Champion Homes, Inc. SKY

The business

Champion Homes, which still trades under the SKY ticker after rebranding from Skyline Champion in 2024, builds manufactured and modular homes under more than a dozen brands and sells them through independent retailers and a growing company-owned store network. The engine is core factory-built housing volume: units shipped times average selling price, where the affordability gap to site-built homes drives demand. Manufacturing is where the operating profit lives; the company-owned retail layer, Titan Factory Direct, now runs 18 sales centers across the southern US and captures distribution margin plus a cleaner read on end demand. Champion just closed fiscal 2026 (year ended March 28) with record revenue of $2.66 billion and net income of $214 million, the highest profit in its history outside the 2022 to 2023 demand spike.

The fact the financials do not show is the structure of the industry and its demand driver. Factory-built housing is a tight oligopoly: Clayton Homes, owned by Berkshire Hathaway, holds roughly half the market, with Champion and Cavco the two public players behind it. The demand substrate is affordability, since a manufactured home costs a fraction of a comparable site-built home per square foot, set against a chronic US housing shortage; the regulatory substrate is the federal HUD building code and the home-only "chattel" financing market, which is tighter and pricier than conventional mortgages. The cycle matters most: industry shipments remain below the mid-cycle level, so the operative question is whether the recovery off the fiscal 2024 trough carries into fiscal 2027.