Industrial and Commercial segment NOI decreased 15% due to tenant evictions, lease expirations, and 50% vacancy in the Perryman warehouse.
Mining and Royalty segment revenues and NOI increased 12% and 21%, respectively, compared to Q2 2024.
Multifamily segment NOI increased slightly, with 94% apartment occupancy and 83% retail occupancy; The Verge contributed $733,000 in NOI this quarter.
Net income for Q2 2025 decreased 72% to $600,000 ($0.03 per share) compared to $2 million ($0.11 per share) in Q2 2024, mainly due to legal expenses and lower interest income.
Pro rata NOI increased 5% year-over-year to $9.7 million, driven by multifamily and mining royalty segments.
Capital expenditures were $9 million, primarily for plant modernizations and capacity expansions.
Cash from operating activities was $55.5 million; cash and restricted cash decreased by $6.9 million to $368.4 million.
Factory-Built Housing segment revenue was $535.7 million, up 17% year-over-year, driven by a 14.7% increase in homes sold and a 1.9% increase in average revenue per home.
Financial Services segment revenue was $21.2 million, up 8.2% year-over-year, driven by higher insurance premium rates and improved underwriting.
Gross margin improved to 23.3% from 21.7% year-over-year, with Financial Services gross margin increasing significantly from negative 0.6% to 40.9%.
Net income was $51.6 million, up from $34.4 million last year, with diluted EPS of $6.42 versus $4.11 in the prior year quarter.
Operating profit increased about 50% compared to both last quarter and a year ago.
Revenue for Q1 fiscal 2026 was $556.9 million, up 16.6% year-over-year and 9.5% compared to the prior year quarter.
Selling, general and administrative expenses increased to $69.1 million or 12.4% of net revenue, mainly due to higher bonuses and commissions.
Stock repurchases totaled $50 million this quarter, with 16.6% of shares repurchased since fiscal 2021.
Dafinchi