Q2 2026 Champion Homes Inc Earnings Call

Good morning and welcome to the champion home. Second quarter, fiscal 2026 earnings call. My name is Keith and I will be your recording your call today.

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Oh, now I turn the conference over to your host, Jason villere. To begin Jason, please go ahead.

Good morning. Thank you for taking the time to join us for today's conference call in review of our business results. For the second quarter ended, September 27th, 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 learnings released in statements during today's call include forward-looking statements within the meeting of the private security litigation Reform, Act of 1995,

these statements are subject to risks and uncertainties that could cause actual actual results to differ materially from the company's expectations.

Such risks and uncertainties include 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. I'll talk more specifically about our results in a moment, but first, I will share some operational highlights from the quarter and how I believe executing our customer Centric strategic, priorities helped us exceed expectations in Q2.

Our strategic priorities will continue to provide the foundation for Champions operational effectiveness in the near and long term.

As I previously shared 1 of our priorities is innovating and differentiated with a products and services by customer segments and at the right price value.

During the quarter, we continue to introducing new home designs to provide a range of price points and value for today's customers.

We have included examples of some of our latest products on our socials and an investor deck on our website.

I continue to Marine impressed by our team's ability to create stunning homes with relevant floor, plans and features.

That are making new home ownership a reality for more consumers.

Increasing awareness to man and advocacy for Our Brands and homes is another strategic party for Champion.

We are pleased at this bill as passed the Senate and on its way to the house.

We will continue to monitor the legislation as it goes from the house to the president. And then to HUD for implementation,

on a local level in New York state and as reported in September by the New York Times Champion is collaborating with New York State homes and Community, Renewal as part of their affordable housing strategy reflect in New York State, Governor haw's, 5-year plan to create a preserve thousands of homes Statewide

the pilot program in Syracuse, New York, demonstrates Champions ability to provide affordable housing Solutions with speed to Market

The homes were installed on land provided by local land banks. With the cost to build an install under 250,000 dollars.

And taking less than 6 months to complete.

This project reflects the momentum and increased awareness, we are seeing across federal state and local governments and highlights off-state constructions benefits of speed cost and quality.

Now, I'll turn to the recent quarters performance.

Second quarter year-over-year, net sales increased 11% to 684 million and homes, sold During the period, increased 4% to a total of 6,771 homes.

The increase sales to our company-owned captive retail stores and at independent retailers were supported by effective cost management, delivering, strong, gross, margin and earnings growth in the quarter.

Our teams continue to be thoughtfully Pace production with demand in each market, manufacturing backlog at the end of September total 313 million up 4% sequentially.

The average backlog lead time ended the quarter at 8 weeks, which is within our target range.

From a channel perspective, sales to our independent retail Channel grew compared to the prior year period.

We've been successful in adding independent distribution points in the quarter. And we believe the marketing support, we provide our dealers, including digital capabilities are helping to drive success in this channel.

At captive retail sales increase versus the same quarter last year.

we remained pleased with our acquisition of Iseman homes, which helped drive this increase, along with an increase in the average selling price, which has been driven by a retail teams execution of new products and home features resulting in a mixed shift to more multi-section homes compared to the prior year period and the sequential first quarter

Moving to the Community Channel as expected. Our community sales were down slightly in the second quarter versus the same period last year.

Based on the balancing of inventory levels in this channel that align with moderating order rates and softening consumer confidence. We expect order and production rates in the community channel to be mixed and impact near-term sales.

Sales through the Builder, developer Channel, grew in the second quarter versus the same period last year.

We added several new customers in this Channel and continue to see our pipeline grow.

We take great pride in the work, we do with Builders including providing education and support on the best practices to maximize off-site construction. I had the opportunity to see this first hand at our Builder event in Cleveland in September.

Champion financing continues to produce strong results and allows us to provide diverse financing options for our retailers and our consumers.

