Champion Homes (SKY) 2027财年第二季度业绩电话会：订单增长17%，第三季度增长指引为8%-10%

核心要点

• 得益于住宅出货量增加、平均售价上涨以及零售业务的持续强劲表现，Champion Homes 2027财年第二季度净销售额同比增长6.2%。
• 住宅总销量增长2.2%至6,922套。其中美国市场销量增长2.3%至6,724套，美国市场平均售价上涨4.1%至约102,700美元。
• 制造订单同比增长17%。季度末制造在手订单额达到约5亿美元，环比增长18.6%，平均交付周期从9周延长至11周。
• 调整后毛利率为25.5%，调整后EBITDA为7,600万美元，对应利润率为10.5%。管理层表示，零售业务结构、产品定价以及运营效率部分抵消了原材料通胀加速带来的压力。
• 公司自营零售业务约占合并销售额的39%，高于上年同期的37%。Champion 共运营95家自营零售门店，其中包括 Homes Direct 贡献的两个月业绩。
• 展望2027财年第三季度，管理层预计营收同比增长8%至10%，调整后毛利率在24%至25%之间，调整后SG&A占净销售额的比例为16%至17%。

关键财务数据

业务与经营业绩

Champion Homes 将其增长归因于多元化的销售渠道、产品组合以及不断扩大的零售网络。自营零售占合并销售额的约39%，高于上年同期的37%。管理层表示，这一业务组合对平均售价和毛利率均起到了支撑作用。

于8月1日完成收购的 Homes Direct 的整合工作正按计划推进。Champion 正在努力将旗下产品推向所收购的网络，并应用其更大规模零售平台的运营经验。

此外，Champion 还同意收购独立零售商 Timberline Homes。后者在阿拉巴马州、密西西比州和佛罗里达州拥有9处门店，年化营收超过1亿美元。在满足惯常成交条件的前提下，管理层预计该交易将于2027财年第四季度完成交割。Timberline 此前已是 Champion 的客户，但 Champion 在该网络内的产品份额低于其典型市场份额，这意味着未来仍有进一步渗透的空间。

多数渠道的需求表现较为积极。独立零售销售持续增长，社区需求保持稳定，建筑商-开发商渠道表现依然强劲。管理层强调，由于工厂预制住宅具有价格优势且建造周期更短，市场对其关注度正与日俱增。

大部分区域的订单均实现增长，西部地区同比表现则更为平稳。包含闲置设施在内的制造产能利用率达到62%，管理层指出，许多在产工厂的产能利用率明显更高。

Champion 与 Triad 设立的融资合资企业继续为经销商库存及消费者融资提供支持。管理层表示，支持这些项目的机构资本增强了融资能力，尽管市场整体利率有所上升，但动产贷款利率仍保持了一定程度的稳定。

管理层业绩指引

对于2027财年第三季度，管理层提供了以下业绩展望：

• 在现有在手订单的支撑下，营收预计较2026财年第三季度增长8%至10%。
• 调整后毛利率预计为24%至25%，反映出投入成本通胀带来的持续压力。
• 由于公司继续投资于战略性增长举措，调整后SG&A预计占净销售额的16%至17%。

由于对 Homes Direct 的收购已于第二财季完成，因此营收指引中包含了该公司的贡献；但指引未计入预计将于第四财季交割的 Timberline Homes。

管理层预计，包括战略定价、采购举措和运营效率提升在内的应对措施效果将随时间逐步显现。然而，利润率修复的步伐将取决于投入成本环境。

风险与关注领域

本季度原材料成本通胀有所加速，未能如先前预期的那样趋于稳定。管理层特别指出钢材和石油基材料是压力集中的领域，并预计钢材成本在第三财季将继续上涨。

利率有所上升，消费者仍面临住房负担能力的制约，宏观经济不确定性依然高企。管理层表示，尽管10月份线上及展厅客流量保持平稳且第三财季可见度较好，但随着时间推移，这些因素可能会对需求产生影响。

在手订单交付周期延长至11周，接近公司公布的4至12周目标区间的上限。Champion 正结合季节性、区域需求及利润率考量，在提高产量之间权衡把握。

《ROAD法案》下更广泛的监管变革时间表仍不明确。虽然 Champion 可以根据现行 HUD 标准生产其两层的 New Horizon 住宅，但管理层表示，无底盘住宅的更广泛普及取决于联邦法规制定进程，短期内不会产生直接影响。

