Operating income has plummeted to $36.0 million in 2025Q4 from $79.2 million in 2025Q1, reflecting structural margin compression as gross margins contracted to 24.8%.
| Metric | Mar'26 | Mar'25 | Mar'24 | Apr'23 | Apr'22 | Apr'21 | Mar'20 | Mar'19 | Mar'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 |
|---|
| Sales/Revenue | 2.66B | 2.48B | 2.02B | 2.61B | 2.21B | 1.42B | 1.37B | 1.36B | 1.06B | 236.5M | 211.77M | 186.99M | 191.73M | 177.57M | 182.85M | 162.33M | 136.23M | 166.68M | 301.76M | 365.47M | 508.54M | 454.32M | 432.38M | 419.82M | 450.72M | 463.82M | 589.24M | 664.8M | 623.4M | 613.2M |
| Revenue Growth % | 7.26% | 22.65% | -22.32% | 18.09% | 55.34% | 3.73% | 0.71% | 27.74% | 350.19% | 11.68% | 13.26% | -2.47% | 7.97% | -2.88% | 12.64% | 19.16% | -18.27% | -44.77% | -17.43% | -28.13% | 11.93% | 5.07% | 2.99% | -6.86% | -2.82% | -21.28% | -11.37% | 6.64% | 1.66% | -5.08% |
| Cost of Goods Sold | 1.96B | 1.83B | 1.55B | 1.8B | 1.63B | 1.14B | 1.1B | 1.12B | 888.1M | 214.53M | 188.46M | 169.89M | 181.44M | 166.11M | 177.96M | 160.53M | 131.4M | 165.62M | 278.96M | 327.51M | 444.69M | 404.73M | 377.81M | 366.63M | 387.05M | 403.62M | 485.5M | 536.8M | 509.9M | 503.3M |
| COGS % of Revenue | 73.56% | 73.84% | 76.54% | 69% | 73.65% | 80.15% | 80.03% | 82.31% | 83.41% | 90.71% | 88.99% | 90.86% | 94.63% | 93.54% | 97.33% | 98.89% | 96.45% | 99.37% | 92.44% | 89.61% | 87.44% | 89.08% | 87.38% | 87.33% | 85.87% | 87.02% | 82.39% | 80.75% | 81.79% | 82.08% |
| Gross Profit | 704.32M | 649.67M | 475.02M | 808.04M | 581.57M | 282.08M | 273.55M | 240.54M | 176.62M | 21.98M | 23.31M | 17.09M | 10.29M | 11.46M | 4.88M | 1.8M | 4.83M | 1.05M | 22.81M | 37.96M | 63.86M | 49.6M | 54.57M | 53.18M | 63.67M | 60.2M | 103.74M | 128M | 113.5M | 109.9M |
| Gross Margin % | 26.44% | 26.16% | 23.46% | 31% | 26.35% | 19.85% | 19.97% | 17.69% | 16.59% | 9.29% | 11.01% | 9.14% | 5.37% | 6.46% | 2.67% | 1.11% | 3.55% | 0.63% | 7.56% | 10.39% | 12.56% | 10.92% | 12.62% | 12.67% | 14.13% | 12.98% | 17.61% | 19.25% | 18.21% | 17.92% |
| Gross Profit Growth % | 8.41% | 36.77% | -41.21% | 38.94% | 106.17% | 3.12% | 13.72% | 36.19% | 703.68% | -5.73% | 36.38% | 66.17% | -10.26% | 134.71% | 171.03% | -62.69% | 358.25% | -95.38% | -39.91% | -40.56% | 28.75% | -9.12% | 2.61% | -16.47% | 5.76% | -41.97% | -18.95% | 12.78% | 3.28% | -5.1% |
| Operating Expenses | 452.55M | 412.63M | 299.81M | 289.42M | 248.67M | 172.28M | 182.28M | 260.96M | 122.58M | 22.91M | 21.12M | 21.19M | 22.89M | 23.68M | 27.45M | 28.49M | 26.2M | 30.73M | 36.77M | 40.37M | 45.94M | 43.41M | 45.72M | 44.84M | 47.55M | 50.05M | 85.23M | 91.6M | 86.2M | 82.7M |
