# EDGAR Filing Document

**Accession Number:** 0000090896
**File Stem:** 0001193125-25-139543
**Filing Date:** 2025-6
**Character Count:** 68585
**Document Hash:** 49db2dc582d8b453352bb7a6f5993687
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-139543.hdr.sgml**: 20250612

**ACCESSION NUMBER**: 0001193125-25-139543

**CONFORMED SUBMISSION TYPE**: ARS

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20250329

**FILED AS OF DATE**: 20250612

**DATE AS OF CHANGE**: 20250612

**EFFECTIVENESS DATE**: 20250612

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Champion Homes, Inc.
- **CENTRAL INDEX KEY:** 0000090896
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOBILE HOMES [2451]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 351038277
- **STATE OF INCORPORATION:** IN
- **FISCAL YEAR END:** 0329

**FILING VALUES:**
- **FORM TYPE:** ARS
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-04714
- **FILM NUMBER:** 251041628

**BUSINESS ADDRESS:**
- **STREET 1:** 755 W BIG BEAVER ROAD
- **STREET 2:** SUITE 1000
- **CITY:** TROY
- **STATE:** MI
- **ZIP:** 48084
- **BUSINESS PHONE:** 248 614 8211

**MAIL ADDRESS:**
- **STREET 1:** 755 W BIG BEAVER ROAD
- **STREET 2:** SUITE 1000
- **CITY:** TROY
- **STATE:** MI
- **ZIP:** 48084

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Skyline Champion Corp
- **DATE OF NAME CHANGE:** 20180601

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SKYLINE CORP
- **DATE OF NAME CHANGE:** 19920703

### Attached PDF Documents

**Attachment 1:** `d947925dars.pdf`

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# CHAMPION HOMES

## 2025 ANNUAL REPORT

● ● ● ●

CHAMPION HOMES

Dear Fellow Shareholders,

Fiscal 2025 represented another exciting chapter in the continued growth and advancement of Champion Homes. I am pleased that since stepping into the role of CEO in December 2024, I have been able to meet with many of you and many of our business partners, customers, and employees. These interactions provide timely feedback and increase my confidence that we have a solid foundation to build on - with meaningful near and long-term opportunities that we’ve aligned our strategic investments and execution to deliver on.

Our performance this year is a testament to the importance of tenacious execution, centered on an unwavering focus on our customers. I am grateful to the entire Champion Homes team for their exceptional efforts to grow revenue and earnings in fiscal 2025.

In addition to growing Fiscal 2025 sales 22.7% to $2.5 Billion and delivering Adjusted EBITDA of $285.1 million, we made a significant impact in the communities we serve, providing over 26,000 homes to customers and families across the US and Canada. Each home we sell is a direct result of our exciting home designs, quality, value, and the excellence that our team members strive to deliver before, during and after the sale.

The need for affordable housing remains ever-present across the US and Canada. The long-term outlook for Champion is strong and we have the strategies in place to deliver for all our stakeholders.

Strategies that we are thoughtfully executing as we evolve the team with a combination of internal advancement and new talent. Our guiding priorities are not only for the long-term, they provide a clear roadmap for today's environment and deploying our capital. Including:

- Winning as a customer-centric, high-performance agile team
- Innovating and differentiating with products and services by customer segment and that attracts new buyers
- Expanding and elevating our go-to-market channels, including delivering experiences before, during and after the sale, that earn new customers and their referrals
- Increasing awareness, demand and advocacy for our brands and homes
- Leveraging our costs, capacity and investments in people, and technology
- Aligning our capital allocation with our strategy, including M&amp;A and share repurchases

In closing, I wanted to share my sincere appreciation for your support. We are excited about the future and all that we will continue to build together.

Sincerely,

![img-4.jpeg](img-4.jpeg)

Tim Larson
President, Chief Executive Officer and Director

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

# FORM 10-K

☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended March 29, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE PERIOD FROM TO
Commission File Number 001-04714

# CHAMPION HOMES, INC.
(Exact name of registrant as specified in its charter)

Indiana
(State of Incorporation)

35-1038277
(I.R.S. Employer Identification No.)

755 West Big Beaver Road, Suite 1000
Troy, Michigan
(Address of Principal Executive Offices)

48084
(Zip Code)

(248) 614-8211
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| --- | --- | --- |
| Common Stock | SKY | New York Stock Exchange |

Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes ☐ No ☑

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☑
Non-accelerated filer ☐

Accelerated filer ☐
Smaller reporting company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The aggregate market value of the Registrant's common stock, par value $0.0277 per share, held by non-affiliates was $5,354,199,191 (computed by reference to the closing sales price of the Registrant's common stock as of September 28, 2024, the last business day of the Registrant's most recently completed second fiscal quarter). Solely for purposes of this disclosure, shares of common stock held by executive officers and directors of the Registrant as of such date have been excluded because such persons may be deemed to be affiliates. This determination of executive officers and directors as affiliates is not necessarily a conclusive determination for any other purposes.

Number of shares of common stock outstanding as of May 20, 2025: 57,282,557

FORM 10-K

# DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's definitive Proxy Statement used in connection with its 2025 Annual Meeting of Shareholders to be held on July 24, 2025, and which will be filed within 120 days after the end of the registrant's fiscal year, are incorporated by reference into this Annual Report on Form 10-K in response to Part III, Items 10, 11, 12, 13, and 14.

