78 added · 84 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
(incorporated by reference to Exhibit 10.1 of the registrant’s Quarterly Report on Form 10-Q filed on February 5, 2025). 10.21 Separation Agreement, dated January 3, 2025, between Champion Home Builders, Inc. and Mark J.Yost (incorporated by reference to Exhibit 10.2 of the registrant’s Quarterly Report on Form 10-Q filed on February 5, 2025). 10.22 Form of Restricted Stock Unit Award Agreement for Executives with written employment agreements granted in fiscal 2025 (incorporated by reference to Exhibit 10.1 of the registrant’s Quarterly Report on Form 10-Q filed on August 7, 2024). 10.23 Form of Restricted Stock Unit Award Agreement for Non-Employee Directors granted in fiscal 2025 (incorporated by reference to Exhibit 10.2 of the registrant’s Quarterly Report on Form 10-Q filed on August 7, 2024). 10.24 Form of Restricted Stock Unit Award Agreement for Employees granted in fiscal 2025 (incorporated by reference to Exhibit 10.24 of the registrant’s Annual Report on Form 10-K filed on May 27, 2025). 10.25 Form of Performance Stock Unit Agreement for Executives with written employment agreements granted in fiscal 2025 (incorporated by reference to Exhibit 10.25 of the registrant’s Annual Report on Form 10-K filed on May 27, 2025) . 10.26 Form of Performance Stock Unit Agreement for Employees granted in fiscal 2025 (incorporated by reference to Exhibit 10.26 of the registrant’s Annual Report on Form 10-K filed on May 27, 2025). 10.27 Form of Restricted Stock Unit Award Agreement for Employees granted in fiscal 2026 (incorporated by reference to Exhibit 10.1 of the registrant’s Current Report Form 8-K filed on August 15, 2025). 10.28 Transition Agreement, dated as of December 1, 2025, between Laurie Hough and Champion Home Builders, Inc.
The increase in cash used in investing activities was related to the acquisition of Iseman Homes in the first quarter of fiscal 2026, offset in part by a reduction in expenditures for property, plant and equipment.
In the first quarter of fiscal 2026, we completed the acquisition of Iseman Homes and are currently integrating Iseman Homes into our operations, compliance programs and internal control processes.
The increase in the number of homes sold was primarily due to the inclusion of Iseman Homes since the acquisition in May 2025 and higher wholesale unit sales sold to independent retail channels.
For example, we tested controls over management’s review of the significant actuarial assumptions and the data inputs used by management when estimating the cost for planned remediation efforts.
SEC guidance allows companies to exclude acquisitions from their assessment of the internal control over financial reporting during the first year following an acquisition while integrating the acquired company.
Canadian Factory-built Housing: The Canadian Factory-built Housing segment net sales increased by $16.8 million, or 17.9% in fiscal 2026 compared to the prior year, primarily due to an increase of 15.2% in homes sold and an increase in average selling price.
During fiscal 2026, net sales for the segment increased by $5.5 million, or 17.4%, compared to fiscal 2025, primarily due to increased operating activities in Champion Financing, partially offset by a decrease in recreational vehicle shipments.
Factory-built Housing $ 641,636 $ 617,314 $ 24,322 3.9 % Canadian Factory-built Housing 32,079 23,823 8,256 34.7 % Corporate/Other 30,604 22,886 7,718 33.7 % Total gross profit $ 704,319 $ 664,023 $ 40,296 6.1 % Gross profit as a percent of net sales 26.4 % 26.7 % Gross profit as a percent of sales during fiscal 2026 was 26.4% compared to 26.7% during fiscal 2025.
The decrease in gross profit as a percent of segment net sales was driven by higher material and labor costs and the $8.4 million charge in the fourth quarter of fiscal 2026 to adjust our estimated costs to remediate water intrusion in certain homes built in one of our manufacturing facilities, partially offset by $3.5 million of reimbursements received from the material distributor for the Company's remediation costs incurred.
