Champion Homes (SKY) saw its stock price plummet 11.05% in pre-market trading on Tuesday following the release of its fourth-quarter earnings report 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 fourth-quarter adjusted earnings of $0.65 per share, falling significantly short of the $0.77 per share expected by analysts. While this represented a slight increase from $0.62 per share in the same period last year, the miss was substantial enough to disappoint investors. 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.