Champion Homes Posts Mixed Q3 Results, Expands Buyback

Champion Homes ( (SKY) ) has shared an update.

Champion Homes reported third-quarter fiscal 2026 results on February 3, 2026, showing modest top-line growth but softer profitability for the period ended December 27, 2025. Net sales rose 1.8% year on year to $656.6 million, driven in part by a 4.6% increase in average selling price per U.S. home to $99,300 and stronger Canadian factory-built home volumes, even as U.S. homes sold fell 2.6% and backlog declined 15.1% from the prior quarter. Higher materials costs and lower volume absorption weighed on margins, with gross margin contracting 190 basis points to 26.2%, net income falling 11.7% to $54.3 million, and adjusted EBITDA down 10.2% to $74.8 million, while adjusted EBITDA margin slid to 11.4%. The company generated $100 million in operating cash flow, ended the quarter with $659.8 million in cash and cash equivalents, and repurchased $50 million of stock, after which the board moved on January 29, 2026 to increase the share repurchase authorization to restore available capacity to $150 million, underscoring continued balance-sheet strength and an ongoing commitment to returning capital to shareholders despite a challenging demand environment and margin pressure.

The most recent analyst rating on (SKY) stock is a Buy with a $89.00 price target. To see the full list of analyst forecasts on Champion Homes stock, see the SKY Stock Forecast page.

Spark’s Take on SKY Stock

According to Spark, TipRanks’ AI Analyst, SKY is a Outperform.

Champion Homes’ strong financial performance and strategic initiatives are the most significant factors driving the stock score. The company’s robust balance sheet and efficient cash flow management provide a solid foundation. Technical indicators suggest a positive trend, while the valuation remains reasonable. The earnings call highlights growth opportunities and challenges, with legislative support potentially opening new markets.

To see Spark’s full report on SKY stock, click here.

More about Champion Homes

Champion Homes, Inc. (NYSE: SKY) is a leading North American producer of factory-built housing, offering manufactured and modular homes, ADUs, park-models and modular buildings for single-family, multi-family and hospitality markets. With 46 manufacturing facilities in the U.S. and western Canada, a factory-direct retail network of 83 locations, construction services for home installation, and its Star Fleet Trucking transportation arm, the company serves a broad range of housing customers under well-known regional brands such as Champion, Skyline, Regional, Athens Park Models, Dutch Housing, and Moduline.

Average Trading Volume: 730,407

Technical Sentiment Signal: Hold

Current Market Cap: $4.38B

Find detailed analytics on SKY stock on TipRanks’ Stock Analysis page.