GRBK

Image source: The Motley Fool. Thursday, July 30, 2026 at 2:00 p.m. ET Co-Founder and Chief Executive Officer - James Brickman President and Chief Operating Officer - Jed Dolson Chief Financial Officer - Jeffery Cox Jeffery Cox: Good afternoon, and welcome to Green Brick Partners Earnings Call for the second quarter ended June 30, 2026. Following today's remarks, we will hold a Q&A session. As a reminder, this call is being recorded and will be available for playback. In addition, a presentation will accompany today's webcast, which is available on the company's Investor Relations website at investors.greenbrickpartners.com. On the call today is Jim Brickman, Co-Founder and Chief Executive Officer; Jed Dolson, President and Chief Operating Officer; and myself, Jeff Cox, Chief Financial Officer. Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2026 and beyond. In yesterday's press release, the company detailed material risks that may cause its future results to differ from its expectations. The company's statements are as of today, July 30, 2026, and the company has no obligation to update any forward-looking statements it may make. Our comments today also include non-GAAP financial metrics. The reconciliation of these metrics and the other information required by Regulation G can be found in the earnings release that the company issued yesterday and in the aforementioned presentation. With that, I will turn the call over to Jim. James Brickman: Thank you, Jeff. Before I talk about second quarter results, I wanted to speak to the press release that was issued this morning announcing the promotion of Jed Dolson to Co-CEO to take place this October. One of the most important responsibilities of a Co-Founder and CEO is attracting, developing and retaining outstanding leaders. One of the greatest joys I have is recognizing talented people and sharing the credit for Green Brick's success. At Green Brick, we use acronym HOME to describe the values we expect from all employees; honest, objective, mature and efficient. Our current President, Jed Dolson, has been with us since before we became a public company and has been a primary driver of our success. Jed has consistently demonstrated the leadership, judgment and values that have helped shape Green Brick into the company it is today. It is my profound pleasure to announce that effective October 15, Jed will join me as Co-CEO. Jed, thank you for your partnership, leadership and commitment to Green Brick. Congratulations on this well-deserved promotion. I am confident that Jed will help drive Green Brick's continued growth and will contribute to even greater success in the years ahead. Now turning to the second quarter. I am very pleased with the strong second quarter results achieved by the Green Brick team even as affordability pressures and economic uncertainty continue to weigh on buyers. Interest rates remained elevated in the second quarter with concerns about employment growth and the cost of living dampening consumer confidence. Despite these challenges, we achieved a 19% increase in net new orders year-over-year. Our average selling community count grew 6% year-over-year to 108, and our monthly sales pace increased 10% year-over-year to 3.3. The growth in orders was driven primarily by Trophy Signature Homes as we continue to see strong demand for affordable homes targeting the first-time buyer, particularly in the DFW market, where Trophy is now the third largest builder by volume. Sales for each month for the quarter were higher than in the same month in 2025. With this sales velocity, we were still able to attain homebuilding gross margins of 29.8%, the highest reported among our homebuilding peers. Net income attributed to Green Brick for the second quarter was $74 million or $1.70 per diluted share on total revenues of $494 million. We delivered 1,047 homes during the quarter, including our first deliveries in the Riviera Pines community in Houston. We believe our investment-grade balance sheet and low financial leverage provide us with the flexibility to navigate and take advantage of evolving market conditions and seize on opportunities when prudent. At the end of Q2, our homebuilding debt to total capital ratio was 11.2%, and our net homebuilding debt to total capital ratio was 6.1%, among the lowest of our homebuilding peers. We grew book value 16% year-over-year to $44.82. We remain highly disciplined in how we control and purchase land, which remains the primary driver of our industry-leading margins. One of the primary differentiators from many of our peers is that we do not engage in high interest cost land banking relationships that can distort a builder's economic leverage and risk and that can give a land banker indirect control over a builder's lot purchase timing. At the end of the second quarter, 76% of our approximately 52,000 lots are owned. We currently have 3,300 lots owned or under contract and 4 joint ventures with other homebuilders or landowners. These joint ventures account for 6% of our total lots owned and under contract and only 3% of our total assets. These joint venture arrangements are evaluated with the same underwriting criteria as our other land investments to ensure that we remain focused on attractive risk-adjusted returns and improving shareholder value. We have always believed that a self-development focused strategy provides us with better control in determining the pace of land and lot deliveries and higher margins and returns. We generated operating cash flows of $117 million over the last 12 months while continuing to invest significantly in land acquisition and development to position us for future growth. We also returned $39 million to shareholders through stock repurchases. Even with our land-heavy balance sheet and macroeconomic headwinds, our return on assets for the second quarter was 11.8%, while the median return on assets of our homebuilding peers was 4.7%. Our return on equity for the quarter was 16% as our returns remain among the very best of our public homebuilding peers. Our disciplined return-focused approach and our experienced team of operators position us well for value creation. Green Brick Mortgage continues to grow rapidly with funded loans up 257% year-over-year and 43% sequentially. 65% of Green Brick Mortgage loans in the second quarter were to first-time homebuyers. Second quarter revenues in our financial services segment increased to $12 million compared to $6.3 million in the second quarter of 2025. And pretax income from our financial services segment increased year-over-year by 91% in Q2 to $5.7 million. One of our most important growth drivers remains Trophy Signature Homes. Trophy continues to strengthen its position in DFW while building momentum in Houston and Austin. Trophy's ability to deliver affordably priced homes, supported by an efficient land and construction platform, provides us with a runway for growth over the next few years. This expansion allows us to continue serving the critical first-time and first move-up buyer segments while further diversifying our revenue base and strengthening our presence in key Texas markets. Our strategy is built around disciplined capital allocation, local market expertise, operational excellence and a long-term focus on returns. Our builders manage each community with discipline and diligence to ensure pace, price and inventory levels meet our buyers' demand and maximize returns for our shareholders. Although current market conditions remain challenging, those principles continue to guide our decision-making, generating sustainable returns and position us to capitalize on opportunities as they emerge. While near-term housing conditions present headwinds for the entire industry, we are encouraged by the resilience of demand in many of our communities and by the strength of our operating platform and land and lot positions in high-demand markets. Our focus remains unchanged; growing book value, generating attractive returns and prudently investing capital where we see the greatest long-term opportunity. With this approach and our underlying financial strength, we also believe we remain able to pivot and adjust to market conditions as they evolve. With that, I now turn it over to Jeff to provide more detail regarding our financial results. Jeffery Cox: Thank you, Jim. Net income attributable to Green Brick for the second quarter decreased 9.5% year-over-year to $74 million and diluted earnings per share decreased 8% year-over-year to $1.70 per share. We delivered 1,047 homes during the quarter and generated home closings revenue of $472 million, resulting in an average sales price of $450,000. While deliveries were essentially unchanged from the same period last year, home closings revenue declined 11.4% due primarily to a higher mix of deliveries from our Trophy Signature Homes brand. Notably, 55% of our Q2 closings were sold during the quarter, driven largely by the growth of Trophy. Discounts and incentives as a percentage of home closings revenue increased year-over-year by 180 basis points to 8.8% from 7%. As a result, our homebuilding gross margins decreased 150 basis points year-over-year, but increased 90 basis points sequentially to 29.8%. During the quarter, we reduced our warranty reserve by $2.7 million, which improved gross margins by 60 basis points for the quarter. Our actual warranty spend was less than expected due to a continued focus on improving construction quality and maintaining a stable base of quality trade partners. Net new home orders during the quarter were 1,079, up 19% year-over-year. Order growth was driven by both higher community count and improved sales pace. Average active selling communities of 108 were up 6% year-over-year, and our sales pace for the second quarter increased by 10% to 3.3 per month compared to 3 per month in the previous year. Backlog at the end of the quarter was 681 units with backlog revenue of $387 million, a 24% decrease year-over-year. Trophy Signature Homes continued to gain backlog share in the quarter, representing 44% of our backlog units compared to 26% in Q2 of 2025. As a result of the increased mix of Trophy orders in our backlog, along with continued elevated discounts and incentives across all of our brands, the average sales price of our backlog decreased 18% to $569,000. Due to strong sales in the quarter, we started 1,133 new homes, an increase of 19% year-over-year and 16% sequentially. Units under construction at the end of the quarter were 2,205, flat year-over-year and up 4.1% sequentially as we increased starts to align with our sales pace. We ended the quarter with 410 completed specs, an average of 3.8 per community. We will continue to monitor market conditions and seasonal trends and align our starts with our sales pace to appropriately manage our investment in spec inventory. Our goal is to maintain approximately 1 to 2 months of supply of completed specs in our communities. Our SG&A expenses declined 5% year-over-year during the quarter. However, as a percentage of residential units revenue, SG&A increased 60 basis points to 11.3%, primarily due to lower home closings revenue. We repurchased