Cavco Industries Exceeds Revenue Milestone as Q1 2027 Earnings Show Strong Order Momentum
Cavco Industries, a leading manufacturer of mobile homes, park model RVs, and related products, has reported impressive first-quarter earnings for fiscal year 2027. The company's revenue exceeded $600 million, marking a quarterly record, and its backlog grew by over 50% from the previous quarter.
In his opening remarks, Bill Boor, President and Chief Executive Officer of Cavco Industries, highlighted the strong order momentum that has carried through from March into the first quarter. Despite sequential shipments being up 13%, the company's backlog still increased by more than 50% from last quarter's ending level.
As reported by Bill Boor, Cavco Industries saw a significant increase in orders across all regions, with double-digit growth in every region. This led to a substantial boost in backlogs nationwide, resulting in a Q1 backlog that is 50% higher than a year ago. Last year's comparable period saw a decline in backlogs rather than an increase.
Another key highlight from the quarter was Cavco Industries' record-breaking shipments of 5,657 units, which resulted in a capacity utilization rate of 75%. While this still falls short of levels the company is capable of sustaining, it demonstrates the potential for future growth if strong orders persist.
The company's revenue also showed a significant increase, rising by about 10% both sequentially and year over year. Factory-built gross margin, however, experienced a decline of 40 basis points from last quarter due to increased manufacturing costs and retail pricing pressures.
In terms of financial services, Cavco Industries has seen a notable improvement in loan origination and sales, meeting the company's expectations for growth into future periods. The company's insurance claims operation also exceeded profit expectations and benefited from lower reinsurance costs, with AM Best recently affirming its positive outlook on Cavco Industries' financial strength and issuer credit ratings.
Cavco Industries has leveraged its strong cash generation to invest in planned expansions and strategic projects while continuing to repurchase company stock. This disciplined approach to capital allocation reflects the company's commitment to long-term sustainability and value creation for shareholders.