Factory-built Housing $ 344,278 $ 327,015 $ 17,263 5.3 % Canadian Factory-built Housing 16,662 10,913 5,749 52.7 % Corporate/Other 91,614 89,063 2,551 2.9 % Total selling, general, and administrative expenses $ 452,554 $ 426,991 $ 25,563 6.0 % Selling, general, and administrative expenses as a percent of net sales 17.0 % 17.2 % SG&A expenses were $452.6 million during fiscal 2026, an increase of $25.6 million compared to the prior year.
The increase in SG&A expenses was primarily due to higher salaries 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 $4.1 million less charges related to the change in fair value of the contingent consideration from acquisitions.
No longer disclosed
The increases were primarily due to the inclusion of Regional Homes for the entirety of fiscal 2025 compared to 5.5 months in the prior-year period, as well as a charge of $8.6 million in fiscal 2025 related to the change in fair value of contingent consideration from the acquisition.
Other expense of $2.6 million for fiscal 2024 represents transaction costs incurred for the acquisition of Regional Homes of $3.3 million, partially offset by dividend income of $0.6 million from the investment in ECN Preferred Shares. 29 INCOME TAX EXPENSE The following table summarizes income tax expense for fiscal 2025 and 2024: Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 $ Change % Change Income tax expense $ 53,724 $ 47,136 $ 6,588 14.0 % Effective tax rate 20.9 % 23.5 % Income tax expense during fiscal 2025 was $53.7 million, representing an effective tax rate of 20.9%, compared to income tax expense of $47.1 million, representing an effective tax rate of 23.5%, in fiscal 2024.
The decrease in cash used for investing activities was related to the Company's acquisition of Regional Homes, an investment in floor plan loans, and the purchase of ECN common and preferred stock in fiscal 2024 which did not reoccur in fiscal 2025.
The increase was primarily due to $593.1 million of net sales in fiscal 2025 from the operations acquired in the fiscal 2024 acquisition of Regional Homes, compared to $227.8 million of sales from those operations in the prior-year period.
For example, we tested controls over management’s review of the significant actuarial assumptions used in the determination of the range, management’s review of the appropriateness of the calculation, and controls pertaining to the completeness and accuracy of the number of homes manufactured with exposure to the defect underlying the estimated costs for planned remediation efforts.
These acquisitions and investments are included in the Company's consolidated results for periods subsequent to their respective acquisition dates. 24 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.
The change was primarily due to lower interest income from lower average invested cash balances and higher interest expense from higher average floor plan payables and long-term debt balances assumed in the acquisition of Regional Homes.
Based on the Company's investigation into the cause of the water intrusion, including third-party testing of the material at issue, the Company believes it is possible that it will recover some or all of the estimated remediation costs.
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.
The decrease was primarily attributable to a decrease in recreational vehicle shipments by our transportation operations, offset in part by net sales from the initiation of the Champion Financing operations in fiscal 2025. 27 GROSS PROFIT The following table summarizes gross profit for fiscal 2025 and 2024: Year Ended (Dollars in thousands) March 29, 2025 March 30, 2024 $ Change % Change Gross profit: U.S.
Factory-built Housing $ 617,314 $ 440,162 $ 177,152 40.2 % Canadian Factory-built Housing 23,823 30,479 (6,656 ) (21.8 %) Corporate/Other 22,886 15,153 7,733 51.0 % Total gross profit $ 664,023 $ 485,794 $ 178,229 36.7 % Gross profit as a percent of net sales 26.7 % 24.0 % Gross profit as a percent of sales during fiscal 2025 was 26.7% compared to 24.0% during fiscal 2024.
The increase in gross profit and gross profit percent in fiscal 2025 is also positively impacted by the $34.5 million charge in fiscal 2024 for estimated costs to remediate water intrusion in certain homes built in one of our manufacturing facilities from fiscal 2016 through fiscal 2021.