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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2025

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-04714

Champion Homes, Inc.

(Exact name of registrant as specified in its charter)

Indiana |  | 35-1038277
(State of Incorporation) |  | (I.R.S. Employer Identification No.)
755 West Big Beaver Road, Suite 1000 |  |
Troy, Michigan |  | 48084
(Address of Principal Executive Offices) |  | (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

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 filers,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:):

Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of common stock outstanding as of July 31, 2025: 56,518,125

CHAMPION HOMES, INC.

FORM 10-Q

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION |
Item 1. Financial Statements |
Condensed Consolidated Balance Sheets as of June 28, 2025 (unaudited) and March 29, 2025 | 1
Condensed Consolidated Income Statements (unaudited) for the three months ended June 28, 2025 and June 29, 2024 | 2
Condensed Consolidated Statements of Comprehensive Income (unaudited) for the three months ended June 28, 2025 and June 29, 2024 | 3
Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended June 28, 2025 and June 29, 2024 | 4
Condensed Consolidated Statements of Stockholders’ Equity (unaudited) for the three months ended June 28, 2025 and June 29, 2024 | 5
Notes to Condensed Consolidated Financial Statements | 6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 24
Item 4. Controls and Procedures | 24
PART II – OTHER INFORMATION |
Item 1. Legal Proceedings | 26
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 26
Item 5. Other Information | 26
Item 6. Exhibits | 27
SIGNATURES | 28

i

PART I - FINANCI AL INFORMATION

Item 1. Financi al Statements

Champion Homes, Inc.

Condensed Consolida ted Balance Sheets

(Dollars and shares in thousands, except per share amounts)

|  | June 28, 2025 |  |  | March 29, 2025 |
|  | (unaudited) |  |  |  |
ASSETS |  |  |  |  |  |
Current assets: |  |  |  |  |  |
Cash and cash equivalents |  | $ | 605,327 |  |  | $ | 610,338 |
Trade accounts receivable, net |  |  | 99,581 |  |  |  | 84,103 |
Inventories, net |  |  | 372,739 |  |  |  | 360,629 |
Other current assets |  |  | 37,830 |  |  |  | 31,428 |
Total current assets |  |  | 1,115,477 |  |  |  | 1,086,498 |
Long-term assets: |  |  |  |  |  |
Property, plant, and equipment, net |  |  | 317,037 |  |  |  | 307,140 |
Goodwill |  |  | 363,462 |  |  |  | 357,973 |
Amortizable intangible assets, net |  |  | 64,707 |  |  |  | 64,712 |
Deferred tax assets |  |  | 36,219 |  |  |  | 37,998 |
Other noncurrent assets |  |  | 252,349 |  |  |  | 256,087 |
Total assets |  | $ | 2,149,251 |  |  | $ | 2,110,408 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |
Floor plan payable |  | $ | 103,684 |  |  | $ | 106,091 |
Accounts payable |  |  | 68,225 |  |  |  | 65,136 |
Other current liabilities |  |  | 294,079 |  |  |  | 280,081 |
Total current liabilities |  |  | 465,988 |  |  |  | 451,308 |
Long-term liabilities: |  |  |  |  |  |
Long-term debt |  |  | 24,105 |  |  |  | 24,773 |
Deferred tax liabilities |  |  | 7,883 |  |  |  | 7,350 |
Other liabilities |  |  | 80,798 |  |  |  | 82,539 |
Total long-term liabilities |  |  | 112,786 |  |  |  | 114,662 |
Stockholders' Equity: |  |  |  |  |  |
Common stock, $0.0277 par value, 115,000 shares authorized, 56,511 and 57,109 shares issued as of June 28, 2025 and March 29, 2025, respectively |  |  | 1,567 |  |  |  | 1,584 |
Additional paid-in capital |  |  | 595,464 |  |  |  | 586,941 |
Retained earnings |  |  | 988,025 |  |  |  | 975,981 |
Accumulated other comprehensive loss |  |  | (14,579 | ) |  |  | (20,068 | )
Total stockholders’ equity |  |  | 1,570,477 |  |  |  | 1,544,438 |
Total liabilities and stockholders’ equity |  | $ | 2,149,251 |  |  | $ | 2,110,408 |

See accompanying Notes to Condensed Consolidated Financial Statements.

1

Champion Homes, Inc.

Condensed Consol idated Income Statements

(Unaudited, dollars in thousands, except per share amounts)

|  | Three months ended |
|  | June 28, 2025 |  |  | June 29, 2024 |
Net sales |  | $ | 701,318 |  |  | $ | 627,779 |
Cost of sales |  |  | 511,488 |  |  |  | 463,564 |
Gross profit |  |  | 189,830 |  |  |  | 164,215 |
Selling, general, and administrative expenses |  |  | 111,309 |  |  |  | 108,827 |
Operating income |  |  | 78,521 |  |  |  | 55,388 |
Interest (income), net |  |  | (4,536 | ) |  |  | (4,249 | )
Other (income) |  |  | (1,220 | ) |  |  | (1,219 | )
Income before income taxes |  |  | 84,277 |  |  |  | 60,856 |
Income tax expense |  |  | 17,699 |  |  |  | 13,719 |
Net income before equity in net loss of affiliates |  |  | 66,578 |  |  |  | 47,137 |
Equity in net loss of affiliates |  |  | 585 |  |  |  | 1,343 |
Net income |  |  | 65,993 |  |  |  | 45,794 |
Net income attributable to non-controlling interest |  |  | 1,306 |  |  |  | — |
Net income attributable to Champion Homes, Inc. |  | $ | 64,687 |  |  | $ | 45,794 |
Net income attributable to Champion Homes, Inc. per share: |  |  |  |  |  |
Basic |  | $ | 1.13 |  |  | $ | 0.79 |
Diluted |  | $ | 1.13 |  |  | $ | 0.79 |

See accompanying Notes to Condensed Consolidated Financial Statements.

2

Champion Homes, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited, dollars in thousands)

|  | Three months ended |
|  | June 28, 2025 |  |  | June 29, 2024 |
Net income |  | $ | 65,993 |  |  | $ | 45,794 |
Other comprehensive income (loss), net of tax: |  |  |  |  |  |
Foreign currency translation adjustments |  |  | 5,489 |  |  |  | (1,130 | )
Total other comprehensive income (loss) |  |  | 5,489 |  |  |  | (1,130 | )
Total comprehensive income before non-controlling interests |  |  | 71,482 |  |  |  | 44,664 |
Comprehensive income attributable to non-controlling interests |  |  | 1,306 |  |  |  | — |
Comprehensive income attributable to Champion Homes, Inc. |  | $ | 70,176 |  |  | $ | 44,664 |

See accompanying Notes to Condensed Consolidated Financial Statements.

3

Champion Homes, Inc.

Condensed Consolidated S tatements of Cash Flows

(Unaudited, dollars in thousands)

|  | Three months ended |
|  | June 28, 2025 |  |  | June 29, 2024 |
Cash flows from operating activities |  |  |  |  |  |
Net income |  | $ | 65,993 |  |  | $ | 45,794 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Depreciation and amortization |  |  | 11,902 |  |  |  | 10,612 |
Amortization of deferred financing fees |  |  | 93 |  |  |  | 93 |
Equity-based compensation |  |  | 4,978 |  |  |  | 6,090 |
Deferred taxes |  |  | 507 |  |  |  | (653 | )
Loss on disposal of property, plant, and equipment |  |  | 29 |  |  |  | 43 |
Foreign currency transaction (gain) loss |  |  | (796 | ) |  |  | 212 |
Equity in net loss of affiliates |  |  | 585 |  |  |  | 1,343 |
Dividends from equity method investment |  |  | 236 |  |  |  | 522 |
Change in fair value of contingent consideration |  |  | — |  |  |  | 7,912 |
Change in assets and liabilities: |  |  |  |  |  |
Accounts receivable |  |  | (14,910 | ) |  |  | (8,088 | )
Floor plan receivables |  |  | (144 | ) |  |  | (10,603 | )
Inventories |  |  | 5,450 |  |  |  | (1,375 | )
Other assets |  |  | (4,333 | ) |  |  | 5,541 |
Accounts payable |  |  | 2,697 |  |  |  | 10,950 |
Accrued expenses and other liabilities |  |  | 3,015 |  |  |  | 16,223 |
Net cash provided by operating activities |  |  | 75,302 |  |  |  | 84,616 |
Cash flows from investing activities |  |  |  |  |  |
Additions to property, plant, and equipment |  |  | (8,901 | ) |  |  | (10,712 | )
Cash paid for equity method investment |  |  | (447 | ) |  |  | — |
Proceeds from floor plan loans |  |  | — |  |  |  | 1,606 |
Acquisition, net of cash acquired |  |  | (24,555 | ) |  |  | — |
Proceeds from disposal of property, plant, and equipment |  |  | 39 |  |  |  | 24 |
Net cash (used in) investing activities |  |  | (33,864 | ) |  |  | (9,082 | )
Cash flows from financing activities |  |  |  |  |  |
Changes in floor plan financing, net |  |  | (2,407 | ) |  |  | 1,573 |
Payments on long term debt |  |  | (684 | ) |  |  | (1 | )
Payments for repurchase of common stock |  |  | (50,000 | ) |  |  | (20,000 | )
Stock option exercises |  |  | 3,550 |  |  |  | 75 |
Tax payments for equity-based compensation |  |  | (2,323 | ) |  |  | (2,251 | )
Net cash (used in) financing activities |  |  | (51,864 | ) |  |  | (20,604 | )
Effect of exchange rate changes on cash and cash equivalents |  |  | 5,415 |  |  |  | (1,060 | )
Net (decrease) increase in cash and cash equivalents |  |  | (5,011 | ) |  |  | 53,870 |
Cash and cash equivalents at beginning of period |  |  | 610,338 |  |  |  | 495,063 |
Cash and cash equivalents at end of period |  | $ | 605,327 |  |  | $ | 548,933 |

See accompanying Notes to Condensed Consolidated Financial Statements.