## TABLE OF CONTENTS

### PART I

- Item 1. Business 4
- Item 1A. Risk Factors 12
- Item 1B. Unresolved Staff Comments 20
- Item 1C. Cybersecurity 20
- Item 2. Properties 21
- Item 3. Legal Proceedings 22
- Item 4. Mine Safety Disclosures 22

### PART II

- Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 23
- Item 6. Reserved 24
- Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 25
- Item 7A. Quantitative and Qualitative Disclosures About Market Risk 37
- Item 8. Financial Statements and Supplementary Data 37
- Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 37
- Item 9A. Controls and Procedures 37
- Item 9B. Other Information 39
- Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 39

### PART III

- Item 10. Directors, Executive Officers, and Corporate Governance 40
- Item 11. Executive Compensation 40
- Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 40
- Item 13. Certain Relationships and Related Transactions, and Director Independence 41
- Item 14. Principal Accountant Fees and Services 41

### PART IV

- Item 15. Exhibits and Financial Statement Schedules 42
- (a) Financial Statements and Financial Statement Schedules 42
- Item 16. Form 10-K Summary 44

# EXPLANATORY NOTE

On August 5, 2024, Skyline Champion Corporation changed its name to Champion Homes, Inc., which we refer to in this Annual Report on Form 10-K as the "name change." Unless the context otherwise requires, references herein to the "Company," "we," "us," or "our" refer to Skyline Champion Corporation for periods ending on or before the name change and to Champion Homes, Inc. for any references to the Company after the name change.

PART I

# Cautionary Statement About Forward-Looking Statements

Some of the statements in this Annual Report on Form 10-K (this "Annual Report") that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about our expectations regarding our future liquidity, earnings, expenditures, and financial condition. These statements are often identified by the words "will," "could", "should," "anticipate," "believe," "expect," "intend," "estimate," "hope," or similar expressions. These statements reflect management's current views with respect to future events and are subject to risks and uncertainties. There are risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those in our forward-looking statements, including regional, national and international economic, financial, public health and labor conditions, and the following:

- supply-related issues, including prices and availability of materials;
- changes in U.S trade policies, including tariffs or other trade protection measures;
- labor-related issues;
- inflationary pressures in the North American economy;
- the cyclicality and seasonality of the housing industry and its sensitivity to changes in general economic or other business conditions;
- demand fluctuations in the housing industry, including as a result of actual or anticipated increases in homeowner borrowing rates;
- the possible unavailability of additional capital when needed;
- competition and competitive pressures;
- changes in consumer preferences for our products or our failure to gauge those preferences;
- quality problems, including the quality of parts sourced from suppliers and related liability and reputational issues, including those related to the remediation of the water intrusion claims;
- data security breaches, cybersecurity attacks, and other information technology disruptions;
- the potential disruption of operations caused by the conversion to new information systems;
- the extensive regulation affecting the production and sale of factory-built housing and the effects of possible changes in laws with which we must comply;
- the potential impact of natural disasters on our supply chain, sales and raw material costs;
- the risks associated with mergers and acquisitions, including integration of operations and information systems;
- periodic inventory adjustments by, and changes to relationships with, independent retailers;
- changes in interest and foreign exchange rates;
- insurance coverage and cost issues;
- the possibility that all or part of our intangible assets, including goodwill, might become impaired;
- the possibility that all or part of our investment in ECN Capital Corp. ("ECN") might become impaired;
- the possibility that our risk management practices may leave us exposed to unidentified or unanticipated risks;
- the potential disruption to our business caused by public health issues, such as an epidemic or pandemic, and resulting government actions; and
- other risks described in Part I - Item 1A, "Risk Factors," as well as the risks and information provided from time to time in our other periodic reports filed with the Securities and Exchange Commission (the "SEC").

If any of the risks or uncertainties referred to above materializes or if any of the assumptions underlying our forward-looking statements proves to be incorrect, then differences may arise between our forward-looking statements and our actual results, and such differences may be material. Investors should not place undue reliance on our forward-looking statements, which speak only as of the date of this report. We assume no obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof, except as required by law.

2025 Annual Report | CHAMPION HOMES

PART I

# ITEM 1. BUSINESS

## General Overview

Champion Homes, Inc., formerly known as Skyline Champion Corporation, an Indiana corporation, and its consolidated subsidiaries are referred to herein as "Champion Homes," "us," "we," "our," the "Company," and any other similar terms, unless otherwise indicated in this Annual Report.

We are a leading producer of factory-built housing in North America with net sales for the year ended March 29, 2025 ("fiscal 2025") of approximately $2.5 billion. We have more than 70 years of homebuilding experience, approximately 9,000 employees and 48 manufacturing facilities located in 20 states across the United States and three provinces in western Canada. We offer a leading portfolio of manufactured and modular homes, park model RVs, accessory dwelling units ("ADUs") and modular buildings for the single and multi-family markets. Our facilities are strategically located to serve strong regions in the United States and western Canada. We operated 20 manufacturing facilities in the top ten states with the highest number of manufactured homes shipped in fiscal 2025. We believe that we maintained the following leading positions in the factory-built housing industry in the United States and western Canada (based on units) in calendar year 2024:

- Number two position in the manufactured housing segment in the United States
- Number one modular builder in the United States
- A leading position in western Canada
- A leading position in park model RV sales

We believe our leading positions are driven by our comprehensive product offering, strong brand reputation, broad manufacturing footprint, and our complementary retail, construction services, and logistics businesses. Our market share in the United States total housing market was approximately $2.5\%$ in fiscal 2025.

We design and build a range of manufactured and modular homes, park model RVs, cabins and ADUs. We believe that the high quality and broad scope of our product and service offerings provide us a competitive advantage relative to other factory-built and certain site-built homes. With our award-winning product designs, we seek to meet the needs of our customers, while also providing them with an array of pre-designed options. Our products are marketed and distributed through a network of independent and company-owned retail sales centers, community operators, government agencies, and builder/developers. We build homes under some of the most well-known brand names in the factory-built housing industry including Champion Homes, Genesis Homes, Skyline Homes, Regional Homes, Athens Park, 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.

In addition to our core home-building business, we operate a factory-direct manufactured home retail business, marketed under the Regional Homes, Titan Factory Direct and Champion Homes Center brands. We had 72 active sales centers spanning the United States at the end of fiscal 2025. We also provide construction services to install and set-up factory-built homes under the Champion Construction brand, and we operate Star Fleet Trucking, which provides transportation services to the manufactured housing and other industries from several dispatch locations across the United States.

