Champion Homes Reports Modest Sales Growth but Declining Profitability in Q3 2025

Champion Homes, Inc. reported its financial results for the third quarter and nine months ended December 27, 2025, revealing a modest increase in net sales and a decline in profitability compared to the previous fiscal period. The company generated net sales of $656.6 million for the third quarter, up 1.8% from $644.9 million in the same period last year. For the nine months, net sales reached $2.04 billion, an increase of 8.1% from $1.89 billion. However, net income attributable to Champion Homes decreased to $54.3 million for the third quarter, down from $61.5 million a year earlier, and for the nine months, net income rose to $177.2 million from $162.1 million.

The company's gross profit margin also contracted, with gross profit for the third quarter at $172.2 million, or 26.2% of net sales, compared to 28.1% in the prior year. This decline was attributed to higher manufacturing material costs and lower absorption of fixed costs due to decreased sales volumes. Selling, general, and administrative expenses increased slightly to $109.7 million, reflecting the inclusion of costs from the recently acquired Iseman Homes, which operates retail sales centers in the North Central U.S.

In terms of strategic developments, Champion Homes completed the acquisition of Iseman Homes in May 2025 for $26.8 million, enhancing its retail presence. The company also idled production at its Bartow, Florida facility and ceased operations at its Kelowna, British Columbia plant, incurring $6.5 million in related costs. These actions are part of a broader strategy to improve operational efficiency and profitability. The company operates 42 manufacturing facilities in the U.S. and four in Canada, with 83 retail sales centers across the U.S.

Operationally, the company reported a decrease in its manufacturing backlog to $266 million as of December 27, 2025, down from $312.6 million a year prior, indicating that production rates have outpaced order rates. The company’s market share in the U.S. for HUD-code homes was approximately 22.5%, slightly up from 22.2% in the previous year. The total employee headcount remains stable, with 83 retail sales centers in operation, an increase from 72 in the prior year.

Looking ahead, Champion Homes anticipates continued demand for affordable housing, driven by demographic trends and economic conditions. The company expects its cash flows from operations and existing cash balances to be sufficient to meet working capital needs and support strategic initiatives. However, management acknowledged potential risks, including supply chain issues, inflationary pressures, and changes in consumer preferences, which could impact future performance.