4

Champion Homes, Inc.

Condensed Consolidated Statem ents of Stockholders’ Equity

(Unaudited, dollars and shares in thousands)

|  | Three months ended June 28, 2025 |
|  | Common Stock |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Shares |  |  | Amount |  |  | Additional Paid in Capital |  |  | Retained Earnings |  |  | Accumulated Other Comprehensive Loss |  |  | Non-Controlling Interest |  |  | Total |
Balance at March 29, 2025 |  |  | 57,109 |  |  |  | 1,584 |  |  |  | 586,941 |  |  |  | 975,981 |  |  |  | (20,068 | ) |  |  | — |  |  |  | 1,544,438 |
Net income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 64,687 |  |  |  | — |  |  |  | 1,306 |  |  |  | 65,993 |
Equity-based compensation |  |  | — |  |  |  | — |  |  |  | 4,978 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,978 |
Net common stock issued under equity-based compensation plans |  |  | 173 |  |  |  | 5 |  |  |  | 3,545 |  |  |  | (2,323 | ) |  |  | — |  |  |  | — |  |  |  | 1,227 |
Common stock repurchases |  |  | (771 | ) |  |  | (22 | ) |  |  | — |  |  |  | (50,320 | ) |  |  | — |  |  |  | — |  |  |  | (50,342 | )
Distributions to non-controlling interest |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,306 | ) |  |  | (1,306 | )
Foreign currency translation adjustments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,489 |  |  |  | — |  |  |  | 5,489 |
Balance at June 28, 2025 |  |  | 56,511 |  |  | $ | 1,567 |  |  | $ | 595,464 |  |  | $ | 988,025 |  |  | $ | (14,579 | ) |  | $ | — |  |  | $ | 1,570,477 |

|  | Three months ended June 29, 2024 |
|  | Common Stock |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Shares |  |  | Amount |  |  | Additional Paid in Capital |  |  | Retained Earnings |  |  | Accumulated Other Comprehensive Loss |  |  | Total |
Balance at March 30, 2024 |  |  | 57,815 |  |  | $ | 1,605 |  |  | $ | 568,203 |  |  | $ | 866,485 |  |  | $ | (13,923 | ) |  | $ | 1,422,370 |
Net income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 45,794 |  |  |  | — |  |  |  | 45,794 |
Equity-based compensation |  |  | — |  |  |  | — |  |  |  | 6,090 |  |  |  | — |  |  |  | — |  |  |  | 6,090 |
Net common stock issued under equity-based compensation plans |  |  | 56 |  |  |  | 2 |  |  |  | 72 |  |  |  | (2,242 | ) |  |  | — |  |  |  | (2,168 | )
Common stock repurchases |  |  | (292 | ) |  |  | (9 | ) |  |  | — |  |  |  | (20,200 | ) |  |  | — |  |  |  | (20,209 | )
Foreign currency translation adjustments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,130 | ) |  |  | (1,130 | )
Balance at June 29, 2024 |  |  | 57,579 |  |  | $ | 1,598 |  |  | $ | 574,365 |  |  | $ | 889,837 |  |  | $ | (15,053 | ) |  | $ | 1,450,747 |

Components of accumulated other comprehensive loss consisted solely of foreign currency translation adjustments.

See accompanying Notes to Condensed Consolidated Financial Statements.

5

Champion Homes, Inc.

Notes to Condensed Consoli dated Financial Statements

1. Basis of Presentation and Business

Nature of Operations: The operations of Champion Homes, Inc., formerly known as Skyline Champion Corporation (the “Company”), consist of manufacturing, retail, construction services, and transportation activities. At June 28, 2025, the Company operated 42 manufacturing facilities throughout the United States (“U.S.”) and 4 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 houses to consumers across the U.S. The Company's construction services business provides installation and set-up services of factory-built homes. The Company’s transportation business engages independent owners/drivers to transport recreational vehicles throughout the U.S. and Canada and manufactured houses in certain regions of the U.S.

Basis of Presentation: The accompanying unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations.

The condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries after elimination of intercompany balances and transactions. In the opinion of management, these statements include all normal recurring adjustments necessary to fairly state the Company’s consolidated results of operations, cash flows, and financial position. The Company has evaluated subsequent events after the balance sheet date through the date of the filing of this report with the SEC. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on May 27, 2025 (the “Fiscal 2025 Annual Report”).

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes thereto. Actual results could differ from those estimates. The condensed consolidated income statements, condensed consolidated statements of comprehensive income, and condensed consolidated statements of cash flows for the interim periods are not necessarily indicative of the results of operations or cash flows for the full year.

The Company’s fiscal year is a 52- or 53-week period that ends on the Saturday nearest to March 31. The Company’s current fiscal year, “fiscal 2026,” will end on March 28, 2026 and will include 52 weeks. References to “fiscal 2025” refer to the Company’s fiscal year ended March 29, 2025. The three months ended June 28, 2025 and June 29, 2024 each included 13 weeks, respectively.

During the first quarter of fiscal 2026, the Company idled production at the Bartow, Florida manufacturing facility and incurred plant closure costs of $1.0 million. The Company also communicated a plan to cease operations at the Kelowna, British Columbia manufacturing facility, and accrued plant closure costs of $2.9 million. The Company intends to cease production at the Kelowna, British Columbia facility in the second quarter of fiscal 2026, which may result in additional expenses during that period.

The Company’s allowance for credit losses on financial assets measured at amortized cost reflects management’s estimate of credit losses over the remaining expected life of such assets, measured primarily using historical experience, as well as current economic conditions and forecasts that affect the collectability of the reported amount. Expected credit losses for newly recognized financial assets, as well as changes to expected credit losses during the period, are recognized in earnings. Accounts receivable are reflected net of reserves of $1.4 million and $1.3 million at June 28, 2025 and March 29, 2025, respectively.

Floor plan receivables consist primarily of amounts loaned by the Company through Triad Financial Services, Inc. ("Triad"), a related party, to certain independent retailers for purchases of homes manufactured by the Company, of which $38.2 million and $38.1 million was outstanding at June 28, 2025 and March 29, 2025, respectively. Floor plan receivables are carried net of payments received and recorded at amortized cost. The Company intends to hold the floor plan receivables until maturity or payoff. These loans are serviced by Triad, to which we pay a servicing fee. Upon execution of the financing arrangement, the floor plan loans are generally payable at the earlier of the sale of the underlying home or two years from the origination date. Floor plan receivables are included in other current assets and other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets.

The floor plan receivables are collateralized by the related homes, mitigating loss exposure. The Company and Triad evaluate the credit worthiness of each independent retailer prior to credit approval, including reviewing the independent retailer’s payment history, financial condition, and the overall economic environment. The Company evaluates the risk of credit loss in aggregate on existing loans with similar terms, based on historic experience and current economic conditions, as well as individual retailers with past due balances or other indications of heightened credit risk. The allowance for credit losses related to floor plan receivables was not material as of June 28, 2025 or March 29, 2025. Loans are considered past due if any required interest or curtailment payment remains unpaid 30 days after the due date. Receivables are placed on non-performing status if any interest or installment payments are past due over 90 days. Loans are placed on nonaccrual status when

6

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

interest payments are past due over 90 days. At June 28, 2025, there we re no floor plan receivables on nonaccrual status and the weighted-average age of the floor plan receivables was six months.

Interest income from floor plan receivables is recognized on an accrual basis and is included in interest income in the accompanying Condensed Consolidated Income Statements. Interest income from floor plan receivables for the three months ended June 28, 2025 and June 29, 2024 was $0.7 million a nd $0.5 million, respectively.

Recently issued accounting pronouncements: In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024 (fiscal 2026). We are assessing the effect of this update on our consolidated financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses", which expands disclosures about a public entity's specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The update will be effective for annual periods beginning after December 15, 2026 (fiscal 2028). We are assessing the effect of this update on our consolidated financial statement disclosures.

2. Business Combinations

Iseman Homes, Inc. Acquisition

On May 30, 2025, the Company acquired all of the outstanding equity interests in Iseman Homes, Inc. ("Iseman Homes") for total purchase consideration of $26.9 million, net of working capital adjustments. The purchase consideration consisted of net cash paid of $24.6 million, contingent consideration with an estimated fair value of $0.2 million, and remaining consideration payable of $2.2 million, payable twelve months after the closing date. The contingent consideration is related to an earnout provision in the event future performance metrics are achieved, with a maximum earnout amount of $1.5 million. The liabilities for the earnout and remaining consideration payable are recorded in other liabilities in the accompanying Condensed Consolidated Balance Sheets. The Company accounted for the acquisition as a business combination under the acquisition method of accounting provided by FASB ASC 805, Business Combinations ("ASC 805"). As such, the purchase price was allocated to the net assets acquired, inclusive of intangible assets, with the excess fair value recorded to goodwill. The purchase price allocation is based upon preliminary valuation information available to determine the fair value of certain assets and liabilities, including goodwill, and is subject to change as additional information is obtained about the facts and circumstances that existed at the valuation date. The Company expects to finalize the fair values of the assets acquired and liabilities assumed during the one-year measurement period.

