Cavco Industries, Inc. has recently released its 10-K report, revealing a comprehensive overview of its business operations. The company, founded in 1965 and headquartered in Phoenix, Arizona, primarily designs, produces, and retails factory-built homes in the United States. It operates in two segments, Factory-Built Housing and Financial Services, offering a wide range of products including park model RVs, vacation cabins, commercial structures, and various modular homes. Additionally, it provides conforming and non-conforming mortgages, home-only loans, and property and casualty insurance to owners of manufactured homes.
In ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Cavco Industries, Inc. discusses forward-looking statements and the factors that may cause actual results to differ from these statements. The company emphasizes the unpredictability of the future housing demand, employee availability, and supply chain, as well as the challenges in balancing production levels and workforce size with the demand for its product offerings.
The report provides a detailed analysis of the company's financial performance in fiscal year 2025 compared to fiscal year 2024. Net revenue for the factory-built housing segment increased by 12.6%, reaching $1,933,111, primarily driven by higher home sales volume. However, the net factory-built housing revenue per home sold decreased by 3.5% due to various factors, including changes in sales channels and product mix. In the financial services segment, net revenue increased by 5.3%, primarily attributed to higher insurance premiums.
Gross profit for the company increased by 9.1%, reaching $465,591, with the factory-built housing segment contributing $441,796 and the financial services segment contributing $23,795. Selling, general and administrative expenses rose by 11.0%, mainly due to one-time, non-cash charges related to the adjustment of legacy indefinite lived trade names, higher incentive compensation, and incremental costs from a prior acquisition.
The report also covers income before income taxes, income tax expense, liquidity, and capital resources, providing a comprehensive overview of Cavco Industries, Inc.'s financial performance and position. Following these announcements, the company's shares moved -5.3%, and are now trading at a price of $472.79. If you want to know more, read the company's complete 10-K report here.