Our retail loan programs are enabling our teams to connect buyers with the right home and the right payment that fits their needs.

I'll now turn the call over to Lori who will discuss our quarterly financial performance in more detail.

Thanks, Tim and good morning everyone. I'll begin by reviewing our financial results. For the second quarter followed by a discussion of our balance sheet and cash flows. I will also briefly discuss our near-term expectations

During the second quarter, net sales increased 11% to 684 million compared to the same quarter last year with us factory-built housing Revenue. Also increasing 11%

The number of us homes sold increased 3% to 6,575 homes compared to 6,357 homes in the prior year period.

Us home volume during the quarter was supported by increased captive, retail sales, including the acquisition of item and homes.

The average selling price per us homes, sold increased by 7%, to 98,700 due to changes in product. Mix to more. Multi-section units and increased pricing at home. Sold through our company-owned retail sales centers.

On a sequential basis US factory-built housing Revenue decreased 2% in the second quarter compared to the first fiscal quarter.

decrease due to moderating sales volume in the Community Reach Channel, and a focus on pacing production in certain markets as we move into our slower, winter selling season,

Manufacturing capacity utilization with 60% compared to 61% in the first quarter.

On a sequential basis. The average selling price per us home sold increased, approximately 4% due to a shift in product mix.

Canadian Revenue during the quarter was 26. Million representing a 10% increase in the number of homes. Sold versus the prior year period primarily due to an increase in demand in certain markets.

The average home selling price in Canada increased 7% to 133,300, due to a price increases in a shift in product mix.

Consolidated gross profit, increased 13% to 188 million in the second quarter and our gross margin expanded to 27.5% and increase of 50 basis. Points from the prior year period.

The higher gross margin was driven by a higher percentage of total sales through our company-owned retail sales centers in the current quarter.

And the unfavorable purchase accounting impact. In the prior year related, to the increase, in the carrying value of inventory, acquired in the regional homes, acquisition that did not recur in fiscal 2026,

gross margin. Increased sequentially from our first fiscal quarter and was higher than expectations primarily due to lower than expected, material input costs, including tariff, impacts higher captive. Retail asps and favorable product mix.

Sgna and the second quarter increased 13 million over the prior year to 113 million.

The increase is primarily attributable to higher variable compensation from higher sales, and profitability closing costs related to the previously announced plant closures and the inclusion of Isom and homes.

All partially offset by a 3.7 million gain on sale of 1 of our idled manufacturing facilities.

Companies effective tax rate for the quarter was 23.6% versus an effective tax rate of 21.6% for the year ago. Period. The increase in the effective tax rate is primarily due to a projected decrease in tax credits due to the change in the new tax law.

Net income, attributable to Champion. Homes for the second quarter increased by million dollars to 58 million or earnings of a dollar 3 cents per diluted, share compared to net income of 55 million or earnings of 94 cents per diluted share during the same period last year.

The increase in EPS was driven mainly by improved operating income.

Adjusted Eva for the quarter was 83 million which is an increase of 9 million or 12%. Compared to the prior year. Adjusted ebita margin was 12.2% compared to 12% in the prior year period.

We anticipate near-term, gross margin to be in the 26% range as we manage through cautious consumer sentiment and softer demand in certain markets.

Variability and Consolidated gross margin is expected quarter to quarter, reflecting shifts and product mix and the proportion of sales, through independent sales channels and our company-owned retail sales centers.

As we navigate the market, we continue to balance sg&a, spend while continuing to drive our strategic growth, priorities, including investments in people and Technology.

As of September 27th 2025, we had 619 million of cash and cash equivalents and we generated 76 million of operating cash flows during the second quarter.

In the quarter, we leveraged our strong cash position and returned Capital to our shareholders, through 50 million, in share repurchases.

Additionally, our board recently refreshed our 150 million, share repurchases, Authority reflecting competence and our continued strong cash generation.

I'll now turn the call back to Tim for some closing remarks.

