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What changed in Champion Homes, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Champion Homes, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+231 added−234 removedSource: 10-K (2025-05-27) vs 10-K (2024-05-29)

Top changes in Champion Homes, Inc.'s 2025 10-K

231 paragraphs added · 234 removed · 187 edited across 4 sections

Item 1. Business

Business — how the company describes what it does

55 edited+10 added−24 removed56 unchanged
Biggest changeSeparate from the GSE involvement in chattel markets, there have been several secondary market chattel private placement offerings over the last three years. Although some limited progress has been made in this area, a meaningful positive impact in the form of increased home orders has yet to be realized.
Biggest changeBoth Fannie Mae and Freddie Mac indicated they would continue to work with regulators on the safety, soundness, and viability of a chattel loan pilot program. Separate from the GSE involvement in chattel markets, there have been several secondary market chattel private placement offerings over the last three years.
Recently, we have seen market trends pointing to increased sales of ADUs as well as people seeking rent-to-own single-family options. Financing Commercial Financing. Independent retailers of factory-built homes generally finance their inventory purchases from manufacturers with floor plan financing provided by third-party lending institutions and secured by a lien on the homes.
Recently, we have seen market trends pointing to increased sales of ADUs as well as people seeking rent-to-own single-family options. 8 Financing Commercial Financing. Independent retailers of factory-built homes generally finance their inventory purchases from manufacturers with floor plan financing provided by third-party lending institutions and secured by a lien on the homes.
These homes are designed to be eligible for financing programs with terms similar to traditional mortgages which make them attractive to the builder/developer segment of the housing market. We expect our builder/developer customer base to continue to grow as those customers realize the value proposition these homes provide compared to other site-built alternatives.
These homes are designed to be eligible for financing programs with terms similar to traditional mortgages which make them 6 attractive to the builder/developer segment of the housing market. We expect our builder/developer customer base to continue to grow as those customers realize the value proposition these homes provide compared to other site-built alternatives.
We believe that the high quality and broad scope of our product and service offerings provide us a competitive advantage relative to other factory-built and certain site-built homes. With our award-winning product designs, we seek to meet the needs of our localized customers, while also providing them with an array of pre-designed options.
We believe that the high quality and broad scope of our product and service offerings provide us a competitive advantage relative to other factory-built and certain site-built homes. With our award-winning product designs, we seek to meet the needs of our customers, while also providing them with an array of pre-designed options.
The 6 single-family homes that we manufacture generally range in size from 400 to 4,000 square feet and typically include two to four bedrooms, a living room or family room, a dining room, a kitchen and typically two full bathrooms. We also build park model RVs and cabins for resorts and campgrounds, and ADUs for backyard or recreational living.
The single-family homes that we manufacture generally range in size from 400 to 4,000 square feet and typically include two to four bedrooms, a living room or family room, a dining room, a kitchen and typically two full bathrooms. We also build park model RVs and cabins for resorts and campgrounds, and ADUs for backyard or recreational living.
Customers may purchase a home from an inventory of homes maintained at the location, including a model home, or may order a home that will be built to their specifications. Our retail organization provides industry leadership with the expertise to be responsive to local economic conditions and ultimately provide affordable homes to value-conscious homebuyers.
Customers may purchase a home from an inventory of homes maintained at the location, including a model home, or may order a home that will be built to their specifications. 7 Our retail organization provides industry leadership with the expertise to be responsive to local economic conditions and ultimately provide affordable homes to value-conscious homebuyers.
We believe that we maintained the following leading positions in the factory-built housing industry in the United States and western Canada (based on units) in calendar year 2023: • Number two position in the manufactured housing segment in the United States • Number one modular builder in the United States • A leading position in western Canada • A leading position in park model RV sales We believe our leading positions are driven by our comprehensive product offering, strong brand reputation, broad manufacturing footprint, and our complementary retail, construction services, and logistics businesses.
We believe that we maintained the following leading positions in the factory-built housing industry in the United States and western Canada (based on units) in calendar year 2024: • Number two position in the manufactured housing segment in the United States • Number one modular builder in the United States • A leading position in western Canada • A leading position in park model RV sales We believe our leading positions are driven by our comprehensive product offering, strong brand reputation, broad manufacturing footprint, and our complementary retail, construction services, and logistics businesses.
As a result, most of the retailers and builders/developers we sell to are 7 located within a 500-mile radius of our manufacturing plants.
As a result, most of the retailers and builders/developers we sell to are located within a 500-mile radius of our manufacturing plants.
We offer a wide selection of manufactured and modular homes as well as park model RVs at company-owned retail locations marketed under the Regional Homes, Titan Factory Direct and Champion Homes Center brands. We maintain our company-owned retail presence through 74 retail sales centers across the U.S.
We offer a wide selection of manufactured and modular homes as well as park model RVs at company-owned retail locations marketed under the Regional Homes, Titan Factory Direct and Champion Homes Center brands. We maintain our company-owned retail presence through 72 retail sales centers across the U.S.
Available Information Our website address is www.skylinechampion.com and we make available, free of charge, on or through our website all of our periodic reports, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and current reports on Form 8-K, as soon as reasonably practicable after we file such reports with the SEC. 10
Available Information Our website address is www.championhomes.com and we make available, free of charge, on or through our website all of our periodic reports, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and current reports on Form 8-K, as soon as reasonably practicable after we file such reports with the SEC. 10
Our principal executive offices are located at 755 West Big Beaver Road, Suite 1000, Troy, Michigan 48084. Our website is located at www.skylinechampion.com. Our website and the information contained on our website is not incorporated by reference and is not a part of this Annual Report.
Our principal executive offices are located at 755 West Big Beaver Road, Suite 1000, Troy, Michigan 48084. Our website is located at www.championhomes.com. Our website and the information contained on our website is not incorporated by reference and is not a part of this Annual Report.
Many of our manufacturing facilities participate locally to support programs such as Habitat for Humanity and other local charities as well as work-study programs with local community colleges and high schools. Skyline Champion is committed to ensuring sound corporate governance.
Many of our manufacturing facilities participate locally to support programs such as Habitat for Humanity and other local charities as well as work-study programs with local community colleges and high schools. Champion Homes is committed to ensuring sound corporate governance.
We strive to maintain strong governance practices that protect and enhance accountability for the benefit of Skyline Champion, its shareholders, customers, employees and other business stakeholders. We regularly review and refine our governance practices and policies to align with evolving issues.
We strive to maintain strong governance practices that protect and enhance accountability for the benefit of Champion Homes, its shareholders, customers, employees and other business stakeholders. We regularly review and refine our governance practices and policies to align with evolving issues.
Our five ESG tenets include: (1) Environmental Focus, (2) Health & Safety, (3) Human Capital, (4) Community Outreach, and (5) Governance. Skyline Champion manages its operations to minimize resource consumption and environmental impacts.
Our five ESG tenets include: (1) Environmental Focus, (2) Health & Safety, (3) Human Capital, (4) Community Outreach, and (5) Governance. Champion Homes manages its operations to minimize resource consumption and environmental impacts.
Through this partnership, we have planted more than one million trees since 2021. Reforestation contributes to the environment by replenishing forests, reducing greenhouses gases ("GHG") emissions, and protecting local watersheds.
Through this partnership, we have planted more than one million trees since 2021. Reforestation contributes to the environment by replenishing forests, reducing greenhouse gases ("GHG") emissions, and protecting local watersheds.
We build homes under some of the most well-known brand names in the factory-built housing industry including Skyline Homes, Champion Homes, Genesis Homes, Regional Homes, Athens Park, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, All American Homes, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada.
We build homes under some of the most well-known brand names in the factory-built housing industry including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, J. Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada.
According to statistics published by the Institute for Building Technology and Safety ("IBTS") and the United States Department of Commerce, Bureau of the Census, for the 2023 calendar year, manufactured housing wholesale shipments of homes constructed in accordance with the HUD code accounted for an estimated 9% of all new single-family homes starts.
According to statistics published by the Institute for Building Technology and Safety ("IBTS") and the United States Department of Commerce, Bureau of the Census, for the 2024 calendar year, manufactured housing wholesale shipments of homes constructed in accordance with the HUD code accounted for an estimated 9.5% of all new single-family homes starts.
We offer a leading portfolio of manufactured and modular homes, park model RVs, accessory dwelling units (“ADUs”) and modular buildings for the multi-family market. Our facilities are strategically located to serve strong regions in the United States and western Canada.
We offer a leading portfolio of manufactured and modular homes, park model RVs, accessory dwelling units (“ADUs”) and modular buildings for the single and multi-family markets. Our facilities are strategically located to serve strong regions in the United States and western Canada.
We are also very active in the design and construction of energy-efficient homes and built over 1,600 homes last year that met the Energy Star® certification standards. We offer our Genesis brand of homes which have features similar to site-built home amenities such as porches and garages.
We are also very active in the design and construction of energy-efficient homes and built over 5,500 homes last year that met the Energy Star® certification standards. We offer our Genesis brand of homes which have features similar to site-built home amenities such as porches and garages.
ITEM 1. B USINESS General Overview Skyline Champion Corporation, an Indiana corporation, and its consolidated subsidiaries are referred to herein as "Skyline Champion," "us," "we," "our," the "Company," and any other similar terms, unless otherwise indicated in this Annual Report.
ITEM 1. B USINESS General Overview Champion Homes, Inc., formerly known as Skyline Champion Corporation, an Indiana corporation, and its consolidated subsidiaries are referred to herein as "Champion Homes," "us," "we," "our," the "Company," and any other similar terms, unless otherwise indicated in this Annual Report.
Fannie Mae and Freddie Mac released their final Underserved Markets Plan for 2022 – 2024 that describes, with specificity, the actions they will take over that three-year period to fulfill the DTS obligation. These plans became effective on January 1, 2022.
Fannie Mae and Freddie Mac released their final Underserved Markets Plan for 2025 – 2027 that describes, with specificity, the actions they will take over that three-year period to fulfill the DTS obligation. These plans became effective on January 1, 2025.
During fiscal 2024, approximately 35% of our sales to independent retailers were financed under floor plan agreements with national lenders, while the remaining 65% were financed under various arrangements with local or regional banks or paid in cash. We generally receive payment from the lending institution 5 to 10 days after a home is sold and invoiced. Consumer Financing.
During fiscal 2025, approximately 32% of our sales to independent retailers were financed under floor plan agreements with national lenders, while the remaining 68% were financed under various arrangements with local or regional banks or paid in cash. We generally receive payment from the lending institution 5 to 10 days after a home is sold and invoiced. Consumer Financing.
We are proud of the strong relationship we maintain with our employees and seek to support them through competitive compensation packages and a comprehensive suite of benefits. As of March 30, 2024, our manufacturing facilities in Canada employed approximately 700 workers of which the majority belong to trade associations that operate under collective bargaining agreements.
We are proud of the strong relationship we maintain with our employees and seek to support them through competitive compensation packages and a comprehensive suite of benefits. As of March 29, 2025, our manufacturing facilities in Canada employed approximately 750 workers of which the majority belong to trade associations that operate under collective bargaining agreements.
As a result, home ownership became less affordable and incoming orders began to decrease. As interest rates stabilized in fiscal 2024, we saw a corresponding increase in our customer orders.
As a result, home ownership became less affordable and incoming orders began to decrease. As interest rates stabilized in fiscal 2024, we saw a corresponding increase in our customer orders which continued through fiscal 2025.
The DTS plans also explored the potential for the GSEs to provide liquidity to the chattel lending market. The GSEs could potentially serve as additional sources of funding as there is unmet demand in the chattel loan industry, and GSE involvement could increase volume substantially.
The DTS plans also considered but did not include the potential for the GSEs to provide liquidity to the chattel lending market. The GSEs could potentially serve as additional sources of funding as there is unmet demand in the chattel loan industry, and GSE involvement could increase volume substantially.
We operated 19 manufacturing facilities in the top ten states with the highest number of manufactured homes shipped in fiscal 2024.
We operated 20 manufacturing facilities in the top ten states with the highest number of manufactured homes shipped in fiscal 2025.
Additional information on our Corporate Governance policies can be found in our Proxy Statement filed with the SEC. 5 Human Capital and Diversity The Skyline Champion team manages our business in accordance with the Company’s Core Operating Principles: • Build and develop exceptional teams • Create a safe work environment • Build strong relationships • Take pride in our craftsmanship • Act with integrity and respect • Be open and honest • Run the business like it is your own We appreciate each member of the Skyline Champion team and the unique skills and diversity of thought that each employee contributes to the overall success of the Company.
Human Capital The Champion Homes team manages our business in accordance with the Company’s Core Operating Principles: • Build and develop exceptional teams • Create a safe work environment • Build strong relationships • Take pride in our craftsmanship • Act with integrity and respect • Be open and honest 5 • Run the business like it is your own We appreciate each member of the Champion Homes team and the unique skills and diversity of thought that each employee contributes to the overall success of the Company.
According to data reported by the Manufactured Housing Institute (“MHI”), industry manufactured home shipments were 92,288, 104,374, and 108,964 units during fiscal 2024, 2023, and 2022, respectively.
According to data reported by the Manufactured Housing Institute (“MHI”), industry manufactured home shipments were 105,206, 92,288, and 104,374 units during fiscal 2025, 2024, and 2023, respectively.
At March 30, 2024, we had a manufacturing backlog of home orders with wholesale sales value of approximately $315.8 million. After production of a particular home has commenced, the order becomes noncancelable and the customer is obligated to take delivery of the home.
At March 29, 2025, we had a manufacturing backlog of home orders with wholesale sales value of approximately $343.4 million. After production of a particular home has commenced, the order becomes noncancelable and the customer is obligated to take delivery of the home.
The maximum amount of our contingent obligations under such repurchase agreements was approximately $296.3 million as of March 30, 2024. The risk of loss under these agreements is spread over many retailers and is further reduced by the resale value of the homes.
The maximum amount of our contingent obligations under such repurchase agreements was approximately $241.9 million as of March 29, 2025. The risk of loss under these agreements is spread over many retailers and is further reduced by the resale value of the homes.
We are a leading producer of factory-built housing in North America with net sales for the year ended March 30, 2024 (“fiscal 2024”) of approximately $2.0 billion. We have more than 70 years of homebuilding experience, approximately 8,600 employees and 48 manufacturing facilities located in 20 states across the United States and three provinces in western Canada.
We are a leading producer of factory-built housing in North America with net sales for the year ended March 29, 2025 (“fiscal 2025”) of approximately $2.5 billion. We have more than 70 years of homebuilding experience, approximately 9,000 employees and 48 manufacturing facilities located in 20 states across the United States and three provinces in western Canada.
