Key Highlights

  • 6.2%: net sales growth to USD 727.0 million in the second quarter of fiscal 2027 at Champion Homes (NYSE:SKY), for the quarter ended September 26, 2026, versus USD 684.4 million a year earlier.
  • USD 0.97: GAAP diluted earnings per share, with adjusted EPS of USD 0.95, on Net Income of USD 52.7 million and adjusted net income of USD 51.9 million.
  • 25.5%: Gross Profit Margin on gross profit of USD 185.6 million, as higher material costs were partly offset by sales growth and better price realization.
  • USD 702.8 million: cash and cash equivalents at September 26, 2026, after the company repurchased and retired USD 50.0 million of stock during the quarter.

Volume and Price Lift Second Quarter Sales to USD 727.0 Million

Champion Homes announced second quarter fiscal 2027 results on November 3, 2026. Net sales rose 6.2% to USD 727.0 million. U.S. homes sold increased 2.3% to 6,724, mainly on higher production rates and more sales from captive retail stores, while average selling price per U.S. home rose 4.1% to USD 102,700 on channel and product mix and improved price realization. Canadian factory-built home sales were 198 against 196. The company makes manufactured and modular homes, ADUs and park models, employs about 9,200 people, runs 46 plants in the U.S. and western Canada and operates 95 retail locations. The CEO said results met expectations and that the company outperformed the housing market.

Margins, Adjusted EBITDA and Inflation in Cost of Sales

Net income was USD 52.7 million, and the company said the decrease from the prior year was mainly driven by inflationary increases in cost of sales. Adjusted gross profit was USD 185.3 million, also a 25.5% margin. SG&A rose to USD 119.8 million from USD 113.1 million, and adjusted SG&A rose 5.4% to USD 118.5 million, or 16.3% of net sales, because of the expanded retail footprint. EBITDA was USD 77.6 million and adjusted EBITDA was USD 76.6 million, a margin of 10.5%. Adjusted figures are non-GAAP measures that exclude items such as Acquisition costs and water intrusion remediation charges, so GAAP and adjusted results should be read side by side.

A USD 500 Million Backlog, Timberline Homes and USD 150 Million of Buyback Room

Backlog increased to approximately USD 500 million, which the company links to order momentum. It also announced the planned acquisition of Timberline Homes to grow its retail channel, and delivered a two-story home called the New Horizon, built to the HUD Code, to the National Mall in September for Homes on the Hill. In October 2026 the board refreshed the repurchase authorization to USD 150.0 million. Risks include material costs, tariffs and trade policy, higher homeowner borrowing rates, housing cyclicality and acquisition integration. The release did not give guidance or the Timberline price. A conference call is set for 8:00 a.m. ET on November 4, 2026.

Where Things Stand

The answer is volume, price and cost control: the quarter was solid on sales and cash, though not on year-over-year profit. Champion Homes (NYSE:SKY) earned USD 0.97 per share, or USD 0.95 adjusted, as sales grew 6.2% and margins held at 25.5% gross, yet net income was lower than a year earlier because cost of sales inflated. Cash of USD 702.8 million gives room for Buybacks and the Timberline deal, and the Backlog of about USD 500 million adds some visibility. The next checks are material costs, retail expansion expenses and how housing Demand responds to borrowing costs.