Legacy Housing (NASDAQ:LEGH) reported lower revenue and earnings for the fourth quarter and full year 2025, as demand from mobile home park operators slowed and the company absorbed higher costs and a larger loan loss provision. Management emphasized that affordability tailwinds for manufactured housing remain intact, but said tariffs, labor inefficiency, and limited available home sites in major metros continue to pressure the industry.
Full-year 2025 results
Chief Financial Officer Jon Langbert said total net revenue for the year ended Dec. 31, 2025 was $164.6 million, down from $184.2 million in 2024, a decrease of 10.7%.
The decline in product sales was driven primarily by lower commercial sales to mobile home park customers, which decreased $16.8 million, or 30%, as park operators reduced orders amid “capital caution” following cost inflation, high occupancy levels, and tighter financing conditions. Langbert said this was partially offset by higher direct sales (up $2.3 million, or 25%) and retail store sales (up $2.5 million, or 12.7%) as the company focused on expanding its company-owned store network.
Loan interest income increased to $43.7 million, up 6.1% from 2024, driven by growth in the consumer loan portfolio. The consumer loan portfolio grew $24.7 million to $203.6 million at year-end, up 14%. The mobile home park note portfolio declined $9.1 million to $199.1 million, which Langbert said was mainly due to early payoffs, while dealer inventory finance loans decreased to $28.4 million.
Other revenue declined $9.7 million (71%), primarily due to an $8.8 million decrease in land sales and a $1 million decrease in forfeited deposits; management described these as non-recurring items that were significant in 2024.
Margins, expenses, and profitability
Cost of product sales decreased 5.8% on lower volume, but Langbert said the benefit was partly offset by raw material and tariff impacts. Product gross margin was 27.5% for 2025, down from 30.4% in 2024.
SG&A expenses increased $7.3 million, or 33%, with the largest driver a $4.5 million increase in the loan loss provision, reflecting larger loan portfolios and a more conservative reserving approach. Management also cited higher legal costs (up $1 million) and warranty costs (up about $0.5 million).
Other non-operating income decreased by $9.3 million versus 2024, which Langbert said was largely due to a significant one-time gain in 2024 related to a loan settlement agreement and a property sale in Georgia.
Net income for 2025 was $41.8 million versus $61.6 million in 2024, a decline of 32.2%. Net income margin was 25.4%, down from 33.5%. Diluted earnings per share were $0.74 compared to $2.48 in 2024.
Balance sheet, cash flow, and credit quality
Legacy ended 2025 with $8.5 million in cash, up from $1.1 million at the end of 2024. Langbert said the company’s $50 million revolving credit facility had a near-zero balance at year-end, with $1.2 million drawn related to an AmeriCasa line of credit that was assumed and later paid off in January 2026.
Stockholders’ equity was $528.6 million, and book value per share was $22.20 at year-end, up from $20.45 a year earlier. The company generated an 8.2% return on shareholders’ equity for 2025 and reported operating cash flow of $37.2 million.
On credit quality, Langbert said that as of Dec. 31, 2025, 98.4% of mobile home park loans and 97.4% of consumer loans were current or fewer than 30 days past due. Hodgson said the company is seeing “modestly higher charge-off activity” and increased loan loss reserves accordingly. He also noted an expected difference between taxable income and GAAP income due to the non-deductibility of loan loss provisions.
Fourth quarter drivers and strategic updates
Fourth quarter net income was approximately $8.2 million, down from $14.5 million in Q4 2024. Net revenue decreased $16 million, or 29%, with Langbert pointing to a $12.5 million revenue decline tied to a non-recurring sale in Q4 2024 of a mobile home park project (including land and homes previously acquired in foreclosure).
SG&A rose by $3.5 million, or 60%, compared with the prior-year quarter due to AmeriCasa transaction costs and increased loan loss provisions following updates to loan loss policy. Langbert also cited Q4 2024 one-time non-operating gains and other income that reduced the year-over-year comparison by $2.4 million in before-tax income.
Management highlighted several operational themes and initiatives discussed on the call:
- Workforce housing/data center demand: Hodgson described workforce housing tied to data center buildouts as a “bright spot,” saying the company had already taken orders for over 500 houses in that category early in 2026. He said many of those orders may not be recognized as revenue until shipment, and noted finished goods inventory was high because customers placed orders ahead of when they ultimately needed delivery.
- Retail footprint: Hodgson said the company had 14 company-owned Heritage and Tiny House retail locations and that retail store sales were higher year-over-year.
- Manufacturing capacity and labor: Hodgson said labor efficiency has declined from pre-COVID levels and suggested that practical capacity at factories may be lower than historical norms. He contrasted weakness at the Georgia operation with stronger conditions in Texas, where he said the two Texas facilities had been running “pretty much at capacity” since the start of the year.
- Share repurchases: The company repurchased 346,000 shares in 2025. Hodgson said the prior repurchase program expired in October, but the board initiated a new $10 million buyback program and will evaluate ongoing repurchases, particularly if shares trade at or below book value.
- Austin development project: Hodgson reiterated expectations that homes could be placed with consumers in calendar year 2026, though he cautioned it could be in the third or fourth quarter. In Q&A, he detailed remaining steps including wastewater treatment capacity, road connections, and other regulatory items.
- AmeriCasa acquisition: Hodgson said Legacy completed a “small tuck-in” acquisition of AmeriCasa in November that added a consumer loan portfolio, a retail location, and technology. In Q&A, he said the leadership change anticipated from the deal “has not come to pass,” but added the company is still deploying the software and retained some managers and other staff.
Looking ahead, Hodgson said he expects 2026 to be better, citing workforce housing demand and the company’s conservative balance sheet, while acknowledging ongoing challenges in the broader manufactured housing market, including limited locations to place homes and higher development costs for new communities.
About Legacy Housing (NASDAQ:LEGH)
Legacy Housing Corp. designs, builds and markets factory-built homes, focusing on both single-section and multi-section manufactured housing products. The company offers a range of floor plans and customization options, including energy-efficient features and accessible design elements. Its core business activities encompass in-house design, procurement of building materials, plant-based construction and nationwide distribution through an independent network of retail partners.
Founded in 2009 and headquartered in Dallas, Texas, Legacy Housing operates in key regions across the southeastern and southwestern United States.