The following table presents the consideration transferred and the preliminary purchase price allocation:

Description |  | Amount |
Fair value of consideration transferred |  |  |
Cash consideration, net of cash acquired |  | $ | 24,555 |
Consideration payable |  |  | 2,179 |
Estimated earn out consideration |  |  | 210 |
Total consideration |  | $ | 26,944 |
Preliminary purchase price allocations: |  |  |
Trade accounts receivable |  |  | 470 |
Inventories |  |  | 16,926 |
Other current assets |  |  | 315 |
Property, plant, and equipment, net |  |  | 9,560 |
Amortizable intangible assets, net |  |  | 2,900 |
Accounts payable |  |  | (622 | )
Other current liabilities |  |  | (8,094 | )
Identifiable net assets acquired |  |  | 21,455 |
Goodwill |  |  | 5,489 |
Total purchase price |  | $ | 26,944 |

Trade accounts receivable, other assets, accounts payable and other liabilities are generally stated at historical carrying values as they approximate fair value. Retail inventories are reflected at manufacturer wholesale prices. Intangible assets in clude $2.9 million for a trade name based on an independent appraisal. The fair value of the trade name was determined using the relief-from-royalty method and was estimated to have a weighted average useful life of ten years from the acquisition date. Fair value estimates of property, plant, and equipment were based on

7

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

independent appraisals, giving consideration to the highest and best use of the assets. Key assumptions used in the appraisals were drawn from a combination of market, cost, and sales comparison approaches, as appropriate. Level 3 fair value estimates of $9.6 million related to property, plant, and equipment and $2.9 million related to intangible assets were recorded in the accompanying Condensed Consolidated Balance Sheet as of the acquisition date. The goodwill is not expected to be deductible for income tax purposes. For further information on acquired assets measured at fair value, see Note 5, Goodwill, Intan gible Assets and Cloud Computing Arrangements.

Management has determined that the pro forma impact of the acquisition of Iseman Homes on revenue and net income is not material to the consolidated financial statements and, accordingly, such information is not presented.

3. Inventories, net

The components of inventory, net of reserves for obsolete inventory, were as follows:

(Dollars in thousands) |  | June 28, 2025 |  |  | March 29, 2025 |
Raw materials |  | $ | 111,247 |  |  | $ | 110,755 |
Work in process |  |  | 33,788 |  |  |  | 31,079 |
Finished goods and other |  |  | 227,704 |  |  |  | 218,795 |
Total inventories, net |  | $ | 372,739 |  |  | $ | 360,629 |

At June 28, 2025 and March 29, 2025, reserves for obsolete inventory were $11.0 million and $11.1 million, respectively.

4. Property, Plant, and Equipment

Property, plant, and equipment are stated at cost. Depreciation is calculated primarily on a straight-line basis, generally over the following estimated useful lives: land improvements – 3 to 10 years; buildings and improvements – 8 to 25 years; and vehicles and machinery and equipment – 3 to 8 years. Depreciation expense for the three months ended June 28, 2025 and June 29, 2024 was $9.0 million and $7.7 million, respectively.

The components of property, plant, and equipment were as follows:

(Dollars in thousands) |  | June 28, 2025 |  |  | March 29, 2025 |
Land and improvements |  | $ | 85,915 |  |  | $ | 78,936 |
Buildings and improvements |  |  | 204,038 |  |  |  | 197,491 |
Machinery and equipment |  |  | 176,190 |  |  |  | 172,208 |
Construction in progress |  |  | 16,177 |  |  |  | 14,457 |
Property, plant, and equipment, at cost |  |  | 482,320 |  |  |  | 463,092 |
Less: accumulated depreciation |  |  | (165,283 | ) |  |  | (155,952 | )
Property, plant, and equipment, net |  | $ | 317,037 |  |  | $ | 307,140 |

5. Goodwill, Intangible Assets, and Cloud Computing Arrangements

Goodwill

Goodwill represents the excess of the cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. At June 28, 2025 and March 29, 2025, the Company had goodwill of $363.5 million and $358.0 million, respectively. The change in goodwill balance is due to the acquisition of Iseman Homes. Goodwill is allocated to reporting units included in the U.S. Factory-built Housing segment, which include the Company’s U.S. manufacturing and retail operations. At June 28, 2025, there were no accumulated impairment losses related to goodwill.

8

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

Intangible Assets

The components of amortizable intangible assets were as follows:

(Dollars in thousands) |  | June 28, 2025 |  |  | March 29, 2025 |
|  | Customer Relationships & Other |  |  | Trade Names |  |  | Total |  |  | Customer Relationships & Other |  |  | Trade Names |  |  | Total |
Gross carrying amount |  | $ | 82,859 |  |  | $ | 49,275 |  |  | $ | 132,134 |  |  | $ | 82,634 |  |  | $ | 46,284 |  |  | $ | 128,918 |
Accumulated amortization |  |  | (48,975 | ) |  |  | (18,452 | ) |  |  | (67,427 | ) |  |  | (46,913 | ) |  |  | (17,293 | ) |  |  | (64,206 | )
Amortizable intangibles, net |  | $ | 33,884 |  |  | $ | 30,823 |  |  | $ | 64,707 |  |  | $ | 35,721 |  |  | $ | 28,991 |  |  | $ | 64,712 |

During each of the three months ended June 28, 2025 and June 29, 2024, amortization of intangible assets was $2.9 million.

Cloud Computing Arrangements

The Company capitalizes costs associated with the development of cloud computing arrangements in a manner consistent with internally developed software. At June 28, 2025 and March 29, 2025, the Company had capitalized cloud computing costs, net of amortization of $22.4 million and $23.0 million, respectively. Cloud computing costs are included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. Amortization of capitalized cloud computing costs for the three months ended June 28, 2025 and June 29, 2024 wa s $1.0 million and $0.2 million, respectively.

6. Investment in ECN Capital Corporation

In September 2023, the Company entered into a share subscription agreement with ECN Capital Corp. ("ECN") and made a $137.8 million equity investment in ECN on a private placement basis. The Company purchased 33.6 million common shares, representing approximately 12% of the total outstanding common shares of ECN, and 27.5 million mandatory convertible preferred shares (the “Preferred Shares”). The Preferred Shares receive cumulative cash dividends at an annual rate of 4.0%. Following the private placement, the Company owns approximately 19.9% of the voting shares of ECN. In connection with the share subscription agreement, the Company and Triad, a subsidiary of ECN, formed Champion Financing LLC ("Champion Financing"), a captive finance company that is 51% owned by the Company and 49% owned by Triad. The results of Champion Financing are included in the consolidated results of the Company on a three-month lag. Triad's 49% ownership interest is reflected as non-controlling interest in the Condensed Consolidated Income Statements.

The Company's interest in the common stock 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. For the three months ended June 28, 2025, the Company's share of ECN's net losses w as $0.5 million. For the three months ended June 29, 2024, the Company's share of ECN's losses was $1.2 million. Dividends received on the inve stment in common stock of ECN are reflected as a reduction to the investment balance and are presented on the Condensed Consolidated Statements of Cash Flows using the nature of the distribution approach. At June 28, 2025 and March 29, 2025, the investment in the common stock of ECN totale d $69.5 million and $70.2 million, respectively, and is included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The aggregate value of the Company’s investment in the common stock of ECN based on the quoted market price of ECN’s common stock at June 28, 2025 was approxim ately $66.6 million. W e assess our investment in ECN common stock for other than temporary impairment on a quarterly basis or when events or circumstances suggest that the carrying amount of the investment may be impaired. We do not consider the difference in the fair market value of ECN common stock and our investment balance to be other than temporary at June 28, 2025.

The Company's investment in the Preferred Shares is included in other noncurrent assets in the accompanying Condensed Consolidated Balance Sheets. The investment is measured using the measurement alternative for equity investments without a readily determinable fair value. At June 28, 2025 and March 29, 2025, the investment in the Pr eferred Shares was $64.5 million. There h ave been no adjustments to the carrying amount or impairment of the investment. For each of the three months ended June 28, 2025 and June 29, 2024, the Company reflected dividend income from the investment in the Preferred Shar es of $1.2 million in other income on the accompanying Condensed Consolidated Income Statements.

Triad, a related party through its parent ECN, provides loan servicing for the Company's floor plan receivables. The Company pays Triad a fee for servicing loans which was not material for either of the three months ended June 28, 2025 or June 29, 2024. Triad also provides floor plan financing of the Company's products to Company-owned and independent retailers. At June 28, 2025 and March 29, 2025, the Company had floor plan payables due to Triad o f $31.1 million and $35.0 million, respectively. See Note 9, Debt and Floor Plan Payable for further

9

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

detail regarding the Company's floor plan financing. At June 28, 2025, the Company had repurchase commitments o f $116.2 million on independent retailer floor plan loans outstanding with Triad. See Note 14, Commitments, Contingencies, and Concentrations, for further detail regarding the Company's contingent repurchase obligations.