During fiscal 2025, we began lending activities through Champion Financing, our joint venture with Triad Financial Services. Champion Financing provides tailored manufactured housing dealer floor plan and consumer retail financing products. We believe those products make it easier for our customers to acquire financing and own a home, filling a portion of the gap in consumer lending in the manufactured-housing markets.

Our principal executive offices are located at 755 West Big Beaver Road, Suite 1000, Troy, Michigan 48084. Our website is located at www.championhomes.com. Our website and the information contained on our website is not incorporated by reference and is not a part of this Annual Report. We make available on our website, as soon as reasonably practicable, all of the reports required to be filed with the SEC. The SEC also maintains a website (www.sec.gov) containing reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The information on the SEC's website is not incorporated by reference and is not a part of this Annual Report.

CHAMPION HOMES | 2025 Annual Report

PART I

# Business Strategy

Our business strategy is designed to drive sustainable long-term growth by delivering high-quality, innovative, and affordable homes while building lasting customer relationships through the home-ownership life cycle. We are focused on enhancing operational excellence, expanding customer engagement, leveraging digital and automation technologies, and executing disciplined growth initiatives. Our strategic priorities are organized around five interconnected pillars:

# 1. Win as a Customer-Centric, High-Performance Agile Team

We are focused on strengthening our operations and culture to be more responsive, agile, and aligned with customer needs. Key initiatives include:

- Executing process improvements and developing team capabilities to adapt quickly to evolving customer expectations and market dynamics.
- Enhancing our product portfolio by leveraging digital tools that allow customers to shop, design, configure, and price their homes online.
- Using real-time analytics to improve decision-making and operations.
- Expanding our company-owned retail sales center footprint to facilitate customer engagement and responsiveness.

# 2. Innovate and Differentiate with Products and Services

We continue to invest in product and service innovation to deliver differentiated solutions across customer segments and price points, including:

- Refining product floor plan designs and options to offer "designed flexibility" to customers.
- Standardizing certain home components to deliver higher value while improving quality and customer satisfaction at competitive prices.
- Enhancing the online buying experience to meet evolving home-buying trends and consumer engagement expectations.

# 3. Expand and Elevate Our Go-to-Market Channels, Including Delivering Experiences Before, During, and After the Sale that Earn Customers and Referrals

We are expanding our go-to-market capabilities to provide a seamless, enhanced experience at every stage of the customer journey:

- Pursuing strategic acquisitions of retail locations, and manufacturing facilities to expand capabilities efficiently.
- Utilizing digital tools and customer touchpoints to build long-term advocacy and facilitate referral generation.
- Invest in post-sale engagement tools that extend relationships beyond the initial home purchase.

# 4. Increase Awareness, Demand, and Advocacy for Our Brands, Products, and Services

We are committed to strengthening brand awareness, building customer loyalty, and increasing demand by:

- Investing in digital marketing and social engagement initiatives to attract new customers and strengthen brand visibility.
- Continuing to increase our products and services beyond the manufacturing process.
- Growing Champion Financing in partnership with Triad Financial Services to enhance tailored dealer floor plan and consumer retail financing products.
- Leveraging technology, selling tools, and customer experience practices to accelerate sales growth.

# 5. Execute the Fundamentals, Efficiently Leverage Our Costs/ Investments in People, Processes, Data, and Technology

We are executing on operational fundamentals and smart resource management to scale efficiently and drive growth:

- Investing in an enterprise-wide, cloud-based platform to facilitate smarter decision-making, and improve manufacturing execution.
- Implementing production automation to reduce reliance on direct labor, reduce material waste, and improve quality.
- Maintaining a disciplined approach to operational execution, cost management, and investment prioritization to deliver profitable, scalable growth.
- Implementing continuous improvement initiatives related to production, procurement, and labor cost savings.
- Employing metrics-driven accountability across all operations.

2025 Annual Report | CHAMPION HOMES

PART I

# Environmental, Social and Governance ("ESG")

We demonstrate our commitment to ESG through company-wide and plant-specific programs and through our everyday business practices when providing high-quality, yet affordable homes to U.S. and Canadian homebuyers. As part of this commitment, we have partnered with a third party to inform, develop, and formalize our ESG strategy. Our Sustainability Report is published on our website at www.championhomes.com. Manufactured and modular homes cost up to 50% less per square foot than conventional site-built homes, expanding the opportunity for individuals to own a home despite an ever-growing housing affordability gap.

The Board of Directors has formal responsibility for the oversight and integration of all of the Company's sustainability programs and policies, and the Audit Committee, Compensation Committee, and Nominating and Governance Committee have lead responsibility for the Company's strategy, policies and practices with respect to environmental sustainability, social and human capital matters, and governance, respectively. Our five ESG tenets include: (1) Environmental Focus, (2) Health &amp; Safety, (3) Human Capital, (4) Community Outreach, and (5) Governance.

Champion Homes manages its operations to minimize resource consumption and environmental impacts. We continue to identify opportunities to reduce our environmental impact across our operations by reducing raw material waste, designing and constructing energy efficient homes, conserving our natural resources through recycling programs and reducing our carbon footprint by producing our homes in factories close to where our customers and employees live. Many of our U.S. manufacturing facilities are certified to produce Energy Star® energy efficient rated homes through a special EPA program for manufactured housing. Environmental sustainability is at the forefront of what we do every day.

We construct manufactured homes in controlled environments. Our efficient construction process results in less energy usage and material waste compared to traditional site-built construction. In many of our plants, we have transitioned to LED lighting, and we recycle insulation material, lumber, metals, plastics, paper and many other products. In the course of executing our expansion plans, we have repurposed older buildings, both revitalizing the local community and preserving vacant land. This reduces the need for new building materials and extensive deployment of construction equipment, and thus reduces carbon emissions.

We participate in a reforestation program with Arbor Day Foundation. With forestry products central to the construction of homes, we participate in a program to plant one tree for every tree used in construction of our homes. Through this partnership, we have planted more than one million trees since 2021. Reforestation contributes to the environment by replenishing forests, reducing greenhouse gases ("GHG") emissions, and protecting local watersheds.

