Cavco Industries Shatters Records in Q4 2026: A Year of Resilience and Growth
Cavco Industries, a leading manufacturer of recreational vehicles and manufactured homes, has announced remarkable results for the fourth quarter of fiscal year 2026. Despite a challenging year for the industry, with total HUD shipments down slightly, Cavco hit an all-time high of 20,842 homes shipped.
Operating income was up 14% in Q4, excluding a $10 million non-cash write-off last year. This impressive performance is a testament to the company's ability to adapt and innovate in response to industry trends. As Bill Boor, President and Chief Executive Officer, highlighted during the conference call, Cavco's peak-to-peak delivery capacity has increased significantly due to plant modernization projects and the acquisition of American Homestar.
The company has also made significant strides in its marketing strategy, rolling out a nationwide product line framework under the Cavco name. This unified branding approach is expected to contribute to market share growth in an industry that is anticipated to expand in the coming years. The success of this initiative is evident in the 8% increase in sequential revenue and 33% rise in operating income compared to last year.
However, Q4 was not without its challenges. Unusual weather conditions across the southern states led to lost production days and market time in January and early February. Despite this setback, Cavco's capacity utilization remained at approximately 70%, with a significant pickup in wholesale orders in March that expanded backlogs late in the quarter.
The company finished Q4 with almost 25% more floors in the backlog than when it started, indicating a strong demand for its products. Average selling price was down about 2% sequentially, primarily due to a mix shift towards single-section homes and a decrease in integrated sales. Nevertheless, product pricing remained flat, and Cavco expressed optimism about retail traffic, wholesale orders, and backlog growth.
The combination of these positive signals presents Cavco with an opportunity to push production where lower backlogs had previously constrained its plants. As the company looks to build on this momentum, investors and industry observers alike will be watching closely for further developments in Q1 2027 and beyond.
