Cavco Extends Record Revenue Streak as Growth Reaccelerates

The Tip Desk · November 1, 2026 · 4 min read

Net revenue reached $656.4 million in the fiscal second quarter, up 17.9% from a year earlier, after a 9.5% year-over-year rise in the prior quarter.

Cavco Industries, Inc. (CVCO), the Phoenix-based manufacturer of manufactured and modular homes, reported net revenue of $656.4 million for the fiscal second quarter ended September 26, 2026, up 17.9% from $556.5 million a year earlier. That year-over-year pace more than doubled the 9.5% increase to $610 million recorded in the fiscal first quarter. President and Chief Executive Officer Bill Boor said it was the company’s second consecutive quarter of record revenue and unit volume.

Factory-built housing net revenue was $633.7 million, up 18.4% from $535.1 million a year earlier. Homes sold rose to 5,972, up 15.3% from 5,178 a year earlier, after a 4.4% year-over-year increase to 5,657 in the prior quarter. Net factory-built housing revenue per home sold was $106,118, up 2.7% from $103,344 a year earlier. The company said the factory-built housing increase reflected higher home sales volume from the American Homestar acquisition in the third quarter of the prior year and organic volume growth, as well as higher net revenue per home. Capacity utilization remained about 75% year over year.

Financial services net revenue was $22.6 million. The company said that segment’s revenue rose on higher loan-sale volume and higher retained insurance premium net of reinsurance. Financial services gross profit as a percentage of net revenue was 60.2%, compared with 55.6% a year earlier. Gross profit in that segment increased primarily on loan-sale volume, higher retained insurance premium net of reinsurance premium and lower commissions on insurance policies written, the company said.

Factory-built housing gross profit as a percentage of net revenue was 21.1%, down from 22.9% a year earlier. Boor said materials inflation continued and is expected to remain a challenge going forward, but that in the second quarter selling-price increases were in excess of cost pressures, resulting in a small sequential gross-margin improvement from 20.8% in the prior quarter. Consolidated gross profit as a percentage of net revenue was 22.5%, down from 24.2% a year earlier. Factory-built housing gross profit dollars were $134.0 million, up 9.4% from $122.5 million a year earlier; the company said the dollar increase came from higher volume and net revenue per home, partially offset by higher input costs.

Income from operations was $69.9 million, up 12.4% from $62.2 million a year earlier, with factory-built housing operating income of $64.4 million and financial services operating income of $5.6 million. Income before income taxes was $73 million, up 9.1% from $67 million a year earlier, after a 14.6% year-over-year decline to $55.8 million in the prior quarter. Diluted net income per share was $7.17, up 9% from $6.55 a year earlier. Selling, general and administrative expenses included a one-time $7 million benefit from a return of insurance premium related to additional D&O insurance purchased in 2019, which the company said favorably impacted diluted EPS by $0.70.

Backlogs totaled $348 million at quarter-end, representing 8–10 weeks of production, up $50 million sequentially from $298 million at the end of the prior quarter. Boor said orders were off the preceding-quarter pace but remained healthy, and that the company began to see data-center workforce housing orders and shipments during the quarter, contributing to backlogs. He said the backlog position leaves the company able to adjust production depending on order trends through the seasonally slower winter months.

Stock repurchases were approximately $30 million in the quarter, leaving $158 million available under previously announced Board authorizations. Cash and cash equivalents were $271.9 million at September 26, 2026. Boor also said Cavco showed its Grande Arbor, the first off-chassis HUD-Code home, at HUD’s Innovative Housing Showcase in Washington, D.C., and that increasing federal and state-level support through the ROAD to Housing Act and other reforms will be opening opportunities for factory-built housing.