Thank you, Lori. We are pleased with our second quarter results. And how they? Reflect the champion teams unwavering focus on our customers and delivering on our strategic priorities.

In our third fiscal quarter of 2026, we continue to navigate the dynamic macro and consumer environment with agility and steadfast execution.

Year into Q3 due to the hurricanes in North Carolina and Florida, which will impact the comparable year-over-year sales.

As we assess all of these inputs, we currently anticipate our third quarter Revenue to be flat versus the third quarter last year.

This continues to be an exciting time for Champion and will remain confident. In this strategy, we're executing across our stakeholders as each directly aligns with the broader Trends and policy changes that are in support of off-site Built Homes.

Thank you, everyone for tuning in today's call and for the Champion Homes team for their continued execution. As we progress through this fiscal year, I look forward to updating you on the third quarter in early 2026.

And now, let's open the line for questions. Operator, please proceed.

Thank you. We will now begin the question and answer session to ask a question. You may press star then 1 on your telephone keypad,

If you are using a speaker-phone please pick up your handset. Before pressing the keys anytime your question has been addressed and you would like to withdraw it, please press star 2

To this time, we will pause momentarily to assemble the roster.

and the first question comes from Greg, Paul with Greg Howland Capital group,

Hey, good morning. Uh, thanks for taking the questions and, uh, congrats on the the results to Tim you, you broke up pretty hard at least on my end when you were uh, going into details about kind of community and Builder developer. So maybe you can just uh, you know, go back to some of the comments and uh explain what you were seeing in those 2, 2 markets specifically.

Yeah, as expected, uh, Community was down uh, in the quarter. Um, as the community worked through some inventory, uh, and some softening and some markets, we certainly had some Community operators up, but on the balance, it was down. Uh, and we anticipate some of that continuing, uh, in the near term on the Builder channel, that that crew. Uh, and we continue to build the pipeline and the Builder Channel, which is reflects this emergence of that channel for us as we think about, uh, reaching more consumers through a different Channel. Um, so we're pleased with the progress in the Builder Channel but those are the 2 things uh that we hit on those channels.

Oh, okay, perfect. Uh, and then, you know, the, you know, asps up. I'm just curious. Can you, can you break out, uh, the the impact from both, uh, you know, mix, uh, singles to multi but also, you know, more sales going through company-owned stores and do you have like a percent of sales going through captive, you know, versus year ago, periods or sequentially? Just some reference point for us.

Hi Greg. So um we had about 37% of our sales, go through our captive retail stores versus 34% roughly, give or take last year and um in the first quarter so that pull through through captive retail was significantly higher for us. Um, this quarter than we've been seeing

Um, as far as multi-weight and and single section homes, we don't disclose that publicly but we have seen over the last couple of quarters and increase in multi-section. Um, so sequentially, our asps, our primarily because of that. Mix

Okay? And, and any just any thoughts on sort of what you're seeing this quarter or expectations, in terms of the the the mix of units going through captive, whether that is consistent or changing at all.

Um, hard to say, what that's going to be from quarter to quarter this early, in the quarter, just given timing of closings and weather related events and so forth. But um, we do expect, you know, pricing generally to be impacted more by mix than by, you know, price actions.

Got it. Understood. Okay, I will leave it there. Thanks.

Thank you. And the next question comes in Nathaniel Moore with the CGS securities.

Thank you. Good morning. Uh, Tim good morning, Lori. Thanks for taking my questions.

Morning.

This, um, you know, backlog, despite the choppiness held up nicely. You know, and and, and reflect you including 3 or 4 percent growth in, in shipments, um, just maybe talk about the, the direction of how orders are trending thus far. Um, you know, as we look into October and into early November, um, and, you know, I guess appreciate the color on sales, uh, for this quarter flat year or year, where do you expect to kind of maintain current levels of production and and and are there maybe regions where we're, uh, pulling back a little bit. Um, you know, just as we get into the seasonally, slow period, any color? There would be helpful.

