-built commercial structures. Our finance subsidiary, CountryPlace Acceptance Corp. ("CountryPlace"), is an approved Federal National Mortgage Association and Federal Home Loan Mortgage Corporation seller/servicer, and a Government National Mortgage Association ("GNMA") mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of Factory-built homes. Our insurance subsidiary, Standard Casualty Company, provides property and casualty insurance primarily to owners of manufactured homes.
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We operate a total of 33 homebuilding production lines with domestic locations in Millersburg and Woodburn, Oregon; Riverside, California; Nampa, Idaho; Phoenix, Glendale and Goodyear, Arizona; Deming, New Mexico; Duncan, Oklahoma; Austin, Fort Worth (two lines), Lancaster, Seguin and Waco, Texas; Montevideo, Minnesota; Dorchester, Wisconsin; Nappanee and Goshen, Indiana; Lafayette, Tennessee; Douglas and Moultrie, Georgia; Shippenville (two lines) and Emlenton, Pennsylvania; Martinsville and Rocky Mount, Virginia; Crouse and Hamlet, North Carolina; Ocala and Plant City, Florida; and two international lines in Ojinaga, Mexico. We distribute our homes through a large network of independent distribution points and 99 Company-owned U.S. retail stores, of which 62 are located in Texas.
Company and Industry Outlook
According to data reported by the Manufactured Housing Institute, industry home shipments for the calendar year through November 2025 were 95,947, a decrease of 0.3% compared to 96,240 shipments in the same calendar period last year. The manufactured h ousing industry offers solutions to the housing crisis with lower average price per square foot than a site-built home and the comparatively lower cost associated with manufactured home ownership, which remains competitive with rental housing.
The two largest manufactured housing consumer demographics, young adults and those who are age 55 and older, are both growing. " First-time" and "move-up" buyers of affordable homes are historically among the largest segments of new manufactured home purchasers. Included in this group are lower-income households that are particularly affected by periods of low employment rates and underemployment. Consumer confidence is especially important among manufactured home buyers interested in our products for seasonal or retirement living.
We employ a concerted effort to identify niche market opportunities where our diverse product lines and custom building capabilities provide us with a competitive advantage. We are focused on building quality, energy efficient homes for the modern home buyer. Our green building initiatives involve the creation of an energy efficient envelope, including higher utilization of renewable materials and provide lower utility costs. We also build homes designed to use alternative energy sources, such as solar.
We maintain a conservative cost structure in an effort to build added value into our homes and we work diligently to maintain a solid financial position. Our balance sheet strength, including the position in cash and cash equivalents, helps avoid liquidity problems and enables us to act effectively as market opportunities or challenges present themselves.
We continue to make certain commercial loan programs available to members of our wholesale distribution chain. Under direct commercial loan arrangements, we provide funds for financed home purchases by distributors, community operators and residential developers (see Note 8, Commercial Loans Receivable, to the unaudited Consolidated Financial Statements). Our involvement in commercial lending helps to increase the availability of manufactured home financing to distributors, community operators and residential developers and provides additional opportunities for product exposure to potential home buyers. While these initiatives support our ongoing efforts to expand product distribution, they also expose us to risks associated with the creditworthiness of this customer base and our inventory financing partners.
The lack of an efficient secondary market for manufactured home-only loans and the limited number of institutions providing such loans results in higher borrowing costs for home-only loans and continues to constrain industry growth. We work independently and with other industry participants to develop secondary market opportunities for manufactured home-only loan and non-conforming mortgage portfolios and expand lending availability in the industry. We also develop and invest in home-only lending programs to grow sales of homes through traditional distribution points. We believe that growing our investment and participation in home-only lending may provide additional sales growth opportunities for our Factory-built housing operations and reduce our customers' dependence on independent lenders for this source of financing.
