Legacy Housing (LEGH) investor relations material

Executive summary

• Net revenue for Q1 2026 was $34.4 million, down 3.7% year-over-year, while net income rose 6.3% to $10.9 million and diluted EPS increased 12% to $0.46, reflecting operational resilience amid macro headwinds.

• Product sales declined 11.3% with 312 units shipped, but retail and direct sales surged, offsetting declines in inventory finance sales and reflecting a strategic shift toward end consumers.

• Loan portfolio interest income grew 6.2% to $11.3 million, with strong credit quality across portfolios.

• SG&A expenses fell 8.3% due to lower payroll, benefits, and legal costs, with further reductions expected.

• Ended the quarter with $14.1 million in cash, minimal debt, and an undrawn $50 million revolver, supporting strong liquidity.

Financial highlights

• Operating income rose 6.9% to $12.4 million, with total operating expenses down 8.7%.

• Retail store sales nearly doubled, up 81% to $6.1 million; direct sales up 80% to $2.7 million; commercial sales to parks up 12% to $7.6 million.

• Cost of product sales decreased 13.1% to $14.9 million, in line with lower volumes.

• Other revenue more than doubled to $1.5 million, mainly due to increased land sales.

• Share repurchases totaled $600,000 for 31,000 shares, with $9.4 million remaining under the authorization.

Outlook and guidance

• Expectation to deliver 200-300 workforce housing units in Q2, with most of the 600-unit order recognized in 2026 and a $7.1 million advance deposit received.

• Anticipates strong performance in the next three quarters, driven by data center and oil field demand in Texas.

• Gross margins may remain pressured by elevated input costs and tariffs, but mitigation efforts are underway.

• Effective tax rate expected to rise after Section 45L credit expires in June.

• Sufficient liquidity is anticipated for at least the next 12–18 months.