Champion Homes, Inc. (NYSE: SKY), a leading producer of factory-built housing in North America, reported its fourth quarter and full year fiscal 2025 results, revealing a noteworthy performance amidst market volatility. For the fourth quarter ended March 29, 2025, net sales rose 10.7% to $593.9 million compared to the same period in the previous year. The number of U.S. homes sold increased by 5.1% to 5,941 units.

The average selling price (ASP) for U.S. homes sold reached $94,300, a 5.0% rise due to favorable product mix, particularly through company-owned retail sales centers. Gross profit in the fourth quarter surged 55% to $152.5 million, contributing to a gross margin of 25.7%, reflecting a robust 740-basis point improvement year-over-year. This contrast is attributed mainly to the absence of a prior-year product liability reserve of $34.5 million.

However, selling, general, and administrative expenses (SG&A) increased to $110.3 million from $90.6 million in the previous year’s quarter. The rise was driven by higher variable compensation linked to increased sales volumes and investments in marketing and technology aimed at supporting growth initiatives. Consequently, the SG&A as a percentage of net sales elevated to 18.6% from 16.9%.

Champion Homes reported a net income of $36.3 million for the fourth quarter, up from $2.8 million a year prior, yielding earnings per diluted share of $0.63, which was significantly higher than the $0.05 reported in the same quarter last year. Adjusted EBITDA for the quarter was $52.6 million, demonstrating a slight 1.1% decrease from the previous year, with an adjusted EBITDA margin of 8.9%, down from 9.9%.

In terms of cash flow, the company generated $46.0 million from operating activities in the fourth quarter, markedly higher than the $4 million in the prior year period. Champion Homes utilized part of its cash reserves to repurchase $20 million of shares under its buyback program, supported by a refreshed share repurchase authorization of $100 million.

For full year fiscal 2025, net sales escalated 22.7% to $2.5 billion, attributing a portion of this growth to the Regional Homes acquisition and increased organic sales. Gross profit for the year rose by 36.7% to $664 million, and the gross margin improved by 270 basis points to 26.7%. Net income for fiscal 2025 jumped to $198.4 million, reflecting a year-over-year increase of 35.3%, while earnings per share increased to $3.42 from $2.53.

Looking forward, Champion Homes provided a preliminary outlook for the first quarter of fiscal 2026, indicating expectations for low single-digit revenue growth compared to the prior year period. The company continues to navigate an uncertain market with efforts to streamline operations and manage costs, particularly as consumer sentiment and demand dynamics evolve.