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Key housing building materials include wood, wood products, steel, gypsum wallboard, windows, doors fiberglass insulation, carpet, vinyl, fasteners, plumbing materials, aluminum, appliances and electrical items . Fluctuations in the cost of materials and labor may affect gross margins from home sales to the extent that an increase in costs cannot be efficiently matched to the home sal es price. Pricing and availability of certain raw materials have been volatile due to a number of factors in the current environment. We continue to monitor and react to inflation in the cost of these materials by maintaining a focus on our product pricing in response to higher materials costs, but such product pricing increases may lag behind the escalation of such costs. From time to time and to varying degrees, we may experience shortages in the availability of materials and/or labor in the markets in which we operate. Availability of these inputs has not caused significant production halts in the current period, but we have experienced periodic shutdowns in other periods and shortages of primary building materials have caused production inefficiencies as we have needed to change processes in response to the delay in materials. These shortages may also result in extended order backlogs, delays in the delivery of homes and reduced gross margins from home sales.
Our backlog at December 27, 2025 was $160 million compared to $197 million at March 29, 2025, a decrease of $37 million, and a decrease of $64 million compared to $224 million at December 28, 2024.
While it is difficult to predict the future of housing demand, employee availability, supply chain and Company performance and operations, maintaining an appropriately sized and well-trained workforce is key to meeting demand. We continually review the wage rates of our production employees and have established other monetary incentive and benefit programs, with a goal of providing competitive compensation. We are also working to more extensively use web-based recruiting tools, update our recruitment brochures and improve the appearance and appeal of our manufacturing facilities to improve the recruitment and retention of qualified production employees and reduce annualized turnover rates.
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Results of Operations
Net Revenue
Three Months Ended
($ in thousands, except revenue per home sold) December 27,
2025 December 28,
2024 Change
Factory-built housing $ 558,497 $ 500,860 $ 57,637 11.5 %
Financial services 22,497 21,180 1,317 6.2 %
$ 580,994 $ 522,040 $ 58,954 11.3 %
Factory-built homes sold
by Company-owned retail sales centers 1,339 1,075 264 24.6 %
to independent retailers, builders, communities and developers 3,882 3,984 (102) (2.6) %
5,221 5,059 162 3.2 %
Net Factory-built housing revenue per home sold $ 106,971 $ 99,004 $ 7,967 8.0 %
Nine Months Ended
($ in thousands, except revenue per home sold) December 27,
2025 December 28,
2024 Change
Factory-built housing $ 1,629,308 $ 1,445,251 $ 184,057 12.7 %
Financial services 65,070 61,849 3,221 5.2 %
$ 1,694,378 $ 1,507,100 $ 187,278 12.4 %
Factory-built homes sold
by Company-owned retail sales centers 3,549 3,120 429 13.8 %
to independent retailers, builders, communities and developers 12,266 11,573 693 6.0 %
15,815 14,693 1,122 7.6 %
Net Factory-built housing revenue per home sold $ 103,023 $ 98,363 $ 4,660 4.7 %
Factory-built housing Net revenue increased for the three and nine months ended December 27, 2025 due to higher home sales volume and an increase in Net revenue per home sold. The American Homestar acquisition contributed $42.0 million in the current year periods.
Net Factory-built housing revenue per home sold is a volatile metric dependent upon several factors. A primary factor is the price disparity between sales of homes to independent distributors, builders, communities and developers and sales of homes to consumers by Company-owned retail stores. Wholesale sales prices are primarily comprised of the home and the cost to ship the home from a homebuilding facility to the home-site. Retail home prices include these items and retail markup, as well as items that are largely subject to home buyer discretion, including, but not limited to, installation, utility connections, site improvements, landscaping and additional services. Our homes are constructed in one or more floor sections ("modules") which are then installed on the customer's site. Changes in the number of modules per home, the selection of different home types/models and optional home upgrades create changes in product mix, also causing fluctuations in this metric.
For the three and nine months ended December 27, 2025, Financial services Net revenue increased primarily due to higher insurance premiums.
