Legacy Housing Corporation

What they do

Legacy builds custom manufactured homes and 'Tiny Houses' ranging from roughly 395 to 2,667 square feet and priced at retail from about $47,000 to $200,000. Homes are built at three HUD-regulated factories in the United States and sold through about 80 independent retail locations, 14 company-owned stores (13 Heritage Housing and one AmeriCasa), and directly to manufactured home community owners. The company also provides inventory financing to independent retailers, consumer financing to homebuyers, and financing to community owners.

Revenue drivers

• Direct sales to manufactured housing communities — Approximately 35% of 2025 product sales went directly to owners of manufactured housing communities, down from 45% in 2024.
• Independent retail distributors — Approximately 44% of 2025 product sales were attributable to independent retail distributors, up from 38% in 2024; no independent retailer accounted for 10% or more of product sales in 2025 or 2024.
• Company-owned retail locations — Approximately 21% of 2025 product sales came from the 14 company-owned stores, up from 17% in 2024.
• Workforce housing orders — A large workforce-housing order contributed approximately $25.5 million of product sales in the quarter ended June 30, 2026, following a $7.1 million non-refundable advance deposit received in the first quarter.

Recent performance

For the three months ended June 30, 2026, total net revenue was $66.3 million, up 32.3% year over year, and net income was $23.5 million, or $0.99 per diluted share, versus $14.7 million, or $0.60 per diluted share, a year earlier. The increase was driven primarily by a 40.0% increase in product sales from the workforce housing order, partially offset by lower inventory finance sales. For the six months ended June 30, 2026, total net revenue was $100.7 million and net income was $34.4 million, or $1.44 per diluted share. First quarter 2026 net revenue was $34.4 million (down 3.7% year over year) with net income of $10.9 million and diluted EPS of $0.46. Annual revenue has declined from $222.1 million in 2022 to $116.9 million in 2025, with 2025 net income of $41.8 million and diluted EPS of $1.74.

Strategy

Management highlights its vertical integration across manufacturing, distribution and financing as a competitive advantage that allows it to capture sales that might not occur otherwise. The company is pursuing workforce housing demand, evidenced by the large order that began delivering in the second quarter of 2026, and management calls recruiting and retaining trained labor its principal near-term constraint on growth. It authorized a $10.0 million share repurchase program in February 2026 and repurchased 30,740 shares for about $573 thousand in the first quarter. The company ended the second quarter of 2026 with $29.0 million of cash and no borrowings outstanding under its $50.0 million revolving credit facility.

Risks

• Customer concentration in large orders — A single workforce housing order contributed approximately $25.5 million of product sales in the second quarter of 2026, so delivery timing or cancellation of such orders could swing results materially.
• Geographic concentration in Texas — Texas accounted for 52% of 2025 product sales and 65% of homes sold in the first half of 2026, exposing the company to regional economic and housing conditions.
• Labor availability — Management states that its ability to recruit and retain trained labor is the principal near-term constraint on growth.
• Tariff and cost uncertainty — Gross margin in the second quarter of 2026 benefited from approximately $0.7 million of tariff refunds, but management notes uncertainty regarding future tariff levels remains.

Outlook

Management says it continues to see growing demand for workforce housing across its markets and views labor recruiting and retention as the main near-term constraint on growth. The company expects to continue delivering on the large workforce housing order received in the first quarter of 2026 over coming quarters. It ended the second quarter with $29.0 million of cash and an undrawn $50.0 million revolver.