approximately 143,000 shares of our common stock for $9.4 million during the quarter. With $151 million remaining in authorized share repurchases, we will continue to repurchase shares opportunistically as part of our disciplined capital allocation strategy and efforts to return value to our shareholders. At June 30, we had total liquidity of $462 million, including cash of $132 million with no outstanding borrowings on our $330 million unsecured revolving credit facility. Total debt, excluding our warehouse facilities, was $252 million with $75 million of senior notes maturing in the next 12 months. Our low homebuilding debt to capital of 11.2% and net homebuilding debt to capital of 6.1% remain among the lowest of public homebuilders. We believe we are well positioned to weather the challenging market conditions and ongoing volatility to opportunistically deploy capital to maximize shareholder returns and to accelerate growth as the housing market improves. With that, I will now turn it over to Jed. Jed Dolson: Thank you, Jeff. Before discussing our operational results, I want to take a moment to express my sincere appreciation to our Board for the confidence reflected in my upcoming appointment as Co-CEO. I would also specifically like to thank Jim for the opportunity to join Green Brick and for the mentorship, partnership and guidance provided by him over the past several years. Green Brick's success is built on the strength and commitment of an exceptional team and a disciplined long-term vision. I am honored to work alongside Jim and the entire Green Brick team as we continue to build on this strong foundation and create lasting value for our shareholders, homebuyers and employees in the years to come. We continue to see a challenging sales environment within all our consumer segments, but we are encouraged by the positive response we've seen from first-time homebuyers who are most impacted by the affordability challenges. Our team responded well to these conditions as evidenced by our strong second quarter sales volume and low cancelation rates of 7.8% during the quarter, which continue to be one of the lowest cancelation rates among our public homebuilding peers. We believe it demonstrates the quality of our product, desirability of our communities and creditworthiness of our buyers. Rate buydowns remained a necessary tool to drive traffic and sales, especially with the first-time homebuyers and quick move-in homes. We helped address the affordability challenges faced by many consumers by providing our homebuyers with price concessions, interest rate buydowns and closing cost incentives. Incentives were 9.1% on net new orders during the quarter, an increase of 120 basis points year-over-year, although a decrease of 20 basis points from the prior quarter. We remained focused on maximizing community level returns by balancing pace, pricing, product mix and inventory levels. The strength of our margins provides flexibility, but pricing decisions remain grounded in expected returns. We are also excited about the progress of our wholly owned mortgage company. During the second quarter, Green Brick Mortgage closed and funded 521 loans. The average FICO score for the quarter was 736, and the average debt-to-income ratio was 40%, consistent with the previous quarter. Our capture rate was 66% for the quarter. We are focused on increasing our capture rate in our Texas communities, and we continue to expect to roll out Green Brick Mortgage to the Providence Group, our Atlanta builder in the latter part of 2026. Our mortgage team continues to focus on maturing the platform with new technology initiatives to improve efficiency and enhance customer service. As Green Brick Mortgage continues to expand its service, we anticipate by year-end, its capture rate will exceed 70%, which should generate additional revenue as we increase the number of loans funded through our mortgage company. We continue to reduce our average construction cycle times, which are down 29 days from a year ago to 124 days. Trophy cycle time in Dallas-Fort Worth was 84 days compared to 103 days a year ago, the lowest in their history and a testament to the efficiency and quality of our construction teams and trade partner base. While we continue to monitor potential impacts from recently announced Canadian tariffs and other trade actions, we have not experienced a material impact on our construction cost to date. We continue to invest our land book to position ourselves for future growth. Year-to-date, our investments in land, lots and development totaled $363 million, including $197 million for land development, excluding reimbursements and $166 million for land and lot acquisition. For 2026, we expect land and lot acquisitions of approximately $400 million and land development outflows of approximately $450 million, excluding reimbursements. We believe our superior land position provides a competitive advantage that will be the foundation for strong growth in future years. Approximately 40,000 more lots are owned with approximately 12,000 under contract. Approximately 80% of our total lots owned and under contract are allocated to Trophy Signature Homes. Excluding approximately 30,000 lots expected in future phases within our long-term master planned communities, our lot supply is approximately 5 years. With approximately 52,000 lots owned and under contract, we remain patient and selective with future land opportunities without compromising the ability to grow our business in the near and intermediate term. With that, I will turn it over to Jim for closing remarks. James Brickman: Thank you, Jed. In closing, we remain confident in our long-term outlook and our ability to deliver excellent operational and financial results. Our land strategy, diversified product portfolio and strong balance sheet continue to differentiate Green Brick from our peers and support attractive returns for our shareholders over the longer term. Like the rest of our industry, we continue to navigate a challenging environment, but I am hopeful that the market is starting to find more stable footing and normalization. I believe that 2026 will be a year that we lay a foundation so we can execute our strategy and accelerate our growth in the coming years. With all of these challenges, I would like to recognize our team for their disciplined execution and resilience successfully navigating this market. Our results would not be possible without their focus, leadership and commitment. This concludes our prepared remarks, and I'll now open the line for questions. Operator: [Operator Instructions] And your first question comes from the line of Rohit Seth with B. Riley Securities. Rohit Seth: Jeff, in prior quarters, you broke out the ASP and margin move between the rate buydowns and Trophy. Gross margin was up about 90 bps sequentially. And if you can give us the puts and takes on that improvement. Jeffery Cox: Seth, this is Jeff. We -- as far as average sales pace goes between the brands, Trophy did a tremendous job of executing this last quarter. Our average, as you know, was 3.3 during the quarter sales per month, and Trophy was about double that. So they were just over 6, in particular, in the DFW market. We're still getting some traction in Houston having had our first deliveries there this quarter. And Austin is really starting to find its traction as well. So we're really encouraged by what we're seeing with Trophy there. As far as the margin goes, I would say Trophy is right in line with the company average. They pretty much kind of define our average at this point. Collectively, across the 3 markets where we offer Trophy, they made up 60% of our deliveries. And so they're really just kind of the driving force behind margins. Rohit Seth: Okay. And then on the capture rate, you're rolling out the financial services, it looks like in the Q2, the capture rate is about 66% and you want to get to 70% to 80%. Is that all coming through the Providence Group? Or is Texas fully penetrated? Just any color there. Jeffery Cox: Yes. We were still in the process of rolling the mortgage company out to the rest of our Texas markets. our plan is to still enter Atlanta here by the end of the year, and we're tracking with that. But we're encouraged by the capture rate that we've got. We do think that there's some opportunity to improve it, especially as we enter into some of these newer markets. The thing that's really helped us out in particular, is really just the builder forward commitments that we've been able to offer there to help buy the rates down, especially with Trophy and our first-time homebuyer product. And I think that will continue to hold here as long as rates continue to be elevated. Rohit Seth: Okay. And if I could squeeze in the last one. Rates have moved up here in July. Can you provide us some color on maybe how traffic has responded so far? James Brickman: Yes, I can take this. This is Jim Brickman. It's spotty and it's really surprising. I'll be candid with you, Florida, Riviera Beach market is usually in the doldrums this time of year, and we really had a great month of sales in July there. On the other side of the coin, Atlanta, which has usually been pretty steady month-to-month, quarter-to-quarter relative to our other markets has been very slow in July. And so I think the best word is spotty, and we're watching it closely. But overall, we're still seeing that there's -- particularly in the Trophy brand that there is tremendous buyer demand as long as we can provide a favorable pricing and product. Operator: Your next question comes from the line of Ryan Gilbert with BTIG. Ryan Gilbert: Jed, congrats on the promotion, very well deserved. Jed Dolson: Thank you. Ryan Gilbert: First question is on homes under construction. It looks like it was flat year-over-year despite a pretty nice pickup in absorption pace in the quarter. So I'm wondering if you guys could just talk about what you would need to see in the market to move homes under construction higher, accelerate starts pace even more than what you saw in the quarter? Jed Dolson: Yes. This is Jed. Jeff mentioned, I believe I mentioned as well in my comments that cycle times have come down. So we feel like we're keeping -- it's not taking long to build these houses. So we're keeping the inventory levels, especially the finished inventory levels where we want them. Ryan Gilbert: Okay. Got it. And then second question on gross margin, up 80 bps sequentially, but it sounds like your incentives were down 130 bps sequentially, and maybe there was some warranty benefit in the quarter as well. So I'm hoping you could talk about some of the offsets that led to the 80 bps improvement in gross margin relative to what you were able to do in incentives. Was it direct costs, land cost inflation? Any color would be helpful. Jed Dolson: Yes. I would say the biggest driver in gross -- everybody wants to look at gross margin like it's static. Well, if you overlay what the interest rate was that quarter or that month and then what the buydowns were that's not static. And so on FHA, we began the year around 6%, and we're at 6.4-ish today. So that's a much bigger buydown