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Gross Profit
Three Months Ended
($ in thousands) December 27,
2025 December 28,
2024 Change
Factory-built housing $ 121,255 $ 118,193 $ 3,062 2.6 %
Financial services 14,666 11,757 2,909 24.7 %
$ 135,921 $ 129,950 $ 5,971 4.6 %
Gross profit as % of Net revenue
Consolidated 23.4 % 24.9 % N/A (1.5) %
Factory-built housing 21.7 % 23.6 % N/A (1.9) %
Financial services 65.2 % 55.5 % N/A 9.7 %
Nine Months Ended
($ in thousands) December 27,
2025 December 28,
2024 Change
Factory-built housing $ 364,593 $ 333,223 $ 31,370 9.4 %
Financial services 35,241 16,251 18,990 116.9 %
$ 399,834 $ 349,474 $ 50,360 14.4 %
Gross profit as % of Net revenue
Consolidated 23.6 % 23.2 % N/A 0.4 %
Factory-built housing 22.4 % 23.1 % N/A (0.7) %
Financial services 54.2 % 26.3 % N/A 27.9 %
In the Factory-built housing segment, Gross profit for the three and nine months ended December 27, 2025 in creased due to an increase in home sales volume and Net revenue per home sold, partially offset by higher costs per unit.
Financial services Gross profit in dollars and as a percentage of Financial services Net revenue increased for the three and nine months ended December 27, 2025 due to higher insurance premiums and lower claim losses. The claim loss reduction resulted from policy underwriting improvements and severe weather events in the prior year periods.
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Selling, General and Administrative Expenses
Three Months Ended
($ in thousands) December 27,
2025 December 28,
2024 Change
Factory-built housing $ 74,162 $ 60,409 $ 13,753 22.8 %
Financial services 7,199 5,571 1,628 29.2 %
$ 81,361 $ 65,980 $ 15,381 23.3 %
Selling, general and administrative expenses as % of Net revenue 14.0 % 12.6 % N/A 1.4 %
Nine Months Ended
($ in thousands) December 27,
2025 December 28,
2024 Change
Factory-built housing $ 203,073 $ 181,569 $ 21,504 11.8 %
Financial services 19,665 16,259 3,406 20.9 %
$ 222,738 $ 197,828 $ 24,910 12.6 %
Selling, general and administrative expenses as % of Net revenue 13.1 % 13.1 % N/A — %
Factory-built housing Selling, general and administrative expenses increased for the three and nine months ended December 27, 2025 due primarily to the addition of American Homestar, which added $6.9 million of incremental expense, as well as acquisition related deal costs of $2.9 million. For the nine months ended December 27, 2025, in addition to the above items, the increase is also due to higher incentive based compensation from higher earnings compared to the prior year period, as well as an additional $1.5 million in deal costs during that period. Total deal costs in the nine months ended December 27, 2025 was $4.4 million.
Financial services Selling, general and administrative expenses for the three and nine months ended December 27, 2025 increased primarily due to increases in compensation year over year.
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Other Components of Net Income
Three Months Ended
($ in thousands) December 27,
2025 December 28,
2024 Change
Interest income $ 2,956 $ 5,353 $ (2,397) (44.8) %
Interest expense (131) (155) (24) (15.5) %
Other income, net 213 168 45 (26.8) %
Income tax expense (13,531) (12,874) 657 5.1 %
Effective tax rate 23.5 % 18.6 % N/A 4.9 %
Nine Months Ended
($ in thousands) December 27,
2025 December 28,
2024 Change
Interest income $ 13,105 $ 16,556 $ (3,451) (20.8) %
Interest expense (407) (370) 37 10.0 %
Other income, net 355 315 40 (12.7) %
Income tax expense (42,059) (33,441) 8,618 25.8 %
Effective tax rate 22.1 % 19.9 % N/A 2.2 %
Interest income consists primarily of interest earned on cash balances held in money market accounts and interest earned on commercial floorplan lending. Interest income is down in the three and nine months ended December 27, 2025 primarily due to lower interest rates on deposited cash and a decrease in cash balances due to the American Homestar acquisition in the three months ended December 27, 2025. I nterest expense consists primarily of interest related to finance leases.
