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Sep 30, 2023
Green Brick Q3 2023 Earnings Report
Green Brick reported an outstanding quarter with record-high homebuilding gross margin and significant growth in new home orders and backlog.
Key Takeaways
Green Brick Partners reported strong Q3 2023 results, with a record-high homebuilding gross margin of 33.3% and diluted EPS of $1.56. New home orders increased by 95.0%, and backlog grew by 10.4% year-over-year. The company's net debt to total capital ratio stood at 9.0%.
Homebuilding gross margin reached a record high of 33.3%, driven by a normalized supply chain and lower construction costs.
New home orders surged by 95.0% year-over-year, indicating strong demand in Green Brick's markets.
Backlog increased by 10.4% year-over-year, reflecting continued growth and future revenue potential.
Net debt to total capital ratio remained low at 9.0%, showcasing a strong balance sheet.
Revenue by Segment
Forward Guidance
The company focuses on managing capital efficiently and sourcing land investments under disciplined underwriting, expecting continued growth in high-performing markets.
Positive Outlook
- Anticipates continuing to start homes at a robust pace to meet demand.
- Focus remains on managing capital efficiently.
- Continue sourcing and closing land investments under disciplined underwriting.
- Expects land investments to be accretive for growth.
- Balance sheet is stronger than ever.
Challenges Ahead
- Increasing interest rate and inflation that could adversely impact demand for new homes
- General economic conditions, seasonality, cyclicality and competition in the homebuilding industry
- Shortages, delays or increased costs of raw materials and increased demand for materials, or increases in other operating costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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