GREEN BRICK PARTNERS, INC. REPORTS RECORD FOURTH QUARTER AND FULL YEAR 2024 RESULTS
RECORD Q4 HOME CLOSINGS REVENUE OF $557M, UP 24.2% YOY
DILUTED EPS OF $2.31, A RECORD FOR ANY FOURTH QUARTER, UP 46.2% YOY
RECORD FULL-YEAR HOMEBUILDING GROSS MARGIN OF 33.8%, UP 290 BPS YOY
NET NEW HOME ORDERS OF 878, A RECORD FOR ANY FOURTH QUARTER, UP 29.3% YOY
DEBT TO TOTAL CAPITAL OF 17.2%; NET DEBT TO TOTAL CAPITAL OF 10.7%
BOARD INCREASES SHARE REPURCHASE AUTHORIZATION TO $100M
PLANO, Texas, February 26, 2025 — Green Brick Partners, Inc. (NYSE: GRBK) (“we,” “Green Brick” or the “Company”), today reported record results for its fourth quarter and full year ended December 31, 2024.
Green Brick finished 2024 with a record full-year diluted EPS of $8.45, up 37.6% year over year, and record total revenues of $2.1 billion, up 18.1% year over year.
“We are extremely proud to celebrate our 10th anniversary as a public homebuilder with record quarterly and full-year results while exceeding $2 billion in home closings revenue for the first time.” said Jim Brickman, CEO and Co-Founder. “During the fourth quarter, we closed a record 1,019 homes, which brought our full-year closings to 3,783, a year-over-year increase of 21.1%. Homebuilding gross margin was 33.8% on deliveries for the year, which was a record and represented a year-over-year increase of 290 bps. Our homebuilding gross margins again led our industry.”
“Our fourth quarter net new orders increased 29.3% year over year to 878 homes. Our growth engine, Trophy Signature Homes continued to represent the lion’s share of total sales orders at 53.6% of homes sold. For the fourth quarter, incentives averaged 6.4%, up slightly from 5.9% the previous quarter in the face of increasing mortgage rates. Our cancellation rate remained low at 7.8%.” Mr. Brickman added, “As a result of our strong operating performance, fully-diluted EPS was $2.31 for the quarter and $8.45 for the full year, up 46.2% and 37.6% year over year respectively. These achievements are attributable to our footprint in desirable infill and infill-adjacent submarkets where we continued to generate over 80% of our full-year revenues. Return on equity for the full year was 26.8% vs 24.9% in 2023. Notably, this growth was achieved while maintaining low financial leverage. Our debt-to-total-capital ratio was 17.2% at the end of 2024, which was down 390 bps to our lowest year-end level since 2015.”
“We entered 2025 with a strong position for growth with total lots owned and controlled up 31.9% year over year,” continued Mr. Brickman. “At the end of 2024, we had 106 active selling communities, representing a 16.5% year-over-year growth. New home starts of 4,067 for the year were up 22.2%. Additionally, we owned over 4,700 finished lots at the end of 2024, over 80% of which are in infill and infill-adjacent submarkets where supply is more constrained. We remain optimistic on the housing market over the long term, which is supported by demographic tailwinds and persistent housing shortages. We have a great land and lot position. On February 17, 2025, our Board approved an increase in our share repurchase authorization to $100 million. Integral to our capital allocation process, we continue to evaluate our land acquisition strategy along with our share repurchase program and other long term company goals”
Results for the Quarter Ended December 31, 2024:
(Dollars in thousands, except per share data)
Three Months Ended December 31,
2024
2023
Change
New homes delivered
1,019
825
23.5
%
Total revenues
$
567,314
$
450,382
26.0
%
Total cost of revenues
373,279
308,754
20.9
%
Total gross profit
$
194,035
$
141,628
37.0
%
Income before income taxes
$
138,094
$
101,843
35.6
%
Net income attributable to Green Brick Partners, Inc.