As a nationwide provider of affordable housing, we have a social responsibility to not only the buyers of our homes, our retail and community customers and our employees, but also to the communities in which they live and work. Many of our manufacturing facilities participate locally to support programs such as Habitat for Humanity and other local charities as well as work-study programs with local community colleges and high schools.

Champion Homes is committed to ensuring sound corporate governance. We strive to maintain strong governance practices that protect and enhance accountability for the benefit of Champion Homes, its shareholders, customers, employees and other business stakeholders. We regularly review and refine our governance practices and policies to align with evolving issues. Our internal risk management team oversees compliance with applicable laws and regulations and coordinates with subject matter experts throughout the business to identify, monitor and mitigate risk including information security risk management and cyber defense programs. Our Corporate Governance Guidelines, the charters of committees of our Board and our Code of Conduct can be found in the Governance Documents section under the Governance tab on our website at www.championhomes.com. Additional information on our Corporate Governance policies can be found in our Proxy Statement filed with the SEC.

# Human Capital

The Champion Homes team manages our business in accordance with the Company's Core Operating Principles:

- Build and develop exceptional teams
- Create a safe work environment
- Build strong relationships
- Take pride in our craftsmanship
- Act with integrity and respect
- Be open and honest
- Run the business like it is your own

CHAMPION HOMES | 2025 Annual Report

PART I

We appreciate each member of the Champion Homes team and the unique skills and diversity of thought that each employee contributes to the overall success of the Company. We strive for an inclusive environment and reward individual contributions that foster innovative ideas for improving our products and workplace. We do not tolerate discrimination or harassment of any kind, including, but not limited to discrimination or harassment on the basis of gender identity, race, religion, age or disabilities. We are committed to the development of our employees. The Company follows standard onboarding and training protocols for our direct labor team members and also offers management and OSHA training for our supervisors. We are committed to improving employee engagement and reducing turnover through these onboarding, training and mentoring activities. Depending on availability, our plants participate in local outreach programs and hire disadvantaged members of the local community.

In furtherance of our commitments to our employees and communities, the Company has adopted an internal Anti-Human Trafficking Policy applicable to all of our operations and further engaged a third-party vendor to audit our supply chain annually to identify potential human trafficking risks. A copy of our Anti-Human Trafficking Policy is available within the Governance section of our website at www.championhomes.com.

As of March 29, 2025, we employed approximately 9,000 full and part time employees. Our human capital resource objectives include identifying, recruiting, training, retaining and incentivizing our employees. We are proud of the strong relationship we maintain with our employees and seek to support them through competitive compensation packages and a comprehensive suite of benefits. As of March 29, 2025, our manufacturing facilities in Canada employed approximately 750 workers of which the majority belong to trade associations that operate under collective bargaining agreements. There are five collective bargaining agreements (one for each Canadian manufacturing facility) and each has a separate expiration date. Four of the agreements are set to expire at various dates through 2027. One agreement expired in June 2024 and is being renegotiated.

We are committed to conducting our business with integrity and in compliance with all applicable laws of the cities, states and countries in which we operate. We have adopted a written Code of Business Conduct and have a company-wide training program to train and assist employees in this regard. We encourage employees to report concerns through a variety of channels, including a compliance and ethics line which allows for anonymous reporting. All reports are investigated and resolved. We also maintain an anti-retaliation policy such that any employee who reports a concern in good faith is protected from harassment, retaliation or adverse employment consequences.

We take the health and safety of our employees seriously. We provide a variety of Company sponsored healthcare programs, including health, dental, and vision, that allow employees to manage their and their family's health and wellbeing. We expect each employee to follow our safety standards and protocols. Our Environmental Health and Safety ("EHS") team works to benchmark and implement EHS best practices across our plants. Each of our locations performs regular safety audits to ensure that proper safety policies are in place and appropriate safety training is provided. In addition to training and development, we measure and report monthly safety metrics and regularly review our safety performance with our Board of Directors.

## Factory-Built Housing

A majority of our manufactured products are constructed in accordance with the regulations and rules of the U.S. Department of Housing and Urban Development ("HUD") and the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended ("HUD code"). We produce a broad range of manufactured and modular homes under a variety of brand names and in a variety of floor plans and price ranges. While most of the homes we build are single-family, multi-section, ranch-style homes, we also build two-story and single-section homes, as well as multi-family units such as town homes, apartments, duplexes, and triplexes. The single-family homes that we manufacture generally range in size from 400 to 4,000 square feet and typically include two to four bedrooms, a living room or family room, a dining room, a kitchen and typically two full bathrooms. We also build park model RVs and cabins for resorts and campgrounds, and ADUs for backyard or recreational living. We believe our portfolio of brands and home offerings, and our ability to quickly shift production gives us the ability to adapt as consumer preferences change or demand in certain markets change.

We regularly introduce homes with new floor plans, exterior designs and elevations, decors and features. Our corporate architecture, marketing, and engineering departments work with our manufacturing facilities to design homes that appeal to consumers' changing tastes at appropriate price points for their respective markets. We design and build homes with a traditional residential or site-built appearance through the use of, among other features, dormers and higher pitched roofs. We are also very active in the design and construction of energy-efficient homes and built over 5,500 homes last year that met the Energy Star® certification standards.

We offer our Genesis brand of homes which have features similar to site-built home amenities such as porches and garages. These homes are designed to be eligible for financing programs with terms similar to traditional mortgages which make them attractive to the builder/developer segment of the housing market. We expect our builder/developer customer base to continue to grow as those customers realize the value proposition these homes provide compared to other site-built alternatives.

