[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Green Brick Partners achieved record Q2 2025 new home deliveries and net orders, maintaining a strong balance sheet despite lower net income and gross margin due to increased incentives and reduced average sales prices Q2 2025 Key Performance Indicators | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | New Homes Delivered | 1,042 | +5.6% | | Home Closings Revenue | $547 million | ~0% | | Homebuilding Gross Margin | 30.4% | -410 bps | | Diluted EPS | $1.85 | -20.3% | | Net New Home Orders | 908 | +6.2% | | Debt to Total Capital | 14.4% | N/A | - CEO Jim Brickman highlighted the strength of the company's land acquisition and self-development strategy as a key factor in its resilient performance amidst a challenging housing market[2](index=2&type=chunk) - Despite a 410 bps year-over-year decrease, the homebuilding gross margin of **30.4%** remained the highest in the public homebuilding industry and has exceeded **30%** for nine consecutive quarters[2](index=2&type=chunk) - Operationally, the company reduced average construction cycle times to under **5 months**, with Trophy brand homes averaging just **3.5 months**[2](index=2&type=chunk) - The company continued its capital return program, repurchasing approximately **$44 million** of common stock in Q2, bringing the year-to-date total to **$60 million**[2](index=2&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) [Second Quarter 2025 Performance](index=1&type=section&id=Second%20Quarter%202025%20Performance) In Q2 2025, total revenues decreased to **$549.1 million** and net income fell to **$81.9 million**, resulting in a **20.3%** diluted EPS decline, primarily due to a **5.3%** lower average sales price and a **410 basis point** contraction in homebuilding gross margin Q2 Financial Performance (YoY Comparison) | (Dollars in thousands, except per share) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues ($ thousands) | $549,147 | $560,631 | (2.0)% | | Total Gross Profit ($ thousands) | $167,514 | $189,666 | (11.7)% | | Net Income Attributable to GRBK ($ thousands) | $81,948 | $105,358 | (22.2)% | | Diluted EPS | $1.85 | $2.32 | (20.3)% | | Average Sales Price of Homes Delivered ($ thousands) | $525.1 | $554.2 | (5.3)% | | Homebuilding Gross Margin % | 30.4% | 34.5% | -410 bps | [Year-to-Date 2025 Performance](index=3&type=section&id=Year-to-Date%202025%20Performance) For the six months ended June 30, 2025, total revenues increased to **$1.05 billion**, but net income decreased by **16.8%** to **$157.0 million**, with diluted EPS falling **15.0%** due to a **320 basis point** decline in homebuilding gross margin Six Months Financial Performance (YoY Comparison) | (Dollars in thousands, except per share) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues ($ thousands) | $1,046,768 | $1,007,969 | 3.8% | | Total Gross Profit ($ thousands) | $323,299 | $337,923 | (4.3)% | | Net Income Attributable to GRBK ($ thousands) | $157,007 | $188,659 | (16.8)% | | Diluted EPS | $3.52 | $4.14 | (15.0)% | | New Homes Delivered | 1,952 | 1,808 | 8.0% | | Homebuilding Gross Margin % | 30.8% | 34.0% | -320 bps | [Financial Statements](index=4&type=section&id=Financial%20Statements) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) In Q2 2025, residential units revenue was **$547.1 million**, while land and lots revenue significantly declined to **$2.0 million**, resulting in total revenues of **$549.1 million** and net income of **$81.9 million** Consolidated Income Statement Summary (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2025** | | **Total Revenues ($ thousands)** | **$549,147** | **$1,046,768** | | Residential units revenue ($ thousands) | $547,109 | $1,042,426 | | Land and lots revenue ($ thousands) | $2,038 | $4,342 | | **Total Gross Profit ($ thousands)** | **$167,514** | **$323,299** | | Income Before Income Taxes ($ thousands) | $112,288 | $218,436 | | **Net Income Attributable to GRBK ($ thousands)** | **$81,948** | **$157,007** | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Green Brick's total assets increased to **$2.32 billion**, driven by inventory growth, while total liabilities decreased to **$520.4 million**, and stockholders' equity grew to **$1.73 billion** Balance Sheet Summary (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents ($ thousands) | $112,459 | $141,543 | | Total inventory ($ thousands) | $1,976,911 | $1,937,732 | | **Total Assets ($ thousands)** | **$2,315,269** | **$2,249,994** | | Total Liabilities ($ thousands) | $520,367 | $551,831 | | Total Green Brick Partners, Inc. stockholders' equity ($ thousands) | $1,725,373 | $1,625,415 | | **Total Liabilities and Equity ($ thousands)** | **$2,315,269** | **$2,249,994** | [Supplemental Information & Operational Metrics](index=6&type=section&id=Supplemental%20Information%20%26%20Operational%20Metrics) [Revenue and Deliveries Breakdown](index=6&type=section&id=Revenue%20and%20Deliveries%20Breakdown) In Q2 2025, home closings revenue remained stable at **$547.1 million** due to a **5.6%** increase in new homes delivered offset by a **5.3%** decrease in average sales price, while land and lots revenue declined **84.9%** to **$2.0 million** Q2 2025 Residential Units & Deliveries (YoY) | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | Change | | :--- | :--- | :--- | :--- | | Home closings revenue | $547,109 | $546,948 | —% | | New homes delivered | 1,042 | 987 | 5.6% | | Average sales price of homes delivered | $525.1 | $554.2 | (5.3)% | Q2 2025 Land and Lots Revenue (YoY) | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | Change | | :--- | :--- | :--- | :--- | | Land and lots revenue | $2,038 | $13,493 | (84.9)% | | Lots closed | 18 | 8 | 125.0% | [New Home Orders and Backlog](index=6&type=section&id=New%20Home%20Orders%20and%20Backlog) The company achieved a record **908** net new home orders in Q2 2025, a **6.2%** increase, despite a **6.4%** drop in average selling price and a slight rise in cancellation rate to **9.9%**, while backlog units and revenue decreased by **17.9%** and **20.6%** respectively Q2 2025 New Home Orders (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net new home orders | 908 | 855 | 6.2% | | Avg. selling price of new orders ($ thousands) | $516.7 | $551.8 | (6.4)% | | Cancellation rate | 9.9% | 9.2% | +0.7% | Backlog as of June 30, 2025 (YoY) | Metric | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Backlog units | 730 | 889 | (17.9)% | | Backlog revenue ($ thousands) | $516,183 | $650,349 | (20.6)% | | Avg. sales price of backlog ($ thousands) | $707.1 | $731.6 | (3.3)% | [Land Position](index=7&type=section&id=Land%20Position) As of June 30, 2025, Green Brick's total lots owned and controlled increased to **40,200**, with **98.4%** being self-developed and a significant concentration in the Central region, highlighting the company's land development focus Total Lots Owned and Controlled | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total lots owned | 35,468 | 32,716 | | Total lots controlled | 4,732 | 5,115 | | **Total lots owned and controlled** | **40,200** | **37,831** | - The company's land strategy emphasizes self-development, with self-developed lots accounting for **98.4%** of total lots owned and controlled as of June 30, 2025[18](index=18&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) Green Brick uses non-GAAP measures like adjusted homebuilding gross margin (**30.9%**) and net debt to total capitalization (**9.4%**) to provide investors with a clearer view of its operational performance and strong financial structure - The company presents non-GAAP measures because it believes they are useful for management and investors in evaluating operating performance and financing structure, and facilitate comparison with industry peers[19](index=19&type=chunk) Q2 2025 Adjusted Homebuilding Gross Margin Reconciliation | (in thousands) | Amount | Percentage | | :--- | :--- | :--- | | Homebuilding gross margin (GAAP) ($ thousands) | $166,453 | 30.4% | | Add: Capitalized interest ($ thousands) | $2,605 | N/A | | **Adjusted homebuilding gross margin (Non-GAAP) ($ thousands)** | **$169,058** | **30.9%** | Net Debt to Total Capitalization Reconciliation (as of June 30, 2025) | (in thousands) | Amount | Ratio | | :--- | :--- | :--- | | Total debt, net ($ thousands) | $291,335 | | | Less: Cash and cash equivalents ($ thousands) | ($112,459) | | | **Net debt ($ thousands)** | **$178,876** | | | Total Green Brick Partners, Inc. stockholders' equity ($ thousands) | $1,725,373 | | | **Net capitalization ($ thousands)** | **$1,904,249** | | | Debt to total capitalization ratio (GAAP) | | 14.4% | | **Net debt to total capitalization ratio (Non-GAAP)** | | **9.4%** | [Corporate Information and Outlook](index=3&type=section&id=Corporate%20Information%20and%20Outlook) Green Brick Partners, a diversified homebuilder in Texas, Georgia, and Florida, will hold an earnings call on July 31, 2025, and anticipates **$300 million** in 2025 land development spending, while navigating market risks including interest rates, inflation, and supply chain costs - Green Brick is a diversified homebuilder with operations in Texas, Georgia, and Florida through five subsidiary builders and two joint ventures[22](index=22&type=chunk) - An earnings conference call to discuss Q2 2025 results is scheduled for **12:00 p.m. Eastern Time** on Thursday, July 31, 2025[6](index=6&type=chunk) - The company expects full-year 2025 land development spending to be approximately **$300 million**[2](index=2&type=chunk) - Forward-looking statements highlight potential risks including macroeconomic conditions (interest rates, inflation), supply chain costs, labor shortages, and the ability to acquire land at favorable prices[24](index=24&type=chunk)