$
103,813
$
73,020
42.2
%
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Diluted net income attributable to Green Brick Partners, Inc. per common share
$
2.31
$
1.58
46.2
%
Residential units revenue
$
556,855
$
448,525
24.2
%
Average sales price of homes delivered
$
546.5
$
543.5
0.6
%
Homebuilding gross margin percentage
34.3
%
31.4
%
290 bps
Selling, general and administrative expenses as a percentage of residential units revenue
10.9
%
11.4
%
-50 bps
Backlog revenue
$
495,883
$
555,200
(10.7)
%
Homes under construction
2,341
2,057
13.8
%
Results for the Year Ended December 31, 2024:
(Dollars in thousands, except per share data)
Twelve Months Ended December 31,
2024
2023
Change
New homes delivered
3,783
3,123
21.1
%
Total revenues
$
2,098,943
$
1,777,710
18.1
%
Total cost of revenues
1,395,422
1,229,528
13.5
%
Total gross profit
$
703,521
$
548,182
28.3
%
Income before income taxes
$
511,880
$
391,313
30.8
%
Net income attributable to Green Brick Partners, Inc.
$
381,583
$
284,626
34.1
%
Diluted net income attributable to Green Brick Partners, Inc. per common share
$
8.45
$
6.14
37.6
%
Residential units revenue
$
2,070,136
$
1,769,255
17.0
%
Average sales price of homes delivered
$
547.1
$
566.1
(3.4)
%
Homebuilding gross margin percentage
33.8
%
30.9
%
290 bps
Selling, general and administrative expenses as a percentage of residential units revenue
10.9
%
10.9
%
0 bps
Home starts, last 12 months
4,067
3,327
22.2
%
Earnings Conference Call:
We will host our earnings conference call to discuss our fourth quarter ended December 31, 2024 at 12:00 p.m. Eastern Time on Thursday, February 27th, 2025. The call can be accessed by dialing 1-888-660-6353 for domestic participants or 1-929-203-2106 for international participants and should reference meeting number 3162560. Participants may also join the call via webcast at: https://events.q4inc.com/attendee/872399197
A telephone replay of the call will be available through March 29, 2025. To access the telephone replay, the domestic dial-in number is 1-800-770-2030, the international dial-in number is 1-609-800-9909 and the access code is 3162560, or by using the link at investors.greenbrickpartners.com.
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GREEN BRICK PARTNERS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Residential units revenue
$
556,855
$
448,525
$
2,070,136
$
1,769,255
Land and lots revenue
10,459
1,857
28,807
8,455
Total revenues
567,314
450,382
2,098,943
1,777,710
Cost of residential units
365,726
307,479
1,370,888
1,223,079
Cost of land and lots
7,553
1,275
24,534
6,449
Total cost of revenues
373,279
308,754
1,395,422
1,229,528
Total gross profit
194,035
141,628
703,521
548,182
Selling, general and administrative expenses
(60,654)
(50,919)
(226,566)
(192,977)
Equity in income of unconsolidated entities
313
5,477
5,083
16,742
Other income, net
4,400
5,657
29,842
19,366
Income before income taxes
138,094
101,843
511,880
391,313
Income tax expense
22,909
21,484
94,725
84,638
Net income
115,185
80,359
417,155
306,675
Less: Net income attributable to noncontrolling interests
11,372
7,339
35,572
22,049
Net income attributable to Green Brick Partners, Inc.
