United Homes Group (UHG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 35.2% year-over-year to $118.6 million, driven by higher home closings and average sales price increases.

• 369 homes closed in Q3 2024, with net new orders up 25% to 341 homes year-over-year.

• Net loss for Q3 2024 was $7.3 million, mainly due to a $7.8 million non-cash fair value change in derivative liabilities.

• For the nine months ended September 30, 2024, net income was $46.2 million.

• Leadership transition with interim CEO Jamie Pirrello and expansion into Raleigh, NC and coastal South Carolina through acquisitions.

Financial highlights

• Q3 2024 revenue: $118.6 million (+35.2% YoY); Q3 net loss: $7.3 million (vs. $150.8 million net income in Q3 2023).

• Gross profit for Q3 2024 was $22.4 million (18.9% margin), with adjusted gross profit margin at 20.6%, both down year-over-year.

• Adjusted EBITDA for Q3 2024 was $9.0 million (7.6% margin); nine-month adjusted EBITDA was $23.9 million.

• Available liquidity at quarter-end was $89 million, including $25.8 million in cash and $63.2 million in unused credit facility.

• Q3 2024 home closings: 369 (+30.4% YoY); average sales price: $320,000 (+1.4% YoY); net new orders: 341 (+25.4% YoY).

Outlook and guidance

• Management expects continued organic and external growth, leveraging a land-light strategy and expansion into high-growth southeastern markets.

• Incentives are expected to remain elevated for the rest of the year due to mortgage rate environment and seasonal slowdown.

• Focus remains on affordable housing and maintaining sufficient inventory to meet delivery goals.

• Strategic initiatives aim to drive growth, lower direct costs, and improve operating leverage.