| OpEx % of Revenue | 16.99% | 16.62% | 14.81% | 11.1% | 11.27% | 12.12% | 13.31% | 19.19% | 11.51% | 9.69% | 9.97% | 11.33% | 11.94% | 13.34% | 15.01% | 17.55% | 19.23% | 18.44% | 12.19% | 11.05% | 9.03% | 9.55% | 10.57% | 10.68% | 10.55% | 10.79% | 14.46% | 13.78% | 13.83% | 13.49% |
| Selling, General & Admin | 452.55M | 412.63M | 299.81M | 289.42M | 248.67M | 172.28M | 182.28M | 260.96M | 122.58M | 22.91M | 21.12M | 21.19M | 22.89M | 23.68M | 27.45M | 28.49M | 26.2M | 30.73M | 36.77M | 40.37M | 45.94M | 43.41M | 45.72M | 44.84M | 47.55M | 50.05M | 81.14M | 87.8M | 82.5M | 79M |
| SG&A % of Revenue | 16.99% | 16.62% | 14.81% | 11.1% | 11.27% | 12.12% | 13.31% | 19.19% | 11.51% | 9.69% | 9.97% | 11.33% | 11.94% | 13.34% | 15.01% | 17.55% | 19.23% | 18.44% | 12.19% | 11.05% | 9.03% | 9.55% | 10.57% | 10.68% | 10.55% | 10.79% | 13.77% | 13.21% | 13.23% | 12.88% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 251.76M | 237.03M | 175.21M | 518.62M | 332.9M | 109.8M | 91.27M | -20.42M | 54.04M | -931K | 2.19M | -4.1M | -12.6M | -12.22M | -22.57M | -26.69M | -21.37M | -29.68M | -13.96M | -2.41M | 17.91M | 6.19M | 8.86M | 8.34M | 16.13M | 10.15M | 18.51M | 36.4M | 27.3M | 27.2M |
| Operating Margin % | 9.45% | 9.54% | 8.65% | 19.9% | 15.08% | 7.73% | 6.66% | -1.5% | 5.08% | -0.39% | 1.04% | -2.19% | -6.57% | -6.88% | -12.34% | -16.44% | -15.69% | -17.81% | -4.63% | -0.66% | 3.52% | 1.36% | 2.05% | 1.99% | 3.58% | 2.19% | 3.14% | 5.48% | 4.38% | 4.44% |
| Operating Income Growth % | 6.22% | 35.29% | -66.22% | 55.79% | 203.18% | 20.31% | 546.97% | -137.78% | 5904.73% | -142.45% | 153.49% | 67.46% | -3.12% | 45.86% | 15.45% | -24.89% | 28% | -112.6% | -478.57% | -113.47% | 189.5% | -30.15% | 6.21% | -48.28% | 58.93% | -45.19% | -49.14% | 33.33% | 0.37% | -1.45% |
| EBITDA | 259.31M | 281.64M | 210.12M | 545.35M | 353.84M | 127.51M | 109.81M | -4.34M | 62.3M | 95K | 3.25M | -2.85M | -10.88M | -10.22M | -20.21M | -24M | -19.18M | -26.98M | -10.78M | 735K | 21.07M | 9.58M | 12.31M | 12.13M | 20.02M | 14.13M | 22.6M | 40.2M | 31M | 30.9M |
| EBITDA Margin % | 9.74% | 11.34% | 10.38% | 20.92% | 16.03% | 8.97% | 8.02% | -0.32% | 5.85% | 0.04% | 1.53% | -1.52% | -5.68% | -5.75% | -11.05% | -14.79% | -14.08% | -16.19% | -3.57% | 0.2% | 4.14% | 2.11% | 2.85% | 2.89% | 4.44% | 3.05% | 3.83% | 6.05% | 4.97% | 5.04% |
| EBITDA Growth % | -7.93% | 34.04% | -61.47% | 54.12% | 177.51% | 16.11% | 2630.23% | -106.97% | 65481.05% | -97.08% | 214.16% | 73.84% | -6.53% | 49.44% | 15.82% | -25.15% | 28.9% | -150.25% | -1566.67% | -96.51% | 119.99% | -22.2% | 1.51% | -39.42% | 41.64% | -37.46% | -43.79% | 29.68% | 0.32% | -0.64% |