cost for us there. As far as just general sticks and bricks, we continue to see sticks and bricks come down, labor come down in costs with the exception of lumber, which has risen this year. On the lot cost, land cost question, one of the things that we're I think, going to get tailwinds from, particularly relative to our peers is that our land and lot cost is pretty flat, might go up slightly. There's 2 reasons for that. One is we don't land bank. We don't have a high cost of capital being capitalized or borrowed into our land and lot costs. And the other is that just the way that we underwrite our larger land development deals, we assume our undeveloped lot cost doesn't inflate even on some communities that are 8- and 10-year large communities. So hopefully, in the future, we could still see some margin lift because of our low amount of capitalized interest and our lot cost basis is very favorable going forward. Operator: Your next question comes from the line of Alex Rygiel with Texas Capital. Alexander Rygiel: Could you speak to average selling price? Is $450,000 sort of the new norm? Or directionally, should we expect that number to tick up or tick down? James Brickman: Directionally, it's going to tick down. This is Jim, because, again, Trophy is growing much faster than all of our other businesses. Pretty much of our other businesses are not growing. They're flat and Trophy is growing quite rapidly and Trophy's average sales price in many of the new communities that we're opening is $325,000-ish. So you're adding a lot of $325,000 homes and you're at $450,000 now, that number is going to go down. Jeffery Cox: And I'll just add on, this is Jeff. To Jim's point, as we continue to grow Trophy, especially in these newer markets like Austin and Houston, there is a bigger difference in average sales price in those markets as you compare it to DFW. So mix will certainly be a large impact going forward. Alexander Rygiel: And then any comments on community growth in the second half of the year? Jeffery Cox: Nothing specific, but as we guided last time that we believe community count will continue to increase towards the end of this year. And we haven't had any reason to believe it will be any different at this point. Operator: Your next question comes from the line of Jay McCanless with Citizens Bank. Jay McCanless: Jed, congrats from me as well. Several of your peers on their conference calls have recently talked about underwriting for first move-up, maybe second move-up land coming in more favorably than entry-level lots at this point. Are you guys seeing the same thing for some of the new deals you're looking at? And if not, maybe just talk about why entry-level land is still penciling well versus where it has historically? James Brickman: Yes. This is Jim. Really, it's a tale of 2 cities. I think you're seeing D location land and C location land actually depreciating. The A location land is still in high demand because it produces higher margins. It's more expensive. And we don't see that stopping really. We would rather pay up for an A location land than buy a C location land that we think we're getting a really good deal on. I think some of our competitors feel the same way. But I think our real strategic advantage versus some of our peers is that we have the ability to entitle, which takes a lot of work and put larger, more complicated land deals together. And these deals can be longer life communities. Land bankers don't go after this asset class because they like 3-year deals. And really, that's kind of our sweet spot. They're complicated. They have a lot of moving parts from entitlement to land development. The land planning requires a lot more work and upfront capital. And really, those are deals we're going to continue to pursue. One of the things I find really curious is I listened to all of our peers' call and with the exception of one nationally known, well-recognized premier higher-end builder, very few builders ever talk about creating communities that people want to live. And our focus is on creating affordable master planned communities where people want to live today and tomorrow. And you just don't hear that very much. And we are not hesitant at all to spending $8 million on upgraded amenity center, pools, landscaping in a community. And really, a lot of our peers are reluctant to do that because they can't amortize those front-end costs over a great number of lots. So we're going to continue to grow our affordable master planned communities, and I think it's really going to help Jed, as my Co-CEO, really grow the business. Jay McCanless: Great. The second question I had, you were talking about Trophy and entry-level demand being very strong. But with several of your peers trying to flex more into move-up housing and to-be-builts, is there an opportunity for some of this land you already have either in-house or under contract for Trophy to maybe pivot some of that to take advantage of what seems to be a little bit better demand in some markets for move-up and to-be-built homes? James Brickman: Yes, we are doing that in our larger communities and one of the advantages we have is that we can bifurcate the market. And we're looking at a very large land deal right now that we've been working on for a very long time and Centre Living Homes may do 1-acre product. Southgate Homes may do $800,000 product. Trophy Signature Homes may do $400,000 product. So we're going to -- we are going to address all these markets. And fortunately, we can do it with all of our existing brands that have really a good reputation in our markets. Jay McCanless: That's great. And then if I could just, on Atlanta, and I think this is the second quarter in a row where you talked about Atlanta maybe being a little softer. Is that a function of H-1B buyers? Or what's going on there? And what do you think -- how do you get that turned around in Atlanta? Jed Dolson: Yes. This is Jed. I think it's twofold. I think there's definitely some cultural buyer headwinds there because of the visa issues. And then in Atlanta, we don't provide entry-level housing. So our ASP in Atlanta is in the right around $700,000. And so we're kind of -- we're not luxury, but we're not entry-level either. We're in a second time move-up. And so it's -- that market has been tougher. Jay McCanless: Right. And then I guess, but the last one I had with rates moving up for most of July, have you all been able to hold -- I think you said the incentive rate was about 9-and-change on orders for this quarter. Is it still trending that way in July? And if rates continue to move higher from there, do you think it's going to have to flex up? Jed Dolson: I'll answer it this way. I don't think the buy -- because rates go up, I don't think the buyer is going to say, okay, I'll go up a quarter rate -- a quarter point on what I think my buydown rate should be. They're going to hold us. And so it's going to be like the cost will be borne by us. Operator: [Operator Instructions] There are no further questions. I will now turn the conference back over to Jim Brickman, CEO, for closing remarks. James Brickman: Well, thank you for attending our call. If anybody wants additional information, our team is available to talk to you at any time. And even better, we hope you come to Dallas, Atlanta or any of our markets and see what we're doing because I think you'll be able to tell a difference. Thank you. Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Before you buy stock in Green Brick Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Green Brick Partners wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Green Brick Partners. The Motley Fool has a disclosure policy. Green Brick Partners (GRBK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a peer-leading 29.8% homebuilding gross margin by maintaining a self-development focused strategy that avoids high-interest land banking relationships. Net new orders grew 19% year-over-year, primarily driven by the Trophy Signature Homes brand targeting the resilient first-time buyer segment. Maintained one of the industry's lowest cancelation rates at 7.8%, which management attributes to high product quality and the creditworthiness of their buyer base. Operational efficiency improved significantly with average construction cycle times decreasing by 29 days year-over-year to 124 days. The Trophy brand's expansion into Houston and Austin is diversifying the revenue base while strengthening the company's presence in high-demand Texas markets. Management emphasized that their investment-grade balance sheet and low 11.2% debt-to-capital ratio provide the flexibility to pivot as market conditions evolve. Strategic focus remains on creating 'affordable master planned communities' with high-end amenities to differentiate from peers who focus solely on volume. Anticipate a downward trend in overall Average Selling Price (ASP) as the lower-priced Trophy brand continues to grow faster than other business segments. Expect to roll out Green Brick Mortgage to the Atlanta market in late 2026, targeting a company-wide capture rate exceeding 70% by year-end. Planned land and lot acquisitions of approximately $400 million and land development outflows of $450 million for the full year 2026. Community count is projected to continue increasing through the end of 2026 to support accelerated growth targets. Management views 2026 as a foundational year to execute their strategy and accelerate growth in subsequent years as the market stabilizes. Announced the promotion of Jed Dolson to Co-CEO effective October 15, 2026, to lead the company alongside Co-Founder Jim Brickman. Gross margins were positively impacted by a $2.7 million reduction in warranty reserves due to improved construction quality and stable trade partner relationships. Identified 'spotty' demand in July, with strength in Florida offset by significant slowing in the Atlanta market due to visa issues and affordability headwinds. Noted that while Canadian lumber tariffs are being monitored, they have not yet had a material impact on construction costs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while incentives on orders decreased slightly to 9.1%, the cost of rate buydowns is increasing as base rates rise. Margin strength is supported by a flat land cost basis because the company does not land bank or capitalize high interest into lot costs. ASP is expected to decline from the current $450,000 as Trophy opens more communities with price points around $325,000. The mix shift toward newer markets like Austin and Houston will further contribute to this downward ASP trend. Management prioritizes 'A' locations and is willing to pay more for land that supports higher margins rather than buying cheaper 'C' or 'D' locations. The company utilizes its multiple brands to bifurcate large master-planned deals, offering products ranging from $400,000 to $800,000+ within the same community. Atlanta is currently underperforming due to a lack of entry-level product (ASP is ~$700,000) and cultural buyer headwinds related to visa issues. Management described the current demand environment as 'spotty' rather than a uniform national trend.

