Champion Homes (NYSE:SKY) Posts Earnings Results, Beats Estimates By $0.05 EPS

Champion Homes (NYSE:SKY) announced its quarterly earnings data on Tuesday. The company reported $0.68 earnings per share for the quarter, beating analysts’ consensus estimates of $0.63 by $0.05, FiscalAI reports. The firm had revenue of $621.28 million during the quarter, compared to analysts’ expectations of $607.39 million. Champion Homes had a net margin of 8.10% and a return on equity of 13.85%. The business’s quarterly revenue was up 15.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.65 earnings per share.

Here are the key takeaways from Champion Homes’ conference call:

• Champion Homes said fiscal 2026 was a record year, with 26,622 customers and the highest number of homes sold since going public, despite a difficult macro backdrop.
• Fourth-quarter net sales rose 4.6% to $621.3 million, while adjusted EBITDA increased 6.3% and adjusted EBITDA margin edged up to 9%. Management also said U.S. orders grew 7% year over year and backlog rose to $316 million.
• The company announced the Homes Direct acquisition, adding 11 West Coast retail locations and expanding Champion’s company-owned store count to 95 once closed in fiscal Q2. Management highlighted the deal as a way to strengthen its retail footprint and customer experience.
• For fiscal Q1 2027, Champion expects revenue to be approximately flat year over year and adjusted gross margin in the 24.5%-25.5% range. Management said inflation in lumber, OSB, steel and petroleum is pressuring margins, partly offset by efficiency and pricing actions.
• The company ended the year with a strong balance sheet, including $638.3 million in cash and $303.9 million of operating cash flow, up 26.2% year over year. It also repurchased $200 million of stock during the fiscal year and had its buyback authorization refreshed to $150 million.

Champion Homes Trading Up 0.9%

Shares of SKY stock opened at $71.66 on Wednesday. The firm has a market cap of $3.96 billion, a P/E ratio of 19.06 and a beta of 1.07. Champion Homes has a 1-year low of $59.44 and a 1-year high of $99.17. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.71 and a quick ratio of 1.89. The firm’s 50-day simple moving average is $74.76 and its 200-day simple moving average is $82.63.

Insider Buying and Selling

In other Champion Homes news, EVP Joseph A. Kimmell sold 2,880 shares of the firm’s stock in a transaction on Friday, March 6th. The shares were sold at an average price of $82.25, for a total transaction of $236,880.00. Following the completion of the transaction, the executive vice president directly owned 51,297 shares of the company’s stock, valued at $4,219,178.25. This trade represents a 5.32% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 1.20% of the company’s stock.

Hedge Funds Weigh In On Champion Homes

A number of hedge funds have recently added to or reduced their stakes in SKY. Los Angeles Capital Management LLC acquired a new position in shares of Champion Homes during the fourth quarter valued at $26,000. UMB Bank n.a. grew its stake in Champion Homes by 78.9% during the 4th quarter. UMB Bank n.a. now owns 313 shares of the company’s stock valued at $26,000 after acquiring an additional 138 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in Champion Homes during the 4th quarter valued at about $26,000. Advisory Services Network LLC purchased a new position in Champion Homes during the 3rd quarter valued at about $35,000. Finally, Headlands Technologies LLC purchased a new position in Champion Homes during the 2nd quarter valued at about $92,000.

More Champion Homes News

Here are the key news stories impacting Champion Homes this week:

• Positive Sentiment: Champion Homes reported adjusted EPS of $0.68, ahead of the $0.63 consensus estimate, while revenue of $621.28 million also beat expectations and rose 15.2% from a year ago. Article reference
• Positive Sentiment: Management highlighted record sales and strong orders, and investors also welcomed news of a planned Homes Direct deal in Q2, which could support growth. Article reference
• Neutral Sentiment: The company guided Q1 FY2027 adjusted gross margin to 24.5%–25.5%, signaling that profitability could remain under pressure even as demand stays healthy. Article reference
• Negative Sentiment: Some investors are focusing on the margin squeeze discussed on the earnings call, which could temper enthusiasm after the beat-and-raise-style headline. Article reference

Analyst Upgrades and Downgrades

SKY has been the subject of several analyst reports. Barclays lowered their price target on shares of Champion Homes from $111.00 to $106.00 and set an “overweight” rating for the company in a report on Wednesday, April 8th. Zelman & Associates downgraded shares of Champion Homes from an “outperform” rating to a “hold” rating in a report on Thursday, February 5th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Champion Homes in a research note on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $103.50.

About Champion Homes

Champion Homes, traded under the NYSE ticker SKY, operates as a leading provider of factory-built housing solutions in North America. The company specializes in the design, manufacture and sale of manufactured and modular homes, serving a broad spectrum of customers from first-time homebuyers to those seeking upscale residential properties. Champion Homes leverages vertically integrated operations to streamline production, ensuring consistent quality and cost efficiencies across its product lines.

The company’s product portfolio encompasses single- and multi-section modular homes, manufactured home models, park models and select commercial modular buildings.