Start here if you're new
what it is
Champion Homes builds factory-made houses, sells them through 82 retail lots, and also handles setup work.
how it gets paid
Last year Champion Homes made $2.5B in revenue. manufactured homes was the main engine at $1.45B, or 58% of sales.
why it's growing
Revenue grew 22.7% last year. Revenue reached $2.5 billion over the trailing year.
what just happened
Latest reported EPS came in at $0.97, above the $0.86 consensus.
At a glance
B+ balance sheet — decent shape, but not bulletproof
25/100 earnings predictability — expect surprises
23.9x trailing p/e — priced about right
11.5% return on capital — nothing to write home about
xvary composite: 63/100 — average
What they do
Champion Homes builds factory-made houses, sells them through 82 retail lots, and also handles setup work.
Housing is slow. Factories are faster. Champion runs 48 manufacturing facilities and 82 active retail locations, so you get reach plus distribution in one system. That matters because affordable homes sell on price, and a 13.0% operating margin means this company keeps more of each dollar than a commodity builder usually can.
How they make money
$2.5B
annual revenue · their business grew +22.7% last year
manufactured homes
$1.45B
modular homes
$0.55B
retail home sales
$0.25B
installation and set-up services
$0.15B
adus, park-models, and buildings
$0.10B
The products that matter
manufactures and sells factory-built homes
Factory-Built Homes
$2.5B revenue · +4.2% growth
it is the entire $2.5B business. the catch: when housing demand works, everything works. when it slows, everything feels it.
100% of revenue
Key numbers
$113
18-month target
That is 24% above the current $90.80 price, which tells you the bull case still needs execution, not miracles.
13.0%
operating margin
Operating margin → profit after running the business → so what: Champion keeps $13 from every $100 of sales before interest and taxes.
$24M
long-term debt
Debt is just 0% of capital, which gives the company room to survive a downturn without a balance-sheet drama arc.
23.9x
trailing p/e
P/E → price compared with past earnings → so what: you are paying a full price for a cyclical housing name.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- long-term debt $24M (0% of capital)
- net profit margin 8.7% — keeps 9 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in SKY 3 years ago → it's now worth $13,170.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Latest reported EPS came in at $0.97, above the $0.86 consensus.
Revenue reached $2.5 billion over the trailing year, up 22.7% by SEC filing data. Gross margin was 26.9%, even as management flagged a 190-basis-point margin decline in the December quarter.
$2.5B
revenue
$0.97
eps
26.9%
gross margin
the number that mattered
The key number was 26.9% gross margin, because housing names can fake growth for a quarter, but margin tells you if that growth is worth anything.
-
fiscal 2025 (ends march 31, 2026) has been a solid year for champion homes.true, the company's bottom line was relatively flat in the december quarter, but that was against a tough comparison, which saw a shift of more sales into the fiscal 2024 fiscal third quarter. too, the december-period showing followed a strong performance in the first half of the fiscal year.
-
all told, through the first nine months, champion delivered a double-digit bottom-line gain, to $3.12 a share, on a healthy 8% sales advance.our sense is that affordability concerns in the single-family housing market, the product of higher mortgage rates, elevated selling prices, and an inventory shortage, pushed many buyers into the manufactured and mobile homes markets, to the benefit of champion homes. based on these factors, we look for a low double-digit earnings-per-share gain, to $3.80, for the full year.
-
the coming 12-month period will likely prove to be a bit more challenging.the u.s. homebuyer is still facing affordability issues, as mortgage rates, though down from their early 2025 level, are still making it expensive for many buyers to finance a purchase. the company also is dealing with higher operating costs, with prices for building materials rising due to the tariffs put in place early last year.
-
this contributed to the 190-basis-point decline in champion homes' gross profit margin in the december quarter, a trend that is likely to persist for the foreseeable future as the trump administration aggressively targets foreign-produced building materials, including those from canada and mexico.
-
there also were signs of weakening home demand during late last year, with the number of u.s. homes sold declining 2.6% over the final three months of calendar 2025.
source: company earnings report, 2026
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What could go wrong
the #1 risk is higher borrowing costs choking off manufactured-home affordability.
med
interest-rate sensitivity
factory-built homes are still homes. if monthly payments rise, orders can slow before the income statement shows it.
this touches the full $2.5B revenue base.
med
zoning and code friction
local permitting, manufactured-housing stigma, and code changes can delay deliveries or raise build costs even when end demand exists.
higher compliance or delivery costs pressure an 8.1% net margin fast.
med
one-engine business mix
all $2.5B of revenue comes from the same activity. there is no financing arm, software stream, or premium segment in this snapshot to absorb a housing slowdown.
if demand softens, the whole business feels it at once.
put together, these risks expose the entire revenue base while leaning on a business that keeps only 8.1% of sales as profit.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
watch whether margin stays at 8% or better
the recent quarter came in at 8.0%. if that slips while revenue growth stays muted, the premium multiple gets harder to defend.
trend
track affordability, not just company headlines
SKY sells into a rate-sensitive category. the housing cycle matters more than management adjectives.
risk
treat the clean balance sheet as protection, not a thesis
$24M of long-term debt lowers financial risk. it does not create demand if buyers stop qualifying.
calendar
next earnings need better volume or better margin
revenue grew 2% in the recent quarter. you want the next report to show more than that without cracking profitability.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they like it more than the average stock.
risk profile
average
stability score 3 — this sits near the middle of the risk pack, not at either extreme.
chart momentum
top 20%
technical score 2 — the chart has been stronger than the business drama.
earnings predictability
25 / 100
earnings are hard to model here. in plain english: do not expect smooth quarters from a housing name.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 143 buyers vs. 106 sellers in 4q2025. total institutional holdings: 63.8M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$63
$162
$91
current price
$113
target midpoint · +24% from current · 3-5yr high: $150 (+65% · 13% ann'l return)
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