Legacy Housing Stock Earnings Reports

Legacy Housing reported Q1 2026 net revenue of $34.4M (down 3.7% YoY) but delivered higher net income of $10.9M and diluted EPS of $0.46 (up from $0.41). Product sales and shipments were down (312 units vs. 350), driven by a large reduction in dealer inventory finance sales as dealers work through lots; however, retail (+81%), direct (+80%), and mobile home park (+12%) channels showed strength. Loan portfolio interest income rose 6.2% (consumer book growth) with consumer loans at $204.8M and park notes at $199.5M. Cost of goods and SG&A declined, supporting margin expansion; effective tax rate benefited from Section 45L energy credits and purchased transferable tax credits, but the 45L credit expires June 30, 2026, so tax rates are expected to rise thereafter. Balance sheet: $14.1M cash, inventories increased to $50.4M (finished goods build related to data center/workforce housing projects), undrawn $50M revolver (~$49M available), and $539M shareholders' equity. The company repurchased ~31k shares (~$600k) under a new $10M authorization. Credit quality remains strong (>97% of loans <30 days past due) though loan loss reserves were modestly increased. Management highlighted meaningful near-term revenue visibility from large workforce housing orders (nonrefundable deposits ~ $8M in Q1; expects 200–300 unit deliveries starting in Q2 and to recognize substantially all related revenue in calendar 2026), plus robust Texas demand driven by data centers and oilfield activity. Risks/pressures include tariffs and input cost inflation, the winding down and potential reimposition of tariffs, workforce/geographic constraints (availability of park spaces), and uncertainty around an acquisition-related litigation (Americasa) which management says is immaterial to consolidated liquidity/operations.