Nobility Homes Reports 28% Increase in Q2 Net Sales to $14.76 Million

Nobility Homes, Inc. reported a significant increase in financial performance for the second quarter of fiscal 2025, with net sales rising 28% to $14.76 million compared to $11.53 million in the same period last year. For the first six months of 2025, total net sales reached $27.00 million, a 3% increase from $26.30 million in the prior year. The company also reported net income of $2.29 million, or $0.70 per share, for the second quarter, up from $2.03 million, or $0.62 per share, in the second quarter of 2024. However, net income for the first half of 2025 decreased slightly to $4.27 million from $4.36 million in the previous year.

The increase in sales was primarily driven by a higher number of homes sold to independent dealers, which rose to 92 from 63 year-over-year. Conversely, sales through company-owned retail centers decreased, with 132 new homes sold compared to 153 in the prior year. The company noted that the current economic environment, characterized by higher interest rates and inflation, has led to delays in customer purchasing decisions and challenges in production due to material shortages and increased costs.

Operationally, Nobility Homes reported a gross profit of $4.63 million for the second quarter, representing a gross margin of 31%, down from 36% in the same quarter last year. The decline in gross profit percentage was attributed to a shift in the sales mix, with more homes sold to independent dealers, which typically yield lower margins compared to retail sales. Selling, general, and administrative expenses as a percentage of net sales improved to 13% from 17% year-over-year, reflecting effective cost management despite the increase in sales.

As of May 3, 2025, Nobility Homes maintained a strong balance sheet with total assets of approximately $65.54 million, primarily funded by stockholders' equity of about $56.86 million. The company had cash and cash equivalents of $13.03 million, down from $13.52 million at the end of the previous fiscal year. The company also paid a cash dividend of $1.25 per share in April 2025, totaling $4.09 million. Looking ahead, Nobility Homes anticipates continued challenges due to the economic environment, including inflation and supply chain disruptions, but remains optimistic about the long-term demand for affordable manufactured housing in Florida and the U.S.