Archer Aviation - Archer Aviation is focused on developing electric takeoff and landing vehicles (eVTOL) and aims to establish urban air taxi networks globally, despite currently having no measurable revenue [1][3] - The company is selling its Midnight eVTOL for $5 million, which raises concerns about the long payback period compared to competitors like Uber Technologies [2] - Archer's eVTOL can only carry four passengers, making its capacity comparable to conventional ride-sharing vehicles, which may limit its efficiency [3] - The current market capitalization of Archer Aviation stands at $5.5 billion, reflecting investor optimism despite the challenges faced [3] Innodata - Innodata is a small-cap stock benefiting from the artificial intelligence (AI) boom, specializing in data labeling and engineering for AI model training [6] - The company reported a 120% increase in revenue to $58.3 million in the first quarter, with adjusted EBITDA rising from $3.8 million to $12.7 million, driven by onboarding major new customers [7] - Innodata has a market cap of $1.6 billion and would need to increase by over 200% to match Archer's market cap, but it is well-positioned for growth [8] Green Brick Partners - Green Brick Partners has shown resilience in a challenging housing market, reporting an 11% revenue growth to $497.6 million in the first quarter, with a gross margin of 31.2% and a net income of $75 million [9] - The company differentiates itself by owning and developing lots in high-growth markets like Dallas and Atlanta, maintaining a low debt-to-capital ratio [10] - Green Brick's stock has increased over 400% in the last five years and trades at a price-to-earnings ratio of 7, indicating potential for further growth as housing demand is expected to improve [11][12]

Group 1 - Triba Research aims to identify high-quality businesses that can deliver sustainable, double-digit returns over the long term [1] - The firm's strategy focuses on companies with strong competitive advantages, operating in growing markets, maintaining low debt levels, and led by skilled management [1] - The firm is led by economist Tomas Riba, who has two decades of investment experience and seeks to generate alpha through a concentrated portfolio of 10 to 15 carefully selected securities [1]

Financial Data and Key Metrics Changes - Home closings revenue for Q1 2025 increased 11.8% year over year to $495 million, a record for any first quarter in company history [6][17] - Net income attributable to the company decreased 9.9% year over year to $75 million, with diluted EPS down 8.2% to $1.67 per share [7][19] - Book value grew 25% year over year to $37.09 per share [7] - Net new home orders increased 3.3% year over year to 1,106, setting a new company record [19] - Homebuilding gross margin was 31.2%, down 20 basis points year over year, but still the highest among public homebuilding peers [18] Business Line Data and Key Metrics Changes - Trophy brand represented 54% of total deliveries and 40% of total home closings revenue in Q1 2025 [18] - Average sales price (ASP) for new orders decreased 6.3% to $537,000, with Trophy representing a larger share of units [20] - Total homes under construction increased 2.8% to 2,296, with a decrease in the percentage of Beck homes under construction [21] Market Data and Key Metrics Changes - Approximately 80% of home closings revenue was generated from infill and infill adjacent submarkets [10] - The company maintained a low cancellation rate of 6.1%, the lowest among public homebuilding peers [21] - The average FICO score for homebuyers using the company's mortgage services was 741, with a debt-to-income ratio of 40% [29] Company Strategy and Development Direction - The company focuses on self-development and strategic land acquisition to avoid high costs associated with land banking [6][10] - The company plans to invest approximately $300 million in land development during the year, with a healthy land pipeline [30] - The company aims to expand its Trophy brand in Houston, the largest home building market in the