Champion Homes, Inc.

Previous wording

Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), is a leading producer of factory-built housing in the U.S. and Canada. The Company serves as a complete solutions provider across complementary and vertically integrated businesses including factory-built home manufacturing, company-owned retail locations, construction services, and transportation logistics services. The Company markets its homes under several nationally recognized brand names including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, J. Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. The Company operates 42 manufacturing facilities throughout the U.S. and four manufacturing facilities in western Canada that primarily construct factory-built, timber-framed, manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. The Company’s retail operations consist of 82 sales centers that sell manufactured homes to consumers across the U.S. The Company’s transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.

Current wording

Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), is a leading producer of factory-built housing in the U.S. and Canada. The Company serves as a complete solutions provider across complementary and vertically integrated businesses including factory-built home manufacturing, company-owned retail locations, construction services, and transportation logistics services. The Company markets its homes under several nationally recognized brand names including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, J. Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. The Company operates 42 manufacturing facilities throughout the U.S. and four manufacturing facilities in western Canada that primarily construct factory-built, timber-framed, manufactured and modular houses that are sold primarily to independent retailers, builders/developers, and manufactured home community operators. The Company’s retail operations consist of 83 sales centers that sell manufactured homes to consumers across the U.S. The Company’s transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.

Previous wording

The Company is focused on operational improvements to increase capacity utilization and profitability at its existing manufacturing facilities as well as measured expansion of its manufacturing and retail footprint through facility and equipment investments and acquisitions. Those investments will help improve the Company's ability to satisfy demand for affordable housing. During fiscal 2023, robust demand for housing began to slow as inflation and higher interest rates made housing less affordable. The current economic environment drives an even greater need for attainable housing solutions. As a result, the Company continues to focus on growing in strong housing markets across the U.S. and Canada, as well as expanding products and services to provide more holistic and affordable solutions to homebuyers.

Current wording

The Company is focused on operational improvements to increase capacity utilization and profitability at its existing manufacturing facilities as well as measured expansion of its manufacturing and retail footprint through facility and equipment investments and acquisitions. Those investments will help improve the Company's ability to satisfy demand for affordable housing. During fiscal 2023, robust demand for housing began to slow as inflation and higher interest rates made housing less affordable. That economic environment drove an even greater need for attainable housing solutions. As a result, the Company continues to focus on growing in strong housing markets across the U.S. and Canada, as well as expanding products and services to provide more holistic and affordable solutions to homebuyers.

Previous wording

During fiscal 2024, the Company made an equity investment in ECN. The investment, in part, facilitated the creation of a captive finance company in partnership with Triad, a subsidiary of ECN. The captive finance company, Champion Financing, through Triad, provides factory-built home floor plan and consumer loans to manufactured home retailers and homebuyers. The Company believes this offering will provide customers needed financing solutions and improve the Company's market share.

Current wording

During fiscal 2024, the Company made an equity investment in ECN. The investment, in part, facilitated the creation of a captive finance company in partnership with Triad, a subsidiary of ECN. The captive finance company, Champion Financing, through Triad, provides factory-built home floor plan and consumer loans to manufactured home retailers and homebuyers. The Company believes this offering will provide customers needed financing solutions and improve the Company's market share. On November 13, 2025, ECN entered into a definitive arrangement to be acquired by a private investor group for CAD $3.10 per share, plus any accrued but unpaid dividends. The agreement, which was approved by ECN shareholders in January 2026, is subject to court approval and other customary closing conditions and is expected to close in the first half of fiscal 2027, which will result in the liquidation of the Company's investment in ECN common and preferred shares.

Previous wording

The Company saw a decrease in customer orders during the six months ended September 27, 2025 versus the same period last year. As a result of the decreased orders, combined with higher production rates versus the prior year, the Company's manufacturing backlog decreased to $313.2 million as of September 27, 2025 compared to $427.5 million as of September 28, 2024.

Current wording

The Company's manufacturing backlog decreased to $266.0 million as of December 27, 2025 compared to $312.6 million as of December 28, 2024. The decrease in backlog is a function of production rates exceeding order rates during the three months ended December 27, 2025, compared to the same period in the prior last year.

