Champion Homes (SKY) saw its stock plummet 9.80% in pre-market trading on Tuesday, as investors reacted to the company's disappointing fourth-quarter earnings report for fiscal year 2025. The sharp decline came despite the announcement of a strategic acquisition, highlighting the market's focus on the company's financial performance.

The manufactured housing company reported adjusted earnings of $0.65 per diluted share for the fourth quarter, falling 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 significantly missed market expectations. Net sales for the quarter reached $593.9 million, up from $536.4 million a year earlier, but still slightly below the analyst consensus of $595.5 million.

In a separate announcement, Champion Homes revealed plans to acquire Iseman Homes, a move aimed at expanding its retail presence. The company stated that the acquisition of Iseman Homes and its 10 sales centers across five states would strengthen Champion's distribution network in the Dakotas, Minnesota, Montana, Nebraska, and Wyoming. However, this positive development was overshadowed by the earnings miss, demonstrating investors' immediate concerns about the company's financial performance. The market's reaction suggests that investors are prioritizing current financial results over potential future growth opportunities presented by the acquisition.