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1. Company Snapshot

1.a. Company Description

Skyline Champion Corporation produces and sells factory-built housing in North America.The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors.It builds homes under the Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes brands in the United States; and Moduline and SRI Homes brand names in western Canada.


The company also provides construction services to install and set-up factory-built homes; operates Titan Factory Direct, a factory-direct manufactured home retail business with 18 sales centers in the southern United States; and engages in the transportation of manufactured homes and recreational vehicles.The company was founded in 2010 and is headquartered in Troy, Michigan.

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1.b. Last Insights on SKY

Champion Homes' recent performance was driven by strong Q2 fiscal 2026 earnings, with net sales increasing 11% to $684.4 million and US homes sold rising 3.4% to 6,575. The company's backlog grew 3.5% to $313.2 million. Earnings per share came in at $1.01, beating estimates. A double-digit increase in net sales contributed to the positive results. The company also announced a partnership with Greater Cleveland Habitat for Humanity to donate a modular home, highlighting its commitment to affordable housing.

1.c. Company Highlights

2. Champion Homes' Q2 Earnings: A Strong Performance

Champion Homes reported a robust second quarter, with net sales increasing 11% to $684 million, driven by a 4% rise in homes sold to 6,771 units. The company's gross margin expanded to 27.5%, a 50 basis point increase from the prior year period, resulting in a 13% growth in consolidated gross profit to $188 million. Earnings per diluted share came in at $1.03, beating estimates of $0.81, with net income attributable to Champion Homes increasing by $3 million to $58 million.

Publication Date: Nov -08

📋 Highlights
  • Revenue Growth:: Net sales increased 11% to $684 million, driven by strong performance in company-owned and independent retail channels.
  • Gross Margin Expansion:: Gross margin expanded to 27.5%, a 50-basis-point increase, with consolidated gross profit rising 13% to $188 million.
  • Home Sales:: U.S. homes sold grew 3% to 6,575 units, reflecting demand for multi-section homes and product innovation.
  • Backlog Strength:: Manufacturing backlog rose 4% sequentially to $313 million, with an 8-week average backlog across markets.
  • Earnings Improvement:: Net income attributable to Champion Homes rose to $58 million ($1.03 EPS), up from $55 million ($0.94 EPS) in the prior year.

Operational Highlights

The company's manufacturing backlog stood at $313 million, up 4% sequentially, indicating a steady demand for its products. According to Timothy Larson, "We continued innovating and differentiating products and services by customer segment and at the right price value." The company is also seeing a shift towards multi-section homes, driven by new products that cater to buyers looking for more space and square footage.

Legislative Developments

Champion Homes is preparing for potential changes in legislation, including the ROAD to Housing Act, which aims to reduce the cost of manufactured homes by $15,000. Larson noted that the company's product development teams are evolving and innovating to stay ahead of these potential changes, which could lead to new product opportunities and a broader trend of increased off-site build visibility.

Valuation and Outlook

With a P/E Ratio of 20.94 and an EV/EBITDA of 13.16, the market appears to be pricing in a moderate growth trajectory for Champion Homes. Analysts estimate next year's revenue growth at 6.0%, which is relatively in line with the company's historical performance. The company's strong Q2 earnings and promising outlook suggest that it is well-positioned to navigate the dynamic macro and consumer environment.

Market Trends

The company is seeing a stronger consumer response in the Northeast and Southeast markets, with the West experiencing some moderation. Larson attributed this to a combination of inherent demand and supply-driven factors, including the availability of entry-level new homes and existing home inventory. The company's community channel is expected to moderate, while the retail channels, including independents and captive, performed stronger through the quarter.