分析师问答要点

定价与利润率：管理层表示，美国市场平均售价的同比增长大部分来自实际定价提升，而非渠道组合变动。公司根据产品、区域以及在手订单状况有针对性地实施了定价举措，并在原材料通胀加剧时采取了追加措施。

制造住宅对比传统现场建造住宅：管理层指出，产品设计、数字化获客线索、更低的月供方案以及建筑商-开发商项目是拉动需求的关键驱动力。此外，公司还在吸引首次购买制造住宅的消费者群体。

在手订单与产能：5亿美元的在手订单规模仍处于 Champion 的目标区间内。公司正在需求更强劲的市场增加产量，但部分订单的交付时间可能会排到下一季度之后。

劳动力住房：劳动力住房单元已计入季度出货量及第三财季指引中，但在总出货量中占比较小。在区位、可用产能及利润率条件有利且不影响核心客户服务的前提下，Champion 将积极争取此类项目。

零售收购的经济效应：零售业务的SG&A开支较高，其中约一半或略多属于可变成本。管理层预计，收购将带动SG&A费用的绝对金额上升，但销售增长与更大规模应能使企业整体SG&A占比保持在指引区间内。

业绩电话会完整文字实录

完整财报电话会议逐字稿

管理层陈述

Operator

Good morning, and welcome to the Champion Homes Second Quarter Fiscal 2027 Earnings Call. My name is Brittany, and I will be coordinating your call today. [Operator Instructions] As a reminder, this conference is being recorded.

I will now turn the call over to Ellen Kaleniecki, Director of Investor Relations. Ellen, please go ahead.

Ellen Kaleniecki

Good morning. Thank you for joining us for today's conference call and review of Champion Homes results for the second quarter ended September 26, 2026. Here to review the results are Tim Larson, CEO; and Dave McKinstray, CFO. Yesterday after the market closed, Champion Homes issued its earnings release. As a reminder, the earnings release and statements made during today's call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

These statements are subject to risks and uncertainties that could cause actual results to differ materially from the company's expectations. Such risks and uncertainties include the factors set forth in the earnings release and in the company's filings with the Securities and Exchange Commission. Please note that today's remarks contain non-GAAP financial measures, which we believe can be useful in evaluating performance. Definitions and reconciliations of these measures can be found in the earnings release.

I will now turn the call over to Tim Larson.

Timothy Larson

Thank you, Ellen, and good morning, everyone. Our second quarter reflects the momentum of the Champion Homes team as we continue to deliver year-over-year organic growth, gain share and advance our strategic initiatives. The strong results include sequential and year-over-year double-digit increases in manufacturing orders. The team's execution of our strategic priorities is enabling continued outperformance versus the broader housing market, reflecting the strength of our diversified channels and product portfolio.

We continue to expand our retail channel as reflected in last month's announcement of our definitive agreement to acquire Timberline Homes. I'll discuss the acquisition in more detail shortly. First, let's turn to our second quarter results. Net sales increased 6.2% compared to the prior year, in line with our expectation for mid-single-digit growth. Total homes sold during the quarter were 6,922, a 2.2% increase compared to the prior year. Our retail strategy continues to gain momentum.

Captive retail represented approximately 39% of consolidated sales during the quarter compared to 37% in the prior year. We continue to see the benefits of our investments in retail capabilities and the customer experience. Manufacturing orders increased 17% versus the prior year quarter, resulting in a quarter-end manufacturing backlog of approximately $500 million. This represents an 18.6% sequential increase and $78 million of additional orders. Backlog lead times averaged approximately 11 weeks at quarter end compared to 9 weeks last quarter.

We strategically ramped production by location and geography, and we'll continue to manage production responsibly by balancing customer demand and seasonality. Manufacturing capacity utilization, including idled facilities, was 62% during the quarter and up from 60% in the same period last year. Turning to our strategic initiatives within our retail channel. Our integration of Homes Direct, which closed on August 1, is progressing well. The team is focused on expanding Champion products throughout the network and leveraging best practices across our retail platform.