| D&A (Non-Cash Add-back) | 7.55M | 44.61M | 34.91M | 26.73M | 20.94M | 17.7M | 18.55M | 16.08M | 8.26M | 1.03M | 1.06M | 1.25M | 1.72M | 2M | 2.36M | 2.68M | 2.19M | 2.7M | 3.18M | 3.15M | 3.15M | 3.39M | 3.45M | 3.79M | 3.89M | 3.98M | 4.08M | 3.8M | 3.7M | 3.7M |
| EBIT | 268.21M | 265.84M | 205.47M | 537.17M | 333.67M | 115.21M | 89.69M | -35.97M | 48.25M | 349K | 2.19M | -3.81M | -11.79M | -10.51M | -19.36M | -26.63M | -19.35M | -24.99M | -9.14M | 3.4M | 23.32M | 8.66M | 8.86M | 8.34M | 16.13M | 10.15M | 84.11M | 36.39M | 27.3M | 27.2M |
| Net Interest Income | 16.44M | 16.97M | 28.25M | 14.98M | -2.51M | -3.25M | -1.4M | -3.29M | -4.18M | -344K | -320K | -331K | 29K | 64K | 17K | 61K | 63K | 911K | 4.15M | 5.81M | 4.94M | 2.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 23.99M | 25.44M | 32.87M | 18.25M | 733K | 565K | 3.23M | 2.04M | 948K | 0 | 0 | 50K | 100K | 64K | 17K | 61K | 63K | 911K | 4.15M | 5.81M | 4.94M | 2.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 7.55M | 8.47M | 4.61M | 3.28M | 3.25M | 3.81M | 4.63M | 5.33M | 5.13M | 344K | 320K | 381K | 71K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 18.81M | 18.33M | 18.63M | 15.27M | -2.48M | 2.64M | -6.21M | -20.88M | -10.93M | 936K | -320K | -88K | 735K | 1.71M | 3.2M | 61K | 2.02M | 4.69M | 4.82M | 5.81M | 5.4M | 2.47M | 1.25M | 2M | 4.1M | 8.38M | 6.59M | 6.2M | 6M | 7.5M |
| Pretax Income | 270.57M | 255.36M | 193.83M | 533.9M | 330.43M | 111.4M | 85.05M | -41.3M | 43.12M | 5K | 1.87M | -4.19M | -11.86M | -10.51M | -19.36M | -26.63M | -19.35M | -24.99M | -9.14M | 3.4M | 23.32M | 8.66M | 10.11M | 10.34M | 20.23M | 18.53M | 25.09M | 42.6M | 33.3M | 34.7M |
| Pretax Margin % | 10.16% | 10.28% | 9.57% | 20.48% | 14.97% | 7.84% | 6.21% | -3.04% | 4.05% | 0% | 0.88% | -2.24% | -6.19% | -5.92% | -10.59% | -16.4% | -14.2% | -15% | -3.03% | 0.93% | 4.58% | 1.91% | 2.34% | 2.46% | 4.49% | 4% | 4.26% | 6.41% | 5.34% | 5.66% |
| Income Tax | 56.76M | 53.72M | 47.14M | 132.09M | 82.39M | 26.5M | 26.89M | 16.91M | 27.32M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.64M | -9.56M | -3.58M | 806K | 9.02M | 3.21M | 3.96M | 4.14M | 7.97M | 7.36M | 10.06M | 17M | 13.4M | 13.9M |
| Effective Tax Rate % | 20.98% | 21.04% | 24.32% | 24.74% | 24.93% | 23.79% | 31.62% | -40.93% | 63.35% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -49.83% | 38.25% | 39.2% | 23.71% | 38.7% | 37.06% | 39.23% | 40.08% | 39.42% | 39.72% | 40.09% | 39.91% | 40.24% | 40.06% |
| Net Income | 214.2M | 198.41M | 146.7M | 401.8M | 248.04M | 84.82M | 57.99M | -58.21M | 15.8M | 5K | 1.68M | -10.17M | -11.86M | -10.51M | -19.36M | -26.63M | -28.99M | -15.43M | -5.56M | 2.59M | 14.29M | 5.45M | 6.14M | 6.19M | 12.25M | 11.17M | 15.03M | 25.6M | 19.9M | 20.8M |
