Q2 2025 Cavco Industries Inc Earnings Call Transcript
Key Points
- Cavco Industries Inc (CVCO) reported a 12.3% increase in net revenue for the second fiscal quarter of 2025, reaching $507.5 million compared to the previous year.
- Units shipped in the quarter increased by 15.7% over the same period last year, indicating strong demand and operational efficiency.
- The company experienced a 20% growth in backlogs, representing about 8 to 10 weeks of production, suggesting sustained demand.
- Cavco Industries Inc (CVCO) has been authorized an additional $100 million for share repurchases, highlighting a commitment to enhancing shareholder value.
- The company generated $54.7 million in cash from operating activities, reflecting strong cash flow management.
- Hurricane Helene caused a delay in net revenue of approximately $4 million, impacting the second to third quarter transition.
- The company experienced a decrease in average revenue per home sold by 3.1% from the prior year quarter, affecting overall profitability.
- Consolidated gross margin decreased by 80 basis points to 22.9% compared to the same period last year, primarily due to losses in financial services and lower average selling prices.
- Financial Services gross margin as a percentage of revenue decreased significantly from 35.9% to 21.8%, impacted by hurricane-related losses.
- Factory utilization was at 70%, which, although improved, indicates there is still room for operational efficiency gains.
Good day, and thank you for standing by. Welcome to the second quarter fiscal year 2025 Cavco Industries, Inc. earnings call webcast. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mark Fusler, Corporate Controller and Investor Relations. Please go ahead.
Good day, and thank you for joining us for Cavco Industries second quarter fiscal year 2025 earnings conference call. During this call, you'll be hearing from Bill Boor, President and Chief Executive Officer; Allison Aden, Executive Vice President and Chief Financial Officer; and Paul Bigbee, Chief Accounting Officer.
Before we begin, we'd like to remind you that the comments made during this conference call by management may contain forward-looking statements, including statements of expectations or assumptions about Cavco's financial and operational performance, revenues, earnings per share, cash flow or use, cost
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