Other income, net primarily consists of realized and unrealized gains and losses on corporate investments and gains and losses from the sale of property, plant and equipment.
Income tax expense increased compared to the prior year period due to higher income before income taxes and a change in the effective tax rate due primarily to fewer energy star credits in the current year as well as certain deal costs that are not deductible for federal income tax purposes.
Liquidity and Capital Resources
We believe that cash and cash equivalents at December 27, 2025, together with cash flow from operations, will be sufficient to fund our operations, cover our obligations and provide for growth for the next 12 months and into the foreseeable future. We maintain cash in U.S. Treasury and other money market funds, some of which is in excess of federally insured limits, but we have not experienced any losses with regards to such excesses. We expect to continue to evaluate potential acquisitions of, or strategic investments in, businesses that are complementary to the Company, as well as other expansion opportunities. Such transactions may require the use of cash and have other impacts on our liquidity and capital resources. We believe we have sufficient liquid resources including our $75 million Revolving Credit Facility, which may be increased from time to time through additional term facilities by up to an aggregate amount of $75 million up to $150 million. No amounts are currently outstanding under the Revolving Credit Facility. Depending on our operating results and strategic opportunities, we may choose to seek additional or alternative sources of financing in the future. There can be no assurance that such financing would be available on satisfactory terms, if at all. If this financing were not available, it could be necessary for us to reevaluate our long-term operating plans to make more efficient use of our existing capital resources at such time. The exact nature of any changes to our plans that would be considered depends on various factors, such as conditions in the Factory-built housing industry and general economic conditions outside of our control.
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State insurance regulations restrict the amount of dividends that can be paid to stockholders of insurance companies. As a result, the assets owned by our insurance subsidiary are generally not available to satisfy the claims of Cavco or its other subsidiaries. We believe that stockholders' equity at the insurance subsidiary remains sufficient and do not believe that the ability to pay ordinary dividends to Cavco at anticipated levels will be restricted per state regulations.
The following is a summary of the Company's cash flows for the nine months ended December 27, 2025 and December 28, 2024, respectively:
Nine Months Ended
(in thousands) December 27,
2025 December 28,
2024 $ Change
Cash, cash equivalents and restricted cash at beginning of the fiscal year $ 375,345 $ 368,753 $ 6,592
Net cash provided by operating activities 200,119 139,851 60,268
Net cash used in investing activities (199,852) (13,976) (185,876)
Net cash used in financing activities (133,140) (116,002) (17,138)
Cash, cash equivalents and restricted cash at end of the period $ 242,472 $ 378,626 $ (136,154)
Net cash provided by operating activities increased primarily from higher Net income, an increase in Deferred income taxes, a decrease in Consumer loans originated compared to the prior year period and decreases in Accounts receivable, net and Inventory. The increase was partially offset by an increase in Commercial loans originated.
Consumer loan originations decreased $11.2 million to $43.0 million for the nine months ended December 27, 2025 from $54.2 million for the nine months ended December 28, 2024, and proceeds from consumer loans decreased $4.3 million to $42.8 million for the nine months ended December 27, 2025 from $47.0 million for the nine months ended December 28, 2024.
Commercial loan originations increased $29.8 million to $117.3 million for the nine months ended December 27, 2025 from $87.5 million for the nine months ended December 28, 2024. Proceeds from the collection on commercial loans provided $110.8 million for the nine months ended December 27, 2025, compared to $85.0 million in the comparable prior year, a net increase of $25.8 million.
The change in Net cash used in investing activities is primarily due to the cash paid for the acquisition of American Homestar and an increase in cash paid for property plant and equipment in the current year.
The change in Net cash used in financing activities was primarily due to the repurchase of a higher number of shares of common stock, which were also at a higher average daily stock price.
Obligations and Commitments. There were no material changes to the obligations and commitments as set forth in the Form 10-K.