U.S. [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainties impacting the market but expressed confidence in the company's core strengths to navigate challenges [8][15] - The company anticipates continued demand driven by household formation among millennials and Gen Z, despite a housing market undersupplied by an estimated 4 to 7 million units [15] - Management remains optimistic about long-term market fundamentals and the company's ability to outperform peers [34] Other Important Information - The company repurchased $38.3 million of its stock through April 2025, with a board authorization of $100 million for share buybacks [14] - The total debt to capital ratio stood at 14.5%, with net debt to total capital at 9.8%, indicating a strong balance sheet [22] Q&A Session Summary Question: What has been observed in April regarding tariffs and sales incentives? - Management noted minimal impact from tariffs so far, viewing them as a wildcard in the industry [37] - Sales incentives for the Trophy brand were in line with overall company incentives, with variations based on market location [39] Question: Are there signs of changes in the land market? - Management indicated some fluidity in the land market, with public builders walking away from less desirable lots [42] - The company is receiving offers for lots that are difficult to move in the current market [43] Question: How does the company decide on capital allocation between buybacks and land investments? - Management explained that stock repurchases can be lumpier due to ongoing complex land deals, which may affect timing [48] - The company is pursuing larger master plan communities that require significant capital deployment [50]

Financial Data and Key Metrics Changes - Home closings revenue for Q1 2025 increased 11.8% year over year to $495 million, a record for any first quarter in company history [6][15] - Net income attributable to the company decreased 9.9% year over year to $75 million, with diluted EPS down 8.2% to $1.67 per share [7][17] - Book value grew 25% year over year to $37.09 per share [7] - Net new home orders increased 3.3% year over year to 1,106, setting a new company record [17] - Total debt to capital ratio stood at 14.5% and net debt to total capital at 9.8%, both among the best in the public homebuilding sector [20][13] Business Line Data and Key Metrics Changes - Homebuilding gross margin was 31.2%, down 220 basis points year over year, primarily due to higher incentives [16] - Average sales price (ASP) for new orders decreased 6.3% to $537,000, with Trophy brand representing 54% of total deliveries [18] - Total homes under construction increased 2.8% to 2,296, with a decrease in the percentage of homes under construction from Trophy brand [19] Market Data and Key Metrics Changes - Approximately 80% of home closings revenue was generated from infill and infill adjacent submarkets [9] - The company noted that the housing market remains undersupplied by an estimated 4 to 7 million units [14][15] - The average FICO score for homebuyers using the company's mortgage services was 741, with a debt-to-income ratio of 40% [26] Company Strategy and Development Direction - The company focuses on self-development and avoiding high costs associated with land banking, which has allowed it to maintain gross margins above 30% [8][10] - The strategic approach includes investing in desirable locations and premium amenities to create lasting value in neighborhoods [10][12] - The company plans to continue growing its land pipeline by acquiring high-quality assets regardless of economic cycles [13][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainties impacting consumer confidence but expressed confidence in the company's core strengths to navigate challenges [8][14] - The company remains optimistic about long-term market fundamentals, driven by household formation among millennials and Gen Z [14][15] - Management highlighted the importance of maintaining affordability while avoiding a race to the bottom in pricing [12] Other Important Information - The company repurchased $38.3 million of its stock through April 2025, with a board authorization of $100 million for share buybacks [13] - The company plans to invest approximately $300 million in land development during the year [27][29] - The geographic footprint of the lot pipeline remains consistent, with approximately 92% in Texas [29] Q&A Session Summary Question: What has been observed in April regarding tariffs and sales incentives? - Management noted minimal impact from tariffs so far, with incentives for Trophy brand being in line with overall company incentives [34][35] Question: Are there any changes in the land market in Dallas? - Management indicated some fluidity in the land market, with public builders walking away from less desirable lots, leading to potential price drops [38][39] Question: How does the company decide on capital allocation between stock buybacks and land investments? - Management explained that stock repurchases can be lumpier due to ongoing large land deals, which may affect the timing of buybacks [44][45]

