UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 2928, ~~2025~~2026

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

Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [X ] No [ ]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes [ ] No [X]

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 [X] 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 [X] 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 filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:):


Large accelerated filer [X]	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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. [X]

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. [ ]

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). [ ]

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

The aggregate market value of the Registrant’s common stock, par value $0.0277 per share, held by non-affiliates was $54,~~354~~135,~~199~~959,~~191~~950 (computed by reference to the closing sales price of the Registrant’s common stock as of September 2827, ~~2024~~2025, the last business day of the Registrant’s most recently completed second fiscal quarter). Solely for purposes of this disclosure, shares of common stock held by executive officers and directors of the Registrant as of such date have been excluded because such persons may be deemed to be affiliates. This determination of executive officers and directors as affiliates is not necessarily a conclusive determination for any other purposes.

Number of shares of common stock outstanding as of May 2019, ~~2025~~2026: 5754,~~282~~893,~~557~~854

FORM 10-K

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement used in connection with its ~~2025~~2026 Annual Meeting of Shareholders to be held on July 2430, ~~2025~~2026, and which will be filed within 120 days after the end of the registrant’s fiscal year, are incorporated by reference into this Annual Report on Form 10-K in response to Part III, Items 10, 11, 12, 13, and 14.

TABLE OF CONTENTS

PART I
Item 1.	Business	3
Item 1A.	Risk Factors	1110
Item 1B.	Unresolved Staff Comments	1918
Item 1C.	Cybersecurity	1918
Item 2.	Properties	2019
Item 3.	Legal Proceedings	2120
Item 4.	Mine Safety Disclosures	2120
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	2221
Item 6.	Reserved	2322
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2423
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	3634
Item 8.	Financial Statements and Supplementary Data	3634
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	3634
Item 9A.	Controls and Procedures	3634
Item 9B.	Other Information	3735
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspection	3735
PART III
Item 10.	Directors, Executive Officers, and Corporate Governance	3836
Item 11.	Executive Compensation	3836
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	3836
Item 13.	Certain Relationships and Related Transactions, and Director Independence	3936
Item 14.	Principal Accountant Fees and Services	3936
PART IV
Item 15.	Exhibits and Financial Statement Schedules	4037
	(a) Financial Statements and Financial Statement Schedules	4037
Item 16.	Form 10-K Summary	4139

EXPLANATORY NOTE

On August 5, 2024, Skyline Champion Corporation changed its name to Champion Homes, Inc., which we refer to in this Annual Report on Form 10-K as the “name change.” Unless the context otherwise requires, references herein to the “Company,” “we,” “us,” or “our” refer to Skyline Champion Corporation for periods ending on or before the name change and to Champion Homes, Inc. for any references to the Company after the name change.

PART I

Cautionary Statement About Forward-Looking Statements

Some of the statements in this Annual Report on Form 10-K (this “Annual Report”) that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about our expectations regarding our future liquidity, earnings, expenditures, and financial condition. These statements are often identified by the words “will,” “could”, “should,” “anticipate,” “believe,” “expect,” “intend,” “estimate,” “hope,” or similar expressions. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties. There are risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those in our forward-looking statements, including regional, national and international economic, financial, public health and labor conditions, and the following:

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supply-related issues, including prices and availability of materials;

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changes in U.S trade policies, including tariffs or other trade protection measures;

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labor-related issues;

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inflationary pressures in the North American economy;

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the cyclicality and seasonality of the housing industry and its sensitivity to changes in general economic or other business conditions;

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demand fluctuations in the housing industry, including as a result of actual or anticipated increases in homeowner borrowing rates;

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the possible unavailability of additional capital when needed;

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competition and competitive pressures;

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changes in consumer preferences for our products or our failure to gauge those preferences;

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quality problems, including the quality of parts sourced from suppliers and related liability and reputational issues, including those related to the remediation of the water intrusion claims;

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data security breaches, cybersecurity attacks, and other information technology disruptions;

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the potential disruption of operations caused by the conversion to new information systems;

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the extensive regulation affecting the production and sale of factory-built housing and the effects of possible changes in laws with which we must comply;

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the potential impact of natural disasters or geopolitical conflicts on our supply chain, sales and raw material costs;

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the risks associated with mergers and acquisitions, including integration of operations and information systems;

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periodic inventory adjustments by, and changes to relationships with, independent retailers;

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changes in interest and foreign exchange rates;

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insurance coverage and cost issues;

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the possibility that all or part of our intangible assets, including goodwill, might become impaired;

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the possibility that all or part of our investment in ECN Capital Corp. ("ECN") might become impaired;

the possibility that our risk management practices may leave us exposed to unidentified or unanticipated risks;

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the potential disruption to our business caused by public health issues, such as an epidemic or pandemic, and resulting government actions; and

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other risks described in Part I — Item 1A, "Risk Factors," as well as the risks and information provided from time to time in our other periodic reports filed with the Securities and Exchange Commission (the “SEC”).

If any of the risks or uncertainties referred to above materializes or if any of the assumptions underlying our forward-looking statements proves to be incorrect, then differences may arise between our forward-looking statements and our actual results, and such differences may be material. Investors should not place undue reliance on our forward-looking statements, which speak only as of the date of this report. We assume no obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof, except as required by law.

ITEM 1. BUSINESS

General Overview

Champion Homes, Inc., formerly known as Skyline Champion Corporation, an Indiana corporation, and its consolidated subsidiaries are referred to herein as "Champion Homes," "us," "we," "our," the "Company," and any other similar terms, unless otherwise indicated in this Annual Report.

We are a leading producer of factory-built housing in North America with net sales for the year ended March 2928, ~~2025~~2026 (“fiscal ~~2025~~2026”) of approximately $2.57 billion. We have more than 70 years of homebuilding experience, approximately 9,~~000~~300 employees and 46 48 manufacturing facilities located in 20 states across the United States and three provinces in western Canada. We offer a leading portfolio of manufactured and modular homes, park model RVs, accessory dwelling units (“ADUs”) and modular buildings for the single and multi-family markets. Our facilities are strategically located to serve strong regions in the United States and western Canada. We operated 2017 manufacturing facilities in the top ten states with the highest number of manufactured homes shipped in fiscal ~~2025~~2026. We believe that we maintained the following leading positions in the factory-built housing industry in the United States and western Canada (based on units) in calendar year ~~2024~~2025:

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Number two position in the manufactured housing segment in the United States

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Number one modular builder in the United States

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A leading position in western Canada

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A leading position in park model RV sales

We believe our leading positions are driven by our comprehensive product offering, strong brand reputation, broad manufacturing footprint, and our complementary retail, construction services, and logistics businesses. Our market share in the United States total housing market was approximately 2.56% in fiscal ~~2025~~2026.

We design and build a range of manufactured and modular homes, park model RVs, cabins and ADUs. We believe that the high quality and broad scope of our product and service offerings provide us a competitive advantage relative to other factory-built and certain site-built homes. With our award-winning product designs, we seek to meet the needs of our customers, while also providing them with an array of pre-designed options. Our products are marketed and distributed through a network of independent and company-owned retail sales centers, community operators, government agencies, and builder/developers. We build homes under some of the most well-known brand names in the factory-built housing industry including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, J. Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada.

In addition to our core home-building business, we operate a factory-direct manufactured home retail business, marketed under the Regional Homes, Titan Factory Direct and Champion Homes Center brands. We had 7284 active sales centers spanning the United States at the end of fiscal ~~2025~~2026. We also provide construction services to install and set-up factory-built homes under the Champion Construction brand, and we operate Star Fleet Trucking, which provides transportation services to the manufactured housing and other industries from several dispatch locations across the United States.

During fiscal 2025, we began lending activities through Champion Financing, our joint venture with Triad Financial Services. Champion Financing provides tailored manufactured housing dealer floor plan and consumer retail financing products. We believe those products make it easier for our customers to acquire financing and own a home, filling a portion of the gap in consumer lending in the manufactured-housing markets.

Our principal executive offices are located at 755 West Big Beaver Road, Suite 1000, Troy, Michigan 48084. Our website is located at www.championhomes.com. Our website and the information contained on our website is not incorporated by reference and is not a part of this Annual Report. We make available on our website, as soon as reasonably practicable, all of the reports required to be filed with the SEC. The SEC also maintains a website (www.sec.gov) containing reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The information on the SEC’s website is not incorporated by reference and is not a part of this Annual Report.

Business Strategy

Our business strategy is designed to drive sustainable long-term growth by delivering high-quality, innovative, and affordable homes while building lasting customer relationships through the home-ownership life cycle. We are focused on enhancing operational excellence, expanding customer engagement, leveraging digital and automation technologies, and executing disciplined growth initiatives. Our strategic priorities are organized around five interconnected pillars:

1. Win as a Customer-Centric, High-Performance Agile Team

We are focused on strengthening our operations and culture to be more responsive, agile, and aligned with customer needs. Key initiatives include:

•

Executing process improvements and developing team capabilities to adapt quickly to evolving customer expectations and market dynamics.

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Enhancing our product portfolio by leveraging digital tools that allow customers to shop, design, configure, and price their homes online.

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Using real-time analytics to improve decision-making and operations.

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Expanding our company-owned retail sales center footprint to facilitate customer engagement and responsiveness.

2. Innovate and Differentiate with Products and Services

We continue to invest in product and service innovation to deliver differentiated solutions across customer segments and price points, including:

•

Refining product floor plan designs and options to offer “designed flexibility” to customers.

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Standardizing certain home components to deliver higher value while improving quality and customer satisfaction at competitive prices.

•

Enhancing the online buying experience to meet evolving home-buying trends and consumer engagement expectations.

3. Expand and Elevate Our Go-to-Market Channels, Including Delivering Experiences Before, During, and After the Sale that Earn Customers and Referrals

We are expanding our go-to-market capabilities to provide a seamless, enhanced experience at every stage of the customer journey:

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Pursuing strategic acquisitions of retail locations, and manufacturing facilities to expand capabilities efficiently.

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Utilizing digital tools and customer touchpoints to build long-term advocacy and facilitate referral generation.

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Invest in post-sale engagement tools that extend relationships beyond the initial home purchase.

4. Increase Awareness, Demand, and Advocacy for Our Brands, Products, and Services

We are committed to strengthening brand awareness, building customer loyalty, and increasing demand by:

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Investing in digital marketing and social engagement initiatives to attract new customers and strengthen brand visibility.

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Continuing to increase our products and services beyond the manufacturing process.

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Growing Champion Financing in partnership with Triad Financial Services to enhance tailored dealer floor plan and consumer retail financing products.

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Leveraging technology, selling tools, and customer experience practices to accelerate sales growth.

5. Execute the Fundamentals, Efficiently Leverage Our Costs/ Investments in People, Processes, Data, and Technology

We are executing on operational fundamentals and smart resource management to scale efficiently and drive growth:

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Investing in an enterprise-wide, cloud-based platform to facilitate smarter decision-making, and improve manufacturing execution.

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Implementing production automation to reduce reliance on direct labor, reduce material waste, and improve quality.

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Maintaining a disciplined approach to operational execution, cost management, and investment prioritization to deliver profitable, scalable growth.

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Implementing continuous improvement initiatives related to production, procurement, and labor cost savings.

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Employing metrics-driven accountability across all operations.

~~Environmental, Social and Governance (“ESG”)~~4

Corporate Sustainability

We demonstrate our commitment to ESG through company-wide and plant-specific programs and through our everyday business practices when providing high-quality, yet affordable homes to U.S. and Canadian homebuyers. As part of this commitment, we have partnered with a third party to inform, develop, and formalize our ESG strategy. Our Sustainability Report is published on our website at www.championhomes.com. Manufactured and modular homes cost up to 50% less per square foot than conventional site-built homes, expanding the opportunity for individuals to own a home despite an ever-growing housing affordability gap.

~~The~~Champion ~~Board~~Homes ofmanages ~~Directors~~its ~~has~~operations ~~formal~~to ~~responsibility~~minimize ~~for~~resource ~~the~~consumption ~~oversight~~ and ~~integration~~environmental ofimpacts. ~~all~~We ofcontinue ~~the~~to ~~Company’s~~identify ~~sustainability~~opportunities ~~programs~~to ~~and~~reduce ~~policies,~~our ~~and~~environmental ~~the~~impact ~~Audit~~across ~~Committee,~~our ~~Compensation~~operations ~~Committee~~by reducing raw material waste, designing and ~~Nominating~~constructing ~~and~~energy ~~Governance~~efficient ~~Committee~~homes, ~~have~~conserving ~~lead~~our ~~responsibility~~natural ~~for the~~resources ~~Company’s~~through ~~strategy,~~recycling ~~policies~~programs and ~~practices~~reducing ~~with~~our ~~respect~~carbon footprint by producing our homes in factories close to ~~environmental~~where ~~sustainability,~~our ~~social~~customers and ~~human~~employees ~~capital~~live. ~~matters,~~Many ~~and~~of ~~governance,~~our ~~respectively~~U.S. ~~Our~~manufacturing ~~five~~facilities ~~ESG~~are ~~tenets~~certified ~~include:~~to ~~(1)~~produce Energy Star® energy efficient rated homes through a special Environmental ~~Focus,~~Protection ~~(2)~~Agency ~~Health~~program &for ~~Safety,~~manufactured ~~(3)~~housing. ~~Human~~Environmental ~~Capital,~~sustainability ~~(4)~~is ~~Community~~at ~~Outreach,~~the ~~and~~forefront ~~(5)~~of ~~Governance~~what we do every day.

~~Champion~~We ~~Homes~~participate ~~manages~~in ~~its~~a ~~operations~~reforestation toprogram ~~minimize~~with ~~resource~~Arbor ~~consumption~~Day ~~and environmental impacts~~Foundation. WeWith ~~continue~~forestry toproducts ~~identify~~central ~~opportunities~~ to ~~reduce~~the ~~our~~construction ~~environmental~~of ~~impact across our operations by reducing raw material waste, designing and constructing energy efficient~~ homes, ~~conserving~~we ~~our~~participate ~~natural~~in ~~resources~~a ~~through~~program ~~recycling~~to ~~programs~~plant ~~and~~one ~~reducing~~tree ~~our~~for ~~carbon~~every ~~footprint~~tree byused ~~producing our homes~~ in ~~factories~~construction ~~close to where our customers and employees live. Many~~ of our Uhomes.S. ~~manufacturing~~Through ~~facilities~~this ~~are~~partnership, ~~certified~~we tohave ~~produce~~planted ~~Energy~~more ~~Star®~~than ~~energy~~two ~~efficient~~million ~~rated~~trees ~~homes~~since ~~through~~2021. aReforestation ~~special~~contributes ~~EPA~~to ~~program~~the ~~for~~environment ~~manufactured~~by ~~housing.~~replenishing ~~Environmental~~forests, ~~sustainability~~reducing isgreenhouse atgases ~~the~~("GHG") ~~forefront~~emissions, ofand ~~what~~protecting welocal ~~do every day~~watersheds.

We construct manufactured homes in controlled environments. Our efficient construction process results in less energy usage and material waste compared to traditional site-built construction. In many of our plants, we have transitioned to LED lighting, and we recycle insulation material, lumber, metals, plastics, paper and many other products. In the course of executing our expansion plans, we have repurposed older buildings, both revitalizing the local community and preserving vacant land. This reduces the need for new building materials and extensive deployment of construction equipment, and thus reduces carbon emissions.

We participate in a reforestation program with Arbor Day Foundation. With forestry products central to the construction of homes, we participate in a program to plant one tree for every tree used in construction of our homes. Through this partnership, we have planted more than one million trees since 2021. Reforestation contributes to the environment by replenishing forests, reducing greenhouse gases ("GHG") emissions, and protecting local watersheds.

As a nationwide provider of affordable housing, we have a social responsibility to not only the buyers of our homes, our retail and community customers and our employees, but also to the communities in which they live and work. Many of our manufacturing facilities participate locally to support programs such as Habitat for Humanity and other local charities as well as work-study programs with local community colleges and high schools.

Champion Homes is committed to ensuring sound corporate governance. We strive to maintain strong governance practices that protect and enhance accountability for the benefit of Champion Homes, its shareholders, customers, employees and other business stakeholders. We regularly review and refine our governance practices and policies to align with evolving issues. Our internal risk management team oversees compliance with applicable laws and regulations and coordinates with subject matter experts throughout the business to identify, monitor and mitigate risk including information security risk management and cyber defense programs. Our Corporate Governance Guidelines, the charters of committees of our Board and our Code of Conduct can be found in the Governance Documents section under the Governance tab on our website at www.championhomes.com. Additional information on our Corporate Governance policies can be found in our Proxy Statement filed with the SEC.

Human Capital

The Champion Homes team manages our business in accordance with the Company’s Core Operating Principles:

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Build and develop exceptional teams

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Create a safe work environment

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Build strong relationships

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Take pride in our craftsmanship

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Act with integrity and respect

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Be open and honest

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Run the business like it is your own

We appreciate each member of the Champion Homes team and the unique skills and diversity of thought that each employee contributes to the overall success of the Company. We strive for an inclusive environment and reward individual contributions that foster innovative ideas for improving our products and workplace. We do not tolerate discrimination or harassment of any kind, including, but not limited to discrimination or harassment on the basis of gender identity, race, religion, age or disabilities. We are committed to the development of our employees. The Company follows standard onboarding and training protocols for our direct labor team members and also offers management and OSHA training for our supervisors. We are committed to improving employee engagement and reducing turnover through these onboarding, training and mentoring activities. Depending on availability, our plants participate in local outreach programs and hire disadvantaged members of the local community.

In furtherance of our commitments to our employees and communities, the Company has adopted an internal ~~Anti-~~Human Trafficking Policy applicable to all of our operations and further engaged a third-party vendor to audit our supply chain annually to identify potential human trafficking risks. A copy of our ~~Anti-~~Human Trafficking Policy is available within the ~~Governance~~Investor Relations section of our website at www.championhomes.com.

As of March 29, 2025, we employed approximately 9,000 full and part time employees. Our human capital resource objectives include identifying, recruiting, training, retaining and incentivizing our employees. We are proud of the strong relationship we maintain with our employees and seek to support them through competitive compensation packages and a comprehensive suite of benefits. As of March 29, 2025, our manufacturing facilities in Canada employed approximately 750 workers of which the majority belong to trade associations that operate under collective bargaining agreements. There are five collective bargaining agreements (one for each Canadian manufacturing facility) and each has a separate expiration date. Four of the agreements are set to expire at various dates through 2027. One agreement expired in June 2024 and is being renegotiated. 5

As of March 28, 2026, we employed approximately 9,300 full and part time employees. Our human capital resource objectives include identifying, recruiting, training, retaining and incentivizing our employees. We are proud of the strong relationship we maintain with our employees and seek to support them through competitive compensation packages and a comprehensive suite of benefits. As of March 28, 2026, our manufacturing facilities in Canada employed approximately 700 workers of which the majority belong to trade associations that operate under collective bargaining agreements. There are four collective bargaining agreements (one for each Canadian manufacturing facility) and each are set to expire at various dates through 2028.

We are committed to conducting our business with integrity and in compliance with all applicable laws of the cities, states and countries in which we operate. We have adopted a written Code of Business Conduct and have a company-wide training program to train and assist employees in this regard. We encourage employees to report concerns through a variety of channels, including a compliance and ethics line which allows for anonymous reporting. All reports are investigated and resolved. We also maintain an anti-retaliation policy such that any employee who reports a concern in good faith is protected from harassment, retaliation or adverse employment consequences.

We take the health and safety of our employees seriously. We provide a variety of Company sponsored healthcare programs, including health, dental, and vision, that allow employees to manage their and their family's health and ~~wellbeing~~well-being. We expect each employee to follow our safety standards and protocols. Our Environmental Health and Safety (“EHS”) team works to benchmark and implement EHS best practices across our plants. Each of our locations performs regular safety audits to ensure that proper safety policies are in place and appropriate safety training is provided. In addition to training and development, we measure and report monthly safety metrics and regularly review our safety performance with our Board of Directors.

Factory-Built Housing

A majority of our manufactured products are constructed in accordance with the regulations and rules of the U.S. Department of Housing and Urban Development (“HUD”) and the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended ("HUD code"). We produce a broad range of manufactured and modular homes under a variety of brand names and in a variety of floor plans and price ranges. While most of the homes we build are single-family, multi-section, ranch-style homes, we also build two-story and single-section homes, as well as multi-family units such as town homes, apartments, duplexes, and triplexes. The single-family homes that we manufacture generally range in size from 400 to 4,000 square feet and typically include two to four bedrooms, a living room or family room, a dining room, a kitchen and typically two full bathrooms. We also build park model RVs and cabins for resorts and campgrounds, and ADUs for backyard or recreational living. We believe our portfolio of brands and home offerings, and our ability to quickly shift production gives us the ability to adapt as consumer preferences change or demand in certain markets change.

We regularly introduce homes with new floor plans, exterior designs and elevations, decors and features. Our corporate architecture, marketing, and engineering departments work with our manufacturing facilities to design homes that appeal to consumers’ changing tastes at appropriate price points for their respective markets. We design and build homes with a traditional residential or site-built appearance through the use of, among other features, dormers and higher pitched roofs. We are also very active in the design and construction of energy-efficient homes and built over 56,~~500~~200 homes last year that met the Energy Star® certification standards.

We offer our Genesis brand of homes which have features similar to site-built home amenities such as porches and garages. These homes are designed to be eligible for financing programs with terms similar to traditional mortgages which make them attractive to the builder/developer segment of the housing market. We expect our builder/developer customer base to continue to grow as those customers realize the value proposition these homes provide compared to other site-built alternatives.

attractive to the builder/developer segment of the housing market. We expect our builder/developer customer base to continue to grow as those customers realize the value proposition these homes provide compared to other site-built alternatives.

The components and products used in factory-built housing are generally of the same quality as those used by other homebuilders, including conventional site-builders. The primary components include lumber, plywood, OSB, drywall, steel, floor coverings, insulation, exterior siding (vinyl, composites, wood and metal), doors, windows, shingles, kitchen appliances, furnaces, plumbing and electrical fixtures and hardware. These components are presently available from a variety of sources and we are not dependent upon any single supplier. Prices of certain materials such as lumber, insulation, steel, and drywall can fluctuate significantly due to changes in demand and supply. We endeavor to mitigate the impact of supply chain challenges through sourcing alternative materials, where appropriate, and exploring alternative supply options. We generally have been able to pass higher material costs on to customers in the form of surcharges and price increases, although that ability fluctuates over time and by market depending on demand trends. Typically, a one to three-week supply of raw materials is maintained at our manufacturing facilities.

Most completed factory-built homes have components consistent with conventional site-builders, such as cabinets, wall and floor coverings, appliances, and electrical, heating and plumbing systems. Optional factory installed features include fireplaces, dormers, entertainment centers and skylights. Upon completion of the home at the factory, homes sold to retailers are transported to a retail sales center or directly to the home site. Homes sold to builders and developers are generally transported directly to the home site. At the home site, the home is placed on a foundation or otherwise affixed to the property and readied for occupancy, either by our employee set crews or third-party contractors. The sections (also referred to as floors) of a multi-section home are joined and the interior and exterior seams are finished at the home site. The consumer purchase of the home may also include retailer or contractor supplied items such as additional appliances, air conditioning, furniture, porches, decks, and garages.

We construct homes in indoor facilities using an assembly-line process employing approximately 100 to 200 production employees at each facility. Factory-built HUD code homes are constructed in one or more sections affixed to a steel support frame that allows the sections to be moved through the assembly line and transported upon sale. The sections of many of the modular homes we produce are built on wooden floor systems and transported on carriers that are removed upon placement of the home at the home site. Each section or floor is assembled in stages, beginning with the construction of the frame and the floor, then adding the walls, ceiling and roof assembly, and other constructed and purchased components, and ending with a final quality control inspection. The efficiency of the assembly-line process, protection from the weather, and favorable pricing of materials resulting from our substantial purchasing power enables us to produce homes more quickly, with less material waste and often at a lower cost than a conventional site-built home of similar quality.

The production schedules of our homebuilding facilities are based upon customer orders. Orders are generally subject to cancellation at any time up to the commencement of production without penalty and are not necessarily an indication of future business. Retailers place orders for retail stocking (inventory) purposes and for homebuyer orders. Before scheduling homes for production, orders and availability of financing are confirmed with our customer and, where applicable, their customer's lender. Because we produce homes to fulfill wholesale orders, our factories generally do not carry finished goods inventories, except for homes awaiting delivery. We manage our production levels, capacity and workforce size based upon current market demands. In typical demand and economic environments, orders are generally filled within 90 days of receipt. At March 2928, ~~2025~~2026, we had a manufacturing backlog of home orders with wholesale sales value of approximately $~~343~~316.40 million. After production of a particular home has commenced, the order becomes noncancelable and the customer is obligated to take delivery of the home.

Although factory-built homes can be produced throughout the year in indoor facilities, demand for homes is usually affected by inclement weather and by the cold winter months in northern areas of the U.S. and in Canada. Charges to transport homes increase with the distance from the factory to the retailer or home site. As a result, most of the retailers and builders/developers we sell to are located within a 500-mile radius of our manufacturing plants. In addition to our traditional channels of distribution, we are one of a limited number of manufactured homebuilders that have been approved for contracts with the Federal Emergency Management Agency (“FEMA”) and have historically provided housing assistance requirements following natural disasters and other housing emergencies. ~~In February 2022, we received a Delivery Disaster Relief Order from FEMA for approximately $200 million in revenue which was completed in the first half of fiscal 2023.~~

We offer a wide selection of manufactured and modular homes as well as park model RVs at company-owned retail locations marketed under the Regional Homes, Titan Factory Direct and Champion Homes Center brands. We maintain our company-owned retail presence through 7284 retail sales centers across the U.S. Our captive retail distribution enhances the reach of our factory-built housing products directly to homebuyers.

Each of our full-service retail sales centers has a sales office and a variety of model homes of various sizes, floor plans, features, and prices that are displayed in a residential setting with sidewalks and landscaping. Customers may purchase a home from an inventory of homes maintained at the location, including a model home, or may order a home that will be built to their specifications. Our retail organization provides industry leadership with the expertise to be responsive to local economic conditions and ultimately provide affordable homes to value-conscious homebuyers.

7During fiscal 2026, the average selling price of our factory-built homes in the U.S. was $97,800 and in Canada was $122,800. Manufactured home wholesale prices generally ranged from $25,000 to over $400,000. Retail sales prices of the homes, without land, generally ranged from $40,000 to over $500,000, depending upon size, floor plan, features, and options.

Our retail organization provides industry leadership with the expertise to be responsive to local economic conditions and ultimately provide affordable homes to value-conscious homebuyers.

During fiscal 2025, the average selling price of our factory-built homes in the U.S. was $93,300 and in Canada was $120,000. Manufactured home wholesale prices generally ranged from $25,000 to over $400,000. Retail sales prices of the homes, without land, generally ranged from $30,000 to over $450,000, depending upon size, floor plan, features, and options.

Logistics

We operate a logistics business, Star Fleet Trucking, specializing in the transportation of manufactured homes and recreational vehicles from manufacturing facilities to retailers. Star Fleet’s delivery logistics are coordinated through dispatch terminals located throughout the U.S. Star Fleet has strong relationships with its customer base, which includes some of the largest manufactured housing companies (including our own factory-built housing operations) and recreational vehicle manufacturers in the U.S.

Market Overview

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In inflationary and higher interest rate environments, factory-built housing provides an affordable alternative to other types of housing such as site-built housing and condominiums, and to existing housing such as pre-owned homes and apartments. According to statistics published by the Institute for Building Technology and Safety ("IBTS") and the United States Department of Commerce, Bureau of the Census, for the ~~2024~~2025 calendar year, manufactured housing wholesale shipments of homes constructed in accordance with the HUD code accounted for an estimated ~~9.5~~10% of all new single-family homes starts.

According to data reported by the Manufactured Housing Institute (“MHI”), industry manufactured home shipments were 105,206, 92,288, and 104,374 units during fiscal 2025, 2024, and 2023, respectively. While shipments of HUD-coded manufactured homes have improved modestly in recent years, manufactured housing’s most recent annual shipment levels still operate at lower levels than the long-term historical average of over 200,000 units annually. The market for factory-built housing is affected by a number of factors, including the availability, cost and credit underwriting standards of consumer financing, consumer confidence, employment levels, general housing market, interest rates and other economic conditions and the overall affordability of factory-built housing versus other forms of housing. In the past, a number of factors have restricted demand for factory-built housing, including, in some cases, less-favorable financing terms compared to site-built housing, the effects of restrictive zoning on the availability of certain locations for home placement and, in some cases, an unfavorable public image. Certain of these adverse factors have lessened considerably in recent years with the improved quality and appearance of factory-built housing. 7

According to data reported by the Manufactured Housing Institute (“MHI”), industry manufactured home shipments were 100,380, 105,206, and 92,288 units during fiscal 2026, 2025, and 2024, respectively. While shipments of HUD-coded manufactured homes have improved modestly in recent years, manufactured housing’s most recent annual shipment levels still operate at lower levels than the long-term historical average of over 200,000 units annually. The market for factory-built housing is affected by a number of factors, including the availability, cost and credit underwriting standards of consumer financing, consumer confidence, employment levels, general housing market, interest rates and other economic conditions and the overall affordability of factory-built housing versus other forms of housing. In the past, a number of factors have restricted demand for factory-built housing, including, in some cases, less-favorable financing terms compared to site-built housing, the effects of restrictive zoning on the availability of certain locations for home placement and, in some cases, an unfavorable public image. Certain of these adverse factors have lessened considerably in recent years with the improved quality and appearance of factory-built housing.

Home Buyer Demographics. We believe the segment of the housing market in which manufactured housing is most competitive includes consumers with household incomes under $60,000. This segment has a high representation of young single persons and married couples, first time home buyers, and homebuyers age 55 and older. The comparatively low cost of manufactured homes is attractive to these consumers. People in rural areas, where fewer housing alternatives exist, and those who presently live in factory-built homes, also make up a significant portion of the demand for new factory-built housing. We believe higher-priced, multi-section manufactured and modular homes are attractive to households with higher incomes as an alternative to rental housing and condominiums and are well suited to meet the needs of the retiree buyer in many markets.

The two largest manufactured housing consumer demographics are Millennials (generally defined as those born between 1981 – 1996) and Baby Boomers (generally defined as those born between 1946 – 1964). Millennials are generally first-time home buyers who may be attracted by the affordability and diversity of style choices of factory-built homes. Baby Boomers are similarly interested in the value proposition; however, they are also motivated by the energy efficiency and low maintenance requirements of factory-built homes, and by the lifestyle offered by planned communities that are specifically designed for homeowners that fall into this age group. Recently, we have seen market trends pointing to increased sales of ADUs as well as people seeking rent-to-own single-family options.

Financing

Commercial Financing. Independent retailers of factory-built homes generally finance their inventory purchases from manufacturers with floor plan financing provided by third-party lending institutions and secured by a lien on the homes. The availability and cost of floor plan financing can affect the amount of retailer new home inventory, the number of retail sales centers and related wholesale demand. Under a typical floor plan financing arrangement, an independent financial institution specializing in this line of business provides the retailer with a loan for the purchase price of the home and maintains a security interest in the home as collateral. The financial institution customarily requires us, as the manufacturer of the home, to enter into a separate repurchase agreement with the financial institution that, upon default by the retailer and under certain other circumstances, obligates us to repurchase the financed home at declining prices over the term of the repurchase agreement (which, in most cases, is 24 months but under certain circumstances can be until the home is sold by the retailer). The price at which we may be obligated to repurchase a home under these agreements is based upon the amount financed, plus certain administrative and shipping expenses. Our obligation under these repurchase agreements ceases upon the purchase of the home by the retail customer. The maximum amount of our contingent obligations under such repurchase agreements was approximately $~~241~~233.97 million as of March 2928, ~~2025~~2026. The risk of loss under these agreements is spread over many retailers and is further reduced by the resale value of the homes. During fiscal ~~2025~~2026, approximately 3226% of our sales to independent retailers were financed under floor plan agreements with national lenders, while the remaining 6874% were financed under various arrangements with local or regional banks, internal financing, or paid in cash. We generally receive payment from the lending institution 5 to 10 days after a home is sold and invoiced.

