Champion Homes, Inc. (SKY) · Nov 3, 2026 · Earnings

Champion Homes earnings beat, but profit falls as costs rise

Beat — Diluted EPS $0.97 vs ~$0.94 consensus; revenue $727.0M vs ~$719.7M

Champion Homes earnings slightly beat Q2 expectations as sales and backlog grew, but higher material costs reduced profit and margins.

Champion Homes is expanding a factory-built housing platform through higher production, captive retail growth, and acquisitions such as the planned nine-location Timberline deal in the Southeast. The quarter shows that demand and execution are holding up, but the business is still working through material-cost inflation. The published Q2 expectations were roughly $0.94 EPS and $719.7 million of revenue.

Sales and demand came in ahead of the bar. Revenue rose 6.2% to $727.0 million, slightly above published expectations, while U.S. homes sold increased 2.3% and average selling price rose 4.1% to $102,700. Backlog also reached approximately $500 million, giving the expansion strategy better order support.

Q2 FY2027Q2 FY2026Consensus
Net sales (Results)$727.0M (+6.2%)$684.4M$719.7M
Diluted EPS (Income Statement)$0.97$1.03$0.94
Adjusted EPS (Reconciliation)$0.95$1.01
Adjusted EBITDA (Reconciliation)$76.6M (-8.1%)$83.4M
Net income (Income Statement)$52.7M (-9.5%)$58.2M
Backlog (Financial Highlights)$500M

The beat was narrow because growth did not translate into higher earnings. Gross margin held at 25.5%, but higher material costs pushed net income, adjusted EBITDA, and adjusted EPS below last year; the company specifically attributed the net-income decline to inflationary cost-of-sales increases. SG&A also grew 5.4% on the expanded retail footprint, so the retail-led growth plan is adding cost before its benefits are fully visible. 〔0〕

Capital returns add support, but do not change the operating read. Champion repurchased $50 million of stock during the quarter and refreshed the authorization to $150 million, backed by $702.8 million of cash. That signals balance-sheet capacity and shareholder-return intent, but the central business update remains a modest revenue and backlog improvement offset by weaker profitability.

Bottom line: Champion modestly beat the market's quarterly expectations and is building demand momentum, but this is not a clean acceleration story: cost inflation is still eroding earnings. The event improves the operating picture slightly without rewriting it.

What to watch next

Q2 earnings call, November 4, 2026

Original filing on SEC EDGAR

More Champion Homes, Inc. news

Champion Homes earnings beat, but profit falls as costs rise | SKY Stock News
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