Financial Performance - Diluted EPS for Q1 2025 decreased 8.2% year over year to $1.67[18] - Homebuilding gross margins for Q1 2025 decreased 220 bps year-over-year to 31.2%[18] - Closings in Q1 2025 increased 10.8% year over year to 910 units[23] - ASP in Q1 2025 increased 0.9% YOY to $544K[23] - Home closings revenue in Q1 2025 increased 11.8% year over year to $495 million[23] - Net new home orders in Q1 2025 increased 3.3% year-over-year to 1,106[29] Land and Lot Position - Total lots owned and controlled increased 31.6% year-over-year to 40,525, with 85.7% owned on the balance sheet[35] - The company expects land development spending in 2025 to be approximately $300 million, an increase of 46% from 2024[35] Financial Health - The average ROE in Q1 2025 was 18.5%[42] - The average ROA in Q1 2025 was 13.1%[42] - The debt-to-total-capital ratio was 14.5% at the end of Q1 2025[42]

PART I FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) The unaudited condensed consolidated financial statements for Q1 2025 indicate increased revenues and strong operating cash flow, despite a decline in net income [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased, primarily due to real estate inventory, while total liabilities decreased and total equity grew Balance Sheet Summary (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $103.0 | $141.5 | | Total real estate inventory | $1,986.5 | $1,937.7 | | **Total assets** | **$2,273.3** | **$2,250.0** | | **Liabilities & Equity** | | | | Borrowings on lines of credit, net | $(1.6) | $22.6 | | Senior unsecured notes, net | $274.2 | $299.1 | | **Total liabilities** | **$515.3** | **$551.8** | | **Total equity** | **$1,713.4** | **$1,653.5** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q1 2025, total revenues increased, but higher costs led to a smaller gross profit increase and a decline in net income and diluted EPS Income Statement Summary (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $497.6 | $447.3 | | Total gross profit | $155.8 | $148.3 | | Income before income taxes | $106.1 | $115.6 | | Net income attributable to Green Brick Partners, Inc. | $75.1 | $83.3 | | Diluted EPS | $1.67 | $1.82 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly improved in Q1 2025, while cash was used in investing and financing activities for debt repayments and stock repurchases Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $68.7 | $1.0 | | Net cash (used in) provided by investing activities | $(12.0) | $61.3 | | Net cash used in financing activities | $(81.6) | $(51.3) | | **Net (decrease) increase in cash** | **$(24.8)** | **$11.0** | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide details on accounting policies, real estate inventory, debt, stock repurchases, revenue disaggregation by market, and segment performance - Real estate inventory increased to **$1.99 billion** as of March 31, 2025, with the majority in land and lots under development (**$1.28 billion**)[27](index=27&type=chunk)[28](index=28&type=chunk) - On February 17, 2025, the Board authorized a new **$100.0 million** stock repurchase program During Q1 2025, the company repurchased **282,821 shares** for approximately **$16.7 million**[51](index=51&type=chunk) - Revenue is primarily generated from the Central geographical market, which accounted for **$361.6 million** in residential units revenue in Q1 2025, compared to **$133.7 million** from the Southeast market[60](index=60&type=chunk) - The Builder Operations segment generated **$495.3 million** in revenue and **$165.6 million** in gross profit, significantly outweighing the Land Development segment's **$2.3 million** in revenue and **$1.1 million** in gross profit for Q1 2025[67](index=67&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q1 2025 operating results to strategic locations and reduced cycle times, despite a decline in homebuilding gross margin percentage [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Residential units revenue increased in Q1 2025 due to higher deliveries, but gross margin declined, while SG&A expenses improved as a percentage of revenue Key Operating Metrics (Q1 2025 vs Q1 2024, in