7. Other Current Liabilities

The components of other current liabilities were as follows:

(Dollars in thousands) |  | June 28, 2025 |  |  | March 29, 2025 |
Customer deposits |  | $ | 87,973 |  |  | $ | 82,886 |
Accrued volume rebates |  |  | 25,957 |  |  |  | 26,227 |
Accrued warranty obligations |  |  | 40,631 |  |  |  | 40,523 |
Accrued compensation and payroll taxes |  |  | 48,050 |  |  |  | 52,644 |
Accrued insurance |  |  | 16,383 |  |  |  | 15,825 |
Accrued product liability - water intrusion |  |  | 33,283 |  |  |  | 34,094 |
Other |  |  | 41,802 |  |  |  | 27,882 |
Total other current liabilities |  | $ | 294,079 |  |  | $ | 280,081 |

8. Accrued Warranty Obligations

Changes in the accrued warranty obligations were as follows:

|  | Three months ended |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |
Balance at beginning of period |  | $ | 53,155 |  |  | $ | 50,869 |
Warranty expense |  |  | 18,165 |  |  |  | 18,688 |
Cash warranty payments |  |  | (18,057 | ) |  |  | (15,446 | )
Balance at end of period |  |  | 53,263 |  |  |  | 54,111 |
Less: noncurrent portion in other long-term liabilities |  |  | (12,632 | ) |  |  | (11,693 | )
Total current portion |  | $ | 40,631 |  |  | $ | 42,418 |

9. Debt and Floor Plan Payable

Long-term debt consisted of the following:

(Dollars in thousands) |  | June 28, 2025 |  |  | March 29, 2025 |
Obligations under industrial revenue bonds due 2029 |  | $ | 12,430 |  |  | $ | 12,430 |
Notes payable to Romeo Juliet, LLC, due 2026 |  |  | 5,314 |  |  |  | 5,314 |
Notes payable to Romeo Juliet, LLC, due 2039 |  |  | 2,036 |  |  |  | 2,036 |
Note payable to United Bank, due 2026 |  |  | 4,325 |  |  |  | 4,993 |
Total long-term debt |  | $ | 24,105 |  |  | $ | 24,773 |

On July 7, 2021, the Company entered into an Amended and Restated Credit Agreement with a syndicate of banks that provides for a revolving credit facility of up to $200.0 million, including a $45.0 million letter of credit sub-facility ("Amended Credit Agreement"). The Amended Credit Agreement replaced the Company's previously existing $100.0 million revolving credit facility. The Amended Credit Agreement allows the Company to draw down, repay and re-draw loans on the available funds during the term, subject to certain terms and conditions, matures in July 2026, and has no scheduled amortization.

On May 18, 2023, the Company further amended the Amended Credit Agreement, which removed references to the London Interbank Offer Rate ("LIBOR") and clarified language pertaining to the Secured Overnight Financing Rate ("SOFR") in regards to the interest rate on borrowings. The interest rate on borrowings under the Amended Credit Agreement is based on SOFR plus a SOFR adjustment, plus an interest rate spread. The interest rate spread adjusts based on the consolidated total net leverage of the Company from a high o f 1.875% whe n the consolidated total net leverage ratio is equal to or greater than 2.25:1.00, to a low of 1.125% when the consolidated total net leverage ratio is below 0.50:1.00. Alternatively for same day borrowings, the interest rate is based on an Alternative Base Rate ("ABR") plus an interest rate

10

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

spread that ranges from a high of 0.875% to a low of 0.125% based on the consolidated total net leverage ratio. In addition, the Company is obligated to pay an unused line fee ranging between 0.15% and 0.3% depending on the consolidated total net leverage ratio, in respect of unused commitments under the Amended Credit Agreement. At June 28, 2025, the interest rate under the Amended Credit Agreement was 5.55% and letters of credit issued under the Amended Credit Agreement tot aled $27.5 million. Available borrowing capacity under the Amended Credit Agreement as of June 28, 2025 was $172.5 million.

The Amended Credit Agreement contains covenants that restrict the amount of additional debt, liens and certain payments, including equity buy-backs, investments, dispositions, mergers and consolidations, among other restrictions as defined. The Company was in compliance with all covenants of the Amended Credit Agreement as of June 28, 2025.

Obligations under industrial revenue bonds are supported by letters of credit and bear interest based on a municipal bond index rate. The weighted-average interest rate at June 28, 2025, including related costs and fees, was 3.47%. T he industrial revenue bonds require lump-sum payments of principal upon maturity in 2029 and are secured by the assets of certain manufacturing facilities.

As part of the acquisition of Regional Homes, the Company assumed notes payable to Romeo Juliet, LLC, a subsidiary of Wells Fargo Community Investment Holdings, Inc. ("WFC"). The weighted-average interest rate on those notes at June 28, 2025 was 5.42%. The notes are secured by certain assets of Regional Homes. In addition, the Company assumed a note payable to United Bank with an interest rate o f 3.85% th at is secured by a note receivable from HHB Investment Fund, LLC, a subsidiary of WFC.

Floor Plan Payables

The Company’s retail operations utilize floor plan financing to fund the purchase of manufactured homes for display or resale. At June 28, 2025 and March 29, 2025, the Company had outstanding borrowings on floor plan financing agreements of $103.7 million and $106.1 million, respectively. Total credit line capacity provided under the agreements w as $253.0 million as of June 28, 2025. The weighted average interest rate on floor plan payables was 7.06% at June 28, 2025. Borrowings are secured by the homes and are required to be repaid when the Company sells the related home to a customer.

10. Revenue Recognition

The following tables disaggregate the Company’s revenue by sales category:

|  | Three months ended June 28, 2025 |
(Dollars in thousands) |  | U.S. Factory-Built Housing |  |  | Canadian Factory-Built Housing |  |  | Corporate/ Other |  |  | Total |
Manufacturing |  | $ | 424,977 |  |  | $ | 30,120 |  |  | $ | — |  |  | $ | 455,097 |
Retail |  |  | 236,954 |  |  |  | — |  |  |  | — |  |  |  | 236,954 |
Transportation/Other |  |  | — |  |  |  | — |  |  |  | 9,267 |  |  |  | 9,267 |
Total |  | $ | 661,931 |  |  | $ | 30,120 |  |  | $ | 9,267 |  |  | $ | 701,318 |
|  | Three months ended June 29, 2024 |
(Dollars in thousands) |  | U.S. Factory-Built Housing |  |  | Canadian Factory-Built Housing |  |  | Corporate/ Other |  |  | Total |
Manufacturing |  | $ | 380,294 |  |  | $ | 20,799 |  |  | $ | — |  |  | $ | 401,093 |
Retail |  |  | 219,239 |  |  |  | — |  |  |  | — |  |  |  | 219,239 |
Transportation |  |  | — |  |  |  | — |  |  |  | 7,447 |  |  |  | 7,447 |
Total |  | $ | 599,533 |  |  | $ | 20,799 |  |  | $ | 7,447 |  |  | $ | 627,779 |

11

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

11. Income Taxes

For the three months ended June 28, 2025 and June 29, 2024, the Company recorded $17.7 million and $13.7 million of income tax expense and had an effective tax rate of 21.0% and 22.5%, respectively.

The Company’s effective tax rate for the three months ended June 28, 2025 and June 29, 2024, differs from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions.

The One Big Beautiful Bill Act ("OBBBA") was signed into law on July 4, 2025, which is considered the enactment date under U.S. GAAP. OBBBA changed many aspects of U.S. corporate income taxation including accelerated bonus depreciation, research and experimentation expense deduction, and terminating the energy efficient home tax credit. OBBBA contains multiple effective dates and only certain aspects will have a financial reporting implication for the fiscal year ending March 28, 2026. The Company is currently assessing the impact of OBBBA which could be material.

At June 28, 2025, the Company had no unrecognized tax benefits.

12. Earnings Per Share

Basic net income per share attributable to the Company was computed by dividing net income attributable to the Company by the average number of common shares outstanding during the period. Diluted earnings per share is calculated using our weighted-average outstanding common shares, including the dilutive effect of stock awards as determined under the treasury stock method.

The following table sets forth the computation of basic and diluted earnings per common share:

|  | Three months ended |
(Dollars and shares in thousands, except per share data) |  | June 28, 2025 |  |  | June 29, 2024 |
Numerator: |  |  |  |  |  |
Net income attributable to Champion Homes, Inc. |  | $ | 64,687 |  |  | $ | 45,794 |
Denominator: |  |  |  |  |  |
Basic weighted-average shares outstanding |  |  | 57,105 |  |  |  | 57,865 |
Dilutive securities |  |  | 339 |  |  |  | 470 |
Diluted weighted-average shares outstanding |  |  | 57,444 |  |  |  | 58,335 |
Basic net income per share |  | $ | 1.13 |  |  | $ | 0.79 |
Diluted net income per share |  | $ | 1.13 |  |  | $ | 0.79 |

13. Segment Information

Financial results for the Company's reportable segments have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's chief operating decision maker in allocating resources and in assessing performance. The Company’s chief operating decision maker, the Chief Executive Officer, evaluates the performance of the Company’s segments primarily based on net sales, before elimination of inter-company shipments, earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and operating assets.

The Company operates in two reportable segments: (i) U.S. Factory-built Housing, which includes manufacturing and retail housing operations and (ii) Canadian Factory-built Housing. Corporate/Other includes the Company’s transportation operations, the Company's financing activities, corporate costs directly incurred for all segments and intersegment eliminations. Segments are generally determined by geography. Segment data includes intersegment revenues and corporate office costs that are directly and exclusively incurred for each segment. Total assets for Corporate/Other primarily include cash and certain U.S. deferred tax items not specifically allocated to another segment.