Previous wording

For the six months ended September 27, 2025, approximately 87.3% of the Company’s U.S. manufacturing sales were generated from the manufacture of homes that comply with the U.S. Department of Housing and Urban Development ("HUD") code construction standard in the U.S. Industry shipments of HUD-code homes are reported on a one-month lag. According to data reported by the Manufactured Housing Institute, HUD-code industry home shipments were 44,567 and 44,278 units during the five months ended August 31, 2025 and 2024, respectively. Based on industry data, the Company’s U.S. wholesale market share of HUD code homes sold was 22.6% and 21.9%, for the five months ended August 31, 2025 and 2024, respectively. Annual HUD-code industry shipments have generally increased since calendar year 2009 when only 50,000 HUD-coded manufactured homes were shipped, the lowest level since the industry began recording statistics in 1959. While shipments of HUD-coded manufactured homes have improved modestly in recent years, current manufactured housing shipments are still at lower levels than the long-term historical average of over 200,000 units per year. Manufactured home sales represent approximately 9% of all U.S. single family home starts. Our market share in the U.S total housing market was approximately 2.6% and 2.4% for the six months ended September 27, 2025 and September 28, 2024, respectively.

Current wording

For the nine months ended December 27, 2025, approximately 86.7% of the Company’s U.S. manufacturing sales were generated from the manufacture of homes that comply with the U.S. Department of Housing and Urban Development ("HUD") code construction standard in the U.S. Industry shipments of HUD-code homes are reported on a one-month lag. According to data reported by the Manufactured Housing Institute, HUD-code industry home shipments were 69,757 and 71,968 units during the eight months ended November 30, 2025 and 2024, respectively. Based on industry data, the Company’s U.S. wholesale market share of HUD code homes sold was 22.5% and 22.2%, for the eight months ended November 30, 2025 and 2024, respectively. Annual HUD-code industry shipments have generally increased since calendar year 2009 when only 50,000 HUD-coded manufactured homes were shipped, the lowest level since the industry began recording statistics in 1959. While shipments of HUD-coded manufactured homes have improved modestly in recent years, current manufactured housing shipments are still at lower levels than the long-term historical average of over 200,000 units per year. Manufactured home sales represent approximately 9% of all U.S. single family home starts. Our estimated market share in the U.S. total housing market, based on data through October 2025, was approximately 2.8% and 2.5% for the nine months ended December 27, 2025 and December 28, 2024, respectively.

Previous wording

UNAUDITED RESULTS OF OPERATIONS FOR THE SECOND QUARTER OF FISCAL 2026 VS. 2025

Current wording

ITED RESULTS OF OPERATIONS FOR THE THIRD QUARTER OF FISCAL 2026 VS. 2025

Previous wording

Net sales for the three months ended September 27, 2025 were $684.4 million, an increase of $67.6 million, or 11.0%, compared to the three months ended September 28, 2024. The following is a summary of the change by operating segment.

Current wording

Net sales for the three months ended December 27, 2025 were $656.6 million, an increase of $11.7 million, or 1.8%, compared to the three months ended December 28, 2024. The following is a summary of the change by operating segment.

Previous wording

Net sales for the Company’s U.S. manufacturing and retail operations increased by $61.9 million, or 10.5%, for the three months ended September 27, 2025 compared to the three months ended September 28, 2024. The increase was due to a 3.4% increase in new homes sold and a 6.8% increase in the average selling price per new home. The increase in the number of homes sold was primarily due to the higher new home sales volumes at our Company-owned retail sales centers and the acquisition of Iseman homes. The increase in average selling price was primarily due to a shift in mix to more multi-wide units and increased pricing at our company-owned retail sales centers.

Current wording

Net sales for the Company’s U.S. manufacturing and retail operations increased by $11.6 million, or 1.9%, for the three months ended December 27, 2025 compared to the three months ended December 28, 2024. The increase was due to a 4.6% increase in the average selling price per new home partially offset by a 2.6% decrease in new homes sold. The increase in average selling price was due primarily to a shift in mix to more multi-wide units and increased pricing at our company-owned retail sales centers. The decrease in new homes sold was due to lower production.

