Earnings

Legacy Housing Product Sales Growth Accelerates

The Tip Desk · November 11, 2026 · 3 min read

Product sales reached $55.2 million in the third quarter as workforce housing contributed $30.6 million and net income rose to $0.85 a share.

Legacy Housing (LEGH), a manufacturer of factory-built homes, reported that product sales growth accelerated in the third quarter of 2026 as workforce housing contributed $30.6 million of product sales, compared with approximately $25.5 million in the second quarter.

Total net revenue was $69.7 million for the three months ended September 30, 2026, up 72.2% from the year-ago quarter, after a 32.3% year-over-year increase in the second quarter. Net income was $20.1 million, or $0.85 a share, compared with $8.6 million, or $0.35 a share, a year earlier.

Product sales were $55.2 million, up 91.7% from the year-ago quarter, after a 40.0% year-over-year increase in the prior quarter. The company said the increase was driven primarily by workforce housing sales, together with higher retail store and other product sales, partially offset by lower inventory finance, direct and commercial sales. Workforce housing contributed $30.6 million of product sales in the quarter, compared with $2.3 million in the year-ago period.

The company sold 635 units, up 51.2% from 420 a year earlier, after a 27.3% year-over-year increase in the second quarter. Net revenue per unit rose to $86.9 thousand from $68.5 thousand. The company said the per-unit increase reflected a shift in product mix, as workforce housing units are larger, higher-specification and more complex to build than traditional homes.

Gross margin on product sales improved to 36.9% from 20.2% in the year-ago quarter. The company said the improvement reflected the mix shift, including workforce housing units, and price increases implemented during 2026, and that third-quarter 2025 gross margin was also reduced by tariffs and higher raw material costs. Income from operations was $23.4 million.

Inventory finance sales decreased $3.2 million, or 51.6%, from the year-ago quarter, after a 73.6% year-over-year decline in the second quarter. The company said the decrease reflected weaker dealer demand and fewer new dealers joining the inventory finance program. Retail store sales increased $1.1 million, or 17.7%, as Heritage Housing stores discounted 2026 and earlier model-year inventory to make room for 2027 models, which began shipping to dealers in July 2026. Other product sales increased $1.8 million, or 96.2%. Direct sales decreased $0.9 million, or 42.1%, and commercial sales decreased $0.6 million, or 6.3%.

Other revenue was $3.2 million, up 300.0% from the year-ago quarter, primarily due to a gain on the sale of a mobile home park the company had acquired as collateral in settlement of notes receivable. Consumer, MHP and dealer loans interest income increased $0.4 million, or 4.0%. Provision for loan loss was $2.1 million.

During 2026, the company entered two agreements with a single customer to manufacture and deliver workforce housing units in Texas. It expects to deliver substantially all remaining units under those agreements by the end of the first quarter of 2027, which will complete deliveries under them. The company said workforce housing is receiving significant attention across its market areas and that it believes there is a meaningful opportunity for additional orders of that type.

Inventories decreased slightly by $0.2 million to $39.6 million as of September 30, 2026. The company ended the quarter with $30.8 million in cash, $5.3 million in short-term investments, and no borrowings outstanding under its $50.0 million revolving credit facility.

On August 13, 2026, the board appointed Kenneth E. Shipley, a co-founder, as Chairman of the Board and Chief Executive Officer after Curtis D. Hodgson retired as Executive Chairman. Shipley now serves as the company’s sole chief operating decision maker. The change did not affect the company’s single reportable segment.