As we've experienced with our prior retail investments, we anticipate the acquisition will be accretive to both our retail and manufacturing operations. On October 5, we announced a definitive agreement to acquire Timberline Homes, a leading independent retailer with 9 locations across Alabama, Mississippi and Florida. This planned acquisition reflects our commitment to align our capital to our strategy to drive long-term accretive value while continuing the diversified strength of our balance sheet.

Timberline's presence in the Southeast provides opportunities to leverage the strength of our existing manufacturing and retail footprint while expanding our ability to serve customers in the region. Timberline's 9 locations have annualized revenue of over $100 million. Subject to customary closing conditions, the transaction is expected to close in the fourth quarter of fiscal 2027. From a channel perspective, we achieved strong results across our portfolio, reinforcing the resiliency of our diversified go-to-market model in a dynamic environment.

Sales to our independent retail channel continued to grow, delivering solid results in the quarter. We continue to support our independent dealers through investments in lead management tools in our dealer portal, digital initiatives that engage consumers and product offerings that are a fit for today's homebuyers. Our captive retail channel delivered another quarter of growth, benefited from continued execution across the network and contribution from 2 months with Homes Direct.

Our 95 captive retail stores represent approximately 39% of consolidated sales, up from 37% in the prior year period. Community customer demand remained stable in the quarter. We continue to work closely with community operators offering a variety of price points and products that fit with their priorities. As we noted on our last call, we remain encouraged by the engagement from our large community customers. Demand in our builder-developer channel remains strong, driven by our team's focus on delivering attainable homeownership and faster construction time lines.

One recently launched development that illustrates the channel's breadth of opportunity and what's possible is the Cottonwoods project in Sterling, Colorado. This previously stalled community has been revitalized by Champion, consisting of 3-bedroom, 2.5-bath homes that are priced below comparable site-built offerings. This project reflects the growing interest and pipeline we are experiencing from builders and developers. Each project becomes a proof point and a catalyst that demonstrates how offsite-built homes improve affordable housing supply with shorter construction time lines and faster return on capital.

Turning to financing. Our joint venture with Triad continues to perform well. We remain agile on offering a range of financing solutions to our channel customers and homebuyers to ensure each can offer and purchase the right home at their target monthly payment. On the regulatory front, the encouraging momentum continues. Our team remains actively engaged with HUD as rulemaking associated with the ROAD Act continues to evolve.

We were pleased to recently host HUD Secretary Scott Turner and his team at our Chandler, Arizona facility, provided an opportunity to showcase firsthand our commitment to quality, innovation and our customer experience. We are so grateful for Secretary Turner's advocacy for affordable housing, and we appreciate his unwavering leadership as rulemaking proceeds. In September, Champion was featured in HUD's Innovative Housing Showcase on the National Mall in Washington, D.C.

We were proud to debut the industry's first 2-story HUD code home with a second floor built without a chassis. The home plan is called New Horizon. It's American's urban infill solution with a small building footprint for higher density housing. This 3-bedroom, 2.5-bath, 1,700-square-foot home is built to the HUD code. The response to our homes and operations from policymakers continues to be tremendously positive.

While the updated code implementation time lines remain undefined, these developments reinforce our belief that manufactured housing will continue to play an increasingly important role in addressing the nation's housing affordability challenges. Looking ahead, while the macroeconomic environment remains dynamic, we are encouraged by customer engagement trends, order activity and the opportunities we see across our business.

Our broad product portfolio meets customers' needs with a range of options and price points that are increasingly important as inflation and rate dynamics persist. Our strong balance sheet, disciplined capital allocation and differentiated channel platform continue to position Champion well for growth and shareholder value creation.

With that, I'll turn the call over to Dave.

David McKinstray

Thanks, Tim, and good morning, everyone. I'll begin by reviewing our second quarter financial results, followed by our balance sheet and capital allocation activities. I'll then conclude with our outlook for the third quarter of fiscal 2027. Overall, we delivered second quarter results largely in line with the expectations we provided last quarter. Revenue growth was supported by higher home shipments, increased average selling prices and continued strength in our retail operations.

