NYSE$GRBK

Green Brick Partners Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Green Brick reported strong results in Q2 2023, marked by increased new home orders and solid home closings revenue.

Green Brick Partners reported a strong second quarter in 2023, with new home orders up 50.8% and residential units revenue of $454.4 million. The homebuilding gross margin increased to 31.3%, and diluted EPS reached $1.63. Net orders increased 51% year-over-year to 822 homes.

  • New home orders increased by 50.8% for the quarter.
  • Residential units revenue reached $454.4 million, the second highest in company history.
  • Homebuilding gross margin improved to 31.3%, up 370 bps sequentially.
  • Diluted EPS was $1.63, the second highest in company history.

Headline financials

Total Revenue

$456M

Previous: $525M-13.1%
EPS (adj)

$1.63

Previous: $2.08-21.6%
Net New Home Orders

822

Previous: 545+50.8%
Cancellation Rate

7.4%

No prior period
Homebuilding Debt-to-Capital

22.9%

No prior period
Net Debt-to-Capital

10.6%

No prior period
Capital Expenditures

-$2.85M

Previous: -$1.07M-166.0%
Free Cash Flow

$72.4M

Previous: $100M-27.7%
Net Income

$75.3M

Previous: $101M-25.7%
Operating Income

$93.9M

Previous: $127M-26.2%
Gross Profit

$143M

Previous: $169M-15.4%
Cash & Equivalents

$210M

Previous: $66.8M+213.9%
Total Assets

$1.78B

Previous: $1.59B+11.9%

Revenue & EPS history

Green Brick · Revenue · Quarterly

$456M

Q2 2023-13.1%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Green Brick · $456M total across 2 segments · Q2 2023

  • Residential Units
    $454M-11.3%
  • Land and Lots
    $1.84M-85.4%

Forward guidance

The press release contains forward-looking statements regarding the company's position to adapt and succeed, expectations regarding market trends, ability to mitigate inventory buildup, ability to increase market share, growth strategies, capital resources, lot and land strategies, financial position, and expectations regarding returns on capital.

Tailwinds

  • Company's position to adapt and succeed in a rapidly changing environment
  • Expectations regarding trends in the markets, such as demand for single-family homes and levels of resale inventory
  • Ability to mitigate inventory buildup and manage the pace of sales and starts
  • Ability to increase market share
  • Capital resources and flexibility to capitalize on market opportunities

Headwinds

  • Changes in macroeconomic conditions, including increasing interest rates and inflation
  • General economic conditions, seasonality, cyclicality, and competition in the homebuilding industry
  • Shortages, delays, or increased costs of raw materials and increased demand for materials, or increases in other operating costs
  • A shortage of qualified labor
  • Inability to acquire land in current and new markets at anticipated prices or difficulty in obtaining land-use entitlements

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.7%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.9%

Avg return

30 days after

54%

34 / 63 earnings

Positive

+47.8%

Q3 2010

Best reaction

-26.5%

Q1 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+4.0%-3.5%-16.8%
Q3 2025+2.8%-1.6%+5.4%
Q1 2025+3.1%+1.9%+0.2%
Q4 2024+5.8%+2.4%-0.2%
Q3 2024-8.6%-7.1%-5.3%
Q2 2024-2.5%-7.4%+5.4%
Q1 2024+1.7%+4.2%+0.9%
Q4 2023-4.3%-9.4%+5.5%
Q3 2023+8.4%+17.3%+24.0%
Q2 2023-9.2%-6.8%-10.8%
Q1 2023+24.6%+36.3%+39.2%
Q4 2022+3.7%+9.7%+13.3%
Q3 2022-11.3%-14.0%+4.0%
Q2 2022+13.7%+8.2%-9.0%
Q1 2022+12.0%+6.7%+20.5%
Q4 2021+3.1%-1.8%-14.8%
Q3 2021-6.5%-2.6%+2.4%
Q2 2021-3.9%-0.9%-1.0%
Q1 2021-11.3%-6.4%-17.0%
Q4 2020+0.3%+8.0%+25.6%
Q3 2020+3.0%+13.7%+29.7%
Q2 2020+6.3%+3.2%+5.2%
Q1 2020+2.1%+3.8%+26.3%
Q4 2019-2.3%-9.6%-39.8%
Q3 2019+4.1%+13.5%+16.6%
Q2 2019+5.5%+4.5%+1.7%
Q1 2019+1.6%+2.6%-2.6%
Q4 2018-3.1%-2.8%+1.4%
Q3 2018-2.0%-7.2%-15.7%
Q2 2018+5.9%+11.2%+7.4%
Q1 2018+2.4%+5.7%+14.4%
Q4 2017-0.9%-3.8%+0.9%
Q3 2017-0.5%+2.8%+1.8%
Q2 2017-6.7%-11.1%-18.2%
Q1 2017+0.5%+6.4%+4.7%
Q4 2016+1.6%+4.9%+9.9%
Q3 2016+4.5%+10.3%+25.2%
Q2 2016+3.9%+3.3%+8.8%
Q1 2016-1.1%
Q4 2015+16.2%
Q3 2015-4.2%
Q2 2015+6.2%
Q1 2015+0.5%
Q4 2014+5.0%
Q3 2014+2.8%
Q2 2014+4.3%
Q1 2014-14.3%
Q4 2013-10.8%
Q3 2013+6.2%
Q2 2013-12.0%
Q1 2013-2.7%
Q4 2012-1.4%
Q3 2012-12.3%
Q2 2012-8.4%
Q1 2012-26.5%
Q1 2011-26.5%
Q4 2011+6.9%
Q3 2011+47.8%
Q3 2010+47.8%
Q2 2011-5.3%
Q4 2010-6.0%
Q2 2010-5.9%
Q1 2010-15.4%

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