During fiscal 2024, the average selling price of our factory-built homes in the U.S. was $90,000 and in Canada was $122,400. Manufactured home wholesale prices generally ranged from $30,000 to over $350,000. Retail sales prices of the homes, without land, generally ranged from $40,000 to over $400,000, depending upon size, floor plan, features, and options.
During fiscal 2025, the average selling price of our factory-built homes in the U.S. was $93,300 and in Canada was $120,000. Manufactured home wholesale prices generally ranged from $25,000 to over $400,000. Retail sales prices of the homes, without land, generally ranged from $30,000 to over $450,000, depending upon size, floor plan, features, and options.
Our market share in the United States total housing market is approximately 2.1% in fiscal 2024. We design and build a range of manufactured and modular homes, park model RVs and cabins, ADUs, and commercial structures.
Our market share in the United States total housing market was approximately 2.5% in fiscal 2025. We design and build a range of manufactured and modular homes, park model RVs, cabins and ADUs.
Manufactured and modular homes cost up to 50% less per square foot than conventional site-built homes, expanding the opportunity for individuals to own a home despite an ever-growing housing affordability gap.
Our Sustainability Report is published on our website at www.championhomes.com. Manufactured and modular homes cost up to 50% less per square foot than conventional site-built homes, expanding the opportunity for individuals to own a home despite an ever-growing housing affordability gap.
We provide a variety of Company sponsored healthcare programs, including health, dental, and vision, that allow employees to manage their and their family's health and wellbeing. We expect each employee to follow our safety standards and protocols. Our Environmental Health and Safety (“EHS”) team works to benchmark and implement EHS best practices across our plants.
We take the health and safety of our employees seriously. We provide a variety of Company sponsored healthcare programs, including health, dental, and vision, that allow employees to manage their and their family's health and wellbeing. We expect each employee to follow our safety standards and protocols.
Skyline Champion’s Corporate Governance Guidelines, the charters of committees of our Board and our Code of Conduct can be found in the Governance Documents section under the Governance tab on our website at www.skylinechampion.com.
Our Corporate Governance Guidelines, the charters of committees of our Board and our Code of Conduct can be found in the Governance Documents section under the Governance tab on our website at www.championhomes.com. Additional information on our Corporate Governance policies can be found in our Proxy Statement filed with the SEC.
A copy of our Anti-Human Trafficking Policy is available within the Governance section of our website at www.skylinechampion.com. We have built a diverse team with a wide range of experiences. As of March 30, 2024, we employed approximately 8,600 full and part time employees. Our human capital resource objectives include identifying, recruiting, training, retaining and incentivizing our employees.
A copy of our Anti-Human Trafficking Policy is available within the Governance section of our website at www.championhomes.com. As of March 29, 2025, we employed approximately 9,000 full and part time employees. Our human capital resource objectives include identifying, recruiting, training, retaining and incentivizing our employees.
We believe higher-priced, multi-section manufactured and modular homes are attractive to households with higher incomes as an alternative to rental housing and condominiums and are well suited to meet the needs of the retiree buyer in many markets. 8 The two largest manufactured housing consumer demographics are Millennials (generally defined as those born between 1981 – 1996) and Baby Boomers (generally defined as those born between 1946 – 1964).
We believe higher-priced, multi-section manufactured and modular homes are attractive to households with higher incomes as an alternative to rental housing and condominiums and are well suited to meet the needs of the retiree buyer in many markets.
We do not tolerate discrimination or harassment of any kind including but not limited to discrimination or harassment on the basis of gender identity, race, religion, age or disabilities. We are committed to the development of our employees.
We strive for an inclusive environment and reward individual contributions that foster innovative ideas for improving our products and workplace. We do not tolerate discrimination or harassment of any kind, including, but not limited to discrimination or harassment on the basis of gender identity, race, religion, age or disabilities. We are committed to the development of our employees.
We produce a broad range of manufactured and modular homes under a variety of brand names and in a variety of floor plans and price ranges. While most of the homes we build are single-family, multi-section, ranch-style homes, we also build two-story and single-section homes, as well as multi-family units such as town homes, apartments, duplexes, and triplexes.
While most of the homes we build are single-family, multi-section, ranch-style homes, we also build two-story and single-section homes, as well as multi-family units such as town homes, apartments, duplexes, and triplexes.
Certain of these competitors may possess greater financial, manufacturing, distribution, and marketing resources. Government Regulation Our manufactured homes are subject to numerous federal, state and local laws, codes and regulations.
There are a number of other national and regional manufacturers competing for a significant share of the manufactured housing market in the U.S. Certain of these competitors may possess greater financial, manufacturing, distribution, and marketing resources. Government Regulation Our manufactured homes are subject to numerous federal, state and local laws, codes and regulations.
The GSEs' Underserved Markets Plan's current areas of focus are as follows: 1) purchase more loans used to finance manufactured homes titled as real property; 2) enhance current products and create new offerings; and 3) enhance tenant protections in manufactured housing communities.
The GSEs' Underserved Markets Plan's current areas of focus are as follows: 1) purchase more loans used to finance manufactured homes titled as real property; 2) expand adoption of conventional financing for manufactured homes; and 3) expand policies that preserve affordability of manufactured homes.
In addition, manufactured homes compete with new and existing site-built homes, as well as apartments, townhouses, and condominiums. Collectively, manufactured housing represents approximately 9% of annual U.S. single family home starts. There are a number of other national and regional manufacturers competing for a significant share of the manufactured housing market in the U.S.
We compete with the other producers of manufactured homes, as well as companies selling homes repossessed from wholesalers or consumers. In addition, manufactured homes compete with new and existing site-built homes, as well as apartments, townhouses, and condominiums. Collectively, manufactured housing represents approximately 9.5% of annual U.S. single family home starts.
Millennials are generally first-time home buyers who may be attracted by the affordability and diversity of style choices of factory-built homes.
The two largest manufactured housing consumer demographics are Millennials (generally defined as those born between 1981 – 1996) and Baby Boomers (generally defined as those born between 1946 – 1964). Millennials are generally first-time home buyers who may be attracted by the affordability and diversity of style choices of factory-built homes.
We make available on our website, as soon as reasonably practicable, all of the reports required to be filed with the SEC. Our SEC filings are also available to the public on the SEC’s website at www.sec.gov.
We make available on our website, as soon as reasonably practicable, all of the reports required to be filed with the SEC. The SEC also maintains a website (www.sec.gov) containing reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.
We believe those product offerings will facilitate further growth and help us capture a greater share of the market. Environmental, Social and Governance (“ESG”) We demonstrate our commitment to ESG through company-wide and plant-specific programs and through our everyday business practices when providing high-quality, yet affordable homes to U.S. and Canadian homebuyers.
Environmental, Social and Governance (“ESG”) We demonstrate our commitment to ESG through company-wide and plant-specific programs and through our everyday business practices when providing high-quality, yet affordable homes to U.S. and Canadian homebuyers. As part of this commitment, we have partnered with a third party to inform, develop, and formalize our ESG strategy.
In addition to our core home-building business, we provide construction services to install and set-up factory-built homes; we operate a factory-direct manufactured home retail business, marketed under the Regional Homes, Titan Factory Direct and Champion Homes Center brands, with 74 sales centers spanning the United States at the end of fiscal 2024; and we operate Star Fleet Trucking, which provides transportation services to the manufactured housing and other industries from several dispatch locations across the United States.
In addition to our core home-building business, we operate a factory-direct manufactured home retail business, marketed under the Regional Homes, Titan Factory Direct and Champion Homes Center brands. We had 72 active sales centers spanning the United States at the end of fiscal 2025.
We also maintain an anti-retaliation policy such that any employee who reports a concern in good faith is protected from harassment, retaliation or adverse employment consequences. We take the health and safety of our employees seriously.
We encourage employees to report concerns through a variety of channels, including a compliance and ethics line which allows for anonymous reporting. All reports are investigated and resolved. We also maintain an anti-retaliation policy such that any employee who reports a concern in good faith is protected from harassment, retaliation or adverse employment consequences.
According to MHI, in March 2024, there were 36 producers of manufactured homes in the U.S. operating an estimated 148 production facilities. For calendar 2023, the top three companies had a combined market share for HUD code homes of approximately 80%. We estimate that there were approximately 3,000 industry retail locations operating throughout the U.S. during calendar 2023.
Capital requirements for entry into the industry are relatively low. Factory-built housing is also very competitive. According to MHI, in March 2025, there were 38 producers of manufactured homes in the U.S. operating an estimated 152 production facilities. For calendar 2024, the top three companies had a combined market share for HUD code homes of approximately 85%.
We have adopted a written Code of Business Conduct and have a company wide training program to train and assist employees in this regard. We encourage employees to report concerns through a variety of channels, including a compliance and ethics line which allows for anonymous reporting. All reports are investigated and resolved.
We are committed to conducting our business with integrity and in compliance with all applicable laws of the cities, states and countries in which we operate. We have adopted a written Code of Business Conduct and have a company-wide training program to train and assist employees in this regard.
Factory-Built Housing A majority of our manufactured products are constructed in accordance with the regulations and rules of the U.S. Department of Housing and Urban Development (“HUD”) and the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended ("HUD code").
In addition to training and development, we measure and report monthly safety metrics and regularly review our safety performance with our Board of Directors. Factory-Built Housing A majority of our manufactured products are constructed in accordance with the regulations and rules of the U.S.
Based on industry data reported by IBTS, in fiscal 2024 our U.S. wholesale market share of HUD code homes sold was 19.9%, compared to 20.4% in fiscal 2023. We compete with the other producers of manufactured homes, as well as companies selling homes repossessed from wholesalers or consumers.
We estimate that there were approximately 2,500 industry retail locations operating throughout the U.S. during calendar 2024. Based on industry data reported by IBTS, in fiscal 2025 our U.S. wholesale market share of HUD code homes sold was 22.0%, compared to 19.9% in fiscal 2024.
Each of our locations performs regular safety audits to ensure that proper safety policies are in place and appropriate safety training is provided. In addition to training and development, we measure and report monthly safety metrics and regularly review our safety performance with our Board of Directors.
Our Environmental Health and Safety (“EHS”) team works to benchmark and implement EHS best practices across our plants. Each of our locations performs regular safety audits to ensure that proper safety policies are in place and appropriate safety training is provided.
There are five collective bargaining agreements (one for each Canadian manufacturing facility) and each has separate expiration dates. The agreements are set to expire at various dates between May 2024 and November 2026. We are committed to conducting our business with integrity and in compliance with all applicable laws of the cities, states and countries in which we operate.
There are five collective bargaining agreements (one for each Canadian manufacturing facility) and each has a separate expiration date. Four of the agreements are set to expire at various dates through 2027. One agreement expired in June 2024 and is being renegotiated.
Competition The housing industry is highly competitive based upon several factors, including price, product features, reputation for service and quality, depth of distribution or location, and financing. Capital requirements for entry into the industry are relatively low. Factory-built housing is also very competitive.
Although some limited progress has been made in this area, a meaningful positive impact in the form of increased home orders has yet to be realized. 9 Competition The housing industry is highly competitive based upon several factors, including price, product features, reputation for service and quality, depth of distribution or location, and financing.
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Business Strategy We will continue to pursue opportunities to grow revenue and earnings by constructing quality-built, sustainable, and innovatively designed homes and other modular structures in an environmentally friendly factory setting.
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We also provide construction services to install and set-up factory-built homes under the Champion Construction brand, and we operate Star Fleet Trucking, which provides transportation services to the manufactured housing and other industries from several dispatch locations across the United States. During fiscal 2025, we began lending activities through Champion Financing, our joint venture with Triad Financial Services.
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In connection with executing this business strategy, we are focused on the following four initiatives: • Increasing the operating capacity and profitability of our existing facilities; • implementing production automation and enterprise-wide digital technology; • continuing a balanced organic and acquisition-based growth strategy; and • broadening our offerings to include certain financing products to customers. 3 Increasing the Operating Capacity and Profitability of our Existing Facilities We are currently focused on a number of ongoing operational initiatives to further enhance our operating margins and increase production capacity including: • Refining our product floor plan designs and options to offer “designed flexibility” to our customers; • executing continuous improvement initiatives related to production, procurement and labor cost saving opportunities; • enhancing the efficiency and sustainability of our products through value-adding material substitution; and • standardizing our manufacturing processes and employing metrics-driven accountability measures across all of our facilities.
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Champion Financing provides tailored manufactured housing dealer floor plan and consumer retail financing products. We believe those products make it easier for our customers to acquire financing and own a home, filling a portion of the gap in consumer lending in the manufactured-housing markets.
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Implementing Production Automation and Enterprise-wide Digital Technology The Company continues to invest in the design and implementation of an enhanced digital customer experience. We are expanding an end-to-end platform where consumers can shop, design, configure, and price their homes online, which we believe will further drive revenue growth for Skyline Champion and our channel partners.
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The information on the SEC’s website is not incorporated by reference and is not a part of this Annual Report. Business Strategy Our business strategy is designed to drive sustainable long-term growth by delivering high-quality, innovative, and affordable homes while building lasting customer relationships through the home-ownership life cycle.
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Over that last several years, we have experienced tremendous online interest from consumers and believe a digital platform to enhance the buying experience will continue to grow as home buying trends evolve. The platform is complemented by our digital marketing and social engagement initiatives that are attracting new consumers to our brands.
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We are focused on enhancing operational excellence, expanding customer engagement, leveraging digital and automation technologies, and executing disciplined growth initiatives. Our strategic priorities are organized around five interconnected pillars: 3 1. Win as a Customer-Centric, High-Performance Agile Team We are focused on strengthening our operations and culture to be more responsive, agile, and aligned with customer needs.
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We also believe these tools will extend the relationship with our customers after the home buying process is complete, resulting in increased customer satisfaction and expanding revenue opportunities.
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Key initiatives include: • Executing process improvements and developing team capabilities to adapt quickly to evolving customer expectations and market dynamics. • Enhancing our product portfolio by leveraging digital tools that allow customers to shop, design, configure, and price their homes online. • Using real-time analytics to improve decision-making and operations. • Expanding our company-owned retail sales center footprint to facilitate customer engagement and responsiveness. 2.
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In addition to the online experience, we are also using technology for: • Investing in production automation technology to mitigate reliance on direct labor, reduce material waste, and improve the precision of our manufacturing processes; • in conjunction with our enhanced digital offering for the customer experience, we are moving to an enterprise-wide, cloud based integrated platform.
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Innovate and Differentiate with Products and Services We continue to invest in product and service innovation to deliver differentiated solutions across customer segments and price points, including: • Refining product floor plan designs and options to offer “designed flexibility” to customers. • Standardizing certain home components to deliver higher value while improving quality and customer satisfaction at competitive prices. • Enhancing the online buying experience to meet evolving home-buying trends and consumer engagement expectations. 3.
