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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 27, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-04714

Champion Homes, Inc.

(Exact name of registrant as specified in its charter)


Indiana		35-1038277
(State of Incorporation)		(I.R.S. Employer Identification No.)

755 West Big Beaver Road, Suite 1000
Troy, Michigan		48084
(Address of Principal Executive Offices)		(Zip Code)

     (248) 614-8211

    

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	SKY	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filers,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:):


Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of common stock outstanding as of October 31, 2025: 55,858,285

CHAMPION HOMES, INC.

FORM 10-Q

TABLE OF CONTENTS


PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets as of September 27, 2025 (unaudited) and March 29, 2025	1
Condensed Consolidated Income Statements (unaudited) for the three and six months ended September 27, 2025 and September 28, 2024	2
Condensed Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended September 27, 2025 and September 28, 2024	3
Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended September 27, 2025 and September 28, 2024	4
Condensed Consolidated Statements of Stockholders’ Equity (unaudited) for the three and six months ended September 27, 2025 and September 28, 2024	5
Notes to Condensed Consolidated Financial Statements	6

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3. Quantitative and Qualitative Disclosures About Market Risk	31

Item 4. Controls and Procedures	31

PART II – OTHER INFORMATION

Item 1. Legal Proceedings	33

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 5. Other Information	33

Item 6. Exhibits	34

SIGNATURES	35

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Champion Homes, Inc.

Condensed Consolidated Balance Sheets

(Dollars and shares in thousands, except per share amounts)


	September 27, 2025			March 29, 2025
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	618,740		$	610,338
Trade accounts receivable, net		94,114			84,103
Inventories, net		352,210			360,629
Other current assets		47,367			31,428
Total current assets		1,112,431			1,086,498
Long-term assets:
Property, plant, and equipment, net		313,974			307,140
Goodwill		363,616			357,973
Amortizable intangible assets, net		61,715			64,712
Deferred tax assets		18,454			37,998
Other noncurrent assets		250,615			256,087
Total assets	$	2,120,805		$	2,110,408
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Floor plan payable	$	98,927		$	106,091
Accounts payable		63,160			65,136
Other current liabilities		266,443			280,081
Total current liabilities		428,530			451,308
Long-term liabilities:
Long-term debt		24,045			24,773
Deferred tax liabilities		7,864			7,350
Other liabilities		79,106			82,539
Total long-term liabilities		111,015			114,662

Stockholders' Equity:
Common stock, $0.0277 par value, 115,000 shares authorized, 55,845 and 57,109 shares issued as of September 27, 2025 and March 29, 2025, respectively		1,549			1,584
Additional paid-in capital		600,970			586,941
Retained earnings		995,728			975,981
Accumulated other comprehensive loss		(16,987	)		(20,068	)
Total stockholders’ equity		1,581,260			1,544,438
Total liabilities and stockholders’ equity	$	2,120,805		$	2,110,408

See accompanying Notes to Condensed Consolidated Financial Statements.

Champion Homes, Inc.

Condensed Consolidated Income Statements

(Unaudited, dollars in thousands, except per share amounts)


	Three months ended						Six months ended
	September 27, 2025			September 28, 2024			September 27, 2025			September 28, 2024
Net sales	$	684,429		$	616,877		$	1,385,747		$	1,244,656
Cost of sales		496,497			450,544			1,007,985			914,108
Gross profit		187,932			166,333			377,762			330,548
Selling, general, and administrative expenses		113,117			99,655			224,426			208,482
Operating income		74,815			66,678			153,336			122,066
Interest (income), net		(4,034	)		(4,737	)		(8,570	)		(8,986	)
Other expense (income)		79			14			(1,141	)		(1,205	)
Income before income taxes		78,770			71,401			163,047			132,257
Income tax expense		18,551			15,392			36,250			29,111
Net income before equity in net loss of affiliates		60,219			56,009			126,797			103,146
Equity in net loss of affiliates		125			691			710			2,034
Net income		60,094			55,318			126,087			101,112
Net income attributable to non-controlling interest		1,895			584			3,201			584
Net income attributable to Champion Homes, Inc.	$	58,199		$	54,734		$	122,886		$	100,528
Net income attributable to Champion Homes, Inc. per share:
Basic	$	1.03		$	0.95		$	2.17		$	1.74
Diluted	$	1.03		$	0.94		$	2.15		$	1.73

See accompanying Notes to Condensed Consolidated Financial Statements.

