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Green Brick Partners(GRBK) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Highlights Performance Summary 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 results2 - 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-year2 - Net new orders reached a record 1,106 homes, a 3.3% YoY increase, with a low cancellation rate of 6.1%2 - The company increased total lots owned and controlled to over 40,500, with plans to self-develop approximately 97.9% of them2 - Approximately 668,000 shares were repurchased for $38.3 million in 2025 through the end of April2 - The company maintains a strong liquidity position with $103 million in cash and $330 million available on its revolving credit facility3 Financial Results Overview 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 Condensed Consolidated Statements of Income 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 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 Operational Metrics 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 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 202417 Non-GAAP Financial Measures Reconciliation of Non-GAAP Measures 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 Earnings Conference Call 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 participants6 About Green Brick Partners, Inc. 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 Worth24 Forward-Looking and Cautionary Statements 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 competition25