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This enhanced technology will offer real-time analytics for improved decision making and will facilitate additional improvements in our manufacturing operations. During the year, we launched our first automated cabinet construction center.
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Expand and Elevate Our Go-to-Market Channels, Including Delivering Experiences Before, During, and After the Sale that Earn Customers and Referrals We are expanding our go-to-market capabilities to provide a seamless, enhanced experience at every stage of the customer journey: • Pursuing strategic acquisitions of retail locations, and manufacturing facilities to expand capabilities efficiently. • Utilizing digital tools and customer touchpoints to build long-term advocacy and facilitate referral generation. • Invest in post-sale engagement tools that extend relationships beyond the initial home purchase. 4.
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We believe this is a step toward our goal of enhancing our manufacturing process and leveraging opportunities to standardize certain components of our homes, lower certain input costs and improve the quality of what we build for consumers.
Added
Increase Awareness, Demand, and Advocacy for Our Brands, Products, and Services We are committed to strengthening brand awareness, building customer loyalty, and increasing demand by: • Investing in digital marketing and social engagement initiatives to attract new customers and strengthen brand visibility. • Continuing to increase our products and services beyond the manufacturing process. • Growing Champion Financing in partnership with Triad Financial Services to enhance tailored dealer floor plan and consumer retail financing products. • Leveraging technology, selling tools, and customer experience practices to accelerate sales growth. 5.
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Continuing a Balanced Organic and Acquisition-Based Growth Strategy We continue to focus on growing in strong markets through a combination of business acquisitions and plant start-ups. In October 2023, we acquired Regional Homes, which at the time of the acquisition, operated three manufacturing facilities in Alabama and 43 retail sales centers across the Southeast U.S.
Added
Execute the Fundamentals, Efficiently Leverage Our Costs/ Investments in People, Processes, Data, and Technology We are executing on operational fundamentals and smart resource management to scale efficiently and drive growth: • Investing in an enterprise-wide, cloud-based platform to facilitate smarter decision-making, and improve manufacturing execution. • Implementing production automation to reduce reliance on direct labor, reduce material waste, and improve quality. • Maintaining a disciplined approach to operational execution, cost management, and investment prioritization to deliver profitable, scalable growth. • Implementing continuous improvement initiatives related to production, procurement, and labor cost savings. 4 • Employing metrics-driven accountability across all operations.
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Regional's strong presence in large HUD markets in the Southeast U.S. expanded our captive retail and manufacturing distribution in the region. In July 2022, we acquired 12 Factory Expo retail sales centers from Alta Cima Corporation, which expanded our internal retail network across a broader portion of the U.S. In May 2022, we acquired Manis Custom Builders, Inc.
Added
Department of Housing and Urban Development (“HUD”) and the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended ("HUD code"). We produce a broad range of manufactured and modular homes under a variety of brand names and in a variety of floor plans and price ranges.
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("Manis"), which operated a manufacturing facility and retail sales center in North Carolina, in order to expand our manufacturing footprint and further streamline our product offerings in the Southeast U.S. region. The acquisitions of retail sales centers allows us to expand the way we attract customers.
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We expect manufactured home buying preferences to continue to evolve over time and believe our investments in retail sales centers, in conjunction with the digital tools discussed above, will help us create a stronger, multifaceted approach to buyer engagement.
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We also will be able to leverage the information systems, selling tools and experience of Regional, which facilitated their growth to become the largest independent manufactured home retailer in the U.S. prior to the acquisition. We are also focused on streamlining our U.S. manufacturing production capacity through various plant start-ups.
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We began production in previously idled facilities in Decatur, Indiana and Bartow, Florida in fiscal 2024. In the fourth quarter of fiscal 2023 and fiscal 2022, we began production in a facility in Pembroke, North Carolina and Navasota, Texas, respectively. We currently have six idle facilities that could be used to further expand our manufacturing capacity.
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We have demonstrated our ability to broaden our manufacturing and retail presence through the successful execution of a balance of organic growth and acquisition-based strategy. As demand for affordable housing grows, we will continue to execute on this growth strategy.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

50 edited+21 added−8 removed107 unchanged
Biggest changeSecurities Authorized for Issuance Under Equity Compensation Plans Item 12, “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters,” of this Annual Report contains certain information relating to the Company’s equity compensation plans.
Biggest changeShare repurchase activity during the three months ended March 29, 2025 was as follows: Fiscal Periods Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of the Publicly Announced Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs (in thousands) 2/2/2025 - 3/1/2025 75,000 $ 102.33 75,000 3/2/2025 - 3/29/2025 126,667 $ 97.27 126,667 201,667 201,667 $ 80,000 Securities Authorized for Issuance Under Equity Compensation Plans Item 12, “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters,” of this Annual Report contains certain information relating to the Company’s equity compensation plans.
Failure to comply with applicable laws or regulations or the passage in the future of new and more stringent laws, could adversely affect our business, financial condition, and results of operations. The transportation industry is subject to government regulation, and regulatory changes could have a material adverse effect on our results of operations or financial condition.
Failure to comply with applicable laws or regulations or the passage in the future of new and more stringent laws, could adversely affect our business, financial condition, and results of operations. 13 The transportation industry is subject to government regulation, and regulatory changes could have a material adverse effect on our results of operations or financial condition.
Any such access, disclosure, or other 15 loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, disrupt our operations, and damage our reputation, any of which could adversely affect our business. Engaging in mergers, acquisitions, and start-up operations involves risks that could adversely affect our business.
Any such access, disclosure, or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, disrupt our operations, and damage our reputation, any of which could adversely affect our business. Engaging in mergers, acquisitions, and start-up operations involves risks that could adversely affect our business.
We assess our investment in ECN for impairment when events or circumstance indicate that a decline in value below the carrying amount of the investment is other than temporary. If our investment in ECN has become impaired, we would charge the impairment as an expense in the period in which 17 the impairment occurs.
We assess our investment in ECN for impairment when events or circumstance indicate that a decline in value below the carrying amount of the investment is other than temporary. If our investment in ECN has become impaired, we would charge the impairment as an expense in the period in which the impairment occurs.
Dividend Policy The Company does not currently pay dividends on our common stock and intends to retain all available funds and any future earnings for general corporate purposes. However, in the future, subject to the factors described below and our future liquidity and capitalization, the Company may change this policy and choose to pay dividends.
Dividend Policy The Company does not currently pay dividends on our common stock and intends to retain available funds and any future earnings for general corporate purposes. However, in the future, subject to the factors described below and our future liquidity and capitalization, the Company may change this policy and choose to pay dividends.
The homebuilding industry has from time-to-time experienced labor shortages and other labor-related issues. These labor shortages can be more severe during periods of strong demand for housing, during periods following natural disasters or as a result of 13 broader economic disruptions.
The homebuilding industry has from time-to-time experienced labor shortages and other labor-related issues. These labor shortages can be more severe during periods of strong demand for housing, during periods following natural disasters or as a result of broader economic disruptions.
These efforts include a wide range of activities, including audits, assessments, tabletop exercises, threat modeling, vulnerability testing and other exercises focused on evaluating the effectiveness of our cybersecurity measures and planning. In addition, we regularly engage third parties to perform assessments on our cybersecurity measures.
These efforts include a wide range of activities, including audits, assessments, threat modeling, vulnerability testing and other exercises focused on evaluating the effectiveness of our cybersecurity measures and planning. In addition, we regularly engage third parties to perform assessments on our cybersecurity measures.
For example, we may experience unexpected engineering or design flaws that may cause increased warranty costs. The costs resulting from these types of problems could be substantial and could have a significant adverse 14 effect on our earnings.
For example, we may experience unexpected engineering or design flaws that may cause increased warranty costs. The costs resulting from these types of problems could be substantial and could have a significant adverse effect on our earnings.
PR OPERTIES The following table sets forth certain information with respect to our operating facilities as of March 30, 2024: Location Owned/Leased United States Double Springs, Alabama Owned Hamilton, Alabama Owned Lynn, Alabama Owned Chandler, Arizona Leased * Corona, California Leased Lindsay, California Owned San Jacinto, California Owned Woodland, California Owned Bartow, Florida Leased * Lake City, Florida (two facilities) Leased * Ocala, Florida Owned Millen, Georgia Leased** Waycross, Georgia Owned Weiser, Idaho Owned Decatur, Indiana Owned Topeka, Indiana (three facilities) Owned Arkansas City, Kansas Owned Benton, Kentucky Leased Leesville, Louisiana Leased Worthington, Minnesota Owned York, Nebraska Owned Sangerfield, New York Owned Laurinburg, North Carolina Owned Lillington, North Carolina Owned Pembroke, North Carolina Owned Sugar Creek, Ohio Owned McMinnville, Oregon Owned Claysburg, Pennsylvania Owned Ephrata, Pennsylvania Owned Leola, Pennsylvania (two facilities) Owned Liverpool, Pennsylvania Owned Strattanville, Pennsylvania Owned Dresden, Tennessee Leased Athens, Texas Owned Burleson, Texas (two facilities) Owned Mansfield, Texas Owned Navasota, Texas Owned Lancaster, Wisconsin Owned Canada Lethbridge, Alberta Leased * Medicine Hat, Alberta Owned Kelowna, British Columbia Leased Penticton, British Columbia Owned Estevan, Saskatchewan Owned * -- land only leased; facility owned ** -- the land and operating facility in Millen, Georgia are maintained under a lease, however, we retain an option to purchase throughout the lease period 20 Our corporate headquarters is in Troy, Michigan and we have an administrative office in Elkhart, Indiana.
PR OPERTIES The following table sets forth certain information with respect to our operating facilities as of March 29, 2025: Location Owned/Leased United States Double Springs, Alabama Owned Hamilton, Alabama Owned Lynn, Alabama Owned Chandler, Arizona Leased * Corona, California Leased Lindsay, California Owned San Jacinto, California Owned Woodland, California Owned Bartow, Florida Leased * Lake City, Florida (two facilities) Leased * Ocala, Florida Owned Millen, Georgia Leased** Waycross, Georgia Owned Weiser, Idaho Owned Decatur, Indiana Owned Topeka, Indiana (three facilities) Owned Arkansas City, Kansas Owned Benton, Kentucky Leased Leesville, Louisiana Leased Worthington, Minnesota Owned York, Nebraska Owned Sangerfield, New York Owned Laurinburg, North Carolina Owned Lillington, North Carolina Owned Pembroke, North Carolina Owned Sugar Creek, Ohio Owned McMinnville, Oregon Owned Claysburg, Pennsylvania Owned Ephrata, Pennsylvania Owned Leola, Pennsylvania (two facilities) Owned Liverpool, Pennsylvania Owned Strattanville, Pennsylvania Owned Dresden, Tennessee Leased Athens, Texas Owned Burleson, Texas (two facilities) Owned Mansfield, Texas Owned Navasota, Texas Owned Lancaster, Wisconsin Owned Canada Lethbridge, Alberta Leased * Medicine Hat, Alberta Owned Kelowna, British Columbia Leased Penticton, British Columbia Owned Estevan, Saskatchewan Owned * -- land only leased; facility owned ** -- the land and operating facility in Millen, Georgia are maintained under a lease, however, we retain an option to purchase throughout the lease period 20 Our corporate headquarters is in Troy, Michigan and we have an administrative office in Elkhart, Indiana.
We also have 74 retail sales centers located across the U.S. and eight terminals for our logistics operations across four states in the U.S. The corporate offices, some of our retail sales centers, and logistics terminals are leased properties.
We also have 72 retail sales centers located across the U.S. and eight terminals for our logistics operations across four states in the U.S. The corporate offices, some of our retail sales centers, and logistics terminals are leased properties.
Governance The Audit Committee receives regular presentations and reports from our VP of Global Technology on cybersecurity risks, which address a wide range of topics including recent developments, evolving standards, vulnerability assessments, third-party and independent reviews, the threat environment, technological trends and information security considerations. The Audit Committee then provides regular reports to the Board of Directors.
Governance The Audit Committee receives regular presentations and reports from our Chief Technology Officer on cybersecurity risks, which address a wide range of topics including recent developments, evolving standards, vulnerability assessments, third-party and independent reviews, the threat environment, technological trends and information security considerations. The Audit Committee then provides regular reports to the Board of Directors.
Furthermore, if our insurance does not fully cover business interruptions or losses resulting from these events, then our earnings, liquidity, or capital resources could be adversely affected. Increased attention to environmental, social and governance matters may impact our business, financial results or stock price.
Furthermore, if our insurance does not fully cover business interruptions or losses resulting from these events, then our earnings, liquidity, or capital resources could be adversely affected. 12 Increased attention and evolving expectations relating to environmental, social and governance matters may impact our business, financial results or stock price.
Stock Performance The following graph shows the cumulative total stockholder return on our common stock over the period spanning March 31, 2019 to March 31, 2024, as compared with that of the Russell 3000 Index and a selected peer group of comparable, publicly traded companies in the housing segment, based on an initial investment of $100 on March 31, 2019. 22 Total stockholder return is measured by dividing share price change plus dividends, if any, for each period by the share price at the beginning of the respective period and assumes reinvestment of dividends.
Stock Performance The following graph shows the cumulative total stockholder return on our common stock over the period spanning March 28, 2020 to March 29, 2025, as compared with that of the Russell 3000 Index and a selected peer group of comparable, publicly traded companies in the housing segment, based on an initial investment of $100 on March 28, 2020. 22 Total stockholder return is measured by dividing share price change plus dividends, if any, for each period by the share price at the beginning of the respective period and assumes reinvestment of dividends.
The VP of Global Technology, working together with a team of cybersecurity professionals and third-party consultants, monitors the prevention, detection, mitigation and remediation of cybersecurity threats and incidents, and reports such threats and incidents to the senior leadership team when appropriate.
The Chief Technology Officer, working together with a team of cybersecurity professionals and third-party consultants, monitors the prevention, detection, mitigation and remediation of cybersecurity threats and incidents, and reports such threats and incidents to the senior leadership team when appropriate.
Financial Risks Further increases in interest rates, more stringent credit standards, tightening of financing terms, or other increases in the effective costs of owning a factory-built home (including those related to regulation or other government actions) have limited and could continue to limit the purchasing power of our potential customers and could continue to adversely affect our business and financial results.
Failure to manage risk effectively could adversely affect our business, financial condition, and results of operations. 16 Financial Risks Further increases in interest rates, more stringent credit standards, tightening of financing terms, or other increases in the effective costs of owning a factory-built home (including those related to regulation or other government actions) have limited and could continue to limit the purchasing power of our potential customers and could continue to adversely affect our business and financial results.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STO CKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information The Company's common stock is traded on the New York Stock Exchange ("NYSE") under the symbol SKY. Holders As of May 16, 2024, the Company had approximately 266 holders of record of our common stock.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STO CKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information The Company's common stock is traded on the New York Stock Exchange ("NYSE") under the symbol SKY. Holders As of May 20, 2025, the Company had approximately 235 holders of record of our common stock.