thousands) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Home closings revenue | $495,317 | $443,094 | +11.8% | | New homes delivered | 910 | 821 | +10.8% | | Net new home orders (units) | 1,106 | 1,071 | +3.3% | | Backlog revenue | $594,171 | $725,489 | -18.1% | | Residential units gross margin % | 31.2% | 33.4% | -2.2 p.p. | - The decrease in residential units gross margin was attributed to a combination of product mix and a focus on higher incentives and discounts to combat high interest rates[103](index=103&type=chunk)[104](index=104&type=chunk) - SG&A as a percentage of builder operations revenue decreased to **11.1%** from **11.4%** YoY due to better leveraging of overhead costs on higher revenues[106](index=106&type=chunk)[107](index=107&type=chunk) [Lots Owned and Controlled](index=26&type=section&id=Lots%20Owned%20and%20Controlled) As of March 31, 2025, the company increased its total owned and controlled lots, with the vast majority being owned and self-developed, reflecting its land strategy Lot Position Summary | Lot Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total lots owned | 34,720 | 32,716 | | Total lots controlled | 5,805 | 5,115 | | **Total lots owned and controlled** | **40,525** | **37,831** | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with low debt-to-total capitalization ratios, utilizing cash from operations and borrowings to fund debt repayments and operations - The company's debt to total capitalization ratio was **14.5%** as of March 31, 2025, with a non-GAAP net debt to total capitalization ratio of **9.8%**[121](index=121&type=chunk)[138](index=138&type=chunk) - In Q1 2025, cash used in financing activities totaled **$81.6 million**, primarily for repayments of senior unsecured notes (**$25.0 million**), net repayments of lines of credit (**$24.4 million**), and common stock repurchases (**$16.9 million**)[126](index=126&type=chunk) - The company was in compliance with all debt covenants as of March 31, 2025, including maintaining a minimum interest coverage ratio, a minimum tangible net worth, and a maximum debt to capitalization ratio[129](index=129&type=chunk)[131](index=131&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[146](index=146&type=chunk) - No changes in internal controls that have materially affected or are reasonably likely to materially affect internal control over financial reporting occurred during the three months ended March 31, 2025[147](index=147&type=chunk) PART II OTHER INFORMATION [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company highlights material changes to risk factors, including potential cost increases from tariffs and reduced home demand due to changes in mortgage financing requirements - The company faces risks from tariffs on imported goods and potential new duties on Canadian softwood lumber, which could increase home production costs and adversely impact margins[148](index=148&type=chunk) - Changes to mortgage financing, such as updated residency requirements for FHA/VA loans that exclude non-permanent residents, could reduce the pool of eligible homebuyers and negatively affect sales[149](index=149&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board authorized a new stock repurchase program, under which the company repurchased shares in Q1 2025, with a significant amount remaining for future repurchases Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid | Value of Shares Remaining for Repurchase (in millions) | | :--- | :--- | :--- | :--- | | March 1 - March 31, 2025 | 282,821 | $59.23 | $83.3 | [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) The company disclosed compensation updates, including a new Long-Term Incentive Plan, amendments to the Annual Incentive Plan, and increased compensation for the Interim CFO - A new Long-Term Incentive Plan (LTIP) was adopted on March 1, 2025, for executive officers, tying compensation to Total Shareholder Return (TSR) and Return on Assets (ROA) over a three-year period[152](index=152&type=chunk) - The Annual Incentive Plan (AIP) was amended on February 12, 2025, to remove EPS Performance as a metric[153](index=153&type=chunk) - Effective March 17, 2025, Interim CFO Jeffery Cox's base salary was increased to **$500,000**, and he became eligible for AIP and LTIP awards[154](index=154&type=chunk)[155](index=155&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files [Signatures](index=35&type=section&id=Signatures) The report is duly signed by the Chief Executive Officer and Interim Chief Financial Officer on behalf of Green Brick Partners, Inc