12

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

Beginning in fiscal 2025, the Company adopted ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures". Selected financial information by reportable segment was as follows:

|  | Three months ended June 28, 2025 |
(Dollars in thousands) |  | U.S. Factory-built Housing |  |  | Canadian Factory-built Housing |  |  | Corporate/Other |  |  | Consolidated |
Net sales |  | $ | 661,931 |  |  | $ | 30,120 |  |  | $ | 9,267 |  |  | $ | 701,318 |
Cost of sales(1) |  |  | (480,469 | ) |  |  | (21,417 | ) |  |  | (2,114 | ) |  |  |
Selling, general, and administrative expenses(2) |  |  | (82,363 | ) |  |  | (5,695 | ) |  |  | (18,838 | ) |  |  |
Other items(3) |  |  | — |  |  |  | — |  |  |  | (670 | ) |  |  |
Segment EBITDA |  | $ | 99,099 |  |  | $ | 3,008 |  |  | $ | (12,355 | ) |  |  |
U.S. Factory-built Housing EBITDA |  |  |  |  |  |  |  |  |  |  | $ | 99,099 |
Canadian Factory-built Housing EBITDA |  |  |  |  |  |  |  |  |  |  |  | 3,008 |
Corporate/Other EBITDA |  |  |  |  |  |  |  |  |  |  |  | (12,355 | )
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  | (11,902 | )
Interest income, net |  |  |  |  |  |  |  |  |  |  |  | 4,536 |
Equity in net loss of affiliate |  |  |  |  |  |  |  |  |  |  |  | 585 |
Net income attributable to non-controlling interest |  |  |  |  |  |  |  |  |  |  |  | 1,306 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  | $ | 84,277 |
Depreciation |  | $ | 8,374 |  |  | $ | 461 |  |  | $ | 162 |  |  | $ | 8,997 |
Amortization |  | $ | 2,905 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,905 |
Expenditure for segment assets |  | $ | 8,177 |  |  | $ | 354 |  |  | $ | 370 |  |  | $ | 8,901 |
Segment assets(4) |  | $ | 1,325,992 |  |  | $ | 151,195 |  |  | $ | 672,064 |  |  | $ | 2,149,251 |

(1)
Cost of sales is presented net of depreciation expense.
(2)
Selling, general, and administrative expenses are presented net of depreciation and amortization expense.
(3)
Other items for Corporate/Other include dividend income, equity in net loss of affiliates, and non-controlling interest.
(4)
Deferred tax assets for the Canadian operations are reflected in the Canadian Factory-built Housing segment. U.S. deferred tax assets are presented in Corporate/Other because an allocation between segments is not practicable.

|  | Three months ended June 29, 2024 |
(Dollars in thousands) |  | U.S. Factory-built Housing |  |  | Canadian Factory-built Housing |  |  | Corporate/Other |  |  | Consolidated |
Net sales |  | $ | 599,533 |  |  | $ | 20,799 |  |  | $ | 7,447 |  |  | $ | 627,779 |
Cost of sales(1) |  |  | (439,021 | ) |  |  | (15,039 | ) |  |  | (2,925 | ) |  |  |
Selling, general, and administrative expenses(2) |  |  | (81,491 | ) |  |  | (2,881 | ) |  |  | (20,422 | ) |  |  |
Other items(3) |  |  | — |  |  |  | — |  |  |  | (124 | ) |  |  |
Segment EBITDA |  | $ | 79,021 |  |  | $ | 2,879 |  |  | $ | (16,024 | ) |  |  |
U.S. Factory-built Housing EBITDA |  |  |  |  |  |  |  |  |  |  | $ | 79,021 |
Canadian Factory-built Housing EBITDA |  |  |  |  |  |  |  |  |  |  |  | 2,879 |
Corporate/Other EBITDA |  |  |  |  |  |  |  |  |  |  |  | (16,024 | )
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  | (10,612 | )
Interest income, net |  |  |  |  |  |  |  |  |  |  |  | 4,249 |
Equity in net loss of affiliate |  |  |  |  |  |  |  |  |  |  |  | 1,343 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  | $ | 60,856 |
Depreciation |  | $ | 7,104 |  |  | $ | 437 |  |  | $ | 161 |  |  | $ | 7,702 |
Amortization |  | $ | 2,910 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,910 |
Expenditure for segment assets |  | $ | 9,527 |  |  | $ | 426 |  |  | $ | 759 |  |  | $ | 10,712 |
Segment assets(4) |  | $ | 1,239,898 |  |  | $ | 133,030 |  |  | $ | 614,202 |  |  | $ | 1,987,130 |

(1)
Cost of sales is presented net of depreciation expense.
(2)
Selling, general, and administrative expenses are presented net of depreciation and amortization expense.
(3)
Other items for Corporate/Other include dividend income, and equity in net loss of affiliates.

13

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

(4)
Deferred tax assets for the Canadian operations are reflected in the Canadian Factory-built Housing segment. U.S. deferred tax assets are presented in Corporate/Other because an allocation between segments is not practicable.

14. Commitments, Contingencies, and Legal Proceedings

Repurchase Contingencies and Guarantees

The Company is contingently liable under terms of repurchase agreements with lending institutions that provide wholesale floor plan financing to retailers. These arrangements, which are customary in the manufactured housing industry, provide for the repurchase of products sold to retailers in the event of default by the retailer on its agreement to pay the financial institution. The risk of loss from these agreements is significantly reduced by the potential resale value of any products that are subject to repurchase and is spread over numerous retailers. The repurchase price is generally determined by the original sales price of the product less contractually defined curtailment payments. Based on these repurchase agreements and our historical loss experience, we established an associated loss reserve which was $1.8 million at June 28, 2025 and $1.6 million at March 29, 2025, respectively. Excluding the resale value of the homes, the contingent repurchase obligation as of June 28, 2025 was estimated to be $246.5 million. Losses incurred on homes repurchased were immaterial during the three months ended June 28, 2025 and June 29, 2024.

At June 28, 2025, the Company was contingently obligated f or $27.5 million under letters of credit, consisti ng of $12.7 million to support long-term d ebt, $14.5 million to support the casualty insurance program, and $0.3 million to support bonding agreements. The letter s of credit are issued from a sub-facility of the Amended Credit Agreement. The Company was also contingently obligated for $17.6 million under surety bonds, generally to support performance on long-term construction contracts and license and service bonding requirements.

In the normal course of business, the Company’s former subsidiaries that operated in the United Kingdom historically provided certain guarantees to two customers. Those guarantees provide contractual liability for proven construction defects up to 12 years from the date of delivery of certain products. The guarantees remain a contingent liability of the Company which declines over time through October 2027. As of the date of this report, the Company expects few, if any, claims to be reported under the terms of the guarantees.

Product Liability - Water Intrusion

The Company has received consumer complaints for damages related to water intrusion in homes built in one of its manufacturing facilities prior to fiscal 2022. The Company has investigated, and believes, the cause of the damage is the result of materials that did not perform in accordance with the manufacturer's contractual obligations. The Company has identified that certain homes constructed over that period may be affected. Based on the results of ongoing investigation and repair efforts, the Company has developed and HUD has approved a remediation plan under Subpart I of the HUD code. The plan calls for inspection and repair of affected homes if there is evidence of damage, or procedures to mitigate the opportunity for future damage. The Company recorded charges to execute the remediation plan of $34.5 million during the fourth quarter of fiscal 2024. The Company estimated the charges by establishing a range of total expected costs determined by an actuary using a Monte Carlo simulation. The analysis, which was completed at the end of the fourth quarter of fiscal 2024, resulted in a range of losses between $34.5 million and $85.0 million. The Company was not able to determine a value in the range that was more likely than any other value, and as prescribed by U.S. GAAP, recorded the charge for remediation based on the low end of the range of potential losses. The Company reassessed the total expected costs in the fourth quarter of fiscal 2025 which resulted in no change to the low end of the range of potential losses and reduction in the high end of the range of potential losses to $77.5 million. The Company is monitoring the results of the inspection and repair activities, and may revise the amount of the estimated liability, which could result in an increase or decrease in the estimated liability in future periods. The liability, net of $1.2 million of remediation payments made through the first quarter of fiscal 2026, is included in other current liabilities in the accompanying Consolidated Balance Sheets.

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. The Company will attempt to recover those costs from the manufacturer of the material, the distributor of the material, their related insurance providers or from the Company's insurance providers. However, the Company is unable to record an offset for any estimated costs at this time in accordance with U.S. GAAP.

14

Champion Homes, Inc.

Notes to Condensed Consolidated Financial Statements - Continued

Legal Proceedings

The Company has agreed to indemnify counterparties in the ordinary course of its business in agreements to acquire and sell business assets and in financing arrangements. The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. As of the date of this filing, the Company believes the ultimate liability with respect to these contingent obligations will not have, either individually or in the aggregate, a material adverse effect on the Company’s financial condition, results of operations, or cash flows.

15. Subsequent Event

On July 28, 2025, the Company entered into the Second Amended and Restated Credit Agreement with a syndicate of banks (the "Second Amended Credit Agreement"). The Second Amended Credit Agreement provides for a $200.0 million revolving credit facility (the “Revolving Credit Facility”), including a $45.0 million letter of credit sub-facility. Pursuant to Incremental Facility Amendments, and subject to certain provisions, the Company may also increase the amount of Revolving Commitments up to an additional $100.0 million. The Second Amended Credit Agreement amended and restated the Company’s existing $200.0 million revolving credit facility. The Revolving Credit Facility may be utilized for working capital, capital expenditures, permitted acquisitions, permitted restricted payments and other general corporate purposes. The Revolving Credit Facility matures on July 28, 2030, and has no scheduled amortization.