2025 Annual Report | CHAMPION HOMES 7

PART I

However, in early 2022, the U.S. Federal Open Market Committee began raising the target rate for the federal funds rate in response to rising inflation. The federal funds rate stabilized in fiscal 2024; however, it remains significantly higher than historic lows and the rate could increase in the future if rates of inflation increase. Potential manufactured housing customers have been and may continue to be less willing or able to pay the increased monthly costs that result from higher loan rates. In addition, recent increases in the prices of homes resulting from inflation, combined with higher loan rates, have limited and may continue to limit consumers' ability to obtain financing to purchase a home. In addition, lenders may increase the qualifications needed for financing or adjust their terms to address any increased credit risk. These factors could continue to adversely affect the sales or pricing of our factory-built homes. These developments have historically had, and may once again have, an adverse effect on the overall demand for factory-built housing and its competitiveness with other forms of housing and could continue to adversely affect our results of operations and financial condition.

The liquidity provided by the GSEs and the FHA is also critical in insuring or purchasing home mortgages and creating or insuring investment securities that are either sold to investors or held in their portfolios. Any limitations or restrictions on the availability of financing by these agencies could adversely affect interest rates, financing, and our sales of new homes.

## Inflation has and could continue to adversely affect our business and financial results.

Inflation adversely affects us by increasing costs of raw materials, labor and transportation. Inflation also adversely affects our customers by decreasing purchasing power and ability to afford a new home. The U.S. economy recently experienced a period of higher inflation, stemming from efforts by the U.S. government to stimulate the economy and other factors. The increased rate of inflation has also lead to higher interest rates, which has had and continue to have a negative impact on the housing industry, as well as increases in our borrowing rates. While we have historically been able to pass along price increases to our customers, in a persistently inflationary environment, we may not be able to raise prices sufficiently in order to maintain our margins.

## The availability of wholesale financing for retailers is limited due to a limited number of floor plan lenders and reduced lending limits.

Factory-built housing retailers generally finance their inventory purchases with wholesale floor plan financing provided by lending institutions. The availability of wholesale financing is significantly affected by the number of floor plan lenders and their lending limits. Limited availability of floor plan lending negatively affects the inventory levels of our independent retailers, the number of retail sales center locations and related wholesale demand, and adversely affects the availability of and access to capital on an ongoing basis. As a result, if the availability of wholesale financing is reduced, we could experience sales declines or a higher level of customer defaults and our operating results and cash flows could suffer.

## We have contingent repurchase obligations related to wholesale financing provided to industry retailers.

As is customary in the factory-built housing industry, a significant portion of our manufacturing sales to independent retailers are financed under floor plan agreements with financing companies. In connection with those floor plan financing programs, we generally have separate agreements with the financing companies that require us to repurchase homes upon default by the retailer and repossession of the homes by the financing companies. These repurchase agreements are applicable for various periods of time, generally up to 24 months after the sale of the home to the retailer. However, certain homes are subject to repurchase until the home is sold by the retailer. We may be required to honor contingent repurchase obligations in the future and may incur additional expense and reduced cash flows because of these repurchase agreements.

## Industry conditions and future operating results could limit our sources of capital. If we are unable to locate suitable sources of capital when needed, we may be unable to maintain or expand our business.

We depend on our cash balances, cash flows from operations, and our revolving credit facility (the "Credit Facility") to finance our operating requirements, capital expenditures, and other needs. If our cash balances, cash flows from operations, and availability under the Credit Facility are insufficient to finance our operations and alternative capital is not available, then we may not be able to expand our business and make acquisitions, or we may need to curtail or limit our existing operations.

## Changes in foreign exchange rates could adversely affect the value of our investments in Canada and cause foreign exchange losses.

We have substantial investments in businesses in Canada. Unfavorable changes in foreign exchange rates could adversely affect the value of our investments in these businesses.

## An impairment of all or part of our goodwill could adversely affect our operating results and net worth.

As of March 29, 2025, $17.0\%$ of our total assets consisted of goodwill, all of which is allocated to reporting units included in the U.S. Factory-built Housing segment. In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards

CHAMPION HOMES

2025 Annual Report

PART I

Codification ("ASC") 350, Intangibles - Goodwill and Other ("ASC 350"), we test goodwill at least annually for impairment or more often than annually if an event or circumstance indicates that an impairment is more likely than not to have occurred. If goodwill has become impaired, we charge the impairment as an expense in the period in which the impairment occurs. See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 to the Consolidated Financial Statements. A write-off of all or part of our goodwill could adversely affect our results of operations and financial condition.

**An impairment of all or part of our investment in ECN Capital Corporation could adversely affect our operating results and net worth.**

As of March 29, 2025, our investment in ECN Capital Corporation ("ECN") was $134.7 million. We assess our investment in ECN for impairment when events or circumstance indicate that a decline in value below the carrying amount of the investment is other than temporary. If our investment in ECN has become impaired, we would charge the impairment as an expense in the period in which the impairment occurs. See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 1 to the Consolidated Financial Statements. A write-off of all or part of our investment in ECN could adversely affect our results of operations and financial condition.

**We identified a material weakness in our internal control over financial reporting which, if not remediated appropriately or timely, could affect our ability to report financial information timely and accurately, negatively affect investor confidence, and cause reputational harm.**

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis. As disclosed in Part II, Item 9A "Controls and Procedures," management determined that there is a material weakness in its internal control over financial reporting due to the lack of effectiveness of internal controls in the Regional Homes retail operations acquired in October 2023. As a result, the Company's disclosure controls and procedures and internal control over financial reporting are not considered effective as of March 29, 2025. While the Company is actively engaged in the planning for, and implementation of, remediation efforts to address the material weakness, there can be no assurance that the efforts will fully remediate the material weakness in a timely manner. If we are unable to remediate the material weakness, or are otherwise unable to maintain effective internal control over financial reporting or disclosure controls and procedures, it could adversely affect our ability to accurately report our financial results in a timely manner, resulting in material misstatements in our financial statements or causing us to fail to meet our reporting obligations, which could subject us to litigation or investigations requiring management resources and payment of legal and other expenses, negatively affect investor confidence in our financial statements and cause reputational harm.

