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Dec 31, 2022
Green Brick Q4 2022 Earnings Report
Reported record home closings revenue and gross profit for any Q4, and decreased debt to total capital.
Key Takeaways
Green Brick Partners reported a decrease in revenue and diluted earnings per share for the fourth quarter of 2022, but achieved record home closing revenue and gross profit for any fourth quarter. The company delivered 727 homes and saw a decrease in net new home orders, but experienced a sales momentum increase in December. They also lowered their debt-to-total-capital ratio to 25.7%.
Delivered 727 homes in Q4 2022.
Achieved record home closing revenue of $429 million for any Q4.
Total gross profit was $112 million, also the highest for any Q4.
Diluted earnings per share was $1.18, down 4.8% year-over-year.
Green Brick
Green Brick
Green Brick Revenue by Segment
Revenue by Segment
Residential Units Revenue
CapyFin.comLand and Lots Revenue
CapyFin.com Forward Guidance
Green Brick Partners expects pent-up demand to enhance sales if mortgage rates stabilize at less than 6% and anticipates having approximately 6,000 finished lots at the end of 2023, with roughly 75% in infill locations, positioning them to ramp up home construction quickly and increase active selling communities. The company believes they are well-positioned to take market share while maintaining industry-leading gross margins.
Positive Outlook
- Potential for enhanced sales with stabilized mortgage rates below 6%.
- Approximately 6,000 finished lots expected by the end of 2023, with 75% in infill locations.
- Capability to quickly ramp up home construction and increase active selling communities.
- Well-positioned to take market share from other builders.
- Intention to maintain industry-leading gross margins.
Challenges Ahead
- Changes in macroeconomic conditions, including increased interest rates and inflation.
- General economic conditions, seasonality, cyclicality and competition in the homebuilding industry.
- Shortages, delays or increased costs of raw materials and increased demand for materials.
- A shortage of qualified and available labor.
- Adverse changes in availability or volatility of mortgage financing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income