Champion Homes, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited, dollars in thousands)


	Three months ended					Six months ended
	September 27, 2025			September 28, 2024		September 27, 2025		September 28, 2024
Net income	$	60,094		$	55,318	$	126,087	$	101,112
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		(2,408	)		1,624		3,081		494
Total other comprehensive (loss) income		(2,408	)		1,624		3,081		494
Total comprehensive income before non-controlling interests		57,686			56,942		129,168		101,606
Comprehensive income attributable to non-controlling interests		1,895			584		3,201		584
Comprehensive income attributable to Champion Homes, Inc.	$	55,791		$	56,358	$	125,967	$	101,022

See accompanying Notes to Condensed Consolidated Financial Statements.

Champion Homes, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, dollars in thousands)


	Six months ended
	September 27, 2025			September 28, 2024

Cash flows from operating activities
Net income	$	126,087		$	101,112
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		23,560			20,123
Amortization of deferred financing fees		231			187
Equity-based compensation		10,483			11,213
Deferred taxes		18,332			(596	)
(Gain) loss on disposal of property, plant, and equipment		(2,621	)		57
Foreign currency transaction (gain)		(399	)		(70	)
Equity in net loss of affiliates		710			2,034
Dividends from equity method investment		480			766
Change in fair value of contingent consideration		—			7,912
Change in assets and liabilities:
Accounts receivable		(9,489	)		(10,051	)
Floor plan receivables		(2,930	)		(15,155	)
Inventories		25,718			(6,759	)
Other assets		(11,434	)		(330	)
Accounts payable		(1,750	)		13,895
Accrued expenses and other liabilities		(25,800	)		20,104
Net cash provided by operating activities		151,178			144,442
Cash flows from investing activities
Additions to property, plant, and equipment		(17,817	)		(24,827	)
Cash paid for equity method investment		(447	)		—
Proceeds from floor plan loans		—			2,136
Acquisition, net of cash acquired		(24,636	)		—
Proceeds from disposal of property, plant, and equipment		5,105			138
Net cash (used in) investing activities		(37,795	)		(22,553	)
Cash flows from financing activities
Changes in floor plan financing, net		(7,310	)		(5,308	)
Payments on long term debt		(769	)		(11	)
Payments of deferred financing fees		(1,014	)		—
Payments for repurchase of common stock		(100,000	)		(40,000	)
Stock option exercises		3,550			272
Tax payments for equity-based compensation		(2,344	)		(2,273	)
Net cash (used in) financing activities		(107,887	)		(47,320	)
Effect of exchange rate changes on cash and cash equivalents		2,906			599
Net increase in cash and cash equivalents		8,402			75,168
Cash and cash equivalents at beginning of period		610,338			495,063
Cash and cash equivalents at end of period	$	618,740		$	570,231

See accompanying Notes to Condensed Consolidated Financial Statements.

Champion Homes, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited, dollars and shares in thousands)


	Three months ended September 27, 2025
	Common Stock
	Shares			Amount			Additional Paid in Capital		Retained Earnings			Accumulated Other Comprehensive Loss			Non-Controlling Interest			Total
Balance at June 28, 2025		56,511		$	1,567		$	595,464	$	988,025		$	(14,579	)	$	—		$	1,570,477
Net income		—			—			—		58,199			—			1,895			60,094
Equity-based compensation		—			—			5,505		—			—			—			5,505
Net common stock issued under equity-based compensation plans		10			—			1		(21	)		—			—			(20	)
Common stock repurchases		(676	)		(18	)		—		(50,475	)		—			—			(50,493	)
Distributions to non-controlling interest		—			—			—		—			—			(1,895	)		(1,895	)
Foreign currency translation adjustments		—			—			—		—			(2,408	)		—			(2,408	)
Balance at September 27, 2025		55,845		$	1,549		$	600,970	$	995,728		$	(16,987	)	$	—		$	1,581,260


	Six months ended September 27, 2025
	Common Stock
	Shares			Amount			Additional Paid in Capital		Retained Earnings			Accumulated Other Comprehensive Loss			Non-Controlling Interest			Total
Balance at March 29, 2025		57,109		$	1,584		$	586,941	$	975,981		$	(20,068	)	$	—		$	1,544,438
Net income		—			—			—		122,886			—			3,201			126,087
Equity-based compensation		—			—			10,483		—			—			—			10,483
Net common stock issued under equity-based compensation plans		183			5			3,546		(2,344	)		—			—			1,207
Common stock repurchases		(1,447	)		(40	)		—		(100,795	)		—			—			(100,835	)
Distributions to non-controlling interest		—			—			—		—			—			(3,201	)		(3,201	)
Foreign currency translation adjustments		—			—			—		—			3,081			—			3,081
Balance at September 27, 2025		55,845		$	1,549		$	600,970	$	995,728		$	(16,987	)	$	—		$	1,581,260


