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Jun 30, 2021
Dream Finders Homes Q2 2021 Earnings Report
Dream Finders Homes reported record earnings for Q2 2021, with a 193% YoY increase in quarterly pre-tax income.
Key Takeaways
Dream Finders Homes announced strong Q2 2021 results, highlighted by an 83% increase in home sales revenues and a 270 basis points improvement in gross margin percentage compared to Q2 2020. The company's focus on shareholder returns led to a substantial increase in return on equity. They delivered 996 homes with an average sales price of $358,604.
Total revenues increased by 83% to $365 million compared to Q2 2020.
Home closings rose by 91% to 996 homes compared to Q2 2020.
Gross margin increased by 270 basis points to 16.5% compared to Q2 2020.
Net new orders increased by 92% to 1,521 homes compared to Q2 2020.
Forward Guidance
Dream Finders Homes maintains its full year 2021 guidance of 5,000 to 6,000 home closings and anticipates an increase in the average sales price of homes closed in future quarters, as the average sales price in backlog as of June 30, 2021 was $398,048.
Positive Outlook
- Low interest rate environment supports continued demand.
- Persistent relocation patterns into core markets drive sales.
- Company is well positioned to achieve expected growth in 2021.
- Average sales price in backlog as of June 30, 2021 was $398,048.
- Management is determined to serve its customers by innovating ways to deliver homes and rapidly adapting to demand changes.
Challenges Ahead
- Difficulties encountered in labor and materials constraints.
- Changing consumer dynamics created by the current environment.
- General economic conditions, including interest rates and mortgage availability, remaining similar to those experienced in the first half of 2021.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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