Net sales increased 6.2% compared to the prior year period. In the U.S., the number of homes sold increased 2.3% compared to the second quarter of fiscal 2026 to 6,724 units. Average selling price increased 4.1% to approximately $102,700 per home in the U.S. As Tim noted, the increase in average selling price was primarily driven by a higher proportion of homes sold through our company-owned retail sales centers, which now represents approximately 39% of consolidated sales compared to 37% in the same quarter a year ago.

Captive retail continues to be a strong channel for us and allows us to leverage efficiencies and scale across our nationwide portfolio of stores. Ultimately, this strengthens our ability to deliver a better customer experience. Canadian operations remained relatively stable with homes sold increasing modestly to 198 units compared to 196 units in the prior year period. Average selling price declined slightly due to product mix.

Turning now to consolidated profitability. Adjusted gross profit was $185.6 million, representing an adjusted gross margin of 25.5%, which is in line with our expectations. We continue to experience inflationary pressures across several key material categories. You'll recall on our last call, we noted that inflation appeared to be stabilizing. However, material cost inflation accelerated during the quarter at a faster rate than we had assumed at that time.

A higher proportion of sales through our captive retail channel benefited gross margin and partially offset these pressures. Pricing execution and discipline, along with continued operational efficiencies also helped mitigate the impact. I'm proud of how our team responded and executed in this environment. Adjusted SG&A expense represents 16.3% of net sales within our expected range of 16% to 17%.

We continue to actively reallocate SG&A investment dollars towards our highest priority strategic initiatives. At the same time, we remain disciplined in managing costs across the rest of the organization, which allows us to invest in long-term growth while keeping SG&A within our targeted range. Adjusted EBITDA for the second quarter was $76 million, representing adjusted EBITDA margin of 10.5%. This was consistent with our expectations as we continue to balance growth and investment, retail expansion initiatives and disciplined expense management.

Now looking at the balance sheet. We ended the quarter with cash and cash equivalents of $702.8 million compared to $638.3 million at the end of the prior fiscal year. Operating cash flow totaled $43 million during the quarter, demonstrating the strong cash generation characteristics of the business. Together with cash on hand, this allowed us to fund the Homes Direct acquisition while also returning capital to shareowners.

During the quarter, we repurchased and retired $50 million of common stock, consistent with our commitment to deploying capital in a manner that maximizes long-term shareowner value. This brings our total share repurchases since program initiation in fiscal 2025 to $380 million. In line with our previously announced capital allocation framework, our Board also refreshed the company's share repurchase authorization back to $150 million.

Our balance sheet remains strong and provides significant flexibility to continue executing on our capital allocation priorities, investing organically, pursuing strategic acquisitions and returning capital to shareowners.

Now looking ahead to our third quarter, demand trends remain constructive across most of our channels. Manufacturing backlog remains healthy. Customer engagement continues to be positive and recent acquisition activity is progressing according to plan, which gives us good visibility into the quarter.

That said, we remain mindful of the broader macroeconomic environment. Interest rates have moved higher, consumers continue to face affordability pressures and economic uncertainty remains elevated. We are monitoring these factors closely as they could influence demand trends over time, and we will continue to manage the business with discipline as conditions evolve. On the cost side, we are seeing rising inflationary pressure across our input costs.

As noted earlier, costs did not plateau as we had anticipated and inflation accelerated through late summer and early fall, most notably steel and petroleum-based materials. We expect these pressures to persist into the third quarter with steel costs, in particular, continuing to move higher. We are taking actions to mitigate their impact through strategic pricing, sourcing initiatives and operational efficiencies.

For the third quarter, we expect revenue growth to remain strong compared to the prior year period, supported by current backlog levels. We expect revenue growth in the 8% to 10% range compared to fiscal third quarter 2026. We anticipate adjusted gross margin will remain under some pressure from input cost inflation, though we continue to expect benefits from our mitigation actions to build over time. We expect adjusted gross margin to be in the 24% to 25% range for the coming quarter.

We expect adjusted SG&A as a percentage of sales to remain within our historical operating range of 16% to 17% of net sales as we continue investing in strategic growth initiatives while maintaining disciplined cost management. In summary, Champion continues to generate strong cash flow, maintain a highly flexible balance sheet and execute on a strategy that we believe will drive sustainable long-term shareowner value.