	Three months ended September 28, 2024
	Common Stock
	Shares			Amount			Additional Paid in Capital		Retained Earnings			Accumulated Other Comprehensive Loss			Non-Controlling Interest			Total
Balance at June 29, 2024		57,579		$	1,598		$	574,365	$	889,837		$	(15,053	)	$	—		$	1,450,747
Net income		—			—			—		54,734			—			584			55,318
Equity-based compensation		—			—			5,123		—			—			—			5,123
Net common stock issued under equity-based compensation plans		19			—			197		(28	)		—			—			169
Common stock repurchases		(214	)		(6	)		—		(20,135	)		—			—			(20,141	)
Distributions to non-controlling interest		—			—			—		—			—			(584	)		(584	)
Foreign currency translation adjustments		—			—			—		—			1,624			—			1,624
Balance at September 28, 2024		57,384		$	1,592		$	579,685	$	924,408		$	(13,429	)	$	—		$	1,492,256


	Six months ended September 28, 2024
	Common Stock
	Shares			Amount			Additional Paid in Capital		Retained Earnings			Accumulated Other Comprehensive Loss			Non-Controlling Interest			Total
Balance at March 30, 2024		57,815		$	1,605		$	568,203	$	866,485		$	(13,923	)	$	—		$	1,422,370
Net income		—			—			—		100,528			—			584			101,112
Equity-based compensation		—			—			11,213		—			—			—			11,213
Net common stock issued under equity-based compensation plans		75			2			269		(2,270	)		—			—			(1,999	)
Common stock repurchases		(506	)		(15	)		—		(40,335	)		—			—			(40,350	)
Distributions to non-controlling interest		—			—			—		—			—			(584	)		(584	)
Foreign currency translation adjustments		—			—			—		—			494			—			494
Balance at September 28, 2024		57,384		$	1,592		$	579,685	$	924,408		$	(13,429	)	$	—		$	1,492,256

Components of accumulated other comprehensive loss consisted solely of foreign currency translation adjustments.

See accompanying Notes to Condensed Consolidated Financial Statements.

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements

1. Basis of Presentation and Business

Nature of Operations: The operations of Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), consist of manufacturing, retail, construction services, and transportation activities. At September 27, 2025, the Company operated 42 manufacturing facilities throughout the United States (“U.S.”) and 4 manufacturing facilities in western Canada that primarily construct factory-built, timber-framed manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. The Company’s retail operations consist of 82 sales centers that sell manufactured houses to consumers across the U.S. The Company's construction services business provides installation and set-up services of factory-built homes. The Company’s transportation business engages independent owners/drivers to transport recreational vehicles throughout the U.S. and Canada and manufactured houses in certain regions of the U.S.

Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations.

The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries after elimination of intercompany balances and transactions. In the opinion of management, these statements include all normal recurring adjustments necessary to fairly state the Company’s consolidated results of operations, cash flows, and financial position. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on May 27, 2025 (the “Fiscal 2025 Annual Report”).

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes thereto. Actual results could differ from those estimates. The condensed consolidated income statements, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flows for the interim periods are not necessarily indicative of the results of operations or cash flows for the full year.

The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest to March 31. The Company’s current fiscal year, “fiscal 2026,” will end on March 28, 2026 and will include 52 weeks. References to “fiscal 2025” refer to the Company’s fiscal year ended March 29, 2025. The three and six months ended September 27, 2025 and September 28, 2024 each included 13 weeks and 26 weeks, respectively.

During the first half of fiscal 2026, the Company idled production at the Bartow, Florida manufacturing facility and ceased production and exited the lease of the manufacturing facility in Kelowna, British Columbia. The Company incurred plant closure costs of $2.6 million and $6.5 million related to these activities for the three and six months ended September 27, 2025, respectively.

The Company’s allowance for credit losses on financial assets measured at amortized cost reflects management’s estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current economic conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. Accounts receivable are reflected net of reserves of $3.0 million and $1.3 million at September 27, 2025 and March 29, 2025, respectively.