Encouragement. Um, but that is balanced against the year-over-year impact. I mentioned with the ship from Q2 to Q3 last year, uh, in terms of the production approach, um, we certainly are doing that plant by plant, uh, and we look at that region market and paste the production rates accordingly. Um, but obviously you see our backlogs were 8 weeks, which is the board. Um, and so, some markets, we have opportunities to work through that. And, and others, um, are a little bit lighter. But, ultimately, you know, we, we grew backlog sequentially, obviously it's down year-over-year, which also is what factored into our view for Q3. So on the balance, I think, you know, the teams are in a really good job being Nimble in each of those markets and executing the our Playbook accordingly.

Got it and, and piggybacking on on Greg's question crystal ball is a little bit further but what are you hearing from both sort of REITs, as well as Builder developers as, as we think about kind of turning the calendar to 26 or, or are we in kind of, wait and see mode waiting for rates to come down? Is there talk of more expansion, you know, given a little bit more, maybe stability and visibility just again, you know, I know it's very very early but what do you see in there in terms of their, you know, mid-term plans?

Yeah, I'll start with the builders um given that channel is a smaller percent. We certainly see continued growth in that channel based on the pipeline that we have. And what we're encouraged by their is we had an event in Cleveland where we brought a number of builders in, from around the country that are either in-flight projects or potential new projects and they're encouraged about the progress that they're seeing whether it's zoning support or also what they've heard from our best practice projects around the country. So I think we're going to continue to be able to have that be as strength of ours as we go into the, you know, upcoming year albeit within the total number of, uh, percent of our total business on the community side. Um, you know, I mentioned in the near term, we anticipate some moderation there and that really depends on the community operator and also where they are in their cycle. Um, so I think we're pretty balanced in terms of our thought, process with community and that as we go into next year, it really is going to be termed different factors. Ultimately the end consumer. So if we see some more strength with the end consumer, then that obviously feeds all the way.

Up through the community in the REITs. Um, but we did anticipate some of that, you know, slow down a bit in the community channel for the quarter and we saw that. And we see some of that in the near term, but I think that's more of tied, to the General market. Uh, you know, and, and they're certainly going to be opportunities for some Community operators, depending on their project flow. Um, so that's why we're taking the balanced approach relative to that channel.

Got it last For Me. Yeah. You mentioned the road to housing. Um, you know, a lot of talk lately, my investors about potential benefits um, of specifically removing the chassis requirements and you know, another potential legislation, I guess. Um, you mentioned the it's kind of moving uh, passed the Senate moving to the house. What are your thoughts in terms of where you see, you know, the most potential direct impacts? Um and how do you think about the magnitude of the potential benefit of some of this legislation? Thanks again.

Yeah, I think we look at it from a macro perspective of what doors it can open up in municipalities that previously were more restrictive.

The second piece is what can we do from a product perspective, whether that's 2 story as well as some different elevations that again, open up the market.

Um, that's all dependent on how long it takes to get to the next phase of legislative process and then ultimately through the HUD process. So we're certainly anticipating those elements and being prepared for that. Um, but I think it also speaks to a broader Trend that we're seeing around the overall off-site build category. There's more visibility for it. There's more awareness that certain get more attention at the legislative level, and I think that's, you know, from a longer term trend of positive, for the industry. And so, our strategies, the 5, that I've laid out are really geared toward being in a good position to execute on those opportunities as as they come about.

All right. I'll Circle back with any follow-ups. Thank you.

Thank you.

Thank you. And the next question comes from with Jeff.

Hey guys, uh, congrats on the another strong quarter in tough environment. Um, if we think about fiscal 3Q, Tim, should we expect asps to be fairly stable sequentially. I know mix is going to be a swing Factor, but if asps are pretty stable. Um,

And you're guiding the flat sales would imply volumes down.

