Champion Homes, Inc.
ITEM 1. BUSINESS
General Overview
Champion Homes, Inc., formerly known as Skyline Champion Corporation, an Indiana corporation, and its consolidated subsidiaries are referred to herein as "Champion Homes," "us," "we," "our," the "Company," and any other similar terms, unless otherwise indicated in this Annual Report.
We are a leading producer of factory-built housing in North America with net sales for the year ended March 29, 2025 (“fiscal 2025”) of approximately $2.5 billion. We have more than 70 years of homebuilding experience, approximately 9,000 employees and 48 manufacturing facilities located in 20 states across the United States and three provinces in western Canada. We offer a leading portfolio of manufactured and modular homes, park model RVs, accessory dwelling units (“ADUs”) and modular buildings for the single and multi-family markets. Our facilities are strategically located to serve strong regions in the United States and western Canada. We operated 20 manufacturing facilities in the top ten states with the highest number of manufactured homes shipped in fiscal 2025. We believe that we maintained the following leading positions in the factory-built housing industry in the United States and western Canada (based on units) in calendar year 2024:
We believe our leading positions are driven by our comprehensive product offering, strong brand reputation, broad manufacturing footprint, and our complementary retail, construction services, and logistics businesses. Our market share in the United States total housing market was approximately 2.5% in fiscal 2025.
We design and build a range of manufactured and modular homes, park model RVs, cabins and ADUs. We believe that the high quality and broad scope of our product and service offerings provide us a competitive advantage relative to other factory-built and certain site-built homes. With our award-winning product designs, we seek to meet the needs of our customers, while also providing them with an array of pre-designed options. Our products are marketed and distributed through a network of independent and company-owned retail sales centers, community operators, government agencies, and builder/developers. We build homes under some of the most well-known brand names in the factory-built housing industry including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, J. Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada.
In addition to our core home-building business, we operate a factory-direct manufactured home retail business, marketed under the Regional Homes, Titan Factory Direct and Champion Homes Center brands. We had 72 active sales centers spanning the United States at the end of fiscal 2025. We also provide construction services to install and set-up factory-built homes under the Champion Construction brand, and we operate Star Fleet Trucking, which provides transportation services to the manufactured housing and other industries from several dispatch locations across the United States.
During fiscal 2025, we began lending activities through Champion Financing, our joint venture with Triad Financial Services. Champion Financing provides tailored manufactured housing dealer floor plan and consumer retail financing products. We believe those products make it easier for our customers to acquire financing and own a home, filling a portion of the gap in consumer lending in the manufactured-housing markets.
Our principal executive offices are located at 755 West Big Beaver Road, Suite 1000, Troy, Michigan 48084. Our website is located at www.championhomes.com. Our website and the information contained on our website is not incorporated by reference and is not a part of this Annual Report. We make available on our website, as soon as reasonably practicable, all of the reports required to be filed with the SEC. The SEC also maintains a website (www.sec.gov) containing reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The information on the SEC’s website is not incorporated by reference and is not a part of this Annual Report.
Business Strategy
Our business strategy is designed to drive sustainable long-term growth by delivering high-quality, innovative, and affordable homes while building lasting customer relationships through the home-ownership life cycle. We are focused on enhancing operational excellence, expanding customer engagement, leveraging digital and automation technologies, and executing disciplined growth initiatives. Our strategic priorities are organized around five interconnected pillars:
3
1. Win as a Customer-Centric, High-Performance Agile Team
We are focused on strengthening our operations and culture to be more responsive, agile, and aligned with customer needs. Key initiatives include:
2. Innovate and Differentiate with Products and Services
We continue to invest in product and service innovation to deliver differentiated solutions across customer segments and price points, including:
3. Expand and Elevate Our Go-to-Market Channels, Including Delivering Experiences Before, During, and After the Sale that Earn Customers and Referrals
We are expanding our go-to-market capabilities to provide a seamless, enhanced experience at every stage of the customer journey:
4. Increase Awareness, Demand, and Advocacy for Our Brands, Products, and Services
We are committed to strengthening brand awareness, building customer loyalty, and increasing demand by:
5. Execute the Fundamentals, Efficiently Leverage Our Costs/ Investments in People, Processes, Data, and Technology
We are executing on operational fundamentals and smart resource management to scale efficiently and drive growth:
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. MANAGEMENT’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following should be read in conjunction with Champion Homes, Inc.’s condensed consolidated financial statements and the related notes that appear in Item 1 of this Report.