[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) [Performance Summary](index=1&type=section&id=Performance%20Summary) Green Brick Partners achieved record Q1 2025 results with $495 million in home closing revenue and strong 31.2% gross margin, driven by strategic infill focus and self-development - Strategic focus on infill and infill-adjacent locations, combined with a self-development strategy, drove strong Q1 2025 results[2](index=2&type=chunk) - Diluted EPS for Q1 2025 was **$1.67**; excluding a one-time **$0.21 per share** benefit in Q1 2024 from the sale of Challenger Homes, underlying EPS grew **3.7%** year-over-year[2](index=2&type=chunk) - Net new orders reached a record **1,106 homes**, a **3.3%** YoY increase, with a low cancellation rate of **6.1%**[2](index=2&type=chunk) - The company increased total lots owned and controlled to over **40,500**, with plans to self-develop approximately **97.9%** of them[2](index=2&type=chunk) - Approximately **668,000 shares** were repurchased for **$38.3 million** in 2025 through the end of April[2](index=2&type=chunk) - The company maintains a strong liquidity position with **$103 million** in cash and **$330 million** available on its revolving credit facility[3](index=3&type=chunk) [Financial Results Overview](index=1&type=section&id=Results%20for%20the%20Quarter%20Ended%20March%2031%2C%202025) Green Brick Partners reported Q1 2025 total revenues of $497.6 million, an 11.2% increase, with net income of $75.1 million and diluted EPS of $1.67, despite a prior-year one-time gain Q1 2025 vs Q1 2024 Financial Highlights | (Dollars in thousands, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total revenues** | $497,621 | $447,338 | 11.2% | | **Residential units revenue** | $495,317 | $443,284 | 11.7% | | **Net income attributable to Green Brick** | $75,059 | $83,301 | (9.9)% | | **Diluted EPS** | $1.67 | $1.82 | (8.2)% | | **New homes delivered** | 910 | 821 | 10.8% | | **Homebuilding gross margin percentage** | 31.2% | 33.4% | -220 bps | | **Backlog revenue** | $594,171 | $725,489 | (18.1)% | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Income](index=3&type=section&id=GREEN%20BRICK%20PARTNERS%2C%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Total revenues increased to $497.6 million in Q1 2025, but reduced other income and higher SG&A expenses led to a decline in net income to $75.1 million Condensed Consolidated Statements of Income (Q1 2025 vs Q1 2024) | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total revenues** | $497,621 | $447,338 | | **Total gross profit** | $155,785 | $148,257 | | **Selling, general and administrative expenses** | ($54,895) | ($50,570) | | **Other income, net** | $4,785 | $15,354 | | **Income before income taxes** | $106,148 | $115,633 | | **Net income attributable to Green Brick Partners, Inc.** | $75,059 | $83,301 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=GREEN%20BRICK%20PARTNERS%2C%20INC.%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets increased to $2.27 billion, driven by higher real estate inventory, while liabilities decreased, leading to a rise in stockholders' equity to $1.69 billion Condensed Consolidated Balance Sheet Highlights | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $103,003 | $141,543 | | **Total real estate inventory** | $1,986,525 | $1,937,732 | | **Total assets** | $2,273,267 | $2,249,994 | | **Total liabilities** | $515,259 | $551,831 | | **Total Green Brick Partners, Inc. stockholders' equity** | $1,690,912 | $1,625,415 | [Supplemental Information](index=5&type=section&id=SUPPLEMENTAL%20INFORMATION) [Operational Metrics](index=5&type=section&id=Operational%20Metrics) Q1 2025 saw new home deliveries increase by 11% to 910 units and net new orders rise 3.3% to 1,106, despite a higher cancellation rate and decreased backlog New Home Orders and Backlog (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net new home orders** | 1,106 | 1,071 | 3.3% | | **Cancellation rate** | 6.1% | 4.1% | 48.8% | | **Absorption rate per community** | 10.6 | 11.4 | (7.0)% | | **Average active selling communities** | 104 | 94 | 10.6% | | **Backlog units** | 864 | 1,020 | (15.3)% | | **Backlog revenue (in thousands)** | $594,171 | $725,489 | (18.1)% | [Lot Position](index=6&type=section&id=Lot%20Position) As of March 31, 2025, total lots owned and controlled increased to 40,525, with 98.4% designated for self-development, primarily in the Central region Total Lots Owned and Controlled | Lot Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total lots owned** | 34,720 | 32,716 | | **Total lots controlled** | 5,805 | 5,115 | | **Total lots owned and controlled** | 40,525 | 37,831 | - The percentage of self-developed