Floor plan receivables consist primarily of amounts loaned by the Company through Triad Financial Services, Inc. ("Triad"), a related party, to certain independent retailers for purchases of homes manufactured by the Company, of which $41.0 million and $38.1 million was outstanding at September 27, 2025 and March 29, 2025, respectively. Floor plan receivables are carried net of payments received and recorded at amortized cost. The Company intends to hold the floor plan receivables until maturity or payoff. These loans are serviced by Triad, to which we pay a servicing fee. Upon execution of the financing arrangement, the floor plan loans are generally payable at the earlier of the sale of the underlying home or two years from the origination date. Floor plan receivables are included in other current assets and other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

The floor plan receivables are collateralized by the related homes, mitigating loss exposure. The Company and Triad evaluate the credit worthiness of each independent retailer prior to credit approval, including reviewing the independent retailer’s payment history, financial condition, and the overall economic environment. The Company evaluates the risk of credit loss in aggregate on existing loans with similar terms, based on historic experience and current economic conditions, as well as individual retailers with past due balances or other indications of heightened credit risk. The allowance for credit losses related to floor plan receivables was not material as of September 27, 2025 or March 29, 2025. Loans are considered past due if any required interest or curtailment payment remains unpaid 30 days after the due date. Receivables are placed on non-performing status if any interest or installment payments are past due over 90 days. Loans are placed on nonaccrual status when interest payments are past due over 90 days. At September 27, 2025, there were no floor plan receivables on nonaccrual status and the weighted-average age of the floor plan receivables was seven months.

Interest income from floor plan receivables is recognized on an accrual basis and is included in interest income in the accompanying Condensed Consolidated Income Statements. Interest income from floor plan receivables for the three months ended September 27, 2025 and September 28, 2024 was $0.8 million and $0.6 million, respectively. Interest income from floor plan receivables for the six months ended September 27, 2025 and September 28, 2024 was $1.5 million and $1.1 million, respectively.

Recently issued accounting pronouncements: In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses", which expands disclosures about a public entity's specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The update will be effective for annual periods beginning after December 15, 2026 (fiscal 2028). We are assessing the effect of this update on our consolidated financial statement disclosures.

In September 2025, the FASB issued ASU 2025-06, "Targeted Improvements to the Accounting for Internal-Use Software", which amends certain aspects of the accounting for the recognition and disclosure of capitalized software costs under ASC 350-40. The update will be effective for annual periods beginning after December 15, 2027 (fiscal 2029). We are assessing the effect of this update on our consolidated financial statements.

2. Business Combinations

Iseman Homes, Inc. Acquisition

On May 30, 2025, the Company acquired all of the outstanding equity interests in Iseman Homes, Inc. ("Iseman Homes") for total purchase consideration of $26.8 million, net of working capital adjustments. The purchase consideration consisted of net cash paid of $24.6 million, contingent consideration with an estimated fair value of $0.2 million, and remaining consideration payable of $2.0 million, payable twelve months after the closing date. The contingent consideration is related to an earnout provision in the event future performance metrics are achieved, with a maximum earnout amount of $1.5 million. The liabilities for the earnout and remaining consideration payable are recorded in other current liabilities in the accompanying Condensed Consolidated Balance Sheets. The Company accounted for the acquisition as a business combination under the acquisition method of accounting provided by FASB ASC 805, Business Combinations ("ASC 805"). As such, the purchase price was allocated to the net assets acquired, inclusive of intangible assets, with the excess fair value recorded to goodwill. The purchase price allocation is based upon preliminary valuation information available to determine the fair value of certain assets and liabilities, including goodwill, and is subject to change as additional information is obtained about the facts and circumstances that existed at the valuation date. The Company expects to finalize the fair values of the assets acquired and liabilities assumed during the one-year measurement period.

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

The following table presents the consideration transferred and the preliminary purchase price allocation:


Description	Amount
Fair value of consideration transferred
Cash consideration, net of cash acquired	$	24,636
Consideration payable		2,000
Estimated earn out consideration		210
Total consideration	$	26,846
Preliminary purchase price allocations:
Trade accounts receivable		470
Inventories		16,926
Other current assets		315
Property, plant, and equipment, net		9,560
Amortizable intangible assets, net		2,900
Accounts payable		(622	)
Other current liabilities		(8,346	)
Identifiable net assets acquired		21,203
Goodwill		5,643
Total purchase price	$	26,846

Trade accounts receivable, other assets, accounts payable and other liabilities are generally stated at historical carrying values as they approximate fair value. Retail inventories are reflected at manufacturer wholesale prices. Intangible assets include $2.9 million for a trade name based on an independent appraisal. The fair value of the trade name was determined using the relief-from-royalty method and was estimated to have a weighted average useful life of ten years from the acquisition date. Fair value estimates of property, plant, and equipment were based on independent appraisals, giving consideration to the highest and best use of the assets. Key assumptions used in the appraisals were drawn from a combination of market, cost, and sales comparison approaches, as appropriate. Level 3 fair value estimates of $9.6 million related to property, plant, and equipment and $2.9 million related to intangible assets were recorded in the accompanying Condensed Consolidated Balance Sheet as of the acquisition date. The goodwill is not expected to be deductible for income tax purposes. For further information on acquired assets measured at fair value, see Note 5, Goodwill, Intangible Assets and Cloud Computing Arrangements.