3. NewsRoom

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Champion Homes Appoints Dave McKinstray as EVP, Chief Financial Officer and Treasurer

Dec -02

Source: businesswire.com

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Commonwealth of Pennsylvania Public School Empls Retrmt SYS Has $847,000 Stock Position in Champion Homes, Inc. $SKY

Nov -25

Source: defenseworld.net

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SKY Network Television Limited (SYKWF) Shareholder/Analyst Call Transcript

Nov -21

Source: seekingalpha.com

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Third Avenue Management Exits Deutsche Bank AG, Impacting Portfolio by -6.22%

Nov -14

Source: gurufocus.com

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Why Champion Homes Stock Triumphed Today

Nov -05

Source: fool.com

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Champion Homes, Inc. (SKY) Q2 2026 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Champion Homes (SKY) Q2 Earnings and Revenues Top Estimates

Nov -05

Source: zacks.com

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Champion Homes Announces Second Quarter Fiscal 2026 Results

Nov -04

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.16%)

6. Segments

United States Factory-built Housing

Expected Growth: 1.2%

The 1.2% growth in United States Factory-built Housing from Skyline Champion Corporation is driven by increasing demand for affordable housing, government initiatives to promote affordable housing, and rising popularity of modular homes. Additionally, the company's strategic expansion into new markets, cost-saving initiatives, and innovative product offerings have contributed to the growth.

Canadian Factory-built Housing

Expected Growth: 0.8%

The 0.8 growth rate of Canadian Factory-built Housing from Skyline Champion Corporation is driven by increasing demand for affordable housing, government incentives for eco-friendly modular homes, and a shortage of skilled labor in traditional construction. Additionally, the company's strategic expansion into Western Canada and partnerships with local builders have contributed to this growth.

Corporate/Other

Expected Growth: 0.5%

The 0.5 growth in Corporate/Other segment of Skyline Champion Corporation is driven by increased investments in technology and process improvements, leading to enhanced operational efficiency and cost savings. Additionally, the company's focus on strategic acquisitions and partnerships has contributed to the growth, along with favorable market conditions and a strong balance sheet.

7. Detailed Products

Manufactured Homes

Skyline Champion Corporation offers a wide range of manufactured homes, designed to provide affordable and comfortable living solutions for individuals and families.

Modular Homes

The company's modular homes offer a flexible and efficient way to build custom homes, with the ability to design and construct homes in a factory-controlled environment.

Park Model RVs

Skyline Champion's park model RVs are designed for recreational use, providing a comfortable and convenient way to enjoy outdoor activities.

Tiny Homes

The company's tiny homes offer a compact and efficient living solution, perfect for those who want to downsize or live more simply.

Commercial Modular Buildings

Skyline Champion's commercial modular buildings provide a flexible and efficient way to construct commercial buildings, such as offices, schools, and healthcare facilities.

8. Skyline Champion Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Skyline Champion Corporation is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is low for Skyline Champion Corporation due to the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Skyline Champion Corporation due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants is high for Skyline Champion Corporation due to the low barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry is high for Skyline Champion Corporation due to the presence of several competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.54%
Debt Cost 11.64%
Equity Weight 92.46%
Equity Cost 11.64%
WACC 11.64%
Leverage 8.15%

11. Quality Control: Skyline Champion Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Taylor Morrison

A-Score: 5.4/10

Value: 7.9

Growth: 5.7

Quality: 7.2

Yield: 0.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Green Brick Partners

A-Score: 5.4/10

Value: 6.5

Growth: 8.4

Quality: 7.9

Yield: 0.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Tri Pointe Homes

A-Score: 5.2/10

Value: 8.4

Growth: 8.2

Quality: 6.4

Yield: 0.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Century Communities

A-Score: 4.9/10

Value: 7.8

Growth: 7.6

Quality: 4.6

Yield: 3.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Skyline Champion

A-Score: 4.1/10

Value: 4.7

Growth: 6.8

Quality: 6.9

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Dream Finders Homes

A-Score: 4.0/10

Value: 6.8

Growth: 6.4

Quality: 5.4

Yield: 0.0

Momentum: 2.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

84.49$

Current Price

84.5$

Potential

-0.00%

Expected Cash-Flows