Company: CVCO
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000278166-25-000057
Chunk: 48

Company: CAVCO INDUSTRIES, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 7
Chunk 48
---
.4 million higher incentive compensation on higher sales, and approximately $3.8 million of incremental costs due to the Kentucky Dream Home acquisition that took place in the prior year. 

36

Interest Income. 

Interest income was flat with $21.1 million in fiscal year 2025 and $21.0 million in fiscal year 2024. 

Interest Expense. 

Interest expense was $0.5 million in fiscal year 2025 and $1.6 million in fiscal year 2024. The change is due to adjustments in the redemption value of the noncontrolling interest for Craftsman Homes occurring in fiscal year 2024, which did not occur in fiscal year 2025 as Craftsman was wholly owned by the Company for all of fiscal year 2025.

Other Income, net. 

Other income, net primarily consists of realized and unrealized gains and losses on corporate investments, gains and losses from the sale of property, plant and equipment and partnership income from our unconsolidated joint ventures. For fiscal years 2025 and 2024, Other income, net was $0.2 million and $0.8 million, respectively. The largest driver of the change was $0.1 million of gains on corporate equity securities in fiscal year 2025 compared to $0.3 million of gains on corporate equity securities in the prior fiscal year. 

Income Before Income Taxes. 

Income before income taxes consisted of the following for fiscal years 2025 and 2024, respectively:

 Year Ended($ in thousands)March 29,2025March 30,2024ChangeIncome before income taxes:Factory-built housing$209,564 $192,814 $16,750 8.7 %Financial services1,506 6,366 (4,860)(76.3)%$211,070 $199,180 $11,890 6.0 %

Income Tax Expense. 

Income tax expense was $40.0 million, resulting in an effective tax rate of 19.0% for the fiscal year ended March 29, 2025, compared to income tax expense of $41.3 million and an effective rate of 20.7% for the fiscal year ended March 30, 2024. The lower effective tax rate in fiscal year 2025 is related to an increase of $5.4 million in tax credits primarily related to the sale of energy efficient homes and Energy Star credits available under