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--(BUSINESS WIRE)-- 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	%
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.

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

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

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	%

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.

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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226315881/en/

Benting Hu

Vice President of Finance

469-573-6755

IR@greenbrickpartners.com

Source: Green Brick Partners, Inc.