Consumer Financing. Sales of factory-built homes are significantly affected by the availability, credit underwriting standards, and cost of consumer financing. There are three basic types of consumer financing in the factory-built housing industry: 1) conforming mortgage loans which comply with the requirements of the Federal Housing Administration (“FHA”), Department of Veterans Affairs, Department of Agriculture or Government-Sponsored Enterprise (“GSE”) loans which include Fannie Mae and Freddie Mac loans; 2) non-conforming mortgage loans for purchasers of the home and the land on which the home is placed; and 3) personal property loans (often referred to as home-only or chattel loans) for consumers where the home is the sole collateral for the loan (generally HUD-coded homes).

Industry trade associations are working towards favorable legislative and GSE action to address the mortgage financing needs of potential buyers of affordable homes, and some progress has been achieved. Many moderate-income families cannot afford to buy a home due to the increasing costs of newly constructed homes, rising interest rates, and decreasing supply of existing, affordable homes. Federal law required the GSEs to issue a regulation to implement the Duty to Serve (“DTS”) requirements specified in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008. Fannie Mae and Freddie Mac released their final Underserved Markets Plan for 2025 – 2027 that describes, with specificity, the actions they will take over that three-year period to fulfill the DTS obligation. These plans became effective on January 1, 2025. The GSEs' Underserved Markets Plan's current areas of focus are as follows: 1) purchase more loans used to finance manufactured homes titled as real property; 2) expand adoption of conventional financing for manufactured homes; and 3) expand policies that preserve affordability of manufactured homes. In 2020, the GSEs rolled out financing programs specifically for homes built to the HUD code, which include CHOICEHome® from Freddie Mac and MH Advantage® from Fannie Mae. HUD-coded homes manufactured for these programs have features comparable to site-built homes, including, drywall throughout, higher-pitch roof line, energy-efficient features, lower profile foundation, plus additional options such as a garage or carport. These products aim to promote quality manufactured homes as an acceptable alternative to site-built homes and will allow moderate-income families to purchase a manufactured home with lending terms similar to those for site-built homes. Our Genesis brand of homes is built to these specifications. We continue to work with builder/developers to cultivate strategies to bring these products to the marketplace.

GSEs' Underserved Markets Plan's current areas of focus are as follows: 1) purchase more loans used to finance manufactured homes titled as real property; 2) expand adoption of conventional financing for manufactured homes; and 3) expand policies that preserve affordability of manufactured homes. In 2020, the GSEs rolled out financing programs specifically for homes built to the HUD code, which include CHOICEHome® from Freddie Mac and MH Advantage® from Fannie Mae. HUD-coded homes manufactured for these programs have features comparable to site-built homes, including, drywall throughout, higher-pitch roof line, energy-efficient features, lower profile foundation, plus additional options such as a garage or carport. These products aim to promote quality manufactured homes as an acceptable alternative to site-built homes and will allow moderate-income families to purchase a manufactured home with lending terms similar to those for site-built homes. Our Genesis brand of homes is built to these specifications. We continue to work with builder/developers to cultivate strategies to bring these products to the marketplace.

The DTS plans also considered but did not include the potential for the GSEs to provide liquidity to the chattel lending market. The GSEs could potentially serve as additional sources of funding as there is unmet demand in the chattel loan industry, and GSE involvement could increase volume substantially. Both Fannie Mae and Freddie Mac indicated they would continue to work with regulators on the safety, soundness, and viability of a chattel loan pilot program. Separate from the GSE involvement in chattel markets, there have been several secondary market chattel private placement offerings over the last three years. Although some limited progress has been made in this area, a meaningful positive impact in the form of increased home orders has yet to be realized.

Competition

The housing industry is highly competitive based upon several factors, including price, product features, reputation for service and quality, depth of distribution or location, and financing. Capital requirements for entry into the industry are relatively low.

Factory-built housing is also very competitive. According to MHI, in March ~~2025~~2026, there were 3833 producers of manufactured homes in the U.S. operating an estimated ~~152~~147 production facilities. For calendar ~~2024~~2025, the top three companies had a combined market share for HUD code homes of approximately 85%. We estimate that there were approximately 2,~~500~~400 industry retail locations operating throughout the U.S. during calendar ~~2024~~2025.

Based on industry data reported by IBTS, in fiscal ~~2025~~2026 our U.S. wholesale market share of HUD code homes sold was 22.05%, compared to 1922.90% in fiscal ~~2024~~2025. We compete with the other producers of manufactured homes, as well as companies selling homes repossessed from wholesalers or consumers. In addition, manufactured homes compete with new and existing site-built homes, as well as apartments, townhouses, and condominiums. Collectively, manufactured housing represents approximately ~~9.5~~10% of annual U.S. single family home starts.

There are a number of other national and regional manufacturers competing for a significant share of the manufactured housing market in the U.S. Certain of these competitors may possess greater financial, manufacturing, distribution, and marketing resources.

Government Regulation

Our manufactured homes are subject to numerous federal, state and local laws, codes and regulations. The majority of our homes are built to comply with the HUD code which includes regulations that cover all aspects of manufactured home construction and installation, including structural integrity, fire safety, wind loads, thermal protection and ventilation. To the extent state and local regulations conflict with the HUD code, they are pre-empted. Our modular homes are built to comply with applicable state and local building codes. Our park model RVs are built in conformity with the applicable standards approved by the American National Standards Institute, a private, non-profit organization that administers and coordinates voluntary standards and conformity programs.

A variety of laws affect the financing of the homes we manufacture. The Federal Consumer Credit Protection Act and Regulation Z promulgated thereunder require written disclosure of information relating to such financing, including the amount of the annual percentage interest rate and the finance charge. A variety of state laws also regulate the form of financing documents and the allowable deposits, finance charge and fees charged. Federal laws permit manufactured housing retailers to assist home buyers with securing financing for the purchase of homes; however, they are prohibited from negotiating the financing terms.

Governmental authorities enforcing these numerous laws and regulations can impose fines and/or seek injunctive relief for violations. We believe that our operations are in compliance with the requirements of the applicable laws and regulations.

Seasonality

The housing industry is subject to seasonal fluctuations based on home buyer purchasing patterns. We typically experience decreased home buyer traffic during holidays and popular vacation periods. Demand for our core single-family new home products typically peaks each spring and summer before declining in the winter, consistent with the overall housing industry.

Available Information

Our website address is www.championhomes.com and we make available, free of charge, on or through our website all of our periodic reports, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and current reports on Form 8-K, as soon as reasonably practicable after we file such reports with the SEC.

109

ITEM 1A. RISK FACTORS

Our business involves a number of risks and uncertainties. You should carefully consider the following risks, together with the information provided elsewhere in this Annual Report. The items described below are not the only risks facing us. Additional risks that are currently unknown to us or that we currently consider to be immaterial may also impair our business or adversely affect our financial condition or results of operations.

Market, Industry and Supply Chain Risks

Raw material shortages and price increases could delay or increase the cost of construction of our products which could materially and adversely impact our results of operations and our cash flows.

Certain materials used in the construction of homes such as lumber, insulation, steel, drywall, oil-based products and fuel, among others, can become scarce during periods of high demand for new home construction as well as renovation and remodeling of existing homes. We depend on timely and sufficient delivery of raw materials from our suppliers. In addition, a few key components of our products are produced by a small group of quality suppliers that have the capacity to supply large quantities. Disruption to the supply chain of these key components, including as a result of changes in U.S. trade policies, could have an adverse impact on our production output. Raw material shortages from these and other suppliers can be more severe during periods following natural disasters, geopolitical conflicts or other broader economic disruptions.

Changes in U.S. trade policies, including tariffs or other trade protection measures, could negatively impact our business operations, results of operations, and cash flows by increasing our costs of goods, causing supply chain disruptions, or reduce demand for our products.

Pricing for raw materials can be affected by national, regional, local, economic and political factors, including tariffs and periods of high inflation. We obtain raw materials through various supply channels, some of which involve importing materials from foreign countries. In fiscal 2025, the United States imposed increased tariffs on foreign imports into the United States from certain countries as well as additional proposed tariffs on other countries. The tariff policy environment has been and is expected to continue to be dynamic, and we cannot predict what additional actions may ultimately be taken by the United States or other governments with respect to tariffs or trade relations. As a result, we may be required to, among other things, take steps to mitigate the impact of tariffs on our business, including by raising the prices on products subject to such tariffs to share these costs with our customers and/or by making changes to our supply chain practices, sources of supply, or manufacturing locations, which could also have significant impacts on our financial results. Changes in U.S. trade policies could also lead to higher inflation, which would negatively impact consumers' purchasing power and demand for our products. Raw material shortages and price increases could cause delays in and increases to our costs of construction which in turn could have a material adverse effect on our business, financial condition, results of operations and cash flows.

The factory-built housing industry is cyclical, is affected by seasonality and is sensitive to changes in general economic or other business conditions.

The factory-built housing industry is affected by seasonality. Sales during the period from March to November are typically higher than in other months. As a result, our sales and operating results sometimes fluctuate and may continue to fluctuate in the future.

The factory-built housing industry is also sensitive to changes in economic conditions and other factors, such as pandemics, employment rates, job growth, population growth, consumer confidence, consumer income, availability of financing, interest rate levels, and an oversupply of homes for sale. Changes in any of these conditions generally, or in the markets where we operate, could reduce demand and constrain pricing for new factory-built homes in these areas or result in customer cancellations of pending shipments. Reductions in the number of homes shipped by us, or constraints on the prices we can charge, could result in a decrease in our net sales and earnings, which could adversely affect our financial condition.

We are subject to demand fluctuations in the housing industry. Changes in demand could adversely affect our business, results of operations, and financial condition.

Demand for our homes is subject to fluctuations in the housing market generally. In a housing market downturn, our sales and results of operations could be adversely affected; there might be significant inventory impairments and other write-offs; our gross margins could decline significantly from historical levels; and we might incur losses from operations. We cannot predict the future demand for housing. If it were to decline significantly, our financial condition could be adversely affected.

Rapid or significantly increasing demand can also adversely affect our business. Longer periods of time between order acceptance and production introduce a risk that we may not be able to construct homes profitably if material and labor costs increase. Although we have generally been able to pass along price increases to our customers in periods of rising costs, we may not be able to in the future, or the price increases may cause consumers to explore other housing alternatives and/or exit the home buying process, negatively impacting demand for our homes.

Factory-built housing operates in the highly competitive housing industry, and, if other homebuilders are more successful or offer better value to our customers, then our business could decline.

We operate in a very competitive environment and face competition from a number of other homebuilders in each market in which we operate. We compete with large national and regional home building companies and with smaller local homebuilders for financing, raw materials, and skilled management and labor resources. Some of our manufacturing competitors have captive retail distribution systems and consumer finance and insurance operations. In addition, there are independent factory-built housing retail locations that sell competitors’ products in most areas where our homes are sold and in most areas where we have Company-owned retail operations. Because barriers to entry to the industry at both the manufacturing and retail levels are low, we believe that it is relatively easy for new competitors to enter our markets. In addition, our products compete within the housing industry more broadly with other forms of low to moderate-cost housing, including site-built homes, panelized homes, apartments, townhouses, condominiums, and repossessed homes. We also compete with resale homes, also referred to as “previously owned” or “existing” homes, as well as rental housing alternatives.

An oversupply of homes available for sale or the heavy discounting of home prices by our competitors could adversely affect demand for our homes and the results of our operations. An increase in competitive conditions could have any of the following impacts on us: sale of fewer homes or higher cancellations by our homebuyers; an increase in selling incentives or reduction of prices; and realization of lower gross margins due to lower selling prices or an inability to increase selling prices to offset increased costs of the homes delivered. If we are unable to compete effectively in our markets, then our business could decline disproportionately to that of our competitors. As a result, our sales could decline and our results of operations and cash flows could suffer.

Changes in consumer preferences for our products or our failure to gauge those preferences could lead to reduced sales.

We cannot be certain that historical consumer preferences for factory-built homes in general, and for our products in particular, will remain unchanged. Our ability to remain competitive depends heavily on our ability to provide a continuing and timely introduction of innovative product offerings. We believe that the introduction of new features, designs, and models will be critical to the future success of our operations. Managing frequent product introductions poses inherent risks. Delays in the introduction or market acceptance of new models, designs, or product features could have a material adverse effect on our business. Products may not be accepted for a number of reasons, including changes in consumer preferences or our failure to properly gauge consumer preferences. Further, we cannot be certain that new product introductions will not reduce net sales from existing models and adversely affect our results of operations. Competitors could leverage artificial intelligence to develop new products or methods of enhancing their operations to gain consumer advantages. In addition, our net sales may be adversely affected if our new models and products are not introduced to the market on time or are not successful when introduced. Finally, our competitors’ products may obtain better market acceptance despite our efforts to lead the market.

Increases in tax rates or fees on developers by local government authorities could deter potential customers from buying our products and adversely affect our business or results of operations.

Increases in property tax rates or fees on developers by local governmental authorities, as experienced in response to reduced federal and state funding or to fund local initiatives, such as funding schools or road improvements, or increases in home insurance premiums, can adversely affect the ability of potential customers to obtain financing or their desire to purchase new homes, and in turn can have adverse impacts on our business and results of operations. Any changes to individual tax rules concerning the deductibility of mortgage interest expenses and real estate taxes could deter customers from home ownership.

Natural disasters and severe weather conditions could delay deliveries, increase costs, and decrease demand for new factory-built homes in affected areas.

Our operations are located in many areas that are subject to natural disasters and severe weather. The occurrence of natural disasters or severe weather conditions can delay factory-built home deliveries, increase costs by damaging inventories, reduce the availability of materials, and negatively impact the demand for new factory-built homes in affected areas. Furthermore, if our insurance does not fully cover business interruptions or losses resulting from these events, then our earnings, liquidity, or capital resources could be adversely affected.

12Increased attention and evolving expectations relating to sustainability matters may impact our business, financial results or stock price.

Increased attention continues to be directed to publicly traded companies and ~~evolving~~their ~~expectations~~activities ~~relating~~related to ~~environmental,~~sustainability ~~social~~matters. Advocacy groups have campaigned for action to promote change at public companies related to sustainability matters. These activities include increasing action related to climate change and ~~governance~~the use of energy efficient building products. Different stakeholder groups have divergent views on sustainability matters, which increases the risk that any action or lack thereof with respect to sustainability matters may be perceived negatively and adversely impact our reputation and business. In addition, ~~financial~~organizations ~~results~~that orprovide information to investors on corporate governance and other matters have developed ratings systems for evaluating companies on their approach to sustainability. Unfavorable sustainability ratings may lead to negative investor sentiment which could have a negative impact on our stock price.

Increased attention continues to be directed to publicly traded companies and their activities related to environmental, social and governance (“ESG”) matters. Advocacy groups have campaigned for action to promote change at public companies related to ESG matters. These activities include increasing action related to climate change and the use of energy efficient building products. Different stakeholder groups have divergent views on ESG matters, which increases the risk that any action or lack thereof with respect to ESG matters may be perceived negatively and adversely impact our reputation and business. In addition, organizations that provide information to investors on corporate governance and other matters have developed ratings systems for evaluating companies on their approach to ESG. Unfavorable ESG ratings may lead to negative investor sentiment which could have a negative impact on our stock price.11

Our results of operations may be adversely affected by public health issues, such as an epidemic or pandemic, and resulting governmental actions.

An epidemic, pandemic or other public health issue, or fear of such an event, and the actions taken by governmental authorities to address it, could significantly disrupt or prevent us from operating our business and, along with any associated economic factors, have a material adverse effect on our business. The United States and Canada have experienced, and may experience in the future, outbreaks of contagious diseases that affect public health and have necessitated government intervention. The extent to which public health issues impact our results will depend on future developments, which cannot be predicted. If an epidemic, pandemic or similar public health issue has a significant adverse effect on the U.S. or Canadian economies, our business, results of operations, and cash flows could be materially adversely affected.

Regulatory Risks

Environmental laws and regulations relating to climate change and energy efficiency can have an adverse impact on our business and results of operations.

Federal, state, and local government regulations proposed or enacted in response to climate change could result in raw material and other cost increases as well as impact the availability of raw materials necessary to manufacture our products. Any changes to HUD-code from increased energy regulations could result in requiring more robust energy efficiency specifications and require the use of energy-saving construction material in our products. New building code requirements that impose stricter energy efficiency standards could significantly increase our costs. Compliance with these new standards may also cause an increase in our costs, including investments in testing equipment and the use of human capital resources. As climate change and energy efficiency remains a global focus, energy-related initiatives will impact many companies including our raw material suppliers. The initiatives undertaken by our suppliers could adversely impact our results of operations to the extent our suppliers raise their prices to cover energy and climate related initiatives. Increases in costs may make our products less affordable and as a result, negatively impact demand for those products.

If the factory-built housing industry is not able to secure favorable local zoning ordinances, our sales could decline and our results of operations and cash flows could suffer.

Limitations on the number of sites available for placement of factory-built homes or on the operation of factory-built housing communities could reduce the demand for factory-built homes and, as a result, our sales. Factory-built housing communities and individual home placements are subject to local zoning ordinances and other local regulations relating to utility service and construction of roadways. In the past, some property owners have resisted the adoption of zoning ordinances permitting the use of factory-built homes in residential areas, which we believe has restricted the growth of the industry. Factory-built homes may not receive widespread acceptance and localities may not adopt zoning ordinances permitting the development of factory-built home communities. If the factory-built housing industry is unable to secure favorable local zoning ordinances, then our sales could decline and our results of operations and cash flows could suffer.

We are subject to extensive regulation affecting the production and sale of factory-built housing, which could adversely affect our business, financial condition, and results of operations.

We are subject to a variety of federal, state, and local laws and regulations affecting the production and sale of factory-built housing. Our failure to comply with such laws and regulations could expose us to a wide variety of sanctions, including closing one or more manufacturing facilities. Regulatory matters affecting our operations are under regular review by governmental bodies and we cannot predict what effect, if any, new laws and regulations would have on us or on the factory-built housing industry. Failure to comply with applicable laws or regulations or the passage in the future of new and more stringent laws, could adversely affect our business, financial condition, and results of operations.

The transportation industry is subject to government regulation, and regulatory changes could have a material adverse effect on our results of operations or financial condition.

Our Star Fleet Trucking subsidiary provides transportation services. The transportation industry is subject to legislative or regulatory changes, including potential limits on carbon emissions under climate change legislation and Department of Transportation regulations regarding, among other things, driver breaks, classification of independent drivers, “restart” rules, and the use of electronic logging devices that can affect the economics of the industry by requiring changes in operating practices or influencing the demand for, and cost of providing, transportation services. We may become subject to new or more restrictive regulations relating to fuel emissions or limits on vehicle weight and size. Future laws and regulations may be more stringent and require changes in operating practices, influence the demand for transportation services or increase the cost of providing transportation services, any of which could adversely affect our business and results of operations.

Operational Risks

Our results of operations can be adversely affected by labor shortages, turnover and labor cost inflation.

The homebuilding industry has from time-to-time experienced labor shortages and other labor-related issues. These labor shortages can be more severe during periods of strong demand for housing, during periods following natural disasters or as a result of broader economic disruptions. A number of factors may adversely affect the labor force available to us and our subcontractors in one or more of our markets, including high employment levels, federal unemployment subsidies, changing work preferences of the labor force, and other government regulations, which include laws and regulations related to workers’ health and safety, wage and hour practices and immigration. These factors can also increase the cost of labor. We have historically experienced high turnover rates among our direct labor employees, which can lead to increased spending on training and retention and, as a result, increased costs of production. An overall labor shortage or lack of skilled labor, increased turnover or labor inflation could cause significant increases in costs or delays in construction and delivery of homes, which could have a material adverse effect on our net sales and results of operations.

Increased costs of transportation may adversely affect our operating results and cash flows.

We rely on qualified drivers to deliver homes from our manufacturing facilities to retail centers and customer home sites. A lack of qualified drivers to deliver manufactured homes could result in an increase in our cost of goods sold and operating expenses. Additionally, delays in the shipment of completed homes due to lack of qualified drivers could impact our ability to meet customer demand on a timely basis. Shortages or increased transportation costs from rising fuel prices could also have an adverse impact to our operations.

Customer cancellations could have a negative impact on our revenue and margins.

Our backlog represents home orders from customers that will be produced in future periods. Orders in the backlog may be cancelled by customers at any time without penalty. Orders in the backlog may be impacted by rising interest rates as retailers utilize floor plan financing arrangements to purchase stock inventory. Orders in backlog may also be impacted by inflation since customers obtain financing approval prior to ordering a home. Significant increases in prices may prevent customers from being able to qualify for financing at the time the home is ready to be produced causing the customer to cancel their order in our backlog which would negatively impact our revenue and margins.

Complications with the implementation of our new enterprise-wide information system could adversely impact our business and operations.

We rely on information systems and technology to manage our business and summarize and report our operating results. In fiscal 2022, we began a multi-year replacement of our current information systems with a suite of cloud-based functionality. With the new system, we expect to improve decision-making capabilities through real-time data and analytics, simplify and standardize business processes, reduce manual effort, improve value-added activities, and improve transparency and accountability all while enhancing the customer experience making our company easier to do business with. The system selection and implementation process has required, and will continue to require, a significant investment of personnel and financial resources. We may not be able to successfully implement the new system without experiencing delays, increased costs, interruption to operations, or other difficulties. If we are unable to successfully implement the system as planned, our business, results of operations and financial condition could be negatively impacted. We have capitalized significant costs related to the development of the new system. A write-off of all or part of our capitalized costs could adversely affect our results of operations and financial condition. Additionally, if we do not effectively implement the system as planned or it does not operate as intended, the effectiveness of our internal controls over financial reporting could be adversely affected or our ability to assess those controls adequately could be delayed.

If we are unable to establish or maintain relationships with independent distributors that sell our homes, our sales could decline and our results of operations and cash flows could suffer.

Although we maintain our own factory direct retail business in select markets, we conduct a majority of our business through independent distributors. ~~Over~~Approximately 75% of our shipments of homes in fiscal ~~2025~~2026 were made to independent customers throughout the U.S. and western Canada. We may not be able to establish relationships with new independent customers or maintain good relationships with independent distributors that sell our homes. Even if we establish and maintain relationships with independent distributors, these customers are not obligated to sell our homes exclusively and may choose to sell competitors’ homes instead. The independent customers with whom we have relationships can cancel these relationships on short notice. In addition, these customers may not remain financially solvent, as they are subject to industry, economic, demographic, and seasonal trends similar to those faced by us. If we do not establish and maintain relationships with solvent independent distributors in the markets we serve, sales in those markets, if we cannot offset by sales through an expanded factory-direct retail business, could decline and our results of operations and cash flows could suffer.

When we introduce new products into the marketplace, we may incur expenses that we did not anticipate, which, in turn, can result in reduced earnings.

The introduction of new models, floor plans, and features are critical to our future success, but we may incur unexpected expenses when we make such introductions. For example, we may experience unexpected engineering or design flaws that may cause increased warranty costs. The costs resulting from these types of problems could be substantial and could have a significant adverse effect on our earnings. Estimated warranty costs are accrued at the time of product sale to reflect our best estimate of the amounts necessary to settle existing and future claims on products. An increase in actual warranty claims costs as compared to our estimates could result in increased warranty reserves and expense, which could have adverse impacts on our earnings.

Product liability claims and litigation and warranty claims that arise in the ordinary course of business may be costly, which could adversely affect our results of operations.

As a homebuilder, we are subject to construction defect and home warranty claims arising in the ordinary course of business. These claims are common in the homebuilding industry and can be costly. In addition, the costs of insuring against construction defect and product liability claims are high. There can be no assurance that this coverage will not be restricted and become more costly. If the limits or coverages of our current and former insurance programs prove inadequate, or we are unable to obtain adequate or reasonably priced insurance against these types of claims in the future, or the amounts currently provided for future warranty or insurance claims are inadequate, then we may experience losses that could negatively impact our results of operations.

We record expenses and liabilities based on the estimated costs required to cover our self-insured liability under our insurance policies, and estimated costs of potential claims and claim adjustment expenses that are above our coverage limits or that are not covered by our insurance policies. For instance, during fiscal 2024, we identified an issue with certain construction materials that resulted in water intrusion-related issues. These estimated costs are based on an analysis of our historical claims and industry data and include an estimate of claims incurred but not yet reported. Due to the degree of judgment required and the potential for variability in the underlying assumptions when deriving estimated liabilities, our actual future costs could differ from those estimated, and the difference could be material to our results of operations.

Our products and services may experience quality problems from time to time that can result in decreased sales and gross margin and can harm our reputation.

Our products contain thousands of parts, many of which are supplied by a network of approved vendors. Product defects may occur, including components purchased from material vendors. There is no assurance that all such defects will be detected prior to the distribution of our products. In addition, although we endeavor to compel suppliers to maintain appropriate levels of insurance coverage, there is no assurance that if a defect in a vendor-supplied part were to occur that the vendor would have the financial ability to rectify the defect. Failure to detect defects in our products, including vendor-supplied parts, could result in lost revenue, increased warranty and related costs, and could harm our reputation.

We may not be able to manage our business effectively if we cannot retain current management team members or if we are unable to attract and motivate key personnel.

Our success depends upon the skills, experience, and active participation of our senior management and key employees, many of whom have been with us for a significant number of years. Changes in our senior management team or other key employees may result in operational disruptions and changes to the strategy of our business, and our business might be harmed as a result. Our business could be further disrupted and harmed if we were unable to find appropriate replacements on a timely basis following future departures.

We may not be able to attract or motivate qualified management and operations personnel in the future. Inability to do so would result in constraints that would significantly impede the achievement of our objectives. We may also have difficulty attracting experienced personnel and may be required to expend significant financial resources in our employee recruitment efforts.

Data security breaches, cybersecurity attacks, and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.

In the ordinary course of our business, we collect, use, and store sensitive data, including intellectual property, our proprietary business information and that of our suppliers and business partners, as well as personally identifiable information of our customers and employees. We also have outsourced elements of our information technology structure and, as a result, we are managing independent vendor relationships with third parties who may or could have access to our confidential information. Similarly, our business partners and other third-party providers possess certain of our sensitive data. The secure maintenance of this information is critical to our operations and business strategy. Our ability to conduct our business may be negatively impacted if our or our service providers’ computer resources or connectivity are compromised, degraded, damaged, or if they fail.

Despite our security measures, our information technology and infrastructure may be vulnerable to cybersecurity attacks by hackers or breached due to employee error, malfeasance, or other disruptions, particularly with employees and others on data networks working increasingly from home. We, our partners, vendors, and other third-party providers could be susceptible to third-party attacks on our and their information security systems, which attacks are of ever-increasing levels of sophistication and are made by groups and individuals with a wide range of motives and expertise, including criminal groups. Furthermore, advancements in artificial intelligence could be used by threat actors to attack our systems by using increasingly sophisticated and effective techniques to access our data. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost, or stolen. Any such access, disclosure, or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, disrupt our operations, and damage our reputation, any of which could adversely affect our business. 14

Cyber threats are ongoing, rapidly evolving and becoming increasingly sophisticated. As the breadth and complexity of the technologies we use continue to grow, the risk of security breaches and cyber attacks also increases. Despite our security measures, our information technology and infrastructure may be vulnerable to cybersecurity attacks by hackers or breached due to employee error, malfeasance, or other disruptions, particularly with employees and others on data networks working increasingly from home. We, our partners, vendors, and other third-party providers could be susceptible to third-party attacks on our and their information security systems, which attacks are of ever-increasing levels of sophistication and are made by groups and individuals with a wide range of motives and expertise, including criminal groups. Furthermore, advancements in artificial intelligence could be used by threat actors to attack our systems by using increasingly sophisticated and effective techniques to access our data. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost, or stolen. Any such access, disclosure, or other loss of information could result in legal claims or proceedings, expose us to liability under laws that protect the privacy of personal information, disrupt our operations and divert our management's attention, increase the costs required to prevent, respond to or mitigate an incident and damage our reputation, any of which could adversely affect our business.

Engaging in mergers, acquisitions, and start-up operations involves risks that could adversely affect our business.

As part of our growth strategy, we may choose to engage in discussions and negotiations regarding mergers, acquisitions, start-ups, and other business combinations. The purchase price for possible acquisitions of businesses and assets might be paid from cash, borrowings, or through the issuance of common stock or other securities, or a combination of these methods. Business combinations and start-up operations entail numerous risks, including:

•

difficulties in the integration of acquired operations and products, which can impact the retention of customer accounts;

•

failure to achieve expected synergies, implement appropriate internal controls or integrate information systems;

•

diversion of management's attention from other business concerns;

•

assumption of unknown material liabilities of acquired companies, which could become material or subject us to litigation or regulatory risks;

•

amortization of acquired intangible assets, which could reduce future reported earnings;

•

potential loss of customers or key employees; and

•

not adequately anticipating customer demands in new markets.

We cannot be certain that we will be able to identify, consummate and successfully integrate business combinations, and no assurance can be given with respect to the timing, likelihood or business effect of any possible transaction. For example, we could begin negotiations that we subsequently decide to suspend or terminate for a variety of reasons. Also, business combinations are typically subject to closing conditions, including regulatory approvals and the absence of a material adverse change. Therefore, if and when we enter into a business combination agreement, there can be no guarantee that the transaction will close when expected, or at all. If a material transaction does not close, then our stock price could decline.

Nevertheless, opportunities arise from time to time that we choose to evaluate. Any transactions that we pursue and consummate would involve these risks and uncertainties, as well as others. The risks of a business combination or startup of a greenfield or idled facility could result in the failure of the anticipated benefits of that particular transaction to be realized, which in turn could have adverse effects on our business, financial condition, results of operations and prospects.

Our risk management practices may leave us exposed to unidentified or unanticipated risk.

Our management team is responsible for managing risk, subject to oversight by our Board of Directors. Our risk management methods may not identify all future risk exposures and may not be completely effective in mitigating all key risks. Furthermore, our risk management methods may not properly identify and mitigate the aggregation of risks across the Company or the interdependency of our risk mitigation efforts. In addition, some of our risk management methods may be based on assumptions that will prove to be inaccurate. Failure to manage risk effectively could adversely affect our business, financial condition, and results of operations.

1615

Financial Risks

Further increases in interest rates, more stringent credit standards, tightening of financing terms, or other increases in the effective costs of owning a factory-built home (including those related to regulation or other government actions) have limited and could continue to limit the purchasing power of our potential customers and could continue to adversely affect our business and financial results.

A large portion of the people who buy our homes finance their home purchases through third-party lenders. Increases in interest rates or decreases in the availability of consumer financing have affected and could continue to adversely affect the market for homes. ~~Interest~~In ~~rates were near historical lows for several years, which made purchasing new factory-built homes more affordable. However, in~~ early 2022, the U.S. Federal Open Market Committee began raising the target rate for the federal funds rate in response to rising inflation. ~~The~~While the federal funds rate ~~stabilized~~began to decrease in fiscal ~~2024; however~~2026, it still remains significantly higher than historic lows and the rate could increase in the future if rates of inflation increase. Potential manufactured housing customers have been and may continue to be less willing or able to pay the increased monthly costs that result from higher loan rates. In addition, recent increases in the prices of homes resulting from inflation, combined with higher loan rates, have limited and may continue to limit consumers’ ability to obtain financing to purchase a home. InLenders ~~addition, lenders~~ may also increase the qualifications needed for financing or adjust their terms to address any increased credit risk. These factors could continue to adversely affect the sales or pricing of our factory-built homes. These developments have historically had, and may once again have, an adverse effect on the overall demand for factory-built housing and its competitiveness with other forms of housing and could continue to adversely affect our results of operations and financial condition.