Management has determined that the pro forma impact of the acquisition of Iseman Homes on revenue and net income is not material to the consolidated financial statements and, accordingly, such information is not presented.

3. Inventories, net

The components of inventory, net of reserves for obsolete inventory, were as follows:


(Dollars in thousands)	September 27, 2025		March 29, 2025
Raw materials	$	108,971	$	110,755
Work in process		36,775		31,079
Finished goods and other		206,464		218,795
Total inventories, net	$	352,210	$	360,629

At September 27, 2025 and March 29, 2025, reserves for obsolete inventory were $11.0 million and $11.1 million, respectively.

4. Property, Plant, and Equipment

Property, plant, and equipment are stated at cost. Depreciation is calculated primarily on a straight-line basis, generally over the following estimated useful lives: land improvements – 3 to 10 years; buildings and improvements – 8 to 25 years; and vehicles and machinery and equipment – 3 to 8 years. Depreciation expense for the three months ended September 27, 2025 and September 28, 2024 was $8.7 million and $6.5 million, respectively. Depreciation expense for the six months ended September 27, 2025 and September 28, 2024 was $17.7 million and $14.2 million, respectively.

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

The components of property, plant, and equipment were as follows:


(Dollars in thousands)	September 27, 2025			March 29, 2025
Land and improvements	$	85,871		$	78,936
Buildings and improvements		207,046			197,491
Machinery and equipment		174,640			172,208
Construction in progress		17,828			14,457
Property, plant, and equipment, at cost		485,385			463,092
Less: accumulated depreciation		(171,411	)		(155,952	)
Property, plant, and equipment, net	$	313,974		$	307,140

5. Goodwill, Intangible Assets, and Cloud Computing Arrangements

Goodwill

Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At September 27, 2025 and March 29, 2025, the Company had goodwill of $363.6 million and $358.0 million, respectively. The change in goodwill balance is due to the acquisition of Iseman Homes. Goodwill is allocated to reporting units included in the U.S. Factory-built Housing segment, which include the Company’s U.S. manufacturing and retail operations. At September 27, 2025, there were no accumulated impairment losses related to goodwill.

Intangible Assets

The components of amortizable intangible assets were as follows:


(Dollars in thousands)	September 27, 2025									March 29, 2025
	Customer Relationships & Other			Trade Names			Total			Customer Relationships & Other			Trade Names			Total
Gross carrying amount	$	82,762		$	49,234		$	131,996		$	82,634		$	46,284		$	128,918
Accumulated amortization		(50,705	)		(19,576	)		(70,281	)		(46,913	)		(17,293	)		(64,206	)
Amortizable intangibles, net	$	32,057		$	29,658		$	61,715		$	35,721		$	28,991		$	64,712

During each of the three months ended September 27, 2025 and September 28, 2024, amortization of intangible assets was $3.0 million.

During each of the six months ended September 27, 2025 and September 28, 2024, amortization of intangible assets was $5.9 million.

Cloud Computing Arrangements

The Company capitalizes costs associated with the development of cloud computing arrangements in a manner consistent with internally developed software. At September 27, 2025 and March 29, 2025, the Company had capitalized cloud computing costs, net of amortization of $21.4 million and $23.0 million, respectively. Cloud computing costs are included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. Amortization of capitalized cloud computing costs for the three months ended September 27, 2025 and September 28, 2024 was $1.0 million and $0.5 million, respectively. Amortization of capitalized cloud computing costs for the six months ended September 27, 2025 and September 28, 2024 was $2.0 million and $0.7 million, respectively.

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

6. Investment in ECN Capital Corporation

In September 2023, the Company entered into a share subscription agreement with ECN Capital Corp. ("ECN") and made a $137.8 million equity investment in ECN on a private placement basis. The Company purchased 33.6 million common shares, representing approximately 12% of the total outstanding common shares of ECN, and 27.5 million mandatory convertible preferred shares (the “Preferred Shares”). The Preferred Shares receive cumulative cash dividends at an annual rate of 4.0%. Following the private placement, the Company owns approximately 19.9% of the voting shares of ECN. In connection with the share subscription agreement, the Company and Triad, a subsidiary of ECN, formed Champion Financing LLC ("Champion Financing"), a captive finance company that is 51% owned by the Company and 49% owned by Triad. The results of Champion Financing are included in the consolidated results of the Company on a three-month lag. Triad's 49% ownership interest is reflected as non-controlling interest in the Condensed Consolidated Income Statements.

