Weekly Real Estate News
Cavco Industries posted record quarterly revenue and factory-built home volume, offering a bright spot in a housing market still challenged by affordability and construction costs.
The Phoenix-based manufactured-home builder reported $656.4 million in revenue for its fiscal second quarter ended September 26, 2026, an increase of 17.9% from a year earlier. The results were announced October 29 at 4:05 p.m. Eastern, according to Cavco’s earnings release.
Factory-built housing volume climbs
Cavco sold 5,972 factory-built homes during the quarter, up 15.3% year over year. Its factory-built housing segment generated $633.7 million in revenue, an 18.4% increase, while financial services revenue rose 5.8% to $22.6 million.
Net income increased to $55.4 million from $52.4 million. Diluted earnings per share rose to $7.17 from $6.55. The company said its selling, general and administrative expenses included a one-time $7 million insurance-premium return, which added approximately 70 cents to diluted earnings per share. That benefit is important when assessing the underlying profit trend.
Backlog grows as new demand emerges
Cavco ended the quarter with a $348 million order backlog, up $50 million from the previous quarter. Management said the backlog represented roughly eight to 10 weeks of production.
President and CEO Bill Boor described the quarter as the company’s second consecutive period of record revenue and unit volume. He said orders remained healthy despite slowing from the prior quarter and noted that the company had begun receiving orders and shipping housing for workers associated with data-center projects.
Cavco did not disclose how much revenue those workforce-housing projects contributed, and the company-specific trend should not be generalized to the entire manufactured-housing industry.
Margins and costs remain in focus
The factory-built housing gross margin was 21.1%, down from 22.9% a year earlier. Management pointed to ongoing materials inflation but said recent selling-price increases had exceeded cost pressures, helping sequential margin performance.
The company also highlighted its Grande Arbor off-chassis manufactured home, shown at HUD’s Innovative Housing Showcase, as an example of product development. That showcase occurred before the earnings announcement and is not a new October 29 event.
What it means for housing
Factory-built construction can offer an alternative path for households and communities facing housing-cost pressures. Cavco’s results demonstrate solid demand for its products, though they do not establish a broader national rebound in homebuilding or affordability.
Simple Content Summary
Cavco Industries reported record fiscal second-quarter revenue of $656.4 million, up 17.9%, as factory-built home sales climbed 15.3% to 5,972 units. Its backlog rose to $348 million. The company also began shipping housing for data-center workers, but did not disclose the size of that business.