The liquidity provided by the GSEs and the FHA is also critical in insuring or purchasing home mortgages and creating or insuring investment securities that are either sold to investors or held in their portfolios. Any limitations or restrictions on the availability of financing by these agencies could adversely affect interest rates, financing, and our sales of new homes.

Inflation has and could continue to adversely affect our business and financial results.

Inflation adversely affects us by increasing costs of raw materials, labor and transportation. Inflation also adversely affects our customers by decreasing purchasing power and ability to afford a new home. The U.S. economy recently experienced a period of higher inflation, stemming from efforts by the U.S. government to stimulate the economy and other factors. The increased rate of inflation has also ~~lead~~led to higher interest rates, which has had and continue to have a negative impact on the housing industry, as well as increases in our borrowing rates. While we have historically been able to pass along price increases to our customers, in a persistently inflationary environment, we may not be able to raise prices sufficiently in order to maintain our margins.

The availability of wholesale financing for retailers is ~~limited~~constrained due to a limited number of floor plan lenders and reduced lending limits.

Factory-built housing retailers generally finance their inventory purchases with wholesale floor plan financing provided by lending institutions. The availability of wholesale financing is significantly affected by the number of floor plan lenders and their lending limits. Limited availability of floor plan lending negatively affects the inventory levels of our independent retailers, the number of retail sales center locations and related wholesale demand, and adversely affects the availability of and access to capital on an ongoing basis. As a result, if the availability of wholesale financing is reduced, we could experience sales declines or a higher level of customer defaults and our operating results and cash flows could suffer.

We have contingent repurchase obligations related to wholesale financing provided to industry retailers.

As is customary in the factory-built housing industry, a significant portion of our manufacturing sales to independent retailers are financed under floor plan agreements with financing companies. In connection with those floor plan financing programs, we generally have separate agreements with the financing companies that require us to repurchase homes upon default by the retailer and repossession of the homes by the financing companies. These repurchase agreements are applicable for various periods of time, generally up to 24 months after the sale of the home to the retailer. However, certain homes are subject to repurchase until the home is sold by the retailer. We may be required to honor contingent repurchase obligations in the future and may incur additional expense and reduced cash flows because of these repurchase agreements.

Industry conditions and future operating results could limit our sources of capital. If we are unable to locate suitable sources of capital when needed, we may be unable to maintain or expand our business.

We depend on our cash balances, cash flows from operations, and our revolving credit facility (the “Credit Facility”) to finance our operating requirements, capital expenditures, and other needs. If our cash balances, cash flows from operations, and availability under the Credit Facility are insufficient to finance our operations and alternative capital is not available, then we may not be able to expand our business and make acquisitions, or we may need to curtail or limit our existing operations.

1716

Changes in foreign exchange rates could adversely affect the value of our investments in Canada and cause foreign exchange losses.

We have substantial investments in businesses in Canada. Unfavorable changes in foreign exchange rates could adversely affect the value of our investments in these businesses.

An impairment of all or part of our goodwill could adversely affect our operating results and net worth.

As of March 2928, ~~2025~~2026, 17.01% of our total assets consisted of goodwill, all of which is allocated to reporting units included in the U.S. Factory-built Housing segment. In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350, Intangibles—Goodwill and Other ("ASC 350"), we test goodwill at least annually for impairment or more often than annually if an event or circumstance indicates that an impairment is more likely than not to have occurred. If goodwill has become impaired, we charge the impairment as an expense in the period in which the impairment occurs. See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 to the Consolidated Financial Statements. A write-off of all or part of our goodwill could adversely affect our results of operations and financial condition.

AnWe ~~impairment~~previously ofhad ~~all~~a ormaterial ~~part~~weakness ofin our ~~investment~~internal control over financial reporting and if we have additional material weaknesses in ~~ECN~~the ~~Capital~~future ~~Corporation~~it could ~~adversely~~ affect our ~~operating~~ability ~~results~~to report financial information timely and ~~net~~accurately, ~~worth~~negatively affect investor confidence, and cause reputational harm.

AsA ofmaterial ~~March~~weakness ~~29,~~is ~~2025~~a deficiency, ~~our~~or ~~investment~~a combination of deficiencies, in ~~ECN~~internal ~~Capital~~control ~~Corporation~~over ~~("ECN")~~financial ~~was~~reporting, ~~$134.7~~such ~~million.~~that Wethere ~~assess~~is ~~our~~a ~~investment~~reasonable inpossibility ~~ECN~~that ~~for~~a ~~impairment~~material ~~when~~misstatement ~~events~~of the Company's annual or ~~circumstance~~interim ~~indicate~~financial ~~that~~statements will not be prevented or detected on a ~~decline~~timely inbasis. ~~value~~As ~~below~~disclosed ~~the~~in ~~carrying~~Part ~~amount~~II, ofItem ~~the~~9A ~~investment~~"Controls isand ~~other~~Procedures," ~~than~~management ~~temporary.~~identified Ifa ~~our~~material ~~investment~~weakness in ~~ECN~~its ~~has~~internal ~~become~~control ~~impaired~~over financial reporting as of March 29, we2025 ~~would~~due ~~charge~~to the ~~impairment~~lack asof aneffectiveness ~~expense~~of internal controls in the ~~period~~Regional Homes retail operations acquired in ~~which~~October 2023. Although the ~~impairment~~material ~~occurs.~~weakness ~~See~~was ~~Item~~remediated 7,in ~~"Management's~~fiscal ~~Discussion~~2026, ~~and~~there ~~Analysis~~can ofbe ~~Financial~~no ~~Condition~~assurances ~~and~~that ~~Results~~additional ofmaterial ~~Operations"~~weaknesses ~~and~~will ~~Note~~not 1occur toin the ~~Consolidated~~future. If ~~Financial~~we ~~Statements.~~are Aunable ~~write-off~~to ofremediate ~~all~~a material weakness, or ~~part~~are ofotherwise ~~our~~unable ~~investment~~to inmaintain ~~ECN~~effective internal control over financial reporting or disclosure controls and procedures, it could adversely affect our ability to accurately report our financial results in a timely manner, resulting in material misstatements in our financial statements or causing us to fail to meet our reporting obligations, which could subject us to litigation or investigations requiring management resources and payment of ~~operations~~legal and other expenses, negatively affect investor confidence in our financial ~~condition.~~statements and cause reputational harm.

We identified a material weakness in our internal control over financial reporting which, if not remediated appropriately or timely, could affect our ability to report financial information timely and accurately, negatively affect investor confidence, and cause reputational harm.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. As disclosed in Part II, Item 9A "Controls and Procedures," management determined that there is a material weakness in its internal control over financial reporting due to the lack of effectiveness of internal controls in the Regional Homes retail operations acquired in October 2023. As a result, the Company’s disclosure controls and procedures and internal control over financial reporting are not considered effective as of March 29, 2025. While the Company is actively engaged in the planning for, and implementation of, remediation efforts to address the material weakness, there can be no assurance that the efforts will fully remediate the material weakness in a timely manner. If we are unable to remediate the material weakness, or are otherwise unable to maintain effective internal control over financial reporting or disclosure controls and procedures, it could adversely affect our ability to accurately report our financial results in a timely manner, resulting in material misstatements in our financial statements or causing us to fail to meet our reporting obligations, which could subject us to litigation or investigations requiring management resources and payment of legal and other expenses, negatively affect investor confidence in our financial statements and cause reputational harm.

Our failure to maintain effective internal control over financial reporting could harm our business and financial results.

Our management is responsible for maintaining effective internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting for external purposes in accordance with accounting principles generally accepted in the United States. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that we would prevent or detect a misstatement of our financial statements or fraud.

We anticipate paying no cash dividends for the foreseeable future.

We currently intend to retain our future earnings, if any, for the foreseeable future, to fund the development and growth of our business. As a result, capital appreciation in the price of our common stock, if any, will be investors’ only source of gain on an investment in our common stock. Any future determination to pay dividends to shareholders will be at the sole discretion of our Board of Directors and will depend upon many factors, including general economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions, the implications of the payment of dividends by us to our shareholders or by our subsidiaries to us, and any other factors that the Board of Directors may deem relevant.

1817

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 1C. CYBERSECURITY

Our Board of Directors views the identification and effective management of cybersecurity threats as a critical component of overall risk management and oversight responsibility and has delegated responsibility for oversight of this risk to the Audit Committee of the Board of Directors (the "Audit Committee"). The Audit Committee oversees the management of risks arising from cybersecurity threats and regularly reports to the Board of Directors regarding cybersecurity. The Audit Committee oversees our enterprise risk assessment process, and cybersecurity represents an important component of our overall approach to risk assessment. Our cybersecurity policies, standards, processes and practices are based on recognized frameworks established by the National Institute of Standards and Technology and other applicable industry standards. In general, we seek to address cybersecurity risks through a comprehensive, cross-functional approach that is focused on identifying, assessing, preventing and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur.

Risk Management and Strategy

Our cybersecurity program is focused on the following key areas:

Governance: As discussed in more detail under the heading “Governance” below, the Board of Directors’ oversight of cybersecurity risk management is supported by the Audit Committee, our Chief Technology Officer, and other members of management.

Technical Safeguards: We deploy technical safeguards that are designed to protect our information systems from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality and access controls, which are evaluated and improved through vulnerability assessments and cybersecurity threat intelligence.

Incident Response Planning: We have established and maintain an incident response plan that outlines our response in the event of a cybersecurity incident.

Third-Party Assessments: We periodically assess and test our policies, standards, processes and practices that are designed to address cybersecurity threats and incidents. These efforts include a wide range of activities, including audits, assessments, threat modeling, vulnerability testing and other exercises focused on evaluating the effectiveness of our cybersecurity measures and planning. In addition, we regularly engage third parties to perform assessments on our cybersecurity measures. The results of such assessments, audits and reviews are reported to the Audit Committee and, if warranted, the Board of Directors, and we adjust our cybersecurity processes and practices as necessary based on the information provided by these assessments, audits and reviews.

Third-Party Risk Management: We review and evaluate material cybersecurity risks related to the use of third parties, including vendors, service providers and other external users of our systems.

Education and Awareness: We provide regular training regarding cybersecurity threats as a means to equip our employees with effective tools to address cybersecurity threats, and to communicate our evolving information security policies, standards, processes and practices.

Governance

The Audit Committee receives regular presentations and reports from our Chief Technology Officer on cybersecurity risks, which address a wide range of topics including recent developments, evolving standards, vulnerability assessments, third-party and independent reviews, the threat environment, technological trends and information security considerations. The Audit Committee then provides regular reports to the Board of Directors. The Audit Committee also receives timely updates on material and potentially material cybersecurity matters from management as part of the risk assessment process. The Audit Committee and the Board of Directors also receive timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been resolved.

The Chief Technology Officer, working together with a team of cybersecurity professionals and third-party consultants, monitors the prevention, detection, mitigation and remediation of cybersecurity threats and incidents, and reports such threats and incidents to the senior leadership team when appropriate.

Cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected and are not reasonably likely to materially affect our business strategy, results of operations or financial condition. See "Risks Related to Information Technology" in Item 1A. Risk Factors.

1918

ITEM 2. PROPERTIES

The following table sets forth certain information with respect to our operating facilities as of March 2928, ~~2025~~2026:

Location Owned/Leased United States Double Springs, Alabama Owned Hamilton, Alabama Owned Lynn, Alabama Owned Chandler, Arizona Leased * Corona, California Leased Lindsay, California Owned San Jacinto, California Owned Woodland, California Owned Bartow, Florida Leased * Lake City, Florida (two facilities) Leased * Ocala, Florida Owned Millen, Georgia Leased** Waycross, Georgia Owned Weiser, Idaho Owned Decatur, Indiana Owned Topeka, Indiana (three facilities) Owned Arkansas City, Kansas Owned Benton, Kentucky Leased Leesville, Louisiana Leased Worthington, Minnesota Owned York, Nebraska Owned Sangerfield, New York Owned Laurinburg, North Carolina Owned Lillington, North Carolina Owned Pembroke, North Carolina Owned Sugar Creek, Ohio Owned McMinnville, Oregon Owned Claysburg, Pennsylvania Owned Ephrata, Pennsylvania Owned Leola, Pennsylvania (two facilities) Owned Liverpool, Pennsylvania Owned Strattanville, Pennsylvania Owned Dresden, Tennessee Leased Athens, Texas Owned Burleson, Texas (two facilities) Owned Mansfield, Texas Owned Navasota, Texas Owned Lancaster, Wisconsin Owned Canada Lethbridge, Alberta Leased * Medicine Hat, Alberta Owned ~~Kelowna, British Columbia Leased~~ Penticton, British Columbia Owned Estevan, Saskatchewan Owned * -- land only leased; facility owned ** -- the land and operating facility in Millen, Georgia are maintained under a lease, however, we retain an option to purchase throughout the lease period

2019

Our corporate headquarters is in Troy, Michigan and we have an administrative office in Elkhart, Indiana. We also have 7284 retail sales centers located across the U.S. and eight terminals for our logistics operations across four states in the U.S. The corporate offices, some of our retail sales centers, and logistics terminals are leased properties. The contractual lease for our Troy, Michigan office expires in December 2027 and the contractual lease for our Elkhart, Indiana office expires in September 2028. Two of the manufacturing facilities are encumbered by industrial revenue bonds and two are encumbered by notes payable. In the opinion of management, our properties have been well maintained, are in sound operating condition, and contain all equipment and facilities necessary to operate at present levels.

We also own or lease six idle manufacturing facilities which could be utilized for additional production capacity. Those facilities would likely require capital investments in order to secure and equip them for operations.

ITEM 3. LEGAL PROCEEDINGS

We are party to certain legal proceedings that arise in the ordinary course and are incidental to our business. Certain of the claims pending against us in these proceedings allege, among other things, breach of express and implied warranties, and in various governmental agency proceedings arising from occupational safety and health, wage and hour, and similar employment and workplace regulations. Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened litigation or claims will have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations. However, future events or circumstances, currently unknown to us, will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on our consolidated financial position, liquidity, or results of operations in any future reporting periods.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

2120

PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

The Company's common stock is traded on the New York Stock Exchange ("NYSE") under the symbol SKY.

Holders

As of May 2019, ~~2025~~2026, the Company had approximately ~~235~~212 holders of record of our common stock. The actual number of shareholders is greater than this number of record holders and includes shareholders who are beneficial owners but whose shares are held in street name by brokers and other nominees. This number of holders of record also does not include shareholders whose shares may be held in trust by other entities.

Dividend Policy

The Company does not currently pay dividends on our common stock and intends to retain available funds and any future earnings for general corporate purposes. However, in the future, subject to the factors described below and our future liquidity and capitalization, the Company may change this policy and choose to pay dividends. Any future determination to pay dividends to shareholders will be at the sole discretion of the Company’s Board of Directors and will depend upon many factors, including general economic conditions, our financial position and results of operations, available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions, the implications of the payment of dividends by the Company to its shareholders or by the Company’s subsidiaries and any other factors that the Board of Directors may deem relevant.

Unregistered Sales of Equity Securities

There were no unregistered sales of equity securities during the period covered by this Annual Report.

Issuer Purchases of Equity Securities

On May 16, 2024, the Company's Board of Directors ~~approved~~initiated a share repurchase program. ~~for~~The upCompany tohas ~~$100.0~~been ~~million~~repurchasing ofshares since the ~~Company’~~program's ~~common~~initiation ~~stock,~~and ~~which~~the ~~was~~Board ~~subsequently~~of ~~amended~~Directors has continued to ~~allow~~refresh ~~for~~the ~~purchases~~amount of upauthorized toshare repurchases. At March 28, 2026, there was $~~160~~100.0 million remaining under the current share repurchase authorization. OnIn May 15, ~~2025~~2026, the ~~Company's~~ Board of Directors approved an increase to ~~this~~the share repurchase program of $2050.0 million to refresh the available amount to ~~repurchase the Company's common stock back to~~ $~~100~~150.0 million. Under this share repurchase program, the number of shares ultimately purchased, and the timing of purchases are at the discretion of management and subject to compliance with applicable laws and regulations. The share repurchase program does not expire. The Company intends to fund the program from existing cash. Share repurchases are made in the open market or in privately negotiated transactions in compliance with applicable state and federal securities laws and other legal requirements. The level of repurchase activity is subject to market conditions and other investment opportunities. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time. Share repurchase activity during the three months ended March 2928, ~~2025~~2026 was as follows:

Fiscal Periods	Total Number of Shares Purchased		Average Price PaidPer Share		Total Number ofShares Purchased as Part of the Publicly Announced Programs		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs(in thousands)
2/2/2025 - 3/1/2025		75,000	$	102.33		75,000
2/1/2026 - 2/28/26		534,803	$	93.47		534,803
3/2/2025 - 3/29/2025		126,667	$	97.27		126,667
		534,803				534,803	$	100,000
		201,667				201,667	$	80,000

Securities Authorized for Issuance Under Equity Compensation Plans

Item 12, “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters,” of this Annual Report contains certain information relating to the Company’s equity compensation plans.

Stock Performance

The following graph shows the cumulative total stockholder return on our common stock over the period spanning ~~March~~April 283, ~~2020~~2021 to March 2928, ~~2025~~2026, as compared with that of the Russell 3000 Index and a selected peer group of comparable, publicly traded companies in the housing segment, based on an initial investment of $100 on ~~March~~April 283, ~~2020~~2021.

2221

Total stockholder return is measured by dividing share price change plus dividends, if any, for each period by the share price at the beginning of the respective period and assumes reinvestment of dividends. This stock performance graph shall not be deemed “filed” with the SEC or subject to Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any of our filings under the Securities Act of 1933, as amended.

3/28/2020

4/3/2021

4/2/2022

4/1/2023

3/30/2024

3/29/2025

4/3/2021

4/2/2022

4/1/2023

3/30/2024

3/29/2025

3/28/2026

Champion Homes, Inc.

100.00

~~288~~117.6510

~~350~~158.0065

~~479~~179.7827

~~542~~198.1640

~~604~~152.3497

Peer Group*

100.00

~~258~~82.0189

~~213~~105.8754

~~272~~157.3071

~~406~~128.9187

~~332~~125.4813

*The peer group consists of Beazer Homes USA, Cavco Industries, Century Communities, LGI Homes, M/I Homes, Meritage Homes, Quanex Building Products Corp, and Tri Pointe Group.

ITEM 6. RESERVED

2322

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following should be read in conjunction with Champion Homes’s ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~Statements and the related notes that appear elsewhere in this Annual Report.

Certain statements set forth below under this caption constitute forward-looking statements. See Part I, “Cautionary Statement About Forward-Looking Statements,” of this Annual Report on Form 10-K for additional factors relating to such statements, and see Item 1A, “Risk Factors,” of this Annual Report for a discussion of certain risks applicable to our business, financial condition, results of operations and cash flows. See also Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Form 10-K for the year ended March 3029, ~~2024~~2025, which provides additional information on comparisons of fiscal years ~~2024~~2025 and ~~2023~~2024.

Overview

The Company is a leading producer of factory-built housing in the U.S. and Canada. The Company serves as a complete solutions provider across complementary and vertically integrated businesses including manufactured construction, company-owned retail locations, construction services, and transportation logistics. The Company is the largest independent publicly traded factory-built solutions provider in North America based on revenue, and markets its homes under several nationally recognized brand names including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, J. Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S. and Moduline and SRI Homes in western Canada. The Company operates 4342 manufacturing facilities throughout the U.S. and 5four 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 7284 sales centers that sell manufactured homes to consumers across the U.S. while the construction services business installs and sets up factory-built homes. The Company’s transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.

Acquisitions and Expansions

The Company is focused on operational improvements to increase capacity utilization and profitability at its existing manufacturing facilities as well as measured expansion of its manufacturing and retail footprint through facility and equipment investments and acquisitions. Those investments will help improve the Company's ability to satisfy demand for affordable housing. ~~During fiscal 2023, robust demand for housing began to slow as inflation and higher interest rates made housing less affordable.~~ The current economic environment drives an even greater need for attainable housing solutions. As a result, the Company continues to focus on growing in strong housing markets across the U.S. and Canada, as well as expanding products and services to provide more holistic and affordable solutions to homebuyers.

In ~~October~~May ~~2023~~2025, the Company acquired ~~Regional~~Iseman Homes ~~("Regional"),~~ which, ~~at the time of the acquisition,~~ operated ~~three~~10 ~~manufacturing facilities in Alabama and 43~~ retail sales centers across the ~~Southeast~~North Central U.S. ~~Regional's~~This ~~strong~~acquisition ~~presence~~enhances inthe ~~large~~Company's ~~HUD~~ability ~~markets~~to instrengthen ~~the~~distribution ~~Southeast~~from ~~U.S.~~its ~~expanded~~nearby ~~our~~manufacturing ~~captive~~facilities, ~~retail~~furthering ~~and~~the ~~manufacturing~~Company’s ~~distribution~~commitment into ~~the~~integrated ~~region~~growth. In ~~July~~October ~~2022~~2023, the Company acquired 12Regional ~~Factory~~Homes, ~~Expo~~which ~~retail~~operated ~~sales~~three ~~centers~~manufacturing ~~from~~facilities ~~Alta~~in ~~Cima~~Alabama ~~Corporation,~~and ~~which~~44 ~~expanded the internal~~ retail ~~network~~sales centers across ~~a broader portion of~~ the Southeast U.S. InRegional ~~May~~Homes' ~~2022,~~strong ~~the~~presence ~~Company~~in ~~acquired~~large ~~Manis~~HUD ~~Custom~~markets ~~Builders,~~expanded ~~Inc.~~our ~~("Manis")~~captive inretail ~~order~~and ~~to expand its~~ manufacturing ~~footprint~~distribution ~~and further streamline its product offering~~ in ~~the~~that ~~Carolinas~~region.

In addition to those acquisitions, the Company is also focused on enhancing its U.S. manufacturing production capacity, ~~through~~as ~~various~~well ~~plant~~as ~~start-ups~~redeployment inof capital and resources through strategic ~~locations~~actions at specific plants. AsDuring athe ~~result~~first half of fiscal 2026, the Company ~~began~~idled production inat ~~previously~~the ~~idled~~Bartow, orFlorida ~~acquired~~manufacturing ~~facilities~~plant inand ~~Decatur,~~ceased ~~Indiana~~operations ~~and~~at ~~Bartow~~the Kelowna, ~~Florida~~British inColumbia ~~fiscal~~manufacturing ~~2024~~plant. ~~and~~The aCompany ~~facility~~believes inthose ~~Pembroke~~actions will ultimately lead to greater operating efficiency and profitability. In addition, ~~North~~the ~~Carolina~~Company insold a previously idled manufacturing facility during the ~~fourth~~second quarter of fiscal ~~2023~~2026. The Company ~~owns~~continues to own six idle manufacturing facilities that could be used for further manufacturing capacity expansion in future periods.

During fiscal 2024, the Company made an equity investment in ECN Capital Corporation ("ECN"). The investment, in part, facilitated the creation of a captive finance company in partnership with Triad Financing Services, Inc. ("Triad"), a subsidiary of ECN. The captive finance company, Champion Financing, through Triad, provides factory-built home floor plan and consumer loans to manufactured home retailers and homebuyers. The Company believes this offering will provide customers needed financing solutions and improve the Company's market share. On November 13, 2025, ECN entered into a definitive arrangement to be acquired by a private investor group for CAD $3.10 per share, plus any accrued but unpaid dividends. The transaction closed on April 24, 2026, which resulted in the liquidation of the Company's investment in ECN common and preferred shares in the first quarter of fiscal 2027. The liquidation of the Company's investment in ECN common and preferred shares will not impact the future operations of Champion Financing.

The Company's acquisitions and investments are part of a strategy to grow and diversify revenue with a focus on increasing the Company’s homebuilding presence in the U.S. as well as improving the results of operations through streamlining production of similar product categories. These acquisitions and investments are included in the Company's consolidated results for periods subsequent to their respective acquisition dates.

Industry and Company Outlook

The need for newly built affordable, single-family housing has continued to drive demand for new homes in the U.S. and Canadian markets. In recent years, manufactured home construction experienced revenue growth due to a number of favorable demographic trends and demand drivers in the United States, including underlying growth trends in key homebuyer groups, such as the population over 55 years of age, the population of first-time home buyers, and the population of households earning less than $60,000 per year. We have also seen a number of market trends pointing to increased sales of ADUs and rent-to-own single-family options.

~~Because~~The ~~of the need for affordable housing, the~~ Company's ~~saw~~manufacturing anbacklog ~~increase~~decreased into ~~customer orders during fiscal 2025~~$316.0 Asmillion aas ~~result~~ of ~~the~~March ~~increased orders~~28, ~~the~~2026 ~~Company's~~compared ~~backlog~~to at$343.4 ~~the~~million ~~end~~as of ~~fiscal~~March ~~2025~~29, ~~was $343~~2025.4 ~~million~~The ~~compared~~decrease toin ~~$315.8~~backlog ~~million~~is ata ~~the~~function ~~end~~ of ~~fiscal~~production ~~2024~~rates ~~and~~exceeding ~~$308.1~~order ~~million~~rates atduring ~~the~~fiscal ~~end~~2026 ofcompared to fiscal ~~2023~~2025.

For fiscal ~~2025~~2026, approximately 8887% of the Company’s U.S. manufacturing sales were generated from the manufacture of homes that comply with the Federal HUD code construction standard in the U.S. According to data reported by MHI, HUD-code industry home shipments were ~~105~~100,~~206~~380, 92105,~~288~~206, and ~~104~~92,~~374~~288 units during fiscal ~~2025~~2026, ~~2024~~2025, and ~~2023~~2024, respectively. Based on industry data, the Company’s U.S. wholesale market share of HUD code homes sold was 22.05%, 1922.90%, and 2019.49% in fiscal ~~2025~~2026, ~~2024~~2025, and ~~2023~~2024, respectively. Annual industry shipments have generally increased each year since calendar year 2009 when only 50,000 HUD-coded manufactured homes were shipped, the lowest level since the industry began recording statistics in 1959. While shipments of HUD-coded manufactured homes have improved modestly in recent years, current manufactured housing shipments are still at lower levels than the long-term historical average of over 200,000 units per year. Manufactured home sales represent approximately ~~9.5~~10% of all U.S. single family home starts.

2524

RESULTS OF OPERATIONS FOR FISCAL ~~2025~~2026 VS. ~~2024~~2025

	Year Ended
(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~2025
Results of Operations Data:
Net sales	$	2,~~483~~663,~~448~~639		$	2,~~024~~483,~~823~~448
Cost of sales		1,~~819~~959,~~425~~320			1,~~539~~819,~~029~~425
Gross profit		~~664~~704,~~023~~319			~~485~~664,~~794~~023
Selling, general, and administrative expenses		~~426~~452,~~991~~554			~~310~~426,~~589~~991
Operating income		~~237~~251,~~032~~765			~~175~~237,~~205~~032
Interest (income), net		(16,~~974~~444	)		(2816,~~254~~974	)
Other (income) expense, net		(3,362	)		2,604
Other income		(2,362	)		(3,362	)
Income from operations before income taxes		~~257~~270,~~368~~571			~~200~~257,~~855~~368
Income tax expense		5356,~~724~~757			4753,~~136~~724
Net income before equity in net loss of affiliate		203,644			153,719
Net income before equity in net (income) loss of affiliates		213,814			203,644
Equity in net loss of affiliate		2,004			7,023
Equity in net (income) loss of affiliates		(382	)		2,004
Net income	$	~~201~~214,~~640~~196		$	~~146~~201,~~696~~640
Net income attributable to non-controlling interest		37,~~227~~298			—3,227
Net income attributable to Champion Homes, Inc.	$	~~198~~206,~~413~~898		$	~~146~~198,~~696~~413
Reconciliation of Adjusted EBITDA:
Net income attributable to Champion Homes, Inc.	$	~~198~~206,~~413~~898		$	~~146~~198,~~696~~413
Income tax expense		5356,~~724~~757			4753,~~136~~724
Interest (income), net		(16,~~974~~444	)		(2816,~~254~~974	)
Depreciation and amortization		4147,~~910~~789			3441,910
Equity in net loss of ECN		363			7,023
Equity in net (income) loss of ECN		(1,192	)		363
Change in fair value of contingent consideration		84,~~620~~496			—8,620
Product liability - water intrusion		—			34,500
Plant closure costs		5,832			—
Transaction costs		—			3,253
Gain on sale of idle facility		(3,650	)		—
Other		(1,000	)		—
Product liability - water intrusion, net		5,030			—
Adjusted EBITDA	$	285,056		$	245,264
Transaction costs		1,794			—
Other		919			(1,000	)
Adjusted EBITDA	$	308,229		$	285,056
As a percent of net sales:
Gross profit		26.74	%		2426.07	%
Selling, general and administrative expenses		17.20	%		1517.32	%
Operating income		9.5	%		89.75	%
Net income attributable to Champion Homes, Inc.		87.08	%		78.20	%
Adjusted EBITDA		11.56	%		1211.15	%

FISCAL PERIODS

The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest March 31. Fiscal ~~2025~~2026 and ~~2024~~2025 were each 52-week periods.

2625

NET SALES

The following table summarizes net sales for fiscal ~~2025~~2026 and ~~2024~~2025:

	Year Ended
(Dollars in thousands)	March 2928,~~2025~~2026		March 3029,~~2024~~2025		$Change			%Change
Net sales	$	2,~~483~~663,~~448~~639	$	2,~~024~~483,~~823~~448	$	~~458~~180,~~625~~191			~~22.~~7.3	%
U.S. manufacturing and retail net sales	$	2,~~357~~515,~~916~~831	$	12,~~885~~357,~~507~~916	$	~~472~~157,~~409~~915			256.17	%
U.S. homes sold		25,~~273~~718		2025,~~954~~273		~~4,319~~445			201.68	%
U.S. manufacturing and retail average home selling price	$	9397.38	$	9093.03	$	34.35			34.78	%
Canadian manufacturing net sales	$	94110,~~172~~986	$	~~109~~94,~~089~~172	$	~~(14~~16,~~917~~814	)		~~(13~~17.79	%)
Canadian homes sold		~~785~~904		~~891~~785		~~(106~~119	)		~~(11~~15.92	%)
Canadian manufacturing average home selling price	$	~~120~~122.08	$	~~122~~120.40	$	(2.48	)		(2.03	%)
Corporate/Other net sales	$	3136,~~360~~822	$	3031,~~227~~360	$	15,~~133~~462			317.74	%
U.S. manufacturing facilities in operation at year end		4342		43		—(1	)		—(2.3	%)
U.S. retail sales centers in operation at year end		7284		7472		(212	)		(216.7	%)
Canadian manufacturing facilities in operation at year end		54		5		—(1	)		—(20.0	%)

Net sales for fiscal ~~2025~~2026 were $2.57 billion, an increase of $~~458~~180.62 million, or ~~22.~~7.3%, over fiscal ~~2024~~2025. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

Fiscal ~~2025~~2026 net sales for the Company’s U.S. manufacturing and retail operations increased by $~~472~~157.49 million, or 256.17%, from fiscal ~~2024~~2025. The increase was ~~primarily~~ due to ~~$593.1~~an ~~million~~increase of ~~net sales in fiscal 2025 from the operations acquired in the fiscal 2024 acquisition of Regional Homes, compared to $227~~1.8% ~~million of sales from those operations~~ in the ~~prior-year period. The~~ number of new homes sold ~~during~~and ~~the~~an ~~fiscal~~increase ~~year~~of ~~increased 20~~4.68% ~~and~~in the ~~total~~ average ~~home~~ selling price ~~increased~~per 3new home.~~7%.~~ The increase in the number of homes sold was primarily due to ~~higher~~the ~~customer~~inclusion ~~demand~~of ~~and~~Iseman ~~production~~Homes ~~volumes~~since ~~during~~ the ~~year,~~acquisition ~~and~~in ~~the~~May ~~inclusion~~2025 ofand ~~Regional~~higher ~~Homes~~wholesale ~~for~~unit ~~the~~sales ~~entirety~~sold ofto ~~fiscal~~independent ~~2025~~retail channels. The increase in average selling price was ~~due~~driven ~~primarily~~by toa ~~the~~shift ~~increase~~ in ~~the~~product ~~number of units sold through our company-owned retail sales centers, also in part a result of the addition of Regional Homes. The~~ mix ~~of wholesale unit sales~~ to ~~independent~~more ~~customers~~multi-wide ~~versus~~units ~~homes~~and ~~sold~~increased ~~through~~pricing at our company-owned retail sales centers ~~impacts average selling price~~. ~~Wholesale average selling price per new home decreased in fiscal 2025 due to changes in product mix, including customers choosing homes with fewer or lower cost options.~~

Canadian Factory-built Housing:

The Canadian Factory-built Housing segment net sales ~~decreased~~increased by $1416.98 million, or 1317.79% in fiscal ~~2025~~2026 compared to the prior year, primarily due to aan 11increase of 15.92% ~~decrease~~ in homes sold. and an increase in average selling price. The ~~decrease~~increase in homes sold is due to ~~slowing~~higher demand in ~~the~~certain ~~Canadian housing market~~markets. Net sales for the Canadian segment were also ~~unfavorably~~favorably impacted by approximately $30.16 million as the Canadian dollar weakened relative to the U.S. dollar during fiscal ~~2025~~2026 as compared to the prior year.