$
103,813
$
73,020
$
381,583
$
284,626
Net income attributable to Green Brick Partners, Inc. per common share:
Basic
$
2.32
$
1.60
$
8.51
$
6.20
Diluted
$
2.31
$
1.58
$
8.45
$
6.14
Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share:
Basic
44,498
45,160
44,508
45,446
Diluted
44,578
45,635
44,839
45,917
3
GREEN BRICK PARTNERS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
141,543
$
179,756
Restricted cash
18,153
19,703
Receivables
13,858
10,632
Inventory
1,937,732
1,533,223
Investments in unconsolidated entities
60,582
84,654
Right-of-use assets - operating leases
7,242
7,255
Property and equipment, net
6,551
7,054
Earnest money deposits
13,629
16,619
Deferred income tax assets, net
13,984
15,306
Intangible assets, net
282
367
Goodwill
680
680
Other assets
35,758
27,583
Total assets
$
2,249,994
$
1,902,832
LIABILITIES AND EQUITY
Liabilities:
Accounts payable
$
59,746
$
54,321
Accrued expenses
110,068
96,457
Customer and builder deposits
37,068
43,148
Lease liabilities - operating leases
8,343
7,898
Borrowings on lines of credit, net
22,645
(2,328)
Senior unsecured notes, net
299,090
336,207
Notes payable
14,871
12,981
Total liabilities
551,831
548,684
Commitments and contingencies
Redeemable noncontrolling interest in equity of consolidated subsidiary
44,709
36,135
Equity:
Green Brick Partners, Inc. stockholders’ equity
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of December 31, 2024 and December 31, 2023, respectively
47,603
47,603
Common stock, $0.01 par value: 100,000,000 shares authorized; 44,498,097 issued and outstanding as of December 31, 2024 and 45,005,175 issued and outstanding as of December 31, 2023, respectively
445
450
Additional paid-in capital
244,653
255,614
Retained earnings
1,332,714
997,037
Total Green Brick Partners, Inc. stockholders’ equity
1,625,415
1,300,704
Noncontrolling interests
28,039
17,309
Total equity
1,653,454
1,318,013
Total liabilities and equity
$
2,249,994
$
1,902,832
4
GREEN BRICK PARTNERS, INC.
SUPPLEMENTAL INFORMATION
(Unaudited)
Residential Units Revenue and New Homes Delivered (dollars in thousands)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
Change
%
2024
2023
Change
%
Home closings revenue
$
556,855
$
448,395
$
108,460
24.2%
$
2,069,756
$
1,767,788
$
301,968
17.1
%
Mechanic’s lien contracts revenue
—
130
(130)
(100.0)%
380
1,467
(1,087)
(74.1)
%
Residential units revenue
$
556,855
$
448,525
$
108,330
24.2%
$
2,070,136
$
1,769,255
$
300,881
17.0
%
New homes delivered
1,019
825
194
23.5%
3,783
3,123
660
21.1
%
Average sales price of homes delivered
$
546.5
$
543.5
$
3.0
0.6%
$
547.1
$
566.1
$
(19.0)
(3.4)
%
New Home Orders and Backlog (dollars in thousands)
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
Change
%
2024
2023
Change
%
Net new home orders
878
679
199
29.3%
3,681
3,356
325
9.7
%
Revenue from net new home orders
$
470,890
$
381,044
$
89,846
23.6%
$
2,010,439
$
1,953,903
$
56,536
2.9%
Average selling price of net new home orders
$
536.3
$
561.2
$
(24.9)
(4.4)%
$
546.2
$
582.2
$
(36.0)
(6.2)%
Cancellation rate
7.8
%
7.2
%
0.6
%
8.3%
7.3
%
6.6
%
0.7
%
10.6
%
Absorption rate per average active selling community per quarter
8.3
7.6
0.7
9.2%
9.1
9.9
(0.8)
(8.1)
%
Average active selling communities
106
89
17
19.1%
101
85
16
18.8
%
Active selling communities at end of period
106
91
15
16.5%
Backlog revenue
$
495,883
$
555,200
$
(59,317)
(10.7)%
Backlog units
668
770
(102)
(13.2)%
Average sales price of backlog
$
742.3
$
721.0
$
21.3
3.0%
5
GREEN BRICK PARTNERS, INC.