The Company's interest in the common stock investment in ECN is accounted for under the equity method and the Company’s share of the earnings or losses of ECN are recorded on a three-month lag. For the three and six months ended September 27, 2025, the Company's share of ECN's net losses was $0.1 million and $0.5 million, respectively. For the three months ended September 28, 2024, the Company's share of ECN's earnings was $0.7 million. For the six months ended September 28, 2024, the Company's share of ECN's losses were $0.5 million. Dividends received on the investment in common stock of ECN are reflected as a reduction to the investment balance and are presented on the Condensed Consolidated Statements of Cash Flows using the nature of the distribution approach. At September 27, 2025 and March 29, 2025, the investment in the common stock of ECN totaled $69.2 million and $70.2 million, respectively, and is included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The aggregate value of the Company’s investment in the common stock of ECN based on the quoted market price of ECN’s common stock at September 27, 2025 was approximately $71.3 million. We assess our investment in ECN common stock for other than temporary impairment on a quarterly basis or when events or circumstances suggest that the carrying amount of the investment may be impaired.

The Company's investment in the Preferred Shares is included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The investment is measured using the measurement alternative for equity investments without a readily determinable fair value. At September 27, 2025 and March 29, 2025, the investment in the Preferred Shares was $64.5 million. There have been no adjustments to the carrying amount or impairment of the investment. For each of the six months ended September 27, 2025 and September 28, 2024, the Company reflected dividend income from the investment in the Preferred Shares of $1.2 million in other income on the accompanying Condensed Consolidated Income Statements. There was no dividend income from the ECN Preferred Shares for either of the three months ended September 27, 2025 or September 28, 2024.

Triad, a related party through its parent ECN, provides loan servicing for the Company's floor plan receivables. The Company pays Triad a fee for servicing loans which was not material for either of the three and six months ended September 27, 2025 or September 28, 2024. Triad also provides floor plan financing of the Company's products to Company-owned and independent retailers. At September 27, 2025 and March 29, 2025, the Company had floor plan payables due to Triad of $23.6 million and $35.0 million, respectively. See Note 9, Debt and Floor Plan Payable for further detail regarding the Company's floor plan financing. At September 27, 2025, the Company had repurchase commitments of $110.7 million on independent retailer floor plan loans outstanding with Triad. See Note 14, Commitments, Contingencies, and Concentrations, for further detail regarding the Company's contingent repurchase obligations.

7. Other Current Liabilities

The components of other current liabilities were as follows:


(Dollars in thousands)	September 27, 2025		March 29, 2025
Customer deposits	$	72,296	$	82,886
Accrued volume rebates		29,123		26,227
Accrued warranty obligations		39,116		40,523
Accrued compensation and payroll taxes		47,353		52,644
Accrued insurance		16,021		15,825
Accrued product liability - water intrusion		32,493		34,094
Other		30,041		27,882
Total other current liabilities	$	266,443	$	280,081

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

8. Accrued Warranty Obligations

Changes in the accrued warranty obligations were as follows:


	Three months ended						Six months ended
(Dollars in thousands)	September 27, 2025			September 28, 2024			September 27, 2025			September 28, 2024
Balance at beginning of period	$	53,263		$	54,111		$	53,155		$	50,869
Warranty expense		18,274			18,131			36,440			36,819
Cash warranty payments		(19,789	)		(16,554	)		(37,847	)		(32,000	)
Balance at end of period		51,748			55,688			51,748			55,688
Less: noncurrent portion in other long-term liabilities		(12,632	)		(11,693	)		(12,632	)		(11,693	)
Total current portion	$	39,116		$	43,995		$	39,116		$	43,995

9. Debt and Floor Plan Payable

Long-term debt consisted of the following:


(Dollars in thousands)	September 27, 2025		March 29, 2025
Obligations under industrial revenue bonds due 2029	$	12,430	$	12,430
Notes payable to Romeo Juliet, LLC, due 2026		5,314		5,314
Notes payable to Romeo Juliet, LLC, due 2039		2,036		2,036
Note payable to United Bank, due 2026		4,265		4,993
Total long-term debt	$	24,045	$	24,773

On July 28, 2025, the Company entered into a Second Amended and Restated Credit Agreement with a syndicate of banks that provides for a revolving credit facility of up to $200.0 million, including a $45.0 million letter of credit sub-facility ("Second Amended Credit Agreement"). The Second Amended Credit Agreement replaced the Company's previously existing Amended and Restated Credit Agreement dated July 7, 2021 (as amended by Amendment No.1 to Amended and Restated Credit Agreement, dated as of May 18, 2023). The Second Amended Credit Agreement allows the Company to draw down, repay and re-draw loans on the available funds during the term, subject to certain terms and conditions, matures in July 2030, and has no scheduled amortization.