Corporate/Other:

Net sales for Corporate/Other includes the Company’s transportation business, financing activities and the elimination of intersegment sales. During fiscal ~~2025~~2026, net sales for the segment increased by $15.15 million, or 317.74%, compared to fiscal ~~2024.~~2025, ~~The decrease was~~ primarily ~~attributable~~due to aincreased ~~decrease~~operating activities in ~~recreational~~Champion ~~vehicle shipments by our transportation operations~~Financing, partially offset ~~in part~~ by ~~net~~a ~~sales~~decrease ~~from the initiation of the Champion Financing operations~~ in ~~fiscal~~recreational ~~2025~~vehicle shipments.

GROSS PROFIT

The following table summarizes gross profit for fiscal ~~2025~~2026 and ~~2024~~2025:

	Year Ended
(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~2025			$Change			%Change
Gross profit:
U.S. Factory-built Housing	$	~~617~~641,~~314~~636		$	~~440~~617,~~162~~314		$	~~177~~24,~~152~~322			403.29	%
Canadian Factory-built Housing		2332,~~823~~079			3023,~~479~~823			(68,~~656~~256	)		~~(21~~34.87	%)
Corporate/Other		2230,~~886~~604			1522,~~153~~886			7,~~733~~718			5133.07	%
Total gross profit	$	~~664~~704,~~023~~319		$	~~485~~664,~~794~~023		$	~~178~~40,~~229~~296			366.71	%
Gross profit as a percent of net sales		26.74	%		2426.07	%

Gross profit as a percent of sales during fiscal ~~2025~~2026 was 26.74% compared to 2426.07% during fiscal ~~2024~~2025. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

Gross profit for the U.S. Factory-built Housing segment increased by $~~177~~24.23 million, or 403.29%, during fiscal ~~2025~~2026 compared to the prior year. As a percent of net sales, gross profit was 2625.25% for fiscal ~~2025~~2026 compared to 2326.32% in the prior fiscal year. The increase in gross profit was primarily driven by higher ~~unit~~revenue ~~volume~~as ~~due~~discussed ~~to higher customer demand and the addition of Regional Homes for the entirety of fiscal 2025~~above. The ~~increase~~decrease in gross profit as a percent of segment net sales iswas driven, ~~in part,~~ by ahigher ~~greater~~material ~~percentage of homes sold through our company-owned retail sales centers~~ and ~~lower~~labor ~~manufacturing input~~ costs. ~~The increase in gross profit~~ and ~~gross profit percent in fiscal 2025 is also positively impacted by~~ the $348.54 million charge in the fourth quarter of fiscal ~~2024~~2026 ~~for~~to adjust our estimated costs to remediate water intrusion in certain homes built in one of our manufacturing facilities, partially offset by $3.5 million of reimbursements received from ~~fiscal~~the ~~2016~~material ~~through~~distributor ~~fiscal~~for ~~2021~~the Company's remediation costs incurred.

Canadian Factory-built Housing:

Gross profit for the Canadian Factory-built Housing segment ~~decreased~~increased by $68.73 million, or 2134.87%, during fiscal ~~2025~~2026 compared to the prior year. The ~~decrease~~increase in gross profit was due to ~~lower~~higher sales volumes ~~caused by declining consumer demand~~. Gross profit ~~decreased~~increased to 2528.39% as a percent of segment net sales from 2725.93% in the prior year due to ~~decreased~~increased leverage of fixed manufacturing costs ~~and production inefficiency caused by lower production rates~~.

Corporate/Other:

Gross profit for the Corporate/Other segment increased by $7.7 million, or 5133.07%, during fiscal ~~2025~~2026 compared to the same period in the prior year. Gross profit increased as a result of ~~the~~increased ~~inclusion~~operating activity of Champion Financing.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

Selling, general, and administrative (“SG&A”) expenses include foreign currency transaction gains and losses, equity compensation, and intangible amortization expense. The following table summarizes SG&A expenses for fiscal ~~2025~~2026 and ~~2024~~2025:

	Year Ended
(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~2025			$Change		%Change
Selling, general, and administrative expenses:
U.S. Factory-built Housing	$	~~327~~344,~~015~~278		$	~~232~~327,~~356~~015		$	9417,~~659~~263		405.73	%
Canadian Factory-built Housing		1016,~~913~~662			10,~~592~~913			~~321~~5,749		352.07	%
Corporate/Other		8991,~~063~~614			6789,~~641~~063			212,~~422~~551		312.79	%
Total selling, general, and administrative expenses	$	~~426~~452,~~991~~554		$	~~310~~426,~~589~~991		$	~~116~~25,~~402~~563		376.50	%
Selling, general, and administrative expenses as a percent of net sales		17.20	%		1517.32	%

SG&A expenses were $~~427~~452.06 million during fiscal ~~2025~~2026, an increase of $~~116~~25.46 million compared to the prior year. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

SG&A expenses for the U.S. Factory-built Housing segment increased by $9417.73 million, or 405.73%, during fiscal ~~2025~~2026 as compared to the prior year. SG&A expenses, as a percent of segment net sales, ~~increased~~decreased to 13.97% in fiscal ~~2025~~2026 compared to 1213.39% during fiscal ~~2024~~2025. The ~~increases~~increase ~~were~~in SG&A expenses was primarily due to ~~the~~higher ~~inclusion~~salaries ofand ~~Regional~~incentive ~~Homes~~compensation ~~for~~costs, ~~the~~which ~~entirety~~are ofgenerally ~~fiscal~~based ~~2025~~on ~~compared~~sales tovolume ~~5.5~~or ~~months~~measures inof ~~the prior-year period~~profitability, asthe ~~well~~inclusion asof aIseman ~~charge~~Homes, ofand $81.60 million inof ~~fiscal~~costs ~~2025~~associated ~~related~~with to the ~~change~~idling ~~in fair value~~ of ~~contingent consideration from~~ the ~~acquisition. Additionally~~Bartow, ~~incentive~~Florida ~~compensation~~plant, ~~costs~~partially ~~increased~~offset inby ~~the~~a ~~current~~$3.7 ~~period~~million asgain aon ~~result~~the sale of ~~increased~~an ~~sales~~idle ~~volumes~~facility ~~and~~in ~~profitability.~~the ~~SG&A~~second asquarter ~~a percent~~ of ~~sales~~fiscal ~~for~~2026 ~~our~~and ~~company-owned~~$4.1 ~~retail~~million ~~sales~~less ~~centers~~charges isrelated ~~generally~~to ~~higher~~the ~~than~~change in ~~our~~fair ~~manufacturing~~value ~~operations as a result~~ of the ~~overall~~contingent ~~compensation~~consideration ~~structures~~from acquisitions.

Canadian Factory-built Housing:

SG&A expenses for the Canadian Factory-built Housing segment increased $05.37 million, or 352.07% compared to the prior year, primarily due to higher allocated corporate costs, partially offset by lower incentive compensation which is based on sales volume or profitability, and reductions in wages due to staffing adjustments. SG&A expenses, as a percent of segment net sales, were 1115.60% during fiscal ~~2025~~2026 compared to 911.76% in fiscal ~~2024~~2025. The ~~increase~~increases inwere ~~SG&A~~due asto a$5.2 ~~percent~~million of ~~net~~costs ~~sales~~associated iswith the ~~result~~Kelowna, ofBC ~~less~~plant ~~absorption of certain fixed costs~~closure.

Corporate/Other:

SG&A expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations. SG&A expenses for Corporate/Other increased by $212.46 million, or 312.79%, during fiscal ~~2025~~2026 as compared to the prior year due primarily to higher ~~incentive~~stock compensation asand aprofessional ~~result of achievement of performance metrics in fiscal 2025 compared to fiscal 2024~~fees, ~~and~~partially ~~investments~~offset ~~made~~by inlower ~~people~~IT ~~and information systems to support future growth~~costs.

~~INTEREST (INCOME), NET~~27

~~The~~INTEREST ~~following table summarizes the components of interest (income)~~INCOME, ~~net for fiscal 2025 and 2024:~~NET

	Year Ended
(Dollars in thousands)	March 29,2025			March 30,2024			$Change		%Change
Interest expense	$	8,468		$	4,613		$	3,855		83.6	%
Interest (income)		(25,442	)		(32,867	)		7,425		(22.6	%)
Interest (income), net	$	(16,974	)	$	(28,254	)	$	11,280		(39.9	%)
Average outstanding floor plan payable	$	98,689		$	42,751
Average outstanding long-term debt	$	24,721		$	18,162
Average cash balance	$	552,701		$	629,254

The following table summarizes the components of interest income, net for fiscal 2026 and 2025:

Interest (income), net was $17.0 million during fiscal 2025, compared to $28.3 million in the prior year. The change was primarily due to lower interest income from lower average invested cash balances and higher interest expense from higher average floor plan payables and long-term debt balances assumed in the acquisition of Regional Homes.


	Year Ended
(Dollars in thousands)	March 28, 2026			March 29, 2025			$ Change			% Change

Interest income	$	23,992		$	25,442		$	(1,450	)		(5.7	%)
Interest expense		(7,548	)		(8,468	)		920			(10.9	%)
Interest income, net	$	16,444		$	16,974		$	(530	)		(3.1	%)
Average outstanding floor plan payable	$	100,370		$	98,689
Average outstanding debt	$	24,276		$	24,721
Average cash balance	$	624,299		$	552,701

~~OTHER~~Interest ~~(INCOME)~~income, ~~EXPENSE~~net was $16.4 million during fiscal 2026, ~~NET~~compared to $17.0 million in the prior year. The change was primarily due to lower interest rates on invested cash balances and average floor plan payables.

~~The~~OTHER ~~following table summarizes other (income) expense, net for fiscal 2025 and 2024:~~INCOME

	Year Ended
(Dollars in thousands)	March 29,2025			March 30,2024		$Change			%Change
Other (income) expense, net	$	(3,362	)	$	2,604	$	(5,966	)		(229.1	%)

The following table summarizes other income for fiscal 2026 and 2025:

Other income of $3.4 million for fiscal 2025 represents dividend income of $2.4 million from the investment in ECN Preferred shares and $1.0 million of insurance proceeds for partial settlement of certain Champion Home Builders’ pre-bankruptcy workers' compensation claims. Other expense of $2.6 million for fiscal 2024 represents transaction costs incurred for the acquisition of Regional Homes of $3.3 million, partially offset by dividend income of $0.6 million from the investment in ECN Preferred Shares.


	Year Ended
(Dollars in thousands)	March 28, 2026		March 29, 2025		$ Change			% Change

Other income	$	2,362	$	3,362	$	(1,000	)		(29.7	%)

29Other income of $2.4 million for fiscal 2026 represents dividend income from the investment in ECN Preferred shares. Other income of $3.4 million for fiscal 2025 represents dividend income from the investment in ECN Preferred shares and $1.0 million of insurance proceeds for partial settlement of certain Champion Home Builders’ pre-bankruptcy workers' compensation claims.

INCOME TAX EXPENSE

The following table summarizes income tax expense for fiscal ~~2025~~2026 and ~~2024~~2025:

	Year Ended
(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~2025			$Change		%Change
Income tax expense	$	5356,~~724~~757		$	4753,~~136~~724		$	63,~~588~~033		145.06	%
Effective tax rate		2021.90	%		2320.59	%

Income tax expense during fiscal ~~2025~~2026 was $5356.78 million, representing an effective tax rate of 2021.90%, compared to income tax expense of $4753.17 million, representing an effective tax rate of 2320.59%, in fiscal ~~2024. The rate change from fiscal 2024 to fiscal~~ 2025 ~~is primarily due to an increase in tax credits in fiscal 2025~~.

The Company’s effective tax rate for both fiscal ~~2025~~2026 and ~~2024~~2025 differs from the federal statutory income tax rate of 21.0%, due primarily to the effect of non-deductible expenses, state and local income taxes, and foreign rate differential, partially offset by tax credits.

~~EQUITY~~Equity INin ~~NET~~net ~~LOSS~~(income) INloss ~~AFFILIATES~~of affiliates

The following table summarizes equity in net (income) loss of affiliates for fiscal ~~2025~~2026 and ~~2024~~2025:

	Year Ended
(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~2025		$Change			%Change
Equity in net loss of affiliates	$	2,004		$	7,023	$	(5,019	)		(71.5	%)
Equity in net (income) loss of affiliates	$	(382	)	$	2,004	$	(2,386	)		(119.1	%)

The Company's 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. Equity in net ~~loss~~income of affiliates of $2.0.4 million in fiscal ~~2025~~2026 represents net ~~losses~~income on the equity method investment in ECN of $01.42 million and net losses from other unconsolidated affiliates of $10.68 million. Equity in net loss of affiliates of $72.0 million for fiscal ~~2024~~2025 represented anet ~~loss~~losses on the equity method investment in ECN of $0.4 million and net losses from other unconsolidated affiliates of $1.6 million.

NON-CONTROLLING INTEREST

The following table summarizes net income attributable to non-controlling interest for fiscal ~~2025~~2026 and ~~2024~~2025:

Year Ended

(Dollars in thousands)

March 2928,~~2025~~2026

March 3029,~~2024~~2025

$Change

%Change

Net income attributable to non-controlling interest

37,~~227~~298

—3,227

34,~~227~~071

126.2

* indicates that the calculated percentage is not meaningful

Net income attributable to non-controlling interest, which is a reduction to net income attributable to Champion Homes, Inc., represents the minority partner's 49% share of the results of operations of Champion Financing.

ADJUSTED EBITDA

The following table reconciles net income, the most directly comparable U.S. GAAP measure, to Adjusted EBITDA, a non-GAAP financial measure, for fiscal ~~2025~~2026 and ~~2024~~2025:

	Year Ended
(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~2025			$Change			%Change
Net income attributable to Champion Homes, Inc.	$	~~198~~206,~~413~~898		$	~~146~~198,~~696~~413		$	518,~~717~~485			354.3	%
Income tax expense		5356,~~724~~757			4753,~~136~~724			63,~~588~~033			145.06	%
Interest (income), net		(16,~~974~~444	)		(2816,~~254~~974	)		~~11,280~~530			(393.91	%)
Depreciation and amortization		4147,~~910~~789			3441,910			75,~~000~~879			2014.10	%
Equity in net loss of ECN		363			7,023			(6,660	)		(94.8	%)
Equity in net (income) loss of ECN		(1,192	)		363			(1,555	)	*
Change in fair value of contingent consideration		84,~~620~~496			—8,620			8(4,~~620~~124	)	*	(47.8	%)
Product liability - water intrusion		—			34,500			(34,500	)		(100.0	%)
Plant closure costs		5,832			-			5,832		*
Transaction costs		—			3,253			(3,253	)		(100.0	%)
Gain on sale of idle facility		(3,650	)		-			(3,650	)	*
Other		(1,000	)		—			(1,000	)	*
Product liability - water intrusion, net		5,030			-			5,030		*
Adjusted EBITDA	$	285,056		$	245,264		$	39,792			16.2	%
Transaction costs		1,794			-			1,794		*
Other		919			(1,000	)		1,919		*
Adjusted EBITDA	$	308,229		$	285,056		$	23,173			8.1	%

* indicates that the calculated percentage is not meaningful

Adjusted EBITDA for fiscal ~~2025~~2026 was $~~285~~308.12 million, an increase of $3923.82 million from fiscal ~~2024~~2025. The increase is a result of higher sales volumes and gross profit, partially offset by higher SG&A expenses~~, primarily driven by the inclusion of Regional Homes for the entirety of fiscal 2025 compared to 5~~.5 ~~months of operations in the prior year period.~~ See the definition of Adjusted EBITDA under “Non-GAAP Financial Measures” below for additional information regarding the definition and use of this metric in evaluating the Company’s results.

BACKLOG

Although orders from customers can be cancelled at any time without penalty, and unfilled orders are not necessarily an indication of future business, the Company’s unfilled U.S. and Canadian manufacturing orders at March 2928, ~~2025~~2026 totaled $~~343~~316.40 million compared to $~~315~~343.84 million at March 3029, ~~2024~~2025. The ~~increase~~decrease in backlog ~~was~~is ~~primarily~~a ~~driven~~function byof ~~higher~~production ~~net~~rates ~~orders.~~exceeding order rates during fiscal 2026 compared to fiscal 2025.

LIQUIDITY AND CAPITAL RESOURCES

The following table presents summary cash flow information for fiscal ~~2025~~2026 and ~~2024~~2025:

	Year Ended
(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~2025
Net cash provided by (used in):
Operating activities	$	~~240~~303,~~857~~868		$	~~222~~240,~~704~~857
Investing activities		(4657,~~155~~196	)		(~~485~~46,~~678~~155	)
Financing activities		(73222,~~038~~220	)		10(73,~~864~~038	)
Effect of exchange rate changes on cash		(63,~~389~~469	)		(~~280~~6,389	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		115,275			(252,390	)
Net increase in cash and cash equivalents		27,921			115,275
Cash, cash equivalents, and restricted cash at beginning of period		495,063			747,453
Cash and cash equivalents at beginning of period		610,338			495,063
Cash, cash equivalents, and restricted cash at end of period	$	610,338		$	495,063
Cash and cash equivalents at end of period	$	638,259		$	610,338

The Company’s primary sources of liquidity are cash flows from operations and existing cash balances. Cash balances and cash flows from operations for the next year are expected to be adequate to cover working capital requirements, capital expenditures, and strategic initiatives and investments. The Company does not have any scheduled long-term debt maturities in the next twelve months. The Company has an Amended and Restated Credit Agreement which provides for a $200.0 million revolving credit facility, including a $45.0 million letter of credit sub-facility ("Amended Credit Agreement"). At March 29, 2025, there were no borrowings under the Amended Credit Agreement and letters of credit issued under the Credit Agreement totaled $31.5 million. Total available borrowings under the Credit Agreement as of March 30, 2024 were $168.5 million. The Company’s revolving credit facility includes (i) a maximum consolidated total net leverage ratio of 3.25 to 1.00, subject to an upward adjustment upon the consummation of a material acquisition, and (ii) a minimum interest coverage ratio of 3.00 to 1.00. The Company anticipates compliance with its debt covenants and projects its level of cash availability to be in excess of cash needed to operate the business for the next year and beyond.

31The Company’s primary sources of liquidity are cash flows from operations and existing cash balances. Cash balances and cash flows from operations for the next year are expected to be adequate to cover working capital requirements, capital expenditures, maturities of long-term debt, and strategic initiatives and investments. The Company's Second Amended and Restated Credit Agreement provides for a $200.0 million revolving credit facility, including a $45.0 million letter of credit sub-facility ("Second Amended Credit Agreement"). At March 28, 2026, there were no borrowings under the Second Amended Credit Agreement and letters of credit issued under the Second Amended Credit Agreement totaled $27.5 million. Total available borrowings under the Second Amended Credit Agreement as of March 29, 2025 were $172.5 million. The Company’s revolving credit facility includes (i) a maximum consolidated total net leverage ratio of 3.25 to 1.00, subject to an upward adjustment upon the consummation of a material acquisition, and (ii) a minimum interest coverage ratio of 3.00 to 1.00. The Company anticipates compliance with its debt covenants and projects its level of cash availability to be in excess of cash needed to operate the business for the next year and beyond. In the event operating cash flow and existing cash balances were deemed inadequate to support the Company’s liquidity needs, and one or more capital resources were to become unavailable, the Company would revise its operating strategies.

InCash ~~the~~provided ~~event~~by operating ~~cash~~activities ~~flow~~was ~~and~~$303.9 ~~existing~~million ~~cash~~in ~~balances~~fiscal ~~were~~2026 ~~deemed~~compared ~~inadequate~~ to ~~support~~$240.9 ~~the~~million ~~Company’s~~in ~~liquidity~~fiscal ~~needs,~~2025. The increase was driven by changes in deferred taxes and ~~one~~favorable orchanges ~~more~~in working capital ~~resources~~items ~~were~~primarily toa ~~become~~result ~~unavailable,~~of the ~~Company~~decrease ~~would~~in ~~revise~~finished ~~its~~goods ~~operating~~inventories ~~strategies~~at the company-owned retail sales centers.

Cash ~~provided~~used byin ~~operating~~investing activities was $~~240~~57.92 million in fiscal ~~2025~~2026 ~~compared~~versus to $~~222~~46.72 million in fiscal ~~2024~~2025. The increase ~~was~~in ~~driven~~cash byused ~~higher~~in ~~net~~investing ~~income,~~activities ~~partially~~was ~~offset~~related byto ~~less~~the ~~favorable~~acquisition ~~changes~~of inIseman ~~working~~Homes ~~capital~~in ~~items~~the ~~primarily~~first aquarter ~~result~~ of ~~the~~fiscal ~~increase~~2026, offset in ~~finished~~part ~~goods~~by ~~inventories~~a atreduction ~~the~~in ~~company-owed~~expenditures ~~retail~~for ~~sales~~property, ~~centers~~plant and equipment.

Cash used in ~~investing~~financing activities was $46222.2 million in fiscal ~~2025~~2026 versus $~~485~~73.70 million in fiscal ~~2024~~2025. The ~~decrease~~increase in cash used ~~for~~in ~~investing~~financing activities was ~~related~~primarily toa ~~the~~result ~~Company's acquisition~~ of ~~Regional Homes,~~ an ~~investment~~increase in ~~floor~~repurchases ~~plan~~of ~~loans, and~~ the ~~purchase~~Company's ~~of ECN common and preferred~~ stock in fiscal ~~2024~~2026 ~~which~~and ~~did~~reduction ~~not~~of ~~reoccur~~floor inplan ~~fiscal 2025~~payables.

Cash used in financing activities was $73.0 million in fiscal 2025 versus $10.9 million provided by financing activities in fiscal 2024. The increase in fiscal 2025 is a result of common stock repurchases of $80.0 million. Fiscal 2025 was the first year of the repurchase activity.

CONTRACTUAL OBLIGATIONS AND COMMITMENTS

Credit Facility

The Second Amended Credit Agreement matures in July ~~2026~~2030 and has no scheduled amortization. The interest rate on borrowings under the Second Amended Credit Agreement is based on the Secured Overnight Financing Rate ("SOFR") ~~plus~~or aan ~~benchmark~~Alternative ~~Replacement~~Base Rate ~~Adjustment~~ ("~~Replacement 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% ~~when~~or the ~~consolidated total net leverage is below 0.50:1.00. Alternatively for same day borrowings, the interest rate is based on an Alternative Base Rate ("~~ABR") plus ~~an interest rate spread that ranges from a high of~~ 0.~~875% to a low of 0.~~125% ~~based~~(when on the consolidated total net leverage ratio is less than 0.50 to 1.00). In addition, the Company is obligated to pay an unused line fee ranging between 0.15% and 0.30% depending on the consolidated total net leverage ratio, in respect of unused commitments under the Amended Credit Agreement.

Letter of Credit Facility

The Company has a letter of credit sub-facility under the Second Amended Credit Agreement. At March 2928, ~~2025~~2026, letters of credit issued under the sub-facility totaled $3127.5 million.

Industrial Revenue Bonds

Obligations under industrial revenue bonds are supported by letters of credit and bear interest based on a municipal bond index rate. The industrial revenue bonds require lump-sum payments of principal upon maturity in 2029.

Notes Payable

As part of the acquisition of Regional Homes, the Company assumed notes payable to Romeo Juliet, LLC, a subsidiary of Wells Fargo Community Investment Holdings, Inc. ("WFC") of $7.3 million, which mature at various dates from 2026 through 2039. The notes have a fixed rate of 5.42% and are secured by certain assets of Regional Homes. In addition, the Company assumed a note payable to United Bank of $4.9 million with a fixed interest rate of 3.85% that is secured by a Note Receivable from HHB Investment Fund, LLC, a subsidiary of WFC.

Floor Plan Payable

At March 2928, ~~2025~~2026, the Company had outstanding borrowings on floor plan financing arrangements of $~~106~~94.16 million. The Company’s retail operations utilize floor plan financing to fund the acquisition of manufactured homes for display or resale. The arrangements provide for borrowings up to $~~253~~308.0 million. Floor plan payables are secured by the homes acquired and are required to be repaid when the Company sells the financed home to a customer.

Contingent Obligations

The Company has contingent liabilities and obligations at March 2928, ~~2025~~2026, including surety bonds and letters of credit totaling $1714.58 million and $3127.5 million, respectively. Additionally, the Company is contingently obligated under repurchase agreements with certain lending institutions that provide floor plan financing to independent retailers. The contingent repurchase obligation as of March 2928, ~~2025~~2026 is approximately $~~241~~233.97 million, without reduction for the resale value of the homes collateralizing the potential repurchases. The Company has the ability to resell the repurchased collateral to other retailers, and losses incurred on repurchased homes have been insignificant in recent periods. The reserve for estimated losses under repurchase agreements was $1.67 million at March 2928, ~~2025~~2026. See “Critical Accounting Polices and Estimates – Reserve for Repurchase Commitments” below.

The Company has provided various representations, warranties, and other standard indemnifications in the ordinary course of its business in agreements to acquire and sell business assets and in financing arrangements. The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business.

In the normal course of business, the Company’s subsidiaries historically provided certain parent company guarantees to two U.K. customers. These guarantees provided contractual liability for proven construction defects up to 12 years from the date of delivery of the units. The guarantees remain a contingent liability subsequent to the fiscal 2017 disposition of the U.K. operations, which declines over time through October 2027. As of the date of this report, no claims have been reported under the terms of the guarantees.

Product Liability - Water Intrusion

The Company has received consumer complaints for damages related to water intrusion in homes built in one of its manufacturing facilities prior to fiscal 2022. The Company has investigated, and believes, the cause of the damage is the result of materials that did not perform in accordance with the manufacturer's contractual obligations. The Company has identified that certain homes constructed over that period that may be affected. Based on the results of ongoing investigation and repair efforts, the Company ~~has~~ developed a remediation plan under Subpart I of the HUD code, which was approved in fiscal 2025. The plan ~~calls~~called for inspection and repair of affected homes if there is evidence of damage, or procedures to mitigate the opportunity for future damage. As a result of the proposal, the Company recorded ~~charges~~a tocharge ~~execute the remediation plan~~ of $34.5 million during the fourth quarter of fiscal 2024 related to the estimated costs of the planned remediation efforts. The Company estimated the charges by establishing a range of total expected costs determined by an actuary using a Monte Carlo simulation. The analysis, which was completed at the end of the fourth quarter of fiscal 2024, resulted in a range of losses between $34.5 million and $85.0 million. The Company was not able to determine a value in the range that was more likely than any other value, and as prescribed by U.S. GAAP, recorded the charge for remediation based on the low end of the range of potential losses. ~~The~~During fiscal 2026, the Company reassessed the total expected remaining estimated costs inof the ~~fourth~~planned ~~quarter~~remediation ofefforts ~~fiscal~~and ~~2025~~determined, ~~which~~through ~~resulted~~completed ininspection, norepair ~~change~~and settlement efforts, that there was sufficient experience such that recording to the low end of ~~the~~a range of ~~potential~~ losses ~~and~~was ~~reduction~~no longer appropriate. The actuarial analysis completed in the ~~high~~fourth ~~end~~quarter of ~~the~~fiscal ~~range~~2026 resulted in a charge of ~~potential~~$8.5 ~~losses~~million to increase the remaining estimated liability to $7735.56 million at March 28, 2026. The Company will continue to monitor the population of affected homes and the results of the inspection and repair activities, including actual repair costs on the affected homes and the number of affected homes to be repaired, and may revise the amount of the estimated liability, which could result in an increase or decrease in the estimated liability in future periods. ~~The liability, net of $0.4 million of remediation payments made during fiscal 2025, is included in other current liabilities in the accompanying Consolidated Balance Sheets.~~

~~Based~~In onJanuary 2026, the Company's ~~investigation~~entered into an agreement with the ~~cause~~distributor of the ~~water~~roofing ~~intrusion,~~material ~~including~~to ~~third-party~~share ~~testing~~certain costs of the ~~material~~remediation. atAs ~~issue~~a result, the Company ~~believes~~received it$3.5 ismillion ~~possible~~cash ~~that~~payment itin ~~will~~the ~~recover~~fourth ~~some~~quarter orof ~~all~~fiscal of2026 ~~the~~and ~~estimated~~will ~~remediation~~receive ~~costs~~$2.5 ~~The~~million ~~Company~~of ~~will~~future ~~attempt~~purchase tocredits. ~~recover~~Reimbursements ~~those~~are ~~costs~~reflected ~~from~~as ~~the~~a ~~manufacturer~~reduction to cost of ~~the~~goods ~~material~~sold as cash is received or purchase credits are applied. Additionally, the distributor ofwill reimburse the ~~material,~~Company ~~their~~for ~~related~~a ~~insurance~~portion ~~providers~~of orfuture ~~from~~remediation ~~the~~costs ~~Company's~~which ~~insurance~~will ~~providers.~~be ~~However,~~both in the ~~Company~~form isof ~~unable~~cash toand ~~record~~purchase ancredits. Such ~~offset~~amounts ~~for~~will ~~any~~be ~~estimated~~reflected ~~costs~~as ata ~~this~~reduction ~~time~~to incost ~~accordance~~of ~~with~~goods ~~U.S.~~sold ~~GAAP.~~when those purchase credits are applied.

NON-GAAP FINANCIAL MEASURES - ADJUSTED EBITDA

The Company defines Adjusted Earnings Before Interest Taxes and Depreciation and Amortization (“Adjusted EBITDA”) as net income or loss attributable to Champion Homes, Inc. plus expenses or minus income for: (a) the provision for income taxes; (b) interest income or expense, net; (c) depreciation and amortization; (d) gain or loss from discontinued operations; (e) non-cash restructuring charges and impairment of assets; (f) equity in net earnings or losses of ECN; (g) charges related to the remediation of the water intrusion product liability claims and reimbursement of water intrusion costs; and (h) other non-operating income or expense including but not limited to those costs for the acquisition and integration or disposition of businesses, including the change in fair value of contingent consideration, and idle facilities. Adjusted EBITDA is not a measure of earnings calculated in accordance with U.S. GAAP and should not be considered an alternative to, or more meaningful than, net income or loss prepared on a U.S. GAAP basis. Adjusted EBITDA does not purport to represent cash flow provided by, or used in, operating activities as defined by U.S. GAAP, which is presented in the Statement of Cash Flows. In addition, Adjusted EBITDA is not necessarily comparable to similarly titled measures reported by other companies.

