Overview

* Green Brick ( GRBK ) Q2 revenue misses analyst expectations, per LSEG data

* Diluted EPS for Q2 declines 20.3% yr/yr

* Record new home deliveries and net new orders for any second quarter

Outlook

* Company expects 2025 land development spending to be about $300 mln

Result Drivers

* NEW HOME DELIVERIES - Record deliveries of 1,042 units, up 5.6% YOY, despite softer housing market

* PRICES DROP - Deliveries growth offset by lower average sales price mainly on increased discounts and incentives

* SALES INCENTIVES - Increased discounts and incentives led to a 5.3% decline in average sales price, affecting revenue

* GROSS MARGIN DECLINE - Homebuilding gross margins fell 410 bps YOY due to higher incentives and lower sales prices

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $549.15 $550.30

Revenue mln mln (3

Analysts

)

Q2 Net $81.95

Income mln

Q2 30.4%

Homebuil

ding

Gross

Margin

Q2 Gross $167.51

Profit mln

Q2 $112.29

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the homebuilding peer group is "buy."

* Wall Street's median 12-month price target for Green Brick Partners Inc ( GRBK ) is $66.50, about 1% above its July 29 closing price of $65.82

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)