[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 ...

The Zacks Real Estate – Development industry constituents are likely to face challenges due to geopolitical unrest and macroeconomic uncertainty. These factors are projected to increase material expenses and maintain high real estate prices. Until macroeconomic conditions improve, sales activity is likely to remain subdued in the near future.However, healthy demand for a number of real estate property types and a slowdown in the pace of new deliveries are likely to provide the industry some support, placing ...

Core Viewpoint - Green Brick Partners (GRBK) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements when they buy or sell large quantities [4]. Company Performance Indicators - Green Brick Partners is projected to earn $8.61 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 1.9% [8]. - Over the past three months, the Zacks Consensus Estimate for Green Brick Partners has risen by 2.6%, indicating a positive trend in earnings expectations [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Green Brick Partners to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Green Brick Partners (GRBK) Q4 2024 Earnings Call February 27, 2025 08:47 PM ET Company Participants Richard Costello - CFO, Treasurer & SecretaryJames Brickman - Co-Founder, CEO & DirectorJed Dolson - President & COOCarl Reichardt - Managing Director - Equity Research Operator Thank you for standing by. My name is Janine, and I will be your lead operator for today. At this time, I would like to welcome everyone to the Green Brick Partners Inc. Fourth Quarter twenty twenty four Earnings Call. All lines have ...

Green Brick Partners, Inc. (NYSE:GRBK) Q4 2024 Earnings Conference Call February 27, 2025 ET Company Participants Rick Costello - CFO Jim Brickman - Co-Founder and CEO Jed Dolson - President and COO Conference Call Participants Carl Reichardt - BTIG Operator Thank you for standing by. My name is Janine, and I will be your lead operator for today. At this time, I would like to welcome everyone to the Green Brick Partners, Inc. Fourth Quarter 2024 Earnings Call. All lines have been placed on mute to prevent a ...

Financial Data and Key Metrics Changes - The company reported record fourth quarter and full year 2024 results, with home closing revenue increasing by 24% year-over-year to $557 million [7][22] - Net income attributable to Green Brick grew 42% year-over-year to $104 million, and diluted EPS increased 46% year-over-year to $2.31, both records for any fourth quarter in the company's history [8][25] - For the full year, net income attributable to Green Brick increased 34.1% year-over-year to $382 million, and diluted EPS grew 37.6% over 2023 to $8.45, the highest in company history [26] Business Line Data and Key Metrics Changes - Home closings grew almost sixfold from 665 units in 2015 to 3,783 in 2024, generating home closing revenues that exceeded $2 billion for the first time [10] - Homebuilding gross margins improved from 20.6% in 2015 to 33.8% in 2024, representing a 64% improvement [10] - Trophy brand represented 51% of total closings in Q4 2024, with an average selling price (ASP) below the company average [23] Market Data and Key Metrics Changes - Net new home orders during the fourth quarter grew 29.3% year-over-year to 878, one of the highest growth rates among public homebuilders [27] - The DFW housing market continued to perform well, with Trophy contributing 54% of net new orders by volume [32] - The company has a strong land position, with total lots owned and controlled increasing by 32% to over 37,800 lots [38] Company Strategy and Development Direction - The company focuses on infill and infill adjacent submarkets where supply is constrained and competition is limited, which has driven its success [15] - The company plans to increase its spend on land development by 46% to approximately $300 million in 2025 [37] - A new share repurchase plan has been authorized to buy back up to $100 million of common shares, indicating a commitment to maximizing shareholder value [40] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term housing demand despite challenges posed by elevated mortgage rates, expecting significant demand from millennials and Gen Z entering their prime home buying years [19][20] - The company anticipates that the housing market remains undersupplied by an estimated 4 million to 7 million units [20] - Management expressed confidence in their ability to adjust home prices and incentives as needed due to industry-leading gross margins [36] Other Important Information - The company has maintained a low debt to total capital ratio of 17.2% at the end of 2024, the lowest year-end level since 2015 [12][30] - 93% of outstanding debt is fixed rate with an interest rate of 3.3% [31] Q&A Session Summary Question: Trends in January and February regarding sales and incentives - Management noted that sales trends in January and February are similar to the previous year, with mortgage rates dropping in February leading to a decrease in incentives [49][51] Question: Breakdown of the 46% increase in development spend - Management explained that the increase in land development spend is due to prior investments in land, which are now coming to fruition, and that community count growth is expected in the near future [54][58] Question: Expectations for SG&A leverage in 2025 - Management indicated that while there may be modest increases in headcount, the efficiency of the Trophy brand will help improve SG&A as a percentage of revenue over time [62][64]

Core Insights - Green Brick Partners (GRBK) reported revenue of $567.31 million for the quarter ended December 2024, reflecting a 26% increase year-over-year, although it fell short of the Zacks Consensus Estimate by 4.25% [1] - The company's EPS for the quarter was $2.31, up from $1.58 in the same quarter last year, surpassing the consensus EPS estimate of $2.24 by 3.12% [1] Financial Performance Metrics - Net new home orders totaled 878, exceeding the average estimate of 807 from two analysts [4] - New homes delivered were 1,019, slightly below the estimated 1,028 [4] - Backlog units stood at 668, surpassing the average estimate of 588 [4] - Active selling communities at the end of the period numbered 106, just below the estimated 108 [4] - Land and lots revenue was reported at $10.46 million, significantly higher than the estimated $3.50 million, marking a 463.2% increase year-over-year [4] - Residential units revenue reached $556.86 million, slightly below the estimated $562.77 million, but still representing a 24.2% year-over-year increase [4] Stock Performance - Over the past month, shares of Green Brick Partners have returned -2.8%, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - Green Brick Partners reported quarterly earnings of $2.31 per share, exceeding the Zacks Consensus Estimate of $2.24 per share, and showing an increase from $1.58 per share a year ago, representing an earnings surprise of 3.12% [1] - The company posted revenues of $567.31 million for the quarter ended December 2024, which was 4.25% below the Zacks Consensus Estimate, compared to $450.38 million in revenues a year ago [2] - Green Brick Partners has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times during the same period [2] Group 2 - The stock has gained approximately 6% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.60 on revenues of $463.4 million, and for the current fiscal year, it is $8.53 on revenues of $2.26 billion [7] Group 3 - The Real Estate - Development industry, to which Green Brick Partners belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The estimate revisions trend for Green Brick Partners is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]