Risk Management and Strategy Our cybersecurity program is focused on the following key areas: Governance: As discussed in more detail under the heading “Governance” below, the Board of Directors’ oversight of cybersecurity risk management is supported by the Audit Committee, our Vice President ("VP") of Global Technology, and other members of management.
Risk Management and Strategy Our cybersecurity program is focused on the following key areas: Governance: As discussed in more detail under the heading “Governance” below, the Board of Directors’ oversight of cybersecurity risk management is supported by the Audit Committee, our Chief Technology Officer, and other members of management.
Our management is responsible for maintaining effective internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting for external purposes in accordance with accounting principles generally accepted in the United States.
Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting for external purposes in accordance with accounting principles generally accepted in the United States.
In addition, a few key components of our products are produced by a small group of quality suppliers that have the capacity to supply large quantities. Disruption to the supply chain of these key components could have an adverse impact on our production output.
In addition, a few key components of our products are produced by a small group of quality suppliers that have the capacity to supply large quantities. Disruption to the supply chain of these key components, including as a result of changes in U.S. trade policies, could have an adverse impact on our production output.
If adopted, these proposed regulations would result in changes to the HUD-code requiring more robust energy efficiency specifications and require the use of energy-saving construction material in our products. New building code requirements that impose stricter energy efficiency standards could significantly increase our costs.
Any changes to HUD-code from increased energy regulations could result in requiring more robust energy efficiency specifications and require the use of energy-saving construction material in our products. New building code requirements that impose stricter energy efficiency standards could significantly increase our costs.
A write-off of all or part of our goodwill could adversely affect our results of operations and financial condition. An impairment of all or part of our investment in ECN Capital Corporation could adversely affect our operating results and net worth. As of March 30, 2024, our investment in ECN Capital Corporation ("ECN") was $136.4 million.
A write-off of all or part of our goodwill could adversely affect our results of operations and financial condition. An impairment of all or part of our investment in ECN Capital Corporation could adversely affect our operating results and net worth. As of March 29, 2025, our investment in ECN Capital Corporation ("ECN") was $134.7 million.
The factory-built housing industry is also sensitive to changes in economic conditions and other factors, such as pandemics, employment rates, job growth, population growth, consumer confidence, consumer income, availability of financing, interest rate levels, and an oversupply of homes for sale.
As a result, our sales and operating results sometimes fluctuate and may continue to fluctuate in the future. The factory-built housing industry is also sensitive to changes in economic conditions and other factors, such as pandemics, employment rates, job growth, population growth, consumer confidence, consumer income, availability of financing, interest rate levels, and an oversupply of homes for sale.
See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 to the Consolidated Financial Statements. A write-off of all or part of our investment in ECN could adversely affect our results of operations and financial condition. Our failure to maintain effective internal control over financial reporting could harm our business and financial results.
See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 to the Consolidated Financial Statements. A write-off of all or part of our investment in ECN could adversely affect our results of operations and financial condition.
Federal, state, and local government regulations proposed or enacted in response to climate change could result in raw material and other cost increases as well as impact the availability of raw materials necessary to manufacture our products. In 2021, the U.S. Department of Energy proposed regulations to enact new energy efficiency building specifications for manufactured homes.
Federal, state, and local government regulations proposed or enacted in response to climate change could result in raw material and other cost increases as well as impact the availability of raw materials necessary to manufacture our products.
If our cash balances, cash flows from operations, and availability under the Credit Facility are insufficient to finance our operations and alternative capital is not available, then we may not be able to expand our business and make acquisitions, or we may need to curtail or limit our existing operations.
If our cash balances, cash flows from operations, and availability under the Credit Facility are insufficient to finance our operations and alternative capital is not available, then we may not be able to expand our business and make acquisitions, or we may need to curtail or limit our existing operations. 17 Changes in foreign exchange rates could adversely affect the value of our investments in Canada and cause foreign exchange losses.
We may not be able to attract or motivate qualified management and operations personnel in the future. Inability to do so would result in constraints that would significantly impede the achievement of our objectives. We may also have difficulty attracting experienced personnel and may be required to expend significant financial resources in our employee recruitment efforts.
We may not be able to attract or motivate qualified management and operations personnel in the future. Inability to do so would result in constraints that would significantly impede the achievement of our objectives.
In addition, these customers may not remain financially solvent, as they are subject to industry, economic, demographic, and seasonal trends similar to those faced by us.
The independent customers with whom we have relationships can cancel these relationships on short notice. In addition, these customers may not remain financially solvent, as they are subject to industry, economic, demographic, and seasonal trends similar to those faced by us.
The increased rate of inflation has also lead to higher interest rates, which has had and continue to have a negative impact on the housing industry, as well as increases in our borrowing rates.
The U.S. economy recently experienced a period of higher inflation, stemming from efforts by the U.S. government to stimulate the economy and other factors. The increased rate of inflation has also lead to higher interest rates, which has had and continue to have a negative impact on the housing industry, as well as increases in our borrowing rates.
Increased attention continues to be directed to publicly traded companies and their activities related to environmental, social and governance (“ESG”) matters, including recently issued rules by the SEC regarding climate-related disclosures. Advocacy groups have campaigned for action to promote change at public companies related to ESG matters.
Increased attention continues to be directed to publicly traded companies and their activities related to environmental, social and governance (“ESG”) matters. Advocacy groups have campaigned for action to promote change at public companies related to ESG matters. These activities include increasing action related to climate change and the use of energy efficient building products.
Changes in foreign exchange rates could adversely affect the value of our investments in Canada and cause foreign exchange losses. We have substantial investments in businesses in Canada. Unfavorable changes in foreign exchange rates could adversely affect the value of our investments in these businesses.
We have substantial investments in businesses in Canada. Unfavorable changes in foreign exchange rates could adversely affect the value of our investments in these businesses. An impairment of all or part of our goodwill could adversely affect our operating results and net worth.
Even if we establish and maintain relationships with independent distributors, these customers are not obligated to sell our homes exclusively and may choose to sell competitors’ homes instead. The independent distributors with whom we have relationships can cancel these relationships on short notice.
We may not be able to establish relationships with new independent customers or maintain good relationships with independent distributors that sell our homes. Even if we establish and maintain relationships with independent distributors, these customers are not obligated to sell our homes exclusively and may choose to sell competitors’ homes instead.
Additionally, if we do not effectively implement the system as planned or it does not operate as intended, the effectiveness of our internal controls over financial reporting could be adversely affected or our ability to assess those controls adequately could be delayed.
Additionally, if we do not effectively implement the system as planned or it does not operate as intended, the effectiveness of our internal controls over financial reporting could be adversely affected or our ability to assess those controls adequately could be delayed. 14 If we are unable to establish or maintain relationships with independent distributors that sell our homes, our sales could decline and our results of operations and cash flows could suffer.
The extent to which public health issues impact our results will depend on future developments, which cannot be predicted. If an epidemic, pandemic or similar public health issue has a significant adverse effect on the U.S. or Canadian economies, our business, results of operations, and cash flows could be materially adversely affected.
If an epidemic, pandemic or similar public health issue has a significant adverse effect on the U.S. or Canadian economies, our business, results of operations, and cash flows could be materially adversely affected. Regulatory Risks Environmental laws and regulations relating to climate change and energy efficiency can have an adverse impact on our business and results of operations.
Unregistered Sales of Equity Securities There were no unregistered sales of equity securities during the period covered by this Annual Report. Issuer Purchases of Securities There were no stock repurchases that were part of a publicly announced plan during the period covered by this Annual Report.
Unregistered Sales of Equity Securities There were no unregistered sales of equity securities during the period covered by this Annual Report.
An oversupply of homes available for sale or the heavy discounting of home prices by our competitors could adversely affect demand for our homes and the results of our operations.
We also compete with resale homes, also referred to as “previously owned” or “existing” homes, as well as rental housing alternatives. An oversupply of homes available for sale or the heavy discounting of home prices by our competitors could adversely affect demand for our homes and the results of our operations.
These developments have historically had, and may once again have, an adverse effect on the overall demand for factory-built housing and its competitiveness with other forms of housing and could continue to adversely affect our results of operations and financial condition. 16 The liquidity provided by the GSEs and the FHA is also critical in insuring or purchasing home mortgages and creating or insuring investment securities that are either sold to investors or held in their portfolios.
These developments have historically had, and may once again have, an adverse effect on the overall demand for factory-built housing and its competitiveness with other forms of housing and could continue to adversely affect our results of operations and financial condition.
The factory-built housing industry is affected by seasonality. Sales during the period from March to November are typically higher than in other months. As a result, our sales and operating results sometimes fluctuate and may continue to fluctuate in the future.
The factory-built housing industry is cyclical, is affected by seasonality and is sensitive to changes in general economic or other business conditions. The factory-built housing industry is affected by seasonality. Sales during the period from March to November are typically higher than in other months.
In addition, recent increases in the prices of homes resulting from inflation, combined with higher loan rates, have limited and may continue to limit consumers’ ability to obtain financing to purchase a home. In addition, lenders may increase the qualifications needed for financing or adjust their terms to address any increased credit risk.
Potential manufactured housing customers have been and may continue to be less willing or able to pay the increased monthly costs that result from higher loan rates. In addition, recent increases in the prices of homes resulting from inflation, combined with higher loan rates, have limited and may continue to limit consumers’ ability to obtain financing to purchase a home.
This stock performance graph shall not be deemed “filed” with the SEC or subject to Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any of our filings under the Securities Act of 1933, as amended. 3/31/2019 3/31/2020 3/31/2021 3/31/2022 3/31/2023 3/31/2024 Skyline Champion Corporation $ 100.00 $ 82.53 $ 238.21 $ 288.84 $ 395.95 $ 447.42 Russell 3000 100.00 90.87 147.70 165.31 151.13 195.39 Peer Group* 100.00 78.35 210.92 170.45 214.24 326.11 *The peer group consists of Beazer Homes USA, Cavco Industries, Century Communities, LGI Homes, MDC Holdings, M/I Homes, Meritage Homes, Quanex Building Products Corp, and Tri Pointe Group.
This stock performance graph shall not be deemed “filed” with the SEC or subject to Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any of our filings under the Securities Act of 1933, as amended. 3/28/2020 4/3/2021 4/2/2022 4/1/2023 3/30/2024 3/29/2025 Champion Homes, Inc. $ 100.00 $ 288.65 $ 350.00 $ 479.78 $ 542.16 $ 604.34 Peer Group* 100.00 258.01 213.87 272.30 406.91 332.48 *The peer group consists of Beazer Homes USA, Cavco Industries, Century Communities, LGI Homes, M/I Homes, Meritage Homes, Quanex Building Products Corp, and Tri Pointe Group.
An impairment of all or part of our goodwill could adversely affect our operating results and net worth. As of March 30, 2024, 18.6% of our total assets consisted of goodwill, all of which is allocated to reporting units included in the U.S. Factory-built Housing segment.
As of March 29, 2025, 17.0% of our total assets consisted of goodwill, all of which is allocated to reporting units included in the U.S. Factory-built Housing segment.
We cannot predict the future demand for housing. If it were to decline significantly, our financial condition could be adversely affected. Rapid or significantly increasing demand can also adversely affect our business. Longer periods of time between order acceptance and production introduce a risk that we may not be able to construct homes profitably if material and labor costs increase.
We cannot predict the future demand for housing. If it were to decline significantly, our financial condition could be adversely affected. 11 Rapid or significantly increasing demand can also adversely affect our business.
Data security breaches, cybersecurity attacks, and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.
We may also have difficulty attracting experienced personnel and may be required to expend significant financial resources in our employee recruitment efforts. 15 Data security breaches, cybersecurity attacks, and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.
Because barriers to entry to the industry at both the manufacturing and retail levels are low, we believe that it is 11 relatively easy for new competitors to enter our markets.
Because barriers to entry to the industry at both the manufacturing and retail levels are low, we believe that it is relatively easy for new competitors to enter our markets. In addition, our products compete within the housing industry more broadly with other forms of low to moderate-cost housing, including site-built homes, panelized homes, apartments, townhouses, condominiums, and repossessed homes.
Raw material shortages from these and other suppliers can be more severe during periods following natural disasters or broader economic disruptions. Pricing for raw materials can also be affected by the factors mentioned above as well as national, regional, local, economic and political factors, including tariffs and periods of high inflation.
Raw material shortages from these and other suppliers can be more severe during periods following natural disasters or broader economic disruptions.
Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost, or stolen.
Furthermore, advancements in artificial intelligence could be used by threat actors to attack our systems by using increasingly sophisticated and effective techniques to access our data. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost, or stolen.
Any limitations or restrictions on the availability of financing by these agencies could adversely affect interest rates, financing, and our sales of new homes. Inflation has and could continue to adversely affect our business and financial results. Inflation adversely affects us by increasing costs of raw materials, labor and transportation.
Inflation has and could continue to adversely affect our business and financial results. Inflation adversely affects us by increasing costs of raw materials, labor and transportation. Inflation also adversely affects our customers by decreasing purchasing power and ability to afford a new home.
These factors could continue to adversely affect the sales or pricing of our factory-built homes.
In addition, lenders may increase the qualifications needed for financing or adjust their terms to address any increased credit risk. These factors could continue to adversely affect the sales or pricing of our factory-built homes.
Raw material shortages and price increases could cause delays in and increases to our costs of construction which in turn could have a material adverse effect on our business, financial condition, results of operations and cash flows. The factory-built housing industry is cyclical, is affected by seasonality and is sensitive to changes in general economic or other business conditions.
Changes in U.S. trade policies could also lead to higher inflation, which would negatively impact consumers' purchasing power and demand for our products. Raw material shortages and price increases could cause delays in and increases to our costs of construction which in turn could have a material adverse effect on our business, financial condition, results of operations and cash flows.
Over 80% of our shipments of homes in fiscal 2024 were made to independent distributors throughout the U.S. and western Canada. We may not be able to establish relationships with new independent distributors or maintain good relationships with independent distributors that sell our homes.
Although we maintain our own factory direct retail business in select markets, we conduct a majority of our business through independent distributors. Over 75% of our shipments of homes in fiscal 2025 were made to independent customers throughout the U.S. and western Canada.
The United States and Canada have experienced, and may experience in the future, outbreaks of contagious diseases that affect public health and have necessitated government intervention. The COVID-19 pandemic and the measures undertaken by governmental authorities to address it, initially disrupted or prevented us from operating parts of our 12 business in the ordinary course.