Overview
Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), is a leading producer of factory-built housing in the U.S. and Canada. The Company serves as a complete solutions provider across complementary and vertically integrated businesses including factory-built home manufacturing, company-owned retail locations, construction services, and transportation logistics services. The Company markets its homes under several nationally recognized brand names including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, J. Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. The Company operates 42 manufacturing facilities throughout the U.S. and four manufacturing facilities in western Canada that primarily construct factory-built, timber-framed, manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. The Company’s retail operations consist of 83 sales centers that sell manufactured homes to consumers across the U.S. The Company’s transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.
Acquisitions, Expansions and Consolidations
The Company is focused on operational improvements to increase capacity utilization and profitability at its existing manufacturing facilities as well as measured expansion of its manufacturing and retail footprint through facility and equipment investments and acquisitions. Those investments will help improve the Company's ability to satisfy demand for affordable housing. During fiscal 2023, robust demand for housing began to slow as inflation and higher interest rates made housing less affordable. That economic environment drove an even greater need for attainable housing solutions. As a result, the Company continues to focus on growing in strong housing markets across the U.S. and Canada, as well as expanding products and services to provide more holistic and affordable solutions to homebuyers.
In May 2025, the Company acquired Iseman Homes which operated 10 retail sales centers across the North Central U.S. This acquisition enhances the Company's ability to strengthen distribution from its nearby manufacturing facilities, furthering the Company’s commitment to integrated growth. In October 2023, the Company acquired Regional Homes, which operated three manufacturing facilities in Alabama and 44 retail sales centers across the Southeast U.S. Regional Homes' strong presence in large HUD markets expanded our captive retail and manufacturing distribution in that region.
In addition to those acquisitions, the Company is also focused on enhancing its U.S. manufacturing production capacity, as well as redeployment of capital and resources through strategic actions at specific plants. During the first half of fiscal 2026, the Company idled production at the Bartow, Florida manufacturing plant and ceased operations at the Kelowna, British Columbia manufacturing plant. The Company believes those actions will ultimately lead to greater operating efficiency and profitability. In addition, the Company sold a previously idled manufacturing facility during the second quarter of fiscal 2026. The Company continues to own six idle manufacturing facilities that could be used for further manufacturing capacity expansion in future periods.
During fiscal 2024, the Company made an equity investment in ECN. The investment, in part, facilitated the creation of a captive finance company in partnership with Triad, a subsidiary of ECN. The captive finance company, Champion Financing, through Triad, provides factory-built home floor plan and consumer loans to manufactured home retailers and homebuyers. The Company believes this offering will provide customers needed financing solutions and improve the Company's market share. On November 13, 2025, ECN entered into a definitive arrangement to be acquired by a private investor group for CAD $3.10 per share, plus any accrued but unpaid dividends. The agreement, which was approved by ECN shareholders in January 2026, is subject to court approval and other customary closing conditions and is expected to close in the first half of fiscal 2027, which will result in the liquidation of the Company's investment in ECN common and preferred shares.
The Company's acquisitions, investments and plant consolidation are part of a strategy to grow and diversify revenue with a focus on increasing the Company’s homebuilding presence in the U.S. as well as improving the results of operations through streamlining production of similar product categories. These acquisitions and investments are included in the Company's consolidated results for periods subsequent to their respective acquisition dates.
Industry and Company Outlook
The need for newly built affordable, single-family housing has continued to drive demand for new homes in the U.S. and Canadian markets. In recent years, manufactured home construction experienced revenue growth due to a number of favorable demographic trends and demand drivers in the United States, including underlying growth trends in key homebuyer groups, such as the population over 55 years of age, the population of first-time home buyers, and the population of households earning less than $60,000 per year.
18
The Company's manufacturing backlog decreased to $266.0 million as of December 27, 2025 compared to $312.6 million as of December 28, 2024. The decrease in backlog is a function of production rates exceeding order rates during the three months ended December 27, 2025, compared to the same period in the prior last year.
