Nobility Homes, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Third quarter 2026 net sales were $12.1 million, up slightly from $12.0 million in the third quarter of 2025.
• First nine months of fiscal 2026 net sales were $35.1 million, a decrease from $39.0 million for the same period in 2025.
• Third quarter 2026 income from operations was $2.1 million, compared to $2.2 million in the prior year period.
• First nine months of fiscal 2026 income from operations was $6.0 million, down from $7.2 million in the prior year period.
• Third quarter 2026 net income after taxes was $1.9 million, compared to $1.8 million in the prior year period.
• First nine months of fiscal 2026 net income after taxes was $5.3 million, compared to $6.1 million in the prior year period.
• Third quarter 2026 earnings per share (EPS) were $0.60, compared to $0.56 in the prior year period.
• First nine months of fiscal 2026 EPS were $1.66, compared to $1.87 (diluted $1.86) in the prior year period.
• As of August 1, 2026, cash and cash equivalents, certificates of deposit, and short-term investments totaled $25.8 million.
• The company reported no outstanding debt as of the third quarter of 2026.
• Working capital was $44.4 million with a current assets to current liabilities ratio of 7.4:1.
• Stockholders' equity was $58.4 million, with a book value per share of $18.52.
• Total assets were $65.4 million as of August 1, 2026, compared to $67.1 million as of November 1, 2025.
• Total liabilities were $7.0 million as of August 1, 2026, compared to $6.4 million as of November 1, 2025.

Business Segments and Product Lines

• Sales to independent dealers increased to 184 homes in the first nine months of 2026, compared to 129 homes in the same period last year.
• Sales through company-owned retail sales centers decreased to 137 homes in the first nine months of 2026, compared to 195 homes in the same period last year.
• Sales to independent dealers are noted to have lower margins than company-owned retail sales.
• The company operates multiple retail sales centers in Florida and includes an insurance agency subsidiary.

Market and Competitive Landscape

• According to the Florida Manufactured Housing Association, shipments in Florida increased by approximately 6% from November 2025 through July 2026 compared to the same period last year.
• Management views Florida as one of the strongest long-term growth areas in the country.
• The company is the only vertically integrated manufactured home company headquartered in Florida.

Risks and Challenges

• Higher interest rates and economic uncertainty are causing potential customers to delay or defer purchasing decisions or opt for lower-cost homes.
• The company faces delays in receiving key production materials from suppliers, including back orders, price increases, and tariffs.
• Labor shortages and inflation in building products are increasing material costs and causing delays in home completion.
• Specific supply chain issues mentioned include inflation with forest products and supply issues with vinyl siding and PVC piping.
• Risks include competitive pricing pressures, adverse weather conditions, manufacturing plant shutdowns due to storms, and reliance on the Florida economy.
• Forward-looking statements note risks related to global tensions, pandemics, armed conflict, and increased fuel costs.

Management Commentary and Tone

• Terry Trexler, President, stated that total net sales decreased in the first nine months of 2026 due to the shift in sales mix from higher-margin retail centers to lower-margin independent dealers.
• Management expects the current challenges regarding materials, labor, and interest rates to continue throughout fiscal years 2026 and into 2027.
• Management expressed confidence that the company's strong financial position, decades of Florida market experience, and growing demand for affordable housing position the company well for the future.
• The company celebrated its 59th year in business on June 5, 2026.

Other Key Points

• Management will not hold a conference call; inquiries are directed to Terry or Tom Trexler via phone or email.
• The company has been in business for 59 years, specializing in the design and production of quality, affordable manufactured and modular homes.
• The company has operated multiple retail sales centers in Florida for over 36 years.
• The company holds an insurance agency subsidiary.
• The company reported a gain on disposal of property, plant, and equipment of $1,000 for the nine months ended August 1, 2026.
• Undistributed earnings in joint venture Majestic 21 were $57,665 for the nine months ended August 1, 2026, compared to $72,893 in the prior year period.