The United States and Canada have experienced, and may experience in the future, outbreaks of contagious diseases that affect public health and have necessitated government intervention. The extent to which public health issues impact our results will depend on future developments, which cannot be predicted.
Removed
As a result, we may continue to see raw material cost pressures in future periods. We may attempt to pass the higher material costs on to customers, but it is not certain that we will be able to achieve this without adversely affecting demand.
Added
Changes in U.S. trade policies, including tariffs or other trade protection measures, could negatively impact our business operations, results of operations, and cash flows by increasing our costs of goods, causing supply chain disruptions, or reduce demand for our products.
Removed
In addition, our products compete within the housing industry more broadly with other forms of low to moderate-cost housing, including site-built homes, panelized homes, apartments, townhouses, condominiums, and repossessed homes. We also compete with resale homes, also referred to as “previously owned” or “existing” homes, as well as rental housing alternatives.
Added
Pricing for raw materials can be affected by national, regional, local, economic and political factors, including tariffs and periods of high inflation. We obtain raw materials through various supply channels, some of which involve importing materials from foreign countries.
Removed
These activities include increasing action related to climate change and the use of energy efficient building products. A failure, or perceived failure, to respond to investor or customer expectations related to ESG concerns could cause harm to our business and reputation.
Added
In fiscal 2025, the United States imposed increased tariffs on foreign imports into the United States from certain countries as well as additional proposed tariffs on other countries.
Removed
Regulatory Risks Environmental laws and regulations relating to climate change and energy efficiency can have an adverse impact on our business and results of operations.
Added
The tariff policy environment has been and is expected to continue to be dynamic, and we cannot predict what additional actions may ultimately be taken by the United States or other governments with respect to tariffs or trade relations.
Removed
If we are unable to establish or maintain relationships with independent distributors that sell our homes, our sales could decline and our results of operations and cash flows could suffer. Although we maintain our own factory direct retail business in select markets, we conduct a majority of our business through independent distributors.
Added
As a result, we may be required to, among other things, take steps to mitigate the impact of tariffs on our business, including by raising the prices on products subject to such tariffs to share these costs with our customers and/or by making changes to our supply chain practices, sources of supply, or manufacturing locations, which could also have significant impacts on our financial results.
Removed
Failure to manage risk effectively could adversely affect our business, financial condition, and results of operations.
Added
Longer periods of time between order acceptance and production introduce a risk that we may not be able to construct homes profitably if material and labor costs increase.
Removed
However, since early 2022, the U.S. Federal Open Market Committee has continuously raised the target rate for the federal funds rate and could effectuate additional increases in that rate in response to inflation. Potential manufactured housing customers have been and may continue to be less willing or able to pay the increased monthly costs that result from higher loan rates.
Added
Different stakeholder groups have divergent views on ESG matters, which increases the risk that any action or lack thereof with respect to ESG matters may be perceived negatively and adversely impact our reputation and business.
Removed
Inflation also adversely affects our customers by decreasing purchasing power and ability to afford a new home. The U.S. economy has been experiencing periods of higher inflation, stemming from efforts by the U.S. government to stimulate the economy and other factors.
Added
However, in early 2022, the U.S. Federal Open Market Committee began raising the target rate for the federal funds rate in response to rising inflation. The federal funds rate stabilized in fiscal 2024; however, it remains significantly higher than historic lows and the rate could increase in the future if rates of inflation increase.
Added
The liquidity provided by the GSEs and the FHA is also critical in insuring or purchasing home mortgages and creating or insuring investment securities that are either sold to investors or held in their portfolios. Any limitations or restrictions on the availability of financing by these agencies could adversely affect interest rates, financing, and our sales of new homes.
Added
We identified a material weakness in our internal control over financial reporting which, if not remediated appropriately or timely, could affect our ability to report financial information timely and accurately, negatively affect investor confidence, and cause reputational harm.
Added
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.
Added
As disclosed in Part II, Item 9A "Controls and Procedures," management determined that there is a material weakness in its internal control over financial reporting due to the lack of effectiveness of internal controls in the Regional Homes retail operations acquired in October 2023.
Added
As a result, the Company’s disclosure controls and procedures and internal control over financial reporting are not considered effective as of March 29, 2025.
Added
While the Company is actively engaged in the planning for, and implementation of, remediation efforts to address the material weakness, there can be no assurance that the efforts will fully remediate the material weakness in a timely manner.
Added
If we are unable to remediate the material weakness, or are otherwise unable to maintain effective internal control over financial reporting or disclosure controls and procedures, it could adversely affect our ability to accurately report our financial results in a timely manner, resulting in material misstatements in our financial statements or causing us to fail to meet our reporting obligations, which could subject us to litigation or investigations requiring management resources and payment of legal and other expenses, negatively affect investor confidence in our financial statements and cause reputational harm.
Added
Our failure to maintain effective internal control over financial reporting could harm our business and financial results. Our management is responsible for maintaining effective internal control over financial reporting.
Added
Issuer Purchases of Equity Securities On May 16, 2024, the Company's Board of Directors approved a share repurchase program for up to $100.0 million of the Company’s common stock, which was subsequently amended to allow for purchases of up to $160.0 million.
Added
On May 15, 2025, the Company's Board of Directors approved an increase to this share repurchase program of $20.0 million to refresh the available amount to repurchase the Company's common stock back to $100.0 million.
Added
Under this share repurchase program, the number of shares ultimately purchased, and the timing of purchases are at the discretion of management and subject to compliance with applicable laws and regulations. The share repurchase program does not expire. The Company intends to fund the program from existing cash.
Added
Share repurchases are made in the open market or in privately negotiated transactions in compliance with applicable state and federal securities laws and other legal requirements. The level of repurchase activity is subject to market conditions and other investment opportunities.
Added
The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

76 edited+12 added−14 removed41 unchanged
Biggest changeManufactured home sales represent approximately 9% of all U.S. single family home starts. 25 RESULTS OF OPERATIONS FOR FISCAL 2024 VS. 2023 Year Ended (Dollars in thousands) March 30, 2024 April 1, 2023 Results of Operations Data: Net sales $ 2,024,823 $ 2,606,560 Cost of sales 1,539,029 1,787,879 Gross profit 485,794 818,681 Selling, general, and administrative expenses 310,589 300,396 Operating income 175,205 518,285 Interest (income), net (28,254 ) (14,977 ) Other expense (income), net 2,604 (634 ) Income from operations before income taxes 200,855 533,896 Income tax expense 47,136 132,094 Net income before equity in net loss of affiliate 153,719 401,802 Equity in net loss of affiliate 7,023 — Net income $ 146,696 $ 401,802 Reconciliation of Adjusted EBITDA: Net income $ 146,696 $ 401,802 Income tax expense 47,136 132,094 Interest (income), net (28,254 ) (14,977 ) Depreciation and amortization 34,910 26,726 Transaction costs 3,253 338 Equity in net loss of affiliate 7,023 — Product liability - water intrusion 34,500 — Other — (972 ) Adjusted EBITDA $ 245,264 $ 545,011 As a percent of net sales: Gross profit 24.0 % 31.4 % Selling, general and administrative expenses 15.3 % 11.5 % Operating income 8.7 % 19.9 % Net income 7.2 % 15.4 % Adjusted EBITDA 12.1 % 20.9 % 26 FISCAL PERIODS The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest March 31.
Biggest changeManufactured home sales represent approximately 9.5% of all U.S. single family home starts. 25 RESULTS OF OPERATIONS FOR FISCAL 2025 VS. 2024 Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 Results of Operations Data: Net sales $ 2,483,448 $ 2,024,823 Cost of sales 1,819,425 1,539,029 Gross profit 664,023 485,794 Selling, general, and administrative expenses 426,991 310,589 Operating income 237,032 175,205 Interest (income), net (16,974 ) (28,254 ) Other (income) expense, net (3,362 ) 2,604 Income from operations before income taxes 257,368 200,855 Income tax expense 53,724 47,136 Net income before equity in net loss of affiliate 203,644 153,719 Equity in net loss of affiliate 2,004 7,023 Net income $ 201,640 $ 146,696 Net income attributable to non-controlling interest 3,227 — Net income attributable to Champion Homes, Inc. $ 198,413 $ 146,696 Reconciliation of Adjusted EBITDA: Net income attributable to Champion Homes, Inc. $ 198,413 $ 146,696 Income tax expense 53,724 47,136 Interest (income), net (16,974 ) (28,254 ) Depreciation and amortization 41,910 34,910 Equity in net loss of ECN 363 7,023 Change in fair value of contingent consideration 8,620 — Product liability - water intrusion — 34,500 Transaction costs — 3,253 Other (1,000 ) — Adjusted EBITDA $ 285,056 $ 245,264 As a percent of net sales: Gross profit 26.7 % 24.0 % Selling, general and administrative expenses 17.2 % 15.3 % Operating income 9.5 % 8.7 % Net income attributable to Champion Homes, Inc. 8.0 % 7.2 % Adjusted EBITDA 11.5 % 12.1 % FISCAL PERIODS The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest March 31.
Management uses Adjusted EBITDA for planning purposes, including the preparation of internal annual operating budget and periodic forecasts: (i) in communications with the Board of Directors and investors concerning financial performance; (ii) as a factor in determining bonuses under certain incentive compensation programs; and (iii) as a measure of operating performance used to determine the ability to provide cash flows to support investments in capital assets, acquisitions and working capital requirements for operating expansion.
Management uses Adjusted EBITDA for planning purposes, including the preparation of internal annual operating budget and periodic forecasts: (i) in communications with the Board of Directors and investors concerning financial performance; (ii) as a factor 33 in determining bonuses under certain incentive compensation programs; and (iii) as a measure of operating performance used to determine the ability to provide cash flows to support investments in capital assets, acquisitions and working capital requirements for operating expansion.
The Company will attempt to recover those costs from the manufacturer of the material, the distributor of the material, their related insurance providers or from the Company's insurance providers. However, the Company is unable to record an offset for any estimated costs at this time in accordance with U.S.
The Company will attempt to recover those costs from the manufacturer of the material, the distributor of the material, their related insurance providers or from the Company's insurance providers. However, the Company is unable to record an offset for any estimated costs at this time in accordance with U.S. GAAP.
If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. As the analysis depends upon judgments, estimates and assumptions, such testing is subject to inherent uncertainties, which could cause the fair value to fluctuate from period to period. In fiscal 2024, the Company performed qualitative assessments of its reporting units.
If the net book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. As the analysis depends upon judgments, estimates and assumptions, such testing is subject to inherent uncertainties, which could cause the fair value to fluctuate from period to period. In fiscal 2025, the Company performed qualitative assessments of its reporting units.
The Company’s retail operations utilize floor plan financing to fund the acquisition of manufactured homes for display or resale. The arrangements provide for borrowings up to $248.0 million. Floor plan payables are secured by the homes acquired and are required to be repaid when the Company sells the financed home to a customer.
The Company’s retail operations utilize floor plan financing to fund the acquisition of manufactured homes for display or resale. The arrangements provide for borrowings up to $253.0 million. Floor plan payables are secured by the homes acquired and are required to be repaid when the Company sells the financed home to a customer.
The Company’s retail operations consist of 74 sales centers that sell manufactured homes to consumers across the U.S. while the construction services business installs and sets up factory-built homes. The Company’s transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.
The Company’s retail operations consist of 72 sales centers that sell manufactured homes to consumers across the U.S. while the construction services business installs and sets up factory-built homes. The Company’s transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.
The Company establishes reserves for reported and unreported losses and insurance company reimbursements under these programs using an actuarial determined value which takes into consideration prior claim 33 experience, estimates of losses for known occurrences and the respective volume of business activity for a given period. The health plan is currently subject to a stop-loss limit of $700,000 per occurrence.
The Company establishes reserves for reported and unreported losses and insurance company reimbursements under these programs using an actuarial determined value which takes into consideration prior claim experience, estimates of losses for known occurrences and the respective volume of business activity for a given period. The health plan is currently subject to a stop-loss limit of $800,000 per occurrence.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following should be read in conjunction with Skyline Champion Corporation’s consolidated financial statements and the related notes that appear elsewhere in this Annual Report. Certain statements set forth below under this caption constitute forward-looking statements.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following should be read in conjunction with Champion Homes’s consolidated financial statements and the related notes that appear elsewhere in this Annual Report. Certain statements set forth below under this caption constitute forward-looking statements.
The Company is liable for the first $150,000 of incurred losses for each workers’ compensation and auto liability claim and is responsible for losses up to the first $500,000 per occurrence for general, product liability, and property insurance. Generally catastrophic losses are insured up to $80 million.
The Company is currently liable for the first $250,000 of incurred losses for each workers’ compensation incident, $150,000 for each auto liability claim and is responsible for losses up to the first $500,000 per occurrence for general, product liability, and property insurance. Generally catastrophic losses are insured up to $80 million.
Total available borrowings under the Credit Agreement as of March 30, 2024 were $166.0 million. The Company’s revolving credit facility includes (i) a maximum consolidated total net leverage ratio of 3.25 to 1.00, subject to an upward adjustment upon the consummation of a material acquisition, and (ii) a minimum interest coverage ratio of 3.00 to 1.00.
Total available borrowings under the Credit Agreement as of March 30, 2024 were $168.5 million. The Company’s revolving credit facility includes (i) a maximum consolidated total net leverage ratio of 3.25 to 1.00, subject to an upward adjustment upon the consummation of a material acquisition, and (ii) a minimum interest coverage ratio of 3.00 to 1.00.
Based on industry data, the Company’s U.S. wholesale market share of HUD code homes sold was 19.9%, 20.4%, and 19.3% in fiscal 2024, 2023, and 2022, respectively. Annual industry shipments have generally increased each year since calendar year 2009 when only 50,000 HUD-coded manufactured homes were shipped, the lowest level since the industry began recording statistics in 1959.
Based on industry data, the Company’s U.S. wholesale market share of HUD code homes sold was 22.0%, 19.9%, and 20.4% in fiscal 2025, 2024, and 2023, respectively. Annual industry shipments have generally increased each year since calendar year 2009 when only 50,000 HUD-coded manufactured homes were shipped, the lowest level since the industry began recording statistics in 1959.
Management believes Adjusted EBITDA is useful to an investor in evaluating operating performance for the following reasons: (i) Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest income and expense, taxes, depreciation and amortization and equity-based compensation, which can vary substantially from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets were acquired; and (ii) analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry.
Management believes Adjusted EBITDA is useful to an investor in evaluating operating performance for the following reasons: (i) Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest income and expense, taxes, depreciation and amortization and other non-operating income or loss, which can vary substantially from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets were acquired; and (ii) analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry.