15

Item 2. MANAGEMENT’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following should be read in conjunction with Champion Homes, Inc.’s condensed consolidated financial statements and the related notes that appear in Item 1 of this Report.

Overview

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.

Acquisitions, Expansions and Consolidations

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 May 2025, the Company acquired Iseman Homes which operated 10 retail sales centers across the North Central U.S. This acquisition enhances the Company's ability to strengthen distribution from its nearby manufacturing facilities, furthering the Company’s commitment to integrated growth. In October 2023, the Company acquired Regional Homes, which operated three manufacturing facilities in Alabama and 44 retail sales centers across the Southeast U.S. Regional Homes' strong presence in large HUD markets expanded our captive retail and manufacturing distribution in that region.

In addition to those acquisitions, the Company is also focused on enhancing its U.S. manufacturing production capacity, as well as redeployment of capital and resources through strategic actions at specific plants. During the first quarter of fiscal 2026, the Company idled production at the Bartow, Florida manufacturing plant and communicated a plan to cease operations at the Kelowna, British Columbia manufacturing plant. We believe these actions will ultimately lead to greater operating efficiency and profitability. The Company owns seven 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, 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.

The Company's acquisitions, investments and plant consolidation 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.

16

The Company saw a decrease in customer orders during the three months ended June 28, 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 $302.5 million as of June 28, 2025 compared to $404.8 million as of June 29, 2024.

For the three months ended June 28, 2025, approximately 85.1% 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 27,676 and 27,024 units during the three months ended May 31, 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 21.3%, for the three months ended May 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 11% of all U.S. single family home starts. Our market share in the U.S total housing market was approximately 2.7% and 2.5% for the three months ended June 28, 2025 and June 29, 2024, respectively.

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

|  | Three months ended |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |
Income Statements Data: |  |  |  |  |  |
Net sales |  | $ | 701,318 |  |  | $ | 627,779 |
Cost of sales |  |  | 511,488 |  |  |  | 463,564 |
Gross profit |  |  | 189,830 |  |  |  | 164,215 |
Selling, general, and administrative expenses |  |  | 111,309 |  |  |  | 108,827 |
Operating income |  |  | 78,521 |  |  |  | 55,388 |
Interest (income), net |  |  | (4,536 | ) |  |  | (4,249 | )
Other (income) |  |  | (1,220 | ) |  |  | (1,219 | )
Income before income taxes |  |  | 84,277 |  |  |  | 60,856 |
Income tax expense |  |  | 17,699 |  |  |  | 13,719 |
Net income before equity in net income of affiliates |  |  | 66,578 |  |  |  | 47,137 |
Equity in net loss of affiliates |  |  | 585 |  |  |  | 1,343 |
Net income |  | $ | 65,993 |  |  | $ | 45,794 |
Net income attributable to non-controlling interest |  |  | 1,306 |  |  |  | — |
Net income attributable to Champion Homes, Inc. |  | $ | 64,687 |  |  | $ | 45,794 |
Reconciliation of Adjusted EBITDA: |  |  |  |  |  |
Net income attributable to Champion Homes, Inc. |  | $ | 64,687 |  |  | $ | 45,794 |
Income tax expense |  |  | 17,699 |  |  |  | 13,719 |
Interest (income), net |  |  | (4,536 | ) |  |  | (4,249 | )
Depreciation and amortization |  |  | 11,902 |  |  |  | 10,612 |
Equity in net loss of ECN |  |  | 459 |  |  |  | 1,179 |
Change in fair value of contingent consideration |  |  | — |  |  |  | 7,912 |
Plant closure costs |  |  | 3,252 |  |  |  | — |
Transaction costs |  |  | 714 |  |  |  | — |
Adjusted EBITDA |  | $ | 94,177 |  |  | $ | 74,967 |
As a percent of net sales: |  |  |  |  |  |
Gross profit |  |  | 27.1 | % |  |  | 26.2 | %
Selling, general, and administrative expenses |  |  | 15.9 | % |  |  | 17.3 | %
Operating income |  |  | 11.2 | % |  |  | 8.8 | %
Net income attributable to Champion Homes, Inc. |  |  | 9.2 | % |  |  | 7.3 | %
Adjusted EBITDA |  |  | 13.4 | % |  |  | 11.9 | %

17

NET SALES

The following table summarizes net sales for the three months ended June 28, 2025 and June 29, 2024:

|  | Three months ended |  |  |  |  |  |  |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |  |  | $ Change |  |  | % Change |
Net sales |  | $ | 701,318 |  |  | $ | 627,779 |  |  | $ | 73,539 |  |  |  | 11.7 | %
U.S. manufacturing and retail net sales |  | $ | 661,931 |  |  | $ | 599,533 |  |  | $ | 62,398 |  |  |  | 10.4 | %
U.S. homes sold |  |  | 6,965 |  |  |  | 6,538 |  |  |  | 427 |  |  |  | 6.5 | %
U.S. manufacturing and retail average home selling price |  | $ | 95.0 |  |  | $ | 91.7 |  |  |  | 3.3 |  |  |  | 3.6 | %
Canadian manufacturing net sales |  | $ | 30,120 |  |  | $ | 20,799 |  |  | $ | 9,321 |  |  |  | 44.8 | %
Canadian homes sold |  |  | 250 |  |  |  | 167 |  |  |  | 83 |  |  |  | 49.7 | %
Canadian manufacturing average home selling price |  | $ | 120.5 |  |  | $ | 124.5 |  |  | $ | (4.1 | ) |  |  | (3.3 | %)
Corporate/Other net sales |  | $ | 9,267 |  |  | $ | 7,447 |  |  | $ | 1,820 |  |  |  | 24.4 | %
U.S. manufacturing facilities in operation at end of period |  |  | 42 |  |  |  | 43 |  |  |  |  |  |  |
U.S. retail sales centers in operation at end of period |  |  | 82 |  |  |  | 72 |  |  |  |  |  |  |
Canadian manufacturing facilities in operation at end of period |  |  | 4 |  |  |  | 5 |  |  |  |  |  |  |

Net sales for the three months ended June 28, 2025 were $701.3 million, an increase of $73.5 million, or 11.7%, compared to the three months ended June 29, 2024. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

Net sales for the Company’s U.S. manufacturing and retail operations increased by $62.4 million, or 10.4%, for the three months ended June 28, 2025 compared to the three months ended June 29, 2024. The increase was due to a 6.5% increase in new homes sold and a 3.6% 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. The increase in average selling price was due to a shift in mix to more multi-wide units and increased pricing at our company-owned retail sales centers.

Canadian Factory-built Housing:

The Canadian Factory-built Housing segment net sales increased by $9.3 million, or 44.8% for the three months ended June 28, 2025 compared to the same period in the prior fiscal year, primarily due to a 49.7% increase in homes sold partially offset by a 3.3% 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 $0.7 million due to fluctuations in the translation of the Canadian dollar to the U.S. dollar during the three months ended June 28, 2025 as compared to the same period of the prior fiscal year.

Corporate/Other:

Net sales for Corporate/Other includes the Company’s transportation business, financing activities, and the elimination of intersegment sales. For the three months ended June 28, 2025, net sales increased $1.8 million, or 24.4%, primarily attributable to revenue generated from Champion Financing, partially offset by lower recreational vehicle shipments from the Company's transportation business.

GROSS PROFIT

The following table summarizes gross profit for the three months ended June 28, 2025 and June 29, 2024:

|  | Three months ended |  |  |  |  |  |  |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |  |  | $ Change |  |  | % Change |
Gross profit: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Factory-built Housing |  | $ | 174,403 |  |  | $ | 154,341 |  |  | $ | 20,062 |  |  |  | 13.0 | %
Canadian Factory-built Housing |  |  | 8,274 |  |  |  | 5,352 |  |  |  | 2,922 |  |  |  | 54.6 | %
Corporate/Other |  |  | 7,153 |  |  |  | 4,522 |  |  |  | 2,631 |  |  |  | 58.2 | %
Total gross profit |  | $ | 189,830 |  |  | $ | 164,215 |  |  | $ | 25,615 |  |  |  | 15.6 | %
Gross profit as a percent of net sales |  |  | 27.1 | % |  |  | 26.2 | % |  |  |  |  |  |

18

Gross profit as a percent of sales during the three months ended June 28, 2025 was 27.1% compared to 26.2% during the three months ended June 29, 2024. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

Gross profit for the U.S. Factory-built Housing segment increased by $20.1 million, or 13.0%, during the three months ended June 28, 2025 compared to the same period in the prior fiscal year. Gross profit was 26.3% as a percent of segment net sales for the three months ended June 28, 2025 compared to 25.7% in the same period of the prior fiscal year. The increase in gross profit as a percent of segment net sales is being driven by higher average selling prices on new homes sold through our Company-owned retail sales centers and the reduction in the impact to the carrying value of inventory from purchase accounting as a result of the acquisition of Regional Homes in October 2023.

Canadian Factory-built Housing:

Gross profit for the Canadian Factory-built Housing segment increased by $2.9 million, or 54.6%, during the three months ended June 28, 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 27.5% for the three months ended June 28, 2025, compared to 25.7% in the same period of the prior year, primarily due to more absorption of fixed costs due to higher sales volumes.

