Champion Homes (SKY) saw its stock plummet 11.05% on Tuesday following the release of disappointing fourth-quarter earnings for fiscal year 2025 and the announcement of a strategic acquisition. The sharp decline reflects investor concerns over the company's financial performance and future growth prospects.

The manufactured housing company reported adjusted earnings of $0.65 per share for the fourth quarter, falling significantly short of the $0.77 per share expected by analysts. While this represents a slight increase from $0.62 per share in the same quarter last year, it missed market expectations by 15.58%. Revenue for the quarter came in at $593.9 million, also missing the analyst consensus estimate of $595.5 million, despite showing a 10.72% increase year-over-year.

Adding to the market's reaction, Champion Homes simultaneously announced a definitive agreement to acquire Iseman Homes, a move aimed at strengthening its distribution network. The acquisition will add 10 sales centers across five states, potentially boosting Champion's presence in the Dakotas, Minnesota, Montana, Nebraska, and Wyoming. However, the lack of disclosed financial details and the timing of the announcement alongside disappointing earnings results may have contributed to investor uncertainty, further pressuring the stock price. As the market digests these developments, all eyes will be on Champion Homes' ability to integrate Iseman Homes successfully and improve its financial performance in the coming quarters.