The interest rate on borrowings under the Amended Credit Agreement is based on the Secured Overnight Financing Rate ("SOFR") or an Alternative Base Rate ("ABR") plus an interest rate spread. The interest rate spread adjusts based on the consolidated total net leverage of the Company. The interest rate ranges from a high of SOFR plus 1.875% or the ABR plus 0.875% (when the consolidated total net leverage ratio is equal to or greater than 2.25 to 1.00), to a low of SOFR plus 1.125% or the ABR plus 0.125% (when the consolidated total net leverage ratio is less than 0.50 to 1.00). At September 27, 2025, the interest rate under the Second Amended Credit Agreement was 5.29% and letters of credit issued under the Amended Credit Agreement totaled $27.5 million. Available borrowing capacity under the Second Amended Credit Agreement as of September 27, 2025 was $172.5 million.

The Second Amended Credit Agreement contains covenants that restrict the amount of additional debt, liens and certain payments, including equity buy-backs, investments, dispositions, mergers and consolidations, among other restrictions as defined. The Company was in compliance with all covenants of the Amended Credit Agreement as of September 27, 2025.

Obligations under industrial revenue bonds are supported by letters of credit and bear interest based on a municipal bond index rate. The weighted-average interest rate at September 27, 2025, including related costs and fees, was 4.45%. The industrial revenue bonds require lump-sum payments of principal upon maturity in 2029 and are secured by the assets of certain manufacturing facilities.

The Company has notes payable to Romeo Juliet, LLC, a subsidiary of Wells Fargo Community Investment Holdings, Inc. ("WFC"). The weighted-average interest rate on those notes at September 27, 2025 was 5.42%. The notes are secured by certain assets of the Company. In addition, the Company has a note payable to United Bank with an interest rate of 3.85% that is secured by a note receivable from HHB Investment Fund, LLC, a subsidiary of WFC.

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

Floor Plan Payables

The Company’s retail operations utilize floor plan financing to fund the purchase of manufactured homes for display or resale. At September 27, 2025 and March 29, 2025, the Company had outstanding borrowings on floor plan financing agreements of $98.9 million and $106.1 million, respectively. Total credit line capacity provided under the agreements was $253.0 million as of September 27, 2025. The weighted average interest rate on floor plan payables was 6.85% at September 27, 2025. Borrowings are secured by the homes and are required to be repaid when the Company sells the related home to a customer.

10. Revenue Recognition

The following tables disaggregate the Company’s revenue by sales category:


	Three months ended September 27, 2025
(Dollars in thousands)	U.S. Factory-Built Housing		Canadian Factory-Built Housing		Corporate/ Other		Total
Manufacturing	$	393,511	$	26,118	$	—	$	419,629
Retail		255,545		—		—		255,545
Transportation/Other		—		—		9,255		9,255
Total	$	649,056	$	26,118	$	9,255	$	684,429

	Six months ended September 27, 2025
(Dollars in thousands)	U.S. Factory-Built Housing		Canadian Factory-Built Housing		Corporate/ Other		Total
Manufacturing	$	818,488	$	56,238	$	—	$	874,726
Retail		492,499		—		—		492,499
Transportation/Other		—		—		18,522		18,522
Total	$	1,310,987	$	56,238	$	18,522	$	1,385,747

	Three months ended September 28, 2024
(Dollars in thousands)	U.S. Factory-Built Housing		Canadian Factory-Built Housing		Corporate/ Other		Total
Manufacturing	$	378,506	$	22,234	$	—	$	400,740
Retail		208,621		—		—		208,621
Transportation		—		—		7,516		7,516
Total	$	587,127	$	22,234	$	7,516	$	616,877

	Six months ended September 28, 2024
(Dollars in thousands)	U.S. Factory-Built Housing		Canadian Factory-Built Housing		Corporate/ Other		Total

Manufacturing	$	758,800	$	43,033	$	—	$	801,833
Retail		427,860		—		—		427,860
Transportation		—		—		14,963		14,963
Total	$	1,186,660	$	43,033	$	14,963	$	1,244,656

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

11. Income Taxes

For the three months ended September 27, 2025 and September 28, 2024, the Company recorded $18.6 million and $15.4 million of income tax expense and had an effective tax rate of 23.6% and 21.6%, respectively. For the six months ended September 27, 2025 and September 28, 2024, the Company recorded $36.3 million and $29.1 million of income tax expense and had an effective tax rate of 22.2% and 22.0% respectively.