I will now turn the call over to Tim for closing remarks.

Timothy Larson

Thank you, Dave. Our second quarter results demonstrate that despite a dynamic operating environment, Champion continues to execute its strategy with excellence and agility. The progress we've made over the last several years starts with our people, who we believe are the best in the industry. That's the sentiment I hear from our customers and is reflected in all the care for the homes and projects I mentioned earlier.

It is also reflected in our channel diversification, retail expansion, product innovation and our direct-to-consumer platform. Each of these position us favorably relative to the broader market as demonstrated by our performance in Q2. I'd like to thank the Champion team for all the progress and all the care you take for our customers in the business each day.

Operator, let's open the line and proceed with questions.

Operator

[Operator Instructions] We'll take our first question from Daniel Moore with CJS Securities.

分析师问答

Dan Moore

Congrats on a very solid quarter. You gave good detail in terms of thoughts for fiscal Q3. Maybe just high level, talk about the cadence of retail traffic and orders September into October, how we're trending into November into what is a little bit of the seasonally softer period in at least the northern part of your footprint.

Timothy Larson

Yes. Thanks, Dan. Demand held up very well through the quarter, and we saw increasing order levels across our channels as we move through the summer months into the fall. October's digital and showroom traffic was steady, and we've got good visibility into the third quarter, as we mentioned, with the strength of our backlog, and that's built into the 8% to 10% revenue guide that we shared.

Beyond that, obviously, we're watching the macroeconomic factors, the consumer resiliency. The teams navigated that very well. And so beyond this third quarter, those will be key things in our mind, but we have good visibility into the third quarter, and we shared that in the guide. So traffic is steady. We're encouraged, but we got to be nimble given the consumer environment.

Dan Moore

Makes sense. That's great. Gross margins held up really well considering the incremental pressure that we all saw here in the last multiple weeks. Not surprising, a little bit of pressure in fiscal Q3. If, big if, but if costs plateau here in Q3, would you expect to get back to that kind of 25% plus range as we think about fiscal Q4 and beyond? Just talk to your ability to get back to those levels that we saw this quarter.

David McKinstray

Dan, so I think a couple of things, and you can see it in the results that we had in Q2. We are out in the marketplace realizing price. I'm pleased with the price discipline the team has had. It's been a very strategic approach as we've done it, but you can see that in our results. We've talked about really since the beginning of this year and when we saw the inflationary pressures come that the mitigation actions lag the input cost inflation that we're seeing.

So as we've seen these new things pop up, late in this quarter, we saw oil move higher. We also started to see steel price move higher. What we expect in Q3 is further increases in steel price. So we're actively now taking those mitigation efforts. Those will build over time. So over the long run, we'll start to build back those gross margins, again, dependent on what the input cost environment looks like. But over time, we expect that to build.

The other thing that I would mention, we closed on Homes Direct and we announced Timberline. Important, we talked about this on prior calls. Over the long term, as we continue that move towards captive retail, that is a benefit to gross margin as well.

Dan Moore

Absolutely. We saw that this quarter. Last question for me, and I'll jump back. Big picture, growing in kind of low single digits organically, clearly far outpacing the traditional site-built homes. Are you seeing or feeling a little bit more of a divergence in terms of your performance as well as MH in general versus traditional site build? And where is that coming from? Is it coming from community developers, the core retail business? Just any insights into that? Maybe a couple of quarters don't make a trend, but it's certainly starting to feel like it.

Timothy Larson

Yes. We certainly saw strength across our channels, but that would include the strength we saw in our builder developer channel with the project I mentioned, but also broadly as that team continues to work for a strong portfolio of builder developer. Within those channels, I'll use the example of even our street retailers and certainly our own company stores, we are seeing that consumer that's coming for the first time to manufactured housing.

We have internal data where we can see where did they previously live and that they're coming first to off-site build, which is encouraging. And so the team has done a really good job with the interior and exterior aesthetics of our home to bring in new buyers. Combined with our digital marketing, we can bring in those consumers casting a wider net. And that's been key, obviously, given what we're seeing.