SG&A expenses, as a percent of segment net sales, were 9.7% during fiscal 2024 compared to 9.0% in fiscal 2023. The increase in SG&A as a percent of net sales is a the result of less absorption of certain fixed costs. Corporate/Other: SG&A expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations.
SG&A expenses, as a percent of segment net sales, were 11.6% during fiscal 2025 compared to 9.7% in fiscal 2024. The increase in SG&A as a percent of net sales is the result of less absorption of certain fixed costs. Corporate/Other: SG&A expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations.
See also Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Form 10-K for the year ended April 1, 2023, which provides additional information on comparisons of fiscal years 2023 and 2022. Overview The Company is a leading producer of factory-built housing in the U.S. and Canada.
See also Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Form 10-K for the year ended March 30, 2024, which provides additional information on comparisons of fiscal years 2024 and 2023. Overview The Company is a leading producer of factory-built housing in the U.S. and Canada.
For fiscal 2024, approximately 88% of the Company’s U.S. manufacturing sales were generated from the manufacture of homes that comply with the Federal HUD code construction standard in the U.S. According to data reported by MHI, HUD-code industry home shipments were 92,288, 104,374, and 108,964 units during fiscal 2024, 2023, and 2022, respectively.
For fiscal 2025, approximately 88% of the Company’s U.S. manufacturing sales were generated from the manufacture of homes that comply with the Federal HUD code construction standard in the U.S. According to data reported by MHI, HUD-code industry home shipments were 105,206, 92,288, and 104,374 units during fiscal 2025, 2024, and 2023, respectively.
Losses under repurchase obligations represent the difference between the repurchase price and net proceeds from the resale of the homes, less accrued rebates, which will not be paid. Losses incurred on homes repurchased have been insignificant in recent periods. The reserve for estimated losses under repurchase agreements was $1.8 million at March 30, 2024.
Losses under repurchase obligations represent the difference between the repurchase price and net proceeds from the resale of the homes, less accrued rebates, which will not be paid. Losses incurred on homes repurchased have been insignificant in recent periods. The reserve for estimated losses under repurchase agreements was $1.6 million at March 29, 2025.
In addition, the Company assumed a note payable to United Bank of $4.9 million with a fixed interest rate of 3.85% that is secured by a Note Receivable from HHB Investment Fund, LLC, a subsidiary of WFC. Floor Plan Payable At March 30, 2024, the Company had outstanding borrowings on floor plan financing arrangements of $91.3 million.
In addition, the Company assumed a note payable to United Bank of $4.9 million with a fixed interest rate of 3.85% that is secured by a Note Receivable from HHB Investment Fund, LLC, a subsidiary of WFC. Floor Plan Payable At March 29, 2025, the Company had outstanding borrowings on floor plan financing arrangements of $106.1 million.
The reserve for estimated losses under repurchase agreements was $1.8 million at March 30, 2024. See “ Critical Accounting Polices and Estimates – Reserve for Repurchase Commitments ” below. The Company has provided various representations, warranties, and other standard indemnifications in the ordinary course of its business in agreements to acquire and sell business assets and in financing arrangements.
The reserve for estimated losses under repurchase agreements was $1.6 million at March 29, 2025. See “ Critical Accounting Polices and Estimates – Reserve for Repurchase Commitments ” below. 32 The Company has provided various representations, warranties, and other standard indemnifications in the ordinary course of its business in agreements to acquire and sell business assets and in financing arrangements.
GAAP. 32 NON-GAAP FINANCIAL MEASURES - ADJUSTED EBITDA The Company defines Adjusted Earnings Before Interest Taxes and Depreciation and Amortization (“Adjusted EBITDA”) as net income or loss plus expenses or minus income for: (a) the provision for income taxes; (b) interest income or expense, net; (c) depreciation and amortization; (d) gain or loss from discontinued operations; (e) non-cash restructuring charges and impairment of assets; (f) equity in net earnings or losses of affiliates; (g) charges related to the remediation of the water intrusion product liability claims; and (h) other non-operating income or expense including but not limited to those costs for the acquisition and integration or disposition of businesses and idle facilities.
NON-GAAP FINANCIAL MEASURES - ADJUSTED EBITDA The Company defines Adjusted Earnings Before Interest Taxes and Depreciation and Amortization (“Adjusted EBITDA”) as net income or loss attributable to Champion Homes, Inc. plus expenses or minus income for: (a) the provision for income taxes; (b) interest income or expense, net; (c) depreciation and amortization; (d) gain or loss from discontinued operations; (e) non-cash restructuring charges and impairment of assets; (f) equity in net earnings or losses of ECN; (g) charges related to the remediation of the water intrusion product liability claims; and (h) other non-operating income or expense including but not limited to those costs for the acquisition and integration or disposition of businesses, including the change in fair value of contingent consideration, and idle facilities.
These acquisitions and investments are included in the Company's consolidated results for periods subsequent to their respective acquisition dates. Industry and Company Outlook Limited availability of existing homes for sale and the broader need for newly built affordable, single-family housing has continued to drive demand for new homes in the U.S. and Canadian markets.
These acquisitions and investments are included in the Company's consolidated results for periods subsequent to their respective acquisition dates. 24 Industry and Company Outlook The need for newly built affordable, single-family housing has continued to drive demand for new homes in the U.S. and Canadian markets.
At March 30, 2024, letters of credit issued under the sub-facility totaled $34.0 million. 31 Industrial Revenue Bonds Obligations under industrial revenue bonds are supported by letters of credit and bear interest based on a municipal bond index rate. The industrial revenue bonds require lump-sum payments of principal upon maturity in 2029.
At March 29, 2025, letters of credit issued under the sub-facility totaled $31.5 million. Industrial Revenue Bonds Obligations under industrial revenue bonds are supported by letters of credit and bear interest based on a municipal bond index rate. The industrial revenue bonds require lump-sum payments of principal upon maturity in 2029.
Pursuant to these agreements, during the repurchase period, generally upon default by the retailer and repossession by the financial institution, the Company is obligated to repurchase the homes from the floor plan lenders. The contingent repurchase obligation as of March 30, 2024 was estimated to be approximately $296.3 million, without reduction for the resale value of the homes.
Pursuant to these agreements, during the repurchase period, generally upon default by the retailer and repossession by the financial institution, the Company is obligated to repurchase the homes from the floor plan lenders. The contingent repurchase obligation as of March 29, 2025 was estimated to be approximately $241.9 million, without reduction for the resale value of the homes.
The contingent repurchase obligation as of March 30, 2024 is approximately $296.3 million, without reduction for the resale value of the homes collateralizing the potential repurchases. The Company has the ability to resell the repurchased collateral to other retailers, and losses incurred on repurchased homes have been insignificant in recent periods.
The contingent repurchase obligation as of March 29, 2025 is approximately $241.9 million, without reduction for the resale value of the homes collateralizing the potential repurchases. The Company has the ability to resell the repurchased collateral to other retailers, and losses incurred on repurchased homes have been insignificant in recent periods.
The Company has an Amended and Restated Credit Agreement which provides for a $200.0 million revolving credit facility, including a $45.0 million letter of credit sub-facility ("Amended Credit Agreement"). At March 30, 2024, there were no borrowings under the Amended Credit Agreement and letters of credit issued under the Credit Agreement totaled $34.0 million.
The Company has an Amended and Restated Credit Agreement which provides for a $200.0 million revolving credit facility, including a $45.0 million letter of credit sub-facility ("Amended Credit Agreement"). At March 29, 2025, there were no borrowings under the Amended Credit Agreement and letters of credit issued under the Credit Agreement totaled $31.5 million.
The following is a summary of the change by operating segment. 28 U.S. Factory-built Housing: SG&A expenses for the U.S. Factory-built Housing segment increased by $10.9 million, or 4.9%, during fiscal 2024 as compared to the prior year. SG&A expenses, as a percent of segment net sales, increased to 12.3% in fiscal 2024 compared to 9.2% during fiscal 2023.
The following is a summary of the change by operating segment. 28 U.S. Factory-built Housing: SG&A expenses for the U.S. Factory-built Housing segment increased by $94.7 million, or 40.7%, during fiscal 2025 as compared to the prior year. SG&A expenses, as a percent of segment net sales, increased to 13.9% in fiscal 2025 compared to 12.3% during fiscal 2024.
The Company operates 43 manufacturing facilities throughout the U.S. and 5 manufacturing facilities in western Canada that primarily construct factory-built, timber-framed manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators.
Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S. and Moduline and SRI Homes in western Canada. The Company operates 43 manufacturing facilities throughout the U.S. and 5 manufacturing facilities in western Canada that primarily construct factory-built, timber-framed manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators.
Contingent Obligations The Company has contingent liabilities and obligations at March 30, 2024, including surety bonds and letters of credit totaling $15.1 million and $34.0 million, respectively. Additionally, the Company is contingently obligated under repurchase agreements with certain lending institutions that provide floor plan financing to independent retailers.
Contingent Obligations The Company has contingent liabilities and obligations at March 29, 2025, including surety bonds and letters of credit totaling $17.5 million and $31.5 million, respectively. Additionally, the Company is contingently obligated under repurchase agreements with certain lending institutions that provide floor plan financing to independent retailers.
The Company estimated the charges by establishing a range of total expected costs determined by an actuary using a Monte Carlo simulation. The analysis resulted in a range of losses between $34.5 million and $85.0 million.
The Company estimated the charges by establishing a range of total expected costs determined by an actuary using a Monte Carlo simulation. The analysis, which was completed at the end of the fourth quarter of fiscal 2024, resulted in a range of losses between $34.5 million and $85.0 million.
The Company will monitor the results of the inspection and repair activities, including actual repair costs, and may revise the amount of the estimated liability, which could result in an increase or decrease in the estimated liability in future periods. The liability is included in Other current liabilities in the accompanying consolidated balance sheets.
The Company will monitor the results of the inspection and repair activities, including actual repair costs, and may revise the amount of the estimated liability, which could result in an increase or decrease in the estimated liability in future periods.
The annual assessment was completed on of the first day of fiscal March. The assessments indicated that it was more likely than not that the fair value of each of the reporting units exceeded its respective carrying value. The Company does not believe that any reporting units are at risk for impairment.
The annual assessment was completed on of the first day of fiscal March. The assessments indicated that it was more likely than not that the fair value of each of the reporting units exceeded its respective carrying value.
The Company has identified that certain homes constructed over that period that may be affected. Based on the results of ongoing investigation and repair efforts, the Company has developed a remediation plan under Subpart I of the HUD code and has submitted that plan to HUD for approval.
The Company has identified that certain homes constructed over that period that may be affected. Based on the results of ongoing investigation and repair efforts, the Company has developed a remediation plan under Subpart I of the HUD code, which was approved in fiscal 2025.
The Company is the largest independent publicly traded factory-built solutions provider in North America based on revenue, and markets its homes under several nationally recognized brand names including Skyline Homes, Champion Homes, Genesis Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, All American Homes, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S. and Moduline and SRI Homes in western Canada.
The Company is the largest independent publicly traded factory-built solutions provider in North America based on revenue, and markets its homes under several nationally recognized brand names including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, J.
Canadian Factory-built Housing: SG&A expenses for the Canadian Factory-built Housing segment decreased $2.3 million, or 18.1% compared to the prior year, primarily due to lower incentive compensation which is based on sales volume or profitability and reductions in wages due to staffing adjustments.
Canadian Factory-built Housing: SG&A expenses for the Canadian Factory-built Housing segment increased $0.3 million, or 3.0% compared to the prior year, primarily due to higher allocated corporate costs, partially offset by lower incentive compensation which is based on sales volume or profitability, and reductions in wages due to staffing adjustments.
During fiscal 2023, robust demand for housing began to slow as inflation and higher interest rates made housing less affordable. Because the Company offers a more affordable price point than other housing options, the economic environment drives an even greater need for attainable housing solutions.
During fiscal 2023, robust demand for housing began to slow as inflation and higher interest rates made housing less affordable. The current economic environment drives an even greater need for attainable housing solutions.
The following is a summary of the change by operating segment. U.S. Factory-built Housing: Gross profit for the U.S. Factory-built Housing segment decreased by $317.4 million, or 41.9%, during fiscal 2024 compared to the prior year. As a percent of net sales, gross profit was 23.3% for fiscal 2024 compared to 31.4% in the prior fiscal year.
The following is a summary of the change by operating segment. U.S. Factory-built Housing: Gross profit for the U.S. Factory-built Housing segment increased by $177.2 million, or 40.2%, during fiscal 2025 compared to the prior year. As a percent of net sales, gross profit was 26.2% for fiscal 2025 compared to 23.3% in the prior fiscal year.
The Company’s effective tax rate for both fiscal 2024 and 2023 differs from the federal statutory income tax rate of 21.0%, due primarily to the effect of non-deductible expenses, state and local income taxes, and foreign rate differential, partially offset by tax credits. ADJUSTED EBITDA The following table reconciles net income, the most directly comparable U.S.
The Company’s effective tax rate for both fiscal 2025 and 2024 differs from the federal statutory income tax rate of 21.0%, due primarily to the effect of non-deductible expenses, state and local income taxes, and foreign rate differential, partially offset by tax credits.
The following is a summary of the change by operating segment. U.S. Factory-built Housing: Fiscal 2024 net sales for the Company’s U.S. manufacturing and retail operations decreased by $525.8 million, or 21.8%, from fiscal 2023.
The following is a summary of the change by operating segment. U.S. Factory-built Housing: Fiscal 2025 net sales for the Company’s U.S. manufacturing and retail operations increased by $472.4 million, or 25.1%, from fiscal 2024.
The Company believes this offering will provide customers needed financing solutions and improve the Company's market share. 24 The Company's acquisitions and investments are part of a strategy to grow and diversify revenue with a focus on increasing the Company’s homebuilding presence in the U.S. as well as improving the results of operations through streamlining production of similar product categories.
The Company's acquisitions and investments are part of a strategy to grow and diversify revenue with a focus on increasing the Company’s homebuilding presence in the U.S. as well as improving the results of operations through streamlining production of similar product categories.
BACKLOG Although orders from customers can be cancelled at any time without penalty, and unfilled orders are not necessarily an indication of future business, the Company’s unfilled U.S. and Canadian manufacturing orders at March 30, 2024 totaled $315.8 million compared to $308.1 million at April 1, 2023.
BACKLOG Although orders from customers can be cancelled at any time without penalty, and unfilled orders are not necessarily an indication of future business, the Company’s unfilled U.S. and Canadian manufacturing orders at March 29, 2025 totaled $343.4 million compared to $315.8 million at March 30, 2024. The increase in backlog was primarily driven by higher net orders.
Income Taxes and Deferred Tax Assets Deferred tax assets and liabilities are determined based on temporary differences between the financial statement amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.
