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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.
Green Brick
Green Brick
Green Brick Revenue by Segment
Revenue by Segment
Residential Units Revenue
CapyFin.comLand and Lots Revenue
CapyFin.com 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
- A shortage of qualified labor
- An inability to acquire land in current and new markets at anticipated prices or difficulty in obtaining land-use entitlements
Revenue & Expenses
Visualization of income flow from segment revenue to net income