Previous wording

The Canadian Factory-built Housing segment net sales increased by $3.9 million, or 17.5% for the three months ended September 27, 2025 compared to the same period in the prior fiscal year, primarily due to a 9.5% increase in homes sold and a 7.3% increase in average home selling price. The increase in homes sold was due to higher demand in certain markets. The increase in average selling price was due to increased pricing and product mix. On a constant currency basis, net sales for the Canadian segment were unfavorably impacted by approximately $0.1 million due to fluctuations in the translation of the Canadian dollar to the U.S. dollar during the three months ended September 27, 2025 as compared to the same period of the prior fiscal year.

Current wording

The Canadian Factory-built Housing segment net sales increased by $0.1 million, or 0.4% for the three months ended December 27, 2025 compared to the same period in the prior fiscal year, primarily due to a 2.9% increase in homes sold offset by a 2.4% decrease in average home selling price. The increase in homes sold was due to higher demand in certain markets. The decrease in average selling price was due to product mix. On a constant currency basis, net sales for the Canadian segment were unfavorably impacted by approximately $0.4 million due to fluctuations in the translation of the Canadian dollar to the U.S. dollar during the three months ended December 27, 2025 as compared to the same period of the prior fiscal year.

Previous wording

Net sales for Corporate/Other includes the Company’s transportation business, financing activities, and the elimination of intersegment sales. For the three months ended September 27, 2025, net sales increased $1.7 million, or 23.1%, primarily attributable to increased revenue generated from Champion Financing, partially offset by lower recreational vehicle shipments from the Company's transportation business.

Current wording

Net sales for Corporate/Other includes the Company’s transportation business, financing activities, and the elimination of intersegment sales. Net sales were consistent for the three months ended December 27, 2025 and December 28, 2024.

Previous wording

Gross profit as a percent of sales during the three months ended September 27, 2025 was 27.5% compared to 27.0% during the three months ended September 28, 2024. The following is a summary of the change by operating segment.

Current wording

Gross profit as a percent of sales during the three months ended December 27, 2025 was 26.2% compared to 28.1% during the three months ended December 28, 2024. The following is a summary of the change by operating segment.

Previous wording

Gross profit for the U.S. Factory-built Housing segment increased by $16.4 million, or 10.5%, during the three months ended September 27, 2025 compared to the same period in the prior fiscal year. Gross profit was 26.6% as a percent of segment net sales for each of the three months ended September 27, 2025 and September 28, 2024. The increase in gross profit is being driven by higher sales volumes and higher average selling prices on new homes sold through our Company-owned retail sales centers.

Current wording

Gross profit for the U.S. Factory-built Housing segment decreased by $9.4 million, or 5.6%, during the three months ended December 27, 2025 compared to the same period in the prior fiscal year. Gross profit was 25.4% as a percent of segment net sales for the three months ended December 27, 2025, compared to 27.4% for the three months ended December 28, 2024. The decrease in gross profit as a percent of segment net sales is being driven by higher manufacturing material costs and less absorption of fixed costs due to lower sales volumes, partially offset by higher average selling prices on new homes sold through our Company-owned retail locations.

Previous wording

Gross profit for the Canadian Factory-built Housing segment increased by $2.6 million, or 54.2%, during the three months ended September 27, 2025 compared to the same period in the prior fiscal year. The increase in gross profit is primarily due to higher sales volumes. Gross profit as a percent of net sales was 28.6% for the three months ended September 27, 2025, compared to 21.8% in the same period of the prior year, primarily due to more absorption of fixed costs due to higher sales volumes and higher average selling prices.

Current wording

Gross profit for the Canadian Factory-built Housing segment increased by $0.1 million, or 1.5%, during the three months ended December 27, 2025 compared to the same period in the prior fiscal year. Gross profit as a percent of net sales was 26.7% for the three months ended December 27, 2025, compared to 26.4% in the same period of the prior year.

Previous wording

Gross profit for the Corporate/Other segment increased $2.5 million, or 49.1%, during the three months ended September 27, 2025 compared to the same period of the prior fiscal year due primarily to increased operating activity at Champion Financing.

Current wording

Gross profit for the Corporate/Other segment increased $0.5 million, or 6.9%, during the three months ended December 27, 2025 compared to the same period of the prior fiscal year due primarily to increased operating activity at Champion Financing.

