Cavco Industries Reports 12.3% Revenue Increase

By Philip Seaworth • Sunday, May 25 17:27 • Permanent Link

Cavco Industries, Inc. has reported its latest 10-K, providing a comprehensive overview of its financial performance in fiscal year 2025. The company's net revenue for the year ended March 29, 2025, amounted to $2.02 billion, representing a 12.3% increase from the previous year. The total number of homes sold also saw a significant rise, reaching 19,753, a 16.7% increase from the prior year.

In the factory-built housing segment, net revenue increased to $1.93 billion, primarily driven by higher home sales volume, partially offset by lower average selling prices. The financial services segment also saw a 5.3% increase in net revenue, primarily due to higher insurance premiums.

Gross profit for the company totaled $465.6 million, representing a 9.1% increase from the previous year. The factory-built housing segment's gross profit increased by 10.7%, while the financial services segment experienced a 15.0% decrease in gross profit, primarily due to higher weather-related insurance claims and reduced revenue from loan sales.

Selling, general, and administrative expenses for the factory-built housing segment increased by 11.8%, largely driven by a one-time, non-cash charge related to the adjustment of legacy indefinite lived trade names, higher incentive compensation on higher sales, and incremental costs due to an acquisition.

The company reported an effective tax rate of 19.0% for the fiscal year ended March 29, 2025, compared to 20.7% for the prior year, primarily due to an increase in tax credits related to the sale of energy-efficient homes and Energy Star credits.

Cavco Industries, Inc. expressed confidence in its liquidity and capital resources, stating that it believes its cash and cash equivalents, together with cash flow from operations, will be sufficient to fund its operations, cover its obligations, and provide for growth for the next 12 months and into the foreseeable future. The company also mentioned its $75.0 million revolving credit facility as a source of liquidity.

As a result of these announcements, the company's shares have moved -5.3% on the market, 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.

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