Legacy Housing Corporation Records Strong Q2 2026 Results
Legacy Housing Corporation, one of the largest producers of manufactured homes in the country, has reported a strong second quarter 2026 performance. The company's total net revenue for the quarter reached $66.3 million, representing a significant increase of 32.3% compared to the same period last year.
In addition to its impressive revenue growth, Legacy Housing also experienced substantial gains in net income and diluted earnings per share. Net income grew to $23.5 million from $14.7 million in the second quarter of 2025, a nearly 60% increase, while diluted earnings per share came in at $0.99, up from $0.60 in the same period last year.
The company's product sales were a major driver of its success, with revenues reaching $53.8 million, a 40% increase over the previous year. This growth was largely fueled by an increased number of units shipped, which rose to 718 from 564 in the second quarter of 2025, representing a significant 27.3% increase. Furthermore, net revenue per unit also showed a notable rise, increasing to approximately $74,900 from $68,100, reflecting a shift towards higher value homes.
A key factor contributing to this growth was the commencement of deliveries under Legacy Housing's large workforce housing order, with 113 units shipped against a 380-unit contract. Additionally, commercial sales to mobile home parks saw a notable increase of about 12.5%, although these gains were partially offset by modestly lower direct and retail store sales.
Legacy Housing's loan portfolio interest income also demonstrated growth, reaching $11.5 million, up 5.4% from the same period last year. This increase was primarily driven by the company's consumer book. At quarter-end, Legacy Housing's consumer loan portfolio stood at approximately $202.2 million, notes receivable from mobile home parks at about $209 million, and dealer inventory finance receivables at around $23.2 million.
On the expense side, cost of product sales rose 29.2%, in line with higher unit volumes, including deliveries under the Workforce Housing Order. Selling, General, and Administrative expense was $6.9 million, up 21.1%, driven mainly by higher professional and consulting fees, higher Heritage Housing payroll, and higher service and warranty costs, partially offset by lower incentive compensation and property taxes.
In a related note, Legacy Housing has made the decision to present the provision for loan loss as a separate line item rather than within SG&A. This change reflects favorable portfolio performance, with the provision resulting in a benefit of about $600,000 this quarter compared to an expense of $1.1 million a year ago.
The company's effective tax rate for the quarter was 11.2%, down from 17.3% in the same period last year and the statutory rate of 21%. This decrease is attributed to the Federal Energy-Efficient Home Tax Credit, known as Section 45L, as well as the reversal of certain uncertain tax position accruals during the quarter.