Outside. So just kind of help us unpack the trends you're calling out for Q3 in particular.

Yeah, that you over your piece is really a driver from what happened last year, Q3 from Q2, uh, that's a key factor. Uh, and then the other piece is, as far as the other channels go so far, I said we're encouraging October with our retail channels, but we've got a ways to go there. Um, so at this point we're balanced in terms of that, uh, because of the community impact, it's a significant percent of our total volume, that's a key driver. Um, and then I would say in terms of the mix and pricing, what we saw this last quarter on the ASP was more mixed driven from more single sections to multi-section that movement, you know, can happen, change quarter to quarter, just based on what's happened to Consumer level and part of, it is in this last quarter, we introduced more new products that were geared toward the multi-section and so we had that initial response to those homes. So that balance is going to play out through the quarter. And I think that also speaks to the multi-section is a function of our consumer that may come from that single family or that new buyer.

And at the same time there's also a lot of affordability buyers that are focused in the market where you have single sections. So some of that is in our, you know, thesis for the quarter. So I would say those are the different factors where we played into our view, uh, for the potential flat for the quarter. Um, but ultimately, we're driving every day and and going to, you know, do the best through the quarter through those execution priorities. Um, but those are the key factors that drove into that.

Yeah, that's helpful perspective. Um, I mean you called out some of those choppiness in in the reef side already. I mean, it sounds like more of the same but I don't want to put words in your mouth. And then October trends for retail,

Pretty similar to what we've seen last quarter.

So far, we're encouraged by both the traffic and the orders, but the traffic's are leading indicators. We need to see that play out with the consumer in the upcoming months. And uh, yeah, the the choppiness and the rates, you know, we've got certain rates that are growing others that are holding back a bit. So, I, I think that that's part of where we factored in that balance.

Okay, and then appreciate, I don't have a crystal ball and uh, on the legislation front. But the road to Housing Act, certainly vary encouraging. Uh it's out the door of the Senate ready. Uh, the house obviously needs to mark up their version of the bill. Uh, but do you have any insights if there is any large differences in terms of how they're thinking about the opportunity of the Builder? They're they're tackling.

Um, any nuances with government shutdown in terms of timing? Uh, I know there's a steel chassis element which could reduce the cost by 15 grand on a list price of, I don't know, ASP and the 100s for the end consumer from a affordability standpoint.

Yeah, I think in terms of the legislative process, there is some impact obviously with the shutdown but there was a positive outcome in the Senate which I think gives a good indication plus you've seen a lot of the noise and chatter and positivity around the need for affordable housing. So I think that bodes well uh in terms of some of those other Dynamics in terms of the cost,

There's going to be some elements of that. But what we're looking at is, how does it open up the broader industry with zoning and more adoption? And then how do we think about product? And so, those are going to work through the B adders the leaders in terms of cost as you think about the to create a home that really works well with that approach, but net at the end of the day, it's going to be the price value. The consumer we're already at a good price value to the consumer Advantage so I think it's more about bringing in more customers is the main goal and then where we do have opportunities to get back to the consumer. We will. But ultimately there's going to be some other product Innovation that comes out from it. And certainly from a transport perspective, you know, you're not leaving the chassis there. So you're going to get some recycling benefits from, you know, the chassis in terms of that element. So those are all factors that I think will bode well for the opportunity if that comes together.

Okay, great call it. Jim, thank you so much.

Thank you.

Thank you. And the next question. Matthew will a with Barclays.

Good morning everyone. Thank you for taking the questions. Um, I want to stick with the road to housing. Um, you know, as this this is uh clearly progressing. Um my question is what are you doing to kind of get ahead of these potential changes whether it's the permanent chassis, or otherwise kind of, you know, what investments might you be considering uh, in your own manufacturing or Transportation, what do you think you need to be more Nimble about this if it does happen? And I'm also curious if the industry is advocating uh for any changes on the financing front as well, thank you.

