Cavco Industries, Inc. has recently released its 10-K report, providing a comprehensive insight into the company's performance and operations. The company, founded in 1965 and headquartered in Phoenix, Arizona, is primarily engaged in designing, producing, and retailing 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, factory-built commercial structures, and various modular homes. Additionally, the company provides conforming and non-conforming mortgages, home-only loans, and property and casualty insurance to owners of manufactured homes.
In the 10-K report, Cavco Industries, Inc. discussed forward-looking statements, outlining potential risks and uncertainties that could impact its business, financial condition, and results of operations. The company highlighted its focus on balancing production levels and workforce size with the demand for its product offerings to maximize efficiencies. It also emphasized its efforts to make commercial loan programs available to members of its wholesale distribution chain and its commitment to servicing existing loans and insurance policies in the financial services segment.
The report provided detailed results of operations for fiscal year 2025 compared to fiscal year 2024. Net revenue for the fiscal year 2025 amounted to $2.015 billion, representing a 12.3% increase from the previous year. The company sold a total of 19,753 homes, marking a 16.7% increase from the prior year. In the factory-built housing segment, gross profit increased by 10.7%, while in the financial services segment, gross profit decreased by 15.0% primarily due to higher weather-related insurance claims and reduced revenue from loan sales.
Selling, general, and administrative expenses related to factory-built housing increased by 11.8%, driven by a one-time, non-cash charge related to the adjustment of legacy indefinite lived trade names, higher incentive compensation, and incremental costs due to a prior-year acquisition. The company's income before income taxes for fiscal year 2025 amounted to $211.070 million, representing a 6.0% increase from the previous year.
The report also discussed the company's 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. Additionally, the company highlighted its $75.0 million revolving credit facility as part of its liquid resources.
The market has reacted to these announcements by moving the company's shares -5.3% to a price of $472.79. If you want to know more, read the company's complete 10-K report here.