Corporate/Other:

Gross profit for the Corporate/Other segment increased $2.6 million, or 58.2%, during the three months ended June 28, 2025 compared to the same period of the prior fiscal year due primarily to the inclusion of Champion Financing.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

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 three months ended June 28, 2025 and June 29, 2024:

|  | Three months ended |  |  |  |  |  |  |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |  |  | $ Change |  |  | % Change |
Selling, general, and administrative expenses: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Factory-built Housing |  | $ | 86,583 |  |  | $ | 85,334 |  |  | $ | 1,249 |  |  |  | 1.5 | %
Canadian Factory-built Housing |  |  | 5,726 |  |  |  | 2,910 |  |  |  | 2,816 |  |  |  | 96.8 | %
Corporate/Other |  |  | 19,000 |  |  |  | 20,583 |  |  |  | (1,583 | ) |  |  | (7.7 | %)
Total selling, general, and administrative expenses |  | $ | 111,309 |  |  | $ | 108,827 |  |  | $ | 2,482 |  |  |  | 2.3 | %
Selling, general, and administrative expense as a percent of net sales |  |  | 15.9 | % |  |  | 17.3 | % |  |  |  |  |  |

Selling, general, and administrative expenses were $111.3 million for the three months ended June 28, 2025, an increase of $2.5 million, or 2.3%, compared to the same period in the prior fiscal year. The following is a summary of the change by operating segment.

U.S. Factory-built Housing:

Selling, general, and administrative expenses for the U.S. Factory-built Housing segment increased $1.2 million, or 1.5%, during the three months ended June 28, 2025 as compared to the same period in the prior fiscal year. SG&A, as a percent of segment net sales decreased to 13.1% for the three months ended June 28, 2025 compared to 14.2% during the comparable period of the prior fiscal year. The increase in SG&A was due to higher incentive compensation, the acquisition of Iseman Homes and $1.0 million of costs associated with the idling of the Bartow, Florida plant, partially offset by 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 period. The decrease in SG&A as a percent of segment sales was a result of higher sales volumes.

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Canadian Factory-built Housing:

Selling, general, and administrative expenses for the Canadian Factory-built Housing segment increased $2.8 million, or 96.8%, for the three months ended June 28, 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 19.0% for the three months ended June 28, 2025 compared to 14.0% during the comparable period of the prior fiscal year due to costs associated with the announced Kelowna plant closure of $2.9 million.

Corporate/Other:

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 $1.6 million, or 7.7%, during the three months ended June 28, 2025 as compared to the same period of the prior fiscal year. The decrease was primarily due to lower IT related costs and lower foreign currency transaction losses, partially offset by higher professional fees related to the acquisition of Iseman Homes.

INTEREST (INCOME), NET

The following table summarizes the components of interest (income), net for the three months ended June 28, 2025 and June 29, 2024:

|  | Three months ended |  |  |  |  |  |  |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |  |  | $ Change |  |  | % Change |
Interest expense |  | $ | 1,497 |  |  | $ | 2,197 |  |  | $ | (700 | ) |  |  | (31.9 | %)
Less: interest income |  |  | (6,033 | ) |  |  | (6,446 | ) |  |  | 413 |  |  |  | (6.4 | %)
Interest (income), net |  | $ | (4,536 | ) |  | $ | (4,249 | ) |  | $ | (287 | ) |  |  | 6.8 | %
Average outstanding floor plan payable |  | $ | 104,888 |  |  | $ | 92,072 |  |  |  |  |  |  |
Average outstanding long-term debt |  | $ | 24,439 |  |  | $ | 24,677 |  |  |  |  |  |  |
Average cash balance |  | $ | 607,833 |  |  | $ | 521,998 |  |  |  |  |  |  |

Interest income, net was $4.5 million for the three months ended June 28, 2025, compared to $4.2 million in the same period of the prior fiscal year. The change was primarily due to lower interest rates on invested cash balances and floor plan payables.

OTHER (INCOME) EXPENSE

The following table summarizes other expense for the three months ended June 28, 2025 and June 29, 2024:

|  | Three months ended |  |  |  |  |  |  |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |  |  | $ Change |  |  | % Change |
Other (income) |  | $ | (1,220 | ) |  | $ | (1,219 | ) |  | $ | (1 | ) |  |  | 0.1 | %

Other income for each of the three months ended June 28, 2025 and June 29, 2024 represents dividend income of $1.2 million from the investment in ECN Preferred Shares.

INCOME TAX EXPENSE

The following table summarizes income tax expense for the three months ended June 28, 2025 and June 29, 2024:

|  | Three months ended |  |  |  |  |  |  |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |  |  | $ Change |  |  | % Change |
Income tax expense |  | $ | 17,699 |  |  | $ | 13,719 |  |  | $ | 3,980 |  |  |  | 29.0 | %
Effective tax rate |  |  | 21.0 | % |  |  | 22.5 | % |  |  |  |  |  |

Income tax expense for the three months ended June 28, 2025 was $17.7 million, representing an effective tax rate of 21.0%, compared to income tax expense of $13.7 million, representing an effective tax rate of 22.5% for the three months ended June 29, 2024.

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The Company’s effective tax rate for each of the three months ended June 28, 2025 and June 29, 2024, differs from the federal statutory income tax rate of 21.0% due primarily to the effect of state and local income taxes, non-deductible expenses, tax credits, and results in foreign jurisdictions.

EQUITY IN NET INCOME OF AFFILIATES

The following table summarizes equity in net loss of affiliates for the three months ended June 28, 2025 and June 29, 2024:

|  | Three months ended |  |  |  |  |  |  |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |  |  | $ Change |  |  | % Change |
Equity in net loss of affiliates |  | $ | 585 |  |  | $ | 1,343 |  |  | $ | (758 | ) |  |  | (56.4 | %)

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 $0.6 million for the three months ended June 28, 2025 represents a loss on the equity method investment in ECN of $0.5 million and net losses from other unconsolidated equity method investments of $0.1 million. Equity in net loss of affiliates of $1.3 million for the three months ended June 29, 2024 represents a loss on the equity method investment in ECN of $1.2 million and net losses from other equity method investments of $0.1 million.

NON-CONTROLLING INTEREST

The following table summarizes net income attributable to non-controlling interest for the three months ended June 28, 2025 and June 29, 2024:

|  | Three months ended |  |  |  |  |  |  |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |  |  | $ Change |  |  | % Change |
Net income attributable to non-controlling interest |  | $ | 1,306 |  |  | $ | — |  |  | $ | 1,306 |  |  |  | 100.0 | %

Net income attributable to non-controlling interest represents the minority partner's 49% share of the results of operations of Champion Financing.

ADJUSTED EBITDA

The following table reconciles net income attributable to Champion Homes, Inc., the most directly comparable U.S. GAAP measure, to Adjusted EBITDA, a non-GAAP financial measure, for the three months ended June 28, 2025 and June 29, 2024:

|  | Three months ended |  |  |  |  |  |  |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |  |  | $ Change |  |  | % Change |
Net income attributable to Champion Homes, Inc. |  | $ | 64,687 |  |  | $ | 45,794 |  |  | $ | 18,893 |  |  |  | 41.3 | %
Income tax expense |  |  | 17,699 |  |  |  | 13,719 |  |  |  | 3,980 |  |  |  | 29.0 | %
Interest income, net |  |  | (4,536 | ) |  |  | (4,249 | ) |  |  | (287 | ) |  |  | 0.07 |
Depreciation and amortization |  |  | 11,902 |  |  |  | 10,612 |  |  |  | 1,290 |  |  |  | 0.12 |
Equity in net loss of ECN |  |  | 459 |  |  |  | 1,179 |  |  |  | (720 | ) |  |  | (0.61 | )
Change in fair value of contingent consideration |  |  | — |  |  |  | 7,912 |  |  |  | (7,912 | ) |  | * |
Plant closure costs |  |  | 3,252 |  |  |  | — |  |  |  | 3,252 |  |  | * |
Transaction costs |  |  | 714 |  |  |  | — |  |  |  | 714 |  |  | * |
Adjusted EBITDA |  | $ | 94,177 |  |  | $ | 74,967 |  |  | $ | 19,210 |  |  |  | 25.6 | %

* indicates that the calculated percentage is not meaningful

Adjusted EBITDA for the three months ended June 28, 2025 was $94.2 million, an increase of $19.2 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.

The Company defines Adjusted EBITDA as net income or loss attributable to Champion Homes, Inc. plus expense or minus income: (a) the provision for income taxes; (b) interest (income) expense, net; (c) depreciation and amortization; (d) gain or loss from discontinued operations; (e) non-cash restructuring charges and impairment of assets; (f) equity in net earnings or losses of ECN; (g) charges related to the remediation of the water intrusion product liability claims; and (h) other non-operating income and costs, including but not limited to those

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costs for the acquisition and integration or disposition of businesses, including the change in fair value of contingent consideration, and idle facilities. Adjusted EBITDA is not a measure of earnings calculated in accordance with U.S. GAAP, and should not be considered an alternative to, or more meaningful than, net income or loss, net sales, operating income or earnings per share prepared on a U.S. GAAP basis. Adjusted EBITDA does not purport to represent cash flow provided by, or used in, operating activities as defined by U.S. GAAP, which is presented in the Statement of Cash Flows. In addition, Adjusted EBITDA is not necessarily comparable to similarly titled measures reported by other companies.

Adjusted EBITDA is presented as a supplemental measure of the Company’s financial performance that management believes is useful to investors, because the excluded items may vary significantly in timing or amounts and/or may obscure trends useful in evaluating and comparing the Company’s operating activities across reporting periods. Management believes Adjusted EBITDA is useful to an investor in evaluating operating performance for the following reasons: (i) Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest income and expense, taxes, depreciation and amortization and other non-operating income or loss, which can vary substantially from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets were acquired; and (ii) analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry.