**Our failure to maintain effective internal control over financial reporting could harm our business and financial results.**

Our management is responsible for maintaining effective internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting for external purposes in accordance with accounting principles generally accepted in the United States. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that we would prevent or detect a misstatement of our financial statements or fraud.

**We anticipate paying no cash dividends for the foreseeable future.**

We currently intend to retain our future earnings, if any, for the foreseeable future, to fund the development and growth of our business. As a result, capital appreciation in the price of our common stock, if any, will be investors' only source of gain on an investment in our common stock. Any future determination to pay dividends to shareholders will be at the sole discretion of our Board of Directors and will depend upon many factors, including general economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions, the implications of the payment of dividends by us to our shareholders or by our subsidiaries to us, and any other factors that the Board of Directors may deem relevant.

2025 Annual Report | CHAMPION HOMES 19

PART I

# ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

# ITEM 1C. CYBERSECURITY

Our Board of Directors views the identification and effective management of cybersecurity threats as a critical component of overall risk management and oversight responsibility and has delegated responsibility for oversight of this risk to the Audit Committee of the Board of Directors (the "Audit Committee"). The Audit Committee oversees the management of risks arising from cybersecurity threats and regularly reports to the Board of Directors regarding cybersecurity. The Audit Committee oversees our enterprise risk assessment process, and cybersecurity represents an important component of our overall approach to risk assessment. Our cybersecurity policies, standards, processes and practices are based on recognized frameworks established by the National Institute of Standards and Technology and other applicable industry standards. In general, we seek to address cybersecurity risks through a comprehensive, cross-functional approach that is focused on identifying, assessing, preventing and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur.

# Risk Management and Strategy

Our cybersecurity program is focused on the following key areas:

Governance: As discussed in more detail under the heading "Governance" below, the Board of Directors' oversight of cybersecurity risk management is supported by the Audit Committee, our Chief Technology Officer, and other members of management.

Technical Safeguards: We deploy technical safeguards that are designed to protect our information systems from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality and access controls, which are evaluated and improved through vulnerability assessments and cybersecurity threat intelligence.

Incident Response Planning: We have established and maintain an incident response plan that outlines our response in the event of a cybersecurity incident.

Third-Party Assessments: We periodically assess and test our policies, standards, processes and practices that are designed to address cybersecurity threats and incidents. These efforts include a wide range of activities, including audits, assessments, threat modeling, vulnerability testing and other exercises focused on evaluating the effectiveness of our cybersecurity measures and planning. In addition, we regularly engage third parties to perform assessments on our cybersecurity measures. The results of such assessments, audits and reviews are reported to the Audit Committee and, if warranted, the Board of Directors, and we adjust our cybersecurity processes and practices as necessary based on the information provided by these assessments, audits and reviews.

Third-Party Risk Management: We review and evaluate material cybersecurity risks related to the use of third parties, including vendors, service providers and other external users of our systems.

Education and Awareness: We provide regular training regarding cybersecurity threats as a means to equip our employees with effective tools to address cybersecurity threats, and to communicate our evolving information security policies, standards, processes and practices.

# Governance

The Audit Committee receives regular presentations and reports from our Chief Technology Officer on cybersecurity risks, which address a wide range of topics including recent developments, evolving standards, vulnerability assessments, third-party and independent reviews, the threat environment, technological trends and information security considerations. The Audit Committee then provides regular reports to the Board of Directors. The Audit Committee also receives timely updates on material and potentially material cybersecurity matters from management as part of the risk assessment process. The Audit Committee and the Board of Directors also receive timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been resolved.

The Chief Technology Officer, working together with a team of cybersecurity professionals and third-party consultants, monitors the prevention, detection, mitigation and remediation of cybersecurity threats and incidents, and reports such threats and incidents to the senior leadership team when appropriate.

Cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected and are not reasonably likely to materially affect our business strategy, results of operations or financial condition. See "Risks Related to Information Technology" in Item 1A. Risk Factors.

CHAMPION HOMES

2025 Annual Report

PART I

# ITEM 2. PROPERTIES

The following table sets forth certain information with respect to our operating facilities as of March 29, 2025:

| Location | Owned/Leased |
| --- | --- |
| United States |  |
| Double Springs, Alabama | Owned |
| Hamilton, Alabama | Owned |
| Lynn, Alabama | Owned |
| Chandler, Arizona | Leased* |
| Corona, California | Leased |
| Lindsay, California | Owned |
| San Jacinto, California | Owned |
| Woodland, California | Owned |
| Bartow, Florida | Leased* |
| Lake City, Florida (two facilities) | Leased* |
| Ocala, Florida | Owned |
| Millen, Georgia | Leased** |
| Waycross, Georgia | Owned |
| Weiser, Idaho | Owned |
| Decatur, Indiana | Owned |
| Topeka, Indiana (three facilities) | Owned |
| Arkansas City, Kansas | Owned |
| Benton, Kentucky | Leased |
| Leesville, Louisiana | Leased |
| Worthington, Minnesota | Owned |
| York, Nebraska | Owned |
| Sangerfield, New York | Owned |
| Laurinburg, North Carolina | Owned |
| Lillington, North Carolina | Owned |
| Pembroke, North Carolina | Owned |
| Sugar Creek, Ohio | Owned |
| McMinnville, Oregon | Owned |
| Claysburg, Pennsylvania | Owned |
| Ephrata, Pennsylvania | Owned |
| Leola, Pennsylvania (two facilities) | Owned |
| Liverpool, Pennsylvania | Owned |
| Strattanville, Pennsylvania | Owned |
| Dresden, Tennessee | Leased |
| Athens, Texas | Owned |
| Burleson, Texas (two facilities) | Owned |
| Mansfield, Texas | Owned |
| Navasota, Texas | Owned |
| Lancaster, Wisconsin | Owned |
| Canada |  |
| Lethbridge, Alberta | Leased* |
| Medicine Hat, Alberta | Owned |
| Kelowna, British Columbia | Leased |
| Penticton, British Columbia | Owned |
| Estevan, Saskatchewan | Owned |

* - land only leased; facility owned
** - the land and operating facility in Millen, Georgia are maintained under a lease, however, we retain an option to purchase throughout the lease period

2025 Annual Report | CHAMPION HOMES

PART I

Our corporate headquarters is in Troy, Michigan and we have an administrative office in Elkhart, Indiana. We also have 72 retail sales centers located across the U.S. and eight terminals for our logistics operations across four states in the U.S. The corporate offices, some of our retail sales centers, and logistics terminals are leased properties. The contractual lease for our Troy, Michigan office expires in December 2027 and the contractual lease for our Elkhart, Indiana office expires in September 2028. Two of the manufacturing facilities are encumbered by industrial revenue bonds and two are encumbered by notes payable. In the opinion of management, our properties have been well maintained, are in sound operating condition, and contain all equipment and facilities necessary to operate at present levels.