Previous wording

Selling, general, and administrative expenses were $113.1 million for the three months ended September 27, 2025, an increase of $13.5 million, or 13.5%, compared to the same period in the prior fiscal year. The following is a summary of the change by operating segment.

Current wording

Selling, general, and administrative expenses were $109.7 million for the three months ended December 27, 2025, an increase of $1.5 million, or 1.4%, compared to the same period in the prior fiscal year. The following is a summary of the change by operating segment.

Previous wording

Selling, general, and administrative expenses for the U.S. Factory-built Housing segment increased $7.1 million, or 9.2%, during the three months ended September 27, 2025 as compared to the same period in the prior fiscal year. SG&A as a percent of segment net sales decreased to 12.9% for the three months ended September 27, 2025 compared to 13.1% during the comparable period of the prior fiscal year. The increase in SG&A was due to higher salaries and variable incentive compensation, which is generally based on sales volume or a measure of profitability, and the acquisition of Iseman Homes, partially offset by a $3.7 million gain on sale of an idle facility.

Current wording

Selling, general, and administrative expenses for the U.S. Factory-built Housing segment increased $2.6 million, or 3.3%, during the three months ended December 27, 2025 as compared to the same period in the prior fiscal year. SG&A as a percent of segment net sales increased to 13.3% for the three months ended December 27, 2025 compared to 13.1% during the comparable period of the prior fiscal year. The increase in SG&A was due to the inclusion of Iseman Homes for the period subsequent to the acquisition.

Previous wording

Selling, general, and administrative expenses for the Canadian Factory-built Housing segment increased $2.9 million, or 125.0%, for the three months ended September 27, 2025 when compared to the same period of the prior fiscal year. Selling, general, and administrative expenses as a percent of segment net sales increased to 19.9% for the three months ended September 27, 2025 compared to 10.4% during the comparable period of the prior fiscal year primarily due to $2.4 million of costs associated with the previously announced Kelowna, BC plant closure.

Current wording

Selling, general, and administrative expenses for the Canadian Factory-built Housing segment increased $0.1 million, or 4.1%, for the three months ended December 27, 2025 when compared to the same period of the prior fiscal year. Selling, general, and administrative expenses as a percent of segment net sales increased to 10.8% for the three months ended December 27, 2025 compared to 10.4% during the comparable period of the prior fiscal year.

Previous wording

Selling, general, and administrative expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations. Selling, general, and administrative expenses for Corporate/Other increased $3.5 million, or 17.0%, during the three months ended September 27, 2025 as compared to the same period of the prior fiscal year. The increase was primarily due to higher professional fees and incentive compensation, partially offset by lower IT costs.

Current wording

Selling, general, and administrative expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations. Selling, general, and administrative expenses for Corporate/Other decreased $1.2 million, or 4.8%, during the three months ended December 27, 2025 as compared to the same period of the prior fiscal year. The decrease was primarily due to lower IT costs, partially offset by higher professional fees.

Previous wording

Interest (income), net was $8.6 million for the six months ended September 27, 2025, compared to $9.0 million in the same period of the prior fiscal year. The change was primarily due to lower interest rates on invested cash balances and higher average floor plan payables outstanding during the period.

Current wording

Interest income, net was $3.8 million for the three months ended December 27, 2025, compared to $4.0 million in the same period of the prior fiscal year. The change was primarily due to higher outstanding floor plan payables, partially offset by higher invested cash balances at lower interest rates.

Previous wording

The following table summarizes other (income) expense for the six months ended September 27, 2025 and September 28, 2024:

Current wording

The following table summarizes other income for the three months ended December 27, 2025 and December 28, 2024:

Previous wording

Income tax expense for the three months ended September 27, 2025 was $18.6 million, representing an effective tax rate of 23.6%, compared to income tax expense of $15.4 million, representing an effective tax rate of 21.6% for the three months ended September 28, 2024. The effective tax rate for the three months ended September 27, 2025 was negatively impacted by a projected decrease in recognition of tax credits related to the sale of energy efficient homes as a result of OBBBA.