The Company does not believe that any reporting units are at risk for impairment. 34 Income Taxes and Deferred Tax Assets Deferred tax assets and liabilities are determined based on temporary differences between the financial statement amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse.
Canadian Factory-built Housing: Gross profit for the Canadian Factory-built Housing segment decreased by $14.2 million, or 31.7%, during fiscal 2024 compared to the prior year. The decrease in gross profit was due to lower sales volumes.
Canadian Factory-built Housing: Gross profit for the Canadian Factory-built Housing segment decreased by $6.7 million, or 21.8%, during fiscal 2025 compared to the prior year. The decrease in gross profit was due to lower sales volumes caused by declining consumer demand.
Gross profit decreased to 27.9% as a percent of segment net sales from 30.9% in the prior year due to decreased leverage of fixed manufacturing costs. Corporate/Other: Gross profit for the Corporate/Other segment decreased by $1.4 million, or 8.3%, during fiscal 2024 compared to the same period in the prior year.
Gross profit decreased to 25.3% as a percent of segment net sales from 27.9% in the prior year due to decreased leverage of fixed manufacturing costs and production inefficiency caused by lower production rates. Corporate/Other: Gross profit for the Corporate/Other segment increased by $7.7 million, or 51.0%, during fiscal 2025 compared to the same period in the prior year.
The rate change from fiscal 2023 to fiscal 2024 is due to lower income before tax and an increase in tax credits in fiscal 2024.
The rate change from fiscal 2024 to fiscal 2025 is primarily due to an increase in tax credits in fiscal 2025.
As a result, the Company continues to focus on growing in strong housing markets across the U.S. and Canada, as well as expanding products and services to provide more holistic affordable solutions to homebuyers. In October 2023, the Company acquired Regional Homes, which operates three manufacturing facilities in Alabama and 44 retail sales centers across the Southeast U.S.
As a result, the Company continues to focus on growing in strong housing markets across the U.S. and Canada, as well as expanding products and services to provide more holistic and affordable solutions to homebuyers.
As a result, quarterly results of a particular period are not necessarily representative of the results expected for the year. Recently Issued Accounting Standards Refer to Note 1, “Summary of Significant Accounting Policies,” in our accompanying Consolidated Financial Statements for information regarding new accounting pronouncements. 35
Recently Issued Accounting Standards Refer to Note 1, “Summary of Significant Accounting Policies,” in our accompanying Consolidated Financial Statements for information regarding new accounting pronouncements. 35
The interest rate on borrowings under the Amended Credit Agreement is based on the Secured Overnight Financing Rate ("SOFR") plus a benchmark Replacement Rate Adjustment ("Replacement Rate"), plus an interest rate spread.
CONTRACTUAL OBLIGATIONS AND COMMITMENTS Credit Facility The Amended Credit Agreement matures in July 2026 and has no scheduled amortization. The interest rate on borrowings under the Amended Credit Agreement is based on the Secured Overnight Financing Rate ("SOFR") plus a benchmark Replacement Rate Adjustment ("Replacement Rate"), plus an interest rate spread.
The increase in backlog was primarily driven by higher net orders and the acquisition of Regional Homes. 30 LIQUIDITY AND CAPITAL RESOURCES The following table presents summary cash flow information for fiscal 2024 and 2023: Year Ended (Dollars in thousands) March 30, 2024 April 1, 2023 Net cash provided by (used in): Operating activities $ 222,704 $ 416,225 Investing activities (485,678 ) (61,179 ) Financing activities 10,864 (37,019 ) Effect of exchange rate changes (280 ) (5,987 ) Net (decrease) increase in cash, cash equivalents, and restricted cash (252,390 ) 312,040 Cash, cash equivalents, and restricted cash at beginning of period 747,453 435,413 Cash, cash equivalents, and restricted cash at end of period $ 495,063 $ 747,453 The Company’s primary sources of liquidity are cash flows from operations and existing cash balances.
LIQUIDITY AND CAPITAL RESOURCES The following table presents summary cash flow information for fiscal 2025 and 2024: Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 Net cash provided by (used in): Operating activities $ 240,857 $ 222,704 Investing activities (46,155 ) (485,678 ) Financing activities (73,038 ) 10,864 Effect of exchange rate changes on cash (6,389 ) (280 ) Net increase (decrease) in cash, cash equivalents, and restricted cash 115,275 (252,390 ) Cash, cash equivalents, and restricted cash at beginning of period 495,063 747,453 Cash, cash equivalents, and restricted cash at end of period $ 610,338 $ 495,063 The Company’s primary sources of liquidity are cash flows from operations and existing cash balances.
The Company's backlog at the end of fiscal 2024 was $315.8 million compared to $308.1 million at the end of fiscal 2023 and $1.6 billion at the end of fiscal 2022.
As a result of the increased orders, the Company's backlog at the end of fiscal 2025 was $343.4 million compared to $315.8 million at the end of fiscal 2024 and $308.1 million at the end of fiscal 2023.
The change was primarily due to higher interest income from higher average invested cash balances and higher interest rates in fiscal 2024 compared to fiscal 2023, offset in part by higher interest expense related to floor plan payables and long-term debt acquired in conjunction with the purchase of Regional Homes in fiscal 2024.
The change was primarily due to lower interest income from lower average invested cash balances and higher interest expense from higher average floor plan payables and long-term debt balances assumed in the acquisition of Regional Homes.
The captive finance company, Champion Financing, provides factory-built home floor plan and consumer loans to retailers and homebuyers.
The captive finance company, Champion Financing, provides factory-built home floor plan and consumer loans to retailers and homebuyers. The Company believes this offering will provide customers needed financing solutions and improve the Company's market share.
However, continued, frequent and sudden increases in specific costs, as well as price competition, can affect the ability to pass on costs and adversely impact results of operations.
However, continued, frequent and sudden increases in specific costs, as well as price competition, can affect the ability to pass on costs and adversely impact results of operations. Therefore, there is no assurance that inflation or the impact of rising material costs will not have a significant impact on revenue or results of operations in the future.
The decrease in gross profit is primarily a factor of the decrease in sales as discussed above. Additionally, the Company incurred a charge of $34.5 million in fiscal 2024 for estimated costs to remediate water intrusion in certain homes built in one of its manufacturing facilities from fiscal 2016 through fiscal 2021.
The increase in gross profit and gross profit percent in fiscal 2025 is also positively impacted by the $34.5 million charge in fiscal 2024 for estimated costs to remediate water intrusion in certain homes built in one of our manufacturing facilities from fiscal 2016 through fiscal 2021.
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES Selling, general, and administrative (“SG&A”) expenses include foreign currency transaction gains and losses, equity compensation, and intangible amortization expense. The following table summarizes SG&A expenses for fiscal 2024 and 2023: Year Ended (Dollars in thousands) March 30, 2024 April 1, 2023 $ Change % Change Selling, general, and administrative expenses: U.S.
The following table summarizes SG&A expenses for fiscal 2025 and 2024: Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 $ Change % Change Selling, general, and administrative expenses: U.S.
INTEREST (INCOME) EXPENSE, NET The following table summarizes the components of interest (income), net for fiscal 2024 and 2023: Year Ended (Dollars in thousands) March 30, 2024 April 1, 2023 $ Change % Change Interest expense $ 4,613 $ 3,276 $ 1,337 40.8 % Interest (income) (32,867 ) (18,253 ) (14,614 ) 80.1 % Interest (income) expense, net $ (28,254 ) $ (14,977 ) $ (13,277 ) 88.6 % Average outstanding floor plan payable $ 42,751 $ 25,756 Average outstanding long-term debt $ 18,162 $ 12,430 Interest income, net was $28.3 million during fiscal 2024, compared to $15.0 million in the prior year.
INTEREST (INCOME), NET The following table summarizes the components of interest (income), net for fiscal 2025 and 2024: Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 $ Change % Change Interest expense $ 8,468 $ 4,613 $ 3,855 83.6 % Interest (income) (25,442 ) (32,867 ) 7,425 (22.6 %) Interest (income), net $ (16,974 ) $ (28,254 ) $ 11,280 (39.9 %) Average outstanding floor plan payable $ 98,689 $ 42,751 Average outstanding long-term debt $ 24,721 $ 18,162 Average cash balance $ 552,701 $ 629,254 Interest (income), net was $17.0 million during fiscal 2025, compared to $28.3 million in the prior year.
As a result, the Company began production in previously idled or acquired facilities in Decatur, Indiana and Bartow, Florida in fiscal 2024, a facility in Pembroke, North Carolina in the fourth quarter of fiscal 2023 and a facility in Navasota, Texas in the fourth quarter of fiscal 2022.
In addition to those acquisitions, the Company is also focused on enhancing its U.S. manufacturing production capacity through various plant start-ups in strategic locations. As a result, the Company began production in previously idled or acquired facilities in Decatur, Indiana and Bartow, Florida in fiscal 2024 and a facility in Pembroke, North Carolina in the fourth quarter of fiscal 2023.
The Company anticipates compliance with its debt covenants and projects its level of cash availability to be in excess of cash needed to operate the business for the next year and beyond.
The Company anticipates compliance with its debt covenants and projects its level of cash availability to be in excess of cash needed to operate the business for the next year and beyond. 31 In the event operating cash flow and existing cash balances were deemed inadequate to support the Company’s liquidity needs, and one or more capital resources were to become unavailable, the Company would revise its operating strategies.
The increase in cash used for investing activities was primarily related to the Company's acquisition of Regional Homes, net of cash acquired, totaling $283.2 million, and the Company's investment in ECN common and preferred stock of $143.4 million in fiscal 2024.
Cash used in investing activities was $46.2 million in fiscal 2025 versus $485.7 million in fiscal 2024. The decrease in cash used for investing activities was related to the Company's acquisition of Regional Homes, an investment in floor plan loans, and the purchase of ECN common and preferred stock in fiscal 2024 which did not reoccur in fiscal 2025.
NET SALES The following table summarizes net sales for fiscal 2024 and 2023: Year Ended (Dollars in thousands) March 30, 2024 April 1, 2023 $ Change % Change Net sales $ 2,024,823 $ 2,606,560 $ (581,737 ) (22.3 %) U.S. manufacturing and retail net sales $ 1,885,507 $ 2,411,342 $ (525,835 ) (21.8 %) U.S. homes sold 20,954 24,736 (3,782 ) (15.3 %) U.S. manufacturing and retail average home selling price $ 90.0 $ 97.5 $ (7.5 ) (7.7 %) Canadian manufacturing net sales $ 109,089 $ 144,289 $ (35,200 ) (24.4 %) Canadian homes sold 891 1,174 (283 ) (24.1 %) Canadian manufacturing average home selling price $ 122.4 $ 122.9 $ (0.5 ) (0.4 %) Corporate/Other net sales $ 30,227 $ 50,929 $ (20,702 ) (40.6 %) U.S. manufacturing facilities in operation at year end 43 38 5 13 % U.S. retail sales centers in operation at year end 74 31 43 139 % Canadian manufacturing facilities in operation at year end 5 5 — — % Net sales for fiscal 2024 were $2.0 billion, a decrease of $581.7 million, or 22.3%, over fiscal 2023.
Fiscal 2025 and 2024 were each 52-week periods. 26 NET SALES The following table summarizes net sales for fiscal 2025 and 2024: Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 $ Change % Change Net sales $ 2,483,448 $ 2,024,823 $ 458,625 22.7 % U.S. manufacturing and retail net sales $ 2,357,916 $ 1,885,507 $ 472,409 25.1 % U.S. homes sold 25,273 20,954 4,319 20.6 % U.S. manufacturing and retail average home selling price $ 93.3 $ 90.0 $ 3.3 3.7 % Canadian manufacturing net sales $ 94,172 $ 109,089 $ (14,917 ) (13.7 %) Canadian homes sold 785 891 (106 ) (11.9 %) Canadian manufacturing average home selling price $ 120.0 $ 122.4 $ (2.4 ) (2.0 %) Corporate/Other net sales $ 31,360 $ 30,227 $ 1,133 3.7 % U.S. manufacturing facilities in operation at year end 43 43 — — % U.S. retail sales centers in operation at year end 72 74 (2 ) (2.7 %) Canadian manufacturing facilities in operation at year end 5 5 — — % Net sales for fiscal 2025 were $2.5 billion, an increase of $458.6 million, or 22.7%, over fiscal 2024.
Factory-built Housing $ 232,356 $ 221,498 $ 10,858 4.9 % Canadian Factory-built Housing 10,592 12,932 (2,340 ) (18.1 %) Corporate/Other 67,641 65,966 1,675 2.5 % Total selling, general, and administrative expenses $ 310,589 $ 300,396 $ 10,193 3.4 % Selling, general, and administrative expenses as a percent of net sales 15.3 % 11.5 % SG&A expenses were $310.6 million during fiscal 2024, an increase of $10.2 million compared to the prior year.
Factory-built Housing $ 327,015 $ 232,356 $ 94,659 40.7 % Canadian Factory-built Housing 10,913 10,592 321 3.0 % Corporate/Other 89,063 67,641 21,422 31.7 % Total selling, general, and administrative expenses $ 426,991 $ 310,589 $ 116,402 37.5 % Selling, general, and administrative expenses as a percent of net sales 17.2 % 15.3 % SG&A expenses were $427.0 million during fiscal 2025, an increase of $116.4 million compared to the prior year.
Regional's strong presence in large HUD markets in the Southeast U.S. greatly expanded our captive retail and manufacturing distribution in the region. In July 2022, the Company acquired 12 Factory Expo retail sales centers from Alta Cima Corporation, which expanded the internal retail network across a broader portion of the U.S.
In July 2022, the Company acquired 12 Factory Expo retail sales centers from Alta Cima Corporation, which expanded the internal retail network across a broader portion of the U.S. In May 2022, the Company acquired Manis Custom Builders, Inc. ("Manis") in order to expand its manufacturing footprint and further streamline its product offering in the Carolinas.
The decrease was primarily attributable to the decrease in recreational vehicle shipments, in part a function of lower demand in that industry, and in part a shift in focus of this business unit on expanding shipments for manufactured housing. 27 GROSS PROFIT The following table summarizes gross profit for fiscal 2024 and 2023: Year Ended (Dollars in thousands) March 30, 2024 April 1, 2023 $ Change % Change Gross profit: U.S.
The decrease was primarily attributable to a decrease in recreational vehicle shipments by our transportation operations, offset in part by net sales from the initiation of the Champion Financing operations in fiscal 2025. 27 GROSS PROFIT The following table summarizes gross profit for fiscal 2025 and 2024: Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 $ Change % Change Gross profit: U.S.