As we're doing that, we're certainly growing our core traditional HUD business. You see that in our community business, and you see it in the results versus the broader industry, as you noted. So those are encouraging drivers, and that's why we say we have to be nimble and agile to engage a broader set of consumers, and that's the strategy that we're deploying.

Operator

We'll take our next question from Mike Dahl with RBC Capital Markets.

Michael Dahl

So obviously, one of your peers talked a lot about kind of the workforce housing demand and the emerging trend of kind of stronger orders coming from the data center build-out. Wondering if you can talk to that in terms of what you saw in your backlog, how much of that is impacting your 3Q guide? And then maybe just taking a step back, your broader perspective on that and how you see SKY serving that potential demand, any difference in economics serving that, et cetera?

Timothy Larson

Yes. We are building workforce units. The team does a good job of sequencing workforce housing when it helps the existing backlog as they consider our core customers, and it's going to be favorable to margins, which is key because you got to really look at each of those projects and say, is it really favorable. Now the workforce units are within the 6,922 homes we sold in the quarter and in our guide, and it's relatively a small amount when you're selling that many homes.

And so as the team focuses on our core channels and customers and the strategies we talked about in our prepared remarks, we're looking at where does it make sense to do those projects and where do they fit in. The team did a good job of balancing that and thinking it through strategically as we look at the overall growth of the business.

Michael Dahl

Okay. Great. And then just shifting to the acquisitions. It seems like overall, the captive retail strategy is paying dividends. Homes Direct progressing well, the Timberline Homes sounds interesting. Maybe just on Timberline, you mentioned it's $100 million of annualized revenues. Can you talk about like how much business do you already sell into that platform? And how much is kind of a potential for additive sales, I guess, initially and then over time, as you've done with some of the others, just further cross-selling or penetration of your products within that network?

Timothy Larson

Yes. Timberline is a well-run, long-tenured retailer, and it's been a Champion customer. Their locations, as I mentioned, Alabama, Mississippi, Florida, align closely with our manufacturing. With our prior retail acquisitions, we migrate over time their current inventory to Champion product, which will be meaningful because in the case of Timberline, they were a customer, but they were a little less than our normal market share.

So we have that runway ahead of us. As we've said, that takes time, and you'll see that in our numbers as we go over time. But it is encouraging to have the additional strength in that region and also to support our manufacturing operations there.

Operator

We'll take our next question from Matthew Bouley with Barclays.

Elizabeth Langan

You have Elizabeth Langan on for Matt today. I just wanted to ask about the -- if there are any regional geographic trends that you would call out, if there are any areas that are performing better or worse relatively speaking?

Timothy Larson

Yes. We did not see a major change in geography from the last call. Most regions were up for us in orders, which is encouraging. In the West, which we've talked about before, was more stable on a year-over-year basis. And so what I would share broadly is the strategies we're deploying, we're getting the benefit across channels and geographies. There certainly will be nuances between quarter-to-quarter, but it's been encouraging to see the order growth across most of our regions.

Elizabeth Langan

Great. And then I had another question. You called out the New Horizon plan. That sounds pretty interesting in terms of the opportunity to have 2-story or more homes. Is there anything you would call out around at least the time line? It seems like it might be somewhat undefined at this point. But anything we should consider around that or any costs or how you're thinking about the manufacturing for that?

Timothy Larson

So the 2-story home we did, we're able to provide those because it's under the current HUD code, and the team is very innovative in putting a 2-story together. Some of you got to see it on the National Mall in Washington, D.C. We'll look to deploy that with key customers where they're maybe looking for more infill product that can be in more of an urban setting. So we're encouraged by that.

I think also you're asking about is broadly where we are in the ROAD Act, and our team is working with HUD as part of the requirements process. As we've mentioned, we don't have a definitive date yet of when the no-chassis homes are going to be available. That typically takes time to go through rulemaking and their overall process, and we're a part of that.

And so we had the opportunity with this 2-story to show what can be done and what the team is doing is anticipating where it makes sense. So we're excited about the opportunity with the no-chassis, but it's not going to be an overnight impact and increase as we've mentioned, because they've got to go through rulemaking. And so the team is doing a good job on different products and opportunities. So from a regulatory perspective, it's very encouraging. It's just we have to have it go through the process.

Operator

We'll take our next question from John Lovallo with UBS.