Adjusted EBITDA is presented as a supplemental measure of the Company’s financial performance that management believes is useful to investors, because the excluded items may vary significantly in timing or amounts and/or may obscure trends useful in evaluating and comparing the Company’s operating activities across reporting periods. Management believes Adjusted EBITDA is useful to an investor in evaluating operating performance for the following reasons: (i) Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest income and expense, taxes, depreciation and amortization and other non-operating income or loss, which can vary substantially from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets were acquired; and (ii) analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry.

Management uses Adjusted EBITDA for planning purposes, including the preparation of internal annual operating budget and periodic forecasts: (i) in communications with the Board of Directors and investors concerning financial performance; (ii) as a factor in determining bonuses under certain incentive compensation programs; and (iii) as a measure of operating performance used to determine the ability to provide cash flows to support investments in capital assets, acquisitions and working capital requirements for operating expansion.

in determining bonuses under certain incentive compensation programs; and (iii) as a measure of operating performance used to determine the ability to provide cash flows to support investments in capital assets, acquisitions and working capital requirements for operating expansion.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our significant accounting policies are more fully described in Note 1, "Summary of Significant Accounting Policies," to the ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~Statements included in this Report. Certain of our accounting policies require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Assumptions and estimates of future earnings and cash flow are used in the periodic analyses of the recoverability of goodwill, intangible assets, deferred tax assets and property, plant, and equipment. Historical experience and trends are used to estimate reserves, including reserves for self-insured risks, warranty costs, and wholesale repurchase losses. The Company considers an accounting estimate to be critical if it requires us to make assumptions about matters that were uncertain at the time the estimate was made and changes in the estimate would have had a significant impact on our consolidated financial position or results of operations. The Company believes that the following discussion addresses the Company’s critical accounting estimates.

Acquisitions

We allocate the purchase price of an acquired business to its identifiable assets and liabilities based on estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. We use all available information to estimate fair values. We typically engage outside appraisal firms to assist in the fair value determination of identifiable intangible assets and any other significant assets or liabilities. We adjust the preliminary purchase price allocation, as necessary, up to one year after the acquisition closing date as we obtain more information regarding asset valuations and liabilities assumed. Our estimates of fair value are based upon assumptions believed to be reasonable, but that are inherently uncertain, and therefore, may not be realized. Unanticipated events or circumstances may occur which could affect the accuracy of our fair value estimates, including assumptions regarding industry economic factors and business strategies. Accordingly, there can be no assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially.

Reserves for Self-Insured Risks

The Company is self-insured for a significant portion of its general insurance, product liability, workers’ compensation, auto, health, and property insurance. Insurance coverage is maintained for catastrophic exposures and those risks required to be insured by law. The Company is currently liable for the first $~~250~~500,000 of incurred losses for each workers’ compensation incident, $150,000 for each auto liability claim and is responsible for losses up to the first $500,000 per occurrence for general, product liability, and property insurance. Generally catastrophic losses are insured up to $80 million. The Company establishes reserves for reported and unreported losses and insurance company reimbursements under these programs using an actuarial determined value which takes into consideration prior claim experience, estimates of losses for known occurrences and the respective volume of business activity for a given period. ~~The health plan is currently subject to a stop-loss limit of $800,000 per occurrence.~~ Estimated self-insurance costs are accrued for all expected future expenditures for reported and unreported claims based on historical experience.

Impairment of Long-Lived Assets

Impairment of Goodwill

Goodwill is not amortized but is tested for impairment at least annually. Impairment testing is required more often if an event or circumstance indicates that an impairment is more likely than not to have occurred. In conducting its annual impairment testing, the Company may first perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If not, no further goodwill impairment testing is required. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. As the analysis depends upon judgments, estimates and assumptions, such testing is subject to inherent uncertainties, which could cause the fair value to fluctuate from period to period.

In fiscal ~~2025~~2026, the Company performed qualitative assessments of its reporting units. The annual assessment was completed on of the first day of fiscal March. The assessments indicated that it was more likely than not that the fair value of each of the reporting units exceeded its respective carrying value. The Company does not believe that any reporting units are at risk for impairment.

Income Taxes and Deferred Tax Assets

Deferred tax assets and liabilities are determined based on temporary differences between the financial statement amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance is provided when the Company determines that it is more likely than not that some or all of the deferred tax assets will not be realized.

Reserve for Repurchase Commitments

As is customary in the factory-built housing industry, a significant portion of the home sales to independent retailers are made pursuant to repurchase agreements with lending institutions that provide wholesale floor plan financing to the retailers. Certain homes sold pursuant to repurchase agreements are subject to repurchase, generally up to 24 months after the sale of the home to the retailer. Certain other homes sold pursuant to repurchase agreements are subject to repurchase until the home is sold by the retailer. For those homes with an unlimited repurchase period, the Company’s risk of loss upon repurchase declines due to required monthly principal payments by the retailer. After 18 to 36 months from the date of the Company’s sale of the home, the risk of loss on these homes is low, and by the 46th month, most programs require that the home be paid in full, at which time the Company no longer has risk of loss. Pursuant to these agreements, during the repurchase period, generally upon default by the retailer and repossession by the financial institution, the Company is obligated to repurchase the homes from the floor plan lenders. The contingent repurchase obligation as of March 2928, ~~2025~~2026 was estimated to be approximately $~~241~~233.97 million, without reduction for the resale value of the homes. Losses under repurchase obligations represent the difference between the repurchase price and net proceeds from the resale of the homes, less accrued rebates, which will not be paid. Losses incurred on homes repurchased have been insignificant in recent periods. The reserve for estimated losses under repurchase agreements was $1.67 million at March 2928, ~~2025~~2026.

OTHER MATTERS

Inflation

Raw material price increases have generally been passed on to customers or mitigated through working with supply chain partners, sourcing alternative materials or other operational improvements to minimize the effect on our profitability. However, continued, frequent and sudden increases in specific costs, as well as price competition, can affect the ability to pass on costs and adversely impact results of operations. Therefore, there is no assurance that inflation or the impact of rising material costs will not have a significant impact on revenue or results of operations in the future.

Seasonality

The housing industry, which includes factory-built homes, is affected by seasonality. Sales during the period from March to November are traditionally higher than other months. As a result, quarterly results of a particular period are not necessarily representative of the results expected for the year.

Recently Issued Accounting Standards

Refer to Note 1, “Summary of Significant Accounting Policies,” in our accompanying Consolidated Financial Statements for information regarding new accounting pronouncements.

3533

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

Debt obligations under the Amended Credit Agreement are subject to variable rates of interest based on SOFR or an ABR, at the election of the Company. Changes in interest rates will affect interest payments on outstanding debt balances. At March 2928, ~~2025~~2026, there were no outstanding borrowings on the Amended Credit Agreement.

The Company’s approach to interest rate risk is to balance borrowings between fixed rate and variable rate debt as management deems appropriate. At March 2928, ~~2025~~2026, the Company’s borrowings under the industrial revenue bonds were at variable rates, borrowings under notes payable assumed from the acquisition of Regional Homes are at fixed rates and borrowings under floor plan financing arrangements were at a combination of fixed and variable rates.

Obligations under industrial revenue bonds and certain floor plan financing arrangements are subject to variable rates of interest based on a municipal bond index rate and on terms negotiated with the floor plan lenders respectively. At March 2928, ~~2025~~2026, there was $~~106~~94.16 million outstanding on floor plan agreements and $12.4 million outstanding on borrowings under industrial revenue bonds. A 100 basis point increase in the underlying interest rates would result in additional annual interest expense of approximately $0.9 million on outstanding floor plan balances and industrial revenue bonds.

Foreign Exchange Risk

The Company is exposed to foreign exchange risk with its factory-built housing operations in Canada. The Canadian operations had fiscal ~~2025~~2026 net sales of $~~130~~153.94 million Canadian dollars. Assuming future annual Canadian net sales equivalent to fiscal ~~2025~~2026, a change of 1.0% in exchange rates between the U.S. and Canadian dollars would change consolidated sales by $1.35 million. The Company also has foreign exchange risk for cash balances maintained in Canadian dollars that are subject to fluctuating values when exchanged into U.S. dollars. The Company does not financially hedge its investment in the Canadian operations or in Canadian denominated bank deposits.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Financial statements, exhibits and schedules are filed herewith under Item 15.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

(a)

Evaluation of Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of March 2928, ~~2025~~2026. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were ~~not~~ effective as of March 2928, ~~2025, due to a material weakness in internal control over financial reporting, as described below in Management's Report on Internal Control over Financial Reporting~~2026.

(b)

Management’s Report on Internal Control over Financial Reporting

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Internal control over financial reporting includes those policies and procedures that:

(1)

pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company's assets;

(2)

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in conformity with U.S. GAAP, and that the Company's receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

(3)

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

Because of their inherent limitations, the Company's controls and procedures may not prevent or detect misstatements. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all controls systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

Management assessed the effectiveness of the Company's internal control over financial reporting based on the criteria in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("2013 Framework"). Based on management's evaluation under the criteria in the 2013 Framework, management concluded that the Company's internal control over financial reporting was ~~not~~ effective as of March 2928, ~~2025, due to the material weakness described below~~2026.

Remediation of Previously Disclosed Material Weakness

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. ~~Management~~As previously disclosed in Part II, Item 9A. Controls and Procedures in the Company's Annual Report on Form 10-K for the fiscal year ended March 29, 2025, management identified a material weakness in internal controls related to ineffective operation of controls in the retail operations of Regional Homes, which the Company acquired in October 2023. This material weakness resulted from insufficiently documented manual controls over the recording of transactions, and the lack of analysis and review related to financial statement accounts. As a result of the material weakness there was a reasonable possibility that the ineffective operating controls could have resulted in a material misstatement in the Company’s ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~Statements that would not be detected.

~~Remediation~~During fiscal 2026, management implemented remediation measures designed to ensure that the control deficiencies contributing to the material weakness were remediated such that those controls were designed, implemented, and operating effectively. The remediation actions included (i) improving the retail accounting and information systems to produce reports which supported the performance of ~~Material~~control ~~Weakness~~activities, (ii) designing and implementing manual controls to validate the completeness and accuracy of data; (iii) developing and implementing additional training for control owners concerning the principles and requirements of each control, (iv) hiring and training additional accounting and operating personnel at all levels of the retail operations of Regional Homes; and (v) increasing corporate oversight and review of controls and processes.

Management ~~has~~completed ~~been~~its ~~implementing~~testing ~~and~~of ~~continues~~the tooperating ~~implement~~effectiveness ~~measures~~of ~~designed to ensure that control deficiencies contributing to~~ the ~~material weakness are~~ remediated ~~such that those~~ controls ~~are~~during ~~designed,~~the ~~implemented,~~fourth ~~and~~quarter ~~operating~~of ~~effectively.~~fiscal ~~The~~2026 ~~remediation actions include (i) improving the retail accounting~~ and ~~information~~found ~~systems~~them to ~~support~~be ~~automated~~appropriately ~~controls,~~designed ~~(ii) developing~~ and ~~implementing~~effective. ~~additional~~As ~~training~~a ~~for control owners concerning the principles and requirements of each control~~result, ~~(iii)~~we ~~hiring~~have ~~and~~concluded ~~training additional accounting and operating personnel at all levels of~~ the ~~retail~~previously ~~operations~~identified ofmaterial ~~Regional~~weakness ~~Homes;~~has ~~and~~been ~~(iv)~~fully ~~increasing~~remediated ~~corporate~~as ~~oversight and review~~ of ~~controls~~March ~~and~~28, ~~processes~~2026.

(c)

We believe that these actions, when fully implemented, will remediate the material weakness. The material weakness will not be considered remediated, however, until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We may also conclude that additional measures may be required to remediate the material weakness in our internal control over financial reporting, which may necessitate additional implementation and evaluation time. We will continue to assess the effectiveness of our internal control over financial reporting and take steps to remediate the known material weakness expeditiously.

Attestation Report of the Independent Registered Public Accounting Firm

Ernst & Young LLP, the Company’s independent registered public accounting firm, audited the Company’s ~~consolidated~~Consolidated ~~financial~~Financial ~~statements~~Statements set forth in this Annual Report and issued an attestation report regarding the effectiveness of our internal control over financial reporting as of March 2928, ~~2025~~2026, and the attestation report is set forth in Item 15, "Financial Statement Schedules," under the caption "Report of Independent Registered Public Accounting Firm" and is incorporated herein by reference.

(d)

Changes in Internal Control over Financial Reporting

Except for the material weakness remediation actions discussed above, there were no changes in the Company’s internal control over financial reporting during the quarter ended March 2928, ~~2025~~2026 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. In the first quarter of fiscal 2026, we completed the acquisition of Iseman Homes and are currently integrating Iseman Homes into our operations, compliance programs and internal control processes. This acquired business comprised approximately 2% of total assets as of March 28, 2026 and approximately 2% of net sales for the year ended March 28, 2026. SEC guidance allows companies to exclude acquisitions from their assessment of the internal control over financial reporting during the first year following an acquisition while integrating the acquired company. We have excluded the acquired operations of Iseman Homes from our assessment of the Company's internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

During the three months ended March 2928, ~~2025~~2026, none of the Company’s directors or Section 16 officers adopted or terminated a "Rule 10b5-1 trading arrangement" or “non-Rule 10b5-1 trading arrangement,” as each item is defined in Item 408(a) of Regulation S-K.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTION

Not applicable.

3735

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

The information required by this item will be set forth in the definitive Proxy Statement for our ~~2025~~2026 Annual Meeting of Stockholders (the “~~2025~~2026 Proxy Statement”), which will be filed within 120 days after the end of the registrant’s fiscal year, under the captions "Proposal One: Election of Directors," "Share Ownership of Certain Beneficial Owners," "Executive Officers," "Corporate Governance Overview” and “Delinquent Section 16(a) Reports” (to the extent reported therein) and is incorporated herein by reference.

The Company has adopted a written code of business conduct and ethics (“Code of Conduct”) which applies to all of its directors, officers, and employees. Our Code of Conduct is available on our website, www.championhomes.com, and can be obtained by writing to Investor Relations at 755 West Big Beaver Rd., Suite 1000, Troy, Michigan 48084, or by sending an email to [email protected]. The information contained on our website is not incorporated by reference into this Annual Report on Form 10-K.

ITEM 11. EXECUTIVE COMPENSATION

The information required by this item will be set forth in the ~~2025~~2026 Proxy Statement under the captions “Compensation Discussion and Analysis,” “How We Make Compensation Decisions,” “What We Pay and Why: Elements of Compensation,” “Executive Compensation Tables,” “Summary Compensation Table,” “Grants of Plan-Based Awards,” “Outstanding Equity Awards Table,” “Option Exercises and Stock Vested Table,” “Potential Payments Upon Termination or Change in Control,” “Director Compensation,” “Director Compensation Program,” “Non-Employee Director Compensation in Fiscal ~~2025~~2026,” “CEO Pay Ratio,” "Pay Versus Performance Table," “Compensation Committee Interlocks and Insider Participation,” and “Compensation Committee Report,” and is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this item will be set forth in the ~~2025~~2026 Proxy Statement under the caption "Share Ownership of Certain Beneficial Owners" and is incorporated herein by reference.

Equity Compensation Plan Information

The following table provides information about the Company’s equity compensation plans as of March 2928, ~~2025~~2026:

Plan Category	Number of Securities to beIssued Upon Exercise ofOutstanding Options,Warrants and Rights (1)(A)	Weighted-AverageExercise Price of OutstandingOptions,Warrants and Rights (2)(B)	Number of SecuritiesRemaining Available forFuture Issuance UnderEquity Compensation Plans(Excluding SecuritiesReflectedin Column (A))(C)
Equity compensation plans approved by Stockholders	~~981~~894,~~615~~885	$ 2930.9875	32,~~058~~678,~~155~~982
Equity compensation plans not approved by Stockholders	—	—	—
Total	~~981~~894,~~615~~885	$ 2930.9875	32,~~058~~678,~~155~~982

(1)

This amount represents the following: (a) ~~316~~173,~~018~~823 shares subject to the vesting and/or exercise of outstanding options; (b) ~~415~~386,~~734~~978 shares subject to vesting of outstanding performance-based restricted stock units reflected at the maximum potential vesting; and (c) ~~249~~334,~~863~~084 shares subject to vesting of outstanding restricted stock units. The options, performance-based restricted stock units and restricted stock units were all granted under our 2018 Equity Incentive Plan.

(2)

The weighted-average exercise price is calculated solely on the exercise prices of the outstanding options and does not reflect the shares that will be issued upon the vesting of outstanding awards of performance-based restricted stock units and time-based restricted stock units, which have no exercise price.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item will be set forth in the ~~2025~~2026 Proxy Statement under the captions “Proposal One: Election of Directors,” “Board Composition and Director Independence,” “Meetings and Committees,” “Corporate Governance Overview,” “Compensation Committee Interlocks and Insider Participation,” and “Certain Relationships and Related Person Transactions,” and is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by this item will be set forth in the ~~2025~~2026 Proxy Statement under the captions “Auditor Fees and Pre-Approval Policy,” “Auditor Fees and Services,” and “Pre-Approval of Auditor Fees and Services,” and is incorporated herein by reference.

3936

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Financial Statements and Financial Statement Schedules

(a)

Financial Statements are listed in the Index to Consolidated Financial Statements on page F-1 of this Annual Report.

Financial Statement Schedules:

Schedule II — Valuation and Qualifying Accounts

All other financial statement schedules are omitted because such schedules are not required, or the information required has been presented in the aforementioned financial statements.

Exhibits

The documents listed below are being filed or have previously been filed on behalf of the Company and are incorporated herein by reference from the documents indicated and made a part hereof. Exhibits not identified as previously filed are filed herewith.

ExhibitNumber		Exhibit Description
3.1		Amended and Restated Articles of Incorporation of Champion Homes, Inc., dated August 5, 2024 (incorporated by reference to Exhibit 3.1 of the registrant’s Current Report on Form 8-K ~~dated~~filed on August 5, 2024).
3.2		Amended and Restated By-Laws of Champion Homes, Inc., effective August 5, 2024 (incorporated by reference to Exhibit 3.2 of the registrant’s Current Report on Form 8-K ~~dated~~filed August 5, 2024).
4.1		Description of Common Stock (incorporated by reference to Exhibit 4.*1 of the registrant’s Annual Report on Form 10-K filed on May 27, 2025).
10.1		Amended and Restated Credit Agreement, dated as of July 7, 2021 as amended May 18, 2023, by and among Skyline Champion Corporation, Champion Home Builders, Inc. and Wells Fargo Bank, National Association, as administrative agent and collateral agent, and the other financial institutions party thereto (incorporated by reference to Exhibit 10.1 of the registrant’s Current Report on Form 8-K filed on May 22, 2023).
10.2		~~2018~~Second ~~Equity~~Amended ~~Incentive~~and ~~Plan~~Restated Credit Agreement, dated as of July 28, 2025, by and among Champion Homes, Inc., Champion Home Builders, Inc., Wells Fargo Bank, National Association, as administrative agent and collateral agent, and the other lenders party thereto (incorporated by reference to Exhibit 499.31 of the ~~registrants~~registrant’s ~~registration~~Current ~~statement~~Report on Form S-8-K filed on ~~September~~July 2629, ~~2018~~2025).†
10.3		~~Form~~2018 ofEquity ~~Non-Statutory~~Incentive ~~Stock~~Plan ~~Option Agreement for Employees~~ (incorporated by reference to Exhibit ~~10.~~4.3 of the ~~registrant’s~~registrants ~~Annual~~registration ~~Report~~statement on Form 10S-K8 filed on ~~May~~September 26, ~~2021~~2018).†
10.4		Form of ~~Restricted~~Non-Statutory Stock ~~Unit~~Option ~~Award~~ Agreement for ~~Non-Employee~~Employees ~~Directors.~~(incorporated by reference to Exhibit 10.64 of the registrant’s Annual Report on Form 10-K filed on May 26, 2021).†
10.5		Form of ~~Indemnification~~Restricted Stock Unit Award Agreement for Non-Employee Directors.(incorporated by reference to Exhibit 10.46 of the registrant’s Annual Report on Form 810-K filed on ~~June~~May 626, ~~2018~~2021).†
10.6		Form of ~~Non-Statutory~~Indemnification ~~Stock Option~~ Agreement ~~for Executives with written employment agreements~~ (incorporated by reference to Exhibit 10.94 of the registrant’s ~~Annual~~Current Report on Form 108-K filed on ~~May~~June 266, ~~2021~~2018).†
10.7		~~Executive~~Form ~~Employment~~of ~~Agreement,~~Non-Statutory ~~dated~~Stock ~~September~~Option 5,Agreement ~~2019~~for ~~and~~Executives ~~effective~~with ~~June~~written 1,employment ~~2019,~~agreements ~~between Mark Yost and Champion Home Builders, Inc~~ (incorporated by reference to Exhibit 10.129 of the registrant’s Annual Report on Form 10-K filed on May 26, 2021).†
10.8		Amended and Restated Executive Employment Agreement, dated as of March 20, 2023, between Laurie Hough and Champion Home Builders, Inc. (incorporated by reference to Exhibit 10.11 of the registrant’s Current Report on Form 8-K filed on March 24, 2023).†
10.9		Form of Performance Stock Unit Agreement for Executives with written employment agreements granted in fiscal 2022, 2023 and 2024 (incorporated by reference to Exhibit 10.18 of the registrant’s Annual Report on Form 10-K filed on May 26, 2021).†
10.10		Form of Performance Stock Unit Agreement for Employees granted in fiscal 2022, 2023 and 2024 (incorporated by reference to Exhibit 10.17 of the registrant's Annual Report on Form 10-K filed May 24, 2022).†
10.11		Form of Restricted Stock Unit Award Agreement for Employees granted in fiscal 2022, 2023 and 2024 (incorporated by reference to Exhibit 10.19 of the registrant's Annual Report on Form 10-K filed May 24, 2022).†
10.12		Form of Restricted Stock Unit Award Agreement for Executives with written employment agreements granted in fiscal 2022, 2023 and 2024 (incorporated by reference to Exhibit 10.20 of the registrant's Annual Report on Form 10-K filed on May 24, 2022).†
10.13		Share Subscription Agreement, dated August 14, 2023 (incorporated by reference to Exhibit 10.1 of the registrant's Current Report on Form 8-K filed on August 17, 2023).

4037

10.14		Securities Purchase Agreement, dated August 25, 2023, by and among Skyline Champion Corporation, Champion Retail Housing, Inc., Champion Home Builders, Inc., Regional Holdings Corporation, Heath Jenkins, Regional Underwriters, Inc., Dana Jenkins (for the limited purposes set forth herein), and Heath Jenkins as the Sellers’ Representative (incorporated by reference to Exhibit 2.1 of the registrant’s Current Report on Form 8-K filed on August 31, 2023).
10.15		Investor Rights Agreement, dated September 26, 2023 (incorporated by reference to Exhibit 10.1 of the registrant’s Current Report on Form 8-K filed on September 28, 2023).
10.16		Amendment No. 1 to Securities Purchase Agreement and Company Disclosure Schedule, dated as of October 13, 2023, among Skyline Champion Corporation, Champion Retail Housing, Inc., Champion Home Builders, Inc., Regional Holdings Corporation, Heath Jenkins, Regional Underwriters, Inc., Dana Jenkins (for the limited purposes set forth herein), and Heath Jenkins as the Sellers’ Representative (incorporated by reference to Exhibit 2.1 of the registrant’s Current Report on Form 8-K filed on October 19, 2023).
10.17		Restrictive Covenant Agreement, dated as of October 13, 2023, among Skyline Champion Corporation, Champion Retail Housing, Inc., Champion Home Builders, Inc. and the Restricted Parties named therein (incorporated by reference to Exhibit 10.1 of the registrant’s Current Report on Form 8-K filed on October 19, 2023).
10.18		General Release, dated as of October 13, 2023, among Regional Holdings Corporation, Regional Underwriters, Inc., Heath Jenkins and Dana Jenkins (incorporated by reference to Exhibit 10.2 of the registrant’s Current Report on Form 8-K filed on October 19, 2023).
10.19		Restricted Stock Agreement, dated as of October 13, 2023, among Skyline Champion Corporation, Dana Jenkins and Regional Holdings Corporation (incorporated by reference to Exhibit 10.3 of the registrant’s Current Report on Form 8-K filed on October 19, 2023).
10.20		Employment Agreement, dated December 13, 2024, between Champion Home Builders, Inc. and Timothy Larson. (incorporated by reference to Exhibit 10.1 of the registrant’s Quarterly Report on Form 10-Q filed on February 5, 2025).†
10.21		Separation Agreement, dated January 3, 2025, between Champion Home Builders, Inc. and Mark J.Yost (incorporated by reference to Exhibit 10.2 of the registrant’s Quarterly Report on Form 10-Q filed on February 5, 2025).
10.22		Form of Restricted Stock Unit Award Agreement for Executives with written employment agreements granted in fiscal 2025. (incorporated by reference to Exhibit 10.1 of the registrant’s Quarterly Report on Form 10-Q filed on August 7, 2024).†
10.23		Form of Restricted Stock Unit Award Agreement for Non-Employee Directors granted in fiscal 2025. (incorporated by reference to Exhibit 10.2 of the registrant’s Quarterly Report on Form 10-Q filed on August 7, 2024).†
10.24		Form of Restricted Stock Unit Award Agreement for Employees granted in fiscal 2025 (incorporated by reference to Exhibit 10.*24 of the registrant’s Annual Report on Form 10-K filed on May 27, 2025). †
10.25		Form of Performance Stock Unit Agreement for Executives with written employment agreements granted in fiscal 2025 (incorporated by reference to Exhibit 10.*25 of the registrant’s Annual Report on Form 10-K filed on May 27, 2025).†
10.26		Form of Performance Stock Unit Agreement for Employees granted in fiscal 2025 (incorporated by reference to Exhibit 10.*26 of the registrant’s Annual Report on Form 10-K filed on May 27, 2025).†
19.1		Champion Homes, Inc. Insider Trading Policy.*
10.27		Form of Restricted Stock Unit Award Agreement for Employees granted in fiscal 2026 (incorporated by reference to Exhibit 10.1 of the registrant’s Current Report Form 8-K filed on August 15, 2025). †
21.1		Subsidiaries of the Registrant.*
10.28		Transition Agreement, dated as of December 1, 2025, between Laurie Hough and Champion Home Builders, Inc. (incorporated by reference to Exhibit 10.2 of the registrant’s Quarterly Report on Form 10-Q filed on February 4, 2026).
23.1		Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.*
10.29		Executive Employment Agreement, dated as of January 12, 2026, between David McKinstray and Champion Home Builders, Inc. (incorporated by reference to Exhibit 10.1 of the registrant’s Quarterly Report on Form 10-Q filed on February 4, 2026)†
31.1		Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Rule 13a-14(a)/15d-14(a).*
10.30		Executive Employment Agreement, dated as of August 1, 2024 between Laurel Krueger and Champion Home Builders, Inc. *†
31.2		Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Rule 13a-14(a)/15d-14(a).*
10.31		Form of Restricted Stock Unit Award Agreement for Employees granted in fiscal 2026.*†
32.1		Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
10.32		Form of Performance Stock Unit Agreement for Executives with written employment agreements granted in fiscal 2026.* †
97		Skyline Champion Corporation Compensation Recoupment Policy (incorporated by reference to Exhibit 97 of the registrant’s Form 10-K filed May 29, 2024).
10.33		Form of Performance Stock Unit Agreement for Employees granted in fiscal 2026.*†
101.INS		Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document*
10.34		Form of Restricted Stock Unit Award Agreement for Executives with written employment agreements granted in fiscal 2026.* †
101.SCH		Inline XBRL Taxonomy Extension Schema Document with Embedded Linkbase Documents*
19.1		Champion Homes, Inc. Insider Trading Policy (incorporated by reference to Exhibit 19.1 of the registrants Annual Report on Form 10-K filed May 27, 2025).
104		Cover page formatted as Inline XBRL and contained in Exhibit 101


21.1		Subsidiaries of the Registrant.*
23.1		Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.*
31.1		Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Rule 13a-14(a)/15d-14(a).*
31.2		Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Rule 13a-14(a)/15d-14(a).*
32.1		Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
97		Skyline Champion Corporation Compensation Recoupment Policy (incorporated by reference to Exhibit 97 of the registrant’s Annual Report on Form 10-K filed on May 29, 2024).
101.INS		Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document*
101.SCH		Inline XBRL Taxonomy Extension Schema Document with Embedded Linkbase Documents*
104		Cover page formatted as Inline XBRL and contained in Exhibit 101


*	Filed herewith.
†	Management contract or compensatory plan, contract or arrangement.

ITEM 16. FORM 10-K SUMMARY

Not applicable

4139

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

		CHAMPION HOMES, INC.
Date:	May 2726, ~~2025~~2026	/s/ Tim Larson
		Tim Larson

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Tim Larson	President, Chief Executive Officer and Director	May 2726, ~~2025~~2026
Tim Larson	(Principal Executive Officer)
/s/ Laurie Hough	Executive Vice President, Chief Financial Officer, and Treasurer	May 27, 2025
/s/ David McKinstray	Executive Vice President, Chief Financial Officer, and Treasurer	May 26, 2026
Laurie Hough	(Principal Financial Officer)
David McKinstray	(Principal Financial Officer)
/s/ Timothy Burkhardt	Vice President and Controller	May 27, 2025
/s/ Timothy Kingston	Chief Accounting Officer	May 26, 2026
Timothy Burkhardt	(Principal Accounting Officer)
Timothy Kingston	(Principal Accounting Officer)
/s/ Michael Berman	Director	May 2726, ~~2025~~2026
Michael Berman
/s/ Eddie Capel	Director	May 27, 2025
/s/ Mary Fedewa	Director	May 26, 2026
Eddie Capel
/s/ Mary Fedewa	Director	May 27, 2025
Mary Fedewa
/s/ Erin Mulligan Helgren	Director	May 2726, ~~2025~~2026
Erin Mulligan Helgren
/s/ Tawn Kelley	Director	May 2726, ~~2025~~2026
Tawn Kelley
/s/ Nikul Patel	Director	May 2726, ~~2025~~2026
Nikul Patel
/s/ Gary E. Robinette	Director	May 2726, ~~2025~~2026
Gary E. Robinette

4240

CHAMPION HOMES, INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Reports of Ernst & Young LLP, Independent Registered Public Accounting Firm (PCAOB ID: 0042)	F-2
Consolidated Balance Sheets as of March 29, 2025 and March 30, 2024	F-6
Consolidated Balance Sheets as of March 28, 2026 and March 29, 2025	F-6
Consolidated Income Statements for the Fiscal Years Ended March 29, 2025, March 30, 2024, and April 1, 2023	F-7
Consolidated Income Statements for the Fiscal Years Ended March 28, 2026, March 29, 2025, and March 30, 2024	F-7
Consolidated Statements of Comprehensive Income for the Fiscal Years Ended March 29, 2025, March 30, 2024, and April 1, 2023	F-8
Consolidated Statements of Comprehensive Income for the Fiscal Years Ended March 28, 2026, March 29, 2025, and March 30, 2024	F-8
Consolidated Statements of Cash Flows for the Fiscal Years Ended March 29, 2025, March 30, 2024, and April 1, 2023	F-9
Consolidated Statements of Cash Flows for the Fiscal Years Ended March 28, 2026, March 29, 2025, and March 30, 2024	F-9
Consolidated Statements of Equity for the Fiscal Years Ended March 29, 2025, March 30, 2024, and April 1, 2023	F-10
Consolidated Statements of Equity for the Fiscal Years Ended March 28, 2026, March 29, 2025, and March 30, 2024	F-10
Notes to Consolidated Financial Statements	F-11
Schedule II – Valuation and Qualifying Accounts	F-30

F-1

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of

Champion Homes, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Champion Homes, Inc. (the Company) as of March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, the related consolidated income statements, and consolidated statements of comprehensive income, equity and cash flows for each of the fiscal years ~~in the periods~~ ended March 2928, ~~2025~~2026, March 3029, ~~2024~~2025, and ~~April~~March 130, ~~2023,~~2024 and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, and the results of its operations and its cash flows for each of the fiscal years ended March 2928, ~~2025~~2026, March 3029, ~~2024~~2025, and ~~April~~March 130, ~~2023~~2024, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 2928, ~~2025~~2026, based on criteria established in Internal Control-—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated May 2726, ~~2025~~2026, expressed an ~~adverse~~unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company’'s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the ~~account~~accounts or ~~disclosure~~disclosures to which it relates.

