Nobility Home Inc (NOBH)

Financial Analysis Report

Report Date: 2025-06-30
Period Covered: Q2 2025 (Three Months Ended May 2025)

Overview:
Nobility Home Inc. reported net sales of $14.76 million in Q2 2025, up from $11.53 million in Q2 2024. Net income for the quarter was $2.29 million ($0.07 per diluted share), versus $2.03 million ($0.06 per share) in Q2 2024.

Profit Analysis:

• Gross profit rose to $4.63 million (31.4% margin) versus $4.17 million (36.2% margin) last year.
• Selling, general & administrative expenses were $1.89 million (12.8% of sales) versus $1.91 million (16.6%).
• Interest income increased to $0.30 million driven by higher market rates.
• Pretax income improved by 11.2% to $3.03 million.
• After-tax EPS rose 13.1% year-on-year.

Debt & Liquidity:

• Total current liabilities declined to $8.68 million from $10.00 million as of Nov 2024.
• Working capital remains robust at $42.97 million.
• Cash & equivalents stand at $13.03 million; certificates of deposit at $12.74 million.

Pros:

• Strong balance sheet with no significant long-term debt.
• Improved net income and cash flow generation.
• Vertical integration from manufacturing to insurance services expands revenue streams.

Cons:

• Gross margins pressured by rising material and labor costs.
• Sales impacted by higher interest rates and supply chain delays.
• Single-geography exposure in Florida sensitive to state housing cycles.

Conclusion:
Nobility Home remains financially healthy with growing profitability, ample liquidity, and disciplined cost management. However, macroeconomic headwinds—rising rates, input cost inflation, and consumer financing challenges—pose risks to sales growth and margin expansion in the near term.

Revenue by Segment (Q2 2025):

• Finished Home Sales (Company-Owned): $10,292,466 (69.7%)
• Finished Home Sales (Independent Dealer): $4,387,441 (29.7%)
• Insurance Agent Commissions: $77,430 (0.6%)

Gross Profit Analysis:

• Company-Owned Retail: 31.4% margin
• Independent Dealer Sales: 32.5% margin

Nobility Home is on a stable growth trajectory, leveraging its niche in affordable manufactured housing and ancillary insurance services. Key financial health indicators—declining liabilities, strong working capital, and rising net income—underline resilience. Opportunities include sustained demand for cost-effective housing and potential geographic expansion. Challenges encompass elevated interest rates dampening buyer demand, continued inflation in construction materials and labor, and Florida market concentration risks. Management’s focus on vertical integration and cost control will be critical to navigate headwinds and sustain long-term shareholder value.