Nobility Homes Reports Decline in Revenue and Net Income for Q2 and First Half of Fiscal 2026

Nobility Homes, Inc. reported a decline in financial performance for the second quarter and first half of fiscal 2026, as detailed in its latest 10-Q filing. For the three months ended May 2, 2026, the company generated net sales of $12.41 million, down from $14.76 million in the same period last year. The decrease in revenue was attributed to a reduction in the number of new retail homes sold through company-owned sales centers, which fell to 93 homes from 132 homes year-over-year. Net income for the second quarter was $1.76 million, or $0.56 per share, compared to $2.29 million, or $0.70 per share, in the prior year.

For the first six months of 2026, Nobility Homes reported total net sales of $22.91 million, a decrease from $27.00 million in the first half of 2025. The company’s gross profit also declined, totaling $6.83 million for the first half of 2026, down from $8.60 million in the previous year. The gross profit margin decreased to 30% from 32%, primarily due to a shift in sales mix towards lower-margin homes sold to independent dealers. The company noted that external factors, including high interest rates and economic uncertainty, have led potential customers to delay purchasing decisions.

In terms of operational metrics, Nobility Homes sold 50 new homes through its retail centers in the second quarter of 2026, compared to 65 in the same quarter of 2025. However, sales to independent dealers increased to 64 homes from 61 homes year-over-year. The company’s inventory of new homes increased to $17.13 million as of May 2, 2026, compared to $16.61 million at the end of the previous fiscal year. The company also repurchased 100,000 shares of common stock from its President at $29.70 per share, totaling $2.97 million.

Looking ahead, Nobility Homes anticipates continued challenges due to inflation, supply chain disruptions, and labor shortages, which may affect production timelines and costs. The company remains focused on maintaining its strong financial position, with cash and cash equivalents reported at $9.86 million as of May 2, 2026, down from $13.23 million at the end of the previous fiscal year. Management expressed confidence in the long-term growth potential of the Florida market, where the company has operated for nearly six decades, and is committed to navigating the current economic landscape to sustain its operations and growth.