Critical Accounting Estimates
There have been no significant changes to our critical accounting estimates during the nine months ended December 27, 2025, as compared to those disclosed in Part II, Item 7 of the Form 10-K, under the heading "Critical Accounting Estimates," which provides a discussion of the critical accounting estimates that management believes are critical to the Company's operating results or may affect significant judgments and estimates used in the preparation of the Company's Consolidated Financial Statements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes from the quantitative and qualitative disclosures about market risk previously disclosed in the Form 10-K.
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Item 4. Controls and Procedures
(a) Disclosure Controls and Procedures
The Company carried out an evaluation, under the supervision and with the participation of the Company's management, including its President and Chief Executive Officer and its Chief Financial Officer, of the effectiveness of its disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, the Company's President and Chief Executive Officer and its Chief Financial Officer concluded that, as of December 27, 2025, its disclosure controls and procedures were effective.
(b) Changes in Internal Control Over Financial Reporting
There has been no change in the Company's internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the fiscal quarter ended December 27, 2025 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
See the information under the "Legal Matters" caption in Note 15, Commitments and Contingencies to the unaudited Consolidated Financial Statements, which is incorporated herein by reference.
Item 1A. Risk Factors
In addition to the other information set forth in this Report, you should carefully consider the factors discussed in Part I, Item 1A, Risk Factors, in the Form 10-K, which could materially affect our business, financial condition or future results. The risks described in this Report and in the Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or future results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
The following table sets forth repurchases of our common stock during the third quarter of fiscal year 2026:
Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs
(in thousands)
September 28, 2025 to November 1, 2025
78,600 $ 543.82 78,600 $ 98,938
November 2, 2025 to November 29, 2025
1,980 535.23 1,980 97,878
November 30, 2025 to December 27, 2025
— — — 97,878
80,580 80,580
The payment of dividends to Company stockholders is subject to the discretion of the Board of Directors, and various factors may prevent us from paying dividends. Such factors include Company cash requirements, covenants of our credit agreement and liquidity or other requirements of state, corporate and other laws.
(1) The stock repurchase plan announced on May 22, 2025 approved $150 million in stock repurchases and there is $98 million remaining as of December 27, 2025 from this approval. This plan does not have an expiration date.
Item 5. Other Information
Rule 10b5-1 Trading Plans
On November 26, 2025 , Allison Aden , the Company's Chief Financial Officer , adopted a programmed plan of transactions intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (the "Aden 10b5-1 Plan"). This plan provides for a first possible trade date of February 25, 2026, and terminates automatically on July 3, 2026 , if not before. The aggregate number of shares to potentially be sold pursuant to the Aden 10b5-1 Plan is up to 3,000 shares of Common Stock.
On December 12, 2025 , Lisa Daniels , an independent director , also adopted a programmed plan of transactions intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (the "Daniels 10b5-1 Plan"). This plan was adopted in order to sell-to-cover a number of shares of our Common Stock to satisfy income tax obligations to be incurred by Ms. Daniels in connection with the anticipated vesting of her restricted stock units on July 28, 2026.
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The Daniels 10b5-1 Plan provides for a first possible trade date of July 30, 2026, and terminates automatically on August 5, 2026 . The aggregate number of shares to be sold pursuant to the plan is 30 shares of our Common Stock.
During the three months ended December 27, 2025, no director or officer of the Company, other than Ms. Aden and Ms. Daniels, adopted , modified, or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K.
Item 6. Exhibits
Exhibit No. Exhibit
31.1
(1) Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Rule 13a-14(a)/15d-14(a)
31.2
(1) Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Rule 13a-14(a)/15d-14(a)
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(2) Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. 1350, Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB Inline XBRL Taxonomy Extension Label Linkbase
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
(1) Filed herewith.
(2) Furnished herewith.
All other items required under Part II are omitted because they are not applicable.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Cavco Industries, Inc.
Registrant
Signature Title Date
/s/ William C. Boor Director, President and Chief Executive Officer January 30, 2026
William C. Boor (Principal Executive Officer)
/s/ Allison K. Aden Executive Vice President, Chief Financial Officer and Treasurer January 30, 2026
Allison K. Aden (Principal Financial Officer)
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.