What drove GRBK's strong earnings performance in Q2?

Green Brick Partners Inc. (GRBK) delivered robust earnings performance in Q2 2024, driven by several key factors:

1. **Record Home Closings Revenue**: Green Brick achieved record home closings revenue of $547 million, marking a 20.4% year-over-year increase. This growth was fueled by closing 987 units, a 26.1% rise from the previous year.
2. **Increased Homebuilding Gross Margin**: The company reported a record homebuilding gross margin of 34.5%, an increase of 320 basis points year-over-year. This significant improvement underscores efficient operational management and market positioning.
3. **Higher Diluted EPS**: Green Brick posted a diluted earnings per share (EPS) of $2.32 for the quarter, reflecting a 42.3% year-over-year increase. This substantial rise in EPS is a testament to the company's profitability and operational efficiency.
4. **Growth in Net New Home Orders**: With net new home orders amounting to 855 units, Green Brick experienced a 4.0% year-over-year increase. This steady growth in orders indicates robust demand for their homes.
5. **Effective Debt Management**: The company maintained a healthy balance between debt and total capital, with a debt-to-total capital ratio of 17.7% and a net debt-to-total capital ratio of 10.9%. This prudent financial management supports Green Brick's stability and ability to invest in growth opportunities.

In summary, Green Brick's strong earnings performance in Q2 2024 is attributed to record home closings, increased gross margins, higher EPS, growth in net new home orders, and effective debt management. These factors combined have contributed to the company's robust financial performance and optimistic outlook for the future.