Green Brick Partners (GRBK) Q3 2024 earnings summary

Executive summary

• Achieved record third quarter with 956 home closings and $523.7M in revenue, up 26.8% year-over-year, and net income of $89.1M, up 23.5%.

• Diluted EPS reached $1.98, a third quarter record, up 26.9% year-over-year.

• Net new home orders rose 11.3% to 877 units, with active selling communities up 23.3% to 106.

• Trophy Signature Homes represented 52% of Q3 new home orders and 46% of closings YTD, targeting entry-level and move-up buyers.

• Celebrated 10th anniversary as a public company, with a 34% CAGR in pre-tax income since 2015.

Financial highlights

• Year-to-date home closings reached 2,764 units and $1.53B in revenue, up 14.6% year-over-year.

• Homebuilding gross margin for Q3 was 32.7%; YTD margin was 33.6%, up 290 bps year-over-year.

• Diluted EPS for Q3 was $1.98; YTD diluted EPS was $6.12, up 34.5% year-over-year.

• SG&A as a percentage of revenue was 11.0% in Q3 and YTD.

• Net income for Q3 was $89.1M; YTD net income was $278M.

Outlook and guidance

• Management expects record revenue for fiscal year 2024, with continued strong demand in high-growth markets and expansion of Trophy Signature Homes.

• ASP expected to be $540K–$560K in Q4, subject to product mix and market conditions.

• Over 37,000 lots owned and controlled as of 9/30/24, up 41% year-over-year; 67% allocated to Trophy brand.

• Plans to sustain at least 1,000 home starts per quarter and expand into Austin and Houston in 2025.

• Wholly owned Green Brick Mortgage to generate 100% of mortgage profits in 2025.