Cavco Industries Is Rewiring Its Sales Machine — And the Market Share Upside Looks BIG!

Cavco Industries, Inc. recently reported their second quarter fiscal year 2026 earnings, showcasing both strengths and challenges. Positive aspects included a 9.7% year-over-year increase in revenue, driven by a 5.4% increase in homes sold and a 4.4% increase in average revenue per home sold. Operating profit spiked by 27% compared to the previous year, indicative of robust operational performance and cost management efficiency. The company’s strong gross margins—up 130 basis points year-over-year—highlighted their ability to manage costs despite broader market fluctuations in input prices. Significant regional variances in market demand were noted, with Northern U.S. markets experiencing double-digit growth, while the Southeast witnessed a slowdown with shipments declining approximately 10% during the key summer months of July and August. Cavco contends with these fluctuations through adaptive production strategies, such as reducing production rates where demand lagged, as seen in the Southeast.