This article first appeared on GuruFocus. Total Revenue: $494 million for the second quarter. Net Income: $74 million, or $1.70 per diluted share, a decrease of 9.5% year-over-year. Home Closings Revenue: $472 million, down 11.4% year-over-year, with 1,047 homes delivered. Average Sales Price (Home Closings): $450,000. Homebuilding Gross Margin: 29.8%, a decrease of 150 basis points year-over-year but an increase of 90 basis points sequentially. Net New Orders: 1,079, up 19% year-over-year. Average Active Selling Communities: 108, up 6% year-over-year. Monthly Sales Pace: 3.3 per community, up 10% year-over-year. Backlog: 681 units with backlog revenue of $387 million, a 24% decrease year-over-year. Financial Services Segment Revenue: $12 million, compared to $6.3 million in Q2 2025. Financial Services Segment Pretax Income: $5.7 million, up 91% year-over-year. SG&A Expenses: Declined 5% year-over-year; as a percentage of residential units revenue, increased 60 basis points to 11.3%. Discounts and Incentives: 8.8% of home closings revenue, up 180 basis points year-over-year. Homebuilding Debt to Total Capital Ratio: 11.2%. Net Homebuilding Debt to Total Capital Ratio: 6.1%. Book Value: $44.82 per share, up 16% year-over-year. Operating Cash Flow: $117 million over the last 12 months. Return on Assets: 11.8% for the quarter. Return on Equity: 16% for the quarter. Share Repurchases: Approximately 143,000 shares for $9.4 million during the quarter. Total Liquidity: $462 million, including $132 million in cash. Total Debt (excluding warehouse facilities): $252 million. GreenBrick Mortgage Funded Loans: 521 loans funded, up 257% year-over-year. GreenBrick Mortgage Capture Rate: 66% for the quarter. Average Construction Cycle Time: 124 days, down 29 days from a year ago. Warning! GuruFocus has detected 3 Warning Sign with GRBK. Is GRBK fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net new orders increased 19% year-over-year, driven by strong demand for affordable homes from Trophy Signature Homes. Homebuilding gross margins of 29.8% were the highest among homebuilding peers, supported by disciplined land cost control. GreenBrick Mortgage grew rapidly, with funded loans up 257% year-over-year and a 66% capture rate, targeting 70%+ by year-end. Balance sheet remains strong with low leverage (net homebuilding debt to capital of 6.1%) and $462 million in total liquidity. Return on assets of 11.8% and return on equity of 16% are among the best in the industry, reflecting disciplined capital allocation. Home closings revenue declined 11.4% year-over-year due to a higher mix of lower-priced Trophy homes. Discounts and incentives increased to 8.8% of home closings revenue, up 180 basis points year-over-year, pressuring margins. Backlog revenue decreased 24% year-over-year, with average sales price down 18% due to Trophy mix and elevated incentives. Market conditions remain challenging with elevated interest rates, affordability pressures, and spotty demand across regions like Atlanta. SG&A expenses as a percentage of residential units revenue increased 60 basis points to 11.3% due to lower revenue. Here are the key highlights from the Green Brick Partners Inc (NYSE:GRBK) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Q: Can you provide some color on how traffic has responded to the rate move-up in July? A: (Jim Brickman, CEO) It's spotty and surprising. Florida (Vera Beach) had a great month of sales in July, which is unusual for this time of year. Conversely, Atlanta, which is usually steady, has been very slow in July. Overall, we still see tremendous buyer demand for the Trophy brand as long as we can provide favorable pricing and product. Q: With several peers flexing more into move-up housing, is there an opportunity for you to pivot some of your Trophy land to take advantage of better demand for move-up, to-be-built homes? A: (Jim Brickman, CEO) Yes, we are doing that in our larger communities. We can bifurcate the market. For example, in a very large land deal we are working on, Center Living Homes may do one-acre product, Southgate Homes may do $800,000 product, and Trophy Signature Homes may do $400,000 product. We can address all these markets with our existing brands. Q: What would you need to see in the market to move homes under construction higher and accelerate the starts pace? A: (Jed Dolson, President & COO) Our cycle times have come down, so it's not taking as long to build houses. We are keeping our inventory levels, especially finished inventory, exactly where we want them. Q: Can you speak to the average selling price (ASP)? Is $450,000 the new norm, or should we expect it to tick up or down? A: (Jim Brickman, CEO) Directionally, it will tick down. Trophy is growing much faster than our other businesses, which are flat. Trophy's ASP in many new communities is around $325,000. As we have more of those homes, the blended ASP will go down from the current $450,000. Q: On the capture rate for your mortgage company, is the path to 70-80% coming through the Providence Group (Atlanta), or is Texas fully penetrated? A: (Jeff Cox, CFO) We are still in the process of rolling out the mortgage company to the rest of our Texas markets. Our plan is still to enter Atlanta by the end of the year. We are encouraged by the current 66% capture rate and see opportunity to improve it, especially with builder-forward commitments to buy down rates for first-time homebuyers. Q: With rates moving up in July, have you been able to hold the incentive rate at ~9%, and will you have to flex it if rates go higher? A: (Jed Dolson, President & COO) I don't think the buyer will accept a quarter-point increase in their buy-down rate just because rates go up. They will hold us to the lower rate, so the cost will be borne by us. Q: What drove the 80 bps sequential improvement in gross margin? Was it direct costs or land cost inflation? A: (Jed Dolson, President & COO) The biggest driver is that buy-down costs are not static. The FHA rate began the year around 6% and is now at 6.4%, making buy-downs more expensive. On the cost side, we continue to see "sticks and bricks" and labor costs come down, with the exception of lumber, which has risen this year. Q: You mentioned Atlanta being softer for a second quarter. Is that a function of H1B buyers, and how do you get that turned around? A: (Jed Dolson, President & COO) It's two-fold. There are cultural buyer headwinds due to visa issues. Also, we don't provide entry-level housing in Atlanta; our ASP there is around $700,000. We are in a second-time move-up segment, and that market has been tougher. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

PLANO, Texas, July 29, 2026--(BUSINESS WIRE)--Green Brick Partners, Inc. (NYSE: GRBK) ("Green Brick," "we," or the "Company"), today announced results for its second quarter ended June 30, 2026. Net income attributable to Green Brick in the second quarter was $74 million or $1.70 per diluted share. 2026 SECOND QUARTER HIGHLIGHTS Net new home orders of 1,079, up 19% year over year Backlog of 681 homes with a dollar value of $387 million New home deliveries of 1,047 Home closing revenue of $471 million Delivered first homes in Houston Homebuilding gross margins of 29.8% Book value of $44.82 per share increased 16% year over year Liquidity of $462 million, inclusive of $132 million of cash Homebuilding debt to total capital of 11.2%; net homebuilding debt to total capital of 6.1% Repurchased 143,026 shares of common stock for approximately $9.4 million Net new home orders increased 19% year over year to 1,079 units. Monthly sales pace for the second quarter was 3.3 sales per community, compared to 3.0 in the same period of the prior year. Incentives on new orders remain elevated at 9% as we continue to respond to market conditions to maintain sales pace. Our sales cancellation rate of 7.8% for the quarter remained among the lowest of our public company peers. The Company delivered 1,047 new homes in the second quarter, which was relatively unchanged year over year, generating home closings revenue of $471 million. Homebuilding gross margin for the quarter was 29.8%, up 90 bps sequentially and down 150 bps year over year. Jim Brickman, CEO and co-founder said, "Our second quarter results demonstrate the strength of Green Brick's differentiated operating model where our growth is focused on building in our large, self developed master planned neighborhoods where we believe we provide both affordability and upgraded amenities to our buyers." "While affordability challenges and economic uncertainty continue to impact buyers, demand in our Texas markets remained strong. Our disciplined operators delivered a 19% year-over-year increase in net new home orders as buyers responded to our targeted incentive strategy and attractive product offerings, especially with our Trophy Signature Homes brand. We were particularly encouraged by the improvement in sales pace during the quarter. Orders exceeded deliveries, resulting in sequential backlog growth and positioning the company well for the second half of 2026." "Our gross margins continue to be industry-leading and are a direct result of our disciplined land acquisition and development strategy. By concentrating on infill and infill-adjacent communities in high-demand submarkets, we continue to benefit from attractive locations, efficient development economics, and a competitive positioning that is difficult to replicate." "We are also pleased with the progress of our financial services offerings, especially the growth of our wholly-owned mortgage company, Green Brick Mortgage" added Mr. Brickman. "Financial services operating income for the quarter increased 91% year over year to $5.7 million and exceeded $10 million year to date as Green Brick Mortgage continued to expand, reflecting increased scale and higher customer adoption across our platform. We believe our integrated financial services offering enhances the customer experience while creating an additional source of earnings growth." "Total liquidity at quarter end was $462 million. The company's homebuilding debt-to-total capital ratio at quarter end was 11.2% and our net homebuilding debt-to-total capital ratio was 6.1%, compared to 14.4% and 9.4%, respectively, over the prior year. Despite having only 6% net homebuilding debt to total capital, our owned lot position grew from 37,023 lots at year-end to 39,588 lots as of June 30, 2026, an increase of 7% sequentially and a 11.6% increase year over year." Mr. Brickman concluded, "We have worked hard to build an investment grade balance sheet that gives us flexibility. We believe our strong liquidity and disciplined capital strategy enable us to invest with confidence, remain selective in the opportunities we pursue, and