We also own or lease six idle manufacturing facilities which could be utilized for additional production capacity. Those facilities would likely require capital investments in order to secure and equip them for operations.

## ITEM 3. LEGAL PROCEEDINGS

We are party to certain legal proceedings that arise in the ordinary course and are incidental to our business. Certain of the claims pending against us in these proceedings allege, among other things, breach of express and implied warranties, and in various governmental agency proceedings arising from occupational safety and health, wage and hour, and similar employment and workplace regulations. Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened litigation or claims will have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations. However, future events or circumstances, currently unknown to us, will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on our consolidated financial position, liquidity, or results of operations in any future reporting periods.

## ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

CHAMPION HOMES
2025 Annual Report

PART II

# ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

## Market Information

The Company's common stock is traded on the New York Stock Exchange ("NYSE") under the symbol SKY.

## Holders

As of May 20, 2025, the Company had approximately 235 holders of record of our common stock. The actual number of shareholders is greater than this number of record holders and includes shareholders who are beneficial owners but whose shares are held in street name by brokers and other nominees. This number of holders of record also does not include shareholders whose shares may be held in trust by other entities.

## Dividend Policy

The Company does not currently pay dividends on our common stock and intends to retain available funds and any future earnings for general corporate purposes. However, in the future, subject to the factors described below and our future liquidity and capitalization, the Company may change this policy and choose to pay dividends. Any future determination to pay dividends to shareholders will be at the sole discretion of the Company's Board of Directors and will depend upon many factors, including general economic conditions, our financial position and results of operations, available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions, the implications of the payment of dividends by the Company to its shareholders or by the Company's subsidiaries and any other factors that the Board of Directors may deem relevant.

## Unregistered Sales of Equity Securities

There were no unregistered sales of equity securities during the period covered by this Annual Report.

## Issuer Purchases of Equity Securities

On May 16, 2024, the Company's Board of Directors approved a share repurchase program for up to $100.0 million of the Company's common stock, which was subsequently amended to allow for purchases of up to $160.0 million. On May 15, 2025, the Company's Board of Directors approved an increase to this share repurchase program of $20.0 million to refresh the available amount to repurchase the Company's common stock back to $100.0 million. Under this share repurchase program, the number of shares ultimately purchased, and the timing of purchases are at the discretion of management and subject to compliance with applicable laws and regulations. The share repurchase program does not expire. The Company intends to fund the program from existing cash. Share repurchases are made in the open market or in privately negotiated transactions in compliance with applicable state and federal securities laws and other legal requirements. The level of repurchase activity is subject to market conditions and other investment opportunities. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time. Share repurchase activity during the three months ended March 29, 2025 was as follows:

| Fiscal Periods | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of the Publicly Announced Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs (in thousands) |
| --- | --- | --- | --- | --- |
| 2/2/2025 - 3/1/2025 | 75,000 | $102.33 | 75,000 |  |
| 3/2/2025 - 3/29/2025 | 126,667 | $97.27 | 126,667 |  |
|  | 201,667 |  | 201,667 | $80,000 |

2025 Annual Report | CHAMPION HOMES 23

PART II

# Securities Authorized for Issuance Under Equity Compensation Plans

Item 12, "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters," of this Annual Report contains certain information relating to the Company's equity compensation plans.

# Stock Performance

The following graph shows the cumulative total stockholder return on our common stock over the period spanning March 28, 2020 to March 29, 2025, as compared with that of the Russell 3000 Index and a selected peer group of comparable, publicly traded companies in the housing segment, based on an initial investment of $100 on March 28, 2020.

Total stockholder return is measured by dividing share price change plus dividends, if any, for each period by the share price at the beginning of the respective period and assumes reinvestment of dividends. This stock performance graph shall not be deemed "filed" with the SEC or subject to Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any of our filings under the Securities Act of 1933, as amended.

![img-0.jpeg](img-0.jpeg)
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
Among Champion Homes, Inc., the Russell 3000 Index, and a Peer Group

|  | 3/28/2020 | 4/3/2021 | 4/2/2022 | 4/1/2023 | 3/30/2024 | 3/29/2025 |
| --- | --- | --- | --- | --- | --- | --- |
| Champion Homes, Inc. | $100.00 | $288.65 | $350.00 | $479.78 | $542.16 | $604.34 |
| Peer Group* | 100.00 | 258.01 | 213.87 | 272.30 | 406.91 | 332.48 |

* The peer group consists of Beazer Homes USA, Cavco Industries, Century Communities, LGI Homes, M/I Homes, Meritage Homes, Quanex Building Products Corp, and Tri Pointe Group.

# ITEM 6. RESERVED

CHAMPION HOMES

2025 Annual Report

PART II

# ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following should be read in conjunction with Champion Homes's consolidated financial statements and the related notes that appear elsewhere in this Annual Report.

Certain statements set forth below under this caption constitute forward-looking statements. See Part I, "Cautionary Statement About Forward-Looking Statements," of this Annual Report on Form 10-K for additional factors relating to such statements, and see Item 1A, "Risk Factors," of this Annual Report for a discussion of certain risks applicable to our business, financial condition, results of operations and cash flows. See also Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Form 10-K for the year ended March 30, 2024, which provides additional information on comparisons of fiscal years 2024 and 2023.

