Champion Homes, Inc. (NYSE:SKY) is a leading producer of factory-built housing in the United States and Canada, serving as a complete solutions provider across complementary and vertically integrated businesses. The company operates 43 manufacturing facilities throughout the U.S. and 5 in western Canada, primarily constructing factory-built, timber-framed, manufactured and modular houses. Champion Homes' retail operations consist of 72 sales centers that sell manufactured homes to consumers across the U.S., and its transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.
Company History
Champion Homes has a rich history dating back to its founding in 1974 under the name Skyline Homes. Over the decades, the company has grown through a combination of organic expansion and strategic acquisitions. In its early years, Champion Homes focused on manufacturing and selling manufactured and modular homes primarily through independent retailers. The company gradually expanded its footprint, opening new manufacturing facilities throughout the U.S. and Canada to meet growing demand. During the 1990s and 2000s, Champion Homes diversified its business by adding company-owned retail locations and transportation logistics services.
The company has faced its share of challenges over the years. During the late 2000s, the housing market downturn significantly impacted Champion Homes, as it did many other home builders. However, the company successfully navigated that difficult period through operational improvements and strategic adjustments. More recently, Champion Homes has addressed product quality issues related to water intrusion, working diligently to implement a comprehensive remediation plan approved by HUD.
Product Portfolio
Today, Champion Homes operates a diverse portfolio of nationally recognized brands, including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., as well as Moduline and SRI Homes in western Canada. This breadth of brands allows the company to serve a wide range of customer preferences and price points across the manufactured and modular housing markets.
Financials
Champion Homes' financial performance has been strong in recent years, with the company reporting solid revenue and earnings growth. In the fiscal year ended March 31, 2024, the company generated revenue of $2.02 billion and net income of $146.7 million, representing a net profit margin of 7.3%. The company's balance sheet remains healthy, with $495.1 million in cash and cash equivalents and $115.9 million in total debt as of March 31, 2024.
For the most recent quarter (Q3 2025), Champion Homes reported revenue of $644.9 million, an increase of 15.3% compared to the same quarter last year. Net income for the quarter rose 31% to $61.5 million. The increase in revenue was driven by a 14.1% increase in the number of U.S. homes sold and a 2.8% increase in the average selling price per U.S. home. Gross profit margin expanded by 280 basis points to 28.1% due to higher sales volumes through the company's retail channel and lower input costs.
Champion Homes operates in two reportable segments: U.S. Factory-built Housing and Canadian Factory-built Housing. For the nine months ended December 28, 2024, the U.S. segment generated $1.80 billion in net sales, an increase of 30.4% compared to the same period in the prior year. This growth was primarily due to the inclusion of $447.3 million in net sales from the acquisition of Regional Homes in October 2023. The number of homes sold in this segment increased by 26.3%, while the average home selling price rose 3.3%.
The Canadian Factory-built Housing segment generated $68.7 million in net sales for the nine months ended December 28, 2024, a decrease of 20.3% compared to the same period in the prior year. This decline was primarily due to a 20.9% decrease in the number of homes sold, reflecting slowing demand in the Canadian market.
Overall, Champion Homes' consolidated net sales for the nine months ended December 28, 2024 were $1.89 billion, an increase of 26.9% compared to the same period in the prior year. Gross profit increased by 32% to $511.6 million, with the gross margin expanding to 27.1% from 26%.
Liquidity
As of December 28, 2024, Champion Homes had $582.8 million in cash and cash equivalents and $24.7 million in long-term debt. The company's debt-to-equity ratio stands at 0.016, indicating a strong financial position. Champion Homes also has a $200 million revolving credit facility, of which $168.5 million was available for borrowing at the end of Q3 2025. The company's current ratio of 2.59 and quick ratio of 1.74 further demonstrate its solid liquidity position.
Operational Improvements and Strategic Expansion
One of the key drivers of Champion Homes' success has been its focus on operational improvements and strategic expansion. The company has invested in increasing capacity utilization at its existing manufacturing facilities, as well as targeted acquisitions to expand its geographic footprint and product offerings. In October 2023, Champion Homes acquired Regional Homes, which operated three manufacturing facilities in Alabama and 44 retail sales centers across the Southeast U.S. This acquisition has strengthened Champion Homes' presence in key HUD markets and enhanced its vertically integrated manufacturing and retail platform.
Innovation and Customer Experience
In addition to its acquisition strategy, Champion Homes has also been proactive in developing new products and enhancing its customer experience. The company has invested in its digital capabilities to improve its direct-to-consumer offerings and provide a seamless customer journey, from the initial purchase to post-sale support. Champion Homes has also been expanding its presence in the builder/developer channel, working with federal, state, and local officials to address the ongoing need for affordable housing solutions.
Market Position and Future Outlook
Looking ahead, Champion Homes remains well-positioned to capitalize on the growing demand for affordable, energy-efficient housing in the U.S. and Canada. The company's diverse product portfolio, vertically integrated business model, and focus on innovation and customer experience position it as a leader in the manufactured and modular housing industry.
For the fiscal fourth quarter of 2025, Champion Homes expects revenue to increase by low double-digits compared to the same quarter last year, which is in line with pre-earnings fourth quarter consensus. The company anticipates a sequential moderation in revenue from the third quarter, which aligns with their typical slower winter selling season. Champion Homes is closely monitoring the dynamic tariff environment and has an agile playbook to address any potential impacts. The company is also prepared to further scale production to meet order demand as they enter the early stages of the spring selling season.
Challenges and Risks
However, Champion Homes is not without its challenges. The company operates in a highly competitive and cyclical industry, with fluctuations in housing demand, material costs, and interest rates posing risks to its financial performance. The company is also subject to extensive regulation in the production and sale of factory-built housing, which could impact its operations and profitability.
Additionally, Champion Homes has faced some product liability issues in the past, such as the water intrusion claims it addressed in fiscal 2024. While the company has taken steps to remediate the issue and believes it may be able to recover some of the associated costs, such product quality concerns could pose reputational and financial risks if not properly managed.
Management and Adaptability
Despite these challenges, Champion Homes' management team has demonstrated a strong track record of navigating industry cycles and adapting to changing market conditions. The company's focus on operational excellence, strategic growth, and customer-centric innovation has been a key differentiator in the highly competitive manufactured and modular housing industry.
Industry Trends
The manufactured housing industry has seen modest growth in recent years, with annual HUD-code home shipments increasing from a low of 50,000 units in 2009 to over 70,000 units in the most recent 12-month period. Manufactured homes represent around 9% of all U.S. single-family home starts. The need for affordable housing continues to drive demand for new manufactured homes, providing a favorable backdrop for Champion Homes' growth prospects.
Conclusion
In conclusion, Champion Homes is a well-established and diversified player in the affordable housing market, with a history of innovation, strategic acquisitions, and a commitment to delivering high-quality homes and customer experiences. The company's strong financial performance, healthy balance sheet, and strategic positioning in both the U.S. and Canadian markets underscore its potential for continued growth. While the company faces industry-specific risks and challenges, its experienced management team, focus on operational efficiency, and ability to adapt to changing market conditions position it well to capitalize on the growing demand for affordable housing solutions in the years ahead.