Nifemi Oduntan

This is Nifemi on for John. Just wanted to start off with the ASP that ticked up sequentially about like 7.5% to over $100,000, which was encouraging. I just wanted to ask like how much of that increase was like-for-like pricing in comparison to like channel mix? I think you mentioned earlier in your prepared remarks that a lot of that was also captive retail. So I just wanted to get the breakdown of that if that's possible.

David McKinstray

So starting with our pricing, it's been broad across our portfolio. Again, it's strategic. So we're not just saying, hey, list price of X. It's across our portfolio, but we take it by region, looking at backlogs and everything else, all those different factors as we decide. And that's been the large majority of what's driven the year-on-year ASP increase.

As we think about channel mix, and we talked about retail being about 39% versus 37%, that's a little bit more than we expected in our guide last quarter. That was a much smaller portion of that ASP. But important to note what that helped is that did help offset some of the further material inflation at gross margin level that we saw. So ASP, largely the price realization that we drove within the quarter.

Nifemi Oduntan

Okay. Perfect. And then, secondly, on backlogs, that increased like 18.5% sequentially. And I think you mentioned that represents about like 11 weeks. So I was just going to ask like I think last quarter, you mentioned that your target range is 4 to 12 weeks. So we're currently approaching the high end of that. So in the current demand environment, how are you thinking about balancing like backlog levels with your current capacity utilization, which I think you mentioned was 62%.

Timothy Larson

Yes. I think a couple of key things. That 62% includes our idle facilities. So the actual utilization in many plants is much higher than that. The way we look at it is from a region basis, what's the backlog in that particular market for those channels. And in case of those plants, they're increasing production. Now as we go into seasonality, we want to balance that to make sure we're having the highest margin impact.

And the other element is you asked about from a backlog perspective, the size in that range. It's within our range. Now some of those orders don't always go into the next quarter. They can go in a subsequent quarter, and that's what the team balance is to look at production and the overall efficiencies that come from that additional volume. So we feel good about the backlog and certainly, the production efficiencies are continuing to gain as we drive better utilization.

Operator

We'll take our next question from Jesse Lederman with Zelman.

Jesse Lederman

And again, it was great to see the multistory home in D.C. It's really an awesome product. Just wanted to follow up on the pricing stuff. Dave, I know last quarter, you mentioned an expectation that price would be relatively stable year-over-year. It sounds like a little bit more mix than you thought, but maybe a little bit more like-for-like increases than you thought. Maybe can you talk about some of the pricing actions you took and what you think drove your ability to take more price maybe than you thought 3 months ago?

David McKinstray

Yes. I'd say generally, Jesse, we were able to input pricing as we expected. Now as we saw more cost inflation, we did take some further mitigation efforts within the quarter. So that would have been the one change from what we talked about last time. I would say, generally speaking, we've been -- and I'll go back to this, we've been strategic about how we put pricing in.

And I think that's led to much better effectiveness, right? So where we don't think that we have the ability to price where we haven't earned price, whether it be from a product standpoint, wherever geography, then we haven't forced price in there. Rather, we've looked at product, geography backlogs, where have we earned that price, where do we think we have the ability to take it. I think that's been one of the big drivers for us to effectively put into the marketplace.

Jesse Lederman

Got it. That's helpful. Question for Tim on the workforce housing stuff. When you say you kind of want to figure out where it fits in and you're doing a little bit, I understand the capacity utilization includes the idle facilities, and it's a bit higher than the 62%, but it would seem you do have capacity across the footprint and at least some facilities to do some more of that. So just curious if there's anything limiting your ability or willingness to do more and what you think that opportunity could be?

Timothy Larson

Yes, it's a great point. So in certain markets where we have that additional capacity, we can match that up if there is the right workforce housing at the right margin. So there's a geographic piece to that and the team works through that. There are some markets that our backlogs and our utilization is really high, and we have to be strategic about those decisions because we want to make sure our core customers, our key growth strategy customers, our builder developer are served. So that's the balance that I was referring to. But we've done them before. We're doing them now, and we'll be thoughtful about it as we look at each market and each opportunity.

