Champion Homes (NYSE:SKY) reported fiscal fourth-quarter 2026 results on Tuesday that came in ahead of Wall Street expectations, although the stock edged 0.62% lower in premarket trading as investors assessed the company’s outlook amid ongoing pressure in the housing market.
Earnings and revenue exceed analyst forecasts
For the quarter ended March 28, 2026, Champion Homes posted adjusted earnings per share of $0.68, surpassing analyst expectations of $0.62 by $0.06.
Quarterly revenue increased 4.6% year-over-year to $621.3 million, above the consensus estimate of $607.4 million and higher than the $593.9 million recorded in the prior-year period.
Home sales volume declines despite higher pricing
The number of homes sold in the United States slipped 0.6% to 5,908 units during the quarter.
The company said lower sales volume through community and REIT distribution channels was partially offset by contributions from the acquisition of Iseman Homes.
At the same time, the average selling price for U.S. homes rose 4.6% to $98,600, supported by product mix changes and channel dynamics.
Net income pressured by acquisition and liability charges
Net income for the quarter declined 18.4% year-over-year to $29.7 million, or $0.53 per diluted share, compared with $36.3 million in the same period a year earlier.
Champion Homes said the decline was primarily driven by changes in the fair value of acquisition-related contingent consideration along with product liability adjustments.
On an adjusted basis, net income increased 0.8% to $37.7 million.
CEO highlights execution during difficult market conditions
“Fiscal 2026 was a year of strong execution. Champion continued to outperform the broader industry while consistently meeting our internal expectations despite a volatile and challenging macro environment,” said Tim Larson, President and Chief Executive Officer of Champion Homes.
Full-year profitability improves
For the full fiscal year 2026, Champion Homes reported net sales growth of 7.3% to $2.7 billion.
Adjusted net income increased 6.2% to $217.4 million, while adjusted EBITDA rose 8.1% to $308.2 million.
Adjusted EBITDA margin expanded slightly to 11.6%, compared with 11.5% during fiscal 2025.
Backlog mixed as company maintains strong cash position
The company’s order backlog fell 8.0% from the prior year but increased 18.8% sequentially to $316.0 million.
During fiscal 2026, Champion Homes repurchased $200 million of its common shares and ended the year with $638.3 million in cash and cash equivalents.