Cavco Industries — Fiscal 2027 Second Quarter Earnings Summary

Financial Performance:

• Net revenue for the quarter ended September 26, 2026, was $656.4 million, a 17.9% increase from $556.5 million in the prior year quarter.
• Net revenue for the six months ended September 26, 2026, was $1,266.3 million, a 13.7% increase from $1,113.4 million in the prior year period.
• Factory-built housing revenue was $633.7 million for the quarter (up 18.4% YoY) and $1,219.7 million for the six months (up 13.9% YoY).
• Financial services revenue was $22.6 million for the quarter (up 5.8% YoY) and $46.6 million for the six months (up 9.5% YoY).
• Factory-built housing gross profit margin was 21.1% for the quarter, down from 22.9% in the prior year; financial services gross profit margin was 60.2%, up from 55.6%.
• Consolidated gross profit margin was 22.5% for the quarter, down from 24.2% in the prior year.
• Income before income taxes was $73 million, up 9.1% from $67 million in the prior year quarter.
• Net income was $55.4 million for the quarter, up 5.8% from $52.4 million in the prior year; diluted net income per share was $7.17, up 9% from $6.55.
• Net income for the six months was $97.7 million, down 6.1% from $104.0 million in the prior year; diluted net income per share was $12.59, down 2.9% from $12.96.
• Selling, general and administrative expenses were $77.7 million for the quarter, up 7.6% from $72.2 million in the prior year, including a one-time $7 million benefit from a return of insurance premium.
• Cash and cash equivalents were $271.9 million as of September 26, 2026, compared to $236.7 million as of March 28, 2026.
• Total assets were $1,611.5 million as of September 26, 2026, compared to $1,491.1 million as of March 28, 2026.
• Total liabilities were $474.5 million as of September 26, 2026, compared to $388.0 million as of March 28, 2026.
• Stockholders' equity was $1,137.0 million as of September 26, 2026, compared to $1,103.2 million as of March 28, 2026.

Guidance and Future Outlook:

• Management expects materials inflation to continue and remain a challenge going forward.
• The company is positioned to adjust production depending on order trends during the seasonally slower winter months.
• Federal and state-level support through the ROAD to Housing Act and other reforms is expected to open opportunities for factory-built housing in the years ahead.

Business Segments and Product Lines:

• Home sales volume increased 15.3% in the quarter, with capacity utilization remaining consistent at approximately 75%.
• Net factory-built housing revenue per home sold was $106,118 for the quarter, up 2.7% from $103,344 in the prior year.
• Factory-built modules sold were 9,794 for the quarter (up 12.6% YoY) and 19,301 for the six months (up 9.7% YoY).
• Factory-built homes sold were 5,972 for the quarter (up 15.3% YoY) and 11,629 for the six months (up 9.8% YoY).
• Backlogs totaled $348 million at the end of the quarter, representing 8-10 weeks of production, up $50 million sequentially from $298 million.
• The company began seeing data center workforce housing orders and shipments during the quarter.
• Cavco's Grande Arbor, the first off-chassis HUD-Code home, was shown at HUD's Innovative Housing Showcase in Washington DC.
• American Homestar acquisition contributed to organic volume growth in the factory-built housing segment.

Market and Competitive Landscape:

• Cavco is one of the largest manufactured and modular home builders in the United States based on reported wholesale shipments.
• The company is a leading producer of park model RVs, vacation cabins, and factory-built commercial structures.
• Financial services segment growth was driven by increased loan sale volume and higher retained insurance premium.

Risks and Challenges:

• Materials inflation is expected to remain a challenge.
• Forward-looking statements note risks including customer demand, financing availability, labor shortages, raw material pricing/availability, local or national emergencies, health and safety incidents, warranty claims, sales cancellations, IT failures, cyber incidents, data security, regulatory compliance, and litigation.

Management Commentary and Tone:

• President and CEO Bill Boor stated this was the second consecutive quarter of record revenue and unit volume.
• Orders were off the preceding quarter pace but remained healthy, and backlogs continued to grow.
• Selling price increases during Q2 were in excess of cost pressures, resulting in a small sequential gross margin improvement.
• Management expressed confidence in the company's ability to adjust production based on order trends.

Other Key Points:

• Stock repurchases were approximately $30 million in the quarter.
• $158 million remains available for repurchases under previously announced Board authorizations at the end of the second quarter.
• The one-time $7 million benefit from a return of insurance premium related to additional D&O insurance purchased in 2019 favorably impacted net income per diluted share by $0.70.
• Capital expenditures were $29.7 million for the quarter and $55.2 million for the six months.
• A conference call to review results was scheduled for October 30, 2026, at 1:00 p.m. Eastern Time.