NYSE$GRBK

Green Brick Partners Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Green Brick reported an outstanding quarter with record-high homebuilding gross margin and significant growth in new home orders and backlog.

Green Brick Partners reported strong Q3 2023 results, with a record-high homebuilding gross margin of 33.3% and diluted EPS of $1.56. New home orders increased by 95.0%, and backlog grew by 10.4% year-over-year. The company's net debt to total capital ratio stood at 9.0%.

  • Homebuilding gross margin reached a record high of 33.3%, driven by a normalized supply chain and lower construction costs.
  • New home orders surged by 95.0% year-over-year, indicating strong demand in Green Brick's markets.
  • Backlog increased by 10.4% year-over-year, reflecting continued growth and future revenue potential.
  • Net debt to total capital ratio remained low at 9.0%, showcasing a strong balance sheet.

Headline financials

Total Revenue

$419M

Previous: $408M+2.7%
EPS (adj)

$1.56

Previous: $1.57-0.6%
New Homes Delivered

754

Previous: 650+16.0%
Avg Sales Price Delivered

$552K

Previous: $607K-9.2%
Homebuilding Gross Margin

33.3%

No prior period
Cancellation Rate

6.1%

No prior period
Homebuilding Debt-to-Capital

21.8%

No prior period
Net Debt-to-Capital

9.0%

No prior period
Capital Expenditures

-$4.79M

Previous: -$1.35M-255.0%
Free Cash Flow

$67.4M

Previous: $72.2M-6.7%
Net Income

$72.2M

Previous: $73.5M-1.9%
Operating Income

$92.2M

Previous: $90.5M+1.9%
Gross Profit

$139M

Previous: $133M+4.3%
Cash & Equivalents

$223M

Previous: $48.2M+363.6%
Total Assets

$1.87B

Previous: $1.66B+12.6%

Revenue & EPS history

Green Brick · Revenue · Quarterly

$419M

Q3 2023+2.7%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Green Brick · $419M total across 2 segments · Q3 2023

  • Residential Units
    $416M+4.8%
  • Land and Lots
    $3.06M-72.7%

Forward guidance

The company focuses on managing capital efficiently and sourcing land investments under disciplined underwriting, expecting continued growth in high-performing markets.

Tailwinds

  • Anticipates continuing to start homes at a robust pace to meet demand.
  • Focus remains on managing capital efficiently.
  • Continue sourcing and closing land investments under disciplined underwriting.
  • Expects land investments to be accretive for growth.
  • Balance sheet is stronger than ever.

Headwinds

  • Increasing interest rate and inflation that could adversely impact demand for new homes
  • 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
  • An 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 Q3 2023

Historical avgQ3 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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