Green Brick Partners(GRBK) - 2025 Q3 - Quarterly Results

Financial Performance - Diluted EPS for Q3 2025 was $1.77, with net income of $78 million, a decrease of 12.6% year-over-year [5] - Home closings revenue totaled $499 million, down 4.7% from $523 million in Q3 2024 [4] - Residential units revenue for the three months ended September 30, 2025, was $499,091,000, a decrease of 4.5% compared to $522,859,000 in 2024 [13] - Home closings revenue for the nine months ended September 30, 2025, increased to $1,541,485,000, up 1.9% from $1,512,901,000 in 2024 [13] - Adjusted homebuilding gross margin for the three months ended September 30, 2025, was $153,000,000, with a margin percentage of 30.7%, down from 33.5% in 2024 [21] Home Sales and Orders - New home orders reached 898, up 2.4% year-over-year, marking a record for any third quarter in the company's history [3] - New homes delivered were 953, slightly down by 0.3% compared to 956 in Q3 2024 [4] - Net new home orders for the three months ended September 30, 2025, were 898, representing a 2.4% increase from 877 in 2024 [13] - Revenue from net new home orders decreased to $448,465,000 for the three months ended September 30, 2025, down 1.3% from $454,358,000 in 2024 [13] Backlog and Construction - The backlog revenue decreased by 20.0% year-over-year to $465.6 million [5] - Backlog revenue as of September 30, 2025, was $465,589,000, a decrease of 20.0% from $581,848,000 in 2024 [13] - Homes under construction decreased by 5.5% year-over-year to 2,202 units [5] - Average sales price of backlog decreased to $689,800 as of September 30, 2025, down 4.1% from $719,200 in 2024 [13] Pricing and Margins - The average sales price of homes delivered was $523.7 thousand, down 4.2% from $546.9 thousand in Q3 2024 [5] - Average sales price of homes delivered decreased to $523,700 for the three months ended September 30, 2025, down 4.2% from $546,900 in 2024 [13] - Homebuilding gross margins were 31.1%, remaining above 30% for the tenth consecutive quarter [3] Land and Development Strategy - The company has broken ground on its first master-planned community in the Houston market, anticipating sales to begin in the spring selling season [3] - Total lots owned increased to 36,699 as of September 30, 2025, compared to 32,716 as of December 31, 2024 [15] - Total lots controlled, including lots under option, was 41,186 as of September 30, 2025, up from 37,831 as of December 31, 2024 [18] - The company is focused on an infill-focused land self-development strategy, aiming to adapt to evolving market conditions and adjust pricing to meet market demand [24] - Green Brick plans to expand its Trophy brand in Austin and Houston, which is expected to positively impact future results [24] - The company is investing in land, lots, and development for 2025, indicating a commitment to growth despite potential market headwinds [24] Risks and Strategic Focus - The company faces risks including increasing interest rates, inflation, and potential shortages of raw materials, which could impact demand and operational costs [24] - Green Brick emphasizes the importance of managing costs and cycle times to deliver efficient and cost-effective growth [24] - The company retains interests in related financial services platforms, which contribute to its overall business model [22] - Green Brick's geographic concentration in Texas, Georgia, and Florida presents both opportunities and risks in its operational strategy [24] - The company has a proactive approach to capital deployment to maximize shareholder returns as the housing market improves [24] Expansion and Services - Green Brick is expanding its financial services through Green Brick Mortgage and Green Brick Insurance, enhancing its overall service offerings [24] - Green Brick Partners, Inc. operates as the third largest homebuilder in Dallas-Fort Worth, with a diversified portfolio including five subsidiary homebuilders in Texas and interests in Georgia and Florida [22]