Jesse Lederman

Got it. That's helpful. Can you talk a little bit more about the SG&A and obviously taking on an increased burden from Timberline now and you'll take on the full burden from Homes Direct as well, kind of how that flows through and whether the costs from those acquisitions are fixed overhead, how much of those are variable? Remind us of those and give us more detail on that.

David McKinstray

Yes. So within the guide that we gave for the quarter, that would include Homes Direct as that closed here in Q2. So that's an important thing to keep in mind. As we think about retail, we've talked about retail being more SG&A heavy than the rest of the enterprise with a bulk of that SG&A, really about 50%, maybe a little bit over being on variable within retail.

So now as we look at that going forward, we're also picking up the sales. And what we've talked about is over time, the scale of our retail organization growing allows us to moderate down the total impact as a percent of sales to the enterprise, right? So we will see an uptick in absolute dollars of SG&A as it comes with these acquisitions. But we'll see the sales that come with it.

So at an enterprise level, due to the scale and those other factors, we don't -- we expect to remain in that range that I gave. And over time, as we continue to do this, we'd expect SG&A as a percent of sales to work lower, albeit with a higher dollar with a larger denominator of sales dollars.

Jesse Lederman

That's helpful, Dave. And just one housekeeping on the guide for revenue for next quarter. Does that include the acquisitions or not?

David McKinstray

Yes. So great question. It does include Homes Direct, okay, because that closed last quarter. But Timberline won't close until Q4. So that won't be in the Q3 numbers we provided.

Operator

We'll take our next question from Greg Palm with Craig-Hallum.

Greg Palm

I wanted to maybe just go back a little bit and unpack some of the recent order activity. It sounds like it was kind of broad-based, but just the divergence relative to site built. Can you just give us maybe a little bit more color? I know the industry returned to growth in the quarter, but you're seeing a notable outperformance versus site built. So I just wanted to maybe dig into that a little bit more.

Timothy Larson

So one of the things I mentioned earlier is the strength of the product innovation, the aesthetics of our interiors and exteriors and bringing in more customers. The more that we can reach out digitally to cast a wider net gets more engagement. We see that through our leads, the leads we deliver to our own stores, our dealers. And then certainly, as we work with builder developers, those projects are in markets where there's a need for affordable houses. So we're seeing the impact of that strategy.

The other element is the price point of the consumer. We're very thoughtful about what that monthly payment needs to be. And for many consumers, the payment they're looking for in a brand-new home isn't available at the site-built level. Or if it's a used home, they're going to have to put money in it to make it the way that they want it or our home, they can get brand new.

And so we continue to market that advantage and make sure that our channels are prepared for those leads and driving those. So it's really product, marketing, execution across our channels and then really building on the momentum in our builder channel to show those proof points to have more of those projects across the nation.

Greg Palm

Yes. Okay. Understood. And then just you mentioned ECN, it didn't really sound like much has changed. But I guess in light of that acquisition and now another one, Cascade, basically 2 of the larger independent manufactured home financing companies acquired. Are you seeing any sort of change whether that's availability from a cost standpoint, any sort of change in the financing landscape?

Timothy Larson

Yes, it's a great question. So we've been -- have the Triad JV for a number of years. So we've been able to work with them on programs to support both flooring for our dealers for new products as well as consumer financing programs in our retail store. The benefit of that is we can work quickly, give them feedback what works, where we need to make improvements, and the teams do a really good job working together on that.

And so the other element we've seen is that as there's been a focus on that joint venture is the private capital that's come in to be able to be the off-balance sheet support for those financing programs. The more that, that's come in, it's created more strength, which has been important because even though the rate increases have happened on the 30-year, we've seen some stability on our chattel loans.

Now they do typically lag about 200 to 300 basis points you'll see, but it's fortunate that we've got the additional options and that institutional capital behind it to continue to make those loans as affordable as possible. Hopefully, over time, that will continue to improve. But having those programs, having those JV partners in the case of Triad and ECN has been key for us in terms of our overall business.

Operator

We've reached our allotted time for questions. I will now turn the call back over to the team for closing remarks.

Timothy Larson

Yes. Thanks, everybody, for joining us this morning. We appreciate your support and look forward to updating you on our next quarter. And again, thanks for the team for all the momentum. Have a great rest of your day.

Operator

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.