position the Company to capitalize on future growth while continuing to generate attractive returns for shareholders." Earnings Conference Call: We will host our earnings conference call to discuss our second quarter ended June 30, 2026 at 12:00 p.m. Eastern Time on Thursday, July 30, 2026. The call can be accessed by dialing 1-800-715-9871 for domestic participants or 1-646-307-1973 for international participants and should reference meeting number 3162560. Participants may also join the call via webcast at: https://events.q4inc.com/attendee/561994773. A telephone replay of the call will be available through August 30, 2026. To access the telephone replay, the domestic dial-in number is 1-800-770-2030, the international dial-in number is 1-800-770-2030 and the access code is 3162560, or by using the link at investors.greenbrickpartners.com. Non-GAAP Financial Measures In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating our operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP. The following table represents the non-GAAP measure of net homebuilding debt to total capitalization. Net homebuilding debt to total capitalization is calculated as the total debt less cash and cash equivalents, divided by the sum of total Green Brick Partners, Inc. stockholders’ equity and total debt less homebuilding cash and cash equivalents. The closest GAAP financial measure to the net debt to total capitalization ratio is the debt to total capitalization ratio. The following table represents a reconciliation of the net homebuilding debt to total capitalization ratio as of June 30, 2026: About Green Brick Partners, Inc. Green Brick Partners, Inc (NYSE: GRBK), the third largest homebuilder in Dallas-Fort Worth, is a diversified homebuilding and land development company that operates in Texas, Georgia, and Florida. Green Brick owns five subsidiary homebuilders in Texas (CB JENI Homes, Normandy Homes, Southgate Homes, Trophy Signature Homes, and a 90% interest in Centre Living Homes), as well as a 50% interest in a homebuilder in Atlanta, Georgia (The Providence Group) and an 80% interest in a homebuilder in Port St. Lucie, Florida (GHO Homes). Green Brick also retains interests in related financial services platforms, including Green Brick Title, GRBK Mortgage, and Green Brick Insurance. Green Brick is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master-planned communities. For more information about Green Brick Partners Inc.’s subsidiary homebuilders, please visit https://greenbrickpartners.com/brands-services/. Forward-Looking and Cautionary Statements: This press release and our earnings call contain "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts and typically include the words "anticipate," "believe," "consider," "estimate," "expect," "feel,", "poised," "intend," "plan," "predict," "seek," "strategy," "target," "will" or other words of similar meaning. Specifically, these statements reflect our beliefs and expectations regarding (i) our strategic advantages, including our unique business model and focus on infill and infill-adjacent locations, and the impact on our future results;(ii) our ability to adapt to evolving market conditions; (iii) our ability to continue to deliver peer-leading gross margins; (iv) our integrated financial services offerings and its impact on our results ; (v) our ability to adjust pricing in order to meet market demand; (vi) our investments in land, lots and development in 2026; (vii) our projections for land development in 2026; (viii) our competitive advantages; (ix) our land pipeline and the impact it will have on our future success; (x) our expectations for Green Brick Mortgage’s capture rate in 2026; (xi) our land position(xii) our lot and land strategy and its impact on our future financial position; (xiii) our ability to successfully implement our growth strategy, including our expectations for expansion and growth of our Trophy brand and the impact that expansion will have on our future results; (xiv) our ability to opportunistically deploy capital to maximize shareholder returns, and to accelerate growth as the housing market improves; (xv) the credit worthiness of our buyers, quality of our product; (xvi) the desirability of our communities; (xvii) our future financial and operational performance; (xviii) the timing of our expansion of Green Brick Mortgage into Atlanta; and (xix) expansion of our financial services through Green Brick Mortgage and Green Brick Insurance. These forward-looking statements reflect our current views about future events and involve estimates and assumptions which may be affected by risks and uncertainties in our business, as well as other external factors, which could cause future results to materially differ from those expressed or implied in any forward-looking statement. These risks include, but are not limited to: (1) general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; (2) changes in macroeconomic conditions, including increasing interest rates and inflation that could adversely impact demand for new homes or the ability of potential buyers to qualify; (3) shortages, delays or increased costs of raw materials and increased demand for materials, or increases in other operating costs, including costs related to labor, real estate taxes and insurance, which in each case exceed our ability to increase prices; (4) significant periods of inflation or deflation; (5) a shortage of labor; (6) an inability to acquire land in our markets at anticipated prices or difficulty in obtaining land-use entitlements; (7) our inability to successfully execute our strategies, including the successful development of our communities within expected time frames and the growth and expansion of our Trophy brand; (8) a failure to recruit, retain or develop highly skilled and competent employees; (9) the geographic concentration of our operations; (10) government regulation risks; (11) adverse changes in the availability or volatility of mortgage financing; (12) severe weather events or natural disasters; (13) difficulty in obtaining sufficient capital to fund our growth; (14) our ability to meet our debt service obligations; (15) a decline in the value of our inventories and resulting write-downs of the carrying value of our real estate assets; (16) our ability to adequately self-insure; and (17) changes in accounting standards that adversely affect our reported earnings or financial condition. Green Brick assumes no obligation to update any forward-looking statements, which speak only as of the date they are made. For a more detailed discussion of these and other risks and uncertainties applicable to Green Brick please see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729023948/en/ Contacts Investor [email protected]

Image source: The Motley Fool. Thursday, April 30, 2026 at 12 p.m. ET Chief Executive Officer — James R. Brickman Chief Financial Officer — Jeffery Cox President and Chief Operating Officer — Jed Dolson James R. Brickman: Thank you, Jeff. I am pleased to announce our first quarter results, particularly given that we achieved these results against the backdrop of ongoing and persistent affordability challenges faced by many consumers in the housing market, as well as increasing uncertainty and volatility for consumers caused by domestic and global events and trends ranging from increasing gas prices to job concerns in this new AI era. Despite these challenges, our team's effort and disciplined approach led to another excellent quarter for our business and our shareholders. Net income attributable to Green Brick Partners, Inc. for the first quarter was $61 million, or $1.39 per diluted share, on total revenues of $465 million. We delivered 908 homes in the quarter, only two less than in Q1 2025, and we had 1,037 net new orders. We achieved this despite, as we mentioned on our last call, losing about seven selling days in January due to inclement weather in DFW, our largest market. Orders have increased sequentially each month of the quarter, with market sales outpacing the same period in 2025. This was more in line with a normal spring selling season. We believe our aggressive, great balance sheet and low financial leverage provide us with the flexibility to navigate and take advantage of evolving market conditions. At the end of Q1, our homebuilding debt to total capital ratio decreased to 11.5%, and our net homebuilding debt to total capital ratio decreased to 5.5%, among the lowest of our public homebuilding peers. We also have $475 million in available liquidity. Our industry-leading homebuilding gross margins of 28.9% give us the flexibility to profitably adjust the pricing of our homes to respond to market conditions. We believe the foundation of our industry-leading gross margin starts with our commitment to owning and developing land. We remain highly disciplined in how we control land. One of the primary differentiators from many of our peers is that we do not engage in off-balance sheet, high interest cost land banking arrangements that can distort a builder's economic leverage and risk, and that can give a land banker indirect control over a builder's lot purchase timing. At the end of the first quarter, 77% of our approximately 49,000 lots are owned. We have 3,400 lots owned or under contract in four joint ventures with other homebuilders or landowners. These joint ventures account for 7% of our total lots owned and controlled and only 2.9% of our total assets. These joint ventures are evaluated with the same underwriting criteria as our other land investments to ensure that we remain focused on attractive risk-adjusted returns and protect shareholder value. As many of you who follow our company know, this disciplined approach to land acquisition and development is not a new philosophy for our company. We have always believed that a self-development-focused strategy provides us with better capital efficiency and returns, allowing us to make higher margins, lower cost, and enhanced inventory control so that we can better determine the pace of land and lot deliveries. We generated strong operating cash flows of $56 million for the quarter. In the last twelve months, we generated [inaudible] in operating cash flows, and returned $74 million to shareholders through repurchases. Even with our land-heavy balance sheet and macroeconomic headwinds, we delivered strong returns during the quarter of 9.6% return on assets and 13.1% return on equity, among the very best of public homebuilding peers. Our disciplined, returns-focused approach and our experienced team of operators position us well for future value creation. This quarter, we began reporting on financial services operations as a separate segment due to the strong growth of our wholly owned mortgage