Cavco completed the $190 million acquisition of American Homestar in September 2025, bringing two manufacturing facilities and nineteen retail locations, strengthening its position as one of the largest producers of manufactured and modular homes in the United States. The integration is expected to yield over $10 million in annual synergies including purchasing, labor, and SG&A cost savings. Management notes the company's flexible business model positions it well to adjust to market uncertainties.
Cyborg Score Rationale
Cavco reported Q3 2026 revenue of $581.0 million and trailing twelve-month revenue of $2.2 billion with EPS of $23.28. The company achieved 11.3% net revenue growth year-over-year. However, gross margins decreased due to higher per unit costs and retail price compression, particularly in the South-Central region. The company demonstrates solid fundamentals but faces near-term margin pressures from pricing dynamics.
Top Insights
Cavco completed a $190 million acquisition of American Homestar in September 2025, expanding manufacturing capacity and retail presence across Texas, Louisiana, and Oklahoma.
FY2026 Q2 results showed revenue up 9.7% with strong financial services gross margin expansion to 55.6% driven by higher premiums and lower claims losses.
Industry shipments slowed significantly with a 13% decrease in October and November 2025 compared to the same period in 2024, pressuring volume.
Capacity utilization increased to approximately 75% in FY2026 Q1, up from 65% in the prior year, reflecting operational leverage.
Named Competitors
Skyline Champion Homes — Modular and manufactured home producer
Installed Building Products — Factory-built housing insulation and building materials
M/I Homes — Factory-built and site-built residential homes
Recent Developments
(February 2026) Cavco Industries reported Q3 FY2026 revenue of $581.0 million, up 11.3% year-over-year, with net income of $44.1 million, down 22.0%.
(December 2025) Q3 fiscal results showed factory-built housing revenue at $558.5 million with homes sold up 3.2%; financial services gross margin improved to 65.2%.
(September 2025) Cavco completed the $190 million acquisition of American Homestar Corporation, bringing manufacturing and retail operations under Cavco's umbrella.
(June 2025) FY2026 Q1 results showed net revenue of $557 million, up 16.6% year-over-year, with home sales volume up 14.7%.
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