Management uses Adjusted EBITDA for planning purposes, including the preparation of the internal annual operating budget and periodic forecasts: (i) in communications with the Board of Directors and investors concerning financial performance; (ii) as a factor in determining bonuses under certain incentive compensation programs; and (iii) as a measure of operating performance used to determine the ability to provide cash flows to support investments in capital assets, acquisitions and working capital requirements for operating expansion.

BACKLOG

Although orders from customers can be canceled at any time without penalty, and unfilled orders are not necessarily an indication of future business, the Company’s unfilled U.S. and Canadian manufacturing orders at June 28, 2025 totaled $302.5 million compared to $404.8 million at June 29, 2024. The decrease in backlog is a function of lower orders and higher production rates during the first quarter of fiscal 2026 compared to the same period in the prior year.

Liquidity and Capital Resources

Sources and Uses of Cash

The following table presents summary cash flow information for the three months ended June 28, 2025 and June 29, 2024:

|  | Three months ended |
(Dollars in thousands) |  | June 28, 2025 |  |  | June 29, 2024 |
Net cash provided by (used in): |  |  |  |  |  |
Operating activities |  | $ | 75,302 |  |  | $ | 84,616 |
Investing activities |  |  | (33,864 | ) |  |  | (9,082 | )
Financing activities |  |  | (51,864 | ) |  |  | (20,604 | )
Effect of exchange rate changes on cash, cash equivalents |  |  | 5,415 |  |  |  | (1,060 | )
Net (decrease) increase in cash and cash equivalents |  |  | (5,011 | ) |  |  | 53,870 |
Cash and cash equivalents at beginning of period |  |  | 610,338 |  |  |  | 495,063 |
Cash and cash equivalents at end of period |  | $ | 605,327 |  |  | $ | 548,933 |

The Company’s primary sources of liquidity are cash flows from operations and existing cash balances. Cash balances and cash flows from operations for the next year are expected to be adequate to cover working capital requirements, capital expenditures, and strategic initiatives and investments. The Company has an Amended Credit Agreement which provides for a $200.0 million revolving credit facility, including a $45.0 million letter of credit sub-facility. At June 28, 2025, $172.5 million was available for borrowing under the Amended Credit Agreement. The Company’s revolving credit facility includes (i) a maximum consolidated total net leverage ratio of 3.25 to 1.00, subject to an upward adjustment upon the consummation of a material acquisition, and (ii) a minimum interest coverage ratio of 3.00 to 1.00. The Company anticipates compliance with its debt covenants and projects its level of cash availability to be in excess of cash needed to operate the business for the next year and beyond. In the event operating cash flow and existing cash balances were deemed inadequate to support the Company’s liquidity needs, and one or more capital resources were to become unavailable, the Company would revise its operating strategies.

Cash provided by operating activities was $75.3 million for the three months ended June 28, 2025 compared to $84.6 million for the three months ended June 29, 2024. The decrease was primarily driven by less favorable changes in working capital items during the first three months of fiscal 2025 as compared to the same period of the prior year, partially offset by higher operating income before non-cash charges.

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Cash used in investing activities was $33.9 million for the three months ended June 28, 2025 compared to $9.1 million for the three months ended June 29, 2024. The increase in cash used in investing activities was related to net cash used to acquire Iseman Homes in the first quarter of fiscal 2026.

Cash used in financing activities was $51.9 million for the three months ended June 28, 2025 compared to $20.6 million for the three months ended June 29, 2024. The change between periods was primarily a result of repurchases of the Company's common stock which totaled $50.0 million in first quarter fiscal 2026 compared to $20.0 million in the first quarter of fiscal 2025.

Critical Accounting Policies

For a discussion of our critical accounting policies that management believes affect its more significant judgments and estimates used in the preparation of our Consolidated Financial Statements, see Part II, Item 7 of the Fiscal 2025 Annual Report, under the heading “Critical Accounting Policies.” There have been no significant changes in our significant accounting policies or critical accounting estimates discussed in the Fiscal 2025 Annual Report, other than those included in Note 1, "Basis of Presentation".

Recently Issued Accounting Pronouncements

For information on the impact of recently issued accounting pronouncements, see Note 1, “Basis of Presentation – Recently Issued Accounting Pronouncements,” to the condensed consolidated financial statements included in this Report.

Forward-Looking Statements

Some of the statements in this Report are not historical in nature and 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;

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•
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 risks relating to the material weakness, including remediation actions, we previously identified in our internal control over financial reporting;
•
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," included in the Fiscal 2025 Annual Report, 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.

Item 3. QUANTITATIVE AND QUALITATI VE DISCLOSURES ABOUT MARKET RISK

For a discussion of the Company’s interest rate and foreign exchange risks, see Part II, Item 7A of the Fiscal 2025 Annual Report, under the heading "Quantitative and Qualitative Disclosures about Market Risk." There have been no significant changes in such risks since March 29, 2025.

Item 4. CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

The Company maintains disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized, and reported within the specified time periods and accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

The Company’s management, with the participation of the CEO and CFO, evaluated the effectiveness of the Company’s disclosure controls and procedures pursuant to Rule 13a-15(e) of the Exchange Act at June 28, 2025. Based upon this evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were not effective as of June 28, 2025, due to a material weakness in internal control over financial reporting described below.

Material Weakness

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 described in Part II, Item 9A "Controls and Procedures" of our fiscal 2025 Annual Report, management identified a material weakness in internal controls related to ineffective operation of controls in the retail operations of Regional Homes, which the Company acquired in October 2023. This material weakness resulted from insufficiently documented manual controls over the recording of transactions, and the lack of analysis and review related to financial statement accounts. As a result of the material weakness there was a reasonable possibility that the ineffective operating controls could have resulted in a material misstatement in the Company’s consolidated financial statements that would not be detected.

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Remediation of Material Weakness

Management has been implementing and continues to implement measures designed to ensure that control deficiencies contributing to the material weakness are remediated such that those controls are designed, implemented, and operating effectively. The remediation actions include (i) improving the retail accounting and information systems to support automated controls, (ii) developing and implementing additional training for control owners concerning the principles and requirements of each control, (iii) hiring and training additional accounting and operating personnel at all levels of the retail operations of Regional Homes; and (iv) increasing corporate oversight and review of controls and processes.

We believe that these actions, when fully implemented, will remediate the material weakness. The material weakness will not be considered remediated, however, until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We may also conclude that additional measures may be required to remediate the material weakness in our internal control over financial reporting, which may necessitate additional implementation and evaluation time. We will continue to assess the effectiveness of our internal control over financial reporting and take steps to remediate the known material weakness expeditiously.

Changes in internal control over financial reporting

Except for the material weakness and remediation efforts described above, there have been no changes in our internal control over financial reporting during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. 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. United States Securities and Exchange Commission 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. We have excluded the acquired operations of Iseman Homes from our assessment of the Company's internal control over financial reporting.

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PART II – OTHE R INFORMATION

Item 1. LEGAL PROCEEDINGS

We are involved from time to time in various legal proceedings and claims, including, without limitation, commercial or contractual disputes, product liability claims and other matters. For additional information on legal proceedings, see Note 14 “Commitments, Contingencies and Legal Proceedings – Legal Proceedings,” to the condensed consolidated financial statements included in this Report.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

In May 2024, Champion Homes, Inc.’s Board of Directors initiated a share repurchase program for up to $100.0 million of the Company’s common stock. The Company has been repurchasing shares since initiation and the Board of Directors has continued to refresh the amount of authorized shares repurchases. During the first quarter of fiscal 2026, the Board of Directors increased the amount of authorization by $70.0 million. In addition, on July 24, 2025, the Board of Directors approved an increase to this share repurchase program of $50.0 million to refresh the available amount to $150.0 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 June 28, 2025 was as follows:

Fiscal Period |  | 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) |
5/4/2025 - 5/31/2025 |  |  | 100,187 |  |  | $ | 65.69 |  |  |  | 100,187 |  |  |  |
6/1/2025 - 6/28/2025 |  |  | 671,601 |  |  | $ | 64.63 |  |  |  | 671,601 |  |  |  |
|  |  | 771,788 |  |  |  |  |  |  | 771,788 |  |  | $ | 100,000 |

Item 5. OTHER INFORMATION

During the three months ended June 28, 2025, none of the Company’s directors or Section 16 officers adopted or terminated a Rule 10b5-1 Trading Plan or “non-Rule 10b5-1 trading arrangement,” as defined in Item 408(a) of Regulation S-K.

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Item 6. EXHIBITS

Exhibit Number |  | Description
31.1 |  | Certification of Chief Executive Officer pursuant to Exchange Act rules 13a-4 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. †
31.2 |  | Certification of Chief Financial Officer pursuant to Exchange Act rules 13a-4 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. †
32 |  | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. †
101 (INS) |  | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101(SCH) |  | Inline XBRL Taxonomy Extension Schema With Embedded Linkbases Document.
104 |  | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

† Filed herewith.

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SIGNAT URES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Champion Homes, Inc.

Registrant

Signature |  | Title |  | Date
/s/ Tim Larson |  | President and Chief Executive Officer |  | August 6, 2025
Tim Larson |  | (Principal Executive Officer) |  |
/s/ Laurie Hough |  | Executive Vice President, Chief Financial Officer and Treasurer |  | August 6, 2025
Laurie Hough |  | (Principal Financial Officer) |  |

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