Dream Finders Homes (DFH) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues rose 12% to $1.06–$1.1 billion, with home closings up 10% to 2,031 units and average sales price rising to $514,833.

• Net and comprehensive income attributable to DFH increased 18% to $81 million, with diluted EPS up 25% to $0.81.

• Gross margin held at 19.0%, adjusted gross margin at 27.0%.

• Completed Crescent Homes and Jet HomeLoans acquisitions, expanding into Phoenix and boosting Mid-Atlantic growth.

• Backlog fell 20% to 4,205 units, reflecting a shift toward spec sales and faster inventory turnover.

Financial highlights

• Six-month revenues increased 10% to $1.88 billion, with 3,686 homes closed and net new orders up 11%.

• Pre-tax income for Q2 rose 11% to $106 million; net income for H1 was $135 million, up 15%.

• EBITDA margin for Q2 improved to 14.2% from 13.5% year-over-year.

• Return on participating equity was 33.5% for the trailing twelve months, down from 42.2%.

• Net debt to net capitalization increased to 42.7% from 38.8% year-over-year.

Outlook and guidance

• Management remains optimistic for H2 2024, citing strong execution, favorable demand, and ongoing investments.

• Full-year 2024 guidance of 8,250 home closings is reiterated, including Crescent Homes.

• Continued benefits expected from asset-light strategy and shift toward spec sales.