company. Rendrick Mortgage was founded in 2024 and funded its first loan in 2025. During 2025, Green Brick Mortgage grew rapidly, and by the end of Q1 2026, was serving all of our Texas entities. For the first quarter, revenues for Green Brick Mortgage increased from $1.3 million to $5.6 million year over year as the number of funded loans increased by almost 250%. Pretax income from our financial services segment increased year over year by 139% in Q1 to $4.3 million. While the macroeconomic landscape presents short-term headwinds for the entire industry, we believe the core strengths that have driven Green Brick Partners, Inc.'s success over the past decade will enable us to continue to navigate any challenges with confidence and flexibility. As always, we will focus on maintaining operational excellence, centered on our disciplined approach to land acquisition and development, to position us for future growth and ensuring we continue to build out our team of experienced, dedicated employees who drive our growth and provide a quality home and buyer experience for our customers. We believe we are well positioned to sustain our peer-leading return metrics and provide long-term value to our shareholders. We remain focused on growing our business, particularly our Trophy brand. Trophy's continued growth in DFW and Austin, combined with our first community opening in Houston in Q1, presents significant opportunities for sustained growth for the next few years. This expansion allows us to continue serving the critical first-time and first move-up buyer segments while further diversifying our revenue base and strengthening our presence in key Texas markets. With that, I will now turn it over to Jeff to provide more detail regarding our financial results. Jeffery Cox: Thank you, James. I want to take a few minutes to address the Form 8-Ks that were filed yesterday in which we concluded that certain closing cost incentives offered to our buyers had been previously incorrectly classified as cost of residential units, rather than as a reduction of the transaction price. After evaluating these issues under ASC 606, we determined that we will restate our previously issued audited consolidated statements of income for the years ended December 2024 and 2025 included in the annual report on Form 10-K, and the unaudited condensed consolidated statements of income for the quarters ended in 2025 and 2024, to reflect the reclassification of closing cost incentives as a reduction in revenue rather than as a cost of residential units. This reclassification of closing cost incentives will not impact any prior period's reported gross profits, operating income, net income, earnings per share, cash flow, debt covenant compliance, shareholders' equity, or the strong underlying economics of the company's operations and business. The impact will be a reduction in home sales revenues and associated average sales prices, and an improvement to our gross margins. We are currently in the process of completing the restatement of our prior period financial statements and expect to file an amended annual report on Form 10-K. However, our comments today reflect these changes for prior periods referenced. We have also filed an 8-K that sets forth our preliminary assessments of the impact of this reclassification for the years ended December 2024 and 2025 as well as each of the quarters in 2025 and 2024. Our first quarter 2026 results are not affected by the pending restatement. Net income attributable to Green Brick Partners, Inc. for the first quarter decreased 18.8% year over year to $61 million, and diluted earnings per share decreased 16.8% year over year to $1.39 per share. SG&A as a percentage of residential unit revenue for the first quarter was 11.7%, an increase of 80 basis points year over year, driven primarily by mix and higher discounts and incentives. Given the challenging economic conditions and oversupply of housing inventories in our markets, discounts and incentives increased year over year as a percentage of home closing revenue to 10.1% from 6.8%. Our average sales price of $493,000 was down 4.1% sequentially and down 6.9% year over year. Home closings revenue of $448 million on 908 deliveries declined 7.1% compared to the same period last year, and our homebuilding gross margins decreased 320 basis points year over year and 140 basis points sequentially to 28.9%. Sixty-three percent of our Q1 closings were sold during the quarter, driven largely by our Trophy Signature Homes brand. We started 979 new homes, an increase of 13% year over year and 11% sequentially due to increasing buyer demand in the quarter. Units under construction at the end of the quarter were 2,119, down 7.7% year over year but up 3.5% sequentially as we increased starts in Q1 to better match our sales pace. We ended the quarter with 419 completed specs, an average of 4.1 per community, a reduction of 13% from Q4. We will continue to monitor market conditions and seasonal trends, and align our starts with our sales pace to appropriately manage our investment in spec inventory. Our goal is to maintain approximately 1.5 months of supply of completed spec in our communities. Primarily due to adverse weather in January, we saw a 7.1% decline in traffic year over year during the quarter. Net new home orders during the first quarter were 1,037, down 6.2% year over year. Average active selling communities of 103 were down 1% year over year. As a result, our sales pace for the first quarter decreased slightly to 3.4 per month compared to 3.5 per month in the previous year. As noted in our prior call, we still expect community count to increase in the second half of the year. Our backlog at the end of the first quarter was 649 units with backlog revenue of $381 million, a 35% decrease year over year. We experienced a significant shift because Trophy Signature Homes represented 40% of our backlog units compared to 27% in 2025. As a result of the increased mix of Trophy orders in our backlog, along with continued elevated discounts and incentives across all of our brands, backlog ASP decreased 13% to $587,000. In Q1, we repurchased 114,000 shares of our common stock for approximately $7 million, with $160 million remaining in authorized share repurchases. We will continue to repurchase shares opportunistically as part of our disciplined capital allocation strategy and efforts to return value to our shareholders. During Q1, we terminated our secured revolving credit facility, and as of quarter end, we had no outstanding borrowings on our $330 million unsecured revolving credit facility. At the end of the quarter, we maintained a robust cash position of $145 million and total liquidity of $475 million. We believe we are well positioned to weather the challenging market conditions and ongoing volatility, to opportunistically deploy capital to maximize shareholder return, and to accelerate growth as the housing market improves. With that, I will now turn it over to Jed. Jed Dolson: Thank you, Jeff. We continue to see a challenging sales environment within all our consumer segments, but we are encouraged by the positive response we have seen from first-time homebuyers who are most impacted by affordability challenges and a weakening job market. Our team responded well to these conditions, as evidenced by our relatively strong first quarter sales volume and low cancellation rate of 7.7% during the quarter, which continues to be one of the lowest cancellation rates in the public homebuilding industry. We believe it demonstrates the creditworthiness of our buyers, the quality of our product, and the desirability of our communities. Rate buydowns remain a necessary tool to drive traffic and sales, especially with first-time homebuyers and quick move-in homes, and we helped address the affordability challenges faced by many consumers by providing our homebuyers with price concessions, interest rate buydowns, and closing cost incentives. Incentives for net new orders during the quarter were 9.9%, an increase of 320 basis points year over year although a decrease of 30 basis points from the prior quarter. With our superior infill and infill-adjacent communities and industry-leading gross margins, we believe we are strategically positioned to adjust pricing as needed to meet market demand and maintain our sales pace. While we recognize the importance of preserving our margins, we also recognize that our industry-leading margins provide us with significant pricing flexibility to compete effectively in a volatile market and drive sales pace when appropriate. We are also excited about the progress of our wholly owned mortgage company. During the first quarter, Green Brick Mortgage closed and funded over 300 loans. The average FICO score was 742 and the average debt-to-income ratio was just under 40%, consistent with the previous quarter. We completed the rollout of Green Brick Mortgage to all of our Texas communities in the quarter, and we expect to roll out Green Brick Mortgage to The Providence Group, our Atlanta builder, in the latter part of 2026. As Green Brick Mortgage continues to expand its service to most of our communities, we anticipate that by year end, its capture rate will range from 70% to 80%, which should generate additional revenue as we increase the number of loans funded through our mortgage company. We continue to reduce our construction cycle times, which were down 25 days from a year ago to under 130 days. Trophy's average cycle time in Dallas–Fort Worth was under 90 days, the lowest in their history, and a testament to the efficiency and quality of our construction teams and trade partner base. While labor availability remains relatively stable across all our markets, we are monitoring potential cost increases related to the rise in oil prices. We remain engaged with our trade partners to monitor potential cost pressures and will adjust as necessary. As part of our efforts to position ourselves for future growth, during the quarter, we invested approximately $89 million in land and lot acquisitions and $78 million in land development, excluding reimbursements. For 2026, we expect land and lot acquisitions of approximately $400 million and land development outflows of approximately $420 million, excluding reimbursements. We believe our superior land position provides a competitive advantage that will be the foundation for strong growth in subsequent years. Approximately 38,000 of our lots are owned, with approximately 11,000 lots under option contracts. Approximately 75% of our total lots owned and under contract are allocated to Trophy Signature Homes. Excluding approximately 25,000 lots in long-term master plan communities, our lot supply is approximately six years. With approximately 