New York, January 30, 2026, 15:48 EST — Regular session
- Cavco Industries (CVCO) shares dropped roughly 19% in afternoon trading
- In fiscal Q3, EPS dropped even though revenue rose, weighed down by tighter housing margins
- Management pointed to weaker industry shipments, shifting attention now to indicators of spring demand
Cavco Industries (CVCO) shares dropped roughly 19% on Friday following weaker quarterly earnings and a forecast of slower industry shipments. The stock slipped $116.47 to $501.03 in afternoon trading.
The drop is significant because Cavco offers a window into factory-built housing demand—a sector that can shift quickly when financing tightens and dealers cut back on inventory. Friday’s decline underscores how investors are zeroing in on margins, not just sales volume, as builders grapple with rising input costs.
Revenue rose, but results still missed expectations—a tough combination for momentum-driven stocks. Analysts expected earnings of $6.26 per share on roughly $593.35 million in revenue, according to consensus data cited by Investing.com. 1
For the fiscal third quarter ended Dec. 27, Cavco reported net revenue climbed 11.3% to $581.0 million. However, diluted earnings per share dipped to $5.58 from $6.90 a year earlier. Gross margin also fell, slipping to 23.4% from 24.9%. 2
Cavco reported that its September purchase of American Homestar Corporation added $42 million in revenue for the quarter but also pushed up costs, including extra selling, general, and administrative expenses. The company bought back roughly $44 million of its own stock during the period and said it still had around $98 million available under existing board authorizations. 3
CEO Bill Boor noted that “industry shipments slowed” this quarter, citing U.S. Department of Housing and Urban Development data on manufactured-home deliveries. To maintain steadier output, the company relied on backlog and holiday downtime. Boor told investors to watch the spring selling season for a clearer read on demand. 4
Finance chief Allison Aden said on a conference call that prices “did not increase enough to offset” rising input costs, which weighed on factory-built housing margins. She told analysts tariffs added about $3 million in costs this quarter and noted the impact is becoming harder to track as suppliers pass on changes unevenly. 5
Cavco’s decline led the sector. Champion Homes shares slid roughly 7.5%, and Legacy Housing dropped close to 1%.
The company reported backlogs of $160 million at the quarter’s close — orders still awaiting production or delivery — equal to about four to six weeks of output. It provides some buffer, though not much if dealer demand cools off once more.
There are obvious risks. Rising input costs or expanded tariffs could force Cavco to choose between holding prices and losing sales. A weak spring selling season would only thin the backlog, pushing factories to ease up and squeezing margins even more.
Investors are turning their attention to upcoming data on rates and consumer demand, beginning with the U.S. jobs report for January set for release on Feb. 6—a key event that frequently alters expectations around interest rates. The next Federal Reserve policy meeting, scheduled for March 17-18, also remains in focus. 6