Current wording

Income tax expense for the three months ended December 27, 2025 was $12.4 million, representing an effective tax rate of 18.3%, compared to income tax expense of $16.7 million, representing an effective tax rate of 21.1% for the three months ended December 28, 2024. The effective tax rate for the three months ended December 27, 2025 was positively impacted by an increase in recognition of tax credits related to the sale of energy efficient homes.

Previous wording

EQUITY IN NET LOSS OF AFFILIATES

Current wording

EQUITY IN NET INCOME OF AFFILIATES

Previous wording

The following table summarizes equity in net loss of affiliates for the three months ended September 27, 2025 and September 28, 2024:

Current wording

The following table summarizes equity in net income of affiliates for the three months ended December 27, 2025 and December 28, 2024:

Previous wording

The Company's investment in ECN is accounted for under the equity method and the Company’s share of the earnings or losses of ECN are recorded on a three-month lag. Equity in net loss of affiliates of $0.1 million for the three months ended September 27, 2025 represents losses on the equity method investment in ECN and other unconsolidated equity method investments. Equity in net loss of affiliates of $0.7 million for the three months ended September 28, 2024 represents a gain on the equity method investment in ECN of $0.7 million and net losses from other equity method investments of $1.4 million.

Current wording

The Company's investment in ECN is accounted for under the equity method and the Company’s share of the earnings or losses of ECN are recorded on a three-month lag. Equity in net income of affiliates of $0.9 million for the three months ended December 27, 2025 represents a gain on the equity method investment in ECN of $1.2 million and net losses from other unconsolidated equity method investments of $0.3 million. Equity in net income of affiliates of $0.6 million for the three months ended December 28, 2024 represents a gain on the equity method investment in ECN of $0.7 million and net losses from other equity method investments of $0.1 million.

Previous wording

Adjusted EBITDA for the six months ended September 27, 2025 was $177.5 million, an increase of $28.3 million from the same period of the prior fiscal year. The increase is primarily a result of higher sales volumes and gross profit, partially offset by higher SG&A expenses.

Current wording

Adjusted EBITDA for the three months ended December 27, 2025 was $74.8 million, a decrease of $8.5 million from the same period of the prior fiscal year. The decrease is primarily a result of lower operating income as a result of lower gross margins.

Previous wording

UNAUDITED INCOME STATEMENTS FOR THE FIRST HALF OF FISCAL 2026 VS. 2025

Current wording

UNAUDITED RESULTS OF OPERATIONS FOR THE FIRST NINE MONTHS OF FISCAL 2026 VS. 2025

Previous wording

Net sales for the six months ended September 27, 2025 were $1.4 billion, an increase of $141.1 million, or 11.3%, compared to the six months ended September 28, 2024. The following is a summary of the change by operating segment.

Current wording

Net sales for the nine months ended December 27, 2025 were $2.0 billion, an increase of $152.8 million, or 8.1%, compared to the nine months ended December 28, 2024. The following is a summary of the change by operating segment.

Previous wording

Net sales for the Company’s U.S. manufacturing and retail operations increased by $124.3 million, or 10.5%, for the six months ended September 27, 2025 compared to the six months ended September 28, 2024. The increase was due to a 5.0% increase in the number of new homes sold and a 5.2% increase in the average selling price per new home. The increase in the number of homes sold was due to higher production volumes compared to the prior year and the inclusion of Iseman Homes since May 30, 2025. The increase in average selling price was due primarily to a shift in mix to more multi-wide units and increased pricing at our company-owned retail sales centers.

Current wording

Net sales for the Company’s U.S. manufacturing and retail operations increased by $135.9 million, or 7.6%, for the nine months ended December 27, 2025 compared to the nine months ended December 28, 2024. The increase was due to a 2.5% increase in the number of new homes sold and a 5.0% increase in the average selling price per new home. The increase in the number of homes sold was due to the inclusion of Iseman Homes since May 30, 2025 and a shift in mix of wholesale unit sales sold to independent channels versus homes sold through our company-owned retail sales centers. The increase in average selling price was due primarily to a shift in mix to more multi-wide units and increased pricing at our company-owned retail sales centers.

