Nobility Homes Reports Decline in Sales and Net Income for Q1 Fiscal 2025

Nobility Homes, Inc. reported a decline in financial performance for the first quarter of fiscal 2025, with net sales totaling $12.24 million, down from $14.77 million in the same period last year. The company’s net income also decreased to $1.98 million, or $0.61 per share, compared to $2.34 million, or $0.72 per share, in the prior year. The decrease in sales and profitability is attributed to a reduction in the number of retail homes sold, which management believes is influenced by higher mortgage interest rates and ongoing supply chain challenges, including delays in receiving key production materials.

In terms of operational metrics, Nobility Homes experienced a drop in the number of new homes sold through company-owned sales centers, which fell to 67 from 80 in the previous year. The average retail price of new manufactured homes remained relatively stable at approximately $154,016, while wholesale prices increased slightly to $69,095. The company’s gross profit for the quarter was $3.97 million, representing 32% of net sales, consistent with the previous year’s gross profit margin. Selling, general, and administrative expenses decreased to $1.68 million, or 14% of net sales, down from $2.03 million in the prior year.

Nobility Homes' balance sheet showed total assets of approximately $67.33 million as of February 1, 2025, an increase from $66.60 million at the end of the previous fiscal year. The company’s cash and cash equivalents rose to $16.29 million, up from $13.52 million, while working capital improved to $44.80 million. The company continues to maintain a strong financial position with no debt and a stockholders' equity of $58.62 million. However, inventory levels decreased slightly, with new home inventory valued at $17.59 million compared to $18.48 million in the prior period.

Looking ahead, Nobility Homes anticipates ongoing challenges due to the current economic environment, including inflationary pressures on building materials and labor costs, which may affect pricing and sales. The company noted that the demand for affordable manufactured housing has slowed, particularly in Florida, where industry shipments have declined by approximately 15% compared to the previous year. Management remains optimistic about the long-term growth potential in their geographic market, emphasizing their commitment to providing affordable housing solutions. The company also declared a one-time cash dividend of $1.25 per common share, payable on April 14, 2025, to stockholders of record as of March 31, 2025.