GAAP measure, to Adjusted EBITDA, a non-GAAP financial measure, for fiscal 2024 and 2023: Year Ended (Dollars in thousands) March 30, 2024 April 1, 2023 $ Change % Change Net income 146,696 $ 401,802 $ (255,106 ) (63.5 %) Income tax expense 47,136 132,094 (84,958 ) (64.3 %) Interest (income), net (28,254 ) (14,977 ) (13,277 ) 88.6 % Depreciation and amortization 34,910 26,726 8,184 30.6 % Transaction costs 3,253 338 2,915 * Equity in net loss of affiliate 7,023 — 7,023 * Product liability - water intrusion 34,500 — 34,500 * Other — (972 ) 972 * Adjusted EBITDA 245,264 $ 545,011 $ (299,747 ) (55.0 %) * indicates that the calculated percentage is not meaningful Adjusted EBITDA for fiscal 2024 was $245.3 million, a decrease of $299.7 million from fiscal 2023.
GAAP measure, to Adjusted EBITDA, a non-GAAP financial measure, for fiscal 2025 and 2024: Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 $ Change % Change Net income attributable to Champion Homes, Inc. $ 198,413 $ 146,696 $ 51,717 35.3 % Income tax expense 53,724 47,136 6,588 14.0 % Interest (income), net (16,974 ) (28,254 ) 11,280 (39.9 %) Depreciation and amortization 41,910 34,910 7,000 20.1 % Equity in net loss of ECN 363 7,023 (6,660 ) (94.8 %) Change in fair value of contingent consideration 8,620 — 8,620 * Product liability - water intrusion — 34,500 (34,500 ) (100.0 %) Transaction costs — 3,253 (3,253 ) (100.0 %) Other (1,000 ) — (1,000 ) * Adjusted EBITDA $ 285,056 $ 245,264 $ 39,792 16.2 % * indicates that the calculated percentage is not meaningful Adjusted EBITDA for fiscal 2025 was $285.1 million, an increase of $39.8 million from fiscal 2024.
During the first quarter of fiscal 2023, the Company received insurance proceeds for partial settlement of certain Champion Homes Builders' pre-bankruptcy workers' compensation claims, which was partially offset by transaction costs incurred for the acquisition of Manis. 29 INCOME TAX EXPENSE The following table summarizes income tax expense for fiscal 2024 and 2023: Year Ended (Dollars in thousands) March 30, 2024 April 1, 2023 $ Change % Change Income tax expense $ 47,136 $ 132,094 $ (84,958 ) (64.3 %) Effective tax rate 23.5 % 24.7 % Income tax expense during fiscal 2024 was $47.1 million, representing an effective tax rate of 23.5%, compared to income tax expense of $132.1 million, representing an effective tax rate of 24.7%, in fiscal 2023.
Other expense of $2.6 million for fiscal 2024 represents transaction costs incurred for the acquisition of Regional Homes of $3.3 million, partially offset by dividend income of $0.6 million from the investment in ECN Preferred Shares. 29 INCOME TAX EXPENSE The following table summarizes income tax expense for fiscal 2025 and 2024: Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 $ Change % Change Income tax expense $ 53,724 $ 47,136 $ 6,588 14.0 % Effective tax rate 20.9 % 23.5 % Income tax expense during fiscal 2025 was $53.7 million, representing an effective tax rate of 20.9%, compared to income tax expense of $47.1 million, representing an effective tax rate of 23.5%, in fiscal 2024.
Therefore, there is no assurance that inflation or the impact of rising material costs will not have a significant impact on revenue or results of operations in the future. 34 Seasonality The housing industry, which includes factory-built homes, is affected by seasonality. Sales during the period from March to November are traditionally higher than other months.
Seasonality The housing industry, which includes factory-built homes, is affected by seasonality. Sales during the period from March to November are traditionally higher than other months. As a result, quarterly results of a particular period are not necessarily representative of the results expected for the year.
Net sales for the Canadian segment were also unfavorably impacted by approximately $2.8 million as the Canadian dollar weakened relative to the U.S. dollar during fiscal 2024 as compared to the prior year. Corporate/Other: Net sales for Corporate/Other includes the Company’s transportation business and the elimination of intersegment sales.
The decrease in homes sold is due to slowing demand in the Canadian housing market. Net sales for the Canadian segment were also unfavorably impacted by approximately $3.1 million as the Canadian dollar weakened relative to the U.S. dollar during fiscal 2025 as compared to the prior year.
SG&A expenses for Corporate/Other increased by $1.7 million, or 2.5%, during fiscal 2024 as compared to the prior year. The increase is mainly due to increased equity compensation and investments made to enhance our online customer experience and support systems, offset in part by lower corporate incentive compensation which is measured against sales and profitability targets.
SG&A expenses for Corporate/Other increased by $21.4 million, or 31.7%, during fiscal 2025 as compared to the prior year due primarily to higher incentive compensation as a result of achievement of performance metrics in fiscal 2025 compared to fiscal 2024, and investments made in people and information systems to support future growth.
Factory-built Housing $ 440,162 $ 757,521 $ (317,359 ) (41.9 %) Canadian Factory-built Housing 30,479 44,640 (14,161 ) (31.7 %) Corporate/Other 15,153 16,520 (1,367 ) (8.3 %) Total gross profit $ 485,794 $ 818,681 $ (332,887 ) (40.7 %) Gross profit as a percent of net sales 24.0 % 31.4 % Gross profit as a percent of sales during fiscal 2024 was 24.0% compared to 31.4% during fiscal 2023.
Factory-built Housing $ 617,314 $ 440,162 $ 177,152 40.2 % Canadian Factory-built Housing 23,823 30,479 (6,656 ) (21.8 %) Corporate/Other 22,886 15,153 7,733 51.0 % Total gross profit $ 664,023 $ 485,794 $ 178,229 36.7 % Gross profit as a percent of net sales 26.7 % 24.0 % Gross profit as a percent of sales during fiscal 2025 was 26.7% compared to 24.0% during fiscal 2024.
More recently, we have seen a number of market trends pointing to increased sales of ADUs and rent-to-own single-family options. Inflation and higher interest rates have continued to impact demand for the Company's products in both the U.S. and Canada.
We have also seen a number of market trends pointing to increased sales of ADUs and rent-to-own single-family options. Because of the need for affordable housing, the Company saw an increase in customer orders during fiscal 2025.
The decrease is primarily a result of lower operating income due to decreases in sales volume, average selling prices, gross margins and higher SG&A expenses, partially offset by the incremental operating income generated by Regional Homes for the period after the acquisition.
The increase is a result of higher sales volumes and gross profit, partially offset by higher SG&A expenses, primarily driven by the inclusion of Regional Homes for the entirety of fiscal 2025 compared to 5.5 months of operations in the prior year period.
The decrease in the number of homes sold was due to lower customer demand, lower production volume and the lack of disaster relief housing sales to FEMA compared to the prior year.
The increase in the number of homes sold was due to higher customer demand and production volumes during the year, and the inclusion of Regional Homes for the entirety of fiscal 2025.
During fiscal 2024, net sales for the segment decreased by $20.7 million, or 40.6%, compared to fiscal 2023.
Corporate/Other: Net sales for Corporate/Other includes the Company’s transportation business, financing activities and the elimination of intersegment sales. During fiscal 2025, net sales for the segment increased by $1.1 million, or 3.7%, compared to fiscal 2024.
Canadian Factory-built Housing: The Canadian Factory-built Housing segment net sales decreased by $35.2 million, or 24.4% in fiscal 2024 compared to the prior year, primarily due to a 24.1% decrease in homes sold. The decrease in homes sold is due to lower customer demand caused by inflation and rising interest rates.
Wholesale average selling price per new home decreased in fiscal 2025 due to changes in product mix, including customers choosing homes with fewer or lower cost options. Canadian Factory-built Housing: The Canadian Factory-built Housing segment net sales decreased by $14.9 million, or 13.7% in fiscal 2025 compared to the prior year, primarily due to a 11.9% decrease in homes sold.
The decrease was primarily driven by lower net income in fiscal 2024, partially offset by more favorable changes in working capital items. Cash used in investing activities was $485.7 million in fiscal 2024 versus $61.2 million in fiscal 2023.
Cash provided by operating activities was $240.9 million in fiscal 2025 compared to $222.7 million in fiscal 2024. The increase was driven by higher net income, partially offset by less favorable changes in working capital items primarily a result of the increase in finished goods inventories at the company-owed retail sales centers.
OTHER (EXPENSE) INCOME, NET The following table summarizes other income, net for fiscal 2024 and 2023: Year Ended (Dollars in thousands) March 30, 2024 April 1, 2023 $ Change % Change Other expense (income), net $ 2,604 $ (634 ) $ 3,238 (510.7 %) Other expense (income), net increased $3.2 million during fiscal 2024 compared to the prior year.
OTHER (INCOME) EXPENSE, NET The following table summarizes other (income) expense, net for fiscal 2025 and 2024: Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 $ Change % Change Other (income) expense, net $ (3,362 ) $ 2,604 $ (5,966 ) (229.1 %) Other income of $3.4 million for fiscal 2025 represents dividend income of $2.4 million from the investment in ECN Preferred shares and $1.0 million of insurance proceeds for partial settlement of certain Champion Home Builders’ pre-bankruptcy workers' compensation claims.
The decrease was primarily due to a 15.3% decrease in the number of homes sold during the period, as well as a 7.7% decrease in the average home selling price.
The increase was primarily due to $593.1 million of net sales in fiscal 2025 from the operations acquired in the fiscal 2024 acquisition of Regional Homes, compared to $227.8 million of sales from those operations in the prior-year period. The number of homes sold during the fiscal year increased 20.6% and the total average home selling price increased 3.7%.
In fiscal 2024, cash provided by financing activities was $10.9 million, versus $37.0 million used for financing activities in the prior fiscal year. The year over year increase was primarily related to net borrowings under floor plan financing arrangements. Fiscal 2024 included a $15.4 million increase in floor plan borrowings while fiscal 2023 included a $35.5 million net repayment.
Cash used in financing activities was $73.0 million in fiscal 2025 versus $10.9 million provided by financing activities in fiscal 2024. The increase in fiscal 2025 is a result of common stock repurchases of $80.0 million. Fiscal 2025 was the first year of the repurchase activity.
Removed
In May 2022, the Company acquired Manis Custom Builders, Inc. ("Manis") in order to expand its manufacturing footprint and further streamline its product offering in the Carolinas. In addition to those acquisitions, the Company is also focused on enhancing its U.S. manufacturing production capacity through various plant start-ups in strategic locations.
Added
In October 2023, the Company acquired Regional Homes ("Regional"), which, at the time of the acquisition, operated three manufacturing facilities in Alabama and 43 retail sales centers across the Southeast U.S. Regional's strong presence in large HUD markets in the Southeast U.S. expanded our captive retail and manufacturing distribution in the region.
Removed
However, as interest rates stabilized in fiscal 2024, the Company saw an increase in orders from customers over the prior year. Although orders were higher, sales during fiscal 2023 outpaced those in fiscal 2024 as a result of higher production to fill elevated backlog carried over from prior years.
Added
The increase in average selling price was due primarily to the increase in the number of units sold through our company-owned retail sales centers, also in part a result of the addition of Regional Homes. The mix of wholesale unit sales to independent customers versus homes sold through our company-owned retail sales centers impacts average selling price.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+1 added−1 removed1 unchanged
Biggest changeAt March 30, 2024, there was $91.3 million outstanding on the floor plan agreements and $12.4 million outstanding on borrowings under industrial revenue bonds at March 30, 2024. A 100 basis point increase in the underlying interest rates would result in additional annual interest expense of approximately $0.9 million on outstanding floor plan balances and industrial revenue bonds.
Biggest changeA 100 basis point increase in the underlying interest rates would result in additional annual interest expense of approximately $0.9 million on outstanding floor plan balances and industrial revenue bonds. Foreign Exchange Risk The Company is exposed to foreign exchange risk with its factory-built housing operations in Canada.
At March 30, 2024 there were no outstanding borrowings on the Amended Credit Agreement. The Company’s approach to interest rate risk is to balance borrowings between fixed rate and variable rate debt as management deems appropriate.
At March 29, 2025, there were no outstanding borrowings on the Amended Credit Agreement. The Company’s approach to interest rate risk is to balance borrowings between fixed rate and variable rate debt as management deems appropriate.
At March 30, 2024, the Company’s borrowings under the industrial revenue bonds were at variable rates, borrowings under notes payable assumed from the acquisition of Regional Homes are at fixed rates and borrowings under floor plan financing arrangements were at a combination of fixed and variable rates.
At March 29, 2025, the Company’s borrowings under the industrial revenue bonds were at variable rates, borrowings under notes payable assumed from the acquisition of Regional Homes are at fixed rates and borrowings under floor plan financing arrangements were at a combination of fixed and variable rates.
Obligations under industrial revenue bonds and certain floor plan financing arrangements are subject to variable rates of interest based on a municipal bond index rate and on terms negotiated with the floor plan lenders respectively.
Obligations under industrial revenue bonds and certain floor plan financing arrangements are subject to variable rates of interest based on a municipal bond index rate and on terms negotiated with the floor plan lenders respectively. At March 29, 2025, there was $106.1 million outstanding on floor plan agreements and $12.4 million outstanding on borrowings under industrial revenue bonds.
The Company does not financially hedge its investment in the Canadian operations or in Canadian denominated bank deposits. ITEM 8. FINANCIAL STATEMEN TS AND SUPPLEMENTARY DATA Financial statements, exhibits and schedules are filed herewith under Item 15. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCO UNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.
FINANCIAL STATEMEN TS AND SUPPLEMENTARY DATA Financial statements, exhibits and schedules are filed herewith under Item 15. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCO UNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.
Assuming future annual Canadian net sales equivalent to fiscal 2024, a change of 1.0% in exchange rates between the U.S. and Canadian dollars would change consolidated sales by $1.5 million. The Company also has foreign exchange risk for cash balances maintained in Canadian dollars that are subject to fluctuating values when exchanged into U.S. dollars.
The Canadian operations had fiscal 2025 net sales of $130.9 million Canadian dollars. Assuming future annual Canadian net sales equivalent to fiscal 2025, a change of 1.0% in exchange rates between the U.S. and Canadian dollars would change consolidated sales by $1.3 million.
Removed
Foreign Exchange Risk The Company is exposed to foreign exchange risk with its factory-built housing operations in Canada. The Canadian operations had fiscal 2024 net sales of $146.7 million Canadian dollars.
Added
The Company also has foreign exchange risk for cash balances maintained in Canadian dollars that are subject to fluctuating values when exchanged into U.S. dollars. The Company does not financially hedge its investment in the Canadian operations or in Canadian denominated bank deposits. ITEM 8.

Other SKY 10-K year-over-year comparisons