The Company’s effective tax rate for the three and six months ended September 27, 2025 and September 28, 2024, differs from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions.

The One Big Beautiful Bill Act ("OBBBA") was signed into law on July 4, 2025, which is considered the enactment date under U.S. GAAP. OBBBA changed many aspects of U.S. corporate income taxation including accelerated bonus depreciation, research and experimentation expense deduction, and terminating the energy efficient home tax credit. OBBBA contains multiple effective dates and only certain aspects will have a financial reporting implication for the fiscal year ending March 28, 2026. The Company has reflected the current fiscal year to date effects of OBBBA as a change to income taxes payable with an offset to deferred tax assets in the accompanying Condensed Consolidated Balance Sheet.

At September 27, 2025, the Company had no unrecognized tax benefits.

12. Earnings Per Share

Basic net income per share attributable to the Company was computed by dividing net income attributable to the Company by the average number of common shares outstanding during the period. Diluted earnings per share is calculated using our weighted-average outstanding common shares, including the dilutive effect of stock awards as determined under the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per common share:


	Three months ended				Six months ended
(Dollars and shares in thousands, except per share data)	September 27, 2025		September 28, 2024			September 27, 2025		September 28, 2024
Numerator:
Net income attributable to Champion Homes, Inc.	$	58,199	$	54,734		$	122,886	$	100,528
Denominator:
Basic weighted-average shares outstanding		56,352		57,648			56,729		57,757
Dilutive securities		319		537			330		492
Diluted weighted-average shares outstanding		56,671		58,185			57,059		58,249

Basic net income per share	$	1.03	$	0.95		$	2.17	$	1.74
Diluted net income per share	$	1.03	$	0.94		$	2.15	$	1.73

13. Segment Information

Financial results for the Company's reportable segments have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's chief operating decision maker in allocating resources and in assessing performance. The Company’s chief operating decision maker, the Chief Executive Officer, evaluates the performance of the Company’s segments primarily based on net sales, before elimination of inter-company shipments, earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and operating assets.

The Company operates in two reportable segments: (i) U.S. Factory-built Housing, which includes manufacturing and retail housing operations and (ii) Canadian Factory-built Housing. Corporate/Other includes the Company’s transportation operations, the Company's financing activities, corporate costs directly incurred for all segments and intersegment eliminations. Segments are generally determined by geography. Segment data includes intersegment revenues and corporate office costs that are directly and exclusively incurred for each segment. Total assets for Corporate/Other primarily include cash and certain U.S. deferred tax items not specifically allocated to another segment.

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

Beginning in fiscal 2025, the Company adopted ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures". Selected financial information by reportable segment was as follows:


	Three months ended September 27, 2025
(Dollars in thousands)	U.S. Factory-built Housing			Canadian Factory-built Housing			Corporate/Other			Consolidated
Net sales	$	649,056		$	26,118		$	9,255		$	684,429
Cost of sales(1)		(469,627	)		(18,252	)		(1,537	)
Selling, general, and administrative expenses(2)		(79,511	)		(5,126	)		(23,902	)
Other items(3)		—			—			(2,100	)
Segment EBITDA	$	99,918		$	2,740		$	(18,284	)

U.S. Factory-built Housing EBITDA										$	99,918
Canadian Factory-built Housing EBITDA											2,740
Corporate/Other EBITDA											(18,284	)
Depreciation and amortization											(11,658	)
Interest income, net											4,034
Equity in net loss of affiliate											125
Net income attributable to non-controlling interest											1,895
Income before income taxes										$	78,770
Depreciation	$	8,038		$	467		$	161		$	8,666
Amortization	$	2,992		$	—		$	—		$	2,992
Expenditure for segment assets	$	8,258		$	139		$	519		$	8,916
Segment assets(4)	$	1,298,899		$	145,829		$	676,077		$	2,120,805

(1)

Cost of sales is presented net of depreciation expense.

(2)

Selling, general, and administrative expenses are presented net of depreciation and amortization expense.

(3)

Other items for Corporate/Other include equity in net loss of affiliates and non-controlling interest.

(4)

Deferred tax assets for the Canadian operations are reflected in the Canadian Factory-built Housing segment. U.S. deferred tax assets are presented in Corporate/Other because an allocation between segments is not practicable.


	Six months ended September 27, 2025
(Dollars in thousands)	U.S. Factory-built Housing		Canadian Factory-built Housing		Corporate/Other		Consolidated
Net sales	$	1,310,987	$	56,238	$	18,522	$	1,385,747
Cost of sales

Champion Homes, Inc. 10-Q