Green Brick Partners(GRBK) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights 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] - 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] - Operationally, the company reduced average construction cycle times to under 5 months, with Trophy brand homes averaging just 3.5 months[2] - 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] Financial Performance Analysis Second Quarter 2025 Performance 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 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 Consolidated Statements of Income 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 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 Revenue and Deliveries Breakdown 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 | $13,493 | (84.9)% | | Lots closed | 18 | 8 | 125.0% | New Home Orders and Backlog The company achieved a record 908 net new home orders in Q2 2025, a 6.2% increase, despite a 6.4% drop in average selling price and a slight rise in cancellation rate to 9.9%, while backlog units and revenue decreased by 17.9% and 20.6% respectively Q2 2025 New Home Orders (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net new home orders | 908 | 855 | 6.2% | | Avg. selling price of new orders ($ 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 | $731.6 | (3.3)% | Land Position As of June 30, 2025, Green Brick's total lots owned and controlled increased to 40,200, with 98.4% being self-developed and a significant concentration in the Central region, highlighting the company's land development focus Total Lots Owned and Controlled | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total lots owned | 35,468 | 32,716 | | Total lots controlled | 4,732 | 5,115 | | Total lots owned and controlled | 40,200 | 37,831 | - The company's land strategy emphasizes self-development, with self-developed lots accounting for 98.4% of total lots owned and controlled as of June 30, 2025[18] Non-GAAP Financial Measures Green Brick uses non-GAAP measures like adjusted homebuilding gross margin (30.9%) and net debt to total capitalization (9.4%) to provide investors with a clearer view of its operational performance and strong financial structure - The company presents non-GAAP measures because it believes they are useful for management and investors in evaluating operating performance and financing structure, and facilitate comparison with industry peers[19] Q2 2025 Adjusted Homebuilding Gross Margin Reconciliation | (in thousands) | Amount | Percentage | | :--- | :--- | :--- | | Homebuilding gross margin (GAAP) ($ 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 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] - An earnings conference call to discuss Q2 2025 results is scheduled for 12:00 p.m. Eastern Time on Thursday, July 31, 2025[6] - The company expects full-year 2025 land development spending to be approximately $300 million[2] - 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]