Champion Homes, Inc.

Good morning and welcome to the Champion Homes first quarter fiscal 2026 earnings call. My name is Mina and I will be the coordinating your call today. I will now turn the call over to your host, Jason Laird, to begin. Jason, please go ahead.

Good morning. Thank you for taking the time to join us for today's conference call and review of our business results for the first quarter ended June 28, 2025. Here to review our results are Tim Larson, Champion Homes President and Chief Executive Officer, and Lori Huff, Executive Vice President, Chief Financial Officer, and Treasurer. Yesterday, after the market closed, we issued our earnings release. As a reminder, the earnings release and statements made during today's call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These results are subject to risks and uncertainties that could cause actual results to differ materially from the company's expectations. Such risks and uncertainties include the factors set forth in the earnings release and in the company's filings with the Securities and Exchange Commission. Please note that today's remarks contain non-GAAP financial measures, which we believe can be useful in evaluating performance. Definitions and reconciliations of these measures can be found in the earnings release. I will now turn the call over to Champion Home CEO, Tim Larson.

Thank you, Jason, and good morning, everyone. Before we discuss our quarterly results, I want to share an update on the progress we are making on our strategic priorities. These priorities reflect how we are elevating the business for near and long-term performance. On our first strategy, winning as a customer-centric high-performance team, we've added two highly accomplished executives, one to our board of directors, Mary Fedewa, and Alan Robertson as Chief Human Resources Officer. Mary is an accomplished leader in the real estate industry with more than 30 years of experience in finance and capital markets. She co-founded Store Capital, one of the largest and fastest growing real estate investment trusts in the US. Mary serves as its president and CEO and is a member of its board of directors. Alan Robertson joins our executive leadership team at CHRO. He has over 15 years of human capital leadership experience including most recently at Pulte Homes, where he led HR across their manufacturing and field operations teams. Alan's home builder experience and business-first leadership style are a great fit to support and develop our 9,000 team members. We continue to invest in our new product strategy that's bringing in new buyers with home styles and floor plans at the right price point and value. Recently, we've received national recognition for our newly launched HUD code and modular homes. You can view the homes on our social platforms. Consistent with our strategy to drive broader awareness to our brands and bring in new buyers to MH, we recently were featured on Designing Spaces on Lifetime Television. The program highlights our homes and how they are each delivered with quality, speed, and affordability without compromise. From a regulatory perspective, we are pleased with last week's unanimous bipartisan vote by the Senate Banking Committee to advance the Road to Housing Act. The bill includes a specific section titled Manufactured Housing for America. that highlights Congress's support for offsite-built homes. We are encouraged that it's advancing to the next step, however recognize it's early in the legislative process. We will continue to closely monitor the legislation and work with MHI in support of its advancement. Now I'll give an overview of this quarter's performance, as well as expectations on the near-term outlook. The team's nimble operational execution resulted in a strong first quarter of fiscal 2026. delivering profitable growth in an ever-changing environment. First quarter year-over-year net sales increased 12% to $701 million, and homes sold during the period increased 8% to a total of 7,215 homes. The increased sales across our channels and effective cost management delivered strong gross margin and earnings growth in the quarter. We are pacing production to the consumer environment in each market, Plants with larger backlogs increased production rates, while some locations moderated with local market trends. Manufacturing backlog at the end of June totaled 302 million, down 12% sequentially. The average backlog lead time ended the quarter at seven weeks, which is within our target range of four to 12 weeks. Now I'll provide some additional commentary from the quarter on each of our sales channels. Sales to our independent retail channel increased compared to the prior year period. In addition to expanding the adoption of our digital and marketing support for dealers, we are also adding independent distribution points. At captive retail, sales increased versus Q1 the prior year due to an increase in average selling price and a shift in product mix. We also closed on the eyes on the acquisition in late May. The combined teams are already making good progress on executing retail and product synergies. Moving to the community channel, Our community sales were up in the first quarter versus the same period last year, driven by new products and strong engagement by our sales team to match the offering with the needs of today's community operators. Consistent with the consumer environment I mentioned earlier, we anticipate some moderation in the community channel, which may impact near-term order rates. Sales through the builder-developer channel grew in the first quarter versus the same period last year. Our pipeline in this channel remains solid and is growing. we remain encouraged by the potential of off-site construction being more widely adopted by builders. Champion Financing, our joint venture with Tribe Financial Services, continues to operate effectively. Our retail loan programs continue to be a key lever in today's consumer environment, as allows our stores to match consumers with the right home and their optimal monthly payment. We are confident that the combination of our joint venture and ongoing access to consumer financing across several lenders provide the diversified portfolio of options for our retailers and consumers. I'll now turn the call over to Lori, who will discuss our quarterly financial performance in more detail.