## Overview

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 manufactured construction, company-owned retail locations, construction services, and transportation logistics. The Company is the largest independent publicly traded factory-built solutions provider in North America based on revenue, and 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 43 manufacturing facilities throughout the U.S. and 5 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 72 sales centers that sell manufactured homes to consumers across the U.S. while the construction services business installs and sets up factory-built homes. The Company's transportation business engages independent owners/drivers to transport manufactured homes, recreational vehicles, and other products throughout the U.S. and Canada.

## Acquisitions and Expansions

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.

In October 2023, the Company acquired Regional Homes ("Regional"), which, at the time of the acquisition, operated three manufacturing facilities in Alabama and 43 retail sales centers across the Southeast U.S. Regional's strong presence in large HUD markets in the Southeast U.S. expanded our captive retail and manufacturing distribution in the region. In July 2022, the Company acquired 12 Factory Expo retail sales centers from Alta Cima Corporation, which expanded the internal retail network across a broader portion of the U.S. In May 2022, the Company acquired Manis Custom Builders, Inc. ("Manis") in order to expand its manufacturing footprint and further streamline its product offering in the Carolinas.

In addition to those acquisitions, the Company is also focused on enhancing its U.S. manufacturing production capacity through various plant start-ups in strategic locations. As a result, the Company began production in previously idled or acquired facilities in Decatur, Indiana and Bartow, Florida in fiscal 2024 and a facility in Pembroke, North Carolina in the fourth quarter of fiscal 2023. The Company owns six idle manufacturing facilities that could be used for further manufacturing capacity expansion in future periods.

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. The captive finance company, Champion Financing, provides factory-built home floor plan and consumer loans to retailers and homebuyers. The Company believes this offering will provide customers needed financing solutions and improve the Company's market share.

2025 Annual Report | CHAMPION HOMES 25

PART II

The Company's acquisitions and investments are part of a strategy to grow and diversify revenue with a focus on increasing the Company's homebuilding presence in the U.S. as well as improving the results of operations through streamlining production of similar product categories. These acquisitions and investments are included in the Company's consolidated results for periods subsequent to their respective acquisition dates.

## Industry and Company Outlook

The need for newly built affordable, single-family housing has continued to drive demand for new homes in the U.S. and Canadian markets. In recent years, manufactured home construction experienced revenue growth due to a number of favorable demographic trends and demand drivers in the United States, including underlying growth trends in key homebuyer groups, such as the population over 55 years of age, the population of first-time home buyers, and the population of households earning less than $60,000 per year. We have also seen a number of market trends pointing to increased sales of ADUs and rent-to-own single-family options.

Because of the need for affordable housing, the Company saw an increase in customer orders during fiscal 2025. As a result of the increased orders, the Company's backlog at the end of fiscal 2025 was $343.4 million compared to $315.8 million at the end of fiscal 2024 and $308.1 million at the end of fiscal 2023.

For fiscal 2025, approximately 88% of the Company's U.S. manufacturing sales were generated from the manufacture of homes that comply with the Federal HUD code construction standard in the U.S. According to data reported by MHI, HUD-code industry home shipments were 105,206, 92,288, and 104,374 units during fiscal 2025, 2024, and 2023, respectively. Based on industry data, the Company's U.S. wholesale market share of HUD code homes sold was 22.0%, 19.9%, and 20.4% in fiscal 2025, 2024, and 2023, respectively. Annual industry shipments have generally increased each year 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 9.5% of all U.S. single family home starts.

CHAMPION HOMES | 2025 Annual Report

PART II

# RESULTS OF OPERATIONS FOR FISCAL 2025 VS. 2024

| (Dollars in thousands) | Year Ended |  |
| --- | --- | --- |
|  | March 29, 2025 | March 30, 2024 |
| Results of Operations Data: |  |  |
| Net sales | $2,483,448 | $2,024,823 |
| Cost of sales | 1,819,425 | 1,539,029 |
| Gross profit | 664,023 | 485,794 |
| Selling, general, and administrative expenses | 426,991 | 310,589 |
| Operating income | 237,032 | 175,205 |
| Interest (income), net | (16,974) | (28,254) |
| Other (income) expense, net | (3,362) | 2,604 |
| Income from operations before income taxes | 257,368 | 200,855 |
| Income tax expense | 53,724 | 47,136 |
| Net income before equity in net loss of affiliate | 203,644 | 153,719 |
| Equity in net loss of affiliate | 2,004 | 7,023 |
| Net income | $201,640 | $146,696 |
| Net income attributable to non-controlling interest | 3,227 | - |
| Net income attributable to Champion Homes, Inc. | $198,413 | $146,696 |
| Reconciliation of Adjusted EBITDA: |  |  |
| Net income attributable to Champion Homes, Inc. | $198,413 | $146,696 |
| Income tax expense | 53,724 | 47,136 |
| Interest (income), net | (16,974) | (28,254) |
| Depreciation and amortization | 41,910 | 34,910 |
| Equity in net loss of ECN | 363 | 7,023 |
| Change in fair value of contingent consideration | 8,620 | - |
| Product liability - water intrusion | - | 34,500 |
| Transaction costs | - | 3,253 |
| Other | (1,000) | - |
| Adjusted EBITDA | $285,056 | $245,264 |
| As a percent of net sales: |  |  |
| Gross profit | 26.7% | 24.0% |
| Selling, general and administrative expenses | 17.2% | 15.3% |
| Operating income | 9.5% | 8.7% |
| Net income attributable to Champion Homes, Inc. | 8.0% | 7.2% |
| Adjusted EBITDA | 11.5% | 12.1% |

# FISCAL PERIODS

The Company's fiscal year is a 52- or 53-week period that ends on the Saturday nearest March 31. Fiscal 2025 and 2024 were each 52-week periods.

2025 Annual Report | CHAMPION HOMES 27

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