Previous wording

The Canadian Factory-built Housing segment net sales increased by $13.2 million, or 30.7% for the six months ended September 27, 2025 compared to the same period in the prior fiscal year, primarily due to a 28.9% increase in homes sold and a 1.4% increase in average home selling price. The increase in homes sold is due to higher demand in certain markets. The increase in ASP is due to price increases and changes in product mix. On a constant currency basis, net sales for the Canadian segment were unfavorably impacted by approximately $0.8 million due to fluctuations in the translation of the Canadian dollar to the U.S. dollar during the six months ended September 27, 2025 as compared to the same period of the prior fiscal year.

Current wording

The Canadian Factory-built Housing segment net sales increased by $13.3 million, or 19.4% for the nine months ended December 27, 2025 compared to the same period in the prior fiscal year, primarily due to a 19.1% increase in homes sold. The increase in homes sold is due to higher demand in certain markets. On a constant currency basis, net sales for the Canadian segment were unfavorably impacted by approximately $1.2 million due to fluctuations in the translation of the Canadian dollar to the U.S. dollar during the nine months ended December 27, 2025 as compared to the same period of the prior fiscal year.

Previous wording

Net sales for Corporate/Other includes the Company’s transportation business, financing activities and the elimination of intersegment sales. For the six months ended September 27, 2025, net sales increased $3.6 million, or 23.8%, primarily attributable to increased operating activities in Champion Financing, partially offset by a decrease in recreational vehicle shipments.

Current wording

Net sales for Corporate/Other includes the Company’s transportation business, financing activities and the elimination of intersegment sales. For the nine months ended December 27, 2025, net sales increased $3.5 million, or 15.1%, primarily attributable to increased operating activities in Champion Financing, partially offset by a decrease in recreational vehicle shipments.

Previous wording

The following table summarizes gross profit for the six months ended September 27, 2025 and September 28, 2024:

Current wording

The following table summarizes gross profit for the nine months ended December 27, 2025 and December 28, 2024:

Previous wording

Gross profit as a percent of sales during the six months ended September 27, 2025 was 27.3% compared to 26.6% during the six months ended September 28, 2024. The following is a summary of the change by operating segment.

Current wording

Gross profit as a percent of sales during the nine months ended December 27, 2025 was 26.9% compared to 27.1% during the nine months ended December 28, 2024. The following is a summary of the change by operating segment.

Previous wording

Gross profit for the Canadian Factory-built Housing segment increased by $5.5 million, or 54.4% during the six months ended September 27, 2025 compared to the same period in the prior fiscal year. The increase in gross profit is primarily due to higher sales volumes. Gross profit as a percent of net sales was 28.0% for the six months ended September 27, 2025, compared to 23.7% in the same period of the prior year, primarily the result of increased leverage of fixed manufacturing costs.

Current wording

Gross profit for the Canadian Factory-built Housing segment increased by $5.6 million, or 33.3% during the nine months ended December 27, 2025 compared to the same period in the prior fiscal year. The increase in gross profit is primarily due to higher sales volumes. Gross profit as a percent of net sales was 27.6% for the nine months ended December 27, 2025, compared to 24.7% in the same period of the prior year, primarily the result of increased leverage of fixed manufacturing costs.

Previous wording

Gross profit for the Corporate/Other segment increased $5.2 million, or 53.3%, during the six months ended September 27, 2025 compared to the same period of the prior fiscal year. Gross profit increased as a result of increased operating activity at Champion Financing.

Current wording

Gross profit for the Corporate/Other segment increased $5.6 million, or 34.3%, during the nine months ended December 27, 2025 compared to the same period of the prior fiscal year. Gross profit increased as a result of increased operating activity at Champion Financing.

Previous wording

Selling, general, and administrative expenses include in part costs that are not directly attributable to the manufacture or resale of our products, including foreign currency transaction gains and losses, equity compensation, and intangible amortization expense. The following table summarizes selling, general, and administrative expenses for the six months ended September 27, 2025 and September 28, 2024:

Current wording

Selling, general, and administrative expenses include in part costs that are not directly attributable to the manufacture or resale of our products, including foreign currency transaction gains and losses, equity compensation, and intangible amortization expense. The following table summarizes selling, general, and administrative expenses for the nine months ended December 27, 2025 and December 28, 2024:

Previous wording

Selling, general, and administrative expenses were $224.4 million for the six months ended September 27, 2025, an increase of $15.9 million, or 7.6%, compared to the same period in the prior fiscal year. The following is a summary of the change by operating segment.

