Legacy Housing Corporation

Legacy Housing reported total net revenue of $66.3 million for the quarter, up 32.3% from $50.2 million a year ago. Net income was a record $23.5 million, up from $14.7 million, and diluted EPS was $0.99 versus $0.60 in the prior-year quarter. Product sales were $53.8 million, up 40%, and shipment volume increased to 718 units from 564. Net revenue per unit rose to roughly $74,900 from $68,100. Loan portfolio interest income was $11.5 million, up 5.4%. On expenses, SG&A was $6.9 million, up 21.1%, and the provision for loan loss was a $600,000 benefit versus a $1.1 million expense a year ago. The effective tax rate was 11.2% versus 17.3% a year ago. For the balance sheet, Legacy ended with $29 million in cash, generated $24.4 million of operating cash flow in the first half, and had no borrowings outstanding on its $50 million revolver. Management said deliveries under the 380-unit workforce-housing contract should continue throughout the remainder of 2026; no formal revenue or EPS guidance was provided.

Kenneth Shipley framed the quarter as evidence that Legacy is rebuilding momentum through a stronger sales organization and a healthier backlog. He highlighted the company’s workforce-housing opportunity, expanding interest from oilfield and data-center-related customers, and said the business has been “dust[ed] off” in Georgia with more selling activity there. His tone was proud and upbeat, especially in his remarks about Curt Hodgson’s legacy and the company’s long-running profitability.

Jon Langbert emphasized the quarter’s record earnings, 32.3% revenue growth, and strong cash generation. He pointed to the mix shift toward higher-value homes, the start of workforce-housing deliveries, and a favorable $600,000 provision benefit versus a $1.1 million expense last year. He also noted $29 million in cash, $24.4 million of operating cash flow in the first half, no revolver borrowings, and a $700,000 benefit from tariff refunds. He said the effective tax rate should move closer to the statutory rate in the second half now that the Section 45L credit expired June 30.

Analysts focused on how much of the backlog is workforce housing, whether the high pricing on those units should persist, whether Georgia is being ramped back up, and when Bastrop County land could begin delivering homes. Management said backlog is broader than workforce housing, Georgia has been reinvigorated with added sales staff and new business, and Bastrop is close but still held up by permitting and infrastructure steps such as the DOT driveway and final plan filing. On pricing, management said the workforce-housing units are larger and include nonstandard features, and some customers pay for speed of delivery. In response to a question about costs and AI, Langbert said the company has started using AI tools in finance, quoting, underwriting, and repo pricing.