Cavco Posts Second Straight Record Quarter as Revenue Jumps 17.9% and Backlog Grows

Cavco Industries posted a second straight quarter of record revenue and home sales, with net revenue rising 17.9% to $656.4 million in its fiscal 2027 second quarter, according to the earnings release the manufactured and modular homebuilder filed with an 8-K on Thursday.

Diluted earnings per share rose to $7.17 from $6.55 a year earlier, helped by a one-time $7 million benefit from a returned insurance premium that the company said added $0.70 to per-share results. Net income increased 5.8% to $55.4 million for the quarter ended Sept. 26.

"This is our second consecutive quarter of record revenue and unit volume," President and CEO Bill Boor said in the release. He added that while orders "were off the preceding quarter pace, they remained healthy and backlogs continued to grow."

Volume up, margins thinner

Factory-built homes sold rose 15.3% to 5,972, and net revenue per home sold increased 2.7% to $106,118. Cavco said factory-built housing revenue grew on higher volume, driven by both its American Homestar acquisition in the prior year's third quarter and organic growth, along with higher pricing per home. Capacity utilization held steady at about 75%.

Margins moved the other way. Factory-built housing gross profit as a share of revenue slipped to 21.1% from 22.9%, which the company tied to higher input costs, and consolidated gross margin fell to 22.5% from 24.2%.

Boor said materials inflation "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."

Backlog builds into winter

Backlogs totaled $348 million at quarter-end, representing eight to 10 weeks of production, up $50 million from $298 million at the end of the prior quarter. Boor said the company began to see orders and shipments for data center workforce housing during the quarter, which he said are contributing to backlogs.

He said the backlog "positions us very well going into the seasonally slower winter months with the ability to adjust production depending on order trends."

Lending arm and buybacks

Cavco's financial services segment, which includes its mortgage and insurance businesses, grew net revenue 5.8% to $22.6 million. Its gross margin widened to 60.2% from 55.6% on higher loan sale volume, higher retained insurance premium and lower commissions, the company said.

Income before income taxes rose 9.1% to $73 million. Interest income fell 28.8% to $3.6 million.

For the first six months of the fiscal year, net revenue rose 13.7% to $1.27 billion, while diluted EPS declined to $12.59 from $12.96.

Cavco bought back about $30 million of its stock in the quarter and had $158 million left under its board-authorized repurchase programs at quarter-end.

By the numbers

• $656.4 million: fiscal second-quarter net revenue, up 17.9%
• $7.17: diluted EPS, versus $6.55, including a $0.70 one-time insurance benefit
• 5,972: factory-built homes sold, up 15.3%
• 21.1%: factory-built housing gross margin, down from 22.9%
• $348 million: backlog, up $50 million from the prior quarter

The company scheduled a conference call for 1 p.m. ET on Friday, Oct. 30, to discuss the results.

Sources

1. Cavco Industries Form 8-K with fiscal 2027 second-quarter earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001628280-26-068294)

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