Champion Homes, Inc. (SKY)

Skyline Champion Corporation is a leading producer of factory-built housing in North America, with net sales of approximately $2.0 billion in the fiscal year ended March 30, 2024. The company has more than 70 years of homebuilding experience and about 8,600 employees. It designs and builds manufactured and modular homes in indoor, assembly-line facilities. It reports the number two position in U.S. manufactured housing and the number one position among U.S. modular builders (by units, calendar 2023), along with leading positions in western Canada and in park model RV sales. Its share of the total U.S. housing market was approximately 2.1%.

Its products include manufactured and modular homes (mostly single-family, multi-section ranch-style homes, plus two-story and single-section homes and multi-family units such as town homes, duplexes and apartments), park model RVs and cabins, accessory dwelling units, and modular buildings for the multi-family market. Homes are sold under brands such as Skyline Homes, Champion Homes, Genesis Homes, Regional Homes, Athens Park, Dutch Housing, Atlantic Homes, Excel Homes, Redman Homes, Silvercrest and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. Beyond homebuilding, the company provides construction services to install and set up homes. It runs a factory-direct retail business with 74 company-owned sales centers under the Regional Homes, Titan Factory Direct and Champion Homes Center brands. It also operates Star Fleet Trucking, a transportation business. Through a 2023 investment in ECN and the Champion Financing captive finance company formed with Triad Financial Services, it is adding dealer floor plan and consumer lending products.

Products are sold through independent and company-owned retail sales centers, community operators, government agencies and builder/developers. Customers are mainly value-conscious homebuyers seeking affordable housing, and the company notes that manufactured and modular homes cost up to 50% less per square foot than site-built homes. It is also an approved FEMA contractor for disaster housing. In fiscal 2024, the average selling price of its homes was about $90,000 in the U.S. and $122,400 in Canada. Most retailers and builders it sells to are within 500 miles of its plants. Backlog was approximately $315.8 million at fiscal year-end.

The company operates 48 manufacturing facilities in 20 U.S. states and three western Canadian provinces, 19 of them in the top ten states by manufactured home shipments. Each plant typically employs 100 to 200 production workers and builds to customer orders, usually filling them within 90 days. Raw materials such as lumber, plywood, OSB, drywall, steel, insulation, siding, windows and appliances come from a variety of sources, with no dependence on a single supplier, and plants typically hold one to three weeks of supply. Growth has come from acquisitions (Regional Homes in October 2023, 12 Factory Expo retail centers in July 2022, and Manis Custom Builders in May 2022) and plant start-ups, and six facilities remain idle. About 700 Canadian workers are covered by collective bargaining agreements. The principal executive offices are at 755 West Big Beaver Road, Troy, Michigan.