Green Brick Partners Reports $497.6 Million Revenue in Q1 2025, Net Income Declines

Green Brick Partners, Inc. reported a total revenue of $497.6 million for the first quarter of 2025, marking a 11.2% increase from $447.3 million in the same period of 2024. The company's residential units revenue rose to $495.3 million, up from $443.3 million, driven by a 10.8% increase in new homes delivered. However, land and lots revenue decreased significantly to $2.3 million from $4.1 million, reflecting a 43.2% decline. The company's net income attributable to Green Brick Partners fell to $75.1 million, or $1.67 per diluted share, compared to $83.3 million, or $1.82 per diluted share, in the prior year.

The financial performance indicates a mixed outcome compared to the previous fiscal period. While total revenues and residential units revenue increased, net income and profitability metrics showed a decline. The gross profit for the quarter was $155.8 million, up from $148.3 million, but the gross margin percentage for residential units decreased to 31.2% from 33.4%, attributed to higher costs associated with labor, materials, and increased sales incentives to counteract high mortgage rates.

Operationally, Green Brick Partners experienced a 10.6% increase in average active selling communities, which contributed to the rise in home deliveries. The company reported 910 new homes delivered during the quarter, compared to 821 in the previous year. However, the cancellation rate for sales contracts increased to 6.1% from 4.1%, indicating potential challenges in maintaining sales momentum. The backlog revenue decreased by 18.1% year-over-year, reflecting a decline in homes under sales contracts that have not yet closed.

Strategically, Green Brick Partners has initiated a $100 million stock repurchase program, which replaced a previous plan with a remaining authorization of $55.9 million. During the first quarter, the company repurchased 282,821 shares for approximately $16.7 million. Additionally, the company has made investments in unconsolidated entities totaling $11.2 million, reflecting its ongoing commitment to growth and expansion in the housing market. The company’s liquidity position remains strong, with $134.9 million in cash and cash equivalents as of March 31, 2025.

Looking ahead, Green Brick Partners anticipates continued demand for new homes, supported by its strategic focus on high-growth markets and improved operational efficiencies. However, the company acknowledges potential risks, including rising interest rates and economic uncertainties that could impact homebuyer financing and overall market conditions. The management remains committed to leveraging its strong balance sheet to navigate these challenges and capitalize on growth opportunities in the residential construction sector.