Cavco Q1 Revenue Climbs 9.5% to $610M as Backlog Surges 53% to $298M

summarizeSummary

Cavco Industries posted Q1 FY2027 revenue of $610 million, up 9.5% year-over-year, while backlog surged to $298 million. Net income declined to $42.3 million amid margin pressure and a higher tax rate.

check_boxKey Events · Earnings and Guidance · CVCO

• Revenue Beats, Backlog Surges

  Q1 net revenue rose 9.5% to $610 million, exceeding the $591 million consensus. Backlog jumped 53% sequentially to $298 million, indicating strong future demand.

• Earnings Decline on Margin Pressure

  Net income fell 18% to $42.3 million, or $5.43 per diluted share, as gross margin contracted to 22.1% from 23.3% a year ago, driven by higher input costs and acquisition-related SG&A.

• Tax Headwind from Energy Star Credit Repeal

  The effective tax rate increased to 24.2% from 20.9% due to the repeal of Energy Star tax credits for homes acquired after June 30, 2026, reducing expected credits for the year.

• Share Repurchases Continue

  Cavco repurchased $30 million of its common stock during the quarter, with $188 million remaining under its $300 million total authorization.

auto_awesomeAnalysis · CVCO · Manufacturing

Demand proved robust in Cavco's fiscal first quarter, with revenue climbing 9.5% year-over-year to $610 million and beating consensus estimates. The backlog's 53% sequential jump to $298 million signals sustained momentum. Net income, however, fell 18% to $42.3 million as higher input costs and acquisition-related SG&A from American Homestar compressed margins. A headwind for the full year is the effective tax rate, which rose to 24.2% following the repeal of Energy Star tax credits. The company continued its buyback, repurchasing $30 million in shares, with $188 million remaining under its authorization. The balance sheet remains strong, with no debt drawn on its $75 million revolver.