For the nine months ended December 27, 2025, approximately 86.7% of the Company’s U.S. manufacturing sales were generated from the manufacture of homes that comply with the U.S. Department of Housing and Urban Development ("HUD") code construction standard in the U.S. Industry shipments of HUD-code homes are reported on a one-month lag. According to data reported by the Manufactured Housing Institute, HUD-code industry home shipments were 69,757 and 71,968 units during the eight months ended November 30, 2025 and 2024, respectively. Based on industry data, the Company’s U.S. wholesale market share of HUD code homes sold was 22.5% and 22.2%, for the eight months ended November 30, 2025 and 2024, respectively. Annual HUD-code industry shipments have generally increased since calendar year 2009 when only 50,000 HUD-coded manufactured homes were shipped, the lowest level since the industry began recording statistics in 1959. While shipments of HUD-coded manufactured homes have improved modestly in recent years, current manufactured housing shipments are still at lower levels than the long-term historical average of over 200,000 units per year. Manufactured home sales represent approximately 9% of all U.S. single family home starts. Our estimated market share in the U.S. total housing market, based on data through October 2025, was approximately 2.8% and 2.5% for the nine months ended December 27, 2025 and December 28, 2024, respectively.
UNAUD
ITED RESULTS OF OPERATIONS FOR THE THIRD QUARTER OF FISCAL 2026 VS. 2025
|
Three months ended |
|
|||||
(Dollars in thousands) |
December 27, 2025 |
|
|
December 28, 2024 |
|
||
Income Statements Data: |
|
|
|
|
|
||
Net sales |
$ |
656,614 |
|
|
$ |
644,925 |
|
Cost of sales |
|
484,421 |
|
|
|
463,903 |
|
Gross profit |
|
172,193 |
|
|
|
181,022 |
|
Selling, general, and administrative expenses |
|
109,727 |
|
|
|
108,214 |
|
Operating income |
|
62,466 |
|
|
|
72,808 |
|
Interest (income), net |
|
(3,779 |
) |
|
|
(3,991 |
) |
Other (income) |
|
(1,221 |
) |
|
|
(2,158 |
) |
Income before income taxes |
|
67,466 |
|
|
|
78,957 |
|
Income tax expense |
|
12,375 |
|
|
|
16,698 |
|
Net income before equity in net (income) of affiliates |
|
55,091 |
|
|
|
62,259 |
|
Equity in net (income) of affiliates |
|
(913 |
) |
|
|
(568 |
) |
Net income |
$ |
56,004 |
|
|
$ |
62,827 |
|
Net income attributable to non-controlling interest |
|
1,668 |
|
|
|
1,290 |
|
Net income attributable to Champion Homes, Inc. |
$ |
54,336 |
|
|
$ |
61,537 |
|
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
||
Net income attributable to Champion Homes, Inc. |
$ |
54,336 |
|
|
$ |
61,537 |
|
Income tax expense |
|
12,375 |
|
|
|
16,698 |
|
Interest (income), net |
|
(3,779 |
) |
|
|
(3,991 |
) |
Depreciation and amortization |
|
12,265 |
|
|
|
10,673 |
|
Equity in net (income) of ECN |
|
(1,176 |
) |
|
|
(656 |
) |
Transaction costs |
|
438 |
|
|
|
— |
|
Other |
|
319 |
|
|
|
(1,000 |
) |
Adjusted EBITDA |
$ |
74,778 |
|
|
$ |
83,261 |
|
As a percent of net sales: |
|
|
|
|
|
||
Gross profit |
|
26.2 |
% |
|
|
28.1 |
% |
Selling, general, and administrative expenses |
|
16.7 |
% |
|
|
16.8 |
% |
Operating income |
|
9.5 |
% |
|
|
11.3 |
% |
Net income attributable to Champion Homes, Inc. |
|
8.3 |
% |
|
|
9.5 |
% |
Adjusted EBITDA |
|
11.4 |
% |
|
|
12.9 |
% |
19
NET SALES
The following table summarizes net sales for the three months ended December 27, 2025 and December 28, 2024:
|
Three months ended |
|
|
|
|
|||||||
(Dollars in thousands) |
December 27, 2025 |
|
|
December 28, 2024 |
$ |
|
% |
|
||||
Net sales |
$ |
656,614 |
|
|
$ |
644,925 |
$ |
11,689 |
|
|
1.8 |
% |
U.S. manufacturing and retail net sales |
$ |
622,364 |
|
|
$ |
610,757 |
$ |
11,607 |
|
|
1.9 |
% |
U.S. homes sold |
|
6,270 |
|
|
|
6,437 |
|
(167 |
) |
|
(2.6 |
%) |