| Net Margin % | 8.04% | 7.99% | 7.24% | 15.42% | 11.24% | 5.97% | 4.23% | -4.28% | 1.48% | 0% | 0.79% | -5.44% | -6.19% | -5.92% | -10.59% | -16.4% | -21.28% | -9.26% | -1.84% | 0.71% | 2.81% | 1.2% | 1.42% | 1.48% | 2.72% | 2.41% | 2.55% | 3.85% | 3.19% | 3.39% |
| Net Income Growth % | 7.95% | 35.25% | -63.49% | 61.99% | 192.43% | 46.27% | 199.63% | -468.41% | 315900% | -99.7% | 116.49% | 14.24% | -12.85% | 45.71% | 27.27% | 8.16% | -87.85% | -177.79% | -314.27% | -81.86% | 162.14% | -11.22% | -0.84% | -49.46% | 9.7% | -25.67% | -41.3% | 28.64% | -4.33% | 5.58% |
| Net Income (Continuing) | 213.81M | 201.64M | 146.7M | 401.8M | 248.04M | 84.9M | 58.16M | -58.21M | 15.8M | 5K | 1.87M | -4.19M | -11.86M | -10.51M | -19.36M | -26.63M | -28.99M | -15.43M | -5.56M | 2.59M | 14.29M | 5.45M | 6.14M | 6.19M | 12.25M | 11.17M | 15.03M | 25.6M | 19.9M | 20.8M |
| Discontinued Operations | -6.53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -195K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.65 | 3.42 | 2.53 | 7.00 | 4.33 | 1.49 | 1.02 | -1.09 | 0.36 | 6.12 | 0.20 | -1.24 | -1.41 | -1.25 | -2.31 | -3.17 | -3.46 | -1.84 | -0.66 | 0.31 | 1.70 | 0.65 | 0.73 | 0.74 | 1.46 | 1.32 | 1.70 | 2.80 | 2.10 | 2.07 |
| EPS Growth % | 6.73% | 35.18% | -63.86% | 61.66% | 190.6% | 46.08% | 193.58% | -402.78% | -94.12% | 2960% | 116.13% | 12.06% | -12.8% | 45.89% | 27.13% | 8.38% | -88.04% | -178.79% | -312.9% | -81.76% | 161.54% | -10.96% | -1.35% | -49.32% | 10.61% | -22.35% | -39.29% | 33.33% | 1.45% | 12.5% |
| EPS (Basic) | 3.66 | 3.45 | 2.55 | 7.05 | 4.37 | 1.50 | 1.03 | -1.09 | 0.36 | 6.19 | 0.20 | -1.24 | -1.41 | -1.25 | -2.31 | -3.17 | -3.46 | -1.84 | -0.66 | 0.31 | 1.70 | 0.65 | 0.73 | 0.74 | 1.46 | 1.32 | 1.70 | 2.80 | 2.10 | 2.07 |
| Diluted Shares Outstanding | 56.67M | 58.08M | 57.98M | 57.4M | 57.28M | 56.97M | 56.76M | 53.49M | 44.49M | 42.39M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 42.34M | 45.37M | 45.85M | 47.79M | 51.41M |
| Basic Shares Outstanding | 56.5M | 57.56M | 57.53M | 56.99M | 56.76M | 56.65M | 56.52M | 53.4M | 44.49M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 41.96M | 42.34M | 44.29M | 45.68M | 47.56M | 50.35M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 5.62% | - | - | - | - | - | - | - | - | - | - | 880.22% | 42.27% | 264.73% | 98.39% | 97.55% | 49.31% | 54.83% | 42.65% | 23.44% | 28.64% | 29.33% |
Cyclical housing demand sensitivity
As reported in recent financial statements, Champion Homes' revenue growth has decelerated significantly, falling from a peak of 35.1% in 2024Q1 to a modest 4.6% by 2025Q4, indicating that the company is struggling to maintain its previous pace of expansion in a tightening housing market.
