Green Brick Partners (GRBK) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, with Q4 and full-year revenues at all-time highs and significant growth in net income and EPS year-over-year.

• Diluted annual EPS reached $8.45 (up 37.6% YoY), and Q4 EPS was $2.31 (up 46.2% YoY); net income for Q4 grew 42% to $104 million.

• Home closings grew to 3,783 units in 2024 (up 21.1% YoY), with revenues surpassing $2.1 billion for the first time.

• Trophy Signature Homes, launched in 2018, now accounts for over half of closings and is a key growth engine.

• Strategic focus on DFW and Atlanta markets, with over 90% of revenues from these regions.

Financial highlights

• Q4 home closing revenue rose 24.2% year-over-year to $557 million, with 1,019 homes closed (up 23.5%).

• Full-year homebuilding gross margin reached 33.8%, the highest among public peers, up 290 bps YoY.

• Net new home orders in Q4 increased 29.3% YoY to 878; full-year net new sales up 9.7%.

• Backlog revenue at year-end was $495.9 million, down 10.7% YoY; backlog units: 668 (down 13.2% YoY).

• Average sales price of homes delivered in 2024: $547,100 (down 3.4% YoY).

Outlook and guidance

• Entering 2025 with a strong land position, total lots owned and controlled up 31.9% YoY, and 106 active selling communities (up 16.5% YoY).

• Plans to increase land development spend by 46% to $300 million in 2025.

• Expecting similar sales volumes for Trophy in 2025 as in 2024, with continued focus on affordable housing and expansion into Houston.

• Majority of 2025 lot deliveries in DFW and Atlanta will be in infill and adjacent desirable areas.

• Monitoring incentives and pricing flexibility as mortgage rates fluctuate; spring sales trends similar to last year.