U.S. manufacturing and retail average home selling price |
$ |
99.3 |
|
|
$ |
94.9 |
$ |
4.4 |
|
|
4.6 |
% |
Canadian manufacturing net sales |
$ |
25,790 |
|
|
$ |
25,692 |
$ |
98 |
|
|
0.4 |
% |
Canadian homes sold |
|
215 |
|
|
|
209 |
|
6 |
|
|
2.9 |
% |
Canadian manufacturing average home selling price |
$ |
120.0 |
|
|
$ |
122.9 |
$ |
(2.9 |
) |
|
(2.4 |
%) |
Corporate/Other net sales |
$ |
8,460 |
|
|
$ |
8,476 |
$ |
(16 |
) |
|
(0.2 |
%) |
U.S. manufacturing facilities in operation at end of period |
|
42 |
|
|
|
43 |
|
|
|
|
||
U.S. retail sales centers in operation at end of period |
|
83 |
|
|
|
72 |
|
|
|
|
||
Canadian manufacturing facilities in operation at end of period |
|
4 |
|
|
|
5 |
|
|
|
|
||
Net sales for the three months ended December 27, 2025 were $656.6 million, an increase of $11.7 million, or 1.8%, compared to the three months ended December 28, 2024. The following is a summary of the change by operating segment.
U.S. Factory-built Housing:
Net sales for the Company’s U.S. manufacturing and retail operations increased by $11.6 million, or 1.9%, for the three months ended December 27, 2025 compared to the three months ended December 28, 2024. The increase was due to a 4.6% increase in the average selling price per new home partially offset by a 2.6% decrease in new homes sold. The increase in average selling price was due primarily to a shift in mix to more multi-wide units and increased pricing at our company-owned retail sales centers. The decrease in new homes sold was due to lower production.
Canadian Factory-built Housing:
The Canadian Factory-built Housing segment net sales increased by $0.1 million, or 0.4% for the three months ended December 27, 2025 compared to the same period in the prior fiscal year, primarily due to a 2.9% increase in homes sold offset by a 2.4% decrease in average home selling price. The increase in homes sold was due to higher demand in certain markets. The decrease in average selling price was due to product mix. On a constant currency basis, net sales for the Canadian segment were unfavorably impacted by approximately $0.4 million due to fluctuations in the translation of the Canadian dollar to the U.S. dollar during the three months ended December 27, 2025 as compared to the same period of the prior fiscal year.
Corporate/Other:
Net sales for Corporate/Other includes the Company’s transportation business, financing activities, and the elimination of intersegment sales. Net sales were consistent for the three months ended December 27, 2025 and December 28, 2024.
GROSS PROFIT
The following table summarizes gross profit for the three months ended December 27, 2025 and December 28, 2024:
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-03-06 | KIMMELL JOSEPH A. | EVP, Operations | Sell | -2,880 | $82.25 | -$236,880 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-05-31 10-K expected by 2026-06-01 (in 6 days)
- ~2026-08-05 10-Q expected by 2026-08-07 (in 72 days)
- ~2026-11-04 10-Q expected by 2026-11-06 (in 163 days)
- ~2027-02-03 10-Q expected by 2027-02-05 (in 254 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-04-27 8-K Other Events
- 2026-03-03 8-K Officer/Director Change
- 2026-02-04 10-Q Quarterly Report
- 2026-02-03 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-12-02 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-11-14 8-K Other Events
- 2025-11-12 8-K Officer/Director Change
- 2025-11-05 10-Q Quarterly Report
- 2025-11-04 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-08-15 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-08-06 10-Q Quarterly Report
- 2025-08-05 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-07-29 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
- 2025-05-30 8-K Other Events; Financial Statements and Exhibits
- 2025-05-27 10-K Annual Report