Self-Insured Risks Description of the Matter The Company’s maintains reserves for self-‑insured risks, of which $3435.16 million at March 2928, ~~2025~~2026 relates to estimated costs for planned remediation efforts associated with ~~damages related to~~ water intrusion damages in previously manufactured homes. As described in Note 17 to the consolidated financial statements, the Company’s liability for costs associated with the planned remediation efforts is based on an ~~actuarially~~actuarial ~~determined~~calculation ~~range~~utilizing the Company’s completed inspection, repair and settlement activity. The actuarial analyses that ~~considered~~determine the estimated costs for planned remediation efforts consider a variety of factors, ~~including~~which principally include the ~~number~~population of affected homes ~~manufactured~~ with exposure to the defect, the number of affected homes that will be required to be remediated, and the estimated repair costs.

F-2

Auditing the Company’s accounting for its estimated costs for planned remediation efforts is complex and requires the involvement of actuarial specialists due to the measurement uncertainty associated with the estimate. The Company uses a Monte Carlo simulation to measure the estimated costs for planned remediation efforts,. ~~and~~The ~~the~~ significant assumptions used in ~~estimating~~this ~~the~~simulation ~~range~~include ~~of estimated costs for planned remediation included~~ the ~~number~~population of affected homes that will be required to be remediated and the estimated repair costs for ~~planned~~ remediation efforts. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s controls that address the risks of material misstatement ~~relating~~related to the measurement and valuation of the estimated ~~range of~~ costs for planned remediation efforts. For example, we tested controls over management’s review of the significant actuarial assumptions ~~used~~and in the ~~determination~~data ofinputs ~~the~~used ~~range,~~by management’s ~~review~~when ofestimating the ~~appropriateness~~cost ~~of the calculation, and controls pertaining to the completeness and accuracy of the number of homes manufactured with exposure to the defect underlying the estimated costs~~ for planned remediation efforts.ToOur ~~evaluate the estimated liability for costs for planned remediation efforts associated with water intrusion complaints, we performed~~ audit procedures ~~that~~ included, among others, testing the completeness and accuracy of the ~~underlying data supporting the~~ number of affected homes with exposure to water intrusion damages, the number of affected homes that will be required to be remediated, and the estimated repair costs per home used in the actuarial analysis. Furthermore, we involved our actuarial specialists to assist in our evaluation of methodologies and assumptions ~~applied~~used by management to estimate the recorded ~~liability~~reserve. We compared the Company’s reserve to a range developed by our actuarial specialists based on independently selected assumptions.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2006.

Detroit, Michigan

May 2726, ~~2025~~2026

F-3

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of ~~Champion Homes, Inc.~~

Champion Homes, Inc.

Opinion on Internal Control Over Financial Reporting

We have audited Champion Homes, Inc. internal control over financial reporting as of March 2928, ~~2025~~2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, ~~because of the effect of the material weakness described below on the achievement of the objectives of the control criteria,~~ Champion Homes, Inc. (the Company) ~~has~~maintained, ~~not~~in ~~maintained~~all material respects, effective internal control over financial reporting as of March 2928, ~~2025~~2026, based on the COSO criteria.

AAs ~~material~~indicated ~~weakness~~in isthe aaccompanying ~~deficiency~~Management’s Report on Internal Control over Financial Reporting, ormanagement’s ~~combination~~assessment of ~~deficiencies,~~and inconclusion on the effectiveness of internal control over financial reporting, ~~such~~did ~~that~~not ~~there~~include isthe ainternal ~~reasonable~~controls ~~possibility~~of ~~that~~Iseman aHomes, ~~material~~Inc., ~~misstatement~~which ofis ~~the~~included ~~company’s~~in ~~annual~~the or2026 ~~interim~~consolidated financial statements ~~will~~of ~~not~~the beCompany ~~prevented~~and orconstituted ~~detected~~2% onof atotal ~~timely~~assets ~~basis.~~as ~~The~~of ~~following~~March ~~material~~28, ~~weakness~~2026 ~~has~~and ~~been~~2% ~~identified~~of ~~and~~net ~~included~~sales infor ~~management’s~~the ~~assessment~~year then ended. ~~Management~~ ~~has~~Our ~~identified~~audit aof ~~material~~internal ~~weakness~~control inover ~~controls~~financial ~~related~~reporting toof the ~~Regional~~Company ~~Retail~~also ~~business~~did ~~unit~~not ~~(Regional)~~include an evaluation of the internal control over financial reporting of Iseman Homes, Inc.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, the related consolidated income statements, and consolidated statements of comprehensive income, equity and cash flows for each of the fiscal years ~~in the periods~~ ended March 2928, ~~2025~~2026, March 3029, ~~2024~~2025, and ~~April~~March 130, ~~2023~~2024, and the related notes and financial statement schedule listed in the Index at Item 15(a). ~~This material weakness was considered in determining the nature, timing~~ and ~~extent of audit tests applied in~~ our ~~audit of the 2025 consolidated financial statements, and this~~ report ~~does not affect our report~~ dated May 2726, ~~2025,~~2026 ~~which~~ expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

F-4

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Detroit, Michigan

May 2726, ~~2025~~2026

F-5

Champion Homes, Inc.

Consolidated Balance Sheets

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

	March 29,2025			March 30,2024
	March 28,2026			March 29,2025
ASSETS
Current assets:
Cash and cash equivalents	$	~~610~~638,~~338~~259		$	~~495~~610,~~063~~338
Trade accounts receivable, net		8488,~~103~~810			6484,~~632~~103
Inventories, net		~~360~~358,~~629~~313			~~318~~360,~~737~~629
Other current assets		3142,~~428~~836			3931,~~870~~428
Total current assets		1,~~086~~128,~~498~~218			~~918~~1,~~302~~086,498
Long-term assets:
Property, plant, and equipment, net		~~307~~314,~~140~~197			~~290~~307,~~930~~140
Goodwill		~~357~~365,~~973~~151			357,973
Amortizable intangible assets, net		6455,~~712~~815			7664,~~369~~712
Deferred tax assets		3723,~~998~~456			2637,~~878~~998
Other noncurrent assets		~~256~~244,~~087~~709			~~252~~256,~~889~~087
Total assets	$	2,~~110~~131,~~408~~546		$	12,~~923~~110,~~341~~408
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Floor plan payable	$	~~106~~94,~~091~~649		$	91106,~~286~~091
Accounts payable		6570,~~136~~546			5065,~~820~~136
Other current liabilities		~~280~~290,~~081~~147			~~247~~280,~~495~~081
Total current liabilities		~~451~~455,~~308~~342			~~389~~451,~~601~~308
Long-term liabilities:
Long-term debt		2414,~~773~~440			24,~~669~~773
Deferred tax liabilities		78,~~350~~445			67,~~905~~350
Other liabilities		8280,~~539~~382			7982,~~796~~539
Total long-term liabilities		~~114~~103,~~662~~267			~~111~~114,~~370~~662
Stockholders' Equity:
Common stock, $0.0277 par value, 115,000 shares authorized, 57,109 and 57,815 shares issued as of March 29, 2025 and March 30, 2024, respectively.		1,584			1,605
Common stock, $0.0277 par value, 115,000 shares authorized, 54,841 and 57,109 shares issued as of March 28, 2026 and March 29, 2025, respectively.		1,521			1,584
Additional paid-in capital		~~586~~611,~~941~~934			~~568~~586,~~203~~941
Retained earnings		975,~~981~~947			~~866~~975,~~485~~981
Accumulated other comprehensive loss		(2016,~~068~~465	)		(1320,~~923~~068	)
Total stockholders’ equity		1,~~544~~572,~~438~~937			1,~~422~~544,~~370~~438
Total liabilities and stockholders' equity	$	2,~~110~~131,~~408~~546		$	12,~~923~~110,~~341~~408

See accompanying Notes to Consolidated Financial Statements.

F-6

Champion Homes, Inc.

Consolidated Income Statements

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

Year Ended

March 29,2025

March 30,2024

April 1, 2023

March 28,2026

March 29,2025

March 30,2024

Net sales

2,~~483~~663,~~448~~639

2,~~024~~483,~~823~~448

2,~~606~~024,~~560~~823

Cost of sales

1,~~819~~959,~~425~~320

1,~~539~~819,~~029~~425

1,~~787~~539,~~879~~029

Gross profit

~~664~~704,~~023~~319

~~485~~664,~~794~~023

~~818~~485,~~681~~794

Selling, general, and administrative expenses

~~426~~452,~~991~~554

~~310~~426,~~589~~991

~~300~~310,~~396~~589

Operating income

~~237~~251,~~032~~765

~~175~~237,~~205~~032

~~518~~175,~~285~~205

Interest expense

87,~~468~~548

48,~~613~~468

34,~~276~~613

Interest (income)

(2523,~~442~~992

)

(3225,~~867~~442

)

(1832,~~253~~867

)

Other (income) expense

(32,362

)

2(3,~~604~~362

)

~~(634~~2,604

)

Income before income taxes

~~257~~270,~~368~~571

~~200~~257,~~855~~368

~~533~~200,~~896~~855

Income tax expense

5356,~~724~~757

4753,~~136~~724

~~132~~47,~~094~~136

Net income before equity in net loss of affiliates

203,644

153,719

401,802

Net income before equity in net (income) loss of affiliates

213,814

203,644

153,719

Equity in net loss of affiliates

2,004

7,023

—

Equity in net (income) loss of affiliates

(382

)

2,004

7,023

Net income

~~201~~214,~~640~~196

~~146~~201,~~696~~640

~~401~~146,~~802~~696

Net income attributable to non-controlling interest

37,~~227~~298

—3,227

—

Net income attributable to Champion Homes, Inc.

~~198~~206,~~413~~898

~~146~~198,~~696~~413

~~401~~146,~~802~~696

Net income per share:

Basic

3.4568

23.5545

72.0555

Diluted

3.4266

23.5342

72.0053

See accompanying Notes to Consolidated Financial Statements.

F-7

Champion Homes, Inc.

Consolidated Statements of Comprehensive Income

(Dollars in thousands)

	Year Ended
	March 29,2025			March 30,2024			April 1, 2023
	March 28,2026			March 29,2025			March 30,2024
Net income	$	~~201~~214,~~640~~196		$	~~146~~201,~~696~~640		$	~~401~~146,~~802~~696
Other comprehensive (loss) income, net of tax:
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		(63,~~145~~603	)		(~~188~~6,145	)		(~~6,527~~188	)
Total other comprehensive (loss)		(6,145	)		(188	)		(6,527	)
Total other comprehensive income (loss)		3,603			(6,145	)		(188	)
Total comprehensive income before non-controlling interests		~~195~~217,~~495~~799			~~146~~195,~~508~~495			~~395~~146,~~275~~508
Comprehensive (income) attributable to non-controlling interests		(3,227	)		—			—
Comprehensive (loss) income attributable to non-controlling interests		7,298			3,227			—
Comprehensive income attributable to Champion Homes, Inc.	$	~~192~~210,~~268~~501		$	~~146~~192,~~508~~268		$	~~395~~146,~~275~~508

See accompanying Notes to Consolidated Financial Statements.

F-8

Champion Homes, Inc.

Consolidated Statements of Cash Flows

(Dollars in thousands)

	Year Ended
	March 29,2025			March 30,2024			April 1, 2023
	March 28,2026			March 29,2025			March 30,2024
Cash flows from operating activities
Net income	$	~~201~~214,~~640~~196		$	~~146~~201,~~696~~640		$	~~401~~146,~~802~~696
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4147,~~910~~789			3441,910			2634,~~726~~910
Equity-based compensation		1820,~~269~~889			1918,~~560~~269			1419,~~160~~560
Deferred taxes		~~(10~~13,~~585~~899	)		(610,~~448~~585	)		1(6,~~127~~448	)
Amortization of deferred financing fees		~~414~~521			~~348~~414			~~357~~348
Loss (gain) on disposal of property, plant, and equipment		35			205			(129	)
(Gain) loss on disposal of property, plant, and equipment		(2,583	)		35			205
Foreign currency transaction loss		1,305			297			828
Foreign currency transaction (gain) loss		(488	)		1,305			297
Equity in net loss of affiliates		2,004			7,023			—
Equity in net (income) loss of affiliates		(382	)		2,004			7,023
Dividends from equity method investment		~~1,242~~956			—1,242			—
Change in fair value of contingent consideration		84,~~620~~497			—8,620			—
Change in assets and liabilities, net of businesses acquired:
Accounts receivable		(194,~~507~~181	)		18(19,~~910~~507	)		2318,~~090~~910
Floor plan receivables		(229,~~601~~008	)		(1522,~~391~~601	)		—(15,391	)
Inventories		~~(41~~20,~~961~~126	)		22(41,~~424~~961	)		4922,~~196~~424
Other assets		155,~~594~~797			~~(14~~15,~~579~~594	)		(1114,~~930~~579	)
Accounts payable		144,~~424~~291			(714,~~950~~424	)		(497,~~082~~950	)
Accrued expenses and other current liabilities		30(12,~~054~~451	)		1630,~~699~~054			~~(39~~16,~~920~~699	)
Net cash provided by operating activities		~~240~~303,~~857~~868			~~222~~240,~~704~~857			~~416~~222,~~225~~704
Cash flows from investing activities
Additions to property, plant, and equipment		(5034,~~532~~119	)		(5250,~~915~~532	)		(52,~~244~~915	)
Cash paid for acquisitions, net of cash acquired		—(27,336	)		~~(283,189~~—	)		(6283,~~810~~189	)
Cash paid for equity method investment		—(895	)		~~(4,100~~—	)		(24,~~500~~100	)
Cash paid for investment in ECN common stock		—			~~(78,858~~—	)		—(78,858	)
Cash paid for investment in ECN preferred stock		—			~~(64,520~~—	)		—(64,520	)
Investment in floor plan loans		—			~~(18,466~~—	)		—(18,466	)
Proceeds from floor plan loans		~~2,745~~—			152,~~721~~745			—15,721
Proceeds from disposal of property, plant, and equipment		15,~~632~~154			~~649~~1,632			~~375~~649
Net cash used in investing activities		(46,155	)		(485,678	)		(61,179	)
Net cash (used in) investing activities		(57,196	)		(46,155	)		(485,678	)
Cash flows from financing activities
Changes in floor plan financing, net		14(11,~~805~~588	)		1514,~~368~~805			~~(35~~15,~~460~~368	)
Payments on long term debt		—			(77	)		—
Payments on long term-debt		(1,096	)		—			(77	)
Payments for repurchase of common stock		(79,999	)		—			—
Payments for deferred financing fees		(1,048	)		—			—
Stock option exercises		473			1,456			2,473
Distributions to noncontrolling interest		(7,298	)		—			—
Tax payments for equity-based compensation		(8,317	)		(5,883	)		(4,032	)
Payments for repurchase of common stock		(200,000	)		(79,999	)		—
Net cash (used in) provided by financing activities		(73,038	)		10,864			(37,019	)
Stock option exercises		4,111			473			1,456
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(6,389	)		(280	)		(5,987	)
Tax payments for equity-based compensation		(5,301	)		(8,317	)		(5,883	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		115,275			(252,390	)		312,040
Net cash (used in) provided by financing activities		(222,220	)		(73,038	)		10,864
Cash, cash equivalents, and restricted cash at beginning of period		495,063			747,453			435,413
Effect of exchange rate changes on cash and cash equivalents		3,469			(6,389	)		(280	)
Cash, cash equivalents, and restricted cash at end of period	$	610,338		$	495,063		$	747,453
Net increase (decrease) in cash and cash equivalents		27,921			115,275			(252,390	)
Cash and cash equivalents at beginning of period		610,338			495,063			747,453
Cash and cash equivalents at end of period	$	638,259		$	610,338		$	495,063
Supplemental disclosures of cash flow information
Cash paid for interest	$	8,~~391~~932		$	38,~~875~~391		$	23,~~938~~875
Cash paid for income taxes	$	5938,~~242~~459		$	59,~~056~~242		$	~~143~~59,~~600~~056

See accompanying Notes to Consolidated Financial Statements.

F-9

Champion Homes, Inc.

Consolidated Statements of Equity

(Dollars and shares in thousands)

	Common Stock
	Shares			Amount			Additional Paid in Capital		Retained Earnings			Accumulated Other Comprehensive Loss			Non-ControllingInterest			Total
Balance at April 2, 2022		56,838		$	1,573		$	502,846	$	327,902		$	(7,208	)		—		$	825,113
Net income		—			—			—		401,802			—			—			401,802
Equity-based compensation		—			—			14,160		—			—			—			14,160
Net common stock issued under equity-based compensation plans		270			12			2,473		(4,032	)		—			—			(1,547	)
Foreign currency translation adjustments		—			—			—		—			(6,527	)		—			(6,527	)
Balance at April 1, 2023		57,108		$	1,585		$	519,479	$	725,672		$	(13,735	)		—		$	1,233,001
Net income		—			—			—		146,696			—			—			146,696
Equity-based compensation		—			—			19,560		—			—			—			19,560
Net common stock issued under equity-based compensation plans		252			7			1,325		(5,883	)		—			—			(4,551	)
Common stock issued for business acquisition		455			13			27,839		—			—			—			27,852
Foreign currency translation adjustments		—			—			—		—			(188	)		—			(188	)
Balance at March 30, 2024		57,815		$	1,605		$	568,203	$	866,485		$	(13,923	)	$	—		$	1,422,370
Net income		—			—			—		198,413			—			3,227			201,640
Net income attributable to Champion Homes, Inc.		—			—			—		198,413			—			3,227			201,640
Equity-based compensation		—			—			18,269		—			—			—			18,269
Net common stock issued under equity-based compensation plans		207			6			469		(8,317	)		—			—			(7,842	)
Common stock repurchases		(913	)		(27	)		—		(80,600	)		—			—			(80,627	)
Distributions to non-controlling interest		—			—			—		—			—			(3,227	)		(3,227	)
Foreign currency translation adjustments		—			—			—		—			(6,145	)		—			(6,145	)
Balance at March 29, 2025		57,109		$	1,584		$	586,941	$	975,981		$	(20,068	)	$	—		$	1,544,438
Net income attributable to Champion Homes, Inc.		—			—			—		206,898			—			7,298			214,196
Equity-based compensation		—			—			20,889		—			—			—			20,889
Net common stock issued under equity-based compensation plans		295			8			4,104		(5,301	)		—			—			(1,189	)
Common stock repurchases		(2,563	)		(71	)		—		(201,631	)		—			—			(201,702	)
Distributions to non-controlling interest		—			—			—		—			—			(7,298	)		(7,298	)
Foreign currency translation adjustments		—			—			—		—			3,603			—			3,603
Balance at March 28, 2026		54,841		$	1,521		$	611,934	$	975,947		$	(16,465	)		—		$	1,572,937

Components of accumulated other comprehensive loss at March 2928, ~~2025~~2026, March 3029, ~~2024~~2025, and ~~April~~March 130, ~~2023~~2024 consisted solely of foreign currency translation adjustments.

See accompanying Notes to Consolidated Financial Statements.

F-10

Champion Homes, Inc.

Notes to Consolidated Financial Statements

Summary of Significant Accounting Policies

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 March 2928, ~~2025~~2026, the Company operated 4342 manufacturing facilities throughout the United States (“U.S.”) and 54 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 7284 sales centers that sell manufactured houses to consumers throughout 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.

Principles of Consolidation: The consolidated financial statements include the accounts of the Company, ~~and~~ its wholly owned subsidiaries, and those of its subsidiaries for which it is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.

Accounting Estimates: The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“US. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes thereto. Estimates made in preparing the accompanying consolidated financial statements include, but are not limited to, business combinations, reserves for obsolete inventory, accrued warranty costs, useful lives of fixed and intangible assets, asset impairment analyses, insurance reserves, legal reserves, repurchase reserves, share-based compensation, deferred tax valuation allowances, and estimated liability for product defect claims. Actual results could differ from those estimates, making it reasonably possible that a change in these estimates could occur within one year.

Fiscal Year: The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest March 31. Fiscal ~~2025~~2026, ~~2024~~2025 and ~~2023~~2024 include the 52-weeks ended March 2928, ~~2025~~2026, March 3029, ~~2024~~2025 and ~~April~~March 130, ~~2023~~2024, respectively.

Revenue Recognition: Revenue is recognized when performance obligations under the terms of a contract are satisfied which generally occurs at a point in time through the transfer of control of promised goods to the Company's customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance. Sales revenue is reported net of applicable sales tax. See Note 10, Revenue Recognition, for additional information.

Cost of Sales: Cost of sales includes manufacturing costs such as: (i) materials; (ii) compensation and employee benefits for direct and indirect labor; (iii) fixed and variable manufacturing overhead costs; (iv) warranty costs; (v) inbound delivery costs; and (vi) depreciation of buildings and equipment. Manufacturing overhead costs include costs such as: (i) utilities; (ii) workers’ compensation and product liability self-insurance; (iii) real and personal property taxes on buildings and equipment; (iv) manufacturing supplies; (v) repairs and maintenance; and (vi) rents and leases for buildings and equipment. Cost of sales also includes certain post-manufacturing costs, to the extent such costs are the Company’s responsibility. Post-manufacturing costs may include delivery and setup, foundations, craning, roofing, exterior cladding, interior finishing, utility connections and other miscellaneous site costs. Generally, subcontractors are engaged to perform post-manufacturing activities.

Selling, General, and Administrative Expenses: Selling, general, and administrative expenses (“SG&A”) include costs such as (i) salaries, wages, incentives and employee benefits for executive, management, sales, engineering, accounting, information technology (“IT”) and administrative employees; (ii) sales commissions; (iii) marketing and advertising costs; (iv) legal and professional fees; (v) depreciation, rents and leases for administrative facilities, office equipment, IT equipment and computer software; and (vi) postage, office supplies, travel and telephone expenses.

Advertising Costs and Delivery Costs and Revenue: Advertising costs are expensed as incurred and are included in selling, general, and administrative expenses. Total advertising expense was approximately $912.75 million, $6.9.7 million, and $3.6.9 million for fiscal ~~2025~~2026, ~~2024~~2025, and ~~2023~~2024, respectively. Delivery costs are included in cost of sales and delivery revenue is included in net sales.

Foreign Currency: Translation adjustments of the Company’s international subsidiaries for which the local currency is the functional currency are reflected in the accompanying consolidated balance sheets as a component of accumulated other comprehensive income or loss.

Fair Value: The Company estimates the fair value of its financial instruments in accordance with ASC 820, Fair Value Measurement, which establishes a fair value hierarchy and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As such, the fair value of financial instruments is estimated using available market information and other valuation methods.

F-11

The Company groups assets and liabilities at fair value in three levels, based on the inputs and assumptions used to determine fair value. These levels are:

•

Level 1—Fair value determined based on quoted prices in active markets for identical assets and liabilities.

•

Level 2—Fair value determined using significant observable inputs, generally either quoted prices in active markets for similar assets or liabilities or quoted prices in markets that are not active.

•

Level 3—Fair value determined using significant observable inputs, such as pricing models, discounted cash flows, or similar techniques.

The Company records accounts receivable, accounts payable and other current liabilities at cost. The carrying value of these instruments approximate their fair value due to their short-term maturities.

Cash and Cash Equivalents: Cash and cash equivalents include highly liquid investments that have original maturities less than 90 days at the time of their purchase. These investments are carried at cost, which approximates market value because of their short maturities.

Allowance for Credit Losses: The Company extends credit terms on a customer-by-customer basis in the normal course of business and, as such, trade accounts receivable are subject to customary credit risk. 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. At March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, accounts receivable were reflected net of reserves of $13.3 million and $1.93 million, respectively.

Floor Plan Receivables: 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 $3847.1 million and $1838.1 million was outstanding at March 2928, ~~2025~~2026 and March 3029, ~~2024~~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 Consolidated Balance Sheets.

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 March 2928, ~~2025~~2026 or March 3029, ~~2024~~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 March 2928, ~~2025~~2026, there were no floor plan receivables on nonaccrual status and the weighted-average age of the floor plan receivables was ~~six~~eleven months.

Interest income from floor plan receivables is recognized on an accrual basis and is included in interest income in the accompanying Consolidated Income Statements. Interest income from floor plan receivables for the year ended March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, was $2.49 million and $12.34 million, respectively.

Inventories: Inventories are stated at the lower of cost or net realizable value, with cost determined under the first-in, first-out method. Capitalized manufacturing costs include the cost of materials, labor and manufacturing overhead. Retail inventories of new manufactured homes built by the Company are valued at manufacturing cost, including materials, labor and manufacturing overhead, or net purchase price if acquired from unaffiliated third parties.

Property, Plant, and Equipment: Property, plant, and equipment are stated at acquisition date cost or fair value when acquired in a business combination. Depreciation is provided principally on the straight-line method, 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.

At March 2928, ~~2025~~2026, the Company owned or leased six idle manufacturing facilities. The net book value of idle facilities was $67.80 million at March 2928, ~~2025~~2026. These properties are accounted for as long-lived assets to be held and used.

F-12

It is the Company’s policy to evaluate the recoverability of property, plant, and equipment whenever events and changes in circumstances indicate that the carrying amount of assets may not be recoverable. If impairment indicators exist, the Company performs the required impairment analysis by comparing the undiscounted cash flows expected to be generated from the long-lived assets to the related net book values. If the net book value exceeds the undiscounted cash flows, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived assets. Fair value is estimated based upon a combination of market and cost approaches, as appropriate. No impairment losses were recorded in fiscal ~~2025~~2026, ~~2024~~2025, or ~~2023~~2024.

Leases: The Company has operating leases for land, manufacturing and office facilities, and equipment. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company's leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. The Company has elected not to recognize any right of use asset or lease liability for leases with an initial term of 12 months or less and has elected not to separate lease and non-lease components.

The discount rate used to measure a lease obligation should be the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments.

Goodwill: The Company tests goodwill for impairment in accordance with ASC 350. Goodwill is not amortized but is tested for impairment on at least an annual basis. Impairment testing is required more often than annually if an event or circumstance indicates that an impairment is more likely than not to have occurred. In conducting its annual impairment testing, the Company may first perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If not, no further goodwill impairment testing is required. If it is more likely than not that a reporting unit’s fair value is less than its carrying amount, or if the Company elects not to perform a qualitative assessment of a reporting unit, the Company then compares the fair value of the reporting unit to the related net book value. If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized.

In fiscal ~~2025~~2026, the Company performed a qualitative ~~assessments~~assessment of its reporting units. The annual assessment was completed on the first day of fiscal March. The assessment indicated that it was more likely than not that the fair value of each of the reporting units exceeded its respective carrying value. The Company does not believe that any reporting units are at risk for impairment.

Business combinations: The Company accounts for its business combinations in accordance with the accounting guidance in ASC 805, Business Combinations. The purchase price of an acquired business is allocated to its identifiable assets and liabilities based on estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. Determining the fair values of assets acquired and liabilities assumed requires management’s judgment, the utilization of independent appraisal firms and often involves the use of significant estimates and assumptions with respect to the timing and amount of future cash flows, market rate assumptions, actuarial assumptions, and appropriate discount rates, among other items.

Amortizable Intangible Assets: Amortizable intangible assets consist primarily of fair values assigned to customer relationships and trade names. Trade names were valued based upon the relief-from-royalty method and customer relationships were valued based upon the multi-period excess earnings method. Amortization is provided over the useful lives of the intangible assets, generally up to ten years, using the straight-line method. The recoverability of amortizable intangible assets is evaluated whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recovered, in accordance with the recognition and measurement provisions of ASC 360.

Unconsolidated affiliates: The Company analyzes its investments in non-wholly owned subsidiaries to determine whether they are unconsolidated affiliates, consolidated affiliates, or variable interest entities (“VIEs”) and, if so, whether the Company is the primary beneficiary in accordance with ASC 810 Consolidation. If the Company is determined to be the primary beneficiary, it must consolidate the VIE. In determining whether it is the primary beneficiary, the Company considers whether it has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance. The Company also considers whether it has the obligation to absorb losses of, or the right to receive benefits from, the VIE. At March 2928, ~~2025~~2026, the Company had two investments in non-wholly owned subsidiaries which were determined to be VIEs. The Company uses the equity method to account for its investment in a variable interest entity made in fiscal 2023 in which the Company is not deemed to be the primary beneficiary. The Company's net investment in this unconsolidated affiliate was $5.0 million ~~and $6.6 million~~ at March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, respectively. The Company consolidates the results of Champion Financing, LLC ("Champion Financing"), a ~~variable~~VIE ~~interest entity~~ established in fiscal ~~2024~~2025 for which the Company is deemed to be the primary beneficiary. The consolidated net assets of Champion Financing were not material in fiscal ~~2025~~2026 or ~~2024~~2025.

F-13

Warranty Obligations: The Company’s manufactured housing operations generally provides the homebuyer with an assurance warranty from the date of respective purchase. Estimated warranty costs are accrued as cost of sales at the time of sale. Warranty provisions and reserves are based on estimates of the amounts necessary to settle existing and future claims on homes sold by the manufacturing segment as of the balance sheet date. Factors used to calculate the warranty obligation include the estimated number of homes still under warranty, the timing of work order completion, and the historical average costs incurred to service a home.

Dealer Volume Rebates: The Company’s manufacturing operations sponsors volume rebate programs under which sales to retailers and builder/developers can qualify for cash rebates generally based on the level of sales attained during a twelve-month period. Volume rebates are accrued at the time of sale and are recorded as a reduction of net sales.

Repurchase Agreements: The Company is contingently liable under terms of repurchase agreements with lending institutions that provide wholesale floor plan financing to retailers. These arrangements, which are customary in the industry, provide for the repurchase of products sold to retailers in the event of default by the retailer on their agreement to pay the financial institution. The risk of loss from these agreements is spread over numerous retailers. The repurchase price is generally determined by the original sales price of the product less contractually defined curtailment payments. The Company accounts for the guarantee under its repurchase agreements with the retailers’ financing institutions by estimating and deferring a portion of the related product sale that represents the estimated fair value of the guarantee.

Accrued Self-Insurance: The Company is self-insured for a significant portion of its workers’ compensation, general and product liability, auto liability, health, and property insurance. Insurance coverage is maintained for catastrophic exposures and those risks required to be insured by law. Estimated self-insurance costs are accrued for incurred claims and estimated claims incurred but not yet reported. At March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, the Company had gross reserves for estimated losses related to workers’ compensation obligations of $2325.60 million and $2123.46 million, respectively. The Company also recorded expected reimbursements for the portion of those losses above respective program limits of $10.0 and $10.4 million at March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, respectively.

Equity-Based Compensation: Stock-based compensation is measured at the grant date based on the fair value of the award and is generally recognized as expense ratably on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. Forfeitures are recognized in the period in which they occur.

Comprehensive Income and Loss: Components of comprehensive income and loss are changes in equity other than those resulting from investments by owners and distributions to owners. The aggregate amount of such changes to equity that have not yet been recognized in net income or loss are reported in the equity section of the accompanying consolidated balance sheets as accumulated other comprehensive income or loss, net of tax.

Income Taxes: The provision for income taxes is calculated using the asset and liability method, under which deferred tax assets and liabilities are determined based on temporary differences between the financial statement amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment is required.