lots as a percentage of total lots owned and controlled increased to **98.4%** as of March 31, 2025, up from **97.9%** at the end of 2024[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP measures, showing an adjusted homebuilding gross margin of 31.7%, a net debt to total capitalization ratio of 9.8%, and an underlying Q1 2025 EPS growth of 3.7% Adjusted Homebuilding Gross Margin Reconciliation | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Homebuilding gross margin % (GAAP)** | 31.2% | 33.4% | | **Adjusted homebuilding gross margin % (Non-GAAP)** | 31.7% | 34.0% | Debt to Capitalization Ratios (as of March 31, 2025) | Ratio | Value | | :--- | :--- | | **Debt to total capitalization ratio (GAAP)** | 14.5% | | **Net debt to total capitalization ratio (Non-GAAP)** | 9.8% | Adjusted Diluted EPS Reconciliation (Q1 2024) | Metric | Per Share | | :--- | :--- | | **Diluted EPS (GAAP)** | $1.82 | | Less: Equity in income of Challenger Homes | ($0.02) | | Less: Gain on sale of Challenger Homes | ($0.19) | | **Diluted EPS, excluding Challenger impact (Non-GAAP)** | $1.61 | [Other Information](index=2&type=section&id=Other%20Information) [Earnings Conference Call](index=2&type=section&id=Earnings%20Conference%20Call) An earnings conference call is scheduled for May 1, 2025, at 12:00 p.m. ET to discuss first-quarter 2025 results, with access details provided - An earnings conference call is scheduled for 12:00 p.m. ET on Thursday, May 1, 2025, with access details provided for domestic and international participants[6](index=6&type=chunk) [About Green Brick Partners, Inc.](index=8&type=section&id=About%20Green%20Brick%20Partners%2C%20Inc.) Green Brick Partners, Inc. is a diversified homebuilding and land development company operating in Texas, Georgia, and Florida, involved in all aspects of the homebuilding process - Green Brick is a diversified homebuilding and land development company with operations in Texas, Georgia, and Florida, and is the **third largest homebuilder** in Dallas-Fort Worth[24](index=24&type=chunk) [Forward-Looking and Cautionary Statements](index=8&type=section&id=Forward-Looking%20and%20Cautionary%20Statements) This section contains forward-looking statements subject to risks and uncertainties, including macroeconomic conditions, interest rates, and competition, which may cause actual results to differ - The report includes forward-looking statements concerning business strategies, market conditions, and future performance, which are subject to risks and uncertainties like interest rate changes, supply chain issues, and competition[25](index=25&type=chunk)

Industry Overview - The housing sector is facing challenges due to high interest rates and the lock-in effect of low mortgage rates from the pandemic, leading to existing home sales around 4 million, which is approximately 30% lower than pre-pandemic levels [1][2] - There is a significant housing shortage in the U.S., with estimates indicating a deficit of 3.8 million homes, which would take homebuilders about 7.5 years to address [2] Company Analysis: Williams-Sonoma - Williams-Sonoma operates in the housing market through its high-end home furnishings brands, including West Elm and Pottery Barn [5] - The company has maintained strong profit margins and controlled costs through effective inventory management and store rationalization, even in a sluggish market [6] - It has a history of returning capital to shareholders, recently raising its dividend by 16% to $0.66 per share, marking the 16th consecutive year of dividend increases [7] - The company has reduced its shares outstanding by about 20% over the last five years and reported a record Q4 operating margin of 21.5% with comparable sales growth of 3.1% [8] - Williams-Sonoma is well-regarded for its brand portfolio, management, and attractive valuation with a price-to-earnings ratio under 18, positioning it well for future demand recovery [9] Company Analysis: Green Brick Partners - Green Brick Partners has seen a 600% increase in stock value over the last five years, benefiting from low inventory of existing homes that has created demand for new homes [10] - The company differentiates itself by owning significant land and focusing on high-growth markets like Texas, Florida, and Georgia, which helps achieve better margins [11] - Green Brick reported an 18.1% revenue increase to $2.1 billion last year, with earnings per share rising 38% to $8.45 [12] - The stock is trading at a price-to-earnings ratio of less than 7, indicating it may be undervalued despite macroeconomic risks [12]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, in ...