10-Q · June 16, 2026
Nobility Homes reported a revenue decline to $12.41 million in Q2 2026 from $14.76 million in Q2 2025, with EPS reducing to $0.56 from $0.70 year-over-year. Challenges such as economic uncertainty and rising interest…
Earnings analysis · 10-Q
NOBH earnings analysis
Filed September 15, 2026 · Our reading of the company's report
The latest report
Nobility Homes delivered modest Q3 improvement, with revenue up 1.0% to $12.1 million and EPS up 7.1% to $0.60, supported by lower SG&A and other income. However, gross margin compressed to 29% from 32%, and nine-month…
Read full summary
Nobility Homes delivered modest Q3 improvement, with revenue up 1.0% to $12.1 million and EPS up 7.1% to $0.60, supported by lower SG&A and other income. However, gross margin compressed to 29% from 32%, and nine-month revenue, gross profit, operating income and EPS declined year over year as retail volumes fell and lower-margin wholesale sales increased. Liquidity remains strong, with $13.4 million of cash, $11.7 million of certificates of deposit, no debt and $6.6 million of nine-month free cash flow, but management expects operating challenges to persist through fiscal 2026 and 2027.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.6
What stood out
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Q3 Revenue and EPS Improved
Q3 net sales increased to $12,138,230 from $12,021,194, a 1.0% year-over-year increase. Basic and diluted EPS rose to $0.60 from $0.56, a 7.1% increase.
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SG&A Cost Reduction
Selling, general and administrative expense declined to $1,384,120 from $1,670,585, while SG&A as a percentage of sales improved to 11% from 14%.
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Strong Cash Generation
Operating cash flow increased to $6,803,905 for the first nine months from $4,388,067, and free cash flow was $6,602,038 after $201,867 of capital expenditures.
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Debt-Free Balance Sheet
The company reported $13,417,420 of cash and cash equivalents, $11,697,609 of certificates of deposit and no debt or line of credit borrowings as of August 1, 2026.
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Wholesale Channel Growth
Wholesale sales to independent dealers and manufactured-home parks increased to $4,080,046 in Q3 from $2,171,133, while nine-month volume rose to 184 homes from 129 homes.
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Shareholder Capital Returns
The company repurchased 100,000 shares from its President for $2,970,000 and paid a $1.50-per-share cash dividend totaling $4,730,497 during the first nine months.
What to watch
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Nine-Month Sales and Profit Decline
Nine-month net sales declined to $35,051,636 from $39,020,273, while operating income fell to $6,032,806 from $7,213,955. Management attributed the sales decline partly to retail homes sold falling to 137 from 195.
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Retail Mix Pressures Margins
Gross profit declined to $3,491,989 from $3,848,186 in Q3, and gross margin fell to 29% from 32%; nine-month gross profit was $10,319,292 versus $12,450,387. Management cited the shift toward lower-margin wholesale sales.
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Demand and Supply-Chain Headwinds
Management said higher interest rates, delayed purchasing decisions, supplier delays, back orders, tariffs, labor shortages and inflation in building products are continuing to affect demand and production, and expects these challenges through fiscal 2026 and 2027 and potentially beyond.
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Ancillary Income Declines
Insurance agent commission revenue declined to $56,741 in Q3 from $101,684 and to $204,393 for nine months from $237,487, while Majestic 21 earnings fell to $57,665 from $72,893 for nine months.
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Inventory and Absorption Risk
Inventory remained elevated at $19,622,587 as of August 1, 2026, including $16,237,801 of Prestige new-home inventory; pre-owned homes increased to $1,732,409 from $1,471,432.
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Uninsured Property Exposure
The company does not maintain casualty insurance on some property, including retail-center inventory and plant machinery and equipment, exposing it to potentially uninsured losses.
Management's outlook
No quantitative financial guidance was provided. Management expects higher interest rates, supply-chain delays, back orders, price increases, tariffs, labor shortages and inflationary material costs to continue throughout fiscal 2026 and 2027, and potentially beyond.
Earlier filings 4
10-Q · March 17, 2026
Nobility Homes reported a decline in revenue and net income for Q1 2026 compared to Q1 2025, primarily driven by lower retail home sales amidst a challenging economic environment. The company attributes decreased…
10-K · January 30, 2026
Nobility Homes, Inc. showed a modest revenue growth of 1% to $52,667,970 in fiscal year 2025, though net income decreased slightly to $8,446,383. Despite challenges from increased interest rates and supply chain delays,…
10-Q · September 15, 2025
Nobility Homes, Inc. reported a decline in both revenue and net income for Q3 2025 compared to the prior year, attributed to lower retail home sales and challenges in the economic environment. Despite these headwinds,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.