Recently Issued Accounting Pronouncements Pending Adoption: In ~~December~~November ~~2023~~2024, the FASB issued ASU ~~2023~~2024-0903, "Income ~~Taxes~~Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (~~Topic~~Subtopic ~~740~~220-40): ~~Improvements~~Disaggregation toof Income ~~Tax~~Statement ~~Disclosures~~Expenses", which expands disclosures inabout ana public entity’'s ~~income~~specific ~~tax~~types ~~rate~~of ~~reconciliation~~expenses ~~table~~included ~~and~~in ~~regarding~~the ~~cash~~expense ~~taxes~~captions ~~paid~~presented ~~both~~on inthe face of the ~~U.S.~~income ~~and~~statement ~~foreign~~as ~~jurisdictions~~well as disclosures about selling expenses. The update will be effective for annual periods beginning after December 15, ~~2024~~2026 (fiscal ~~2026~~2028). We are assessing the effect of this update on our consolidated financial statement disclosures.

In ~~November~~September ~~2024~~2025, the FASB issued ASU ~~2024~~2025-0306, "~~Income~~Targeted ~~Statement~~Improvements -to ~~Reporting~~the ~~Comprehensive~~Accounting ~~Income~~for Internal-Use ~~Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses~~Software", which ~~expands~~amends ~~disclosures~~certain ~~about~~aspects ~~a public entity's specific types~~ of ~~expenses~~the ~~included~~accounting infor the ~~expense~~recognition ~~captions~~and ~~presented~~disclosure ~~on the face~~ of ~~the~~capitalized ~~income~~software ~~statement~~costs asunder ~~well~~ASC ~~as disclosures about selling expenses~~350-40. The update will be effective for annual periods beginning after December 15, ~~2026~~2027 (fiscal ~~2028~~2029). We are assessing the effect of this update on our consolidated financial ~~statement disclosures~~statements.

F-14

Business Combinations

~~Regional~~Iseman Homes, Inc. Acquisition

On ~~October~~May 1330, ~~2023~~2025, the Company acquired all of the outstanding equity interests in ~~Regional~~Iseman ~~Enterprises~~Homes, ~~LLC~~Inc. ~~and related companies~~ (~~collectively,~~ "~~Regional~~Iseman Homes") for total purchase consideration of $~~316~~26.98 million, net of ~~assumed indebtedness and~~ working capital adjustments. The purchase consideration consisted of net cash paid of $~~279~~24.56 million, ~~the~~contingent ~~issuance~~consideration ofwith ~~455,098~~an ~~shares~~estimated offair ~~common~~value ~~stock~~of ~~equal to approximately~~ $270.92 million, and ~~contingent~~remaining consideration ~~with~~payable ~~an estimated fair value~~ of $52.90 million, payable twelve months after the closing date. The contingent consideration is related to an earnout provision in the event ~~certain~~future ~~conditions~~performance metrics are ~~met per the terms of the purchase agreement and related documents~~achieved, with a maximum earnout amount of $251.05 million. The ~~initial~~liabilities ~~fair~~for ~~value of~~ the earnout ~~was established using a Monte Carlo simulation method~~ and ~~the~~remaining ~~resulting~~consideration ~~liability~~payable isare recorded in other ~~Liabilities~~current inliabilities ~~the accompanying consolidated balance sheets. In fiscal 2025, the method and timing of measuring the earnout was amended, which resulted~~ in a charge of $7.9 million. The earnout liability was remeasured at year-end which resulted in an additional charge of $0.7 million, both of which are reflected in selling, general, and administrative expense in the accompanying Consolidated ~~Income~~Balance ~~Statements~~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 following table presents the consideration transferred and the purchase price allocation:

Description	Amount
Fair value of consideration transferred
Fair value of Champion Homes, Inc common stock issued as consideration (455,098 shares at $61.20)	$	27,852
Cash consideration, net of cash acquired		24,636
Cash consideration, net of cash acquired		279,545
Consideration payable		2,000
Working capital adjustment		3,644
Estimated earn out consideration		210
Estimated earn out consideration		5,904
Total consideration	$	26,846
Total consideration	$	316,945
Purchase price allocations:
Trade accounts receivable		~~16,300~~470
Inventories		~~138~~16,~~933~~926
Other current assets		~~3,002~~315
Property, plant, and equipment, net		869,~~174~~560
Amortizable intangible assets, net		412,~~800~~900
Other noncurrent assets		10,640
Accounts payable		(622	)
Floor plan payable		(75,916	)
Other current liabilities		(8,346	)
Accounts payable		(14,427	)
Identifiable net assets acquired		21,203
Other current liabilities		(35,662	)
Goodwill		5,643
Long-term debt		(12,233	)
Total purchase price	$	26,846
Other liabilities		(3,065	)
Identifiable net assets acquired		155,546
Goodwill		161,399
Total purchase price	$	316,945

Trade accounts receivable, other assets, ~~floor plan and~~ accounts payable, ~~long-term debt~~ 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 $162.9 million infor ~~customer~~a ~~relationships and $24.9 million in~~ trade ~~names~~name ~~and are~~ based on an independent appraisal. The fair value of ~~customer relationships was determined using~~ the ~~multi-period excess earnings method and fair value of the~~ trade name was determined using the relief-from-royalty method. ~~The~~and ~~Company~~was estimated ~~that~~to ~~each~~have ~~intangible asset has~~ 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 $869.26 million related to property, plant, and equipment and $412.89 million related to intangible assets were recorded in the accompanying ~~consolidated~~Consolidated ~~balance~~Balance ~~sheet~~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.

~~The~~Management ~~acquisition~~has ofdetermined ~~Regional~~that ~~Homes~~the ~~was~~pro aforma ~~taxable~~impact ~~business~~of ~~combination. Therefore,~~ the ~~Company’s~~acquisition ~~tax~~of ~~basis~~Iseman inHomes ~~the~~on ~~assets~~revenue ~~acquired~~ and ~~the~~net ~~liabilities~~income ~~assumed~~is ~~approximate~~not material to the ~~respective~~consolidated ~~fair~~financial ~~values~~statements atand, ~~the~~accordingly, ~~acquisition~~such ~~date~~information is not presented.

Other Acquisition

During fiscal 2026 the Company also made an acquisition of a retail sales center for which the purchase price and net assets acquired were not material to the accompanying consolidated financial statements.

F-15

The Company's consolidated net sales and net income for the year ended March 30, 2024 included $227.8 million and $8.5 million, respectively, from Regional Homes. The following unaudited pro forma information presents a summary of the operating results as if the acquisition of Regional Homes had been completed on April 3, 2022, which is the beginning of the comparable annual reporting period from the acquisition date:

	Year Ended
(Dollars in thousands)	March 30,2024(unaudited)		April 1,2023(unaudited)
Pro forma net sales	$	2,290,619	$	3,130,426
Pro forma net income	$	162,986	$	465,925

The unaudited pro forma results for the year ended March 30, 2024 and April 1, 2023 reflect amortization of intangible assets, depreciation of property, plant and equipment, reduction of interest expense to reflect the new capital structure, elimination of sales between the Company and Regional Homes, the impact of the fair value step up of Regional Homes' inventory, and the tax effects of the related adjustments. The unaudited pro forma financial information has been prepared for comparative purposes only and it is not necessarily indicative of the results of operations as they would have been had the acquisition occurred on the assumed date, nor is it necessarily an indication of future operating results.

Inventories, net

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

(Dollars in thousands)	March 2928,~~2025~~2026		March 3029,~~2024~~2025
Raw materials	$	110,~~755~~073	$	~~101~~110,~~429~~755
Work in process		3140,~~079~~795		2331,~~436~~079
Finished goods and other		~~218~~207,~~795~~445		~~193~~218,~~872~~795
Total inventories, net	$	~~360~~358,~~629~~313	$	~~318~~360,~~737~~629

At March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, reserves for obsolete inventory were $11.15 million and $1011.1 million, respectively.

Property, Plant, and Equipment

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

(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~2025
Land and improvements	$	7888,~~936~~996		$	7278,~~188~~936
Buildings and improvements		~~197~~211,~~491~~769			~~183~~197,~~109~~491
Machinery and equipment		~~172~~182,~~208~~374			~~142~~172,~~870~~208
Construction in progress		1417,~~457~~565			2014,~~469~~457
Property, plant, and equipment, at cost		~~463~~500,~~092~~704			~~418~~463,~~636~~092
Less accumulated depreciation		(~~155~~186,~~952~~507	)		(~~127~~155,~~706~~952	)
Property, plant, and equipment, net	$	~~307~~314,~~140~~197		$	~~290~~307,~~930~~140

Depreciation expense for the fiscal years ended March 2928, ~~2025~~2026, March 3029, ~~2024~~2025, and ~~April~~March 130, ~~2023~~2024 was $3036.30 million, $2430.13 million, and $1624.1 million, respectively.

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 ~~both~~ March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, the Company had goodwill of $365.2 million and $358.0 million, respectively. The change in the goodwill balance in fiscal 2026 was the result of acquisitions during the period. 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 March 2928, ~~2025~~2026, there were no accumulated impairment losses related to goodwill.

F-16

Intangible Assets

The components of amortizable intangible assets were as follows:

(Dollars in thousands)	March 2928, ~~2025~~2026									March 3029, ~~2024~~2025
	CustomerRelationships & Other			TradeNames			Total			CustomerRelationships & Other			TradeNames			Total
Gross carrying amount	$	82,~~634~~786		$	4649,~~284~~242		$	~~128~~132,~~918~~028		$	82,~~909~~634		$	46,~~393~~284		$	~~129~~128,~~302~~918
Accumulated amortization		(4654,~~913~~377	)		(1721,~~293~~836	)		(6476,~~206~~213	)		(3946,~~825~~913	)		(1317,~~108~~293	)		(5264,~~933~~206	)
Amortizable intangibles, net	$	3528,~~721~~409		$	2827,~~991~~406		$	6455,~~712~~815		$	4335,~~084~~721		$	3328,~~285~~991		$	7664,~~369~~712
Weighted average remaining amortization period, in years		43.9			6.80			54.67			54.69			76.78			65.46

Amortization of intangible assets for the fiscal years ended March 2928, ~~2025~~2026, March 3029, ~~2024~~2025, and ~~April~~March 130, ~~2023~~2024 was $11.78 million, $1011.87 million, and $10.68 million respectively. Estimated amortization expense of intangible assets over the next five years is estimated to be (dollars in thousands):

Fiscal 2026	$	11,533
Fiscal 2027	$	11,858
Fiscal 2027		11,492
Fiscal 2028		11,799
Fiscal 2028		11,462
Fiscal 2029		7,460
Fiscal 2029		7,123
Fiscal 2030		6,592
Fiscal 2030		6,255
Fiscal 2031		6,416

F-16

Cloud Computing Arrangements

The Company capitalizes costs associated with the development of cloud computing arrangements in a manner consistent with internally developed software. At March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, the Company had capitalized cloud computing costs, net of accumulated amortization, of $2319.04 million and $2523.70 million, respectively. Cloud computing costs are included in other noncurrent assets in the accompanying ~~consolidated~~Consolidated ~~balance~~Balance ~~sheets~~Sheets. Amortization of capitalized cloud computing costs for the years ended March 2928, ~~2025~~2026, March 3029, ~~2024~~2025, and ~~April~~March 130, ~~2023~~2024 was $24.71 million, $02.87 million, and $0.8 million, respectively.

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. InOn ~~connection~~November ~~with~~13, ~~the share subscription agreement~~2025, ~~the~~ECN ~~Company~~entered ~~and~~into ~~Triad,~~ a ~~subsidiary~~definitive ofarrangement ~~ECN,~~to ~~formed~~be ~~Champion~~acquired ~~Financing,~~by a ~~captive~~private ~~finance~~investor ~~company~~group ~~that~~for isCAD ~~51%~~$3.10 ~~owned~~per byshare, ~~the~~plus ~~Company~~all ~~and~~accrued ~~49%~~but ~~owned~~unpaid ~~by Triad~~dividends. The ~~results~~agreement, ofwhich ~~Champion~~closed ~~Financing~~on ~~are~~April ~~included~~24, 2026, resulted in the ~~consolidated~~liquidation ~~results~~ of the Company ~~on a three-month lag. Triad~~'s ~~49%~~investment ~~ownership~~in ~~interest~~ECN iscommon ~~reflected~~and aspreferred ~~non-controlling~~shares ~~interest~~ in the ~~Consolidated~~first ~~Income~~quarter ~~Statements~~of fiscal 2027.

~~The~~In ~~Company's~~connection ~~interest~~with in the ~~common stock investment in ECN is accounted for under the equity method and the Company’s~~ share ofsubscription ~~the earnings or losses of ECN are recorded on a three-month lag. For the year ended March 29~~agreement, ~~2025 and March 30, 2024,~~ the Company's ~~share of ECN's net losses was $0.4 million~~ and ~~$7.0 million~~Triad, ~~respectively.~~a ~~Dividends~~subsidiary ~~received on the investment in common stock~~ of ECN, ~~are~~formed ~~reflected~~Champion asFinancing, a ~~reduction~~captive tofinance ~~the~~company ~~investment~~that ~~balance~~is ~~and~~51% ~~are~~owned ~~presented~~by on the ~~Consolidated~~Company ~~Statements~~and of49% ~~Cash~~owned ~~Flows~~by ~~using the nature of the distribution approach~~Triad. AtThe ~~March~~results ~~29, 2025 and March 30, 2024, the investment in the common stock~~ of ~~ECN~~Champion ~~totaled~~Financing ~~$70.2~~are ~~million and $71.9 million, respectively, and is~~ included in ~~other Noncurrent Assets in~~ the ~~accompanying~~ consolidated ~~balance~~results ~~sheets. The aggregate value~~ of the Company’s ~~investment in the common stock of ECN based~~ on ~~the~~a ~~quoted~~three-month ~~market~~lag. ~~price of ECN’~~Triad's ~~common~~49% ~~stock~~ownership atinterest ~~March~~is ~~29,~~reflected ~~2025~~as ~~was~~non-controlling ~~approximately~~interest ~~$61.5 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~~Consolidated ~~amount~~Income ~~of the investment may be impaired~~Statements. ~~We do not consider the difference in the fair market value of ECN common stock and our investment balance to be other than temporary at March 29, 2025.~~

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 year ended March 28, 2026, the Company's share of ECN's net income was $1.2 million. For the year ended March 29, 2025, the Company's share of ECN's net losses was $0.4 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 Consolidated Statements of Cash Flows using the nature of the distribution approach. At March 28, 2026 and March 29, 2025, the investment in the common stock of ECN totaled $70.5 million and $70.2 million, respectively, and is included in other noncurrent assets in the accompanying 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 March 28, 2026 was approximately $73.9 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 Consolidated Balance Sheets. The investment is measured using the measurement alternative for equity investments without a readily determinable fair value. At March 28, 2026 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 initial investment. For each of the years ended March 28, 2026 and March 29, 2025, the Company reflected dividend income from the investment in the Preferred Shares of $2.4 million, respectively, which is included in other (income) expense on the accompanying Consolidated Income Statements.

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 are not material for the year ended March 28, 2026 and March 29, 2025, respectively. Triad also provides floor plan financing of the Company's products to independent retailers. At March 28, 2026 and March 29, 2025, the Company had floor plan payables due to Triad of $10.9 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 March 28, 2026, the Company had repurchase commitments of $92.7 million on independent retailer floor plan loans outstanding with Triad. See Note 17, Commitments, Contingencies, and Concentrations, for further detail regarding the Company's contingent repurchase obligations.

F-17

The Company's investment in the Preferred Shares is included in other noncurrent assets in the accompanying consolidated balance sheets. The investment is measured using the measurement alternative for equity investments without a readily determinable fair value. At March 29, 2025 and March 30, 2024, the investment in the Preferred Shares was $64.5 million. There have been no adjustments to the carrying amount or impairment of the initial investment. For the year ended March 29, 2025 and March 30, 2024, the Company reflected dividend income from the investment in the Preferred Shares of $2.4 million and $0.6 million, respectively, which is included in other (income) expense on the accompanying consolidated income statements.

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 are not material for the year ended March 29, 2025 and March 30, 2024, respectively. Triad also provides floor plan financing of the Company's products to independent retailers. At March 29, 2025 and March 30, 2024, the Company had floor plan payables due to Triad of $35.0 million and $26.6 million, respectively. See Note 9, Debt and Floor Plan Payable for further detail regarding the Company's floor plan financing. At March 29, 2025, the Company had repurchase commitments of $113.1 million on independent retailer floor plan loans outstanding with Triad. See Note 17, Commitments, Contingencies, and Concentrations, for further detail regarding the Company's contingent repurchase obligations.

Other Current Liabilities

The components of other current liabilities were as follows:

(Dollars in thousands)	March 2928,~~2025~~2026		March 3029,~~2024~~2025
Customer deposits	$	8274,~~886~~863	$	8082,~~833~~886
Accrued volume rebates		2627,~~227~~757		2126,~~169~~227
Accrued warranty obligations		4038,~~523~~602		3940,~~176~~523
Accrued compensation and payroll taxes		5254,~~644~~388		3552,~~063~~644
Accrued insurance		1514,~~825~~854		1215,~~772~~825
Accrued product liability - water intrusion		3435,~~094~~603		34,~~500~~094
Other		27,882		23,982
Current portion of long-term debt		9,339		—
Total other current liabilities	$	280,081	$	247,495
Other		34,741		27,882
Total other current liabilities	$	290,147	$	280,081

Accrued Warranty Obligations

Changes in the accrued warranty obligations were as follows:

	Year Ended
(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~2025
Balance at the beginning of the period	$	5053,~~869~~155		$	3550,~~961~~869
Warranty expense		6771,~~426~~273			6367,~~335~~426
Acquired warranty obligations		—			11,043
Cash warranty payments		(73,280	)		(65,140	)
Cash warranty payments		(65,140	)		(59,470	)
Balance at end of period		51,148			53,155
Balance at end of period		53,155			50,869
Less noncurrent portion in other long-term liabilities		(12,546	)		(12,632	)
Less noncurrent portion in other long-term liabilities		(12,632	)		(11,693	)
Total current portion	$	38,602		$	40,523
Total current portion	$	40,523		$	39,176

Debt and Floor Plan Payable

Long-term debt consisted of the following:

(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~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		43,~~993~~999			4,~~889~~993
Revolving credit facility maturing in 2026		—			—
Revolving credit facility maturing in 2030		—			—
Total long-term debt	$	24,773		$	24,669
Total debt		23,779			24,773
Less: current portion of long-term debt		(9,339	)		—
Total long-term debt	$	14,440		$	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 March 28, 2026, the interest rate under the Second Amended Credit Agreement was 4.79% 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 March 28, 2026 was $172.5 million.

F-18

OnThe ~~July~~Second ~~7, 2021, the Company entered into an~~ Amended ~~and Restated~~ Credit Agreement ~~with~~contains acovenants ~~syndicate of banks~~ that ~~provides~~restrict ~~for~~the aamount ~~revolving~~of ~~credit~~additional ~~facility~~debt, ofliens upand tocertain ~~$200.0 million~~payments, including aequity ~~$45.0 million letter of credit sub~~buy-~~facility~~backs, ~~(“Amended~~investments, ~~Credit~~dispositions, ~~Agreement”).~~mergers ~~The~~and ~~Amended~~consolidations, ~~Credit~~among ~~Agreement~~other ~~replaced~~restrictions ~~the~~as ~~Company’s previously existing $100~~defined.0 ~~million revolving credit facility.~~ The ~~Amended Credit Agreement allows the~~ Company towas ~~draw~~in ~~down,~~compliance ~~repay~~with ~~and~~all ~~re-draw~~covenants ~~loans~~of on the ~~available~~Amended ~~funds~~Credit ~~during~~Agreement ~~the~~as ~~term,~~of ~~subject~~March ~~to certain terms and conditions~~28, ~~matures in July~~ 2026 ~~and has no scheduled amortization~~.

OnObligations ~~May~~under ~~18,~~industrial ~~2023,~~revenue ~~the~~bonds ~~Company~~are ~~further~~supported ~~amended~~by ~~the~~letters ~~Amended~~of ~~Credit~~credit ~~Agreement, which removed references to the London Interbank Offer Rate ("LIBOR")~~ and ~~clarified~~bear ~~language pertaining to the Secured Overnight Financing Rate ("SOFR") in regards to the~~ interest ~~rate on borrowings. The interest rate on borrowings under the Amended Credit Agreement is~~ based on ~~SOFR plus~~ a ~~SOFR~~municipal ~~adjustment,~~bond ~~plus~~index ~~an interest~~ rate ~~spread~~. The weighted-average interest rate ~~spread~~at ~~adjusts~~March ~~based~~28, on2026 ~~the~~and ~~consolidated~~March ~~total net leverage of the Company from a high of 1.875% when the consolidated total net leverage ratio is equal to or greater than 2.25:1.00~~29, ~~to a low of 1.125% when the consolidated total net leverage ratio is below 0.50:1.00. Alternatively for same day borrowings~~2025, ~~the~~including ~~interest~~related ~~rate~~costs isand ~~based on an Alternative Base Rate ("ABR") plus an interest rate spread that ranges from a high of 0.875% to a low of 0.125% based on the consolidated total net leverage ratio. In addition~~fees, ~~the~~was ~~Company is obligated to pay an unused line fee ranging between 0~~4.1514% and 04.341% ~~depending on the consolidated total net leverage ratio~~, ~~in respect of unused commitments under the Amended Credit Agreement~~respectively. AtThe ~~March~~industrial ~~29,~~revenue ~~2025,~~bonds ~~the~~require ~~interest~~lump-sum ~~rate~~payments ~~under~~of ~~the~~principal ~~Credit~~upon ~~Agreement~~maturity ~~was~~in ~~5.55%~~2029 and ~~letters~~are ofsecured ~~credit~~by ~~issued under~~ the ~~Credit~~assets ~~Agreement~~of ~~totaled~~certain ~~$31.5~~manufacturing ~~million~~facilities. ~~Total available borrowings under the Credit Agreement were $168.5 million.~~

~~The~~As ~~Amended~~part ~~Credit~~of ~~Agreement~~the ~~contains~~acquisition ~~covenants~~of ~~that~~Regional ~~restrict~~Homes, the ~~amount~~Company ofassumed ~~additional~~notes ~~debt,~~payable ~~liens~~to ~~and~~Romeo ~~certain~~Juliet, ~~payments~~LLC, ~~including~~a ~~equity~~subsidiary ~~buybacks,~~of ~~investments,~~Wells ~~dispositions,~~Fargo ~~mergers~~Community ~~and~~Investment ~~consolidations~~Holdings, ~~among~~Inc. ~~other~~("WFC"). ~~restrictions~~The asweighted-average ~~defined~~interest rate on those notes at March 28, 2026 was 5.42%. The notes are secured by certain assets of Regional Homes. In addition, the Company ~~was~~assumed ina ~~compliance~~note payable to United Bank with ~~all~~a ~~covenants~~fixed interest rate of ~~the~~3.85% ~~Amended~~that ~~Credit~~is ~~Agreement~~secured asby ofa ~~March~~note 29receivable from HHB Investment Fund, ~~2025~~LLC, a subsidiary of WFC. The current portion of notes payable due within the next 12 months is included in other current liabilities on the Consolidated Balance Sheets.

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 March 29, 2025 and March 30, 2024, including related costs and fees, was 4.41% and 5.25%, respectively. The industrial revenue bonds require lump-sum payments of principal upon maturity in 2029 and are secured by the assets of certain manufacturing facilities.

As part of the acquisition of Regional Homes, the Company assumed 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 March 29, 2025 was 5.42%. The notes are secured by certain assets of Regional Homes. In addition, the Company assumed a note payable to United Bank with a fixed interest rate of 3.85% that is secured by a note receivable from HHB Investment Fund, LLC, a subsidiary of WFC.

Floor Plan Payable

The Company’s retail operations utilize floor plan financing to fund the purchase of manufactured homes for display or resale. At March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, the Company had outstanding borrowings on floor plan financing agreements of $~~106~~94.16 million and $91106.31 million, respectively. Total credit line capacity provided under the agreements was $~~253~~308.0 million as of March 2928, ~~2025~~2026. The weighted average interest rate on the floor plan payable was 75.2064% at March 2928, ~~2025~~2026. Borrowings are secured by the homes and are required to be repaid when the Company sells the related home to a customer, which is generally less than one year.

10.

Revenue Recognition

The Company’s revenue is recognized when performance obligations under the terms of a contract are satisfied which generally occurs with the transfer of control of products. The Company enters into contracts with its customers to provide manufactured homes, modular homes, park model RVs, ADUs, commercial structures and transportation services. Generally, the Company’s contracts may be terminated by the Company’s customers at any time prior to initiation of construction of the respective home. Historically, terminations of these contracts have been minimal. The Company receives signed sales quotes from its customers, which provide the terms for a specific home, including price. The Company also has agreements with certain customers that provide for certain variable consideration, such as volume discounts, that are deducted from the contract price and accrued at the time of sale. In certain situations, the Company may receive payment in advance of completion of its contractual obligations. In these situations, the arising contract liability is classified within customer deposits and receipts in excess of revenues. Following the receipt of the customer deposit, the Company typically completes its performance obligation within a twelve-month period.

For sales to independent wholesale customers, revenue is recognized at the point in time when wholesale floor plan financing or retailer credit approval has been received, the home has shipped and title has transferred, which occurs when the Company has satisfied its contractual obligations and the control of its products has been transferred. The Company does not have an enforceable right to payment prior to shipment. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to in exchange for those products. The Company’s customers pay for products received in accordance with payment terms that are customary within the industry. As is customary in the factory-built housing industry, a significant portion of the Company’s sales to independent retailers are financed under floor plan financing programs with certain third-party lenders. Floor plan financing arrangements are generally identified prior to shipment of products and payment for sales financed under floor plan programs is generally received 5 to 10 business days from the date of invoice.

F-19

arrangements are generally identified prior to shipment of products and payment for sales financed under floor plan programs is generally received 5 to 10 business days from the date of invoice.

For retail sales to consumers from Company-owned retail sales centers, revenue is recognized when the home has been delivered, set up and accepted by the consumer, and title has transferred. Revenue from Company-owned retail sales centers includes the selling price of homes internally manufactured that otherwise would have been included in Manufacturing revenue.

The Company recognizes revenue and related cost of sales for long-term construction contracts (“Commercial”) over time as performance obligations are satisfied using the percentage-of-completion method (input method). Management estimates the stage of completion on each construction project based on progress and costs incurred. Unbilled revenue on long-term construction contracts are classified as a contract asset in accounts receivable. Receipts in excess of billings are classified as contract liabilities and included in other current liabilities. There were no uncollected billings related to long-term construction contracts, unbilled revenue or receipts in excess of billings for long-term contracts at either March 29, 2025 or March 30, 2024.

Revenue for the Company’s transportation operations is recognized when a shipment has been delivered to its final destination. Amounts billed to customers related to shipping and handling costs are included in net sales. Shipping and handling costs are accounted for as fulfillment costs and are included in cost of sales.

F-19

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

	Year ended March 28, 2026
(Dollars in thousands)	U.S.Factory-BuiltHousing		CanadianFactory-builtHousing		Corporate/Other		Total
Manufacturing	$	1,540,322	$	110,986	$	—	$	1,651,308
Retail		975,509		—		—		975,509
Transportation		—		—		36,822		36,822
Total	$	2,515,831	$	110,986	$	36,822	$	2,663,639
	Year ended March 29, 2025
(Dollars in thousands)	U.S.Factory-BuiltHousing		CanadianFactory-builtHousing		Corporate/Other		Total
Manufacturing	$	1,495,978	$	94,172	$	—	$	1,590,150
Retail		861,938		—		—		861,938
Transportation		—		—		31,360		31,360
Total	$	2,357,916	$	94,172	$	31,360	$	2,483,448
	Year ended March 30, 2024
(Dollars in thousands)	U.S.Factory-BuiltHousing		CanadianFactory-builtHousing		Corporate/Other		Total
Manufacturing	$	1,378,396	$	109,089	$	—	$	1,487,485
Retail		507,111		—		—		507,111
Transportation		—		—		30,227		30,227
Total	$	1,885,507	$	109,089	$	30,227	$	2,024,823
	Year ended April 1, 2023
(Dollars in thousands)	U.S.Factory-BuiltHousing		CanadianFactory-builtHousing		Corporate/Other		Total
Manufacturing	$	2,116,264	$	144,289	$	—	$	2,260,553
Retail		293,730		—		—		293,730
Commercial		1,348		—		—		1,348
Transportation		—		—		50,929		50,929
Total	$	2,411,342	$	144,289	$	50,929	$	2,606,560

11.

F-20

Leases

The Company has operating leases for land, manufacturing and office facilities, and equipment. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company's leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. Lease expense included in ~~selling, general, and administrative expenses in~~ the accompanying consolidated income statements is shown below:

	Year ended
(Dollars in thousands)	March 2928,~~2025~~2026		March 3029,~~2024~~2025
Operating lease expense	$	1210,~~463~~101	$	1012,~~230~~463
Short-term lease expense		23,~~186~~320		2,~~170~~186
Total lease expense	$	1413,~~649~~421	$	1214,~~400~~649

Operating lease assets and obligations included in the accompanying consolidated balance ~~sheet~~sheets are shown below:

(Dollars in thousands)	March 2928,~~2025~~2026		March 3029,~~2024~~2025
Right-of-use assets under operating leases:
Other long-term assets	$	3227,~~351~~004	$	3832,~~661~~351
Lease obligations under operating leases:
Other current liabilities		98,~~295~~819		79,~~476~~295
Other long-term liabilities		2318,~~646~~185		3123,~~266~~646
Total lease obligation	$	3227,~~941~~004	$	3832,~~742~~941

~~Maturities of operating lease obligations as of March 29, 2025 are shown below:~~F-20

(Dollars in thousands)	March 29,2025
Fiscal 2026	$	11,032
Fiscal 2027		9,634
Fiscal 2028		6,250
Fiscal 2029		2,167
Fiscal 2030		1,389
Thereafter		14,089
Total undiscounted cash flows		44,561
Less: imputed interest		(11,620	)
Lease obligations under operating leases	$	32,941

Maturities of operating lease obligations as of March 28, 2026 are shown below:


(Dollars in thousands)	March 28, 2026
Fiscal 2027	$	10,385
Fiscal 2028		7,091
Fiscal 2029		2,933
Fiscal 2030		2,031
Fiscal 2031		1,694
Thereafter		12,909
Total undiscounted cash flows		37,043
Less: imputed interest		(10,039	)
Lease obligations under operating leases	$	27,004

The weighted average lease term and discount rate for operating leases are shown below:

	March 29,2025
	March 28,2026
Weighted average remaining lease term (in years)		78.74
Weighted average discount rate (as percent)		7.12

Other information related to leases is as follows:

	Year ended
(Dollars in thousands)	March 2928,~~2025~~2026		March 3029,~~2024~~2025
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	32,~~002~~218	$	103,~~306~~002
Operating cash flows:
Cash paid related to operating lease obligations	$	1210,~~407~~828	$	912,~~878~~407

12.