49,000 lots owned and under contract, we remain patient and selective with future land opportunities without compromising the ability to grow our business in the near and intermediate term. With that, I will turn it over to James for closing remarks. James R. Brickman: Thank you, Jed. In closing, we remain confident in our long-term outlook and our ability to continue to deliver excellent operational and financial results. Our land strategy, diversified product portfolio, and strong balance sheet continue to differentiate Green Brick Partners, Inc. from our peers and support attractive returns for our shareholders over the long term. Like the rest of our industry, we continue to navigate a challenging environment, but I am hopeful that the market is starting to find a more stable footing and normalization. I believe that 2026 will be a year that we lay a foundation so that we can execute our strategy and accelerate our growth in the coming years. With all of these challenges, I would like to recognize our team for their disciplined execution and resilience successfully navigating this market. Our results would not be possible without their focus, leadership, and commitment. This concludes our prepared remarks. We will now open the call for questions. Operator: Thank you. If you would like to ask a question, please press 1 on your telephone keypad. We ask that you limit yourself to one question and one follow-up and rejoin the queue if needed. Your first question comes from Ryan Gilbert of BTIG. Your line is open. Ryan Gilbert: Hey, thanks, guys. It is definitely encouraging to hear that demand improved throughout the quarter. Can you give us an update on how things are looking so far in April in terms of traffic and sales pace? James R. Brickman: Jed, why do you not take that? Jed Dolson: I would say April is looking very similar to March, so we are still on a strong spring season. Ryan Gilbert: Got it. And then just around your commentary about the challenging sales environment, but you are still seeing consumer response to the incentives that you are offering, I am just curious, James or maybe Jed, if you could expand on how long you think this can last, or if you expect a weakening labor market to pressure first-time homebuyers. It does not seem like that has been the case so far, but just looking ahead, what are you thinking? James R. Brickman: We are seeing strong demand. It is very elastic demand, meaning that the buyers are very educated, and a small movement in pricing can really accelerate sales velocity. One of the things we are very encouraged about is that because our pretax margins are so high—they are running around 17% or just under—we have tremendous flexibility if we need to get a buyer that wants a slight discount in the home even from current levels. Pretty much, we are not seeing that happening right now. We think that things may have bottomed, but if you can predict interest rates, I will tell you what our margins are going to look like, because they are highly correlated right now, and we are not getting a lot of relief from the interest rate front. Jed, do you have anything you want to add to that? Jed Dolson: I would just say the past week has been rough on mortgage rates, and that can cause—just a little change in mortgage rates can cause a 1% decline in gross margin for us. Ryan Gilbert: Okay. Got it. Thank you, guys. Operator: Your next question comes from Jay McCanless with Citizens Bank. Your line is open. Jay McCanless: Hey, good afternoon, everyone. First question I had: what are you seeing in the land market right now? Are land prices still continuing to go up, or are you seeing some areas where maybe you are getting a little bit of a break, or maybe land inflation is slowing down a little bit? James R. Brickman: That is a good question, Jay. What we are seeing is on C-minus and D-location lots, builders are wanting to peddle those. Obviously, the only buyer is other builders, and if a builder wants to peddle a lot in the C-minus or D-location, he wants to do it because he is not making margins. So it is really not attractive to another builder to buy, and it is not distressed enough to have us get interested. So that is what is taking place really in the perimeter locations—the further out perimeter locations. Interestingly, and conversely, high-margin land in the more infill or employment-centric areas is still in high demand. One of the things we are very excited about: we bought a large tract yesterday that we had been working on for—how long, Jed? Two years? Two years. It was complicated. It had a lot of moving parts. We are really excited about it because we have the balance sheet to take this down—other people do not. We have the management team to do the entitlement, sewer, water, and all of the other challenges that come with a large master plan property, and we feel really good about that because it is a barrier to entry. All these land-light guys just could not pull that kind of transaction off. Jay McCanless: Speaking of infill versus Trophy and some of your higher-end brands versus Trophy, which performed better during the quarter? Was it move-up? Was it entry level? What were you seeing in terms of demand between the different buyer segments? James R. Brickman: It was spotty, I think, is the best way to define it. Trophy was a star. We found that—and Jed can elaborate on that—there is a very large pool of buyers, sub-$350,000, and Trophy can meet that price point and still make really nice margins. Florida did good. Atlanta slowed down in its market. We were surprised because Atlanta was traditionally very strong, even in the infill markets. Jed, what do you want to add to that? Jed Dolson: I would just say that luxury continued to do well for us—and for us, that is homes priced in the $900,000-and-up range. We saw spottiness in, say, the $500,000 to $800,000 range where we had some good months, some bad months, depending on what submarket. We are really encouraged in Dallas that in March and April, we really hit good numbers with that buyer, which is typically a cultural buyer. To sum it all up, I would say we feel really good about luxury, and we feel really good about entry level, and the stuff in the middle is more challenging. James R. Brickman: And some of the stuff in the middle that Jed was talking about—this $500,000 to $800,000 price point—one of the reasons why we think it is so much slower are our immigration policies. Many of those homes are sold to physicians and higher-income people, and the current administration is making it uncertain for those people, and it is impacting housing as a result. Jay McCanless: Any concerns or issues with other builders maybe having built a little too much at that price point and having to be more aggressive on the discounting there? James R. Brickman: I think in some markets it is fairly isolated. Jed and I were talking about it this morning that it can affect some markets. Generally, I am not worried about it. And again, one of the reasons I am not worried about it is because if we are making a 17% pretax margin and we are competing against a builder that is making a 3% pretax margin down the street—that is land-light—those guys have given about all they can give, and we are just kind of waiting and seeing what happens. Jay McCanless: Congrats on Houston. Over time, how many communities do you think Green Brick Partners, Inc. can have in that market? And is it always going to be a Trophy market, or are you going to look to do some infill properties? James R. Brickman: Right now, strategically, what we want to do is enter any market that really has to be a top 10 to 12 city market because Trophy is going to be our scalable brand that goes into that market. To be effective, we are still going to self-develop, and we want to have a really experienced land team and a land acquisition team that has strategic advantages. That is going to make us really under larger markets. We are looking at San Antonio right now. I think the probability of us bringing other brands there is probably unlikely at this point, but you should never say never. Operator: Your next question comes from Alex Rygiel with Texas Capital. Your line is open. Alex Rygiel: Thank you. Given the mix of backlog of Trophy Signature Homes, should we model ASPs declining through 2026? Jed Dolson: I think it is a mix issue more than a backlog issue. As you know, we are seeing very strong demand at the entry level. If that becomes a bigger percentage of our sales, then ASP would go down. Alex Rygiel: And how do sales of the Houston market affect ASPs? Jed Dolson: Houston will continue to bring ASP down. When you look at the biggest markets based on Q1 starts, DFW is the largest, and Houston was the second, and there was a huge drop-off to Phoenix, which was third. Dallas was the third biggest by units, and we think we will probably end up being the second biggest this year by revenue, trailing only D.R. Horton. Those are really big markets, but to have really big markets, you need very affordable housing. So the ASP in Houston will be lower than Dallas, but those are two very strong markets. We are going to continue to grow our market share in Dallas, and we are excited about the early success in Houston. We look forward to, in the near future, being a more dominant player there. Alex Rygiel: And then as it relates to your comments about April being sort of in line with March, is that typical historically? Jed Dolson: We have gone and looked at a lot of historical trends recently, and so much of it correlates with what interest rates were for every April versus every March going backwards. For the most part, yes, what we typically see is April is just a little bit weaker than March, and then May—because of graduations and so forth and the beginning of summer—the spring season really concludes in May, and then you enter the summer season. Operator: Your next question comes from Rohit Seth with B. Riley Securities. Your line is open. Rohit, perhaps your line is on mute. Rohit Seth: Hey, thanks for taking my question. Just on sales pace—you had a good turnout in the first quarter. It looks like you have some levers with your strong margins. Do you think you can maintain the sales pace that you had in the prior year from 2Q to 4Q—kind of average about three homes per month? Jeffery Cox: Yes, Rohit, this is Jeff. I think that is very doable when we look at the historical trends that Jed mentioned earlier. We were about 2.97 last year in Q2 and 2.91 in Q3. When we look at how we performed this quarter compared to last year, we are down a little bit, but keep in mind, we did have that weather event that James referenced earlier in his remarks. So we tend to be trending generally for the same pace as last