The sharp decline in year-over-year revenue growth suggests that the post-pandemic demand surge for factory-built housing has largely dissipated. Investors should monitor whether this trend reflects a broader cooling in the first-time homebuyer segment or specific competitive pressures within the company's core geographic markets.
Based on the latest quarterly data, gross margins have contracted to 24.8% in 2025Q4 from a high of 27.6% in 2024Q3, suggesting that the company is facing difficulty in passing through inflationary input costs to price-sensitive consumers in the current interest rate environment.
The erosion of gross margins implies that the company's pricing power may be reaching an affordability ceiling, forcing a trade-off between volume and profitability. This compression warrants further investigation into whether the company is absorbing higher material costs to maintain market share against site-built alternatives.
According to income statement filings, operating income has plummeted from $79.2 million in 2025Q1 to $36.0 million in 2025Q4, demonstrating that SG&A expenses are not scaling efficiently as revenue growth slows, which negatively impacts the company's overall operating margin profile.
The inability to maintain operating margins as revenue growth decelerates suggests a lack of flexibility in the company's fixed cost structure. This trend indicates that the company may be over-invested in overhead relative to current production volumes, potentially pressuring earnings until capacity utilization improves.
Analysis of recent quarterly reports reveals that stock-based compensation remains a persistent expense, totaling $5.5 million in 2025Q4, which continues to dilute the quality of reported net income and complicates the assessment of true operational profitability for shareholders.
While stock-based compensation is a standard industry practice, its consistent presence during periods of declining net income suggests that management's incentive structure may not be fully aligned with short-term bottom-line performance. Investors should scrutinize the impact of these non-cash charges on the company's overall earnings trajectory.
Financial data suggests that the company's reliance on the cyclical residential construction market, combined with a 17.5% decline in EPS for 2025Q4, highlights significant downside risks if the current housing slowdown persists or if chattel loan interest rates continue to rise.
Short-sellers may focus on the company's inability to sustain historical growth rates and the potential for further margin compression as the housing cycle turns. The current financial snapshot suggests that the company's valuation may be vulnerable if the market begins to price in a prolonged period of stagnant demand.
Quick answers to the most common questions about buying SKY stock.
For fiscal year 2025, Champion Homes, Inc. (SKY) reported total revenue of $2.66B. This represents a 334.4% increase compared to $613.2M in 1996.
Champion Homes, Inc. (SKY) is profitable, generating $214.2M in net income for the fiscal year ending 2025 with a net profit margin of 8.0%.
Champion Homes, Inc. (SKY) reported an operating income of $251.8M, resulting in an operating profit margin of 9.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Champion Homes, Inc. (SKY) generated $704.3M in gross profit for the year, representing a gross profit margin of 26.4%. This demonstrates the company's core pricing power and production efficiency.