Green Brick Partners (GRBK) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $74.2 million, or $1.70 per diluted share, down 9.5% year-over-year, with home deliveries nearly flat but average sales prices declining due to higher incentives and product mix changes.

• Net new home orders rose 19% year-over-year to 1,079 units, with a low cancellation rate of 7.8% and backlog revenue of $387 million on 681 units.

• Trophy Signature Homes drove growth, accounting for up to 60% of deliveries and 44% of backlog units, with a focus on affordable housing and expansion in DFW, Houston, and Austin.

• Financial services segment saw significant growth, with revenues up 93.9% and operating income up 91% year-over-year, driven by increased mortgage originations and capture rates.

• Achieved first deliveries in Houston and promoted Jed Dolson to Co-CEO, reflecting leadership succession planning.

Financial highlights

• Q2 2026 revenue was $493.8 million, down 11.4% year-over-year, with home closings revenue at $472 million and average sales price at $450,300, down 11.9%.

• Homebuilding gross margin was 29.8%, highest among peers, down 150 bps year-over-year but up 90 bps sequentially.

• SG&A expenses were $54.4 million (11.3% of revenue), up 60 bps year-over-year.

• Cash and cash equivalents were $132 million, with total liquidity of $462 million at quarter-end.

• Book value per share increased 16% year-over-year to $44.82.

Outlook and guidance

• Community count and backlog expected to increase toward year-end, with sequential backlog growth positioning the company well for the second half of 2026.

• Land and lot acquisitions for 2026 projected at ~$400 million; land development outflows at ~$450 million.

• Management targets a homebuilding debt to total capitalization ratio of up to 20% and remains focused on margin management, land acquisition, and leveraging financial services growth.

• Sufficient liquidity is expected to fund operations and service debt over the next twelve months.

• Focus remains on growing book value, generating attractive returns, and prudent capital investment.