The reality though is we'll have to see how long it takes to get through the legislative process. And also you have to have HUD put it in implementation. So you know there's those factors in terms of timing. Um so I said that that's kind of an approach, the balanced approach, we have getting ready for it um and we do I think we've got the time to do it the right way.

Okay, got it. Thank. Thank you for that Tim. Um, secondly, uh, the the captive retail, um, and the, the mix to um, you know, multi-width and and, you know, I guess the higher like for like prices as well, I mean, you know, it's obviously a tough consumer backdrop out there. I think you know, mix and price is probably not something you're seeing on the site built side uh right now. Um so I'm curious if if from your perspective is this more just as you mentioned earlier just you know the tough affordability out there that you know you're sort of potentially drawing buyers from site built into mAh.

Or was there kind of a, a previous opportunity in your product that was available out there and you you just kind of reached more for it. So any any additional color on that? Thank you.

Yeah, exactly. There, there really are 3 things in our captive. Retail stores we've mentioned. We didn't take price, uh, for a while and so there was an opportunity. But the larger piece that hit this last quarter was the shift to more multi-section and that relates to the new products where you introduced that certainly are are more of a fit for the buyer. That's looking for more space, more square footage, and yes, you're right that when we bring in,

New buyers to our category, some of those new buyers are in that segment, that's looking for those larger homes. But to your point on price point, the third piece is that we're already relatively less price point to site build. So even though we have some gains, we're still much more affordable given our wholesale price point, so it's those factors that are really driving them.

Great. Thanks Tim. Good luck, guys.

Thanks.

Thank you. And the next question comes from Mike D with RBC Capital markets,

Hey, thanks for taking my question. Um,

can just, uh, add

Nothing obvious, very topical. I believe there's a part of the permanent chassis discussion that would allow for a voluntary opt-in from states, so you could have a state-by-state approach.

so whether they're opting into that chassis removal, so I was wondering if you had any insight into kind of what that would look like. And and I, I guess the base. The question is, like, hypothetically. Let's say that this were to get passed by the end of this calendar year. How how long do you think it would take to get some of the things like the space on board? The

And Logistics and product. Mix. Is this a calendar 26 impact? Or should we really be thinking about? This is all great, but material impacts may be still a couple years out.

Yeah, great question. In terms of the timing, that's what I was referencing in terms of the HUD implementation. How long does that process take? And again, we're assuming that it gets through the legislative process. So I think it's fair to say there is a longer runway in that regard. What we are seeing though is as there's the communication about this more states are engaging. In terms of understanding, how can offsite build homes. Be a bigger solution for affordability. I referenced in my remarks, the example in New York and so I think we get the benefit of that more in the near term but the full benefits are going to take some time in terms of the rollout that we talked about.

And then I, I guess shifting gears back to the near term. So I think previously you were talking about 25 to 26% gross margin, being the near-term range. Now it's about 26%, um, so, you know, at the higher end of that, what what are the major moving pieces is, is it a, is it really kind of the um the cost Dynamic being less, uh, less bad than fear or just or or product mix? Can you help Buck it out? Like what, what exactly is leading you to kind of the the modestly higher near-term range there.

A large piece, especially this quarter with the 37% going through captive retail. So it's it's a mix of all 3 of those items um that we expect to continue.

Okay. And, and, um, or if I could just make a follow-up and then the sequential decline versus versus 2 Q. Um, how would you characterize the drivers of that?

Yeah, it's going to be the higher higher cost from tariffs as I talked about. And then, as well as just the slower winter selling season and the cautious consumer confidence coming into that season. You know, a couple of bolts together

Okay, great. Thank you.

Thank you, and the next question. Jesse later on with its all man and Associates.

Yeah, thanks for taking my question. If you click 1 on the tire for related impact, if you noted a about half a percent increase from tariffs that you expect to rise, do you expect it to rise to the previously, articulated 1% or do you think it'll rise a little bit higher than that? And is there any impact from Canadian Lumber? Um, tires on Canadian Lumber?

