Champion Homes, Inc. (SKY)

In the past six months, Champion Homes announced strong financial results for Q1 fiscal 2025, with net sales increasing by 35.1% year-over-year and U.S. homes sold rising by 35.7%. For the second quarter of fiscal year 2026, Champion Homes is projected to announce earnings around November 4, 2025, with analysts expecting $0.85 per share and revenue of $636.96 million. Analyst ratings for SKY have been mixed, with Zacks Research downgrading Champion Homes from a "hold" to a "strong sell" rating, while Royal Bank of Canada and Barclays raised their price targets. Over the past six months, SKY has trended down by 10.60%.

The housing industry, including factory-built homes, is subject to seasonality, with sales for Champion Homes' products typically higher from March to November. The company's backlog experienced a 27% sequential decline at the end of Q3 fiscal 2025, attributed to a normal seasonal slowdown in order rates. Demand for manufactured housing remains strong, driven by the need for affordable housing and the limited availability of existing homes.

Skyline Champion Corporation is a North American leader in factory-built housing, specializing in manufactured homes, modular homes, park model RVs, ADUs, and modular buildings for various sectors. It operates in the consumer cyclical sector, specifically in residential construction, and holds a significant market share in prefabricated home manufacturing and manufactured home dealerships. The company builds homes under numerous brands in the U.S. and western Canada and provides construction, retail, and transportation services.

Skyline Champion Corporation has an expansive operational footprint across North America, with approximately 40 to 46 manufacturing facilities in the United States and western Canada. It maintains a network of company-owned retail locations, including Titan Factory Direct stores primarily in the southern U.S., and Regional Homes retail locations throughout the Southeast. Its Star Fleet Trucking subsidiary provides transportation services from several dispatch locations across the United States and maintains a significant presence in states like California, Florida, and Texas.

Skyline Homes has been recognized as "America's Most Trusted® Manufactured Home Builder" for five consecutive years, from 2021 to 2025, reflecting a high level of consumer trust. Champion Homes also collaborates on innovative projects and emphasizes its reputation for integrity across its relationships with communities, retailers, suppliers, and customers.

Champion Homes has a significant institutional ownership base, with 736 institutional owners and shareholders holding a total of 79,157,023 shares. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc, and Wellington Management Group Llp. Historically, following the 2018 merger, funds affiliated with Bain Capital Credit, Centerbridge Partners, L.P., and MAK Capital collectively owned approximately 73.8% of the common stock.