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- **Resilient Q3 Results:** 898 net orders (2.4% YoY), 953 homes closed, and $78M net income despite 160bps gross margin decline.
- **Strategic Expansion:** Houston community launch in spring 2026, targeting first-time buyers.
- **Operational Efficiency:** 9-day reduction in construction cycle times to 100 days in DFW.
- **Mortgage Growth:** 350 loans closed Q3, with Houston and Atlanta expansion planned.
- **Cost Savings:** Lumber prices falling monthly, subs at 65-70% capacity.
- **Tariff Risks:** Minimal impact expected, but uncertainty remains.


**【CEO Opening Remarks】**
- Announced Jeff Cox's promotion to CFO, highlighting his 20+ years of homebuilding experience and role in establishing the wholly owned mortgage company.
- Reported Q3 2025 results: 898 net orders (2.4% YoY increase), 953 homes closed (near record Q3 results), and $78M net income.
- Emphasized resilience against affordability challenges, maintaining one of the highest gross margins (31.1%) in the industry.
- Trophy brand expansion in DFW and Houston, targeting first-time and move-up buyers.
- Focused on operational excellence, reducing construction cycle times by 9 days YoY.

**【CFO Financial Commentary】**
- Q3 net income attributable to Green Brick was $78M, with diluted EPS of $1.77 (down 13% YoY).
- Homebuilding gross margin declined 160bps YoY to 31.1%, driven by price concessions and incentives (8.1% of revenue).
- SG&A as a percentage of revenue increased to 11.6% YoY due to IT investments.
- Maintained strong liquidity ($142M cash, $457M total liquidity) and investment-grade balance sheet (net debt to capital ratio 9.8%).
- Land and lot development spending of $231M YoY, with potential tariff impacts on construction costs.

**【Q&A Highlights】**
- **Incentives & Market Response:** Rate buydowns (4-5%) and moderating incentives in October, with DFW and Atlanta showing higher velocity communities.
- **Expansion Strategy:** Houston launch planned for spring 2026, with Trophy's cycle time under 100 days.
- **Cost Savings:** Lumber prices falling monthly, subs operating at 65-70% capacity, and labor cost reductions.
- **Mortgage Business Growth:** Green Brick Mortgage closing 350 loans Q3, targeting Houston and Atlanta expansion in 2026.
- **Tariff Concerns:** Minimal expected impact, but uncertainty in timing and scope.


Green Brick Partners, Inc. (GRBK) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GRBK

GRBK fundamentals

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