Operational Performance and Strategic Drivers

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• Record net income growth of nearly 60% was primarily driven by the commencement of a large 380-unit workforce housing contract, contributing 113 units in the quarter.

• Net revenue per unit increased to approximately $74,900 from $68,100, reflecting a deliberate product mix shift toward higher-value, specialized units.

• Commercial sales to mobile home parks grew by about 12.5%, while dealer inventory finance sales declined 74% as dealers focused on clearing existing lot inventory.

• Management attributed improved sales momentum to a revitalized sales organization that is generating higher-quality leads and building a healthier order book.

• The company is mitigating elevated tariff rates on Chinese goods through supplier diversification, increased domestic sourcing, and selective price adjustments.

• Operational efficiency is being targeted through a new financial analysis department using AI tools to optimize bills of materials, assembly processes, and repossession pricing.

Strategic Outlook and Growth Initiatives

• Deliveries for the remaining 267 units of the current workforce housing contract are expected to continue throughout the remainder of 2026.

• Management identifies significant future potential in workforce housing tied to data center construction projects and regional oilfield demand.

• The effective tax rate is expected to move closer to the 21% statutory rate in the second half of the year following the termination of the Section 45L credit on June 30.

• Near-term production capacity is primarily constrained by the availability of trained labor, prompting new recruiting and retention programs to stabilize the workforce.

• The 21st Century ROAD to Housing Act is viewed as a long-term tailwind that could expand placement options and improve customer financing access.

Legal and Portfolio Developments

• A $48.6 million note from mobile home park borrowers matured in July without full repayment; a modification and 18-month interest-only period were established with additional collateral.

• Legacy is engaged in litigation against AmeriCasa sellers regarding alleged misrepresentations, which may lead to future adjustments in acquisition accounting.

• The company wrote off a $560,000 minority investment in Corpus AmeriCasa during the quarter.

• The Bastrop County land development project is nearing completion, with management expecting to deliver houses to the site before the end of the year despite regulatory delays.