Yeah. So we expect it to be in that 1% of material costs. Um in you know, in the third quarter and going forward and yes, we've factored in the additional, 10% on the countervailing. Um anti-dumping duties in Canada.

Got it. Thank you.

On the uh, on the revenue front.

On the last call, I think that was an early August, he had 1 month of the quarter, you noted orders were tracking lower than the prior year. So just curious given the very strong results.

From a year-over-year perspective through the balance of the quarter, what changed over those subsequent couple of months relative to your expectations and how have those kind of indicators been tracking as we continue on here into early November?

Yeah, as we mentioned, uh, the community channel was consistent with what we anticipated, the, the 2 retail channels, Independence, and captive performed stronger, uh, through the quarter, and then our Builder Channel, as well, as I mentioned, uh, and so those contributed to the stronger performance, uh, and then the shift to the multi-section, uh, was another driver when you launch new products, you see what's the uptick going to be? And there was really strong response to those new products during the quarter. Uh and so I mentioned in October so far. We're encouraged by the traffic and the early orders. Uh but those need to play out to the rest of the way and we're watching those in each of our channels, uh, very closely.

Um, but we do expect the community still to moderate.

Okay, so it sounds like the consumer got a little bit stronger, as he went from July to August and September, and you're seeing a little bit of that continued. Does that sound about, right? And perhaps some of the top line, especially from a ASP perspective, the Catalyst. There was maybe some of the new multi-section products. Does that. Does that all sound, right? Or is there anything you'd you'd change from that summary? Yeah, I would say in the multisection products for sure. I think in terms of the consumer, that's certainly going to be, you know, retail location by retail location, geography by geography. And so we're watching that closely. Um, we certainly see some positive momentum and some of the markets for the new products that we're driving, but there's other markets that, you know, are not as strong. So I think that's just part of the reality of today's consumer depending on where the geography is and some of the key drivers. Um but you know, I'm encouraged by the new products that we're coming out with because we've talked a lot today about multi-section, but we also have really compelling offerings on that entry-level that single section, and those are key in those markets.

Markets where that's the primary buyer. Um, so I think, you know, your assumptions there make sense, Jesse and I think ultimately it's the balance of that playing out through the rest of the quarter, and we'll update you that in January.

Okay, thanks Tim for that. Caller last 1 for me, you touched on some perhaps Market related differences. Could you maybe expound upon which markets, have been maybe particularly strong at others. Even if you know, you could summarize by region, if that's, you know, a better characterization which have been a little bit weaker. Thank you.

Southeast, which is where our our strongest retail presence is.

1 quick follow up on that if I may what do you think drives the stronger performance? Do you think it's inherent demand from the consumers relative to the products? You have available uh maybe at retail locations in those markets? Or do you think it's supplied driven in some of your stronger markets? Have the least amount of Supply, whether that's, you know, entry level new homes or existing home Inventory, or something like that.

Do you think it's kind of demand related or Supply related where you may be seeing some Regional differences?

There's certainly is the demand element in terms of where the consumer is at, in those particular markets. Uh, and as we introduced the new products we can pull in more of those consumers. So that would be demand driven. There's also a channel element of relative to where we are across our various channels. So, if we've got a builder project, that's advancing that can drive that market for a window, and then we've talked about the community. So this the combination of those factors the channel Factor, uh, and, and those key customer buyers and then also the end consumer and the demand side

Got it. Thanks so much again.

Thank you.

Thank you. And this concludes our question and answer session. I would like to turn the conference back to Tim Larson in front of closing comments.

We appreciate everybody joining this morning and your continuation Champion Homes. We look forward to updating your progress on our next call. Thanks everybody.

Thank you. The conference is now concluded. Thank you for attending today's presentation. May now disconnect your lines