The following is a summary of the Cavco Industries, Inc. (CVCO) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Cavco Industries reported a net revenue of $507.5 million in Q2 2025, a 12.3% increase year-over-year.

• Capacity utilization improved from 65% to around 70-75%, and gross margin for the quarter was 22.9%.

• Net income for stockholders was $43.8 million, with diluted earnings per share at $5.28.

• The company engaged in a sizable share repurchase, spending $44 million in the quarter under the program, with an additional $100 million authorized for future repurchases.

Business Progress:

• The company increased production with units shipped up 15.7% over the previous year and backlogs growing by approximately 20%.

• Post-hurricane recovery efforts minimized operational downtime in affected areas, showcasing strong organizational resilience.

• Cavco is seeing a continued recovery in the housing market, with sequential improvements across dealer, community, and builder developer channels.

Opportunities:

• There is potential for increased demand from catastrophe recovery efforts in storm-affected regions, possibly including orders from FEMA or state housing relief efforts.

• Continued growth in community and developer order rates reflects a market rebound which may present further sales opportunities.

Risks:

• The hurricanes and their aftermath caused operational disruptions, though they were effectively managed.

• The fluctuating average selling prices (ASPs) and regional market recoveries, especially in Florida, pose ongoing challenges to maintaining stable growth rates.

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