F-21

Income Taxes

Pretax income for the fiscal years ended March 2928, ~~2025~~2026, March 3029, ~~2024~~2025, and ~~April~~March 130, ~~2023~~2024 was attributable to the following tax jurisdictions:

Year Ended

(Dollars in thousands)

March 2928,~~2025~~2026

March 3029,~~2024~~2025

~~April~~March 130, ~~2023~~2024

Domestic

~~237~~249,~~329~~533

~~175~~237,~~465~~329

~~499~~175,~~715~~465

Foreign

2021,~~039~~038

2520,~~390~~039

3425,~~181~~390

Income before income taxes

~~257~~270,~~368~~571

~~200~~257,~~855~~368

~~533~~200,~~896~~855

The income tax provision by jurisdiction for the fiscal years ended March 2928, ~~2025~~2026, March 3029, ~~2024~~2025, and ~~April~~March 130, ~~2023~~2024 was as follows:

Year Ended

(Dollars in thousands)

March 2928,~~2025~~2026

March 3029,~~2024~~2025

~~April~~March 130, ~~2023~~2024

Current:

U.S. federal

4828,~~065~~225

3748,~~105~~065

9837,~~242~~105

Foreign

34,~~905~~512

53,~~058~~905

85,~~560~~058

State

1210,~~270~~450

1112,~~200~~270

2411,~~000~~200

Total current

6443,~~240~~187

5364,~~363~~240

~~130~~53,~~802~~363

Deferred

U.S. federal

~~(10~~12,~~530~~254

)

(610,~~873~~530

)

78(6,873

)

Foreign

~~1,361~~897

21,~~249~~361

12,~~440~~249

State

~~(1,347~~419

)

(1,~~603~~347

)

(~~226~~1,603

)

Total deferred

~~(10~~13,~~516~~570

)

(610,~~227~~516

)

1(6,~~292~~227

)

Total income tax expense

5356,~~724~~757

4753,~~136~~724

~~132~~47,~~094~~136

Income tax expense differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to income before income taxes as a result of the following differences:F-21

	Year Ended
(Dollars in thousands)	March 29,2025			March 30,2024			April 1, 2023
Tax expense at U.S federal statutory rate	$	54,047		$	42,180		$	112,118
Increase (decrease) in rate resulting from:
State taxes, net of U.S. federal benefit	$	8,420		$	7,575		$	18,956
Change in net operating loss carryforward		6,343			—			—
Non-deductible compensation due to Section 162(m)		1,486			2,435			1,924
Recognition of foreign investment basis difference		822			955			1,249
Foreign tax rate differences		793			1,134			1,566
Change in deferred tax valuation allowance		(6,659	)		(333	)		(703	)
U.S. tax credits		(11,820	)		(6,129	)		(2,694	)
Other		292			(681	)		(322	)
Total income tax expense	$	53,724		$	47,136		$	132,094

In accordance with the adoption of ASU 2023-09, a reconciliation of income taxes at the U.S. statutory federal income tax rate to total income tax expense for the fiscal year ended March 28, 2026 was as follows:

The U.S. income tax rate for fiscal 2025, 2024, and 2023 was 21.0%.


	Year Ended
(Dollars in thousands)	March 28, 2026			%

Tax expense at U.S federal statutory rate of 21%	$	56,820			21.0	%
Increase (decrease) in rate resulting from:
State taxes, net of U.S. federal benefit (1)	$	8,674			3.2	%
Foreign tax effects
Canada		991			0.4	%
Effect of cross-border tax laws		699			0.3	%
Tax credits
Energy efficient homes credit		(10,270	)		(3.8	%)
Other		(1,619	)		(0.6	%)
Changes in valuation allowances		—			(—	%)
Nontaxable or nondeductible items		1,380			0.5	%
Other		82			0.0	%
Total income tax expense	$	56,757			21.0	%

(1) State taxes in California, Florida, Michigan, Texas, Pennsylvania, and Mississippi made up the majority (greater than 50 percent) of the tax effect in this category.

For the fiscal years ended March 29, 2025 and March 30, 2024, prior to the adoption of ASU 2023-09, a reconciliation of income taxes at the U.S. statutory federal income tax rate to total income tax expense was as follows:


	Year Ended
(Dollars in thousands)	March 29, 2025			March 30, 2024

Tax expense at U.S federal statutory rate of 21%	$	54,047		$	42,180
Increase (decrease) in rate resulting from:
State taxes, net of U.S. federal benefit	$	8,420		$	7,575
Change in net operating loss carryforward		6,343			-
Non-deductible compensation due to Section 162(m)		1,486			2,435
Recognition of foreign investment basis difference		822			955
Foreign tax rate differences		793			1,134
Change in deferred tax valuation allowance		(6,659	)		(333	)
U.S. tax credits		(11,820	)		(6,129	)
Other		292			(681	)
Total income tax expense	$	53,724		$	47,136

F-22

Deferred tax assets and liabilities at March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, consisted of the following:

(Dollars in thousands)	March 2928,~~2025~~2026			March 3029,~~2024~~2025
ASSETS
Warranty reserves	$	12,~~759~~509		$	1112,~~328~~759
Capitalized research expenditures		11,733			6,312
Accrued product liability - water intrusion		8,910			8,291
Employee compensation		8,~~427~~851			48,~~245~~427
Accrued product liability - water intrusion		8,291			8,353
Intangible assets		7,716			7,733
Lease assets		86,~~034~~669			98,~~573~~034
Intangible assets		7,733			8,448
Self-insurance reserves		6,265			5,899
Self-insurance reserves		5,899			4,840
Equity-based compensation		3,880			3,800
Equity-based compensation		3,800			4,720
Inventory reserves and impairments		3,620			3,688
Inventory reserves and impairments		3,688			3,427
Dealer volume discounts		1,818			2,354
Dealer volume discounts		2,354			1,821
Capitalized research expenditures		—			11,733
Foreign net operating loss carryforwards		—			6,343
Other		7,449			5,391
Other		5,391			3,323
Gross deferred tax assets	$	67,687		$	78,109
Gross deferred tax assets	$	78,109		$	72,733
LIABILITIES
Property, plant, and equipment	$	2122,~~559~~463		$	2021,~~329~~559
Lease liabilities		7,908			9,553
Foreign tax basis difference in investments		8,445			7,350
Foreign tax basis difference in investments		7,350			6,905
Intangible assets		6,726			4,705
Intangible assets		4,705			3,418
Lease liabilities		6,669			7,908
Other		893			850
Capitalized research expenditures		2,376			—
Gross deferred tax liabilities		42,415			41,055
Other		816			893
Valuation allowance		(5,046	)		(11,705	)
Gross deferred tax liabilities		47,495			42,415
Net deferred tax assets	$	30,648		$	19,973
Valuation allowance		(5,181	)		(5,046	)
Net deferred tax assets	$	15,011		$	30,648

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 have a financial reporting implication for the fiscal year ended March 28, 2026. The Company has reflected the effects of OBBBA as a change to income taxes payable with an offset to deferred tax assets in the accompanying Consolidated Balance Sheets.

The Company anticipates periodically repatriating the earnings of its Canadian subsidiaries. A deferred tax liability is recognized for income tax withholding which may be incurred upon the reversal of basis differences in investments in its foreign subsidiaries.

The Company periodically evaluates the realizability of its deferred tax assets based on whether it is “more likely than not” that some portion of the deferred tax assets will not be realized. Our evaluation considers available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. AsThe ~~of March 29, 2025, the~~ Company’s valuation allowance principally consists of valuation allowances for certain state NOL carryforwards and certain Canadian deferred tax assets. As of March 30, 2024, the Company’s valuation allowance principally consists of valuation allowances for certain state NOL carryforwards, certain Canadian deferred tax assets, and the Company’s deferred tax assets in the Netherlands.

As of March 2928, ~~2025~~2026, the Company has state NOL carryforwards in various jurisdictions which expire primarily in 2028 through 2036.

Unrecognized tax benefits represent the differences between tax positions taken or expected to be taken on a tax return and the benefits recognized for financial statement purposes. There were no unrecognized tax benefits at March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025.

The Company is no longer subject to foreign tax examinations by tax authorities for years prior to fiscal ~~2021~~2022. The Company’s U.S. subsidiaries are subject to U.S. federal tax examinations for fiscal ~~2022~~2023 through fiscal ~~2025~~2026, and U.S. state tax examinations by tax authorities for fiscal ~~2021~~2022 through fiscal ~~2025~~2026.

Equity-Based Compensation

The Company has equity incentive plans under which the Company has been authorized to grant share-based awards to key employees and non-employee directors. Equity-based compensation expense of $18.3 million, $19.6 million, and $14.2 million, was recognized in fiscal 2025, 2024, and 2023, respectively. Equity-based compensation expense is included in SG&A expenses in the accompanying consolidated income statements. The total associated income tax benefit recognized was $3.4 million, $3.9 million, and $3.3 million in fiscal 2025, 2024, and 2023, respectively. Total unrecognized equity-based compensation for all share-based awards was $28.0 million at March 29, 2025, of which $15.5 million is expected to be recognized in fiscal 2026, $8.3 million in fiscal 2027, and $4.2 million thereafter, or a weighted-average period of 1.6 years.

F-23

In accordance with the adoption of ASU 2023-09, below is a summary of income taxes paid, net of refunds received, by jurisdiction for the fiscal year ended March 28, 2026:


	Year Ended
(Dollars in thousands)	March 28, 2026

U.S. federal	$	24,500
U.S. state and local		9,954
Total U.S.	$	34,454

Foreign
Canada	$	4,005
Total Foreign		4,005
Total	$	38,459

For the fiscal years ended March 29, 2025, and March 30, 2024, prior to the adoption of ASU 2023-09, net cash payments for incomes taxes were $59.2 million and $59.1 million, respectively.

13.

Equity-Based Compensation

The Company has equity incentive plans under which the Company has been authorized to grant share-based awards to key employees and non-employee directors. Equity-based compensation expense of $20.9 million, $18.3 million, and $19.6 million, was recognized in fiscal 2026, 2025, and 2024, respectively. Equity-based compensation expense is included in SG&A expenses in the accompanying consolidated income statements. The total associated income tax benefit recognized was $3.3 million, $3.4 million, and $3.9 million, in fiscal 2026, 2025, and 2024, respectively. Total unrecognized equity-based compensation for all share-based awards was $30.8 million at March 28, 2026, of which $16.2 million is expected to be recognized in fiscal 2027, $10.3 million in fiscal 2028, and $4.3 million thereafter, or a weighted-average period of 1.6 years.

Stock Options

Stock options generally have terms of 10 years, with one-third of each grant vesting each year for three years, and are assigned an exercise price that is equal to or greater than the closing market price of a share of the Company’s common stock on the date of grant. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. When determining expected volatility, the Company considered volatility of guideline public companies. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant, based on the options’ expected term. The expected term of the options is based on the time period to exercise for each vesting tranche, which is calculated based on the average of: (i) the full option contractual term; and (ii) the starting vest date. There were no stock options granted in fiscal 2026, 2025 or 2024. A summary of the activity associated with these awards is as follows:

	Shares (in thousands)			Weighted Average Exercise Price Per Share		Weighted Average Remaining Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding at April 2, 2022		487		$	28.50
Exercised		(89	)	$	27.64
Outstanding at April 1, 2023		398		$	28.68
Exercised		(66	)	$	21.72
Forfeitures		(1	)	$	15.00
Outstanding at March 30, 2024		331		$	30.10
Exercised		(15	)	$	32.65
Outstanding at March 29, 2025		316		$	29.98		~~3.1~~	$	~~20,473~~
Vested and exercisable at March 29, 2025		316		$	29.98		3.1	$	20,473
Exercised		(142	)	$	29.03
Outstanding at March 28, 2026		174		$	30.75		3.9	$	7,582
Vested and exercisable at March 28, 2026		174		$	30.75		3.9	$	7,582

Performance Share Units

In fiscal ~~2025~~2026, ~~2024~~2025 and ~~2023~~2024, the Company issued performance share units that contain market vesting conditions, performance vesting conditions, and service conditions. The performance condition is based on the Company's market share of single family home completions ("SFC Market Share"). The SFC Market Share component of the awards are valued at the market price of a share of the Company's common stock on the date of grant. The market condition is based on the Company’s total shareholder return (“TSR”) compared to the median TSR of certain companies over a three year performance period. The Company used a Monte-Carlo simulation to determine the grant date fair value for the awards, which takes into consideration the possible outcomes pertaining to the TSR market condition. Per the terms of the awards, 0% to 200% of the Company’s performance share units vest on the third anniversary of the vesting commencement date based upon achievement of the performance and market conditions as specified in the performance share unit agreement. A summary of the activity associated with these awards based on the maximum potential achievement is as follows:

	Shares (in thousands,			Weighted Average Grant Date Fair Value Per Unit
	at maximum achievement)			(at maximum achievement)
Outstanding at April 2, 2022		407		$	29.26
Granted		254		$	42.17
Vested		(128	)	$	33.22
Forfeitures		(3	)	$	35.88
Outstanding at April 1, 2023		530		$	36.79
Granted		166		$	52.10
Vested		(91	)	$	75.11
Forfeitures		(4	)	$	42.22
Outstanding at March 30, 2024		601		$	36.61
Granted		128		$	61.53
Vested		(73	)	$	40.47
Forfeitures		(240	)	$	44.24
Outstanding at March 29, 2025		416		$	50.47

F-24

anniversary of the vesting commencement date based upon achievement of the performance and market conditions as specified in the performance share unit agreement. A summary of the activity associated with these awards based on the maximum potential achievement is as follows:


	Shares (in thousands,			Weighted Average Grant Date Fair Value Per Unit
	at maximum achievement)			(at maximum achievement)
Outstanding at April 1, 2023		530		$	36.79
Granted		166		$	52.10
Vested		(91	)	$	75.11
Forfeitures		(4	)	$	42.22
Outstanding at March 30, 2024		601		$	36.61
Granted		128		$	61.53
Vested		(73	)	$	40.47
Forfeitures		(240	)	$	44.24
Outstanding at March 29, 2025		416		$	50.47
Granted		149		$	44.62
Vested		(55	)	$	41.11
Forfeitures		(123	)	$	42.49
Outstanding at March 28, 2026		387		$	52.28

The assumptions used in the Monte-Carlo simulation for the performance condition of performance share units along with the weighted-average grant date fair value for awards granted in the periods presented are as follows:

Performance Unit Assumptions	Fiscal ~~2025~~2026			Fiscal ~~2024~~2025			Fiscal ~~2023~~2024
Weighted-average assumptions used:
Expected volatility		4643.82	%		4946.08	%		5749.60	%
Dividend yield		—			—			—
Risk-free interest rate		3.98	%		43.49	%		34.74	%
Expected term, in years		3.00			3.00			3.00
Weighted average grant date fair value per share	$	~~123~~89.0624		$	~~104~~123.2006		$	84104.3420

Restricted Stock Units

Restricted stock units are valued at the market price of a share of the Company’s common stock on the date of grant. In general, these awards have graded vesting conditions in which a portion of awards vest ratably in three equal installments on the anniversary of the vesting commencement date. The total fair value of restricted stock which vested was approximately $1912.29 million, $1519.82 million, and $415.98 million during fiscal ~~2025~~2026, ~~2024~~2025, and ~~2023~~2024, respectively.

The weighted average grant date fair value per share for restricted stock units granted in fiscal ~~2025~~2026, ~~2024~~2025, and ~~2023~~2024 was $8872.7440, $7188.4374, and $6171.9243, respectively.

	Restricted Stock Units(in thousands)
Outstanding at April 2, 2022		165
Granted		267
Vested		(91	)
Forfeitures		(11	)
Outstanding at April 1, 2023		330
Granted		273
Vested		(222	)
Forfeitures		(11	)
Outstanding at March 30, 2024		370
Granted		137
Vested		(211	)
Forfeitures		(46	)
Outstanding at March 29, 2025		250
Granted		265
Vested		(167	)
Forfeitures		(14	)
Outstanding at March 28, 2026		334

F-25

14.

Earnings Per Share

Basic net income per share (“EPS”) 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:

Year Ended

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

March 2928,~~2025~~2026

March 3029,~~2024~~2025

~~April~~March 130, ~~2023~~2024

Numerator:

Net income attributable to Champion Homes, Inc.

~~198~~206,~~413~~898

~~146~~198,~~696~~413

~~401~~146,~~802~~696

Denominator:

Basic weighted average shares outstanding

5756,~~562~~150

57,~~492~~562

5657,~~987~~492

Dilutive securities

~~513~~352

~~486~~513

~~408~~486

Diluted weighted average shares outstanding

5856,~~075~~502

5758,~~978~~075

57,~~395~~978

Basic net income per share:

3.4568

23.5545

72.0555

Diluted net income per share:

3.4266

23.5342

72.0053

F-25

Securities that could potentially dilute basic EPS in the future that were considered antidilutive in the periods presented are shown below:

Type of security (in thousands)	March 2928,~~2025~~2026		March 3029,~~2024~~2025		~~April~~March 130, ~~2023~~2024
Stock options		—		—		13—
Restricted share units		563		—5		—
Performance share units		164		1		931
Total dilutive securities		6127		16		~~106~~1

15.

Retirement Plans

The Company’s U.S. subsidiary sponsors a defined contribution savings plan covering most U.S. employees. Full-time employees covered by the plan are eligible to participate. Participating employees may contribute from 1% to 25% of their compensation to the plan, with the Company matching 50% of the first 6% of pay contributed. The Company match vests after three years of employment or immediately for employees age 50 and over. The Company recognized expense of $67.03 million, $56.0 million, and $5.90 million related to this plan during fiscal ~~2025~~2026, ~~2024~~2025, and ~~2023~~2024, respectively.

Full-time employees of the Company’s subsidiaries in Canada are generally covered by employer-sponsored defined contribution plans that require employee contributions and employer matching contributions. The Company recognized expense of $0.56 million in fiscal ~~2025~~2026, $0.65 million in fiscal ~~2024~~2025, and $0.76 million in fiscal ~~2023~~2024.

16.

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 and allocates resources based on net sales, before elimination of inter-company shipments and earnings before interest, taxes, depreciation and amortization (“EBITDA”).

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 deferred tax items not specifically allocated to another segment.

F-26

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:

	Year Ended March 29, 2025
	Year Ended March 28, 2026
(Dollars in thousands)	U.S. Factory-built Housing			Canadian Factory-built Housing			Corporate/Other			Consolidated
Net sales	$	2,~~357~~515,~~916~~831		$	94110,~~172~~986		$	3136,~~360~~822		$	2,~~483~~663,~~448~~639
Cost of sales(1)		(1,~~716~~846,~~443~~795	)		(6877,~~696~~008	)		(86,~~475~~218	)
Selling, general, and administrative expenses(2)		(~~311~~326,~~660~~601	)		(1016,~~786~~484	)		(8890,~~446~~979	)
Other items(3)		—			—			(14,~~869~~554	)
Segment EBITDA	$	~~329~~342,~~813~~435		$	1417,~~690~~494		$	(6764,~~430~~929	)
U.S. Factory-built Housing EBITDA										$	~~329~~342,~~813~~435
Canadian Factory-built Housing EBITDA											1417,~~690~~494
Corporate/Other EBITDA											(6764,~~430~~929	)
Depreciation and amortization											(4147,~~910~~789	)
Interest income, net											16,~~974~~444
Equity in net loss of affiliate											2,004
Equity in net (income) of affiliate											(382	)
Net income attributable to non-controlling interest											37,~~227~~298
Income before income taxes										$	~~257~~270,~~368~~571
Depreciation	$	2733,~~857~~281		$	12,~~780~~077		$	~~616~~634		$	3035,~~253~~992
Amortization	$	11,~~657~~797		$	—		$	—		$	11,~~657~~797
Expenditure for segment assets	$	4430,~~824~~513		$	2,~~087~~274		$	31,~~621~~332		$	5034,~~532~~119
Segment assets(4)	$	1,~~275~~265,~~488~~654		$	~~140~~159,~~230~~087		$	~~694~~706,~~690~~805		$	2,~~110~~131,~~408~~546

(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 dividend income, ~~and~~ 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.

	Year Ended March 30, 2024
	Year Ended March 29, 2025
(Dollars in thousands)	U.S. Factory-built Housing			Canadian Factory-built Housing			Corporate/Other			Consolidated
Net sales	$	12,~~885~~357,~~507~~916		$	~~109~~94,~~089~~172		$	3031,~~227~~360		$	2,~~024~~483,~~823~~448
Cost of sales(1)		(1,~~425~~716,~~962~~443	)		(7768,~~176~~696	)		(158,~~074~~475	)
Selling, general, and administrative expenses(2)		(~~218~~311,~~923~~660	)		(10,~~545~~786	)		(6788,~~028~~446	)
Other items(3)		—			—			(91,~~627~~869	)
Segment EBITDA	$	~~240~~329,~~622~~813		$	2114,~~368~~690		$	(6167,~~502~~430	)
U.S. Factory-built Housing EBITDA										$	~~240~~329,~~622~~813
Canadian Factory-built Housing EBITDA											2114,~~368~~690
Corporate/Other EBITDA											(6167,~~502~~430	)
Depreciation and amortization											(3441,910	)
Interest income, net											2816,~~254~~974
Equity in net loss of affiliate											72,~~023~~004
Income before income taxes										$	200,855
Net income attributable to non-controlling interest											3,227
Depreciation	$	22,041		$	1,482		$	613		$	24,136
Income before income taxes										$	257,368
Amortization	$	10,774		$	—		$	—		$	10,774
Depreciation	$	27,857		$	1,780		$	616		$	30,253
Expenditure for segment assets	$	47,856		$	3,553		$	1,506		$	52,915
Amortization	$	11,657		$	—		$	—		$	11,657
Segment assets(4)	$	1,239,338		$	132,420		$	551,583		$	1,923,341
Expenditure for segment assets	$	44,824		$	2,087		$	3,621		$	50,532
Segment assets(4)	$	1,275,488		$	140,230		$	694,690		$	2,110,408

(1)

Cost of sales is presented net of depreciation expense.

(2)

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

Other items for Corporate/Other include acquisition costs, dividend income, and equity in net loss of affiliates.

F-27

(3)

Other items for Corporate/Other include acquisition costs, dividend income, and equity in net loss of affiliates.

(4)

	Year Ended April 1, 2023
	Year Ended March 30, 2024
(Dollars in thousands)	U.S. Factory-built Housing			Canadian Factory-built Housing			Corporate/Other			Consolidated
Net sales	$	21,~~411~~885,~~342~~507		$	~~144~~109,~~289~~089		$	5030,~~929~~227		$	2,~~606~~024,~~560~~823
Cost of sales(1)		(1,~~641~~425,~~120~~962	)		(9877,~~457~~176	)		(3415,~~409~~074	)
Selling, general, and administrative expenses(2)		(~~211~~218,~~234~~923	)		(1210,~~895~~545	)		(6367,~~434~~028	)
Other items(3)		—			—			~~634~~(9,627	)
Segment EBITDA	$	~~558~~240,~~988~~622		$	3221,~~937~~368		$	(4661,~~280~~502	)
U.S. Factory-built Housing EBITDA										$	~~558~~240,~~988~~622
Canadian Factory-built Housing EBITDA											3221,~~937~~368
Corporate/Other EBITDA											(4661,~~280~~502	)
Depreciation and amortization											(2634,~~726~~910	)
Interest income, net											1428,~~977~~254
Income before income taxes										$	533,896
Equity in net loss of affiliate											7,023
Depreciation	$	13,624		$	1,228		$	1,233		$	16,085
Income before income taxes										$	200,855
Amortization	$	10,641		$	—		$	—		$	10,641
Depreciation	$	22,041		$	1,482		$	613		$	24,136
Expenditure for segment assets	$	47,328		$	4,189		$	727		$	52,244
Amortization	$	10,774		$	—		$	—		$	10,774
Segment assets(4)	$	708,573		$	124,673		$	729,478		$	1,562,724
Expenditure for segment assets	$	47,856		$	3,553		$	1,506		$	52,915
Segment assets(4)	$	1,239,338		$	132,420		$	551,583		$	1,923,341

(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 transaction costs and other income.

(4)

17.

Commitments, Contingencies, and Concentrations

Repurchase Contingencies and Guarantees

The Company is contingently liable under terms of repurchase agreements with lending institutions that provide wholesale floor plan financing to retailers. These arrangements, which are customary in the manufactured housing industry, provide for the repurchase of products sold to retailers in the event of default by the retailer on their agreement to pay the financial institution. The risk of loss from these agreements is significantly reduced by the potential resale value of any products that are subject to repurchase and is spread over numerous retailers. The repurchase price is generally determined by the original sales price of the product less contractually defined curtailment payments. Based on these repurchase agreements and our historical loss experience, we establish an associated loss reserve which was $1.67 million and $1.86 million at March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, respectively. Excluding the resale value of the homes, the contingent repurchase obligation as of March 2928, ~~2025~~2026 was estimated to be approximately $~~241~~233.97 million. Losses incurred on homes repurchased were immaterial during each of the fiscal years ended March 2928, ~~2025~~2026, March 3029, ~~2024~~2025, and ~~April~~March 130, ~~2023~~2024.

At March 2928, ~~2025~~2026, the Company was contingently obligated for approximately $3127.5 million under letters of credit, primarily consisting of $12.67 million to support long-term debt, $1814.65 million to support the casualty insurance program, and $0.3 million to support bonding agreements. The letters of credit are issued under a sub-facility of the Credit Agreement. The Company was also contingently obligated for $1714.58 million under surety bonds, which generally support performance on long-term construction contracts and license and service bonding requirements.

In the normal course of business, the Company’s former subsidiaries that operated in the United Kingdom historically provided certain guarantees to two customers. Those guarantees provide contractual liability for proven construction defects up to 12 years from the date of delivery of certain products. The guarantees remain a contingent liability of the Company which declines over time through October 2027. As of the date of this report, the Company expects few, if any, claims to be reported under the terms of the guarantees.

Product Liability - Water Intrusion

F-28

~~homes~~Product ~~constructed~~Liability ~~over~~- ~~that~~Water period may be affected. Based on the results of ongoing investigation and repair efforts, the Company has developed and HUD has approved a remediation plan under Subpart I of the HUD code. The plan calls for inspection and repair of affected homes if there is evidence of damage, or procedures to mitigate the opportunity for future damage. The Company recorded charges to execute the remediation plan of $34.5 million during the fourth quarter of fiscal 2024. The Company estimated the charges by establishing a range of total expected costs determined by an actuary using a Monte Carlo simulation. The analysis, which was completed at the end of the fourth quarter of fiscal 2024, resulted in a range of losses between $34.5 million and $85.0 million. The Company was not able to determine a value in the range that was more likely than any other value, and as prescribed by U.S. GAAP, recorded the charge for remediation based on the low end of the range of potential losses. The Company reassessed the total expected costs in the fourth quarter of fiscal 2025 which resulted in no change to the low end of the range of potential losses and reduction in the high end of the range of potential losses to $77.5 million. The Company is monitoring the results of the inspection and repair activities, and may revise the amount of the estimated liability, which could result in an increase or decrease in the estimated liability in future periods. The liability, net of $0.4 million of remediation payments made in fiscal 2025, is included in other current liabilities in the accompanying Consolidated Balance Sheets.Intrusion

~~Based~~The onCompany ~~the~~has received consumer complaints for damages related to water intrusion in homes built in one of its manufacturing facilities prior to fiscal 2022. The Company has investigated, and believes, the cause of the damage is the result of materials that did not perform in accordance with the manufacturer's contractual obligations. The Company has identified that certain homes constructed over that period that may be affected. Based on the results of ongoing investigation ~~into~~and repair efforts, the ~~cause~~Company developed a remediation plan under Subpart I of the ~~water~~HUD ~~intrusion~~code, ~~including~~which ~~third-party~~was ~~testing~~approved in fiscal 2025. The plan called for inspection and repair of affected homes if there is evidence of damage, or procedures to mitigate the ~~material~~opportunity atfor ~~issue~~future damage. As a result of the proposal, the Company ~~believes~~recorded ita ischarge ~~possible~~of ~~that~~$34.5 itmillion ~~will~~during ~~recover~~the ~~some~~fourth orquarter ~~all~~ of fiscal 2024 related to the estimated costs of the planned remediation ~~costs~~efforts. The Company ~~will~~estimated ~~attempt~~the tocharges ~~recover~~by ~~those~~establishing a range of total expected costs ~~from~~determined by an actuary using a Monte Carlo simulation. The analysis, which was completed at the ~~manufacturer~~end of the ~~material~~fourth quarter of fiscal 2024, ~~the~~resulted ~~distributor~~in a range of losses between $34.5 million and $85.0 million. The Company was not able to determine a value in the ~~material~~range that was more likely than any other value, ~~their~~and ~~related~~as ~~insurance~~prescribed ~~providers~~by orU.S. ~~from~~GAAP, recorded the ~~Company's~~charge ~~insurance~~for ~~providers~~remediation based on the low end of the range of potential losses. ~~However~~During fiscal 2026, the Company isreassessed ~~unable~~the total expected remaining estimated costs of the planned remediation efforts and determined, through completed inspection, repair and settlement efforts, that there was sufficient experience such that recording to ~~record~~the anlow ~~offset~~end ~~for~~of ~~any~~a ~~estimated~~range ~~costs~~of atlosses ~~this~~was ~~time~~no longer appropriate. The actuarial analysis completed in ~~accordance~~the ~~with~~fourth Uquarter of fiscal 2026 resulted in a charge of $8.S5 million to increase the remaining estimated liability to $35.6 ~~GAAP~~million at March 28, 2026. The Company will continue to monitor the population of affected homes and the results of the inspection and repair activities, including actual repair costs on the affected homes and the number of affected homes to be repaired, and may revise the amount of the estimated liability, which could result in an increase or decrease in the estimated liability in future periods.

In January 2026, the Company entered into an agreement with the distributor of the roofing material to share certain costs of the remediation. As a result, the Company received $3.5 million cash payment in the fourth quarter of fiscal 2026 and will receive $2.5 million of future purchase credits. Reimbursements are reflected as a reduction to cost of goods sold as cash is received or purchase credits are applied. Additionally, the distributor will reimburse the Company for a portion of future remediation costs which will be both in the form of cash and purchase credits. Such amounts will be reflected as a reduction to cost of goods sold when those purchase credits are applied.

Legal Proceedings

The Company has agreed to indemnify counterparties in the ordinary course of its business in agreements to acquire and sell business assets and in financing arrangements. The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. As of the date of this filing, the Company believes the ultimate liability with respect to these contingent obligations will not have, either individually or in the aggregate, a material adverse effect on the Company’s financial condition, results of operations, or cash flows.

Concentrations

The components and products used in the factory-built housing operations are presently available from a variety of vendors, and the Company is not dependent upon any single supplier. Prices of certain materials, such as lumber, insulation, steel and drywall, can fluctuate significantly due to changes in demand and supply. Additionally, availability of certain materials, such as drywall and insulation, has sometimes been limited, resulting in higher prices and/or the need to find alternative suppliers. The Company generally has been able to pass higher material costs on to its customers in the form of surcharges and price increases.

Sales from the Company's Canadian operations were approximately 4% of consolidated sales for fiscal ~~2025~~2026, 54% in fiscal ~~2024~~2025, and 65% in fiscal ~~2023~~2024. The Company’s Canadian assets were approximately $~~140~~159.21 million and $~~132~~140.42 million at March 2928, ~~2025~~2026 and March 3029, ~~2024~~2025, respectively. The Company has approximately 9,~~000~~300 employees. The Company’s manufacturing facilities in Canada employ approximately ~~770~~700 workers, and most of the workers belong to trade associations that operate under collective bargaining agreements. There are ~~five~~four collective bargaining agreements (one for each Canadian manufacturing facility) and each ~~has a separate expiration date. Four of the agreements~~ are set to expire at various dates through ~~2027~~2028. ~~One agreement expired in June 2024 and is being renegotiated.~~

F-29

Champion Homes, Inc.

Schedule II--Valuation and Qualifying Accounts

(Dollars in millions)

	Balance atBeginningof Period		Additions			Deductions			Other			Balance atEnd of Period
Fiscal Year Ended March 28,2026
Allowance for doubtful accounts	$	1.3	$	2.3		$	(0.3	)	$	—		$	3.3
Valuation allowance for deferred taxes		5.0		0.2			—			—			5.2
Fiscal Year Ended March 29,2025
Allowance for doubtful accounts	$	1.9	$	0.2		$	(0.8	)	$	—		$	1.3
Valuation allowance for deferred taxes		11.7		—			(6.7	)		—			5.0
Fiscal Year Ended March 30,2024
Allowance for doubtful accounts	$	1.7	$	0.6		$	(0.4	)	$	—		$	1.9
Valuation allowance for deferred taxes		12.0		—			(0.3	)		—			11.7
Fiscal Year Ended April 1, 2023
Allowance for doubtful accounts	$	1.7	$	0.3		$	(0.3	)	$	—		$	1.7
Valuation allowance for deferred taxes		12.7		(0.3	)		(0.2	)		(0.2	)		12.0

F-30

Filing Compare · Champion Homes, Inc.