Green Brick Partners, Inc.

Second-quarter net income attributable to Green Brick was $74 million, down 9.5% year over year, and diluted EPS was $1.70, down 8% year over year. Total revenues were $494 million, while home closings revenue was $472 million on 1,047 homes delivered, essentially unchanged from last year. Homebuilding gross margin was 29.8%, down 150 bps year over year and up 90 bps sequentially; incentives rose to 8.8% of home closings revenue from 7.0% last year, and the company reduced its warranty reserve by $2.7 million, which helped margins by 60 bps. Net new home orders increased 19% to 1,079, average active selling communities rose 6% to 108, and sales pace improved 10% to 3.3 per month. Backlog was 681 units and $387 million in revenue, down 24% year over year. For guidance, management expects community count to continue increasing toward year-end; for 2026, it expects land and lot acquisitions of approximately $400 million and land development outflows of approximately $450 million, excluding reimbursements.

Jim Brickman framed the quarter as proof that Green Brick can keep growing even in a tough housing environment, highlighting strong Trophy demand, disciplined land strategy, and a balance sheet he described as investment-grade and lightly levered. He also emphasized the promotion of Jed Dolson to Co-CEO, calling it part of Green Brick’s leadership development and continuity plan. His tone was confident and strategic, with repeated references to long-term book value growth, selectivity in land, and the company’s ability to adapt as market conditions evolve.

Jeff Cox walked through the main financial drivers: revenue was $494 million, home closings revenue was $472 million, EPS was $1.70, and gross margin was 29.8%. He said lower closings revenue reflected Trophy’s higher mix, while incentives rose 180 bps year over year to 8.8% and SG&A as a percentage of residential units revenue increased 60 bps to 11.3%. On the balance sheet, he highlighted $462 million of total liquidity, including $132 million of cash, no borrowings on the $330 million revolver, and total debt of $252 million excluding warehouse facilities; the company also repurchased about 143,000 shares for $9.4 million and still had $151 million authorized for buybacks.

Analysts focused on why gross margin improved sequentially, where mix and incentives were headed, whether the 66% mortgage capture rate could move toward 70% to 80%, and how July traffic looked after rates moved up. Management said Trophy was driving both volume and margins, with strong sales in DFW and improving traction in Houston and Austin, while July traffic was described as “spotty” across markets. They also said higher rates would likely be absorbed by the company through bigger buydowns rather than passed on to buyers, and that community count should keep growing into year-end.