Current wording

Selling, general, and administrative expenses were $334.2 million for the nine months ended December 27, 2025, an increase of $17.5 million, or 5.5%, compared to the same period in the prior fiscal year. The following is a summary of the change by operating segment.

Previous wording

Selling, general, and administrative expenses for the U.S. Factory-built Housing segment increased $8.3 million, or 5.1%, during the six months ended September 27, 2025 as compared to the same period in the prior fiscal year. Selling, general, and administrative expenses, as a percent of segment net sales decreased to 13.0% for the six months ended September 27, 2025 compared to 13.7% during the comparable period of the prior fiscal year. The increase in selling, general, and administrative expenses was primarily due to higher wages and incentive compensation costs, which are generally based on sales volume or measures of profitability, the inclusion of Iseman Homes, and $1.0 million of costs associated with the idling of the Bartow, Florida plant, partially offset by a $3.7 million gain on the sale of an idle facility in the second quarter of fiscal 2026 and a charge of $7.9 million in the first quarter of fiscal 2025 related to the change in fair value of the contingent consideration included in the acquisition of Regional Homes which did not recur in the current year.

Current wording

Selling, general, and administrative expenses for the U.S. Factory-built Housing segment increased $11.0 million, or 4.5%, during the nine months ended December 27, 2025, as compared to the same period in the prior fiscal year. Selling, general, and administrative expenses, as a percent of segment net sales decreased to 13.1% for the nine months ended December 27, 2025 compared to 13.5% during the comparable period of the prior fiscal year. The increase in selling, general, and administrative expenses was primarily due to higher incentive compensation costs, which are generally based on sales volume or measures of profitability, the inclusion of Iseman Homes, and $1.0 million of costs associated with the idling of the Bartow, Florida plant, partially offset by a $3.7 million gain on the sale of an idle facility in the second quarter of fiscal 2026 and a charge of $7.9 million in the first quarter of fiscal 2025 related to the change in fair value of the contingent consideration included in the acquisition of Regional Homes which did not recur in the current year.

Previous wording

Selling, general, and administrative expenses for the Canadian Factory-built Housing segment increased by $5.7 million compared to the same period of the prior fiscal year. Selling, general, and administrative expenses as a percent of segment net sales increased to 19.4% for the six months ended September 27, 2025 compared to 12.1% during the comparable period of the prior fiscal year. The increases were due to $5.2 million of costs associated with the Kelowna, BC plant closure and higher incentive compensation costs, which are generally based on sales volume or measures of profitability.

Current wording

Selling, general, and administrative expenses for the Canadian Factory-built Housing segment increased by $5.8 million compared to the same period of the prior fiscal year. Selling, general, and administrative expenses as a percent of segment net sales increased to 16.7% for the nine months ended December 27, 2025 compared to 11.5% during the comparable period of the prior fiscal year. The increases were due to $5.2 million of costs associated with the Kelowna, BC plant closure and higher incentive compensation costs, which are generally based on sales volume or measures of profitability.

Previous wording

Selling, general, and administrative expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations. Selling, general, and administrative expenses for Corporate/Other increased $1.9 million, or 4.6%, during the six months ended September 27, 2025 as compared to the same period of the prior fiscal year due primarily to higher professional fees partially offset by lower IT costs.

Current wording

Selling, general, and administrative expenses for Corporate/Other includes the Company’s transportation operations, corporate costs incurred for all segments, and intersegment eliminations. Selling, general, and administrative expenses for Corporate/Other were consistent year-over-year, increasing $0.7 million, or 1.0%, during the nine months ended December 27, 2025 as compared to the same period of the prior fiscal year.

Previous wording

The following table summarizes the components of interest (income), net for the six months ended September 27, 2025 and September 28, 2024:

Current wording

The following table summarizes the components of interest income, net for the nine months ended December 27, 2025 and December 28, 2024: