Green Brick Partners (GRBK) investor relations material

Executive summary

• Achieved record home closings of 1,042 units and net new orders of 908, both up over 5% year-over-year, despite affordability challenges and high interest rates.

• Net income for Q2 2025 was $81.9M ($1.85 per diluted share), down over 20% year-over-year due to lower average sales prices and gross margins.

• Home closings revenue was $547M, essentially flat year-over-year, as higher incentives offset volume gains.

• Maintained industry-leading gross margins above 30% for the ninth consecutive quarter, though margins declined year-over-year.

• Strategic focus remains on operational excellence, cost controls, and targeted expansion, especially in Texas and Atlanta markets, with Houston entry planned for late 2025.

Financial highlights

• Q2 2025 total revenues were $549.1M, down 2% year-over-year; homebuilding gross margin declined 410 bps to 30.4%.

• SG&A as a percentage of revenue increased 40 bps to 10.9%.

• Backlog value at quarter end was $516M on 730 units, down over 20% year-over-year; backlog ASP down 3.3%.

• Year-to-date net income fell 16.8% to $157M; EPS declined 15% to $3.52.

• Incentives as a percentage of revenue rose to 7.7% from 4.5% year-over-year; cancellation rate increased to 9.9%, among the lowest in the industry.

Outlook and guidance

• Projecting ~$300M in land development spending for full year 2025, a 46% increase from 2024.

• Expansion into Houston on track, with first community opening in late 2025; Trophy brand to expand in Austin and Houston.

• Remain selective with land acquisitions, leveraging a strong pipeline of over 40,000 lots for near- and mid-term growth.

• Management expects to navigate near-term headwinds and capitalize on long-term demographic trends.

• Evaluating impact of new tax legislation (OBBBA) on financials.