Green Brick Partners (GRBK) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 home closings revenue of $497.6 million, up 11.8% year-over-year, with 910 homes delivered, driven by increased active communities and healthy demand.

• Net new home orders reached a record 1,106, up 3.3% year-over-year and 26% sequentially, with backlog up 29% sequentially to 864 homes.

• Net income attributable to shareholders was $75.1 million, with diluted EPS of $1.67, down 8.2% year-over-year due to a one-time gain in Q1 2024; excluding this, EPS grew 3.7%.

• Maintained industry-leading homebuilding gross margin of 31.2%, despite a 220 basis point year-over-year decline due to higher incentives and costs.

• Operations are concentrated in DFW and Atlanta, with expansion planned for Houston in late 2025.

Financial highlights

• Total revenues rose 11.2% year-over-year to $497.6 million; average selling price increased 0.9% to $544,300.

• Net income was $75.1 million, down 9.9% year-over-year; diluted EPS was $1.67.

• SG&A as a percentage of revenue decreased 30 basis points year-over-year to 11.1%.

• Ending backlog value increased 29% sequentially to $594.2 million.

• Net debt-to-total capital ratio at 9.8%; total debt-to-capital at 14.5%, both among the lowest in the industry.

Outlook and guidance

• Management expects continued growth in home deliveries and active selling communities, with a focus on margin performance and prudent leverage.

• Plans to invest approximately $300 million in land development for the year, up 46% from 2024.

• Cautious approach to land acquisitions due to sticky land prices and economic uncertainties; will weigh land opportunities against share buybacks.

• Trophy brand to open first Houston community in Q3 2025; focus on infill and adjacent submarkets for lot deliveries.

• Monitoring market conditions and tariffs; maintaining flexibility with $103 million in cash and $330 million in available credit.