M.D.C. Holdings, Inc. reported a net income of $323.2 million for the fiscal year ending December 31, 2024, reflecting a 19% decrease from the previous year's net income of $401.0 million. The decline was primarily attributed to a significant drop in pretax income from the Corporate segment, which decreased by $174.6 million, offset slightly by increases in pretax income from both homebuilding and financial services segments. Homebuilding pretax income rose to $311.5 million, an 8% increase from the prior year, driven by a 17% increase in home sale revenues, which totaled $5.29 billion, compared to $4.52 billion in 2023.
The company underwent a major strategic shift during the year, transitioning from build-to-order homes to a focus on speculative homes, which are built without specific buyer contracts. This pivot was in response to changing consumer preferences and market conditions, particularly the rising interest rates that have affected homebuyer demand. As a result, the backlog of homes under contract decreased significantly, from 1,890 homes valued at $1.16 billion at the end of 2023 to just 390 homes valued at $241.1 million by the end of 2024.
Operationally, M.D.C. Holdings maintained 20 active homebuilding divisions as of December 31, 2024, a slight decrease from 19 divisions in 2023. The company reported a total employee headcount of 1,826, up from 1,760 the previous year. The financial services segment also saw growth, with revenues increasing by 21% to $148.7 million, driven by higher mortgage origination volumes and improved capture rates. The mortgage operations captured 76% of all homes delivered, up from 66% in 2023.
The company completed a significant merger on April 19, 2024, with SH Residential Holdings, LLC, resulting in M.D.C. Holdings becoming a wholly-owned subsidiary. This merger led to the delisting of the company's common stock from the New York Stock Exchange and a shift in its reporting obligations. The merger incurred transaction costs of $39.4 million, which impacted the overall financial performance for the year. Looking ahead, M.D.C. Holdings expressed confidence in navigating potential market volatility, supported by a strong liquidity position of $1.72 billion and no senior note maturities until 2030.
About M.D.C. HOLDINGS, INC.
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