Cavco Industries, Inc. ( (CVCO) ) has released its Q2 earnings. Here is a breakdown of the information Cavco Industries, Inc. presented to its investors.
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Cavco Industries, Inc., headquartered in Phoenix, is a leading U.S. manufacturer of factory-built homes and park model RVs, operating through a network of independent and company-owned retailers. The company recently reported its second-quarter fiscal 2025 results, showcasing growth in home sales and a new $100 million stock repurchase program.
In the latest quarterly report, Cavco Industries achieved a 12.3% increase in net revenue, reaching $507 million, driven by a 15.7% rise in home sales volume. Despite a slight dip in gross profit percentage for factory-built housing, the company saw its net income per diluted share rise to $5.28 from $4.76 in the previous year. Backlogs also improved, growing by 19% to $276 million.
The company’s factory-built housing segment saw a significant revenue increase, though offset by a decline in revenue per home sold due to fewer sales through company-owned stores. The financial services segment reported net revenue growth from higher insurance premiums, though gross profits were affected by weather-related insurance claims. Cavco’s operating income improved largely due to heightened production aligning with order growth.
Looking ahead, Cavco Industries remains focused on expanding production capacity and strengthening its financial services. The management’s approval of a $100 million stock repurchase program reflects confidence in the company’s future growth prospects, despite challenges like insurance claims and input cost pressures.
