Champion Homes (SKY) Q4 2026: Mixed Results with Revenue Growth but Profit Decline — Cautiously Optimistic

Champion Homes, Inc. (NYSE: SKY) reported its fourth quarter and full-year fiscal 2026 results, revealing a mixed performance characterized by revenue growth but a decline in net income.

Key Findings

• Fourth Quarter Revenue: Net sales increased by $27.4 million or 4.6% YoY to $621.3 million.
• Fourth Quarter Net Income: Decreased by $6.7 million or 18.4% YoY to $29.7 million.
• Full Year Revenue: Increased by $179.6 million or 7.3% YoY to $2.7 billion.
• Full Year Net Income: Increased by $8.5 million or 4.3% YoY to $206.9 million.

Analyst Opinion

This quarter presents a mixed bag for shareholders. While the revenue growth in both the fourth quarter and the full year is a positive sign, the significant decline in net income for Q4 raises concerns about profitability. The decrease in net income was primarily attributed to charges related to the change in fair value of acquisition contingent consideration and product liability true-up. However, the overall increase in full-year net income suggests that the company is still on a growth trajectory, albeit with some volatility in quarterly performance.

Detailed Metrics

• Fourth Quarter Highlights:
  • Net Sales: $621.3 million, up 4.6% from $593.9 million in Q4 FY25.
  • Net Income: $29.7 million, down 18.4% from $36.3 million in Q4 FY25.
  • Adjusted Net Income: Increased 0.8% to $37.7 million.
  • Adjusted EBITDA: Increased 6.3% to $55.9 million.
  • Earnings Per Share (EPS): $0.53, down from $0.63 in Q4 FY25; adjusted EPS was $0.68.
• Full Year Highlights:
  • Net Sales: $2.7 billion, up 7.3% from $2.5 billion in FY25.
  • Net Income: $206.9 million, up 4.3% from $198.4 million in FY25.
  • Adjusted Net Income: Increased 6.2% to $217.4 million.
  • Adjusted EBITDA: Increased 8.1% to $308.2 million.
  • EPS: $3.66, up from $3.42 in FY25; adjusted EPS increased 9.4% to $3.85.
• Backlog: Decreased 8.0% year-over-year but increased 18.8% sequentially to $316.0 million.

Shareholder Returns and Guidance

Champion Homes repurchased and retired $50.0 million of its common stock during the fourth quarter and $200.0 million for the full fiscal year. The Board of Directors has refreshed the share repurchase authorization to allow for an additional $150 million in potential future repurchases. This indicates a commitment to returning value to shareholders, which is a positive signal.

Forward-Looking Catalysts

Investors should watch for the company’s performance in the upcoming quarters, particularly how it manages its backlog and addresses the challenges that led to the decline in net income. Additionally, the impact of the refreshed share repurchase program and any strategic initiatives stemming from the acquisition of Homes Direct will be crucial in shaping future results. The company’s ability to navigate the macroeconomic environment and maintain its growth trajectory will be key areas of focus for investors moving forward.

CHAMPION HOMES, INC. CONSOLIDATED INCOME STATEMENTS (Unaudited, dollars in thousands, except per share amounts)

Note: All amounts are in thousands.

	Three Months Ended	Twelve Months Ended
March 28, 2026	29, 2025	March 28, 2026
Net sales	$ 621,278	$ 2,663,…
Cost of sales	466,914	1,959,…
Gross profit	154,364	704,319
Selling, general and admin expenses	118,401	452,554
Operating income	40,058	270,571
Income tax expense	8,132	56,757
Net income before equity in net income	32,105	214,196
Net income	$ 29,676	$ 206,898
Net income per share: Basic	$ 0.54	$ 3.68
Net income per share: Diluted	$ 0.53	$ 3.66

CHAMPION HOMES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited, dollars in thousands)

Note: All amounts are in thousands.

	March 28, 2026	March 29, 2025
ASSETS
Current assets:
Cash and cash equivalents	$ 638,259	$ 610,338
Trade accounts receivable, net	88,810	84,103
Inventories, net	358,313	360,629
Other current assets	42,836	31,428
Total current assets	1,128,218	1,086,498
Long-term assets:
Property, plant, and equipment, net	314,197	307,140
Goodwill	365,151	357,973
Amortizable intangible assets, net	55,815	64,712
Deferred tax assets	23,456	37,998
Other noncurrent assets	244,709	256,087
Total assets	$ 2,131,546	$ 2,110,408
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Floor plan payable	$ 94,649	$ 106,091
Accounts payable	70,546	65,136
Other current liabilities	290,147	280,081
Total current liabilities	455,342	451,308
Long-term liabilities:
Long-term debt	14,440	24,773
Deferred tax liabilities	8,445	7,350
Other liabilities	80,382	82,539
Total long-term liabilities	103,267	114,662
Stockholders' Equity:
Common stock	1,521	1,584
Additional paid-in capital	611,934	586,941
Retained earnings	975,947	975,981
Accumulated other comprehensive loss	(16,465)	(20,068)
Total stockholders’ equity	1,572,937	1,544,438
Total liabilities and stockholders' equity	$ 2,131,546	$ 2,110,408

Disclaimer

The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.