SUPPLEMENTAL INFORMATION
(Unaudited)
December 31, 2024
December 31, 2023
Central
Southeast
Total
Central
Southeast
Total
Lots owned
Finished lots
3,932
790
4,722
4,014
964
4,978
Lots in communities under development
22,524
1,670
24,194
9,122
1,335
10,457
Land held for future development(1)
3,800
—
3,800
8,366
—
8,366
Total lots owned
30,256
2,460
32,716
21,502
2,299
23,801
Lots controlled
Lots under option contracts
806
—
806
1,169
—
1,169
Land under option for future development
1,091
349
1,440
1,710
460
2,170
Lots under option through unconsolidated development joint ventures
2,614
255
2,869
1,210
331
1,541
Total lots controlled
4,511
604
5,115
4,089
791
4,880
Total lots owned and controlled (2)
34,767
3,064
37,831
25,591
3,090
28,681
Percentage of lots owned
87.0
%
80.3
%
86.5
%
84.0
%
74.4
%
83.0
%
(1) Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors.
(2) Total lots excludes lots with homes under construction.
The following table presents additional information on the lots we owned as of December 31, 2024 and December 31, 2023.
December 31, 2024
December 31, 2023
Total lots owned(1)
32,716
23,801
Add certain lots included in Total Lots Controlled
Land under option for future acquisition and development
1,440
2,170
Lots under option through unconsolidated development joint ventures
2,869
1,541
Total lots self-developed
37,025
27,512
Self-developed lots as a percentage of total lots owned and controlled(1)
97.9
%
95.9
%
(1) Total lots owned includes finished lot purchases, which were less than 1.4% of total lots self-developed as of December 31, 2024.
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.
6
The following table represents the non-GAAP measure of adjusted homebuilding gross margin for the twelve months ended December 31, 2024 and 2023 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.
(Unaudited, in thousands):
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
Residential units revenue
$
556,855
$
448,525
$
2,070,136
$
1,769,255
Less: Mechanic’s lien contracts revenue
—
(130)
(380)
(1,467)
Home closings revenue
$
556,855
$
448,395
$
2,069,756
$
1,767,788
Homebuilding gross margin
$
191,140
$
141,010
$
699,143
$
545,654
Homebuilding gross margin percentage
34.3
%
31.4
%
33.8
%
30.9
%
Homebuilding gross margin
191,140
141,010
699,143
545,654
Add back: Capitalized interest charged to cost of revenues
2,741
2,740
11,280
13,196
Add back: Inventory impairment charge
1,488
—
2,796
—
Less: Warranty reserve adjustment
(13,178)
—
(13,178)
—
Adjusted homebuilding gross margin
$
182,191
$
143,750
$
700,041
$
558,850
Adjusted homebuilding gross margin percentage
32.7
%
32.1
%
33.8
%
31.6
%
Net 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 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 debt to total capitalization ratio as of December 31, 2024:
Gross
Cash and cash equivalents
Net
Total debt, net of debt issuance costs
$
336,606
$
(141,543)
$
195,063
Total Green Brick Partners, Inc. stockholders’ equity
1,625,415
—
1,625,415
Total capitalization
$
1,962,021
$
(141,543)
$
1,820,478
Debt to total capitalization ratio
17.2
%
Net debt to total capitalization ratio
10.7
%
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 plans to increase spending on land development; (ii) our strategic advantages, including our focus on owning land and self-developing and on infill and infill-adjacent locations, and the impact on our future results; (iii) our positioning to capture future demand, increase market share and succeed in the current environment, including our ability to maintain industry-leading performance and margins; (iv) our expectations regarding the
7
self-development of our inventory; (v) our ability to successfully implement our growth strategy, including our expectations for expansion and growth of our Trophy brand, including in the Houston market ; (vi) our expectations regarding trends in our markets, such as demographic trends and demand; (vii) our business priorities and our strategies to maintain the strength of our balance sheet and financial flexibility, and our positioning in the industry; (viii) the advantages of our lot and land strategies and locations, including the benefits to our returns, margins and ability to scale; (ix) our investments in land, lots and development in 2025, and the impact on our growth; (x) our flexibility in adjusting home prices; (xi) the demand for home ownership in the markets in which we operate and our ability to capitalize on such demand; and (xii) our ability to deliver efficient and cost-effective growth, including our ability to manage costs and cycle times. 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 qualified 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.
