Modular home and building manufacturer Champion Homes (NYSE:SKY) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 1.3% year on year to $710.2 million. Its non-GAAP profit of $0.88 per share was in line with analysts’ consensus estimates.
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Champion Homes (SKY) Q2 CY2026 Highlights:
- Revenue: $710.2 million vs analyst estimates of $702.4 million (1.3% year-on-year growth, 1.1% beat)
- Adjusted EPS: $0.88 vs analyst estimates of $0.87 (in line)
- Adjusted EBITDA: $73.58 million vs analyst estimates of $71.6 million (10.4% margin, 2.8% beat)
- Operating Margin: 8.5%, down from 11.2% in the same quarter last year
- Free Cash Flow Margin: 8.8%, similar to the same quarter last year
- Sales Volumes rose 1.8% year on year (6.5% in the same quarter last year)
- Market Capitalization: $4.44 billion
Company Overview
Founded in 1951, Champion Homes (NYSE:SKY) is a manufacturer of modular homes and buildings in North America.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Champion Homes’s sales grew at a solid 10% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers, a helpful starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Champion Homes’s annualized revenue growth of 10.5% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. Champion Homes’s recent performance shows it’s one of the better Home Builders businesses as many of its peers faced declining sales because of cyclical headwinds. 
We can better understand the company’s revenue dynamics by analyzing its number of units sold, which reached 7,089 in the latest quarter. Over the last two years, Champion Homes’s units sold averaged 2.3% year-on-year growth. Because this number is lower than its revenue growth, we can see the company benefited from price increases. 
This quarter, Champion Homes reported modest year-on-year revenue growth of 1.3% but beat Wall Street’s estimates by 1.1%.
Looking ahead, sell-side analysts expect revenue to grow 5.6% over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and suggests its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.
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Operating Margin
Champion Homes has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 12.5%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it’s a show of well-managed operations if they’re high when gross margins are low.
Looking at the trend in its profitability, Champion Homes’s operating margin decreased by 9.1 percentage points over the last five years. Many Home Builders companies also saw their margins fall (along with revenue, as mentioned above) because the cycle turned in the wrong direction. We hope Champion Homes can emerge from this a stronger company, as the silver lining of a downturn is that market share can be won and efficiencies found.
This quarter, Champion Homes generated an operating margin profit margin of 8.5%, down 2.7 percentage points year on year. Since Champion Homes’s operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Champion Homes’s solid 11.5% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For Champion Homes, its two-year annual EPS growth of 5.5% was lower than its five-year trend. This wasn’t great, but at least the company was successful in other measures of financial health.
In Q2, Champion Homes reported adjusted EPS of $0.88, down from $1.19 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects Champion Homes’s full-year EPS to stay about the same, moving from $3.53 to $3.51.
Key Takeaways from Champion Homes’s Q2 Results
It was encouraging to see Champion Homes beat analysts’ EBITDA expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates.
Is Champion Homes an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).