year. Rohit Seth: And could you remind me of the spread between Trophy Homes—I know there is a faster sales pace there—and the rest of the book? Jeffery Cox: Trophy was 51% to 52% of our sales in Q1, and we expect them to continue to increase that pace as we continue to grow the brand and expand in Houston and Austin. Seventy-five percent of our lots owned and controlled are allocated towards Trophy, so that will continue to increase over time. Rohit Seth: Is Trophy moving something like five units a month, something like that? Jed Dolson: It is really neighborhood dependent. I will answer it this way: we have some communities that have two different lot sizes where, in Q1, we averaged 20 sales a month. As defined by community count, that would be 10 sales. And then we had others where we averaged three or four. We can pull some better data for you for our next call on that. James R. Brickman: Some of our communities, particularly in the last phases where we have had success and are phasing out, we are milking margin intentionally and maintaining a slower sales pace. Rohit Seth: Is there maybe a margin floor where you are not willing to breach? James R. Brickman: No. We do not look at it that way. We are always modeling internal rate of return and sales pace and price. It is a little bit more complex than that because we also want to get our capital returned on our lots and look at the redeployment of that capital. So it is a little more complicated than just saying we will sell houses based upon margin. It is the sales pace that comes with the margin and the capital that comes in from that lot sale that goes into the calculus. Jeffery Cox: And obviously, when we are reporting 28.9% gross margins, and we have peers that are reporting 15% to 16%, we feel excited about the coming months and our ability to adjust prices as needed. Operator: This concludes the question and answer session. I will turn the call to James R. Brickman for closing remarks. James R. Brickman: Thank you, everybody, for attending our call. We are always delighted to have anybody call Jeff, Jed, or myself with follow-up questions and would really encourage you to do that. We can get into a little bit more detail about some of the master plan communities we are really excited about. Thank you for the call. Operator: This concludes today's conference call. Thank you for joining. You may now disconnect. Before you buy stock in Green Brick Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Green Brick Partners wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,797!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,282,815!* Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Green Brick Partners. The Motley Fool has a disclosure policy. Green Brick (GRBK) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $465 million for Q1 2026. Net Income: $61 million, or $1.39 per diluted share. Home Deliveries: 908 homes delivered in Q1 2026. Net New Orders: 1,037 net new orders in Q1 2026. Gross Margin: 28.9% for homebuilding operations. Homebuilding Debt to Total Capital Ratio: 11.5%. Net Homebuilding Debt to Total Capital Ratio: 5.5%. Available Liquidity: $475 million. Operating Cash Flow: $56 million for Q1 2026. Return on Assets: 9.6% for the quarter. Return on Equity: 13.1% for the quarter. GreenBrick Mortgage Revenue: Increased to $5.6 million, up from $1.3 million year-over-year. Pre-tax Income from Financial Services: Increased 139% year-over-year to $4.3 million. SG&A as a Percentage of Revenue: 11.7%, up 80 basis points year-over-year. Average Sales Price: $493,000, down 6.9% year-over-year. Home Closings Revenue: $448 million on 908 deliveries, down 7.1% year-over-year. Units Under Construction: 2,119, down 7.7% year-over-year. Backlog Revenue: $381 million, a 35% decrease year-over-year. Share Repurchases: 114,000 shares repurchased for approximately $7 million. Cash Position: $145 million at the end of Q1 2026. Warning! GuruFocus has detected 3 Warning Sign with GRBK. Is GRBK fairly valued? Test your thesis with our free DCF calculator. Release Date: April 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Green Brick Partners Inc (NYSE:GRBK) reported a net income of $61 million for Q1 2026, demonstrating strong financial performance despite market challenges. The company achieved industry-leading homebuilding gross margins of 28.9%, providing flexibility to adjust pricing in response to market conditions. Green Brick Partners Inc (NYSE:GRBK) has a low financial leverage with a homebuilding debt to total capital ratio of 11.5%, and a net homebuilding debt to total capital ratio of 5.5%. The company's wholly-owned mortgage company, Green Brick Mortgage, showed significant growth with revenues increasing from $1.3 million to $5.6 million year-over-year. Green Brick Partners Inc (NYSE:GRBK) maintains a robust cash position of $145 million and total liquidity of $475 million, positioning it well to navigate market volatility. Net income for Q1 2026 decreased by 18.8% year-over-year, indicating some financial pressure. The average sales price of homes decreased by 6.9% year-over-year, reflecting pricing challenges in the market. Home closings revenue declined by 7.1% compared to the same period last year, indicating a slowdown in sales. The backlog at the end of Q1 2026 decreased by 35% year-over-year, suggesting potential future revenue challenges. The company is facing increased discounts and incentives, which rose to 10.1% of home closing revenue, up from 6.8% the previous year, impacting profitability. Q: Can you give us an update on how things are looking so far in April in terms of traffic and sales pace? A: Jed Dolson, President, Chief Operating Officer: April is looking very similar to March, indicating a strong spring season. Q: How long do you think the current sales environment with consumer incentives will last, and do you expect a weakening labor market to pressure first-time homebuyers? A: James Brickman, Chief Executive Officer: We are seeing strong demand, which is elastic. Small pricing movements can accelerate sales velocity. Our high pre-tax margins give us flexibility to offer discounts if needed. The market may have bottomed, but interest rates remain a key factor. Q: What are you seeing in the land market right now? Are land prices still increasing, or is there a slowdown? A: James Brickman, Chief Executive Officer: High-margin land in infill or employment-centric locations remains in high demand. We recently acquired a large tract after two years of negotiations, showcasing our capability to handle complex transactions. Q: How did different buyer segments perform during the quarter, particularly between move-up and entry-level homes? A: James Brickman, Chief Executive Officer: Trophy Signature Homes performed well, especially in the sub-$350,000 range. Luxury homes priced at $900,000 and up also did well. The $500,000 to $800,000 range was more challenging, partly due to immigration policy impacts. Q: Given the mixed backlog of Trophy homes, should we model ASPs declining through 2026? A: Jed Dolson, President, Chief Operating Officer: It's more of a mix issue than a backlog issue. Strong demand at the entry level could lower ASPs if it becomes a larger percentage of sales. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Management attributed the quarter's resilience to a disciplined self-development land strategy, which provides superior inventory control and higher margins compared to peers using land-banking arrangements. Performance was impacted by persistent consumer affordability challenges and a loss of seven selling days in January due to inclement weather in the Dallas-Fort Worth market. The company maintained industry-leading homebuilding gross margins of 28.9%, providing significant pricing flexibility to respond to volatile market conditions and interest rate fluctuations. Strategic expansion of the Trophy Signature Homes brand into Houston and Austin is a primary driver for capturing the first-time and first move-up buyer segments. The transition of financial services into a separate reporting segment reflects the rapid growth of Green Brick Mortgage, which funded nearly 250% more loans year-over-year. Management emphasized a strong balance sheet with a 5.5% net homebuilding debt-to-total capital ratio, among the lowest in the public homebuilding sector. The company expects community counts to increase in the second half of 2026, supporting long-term growth targets. Guidance for 2026 includes approximately $400 million in land and lot acquisitions and $420 million in land development outflows to build a foundation for future acceleration. Green Brick Mortgage is projected to achieve a capture rate of 70% to 80% by year-end as it expands services to the Atlanta market in late 2026. Management anticipates that the Trophy brand will continue to increase its share of total sales, supported by 75% of the company's total lot pipeline being allocated to that brand. Future margin performance remains highly correlated with interest rate movements, with management noting that small rate changes can impact gross margins by approximately 1%. The company is restating 2024 and 2025 financial statements to reclassify closing cost incentives as a reduction in revenue rather than a cost of units; this has no impact on net income or cash flow. Management flagged potential cost pressures related to rising oil prices and is monitoring trade partner pricing for impact on construction costs. A significant shift in backlog mix was noted, with Trophy Signature Homes now representing 40% of backlog units, contributing to a 13% decrease in backlog average sales price. The company terminated its secured revolving credit facility in favor of an unsecured $330 million facility to enhance financial flexibility. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management stated that April demand is tracking similarly to March, indicating a stable spring selling season despite recent mortgage rate volatility. Demand is described as highly elastic, where small price adjustments can significantly accelerate sales velocity. Management is seeing weakness in 'C-minus' and 'D' perimeter locations but remains aggressive in acquiring high-margin, infill-adjacent land. The company's ability to self-develop large, complex master-planned communities is viewed as a significant barrier to entry for 'land-light' competitors. The entry-level (sub-$350,000) and luxury ($900,000+) segments are performing well, while the 'middle' market ($500,000 to $800,000) remains more challenging. Atlanta has seen a surprising slowdown, while the new Houston market is expected to lower overall ASP but drive significant unit volume. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.